Flight Safety Information March 17, 2020 - No. 055 In This Issue Incident: Commut E145 at Quebec City on Mar 12th 2020, fumes in cockpit Incident: Lufthansa A20N at Palma Mallorca on Mar 5th 2020, fumes in cockpit Incident: Sunstate DH8D at Port Moresby on Mar 16th 2020, smoke in cockpit Airbus A320-232 -...precautionary diversion (Australia) First Wing Charter & Management joins the Air Charter Safety Foundation Aircraft retirements accelerate, but this is not another post-9/11 GE Aviation Integrates C-FOQA with Vector SMS FAA sends some workers home as coronavirus spreads among federal workers at airports Philippine Airlines to suspend flights as coronavirus spreads U.S. airlines seek nearly $60B bailout Fourth MC-21 flown to Moscow test centre As coronavirus decimates demand for jets, Boeing may slash production, cut jobs China's new Long March 7A rocket fails in debut launch: reports Incident: Commut E145 at Quebec City on Mar 12th 2020, fumes in cockpit A CommutAir Embraer ERJ-145 on behalf of United, registration N16183 performing flight UA-4923 from Quebec City,QC (Canada) to Newark,NJ (USA) with 41 passengers and 3 crew, was climbing throuh 14,000 feet out of Quebec City when the crew detected fumes in the cockpit and donned their oxygen masks. They crew stopped the climb at about FL210 and returned to Quebec City for a safe landing on runway 06 about 26 minutes after departure. The Canadian TSB reported an examination of the aircraft revealed an oil leak on the #1 engine (Ae3007, left hand). The aircraft was ferried to Albany,NY (USA) for further inspections. The aircraft remained on the ground in Quebec City for 11 hours, then ferried to Albany. The aircraft returned to service on Mar 15th 2020. https://flightaware.com/live/flight/UCA4986/history/20200312/1055Z/CYQB/KEWR http://avherald.com/h?article=4d49245e&opt=0 Back to Top Incident: Lufthansa A20N at Palma Mallorca on Mar 5th 2020, fumes in cockpit A Lufthansa Airbus A320-200N, registration D-AINH performing flight LH-1159 from Palma Mallorca,SP (Spain) to Frankfurt/Main (Germany), was climbing out of Palma's runway 24R when the crew stopped the climb at FL140 reporting fumes in the cockpit. The aircraft returned to Palma Mallorca for a safe landing on runway 24R about 23 minutes after departure. A listener on frequency reported the crew advised they had fumes in the cockpit, after landing describing it as a "smell event". There were no injuries, however, medical assistance was requested as a precaution in case the status changed. The occurrence aircraft remained on the ground for about 27 hours, then positioned to Frankfurt. The aircraft remained on the ground in Frankfurt for another 19 hours before returning to service. http://avherald.com/h?article=4d48fd93&opt=0 Back to Top Incident: Sunstate DH8D at Port Moresby on Mar 16th 2020, smoke in cockpit A Sunstate Airlines de Havilland Dash 8-400 on behalf of Qantas, registration VH-QOE performing flight QF-192 from Port Moresby (Papua New Guinea) to Cairns,QL (Australia) with 8 passengers and 4 crew, was climbing out of Port Moresby's runway 32 when the crew stopped the climb at about FL190 reporting smoke in the cockpit and returned the aircraft to Port Moresby for a safe landing on runway 32 about 24 minutes after departure. The passengers were rebooked onto later flights via Brisbane and departed Port Moresby with a delay of about 2 hours and reached Australia before a requirement for two weeks quarantaine as result of Corona Virus prevention came into effect. The aircraft is still on the ground about 22 hours later. http://avherald.com/h?article=4d49279f&opt=0 Back to Top Back to Top Airbus A320-232 - precautionary diversion (Australia) Date: 17-MAR-2020 Time: 11:55 LT Type: Airbus A320-232 Owner/operator: Jetstar Airways Registration: VH-VGT C/n / msn: 4178 Fatalities: Fatalities: 0 / Occupants: Other fatalities: 0 Aircraft damage: Minor Location: over Wilcannia, near Broken Hill, NSW' - Australia Phase: En route Nature: Domestic Scheduled Passenger Departure airport: Sydney-Kingsford Smith International Airport, NSW (SYD/YSSY) Destination airport: Ayers Rock-Connellan Airport, NT (AYQ/YAYE) Narrative: A Jetstar Airways Airbus A320 operating as flight JST660 from Sydney Kingsford Smith Airport (SYD/YSSY), New South Wales, to Ayers Rock Airport (AYQ/YAYE), Northern Territory, had an issue when an indicator light suggested there was an "incident" in the cargo hold and completed a successful precautionary diversion at 12:19 LT without injury to Mildura Airport (MQL/YMIA), Victoria. https://aviation-safety.net/wikibase/234084 Back to Top First Wing Charter & Management joins the Air Charter Safety Foundation First Wing Charter & Management, which provides premier private air travel, charter, aircraft management, sales, maintenance, flight training and airport operation and management, is the latest aviation company to join the Air Charter Safety Foundation. The multifaceted firm joins Air Charter Safety Foundation's (ACSF) roster of nearly 230 member companies whose joint mission is to enable the highest levels of safety in personal, charter and business aviation. "We're very proud of our history of safe flying," said Andrew Yergler, vice president and general manager at First Wing Management. "Our pilots who are airline transport-rated, are some of the most experienced in the industry. Since our founding in 1995, First Wing has flown accident- and violation-free, and we continually meet and exceed industry safety standards." ACSF president Bryan Burns said, "We're gratified that First Wing Charter & Management has the foresight to see how vital our organization is to the cause of aviation safety, and we're pleased that they'll be adding their voice and efforts to it." https://www.businessairportinternational.com/news/first-wing-charter-management-joins-the-air-charter-safety-foundation.html Back to Top Aircraft retirements accelerate, but this is not another post-9/11 The uncertainty of coronavirus and its impact on aviation might appear worse as airlines quickly retire aircraft fleets. There may be memories of the post 9/11 market when airlines sent aircraft to the California and Arizona deserts. Initial retirements are American Airlines' Boeing 757s and 767s, KLM's Boeing 747s, Virgin Atlantic's Airbus A340-600s, and likely Singapore Airlines' Boeing 777-200ERs. These retirements - and any more to come - are occurring after the aviation industry reached a 20-year low of aircraft in long-term storage (in terms of share of total fleet). Over the last two decades, airlines maximized growth and used older, cheaper assets to fly marginal routes. Aircraft had never been busier even before the Boeing 737 MAX grounding put pressure on the spare fleet. There were approximately 1,400 aircraft in long-term storage at the end of 2017, according to the latest Airbus figures available. That represented about 7% of total commercial aircraft. Boeing last year said the share had come down even further to a 20-year low. Unlike past crises, aviation entered the coronavirus downturn with strength. Parked aircraft increased by about 100 in 2003 after SARS and the Iraq War, but came down in 2004. That is partially reflective of parked aircraft being dismantled, but that is also part of the industry's lifecycle. Before 9/11, the number of stored aircraft increased by 150 between 1998-2000. That grew the share of parked aircraft from 5% to 7%. There were 800 aircraft stored at the end of 2000 but 1,500 at the end of 2001 (12% of the commercial fleet). The post-9/11 environment coincided with changed consumer mindsets and volatile oil. Some aircraft retirements after 9/11 were unplanned, with aircraft sent to the desert despite recently being repainted or undergoing a heavy maintenance check, usually indicating they will remain in service for at least the medium-term. Even with recent OEM manufacturing problems (737 MAX, A321neo, PW-powered A321neos) and decreasing aircraft production rates, more aircraft are being built now than in 2001. And unlike the en masse fleet retirements after 9/11, retirements in this downturn so far mostly involve the few aircraft left of already dwindling fleets. An exception is American's 757 and 767 fleet. Retirements are now less of a fundamental shift and more of an acceleration KLM's 747s could leave by the end of March 2020. This was previously pegged for 2021 but was creeping forwards: last month at its annual results, Air France-KLM mentioned 747 retirement as a 2020 priority. Similarly, Singapore Airlines planned to operate 777-200ER flights until May 2020, but its schedules show no -200ER flights after April. SIA has not yet confirmed retirement. SIA in 2012 planned a $78 million retrofit for 10 -200ERs used on thinner long-haul markets, since replaced with Airbus A350s. The -200ERs serve regional destinations. American Airlines is accelerating retirements slightly faster. It planned to retire 767s, which mostly fly to smaller European markets, by the end of 2021, but they will be grounded in May 2020, American says. The 757s will be retired no later than after the 2021 summer. American originally intended to have 24 757s at the end of 2021. Rotation Even though American planned to retire the 767s by the end of 2021, in 2014 it started installing new business seats as part of fleet-wide improvements. The seats were lie-flat but did not have embedded IFE. American later installed Panasonic satellite connectivity on the 767s. Virgin Atlantic's last three A340-600s were sent to storage in March. The aircraft were retained to cover for 787s grounded by Rolls-Royce Trent 1000 engines, whose repair time has been lengthened and become unpredictable. Virgin's schedules initially withdrew the A340 at end of last October, then December, and then early January. Delta earlier this month flagged it could accelerate retirement of some older MD-88s, MD-90s, 757s and 767s, according to the Points Guy. Delta is sending widebody aircraft to the desert, but only for temporary storage. Health outbreaks have not typically produced structural change. Coronavirus may buck this trend. Time will tell. https://runwaygirlnetwork.com/2020/03/16/aircraft-retirements-accelerate-but-this-is-not-another-post-9-11/ Back to Top GE Aviation Integrates C-FOQA with Vector SMS GE Aviation has integrated its C-FOQA (Corporate Flight Operations Quality Assurance) program with Polaris Aero's safety management system, Vector SMS. GE called the collaboration the first of its kind, enabling flight data to be automatically forwarded to Vector SMS through GE Aviation's application programming interface. Launched in partnership with Flight Safety Foundation in 2005, GE's C-FOQA program enables operators to analyze and routinely review recorded flight data to better identify and eliminate potential hazards. The program uses GE analytics software that takes into account meteorological information, navigation data, and terrain mapping to identify safety events and measurements. Vector SMS, an app on Polaris Aero's VOCUS Safety Intelligence platform, meanwhile, was released in 2013 to provide a simplified approach to report, analyze, audit, and trend safety concerns, and facilitate engagement throughout an organization. C-FOQA and Vector SMS combine for more than 400 Part 91 and 135 customers, GE Aviation said. "This new capability streamlines the safety process and makes it easy for users to identify the underlying causes of safety events," added Chris Connor, co-founder and CEO of Polaris Aero. "By understanding the C-FOQA events and being able to link them to root causes in Vector SMS, flight departments can go from safety compliant to best-in-class." The integration saves time and reduces workload, enhancing safety in an organization, Ben Ivy, senior product manager for GE Aviation, further said. https://www.ainonline.com/aviation-news/business-aviation/2020-03-16/ge-aviation-integrates-c-foqa-vector-sms Back to Top FAA sends some workers home as coronavirus spreads among federal workers at airports Cases of the novel coronavirus are growing among workers at government agencies that oversee safety at airports and airlines, with the Federal Aviation Administration sending workers in a Chicago-area office home after an employee fell ill and the Transportation Security Administration disclosing a new case at the Atlanta airport. These workers are at the agencies critical to keeping planes in the air and in many cases cannot do their jobs by telework. Officers with U.S. Customs and Border Protection, for example, have been on the front line in responding to the spread of the virus, charged with implementing new screening measures for Americans returning from Europe. Over the weekend - the first since new travel restrictions affecting 28 European countries went into effect - it was a chaotic scene at some airports, with CBP officers and travelers packed together for what in many cases was an hours-long process. Unions that represent the employees have accused managers of doing too little to protect their staffs, who interact closely with the public. "The threats they face were made clear this weekend as CBP employees and thousands of travelers were needlessly and dangerously crowded together creating a situation ripe for transmission of the coronavirus," said Tony Reardon, president of the National Treasury Employees Union, which represents CBP officers. "Processing travelers at 328 ports of entry is not a telework-eligible job, and more should be done to protect them," he said. Airline industry seeking more than $50 billion in government aid amid coronavirus crisis The virus' spread has shaken the aviation system as nations across the globe take steps to limit travel and Americans cancel work trips and vacation plans. The main airline trade group said Monday that the industry might need more than $50 billion in government aid to weather the outbreak. But after a weekend when major airports were engulfed in chaos, the acting leader of the CBP struck a cheerful tone in a tweet Monday. Acting Commissioner Mark Morgan shared photos of officers helping passengers, wiping down work surfaces and standing alongside staff from the Centers for Disease Control and Prevention. "Very proud of our CBP officers who quickly adjusted course this weekend, reduced wait times & never lost sight of their mission-keeping America safe," Morgan wrote on Twitter. "I also appreciate our stakeholders' patience & cooperation. The health & safety of the public & our workforce is our top priority." CBP did not respond to questions about the concerns raised by the union, nor did the Department of Homeland Security. The FAA issued an internal emergency alert Monday, saying an employee in the office responsible for overseeing United Express and other airlines at O'Hare International Airport tested positive for the coronavirus. The employee works at the FAA's Chicago Certificate Management Office. Employees in that office perform inspections on Air Wisconsin Airlines, which operates as United Express, and also has crews based at Washington Dulles International Airport and in Milwaukee and Columbia, S.C. The office, in Des Plaines, Ill., also oversees more than 50 foreign airlines, including those flying from O'Hare, Chicago Midway International, Chicago Rockford International, and airports in Milwaukee and South Bend, and Gary, Ind., according to the FAA. United Airlines and Air Wisconsin Airlines did not immediately respond to questions about whether their employees may have had contact with the infected individual and if they are being quarantined or monitored. As a result of the positive test, that and another office in the same building near O'Hare will be staffed with teleworking employees, the alert said. The second office, the flight standards district office, houses aviation safety inspectors, maintenance inspectors, managers and technicians who make sure planes and airline operations are safe. The FAA said in a statement that the agency is "working with the appropriate authorities to identify and locate people who might have come into contact with the employee in recent days. We provided co-workers with CDC guidance to self-monitor for signs of illness." The employee, an aviation safety inspector, was last in the office March 4, the agency said. It said the flight standards office "is open, but all employees are teleworking." It said the certificate management office also remains open, with employees working from home. The FAA said it has also coordinated with airlines about tracing contacts with the FAA inspector. It added that two other agency employees have tested positive for the virus, including an employee of the air traffic control program management office at headquarters in Washington and another employee who works for the Office of Finance and Management in a "full-time telework capacity" in the agency's eastern region. The TSA has created a website to disclose when its officers get sick, listing seven officers. The site provides basic information on when the officers last worked and what job they perform. The Atlanta officer's last shift was during the day on March 7. The airport was ranked the world's busiest last year. In a statement, the TSA said the officer was at home and receiving medical treatment. The agency said employees who interacted with the sick officer have been alerted and that it was working with the local health department "to monitor the situation as well as the health and safety of our employees and the traveling public." The agency has also said it is stepping up efforts to clean checkpoints and is allowing passengers to request that officers put on a fresh pair of protective gloves during screenings. TSA is allowing passengers to carry 12 ounce bottles of hand sanitizer through security, relaxing its normal rules on liquids. But because of ongoing problems in getting people tested for the virus, there could be gaps in the disclosures. TSA officer Brian Shoup said he started feeling ill on Feb. 29. The first health-care provider he saw prescribed steroids and antibiotics, and he went back to work screening passengers before he started feeling worse and paid a visit to the emergency room. "They went into panic mode," Shoup said. "They did a really good job of taking care of me and protecting everybody in there. But the problem is, this is the underlying problem period, in Tennessee because of the lack of tests, they wouldn't test me unless I was admitted." The hospital put Shoup under quarantine, and his wife - also a TSA officer - was eventually told to stay home too. But without a test result, Shoup won't know for sure whether his illness was caused by the coronavirus and members of the public he came into contact with can't be alerted to take extra precautions. Because of how officers deal intimately with members of the public, Shoup said he thought they should be prioritized for testing: "Why are we not afforded these tests before sports figures or people of influence?" Abrupt new coronavirus checks cause agonizing delays at U.S. airports The new screenings on arriving passengers were part of restrictions President Trump announced last week in a bid to slow the spread of the novel coronavirus from Europe, which has emerged as a new global hotspot for the disease. But travelers arriving over the weekend expressed surprise at how cursory the screening was for returning Americans. The restrictions on travelers from 26 European countries went into effect at midnight Friday, with the measure expanding to Britain and Ireland on Monday. Americans can still return home from those countries but are being funneled to 13 airports set up to screen them. Travelers arriving at Dulles International Airport Sunday, one of the designated airports, reported short waits, but only limited screening. One passenger showed a reporter a photocopied form asking for basic information on their health and where they had been. Another shared guidance from the CDC about staying home and keeping watch for symptoms of covid-19. D.C. resident Nik Kowsar, 50, said he was surprised that the only question he encountered while passing relatively quickly through customs at Dulles after flying in from London was: "Do you have any health conditions to declare?" "I thought they were going to be screening everyone and checking temperatures," Kowsar said. Kowsar said he had been scheduled to return home Tuesday, but moved up his flight Saturday night after seeing photos online of passengers stuck in crowded, hours-long delays at Chicago's O'Hare airport Saturday as they awaited screening. "The flight wasn't that full last night, but there weren't many empty seats, so many other people made that decision as well," Kowsar said. A CBP spokesman said the agency was using "a combination of traveler history records, officer questioning and observation, and self-declarations to identify travelers requiring enhanced health screening." Steve and Audrey Boyle, of Finksburg, Md. in Carroll County, said someone checked their temperature with a probe placed near their forehead after they landed at Dulles. They had arrived on a British Airways flight from London, but had filled out paperwork on the airplane saying they had been to Greece. Their cruise also had stopped in Egypt, Turkey, and Cypress, though they were not allowed to disembark in Israel. Neither of them had a fever, and both said the health screening seemed sufficient. "I think all they can do is check temperatures and notice if anyone is coughing or sneezing," said Steve Boyle, 60, who works in construction. "What else are they going to do?" added his wife, Audrey, 56. She works part-time as a home health aide and said she planned to stay away from her elderly client for two weeks and would limit her trips outside her home, but would probably go to the grocery store. "I don't see myself staying in my house for 14 days," Audrey Boyle said, "but I can see myself being very careful for 14 days." When Trump announced the restrictions last week, public health experts questioned their utility since the disease was already widespread inside the United States. Some passengers pointed out apparent holes in the system, including that they had eight or more hours on board a plane with travelers who had been in some of the worst affected countries, even if they themselves had not. In a Twitter post late Sunday, Morgan said CBP had increased staffing to deal with the wait times. Reardon, the union president, said the agency needed to share information from the CDC if it learned that a passenger had become sick after being screened by a CBP officer. He also called for officers to be allowed to use administrative leave if they need to self-quarantine, so as to not take a financial hit, and to be tested at the agency's expense. "By definition, their job may put them in harm's way because they come in contact with international travelers around the clock," Reardon said. https://www.washingtonpost.com/local/trafficandcommuting/faa-sends-some-workers-home-as-coronavirus-spreads-among-federal-workers-at-airports/2020/03/16/aab9f95e-67b8-11ea-9923-57073adce27c_story.html Back to Top Philippine Airlines to suspend flights as coronavirus spreads MANILA (Reuters) - Philippine Airlines said on Tuesday it will halt its international flights starting March 20 as the country's main island is placed under enhanced quarantine measures. The flag carrier started canceling all domestic flights on Tuesday after the government imposed a month-long quarantine in the capital and nearby provinces. Philippine Airlines said flights will resume flights on April 13. https://www.reuters.com/article/us-health-coronavirus-philippine-airline/philippine-airlines-to-suspend-flights-as-coronavirus-spreads-idUSKBN2141CN Back to Top U.S. airlines seek nearly $60B bailout They also asked other parts of the industry for help - specifically, airports. U.S. airlines are asking for nearly $60 billion in direct assistance and loan guarantees, vastly dwarfing the $15 billion made available after the attacks of Sept. 11, 2001, as airlines worldwide continue to plea for government help from the effects of the coronavirus outbreak. On Monday, Airlines for America, the trade group for the U.S. airline industry, came forward with specific requests - including $29 billion in direct assistance. In addition, A4A asked for $29 billion in loans or loan guarantees, a rebate for some federal excise taxes collected from the beginning of the year through the end of March and a repeal of certain excise taxes through the end of 2021. A source with knowledge of negotiations said airports, themselves facing billions of dollars in losses, are expected to request $10 billion in federal assistance. Also Monday, some 60 of the world's air carriers, representing more than half of airline capacity globally, made an unprecedented and urgent plea for government assistance. Their plea, made through the three biggest international airline alliances, which allow partners to share booking arrangements, urged "governments worldwide to prepare for the broad economic effects from actions taken by states to contain the spread of COVID-19, and to evaluate all possible means to assist the airline industry during this unprecedented period." They echoed previous calls to suspend "use-it-or-lose-it" rules that set a minimum level of service at capacity-constrained airports, or else airlines lose those "slots." The FAA has already done so at several U.S. airports through May, but the alliances hope regulators will consider extending suspensions through the summer. They also asked other parts of the industry for help - specifically, they want airports to reconsider their landing charges and fees. But airports are experiencing their own financial cliff, with Airports Council International-North America estimating losses at $8.7 billion. Last week, Bloomberg reported that White House officials were talking about letting airlines keep ticket taxes or fees that are used to fund airport upgrades, among other things. But airports are sure to fight hard against such a move, and it may not have enough support in Congress. On Monday, the Air Line Pilots Association, the major union for pilots, wrote to President Donald Trump, House Speaker Nancy Pelosi and Senate Majority Leader Mitch McConnell, saying the group is "unequivocal that any economic relief package must contain strong labor protections." And Sara Nelson, the president of the Association of Flight Attendants-CWA, on Twitter called for direct payroll subsidies to flight attendants, pilots, ground workers and caterers, among others. "Absent payroll subsidies[,] mass layoffs and furloughs are inevitable," Nelson wrote. "This will have long-term consequences because nearly all aviation-related workers have to pass background checks and security and safety training requirements." Separately, the consultancy the Centre for Aviation has argued that "most airlines in the world" could be bankrupt in less than three months. "Coordinated government and industry action is needed - now - if catastrophe is to be avoided," CAPA said, adding that "many airlines have probably already been driven into technical bankruptcy, or are at least substantially in breach of debt covenants." Amid the crisis, "the government response has been fragmented - and is being resolved along national lines, with limited consultation," CAPA said. "As things stand, the likely tepid response to the airline crisis will equally be fragmented and nationally based. It will consist mostly of bailing out selected national airlines. If that is the default position, emerging from the crisis will be like entering a brutal battlefield, littered with casualties." The House unanimously passed a revised coronavirus emergency bill, sending it to the Senate to take up as the coronavirus continues to spread. CAPA added that the major U.S. airlines, specifically, "(supported by unions) will have the lobbying power to access government subsidies; they are already working hard to achieve that." But Judson Rollins, an industry consultant, wrote for the blog Leeham News and Analysis that U.S. airlines are "not at imminent risk of bankruptcy," even if domestic travel restrictions are put in place. "US airlines have plenty of time for demand to recover - or the US government to step in with emergency loans or grants," such as what occurred after the Sept. 11, 2001 attacks," Rollins wrote. "Every US carrier can survive at least three months - and longer with capacity, staff cuts." https://www.politico.com/news/2020/03/16/airlines-ask-for-government-help-coronavirus-132120 Back to Top Fourth MC-21 flown to Moscow test centre Russian airframer Irkut has flown its fourth flight-test MC-21-300 to Moscow to participate in the certification campaign for the twinjet. The aircraft, fitted with Pratt & Whitney PW1400G engines, was ferried with a crew of two pilots to the Gromov institute at Zhukhovsky airfield. It has been fitted with a passenger cabin consistent with an all-economy layout of 211 seats, says Irkut, although only 172 are currently installed because measurement equipment and engineer stations have been situated in the aft section. The other 39 seats will be put in place ahead of certification flights, replacing the test equipment. "With the fully-fitted cabin tests will be carried out - in particular, the emergency evacuation," says the manufacturer. Irkut's third flight-test aircraft, which was presented at the Moscow MAKS air show last year, had a two-class configuration with 163 seats. Production work is continuing on another test aircraft, the first to be fitted with the alternative Aviadvigatel PD-14 powerplant. https://www.flightglobal.com/air-transport/fourth-mc-21-flown-to-moscow-test-centre/137330.article Back to Top As coronavirus decimates demand for jets, Boeing may slash production, cut jobs The dramatic worldwide collapse in air travel accelerated this weekend as the U.S. expanded its ban on passengers from Europe and other governments enacted their own barriers to slow the spread of the novel coronavirus. Airline CEOs are comparing the drop in traffic to the aftermath of the 9/11 terror attacks in 2001 - when Boeing reduced production from 527 jets in 2001 to just 281 jets two years later. In less than three years following the attacks, Boeing cut 27,000 jobs in Washington state. Like then, Chicago-based Boeing now faces a stark near-term decision on whether it must slash jet production. That could again spell substantial local layoffs, which until now - even with its 737 Max production already halted - Boeing has avoided. Boeing is the largest private employer in Washington state, with about 72,000 employees here. Most of those work on Commercial Airplanes and all those jobs are at risk of at least temporary suspension. Any cuts to that workforce would reverberate sharply throughout the local economy, and its impacts likewise would be felt on Boeing's global supply chain. With the Renton narrow-body jet plant already shut down since January because of the extended grounding of the 737 Max, any cut to or suspension of production in Everett too would mean Boeing's parts plants in Auburn and Frederickson have virtually no assembly lines to feed, and so they would also likely have to cut or stop work. The outbreak of coronavirus within Boeing employee ranks - six confirmed cases at the Everett plant and one at the local headquarters in Longacres, with two possible cases from Auburn - may supply another reason for a full-scale temporary halt to production. A top Boeing executive - speaking on condition of anonymity because of the sensitivity of the situation - said Sunday that contingency planning at the highest levels of the company is still focused on avoiding layoffs so as to enable the business to recover quickly once the virus emergency passes. He said Boeing's leadership is unlikely to announce a firm plan until later in the week, but that for now "the conversation here is leaning even more toward doing everything we can to protect employees." "We'll need them to be back in the saddle quickly when this thing passes over," he said, adding that "nothing is firm at this time." Airline meltdown Underlying Boeing's dilemma is the wrenching drama playing out among U.S. and global airlines. On Friday, Delta Air Lines said it would cut capacity by 40% in the next few months, park up to 300 aircraft and defer new jet deliveries. Delta's CEO Ed Bastian said it was the largest capacity reduction in Delta's history, including after the 9/11 attacks. On Saturday, American Airlines announced it will cut 75% of its international flights through May 6 and cut domestic flights by 30% by May. American will ground 135 out of its fleet of 149 widebody jets. The impact from coronavirus abroad is even worse: To ensure "the survival of British Airways," that airline's CEO Alex Cruz told employees Friday that jobs will be cut "perhaps for a short period, perhaps longer-term." Low-cost carrier Norwegian, a big 737 Max and 787 customer, has laid off half its 11,000 employees, and the CEO told the Norwegian government it has "weeks not months" to avert bankruptcy. According to Swiss airline intelligence provider ch-aviation, Korean Air has grounded about 100 of its 145 passenger jets and airline President Woo Kee-hong told employees in an internal memo that "If the situation continues for a longer period, we may reach the threshold where we cannot guarantee the company's survival." On Sunday, SAS of Scandinavia temporarily laid off 90% of all employees and suspended almost all flights. And only passengers willing to be quarantined for two weeks upon arrival can fly Air New Zealand or Qantas of Australia into those two countries. U.S. airlines and the broader aerospace players including Boeing and its suppliers are in urgent talks with the Trump administration, asking for public financial support to keep the industry alive and protect an estimated total of about 2 million direct and indirect aviation-related jobs in the U.S. Not only are the airlines facing a sharp, immediate plummet in demand, their finances will be wrecked for the near future. "Airlines will be focused on survival, not taking new jets," said Teal Group aviation analyst Richard Aboulafia in an interview Sunday. For Boeing, the urgent question is whether any airlines want or need the big jets it's building right now. Because of the Max crisis, the assembly lines for that narrow-body jet in Renton are silent. Now production of the larger widebody jets in Everett and in North Charleston, South Carolina, may have to follow. In the first two months of the year, the impact of coronavirus already began to appear as Boeing delivered only 30 airplanes total from those two final assembly sites, 25% below the nominal widebody jet production rates. In Everett, a new 787 Dreamliner has taken its first flights and is ready to be delivered to American. Another 787 is ready for delivery to the flag carrier of Israel, El Al, which as of Sunday has suspended almost all its flights. While it may be too late to defer those two planes, the airlines have nowhere they can fly them. For many of the planes coming behind them and now under assembly, deferred delivery seems certain. Among the aircraft under assembly in the Everett factory and almost ready to roll out are another 787 for American and a 777 passenger jet for United. In North Charleston, there are two more 787-10s under assembly for United. Economic impact worse than 9/11? When novel coronavirus first appeared, the aviation world compared it to the SARS outbreak in 2003 and hoped for a similar outcome: a three-month slump in demand and a rapid recovery afterward. But as Bastian noted, this is a reckoning more comparable to the hit from 9/11. And since no one knows if this slump will last three months, six months or a year, when Southwest CEO Gary Kelly last week made the comparison to 9/11, he told employees that the economic slump this time "may be worse." Adam Pilarski, veteran analyst with consulting firm Avitas, said Boeing's position today may indeed be tougher because in the past year the Max crisis has been straining its financial resources. Like the airlines, Pilarksi said Boeing "will have to think survival." After 9/11, with that mindset, Boeing reacted immediately to a similarly rapid falloff in demand. Exactly one week after the terrorist attacks that used Boeing jets to kill almost 3,000 Americans, the Boeing Commercial Airplanes division announced drastic production cuts and plans to lay off between 20,000 and 30,000 workers by the end of 2002. Then-CEO Phil Condit explained these "tough business decisions" as necessary to "enhance the company's ability to maintain its solid financial position, strong liquidity and premier debt ratings." "These are critical factors in times of business uncertainty and financial stress," Condit said. In an interview in 2016, the CEO of Commercial Airplanes at the time of the attacks, Alan Mulally, recalled the decision he had to make as "devastating." "The effect on our business was dramatic," Mulally recalled. "You have to move decisively to match your production resources with the demand. If not, you start burning through so much cash you put the company at risk." That's the threat Boeing again faces now, compounded by the lack of revenue from the 737 Max and the money it must spend to return that jet to service. Boeing has the experience of 9/11 and of SARS and other lesser external shocks behind it. So its leadership can be reasonably confident that the long-term trend of growing global air travel will inevitably resume eventually. The problem is how to survive the short-term impact, without knowing exactly how short-term it may be. When Boeing halted production of the Max in January, it made the decision not to lay workers off because it anticipated restarting the assembly line around April and getting clearance to fly the Max by the summer. Management said it wants to retain the skilled workforce during the intervening months to be able to resume production as planned. As the coronavirus' economic threat escalates daily around the world, company leaders have to act soon to either slow or stop production. Their decision will likely depend on the response from the government to industry's appeals. The question is: Will Boeing be able to maintain jobs to preserve talent for the future recovery? Or will management revert to the thinking of Condit and Mulally in 2001? Aboulafia said that while slowing or suspending production seems inevitable, "laying off people is probably the wrong call." Still, he's worried that Boeing's "crack cocaine addiction to shareholder returns" going back almost two decades will produce a different answer that puts protecting the stock price and the current cash position ahead of the workforce and the future. Pilarski of Avitas suggested Boeing could negotiate a temporary suspension that at least lets employees retain their medical and pension benefits. The top Boeing executive said that "as I stand here today, mass layoffs is an unlikely outcome." "The situation is incredibly fluid," he then cautioned. "There are too many unknowns and no guaranteed outcome." https://www.chicagotribune.com/business/ct-biz-boeing-coronavirus-cuts-20200316-vyecjtweiffwvg5d7ny3upilqu-story.html Back to Top Super Rich Stranded as Private Jet Operators Say No to Travel • Inquiries for flights on private jets up ninefold: JetSetGo • Entry restrictions by countries led to sharp drop in travel We're tracking the latest on the coronavirus outbreak and the global response. Sign up here for our daily newsletter on what you need to know. Private jet operators are turning away wealthy clients as coronavirus-related travel bans restrict their ability to operate, despite a surge in requests from people willing to shell out as much as $150,000 to secure a spot on their planes. Inquiries for international flights on private jets have shot up ninefold, said Kanika Tekriwal, founder of New Delhi-based JetSetGo, as individuals with vast financial means try to escape virus hot spots. One of her clients, an Indian tycoon, tried to book a jet to fly with his family to New Delhi from London last weekend, but he remains stranded in the U.K. after a sudden travel suspension in a stopover country came in just half an hour before they were due to depart. India then announced a ban on flights from Europe and the U.K. on Monday, potentially leaving the tycoon stranded in London indefinitely. The India ban comes into effect Wednesday. "Rules are changing every half an hour," Tekriwal said in an interview Monday, declining to identify the tycoon because of client confidentiality. "No one knows who's changing what, some countries are suddenly not allowing pilots of some countries, some countries are not allowing aircraft of some countries." India extended its ban to countries including Malaysia and the Philippines on Tuesday, as confirmed coronavirus cases in the country rose to 125. The pandemic, which has killed more than 7,000 people and infected about 174,000, has driven aviation into an unprecedented crisis that, according to Sydney-based CAPA Centre for Aviation, could push most of the world's airlines into bankruptcy by the end of May as governments hastily impose entry and quarantine rules. The private jet industry isn't immune to those restrictions, even as inquiries surge about bookings, including from Americans in Europe. "There is a new directive or advisory coming out every day," said Rajan Mehra, who heads business aviation company Club One Air. "Tourism is practically frozen for the time being and corporates are not traveling at all unless they have to." JetSetGo's Tekriwal, who oversees a fleet of 28 private aircraft, said the surge in inquiries is essentially for one-time flights back home so it doesn't reflect healthy demand. Overall, 87% of scheduled bookings with her company have been canceled, she said. Mehra's company, which operates 10 planes, has seen travel decline as much as 70%. "We are extremely worried as to what the future holds, how we're going to pay salaries," Tekriwal said. "It's a ripple effect. If industries and corporates don't do well, where will they get money to pay for us? We're considered a luxury, a high-cost industry, so we get hit first." https://www.bloomberg.com/news/articles/2020-03-17/super-rich-stranded-as-private-jet-operators-say-no-to-travel Back to Top China's new Long March 7A rocket fails in debut launch: reports The mission aimed to loft a classified satellite to geosynchronous transfer orbit. The first flight of China's new Long March 7A rocket apparently didn't go well. The next-gen booster failed today (March 16) on its debut mission for the China National Space Administration, which aimed to loft a classified satellite to geosynchronous transfer orbit (GTO), according to SpaceNews, which cited a Chinese-language report from a state news agency. The liftoff took place at 10:34 a.m. EDT (1534 GMT) from Wenchang Satellite Launch Center on China's Hainan Island, SpaceNews reported. The 7A is a modified, three-stage version of China's two-stage Long March 7 rocket, which has two launches under its belt to date, both of them successful. The Long March 7A "could become China's main rocket for communications satellite missions," Andrew Jones wrote in the SpaceNews story today. "The modularized, cryogenic rocket could have benefits in terms of cost, but also in reducing threat to life and property," he added. "The older, hypergolic Long March 3B is China's current workhorse for launches to GTO. The 3B launches from deep inland at Xichang, Sichuan province, resulting in spent stages frequently falling on inhabited areas. The Long March 7A launches from the coastal Wenchang spaceport, meaning its flightpath is over the sea." China may be flying through the coronavirus outbreak, but rockets have been grounded elsewhere. For example, Europe's chief spaceport, the Guiana Space Center on the northeastern coast of South America, has suspended launch campaigns until further notice, European officials announced today. https://www.space.com/china-long-march-7a-rocket-launch-failure.html Curt Lewis