Flight Safety Information - March 21, 2024 No. 059 In This Issue : Incident: Southwest B738 at San Jose Cabo on Mar 18th 2024, engine failure : Incident: Delta B739 at Aruba on Mar 19th 2024, engine problem : Aircraft Cabin Air International Conference - 17 & 18 September - London : Incident: American A319 at Boston on Mar 20th 2024, engine compressor stall : Cessna 700 Citation Longitude - APU Fire (Texas) : FAA Proposes $175,000 Penalty against Empyreal Jet : British Airways 777 Diverts Due To Incapacitated Pilot : FAA wants inspections of Boeing Max planes for wiring flaw that could lead to 'loss of control' : Navigating turbulence: Boeing’s lessons in risk management : Woman Causes Mid-Air Diversion On Jetstar Flight to Bali After Going On Rampage, Banging On Cockpit Door, Screaming at Passengers : NTSB Chair Calls Out Sensationalized Aviation Headlines : American Airlines Will Make Inflight Wi-Fi Free For All On its Domestic Fleet With New Ad Sponsored Connection : Iran Bought 29-Year-Old Airplane From Taliban : Boeing forecasts big losses after the Alaska Airlines incident : Boeing burns more cash than expected as it limits 737 production : Korean Air snubs embattled Boeing—its top aircraft supplier—as it inks $14 billion deal with Airbus : CALENDAR OF EVENTS Incident: Southwest B738 at San Jose Cabo on Mar 18th 2024, engine failure A Southwest Airlines Boeing 737-800, registration N500WR performing flight WN-3007 from San Jose Cabo (Mexico) to Houston Hobby,TX (USA), was climbing through about FL190 out of San Jose Cabo when the crew stopped the climb after an engine (CFM56) emitted a bang and streaks of flames and decided to return to San Jose Cabo. The aircraft landed safely back on runway 16 about 27 minutes after departure. The flight was cancelled. https://avherald.com/h?article=51663613&opt=0 Incident: Delta B739 at Aruba on Mar 19th 2024, engine problem A Delta Airlines Boeing 737-900, registration N805DN performing flight DL-581 from Aruba (Aruba) to Atlanta,GA (USA) with 168 passengers and 6 crew, was climbing out of Aruba's runway 11 when the crew levelled off at 3000 feet advising they needed to check some indications. Tower had already initiated a runway inspection and advised the crew it appeared they had an engine (CFM56) failure on departure. The crew decided to return to Aruba for a safe landing on runway 11 about 50 minutes after departure. Passengers reported the captain announced they had a left hand engine fire indication, the situation was under control. After landing they were told a large bird had been ingested into the engine. The flight was cancelled. The aircraft is still on the ground in Aruba about 23 hours after landing back. https://avherald.com/h?article=5166330f&opt=0 Incident: American A319 at Boston on Mar 20th 2024, engine compressor stall An American Airlines Airbus A319-100, registration N762US performing flight AA-1146 from Boston,MA to Philadelphia,PA (USA), was climbing out of Boston's runway 22R when the crew requested to level off at 6000 feet reporting they had a compressor stall on one of their engines (CFM56) and there was a brief smell of smoke afterwards, hence they wanted to return to Boston. The crew requested a long final while working 5 or 6 things they had to do. The aircraft landed safely back on runway 22L about 20 minutes after departure. Passengers reported they saw a streak of flames and some smoke, the captain subsequently announced it was a bird strike. A replacement Airbus A321-200N registration N467AL is estimated to reach Philadelphia with a delay of about 10 hours. https://avherald.com/h?article=51663145&opt=0 Cessna 700 Citation Longitude - APU Fire (Texas) Date: Wednesday 20 March 2024 Time: Type: Cessna 700 Citation Longitude Owner/operator: Private Registration: N828CL MSN: 700-0013 Year of manufacture: 2020 Fatalities: Fatalities: 0 / Occupants: Aircraft damage: Unknown Location: over the Gulf of Mexico - United States of America Phase: En route Nature: Private Departure airport: Roxboro-Person County Airport, NC (KTDF) Destination airport: Harlingen-Valley International Airport, TX (HRL/KHRL) Confidence Rating: Information is only available from news, social media or unofficial sources Narrative: The aircraft diverted to Corpus Christi, TX, reportedly due to an APU fire. https://www.aviation-safety.net/wikibase/366325 FAA Proposes $175,000 Penalty against Empyreal Jet FAA alleges company operated Hawker 800XP with damaged rudder on 31 revenue flights The FAA proposed a $175,000 civil penalty against Houston-based air charter operator Empyreal Jet for allegedly operating a Hawker 800XP in unairworthy condition following "improper" maintenance. "An inspection in September 2022 found cracks in the skin of the jet’s rudder," the FAA alleged. "In October 2022, Empyreal reinstalled the damaged rudder and subsequently operated the plane on approximately 31 revenue flights. Empyreal personnel entered in a maintenance log that they had replaced the rudder when in fact they reinstalled the original damaged part." Empyreal has 30 days after receiving the FAA’s enforcement letter to respond to the agency. The company, which has about 15 employees and a fleet of two Hawker 800XPs and a Bombardier Learjet 60, did not respond to AIN’s request for comment at press time. https://www.ainonline.com/aviation-news/air-transport/2024-03-18/faa-proposes-175000-penalty-against-empyreal-jet British Airways 777 Diverts Due To Incapacitated Pilot Passengers on a recent transatlantic British Airways flight had a rather eventful journey. The flight made a u-turn over the Atlantic, after one of the pilots became incapacitated. British Airways 777 diverts to St. John’s Canada This incident happened on Thursday, March 14, 2024, and involves British Airways flight BA2272 from New York (JFK) to London (LGW). The flight was operated by a 25-year-old Boeing 777-200ER with the registration code G-VIIP. The flight took off from New York at 9:54PM local time, to start the quick overnight transatlantic crossing. The 777 reached its cruising altitude of 40,000 feet, and the first three hours of the flight were routine, as the plane made its way northeast over the Atlantic. However, at that point one of the two pilots onboard reportedly became incapacitated. The remaining pilot declared an emergency, and requested to divert to St. John’s, Canada (YYT), which required backtracking around 500 miles. From the time that the aircraft turned around, it was a roughly 80-minute journey to St. John’s, where the aircraft touched down on runway 29 at around 3:30AM local time, just over four hours after it had departed. The British Airways 777 that diverted Emergency services were standing by so that the incapacitated pilot could be looked after. I haven’t seen any update as to that pilot’s condition, but hopefully s/he is okay. Also, kudos to the pilot flying for handling a stressful situation with ease, as I have to imagine that wasn’t a fun experience. British Airways’ impressive rescue effort Often when you have a medical emergency, you can just drop a passenger off, and then continue the journey to the intended destination. Of course it’s a different story when the person with the medical emergency is one of the people flying the plane. Landing in St. John’s in the middle of the night (a station not ordinarily served by British Airways) with hundreds of people is a logistical nightmare. So with that in mind, I have to give British Airways credit for a very impressive effort to minimize the inconvenience for passengers. How did British Airways handle this situation? British Airways has a daytime flight from Newark (EWR) to London (LHR), BA180, scheduled to depart at 8:55AM. On March 15, 2024, British Airways decided to cancel that flight, and instead flew the aircraft to St. John’s to pick up stranded passengers. A 23-year-old Boeing 777-200ER with the registration code G-YMMJ flew from Newark to St. John’s with the flight number BA9156, in a flight time of 2hr15min. It landed there at 1:07PM local time. Then it loaded up passengers, and at 4:18PM the plane took off for London Heathrow, where it landed at 11:10PM on Friday, March 15, 2024, after a flight time of 4hr21min. Another British Airways 777 flew to St. John’s All things considered, I’d say that’s about as efficiently as you could rescue passengers in a situation like this, so credit goes to British Airways’ operations team for that. So, what happened to the original 777? That first 777 ended up staying on the ground in St. John’s for a total of just under 36 hours. The plane was then ferried back to London Gatwick empty, as flight BA9608. That flight took 4hr18min, and landed in London just before 10PM on Saturday, March 16, 2024. Bottom line A British Airways Boeing 777 flying from New York to London had a very complicated transatlantic flight, after a pilot became incapacitated. The aircraft diverted to St. John’s, where the pilot received medical attention, and hopefully s/he is okay. I’m impressed by how quickly British Airways managed to pick up stranded passengers — the airline canceled a Newark to London flight so that the aircraft could instead return to London via St. John’s, picking up stranded passengers. https://onemileatatime.com/news/british-airways-777-diverts-incapacitated-pilot/ FAA wants inspections of Boeing Max planes for wiring flaw that could lead to 'loss of control' Boeing says it’s “not an immediate safety-of-flight issue,” but some aviation experts disagree. In December 2021, the flight crew of a 737 Max 8 jet descending on autopilot from the skies somewhere over the United States momentarily lost control when it “rolled violently to the right” without warning, the plane’s captain recounted. The first officer acted fast, disengaging the autopilot, and recovered control of the airplane — all within about a second. The plane landed safely with no other problems. The unidentified plane’s sudden uncommanded bank, at an angle of about 30 degrees, was enough to prompt the captain to submit a report to the Aviation Safety Reporting System, a NASA-run repository shared confidentially among front-line aviation personnel worldwide and available publicly with identifying details removed. In the report, the pilot wrote that a control panel warning lit up during the incident, signaling a problem with the airplane’s left-wing spoiler — a hinged plate on top of the wing that can be lifted to cause drag and slow the aircraft. It wasn’t the first time the problem had happened, the captain added. “This exact scenario was previously written up in the logbook multiple times in the preceding days,” the captain noted. The 2021 incident bears striking similarities to ones that prompted the Federal Aviation Administration to propose a rule last week to require that operators inspect the wings of about 207 737 Max airplanes in the U.S. for wiring damage within three years. It’s another in a string of manufacturing and quality control troubles to emerge publicly that have haunted the 737 Max line, thrusting Boeing into crisis. Details from the report that described the spoiler problem 27 months ago haven’t previously been reported. Neither have details in two “service difficulty reports” about incidents in two planes that were submitted to the FAA in December 2021 and November 2022. All three reports, which aviation experts reviewed for NBC News, appear to closely correspond with what the FAA publicly identified in its proposal last week as an “unsafe condition” that could result in a “loss of control” of certain Boeing 737 Max jets because of “nonconforming” installation of spoiler control wires. Two of the three reports noted an uncommanded rightward roll, coupled with the spoiler warning light. The third didn’t involve a roll, but it described issues similar to what the FAA says is “the root” of the problem described in its proposal: chafing of the wires controlling the spoiler. The FAA proposed rule, known as an airworthiness directive, cites a single report about one airplane that experienced “multiple unusual deployments” of spoilers during several flights, adding that an investigation found spoiler wire bundles became chafed because of contact with the aircraft’s internal wing structure. It said the condition is “likely to exist or develop on other products of the same type design.” The FAA’s move comes eight months after Boeing sent a service bulletin in July to operators of about 860 potentially affected 737 Max-8 and -9s worldwide, providing them with instructions to perform voluntary inspections of wire bundles in their fleets. Boeing first notified operators about the potential spoiler issue in May 2022, and it “developed a solution” in the Max production line in June 2022 that addressed the problem on new planes, spokesperson Jessica Kowal told NBC News. The steps Boeing has taken and the FAA’s rulemaking process demonstrate that “this is not an immediate safety-of-flight issue,” Kowal said. But four aviation experts — a former Boeing 737 factory manager, two retired FAA safety engineers and an ex-airline captain who flew 737s — said in interviews that they believe the problem is serious and requires more urgent attention. “I think it’s extremely significant, and I think Boeing and the FAA are not putting sufficient priority on it,” said Joe Jacobsen, a retired FAA engineer who has served as a technical expert to Congress and as an FAA technical representative on National Transportation Safety Board accident investigations. “It should be inspected as soon as possible.” The FAA declined to answer questions about its proposal for this article, saying in a statement only that it bases its “compliance times on the risk from the issue that’s being addressed.” The agency said it will “consider all relevant public comments” through late April before it finalizes the proposal. Captain John Cox, a former commercial airline pilot and founder of an aviation safety consultancy, said the problem demonstrates “yet another case where an airplane got out of the factory with a defect or an improperly executed task and it wasn’t picked up.” “That, in light of the other issues that we’ve seen recently from Boeing, is the most concerning to me,” he said. While it still faces legal and reputational fallout from two Max crashes that killed 346 people five years ago, Boeing came under new scrutiny this year after a panel blew out of a 737 Max 9 and left a gaping hole mid-cabin during a crowded Alaska Airlines flight in January. The incident prompted the FAA to temporarily ground some models of the plane and issue an emergency airworthiness directive requiring immediate inspections. By contrast, Kowal said, the spoiler issue “has been identified as a safety issue longer-term," giving operators up to three years to inspect the planes. Kowal declined to answer questions about exactly when Boeing first learned of the issue or provide details about the aircraft that prompted internal analysis of the problem. Boeing isn’t sure how many operators have already voluntarily performed inspections, Kowal said. At least one, SunExpress Airlines, has submitted a comment to the FAA seeking credit for having already performed the voluntary inspections once the proposal becomes mandated. “This issue isn’t new or an emergency,” Kowal said. But until the FAA published its proposal along with Boeing’s July service bulletin last week, the public knew nothing about the matter, said Ed Pierson, a former manager of Boeing’s 737 factory who now heads the nonprofit advocacy group Foundation for Aviation Safety. “The FAA is just now reporting it,” Pierson said. “Not even reporting it — we’re learning about it through a federal rule-making process … under the guise of informing the public.” “You would think people would want to know,” he added. Cox, the former commercial airline pilot, said he believes most trained commercial airline pilots confronted with such a rogue spoiler deployment in flight could overcome the problem. “I can see places where it would be fairly serious, you know, like in the process of landing,” he said. “But 737s have so much roll control. It’s one of the real strengths of that jet.” An uncommanded spoiler deployment “could make for a hard landing or something like that if it happened at the exact wrong time,” he added. “But that window is really short. It could be a handful, but I think that it would be controllable.” Cox said he believes the FAA proposal calling for inspections of hundreds of Maxes is the appropriate way to address the problem. But he added it’s surprising how long it took Boeing, and then the FAA, to address the issue after they learned about it. “Any time you have an uncommanded flight control movement, it’s serious,” Cox said. “So for something like this, I would like to think they’d move faster than that.” Asked about the time it took Boeing to respond, Kowal said that in general, when an issue is reported in the fleet, an engineering analysis is conducted to identify a root cause and determine safety implications and production issues. All of that takes time, she said. The FAA then has its own regulatory pace and process, she said. Specific to the spoiler issue, Kowal said: “The chafing happens at a very slow rate; this was identified in the fleet on one airplane.” But one of the reports NBC News reviewed suggests that wire chafing occurred on a relatively new plane, and states that it might have happened during production. Kowal didn’t address the specific reports identified by NBC News for this story, saying only that “any issue that Boeing becomes aware of is assessed from a safety perspective with the FAA.” Mike Dostert, a retired FAA engineer who has studied wiring problems that caused airplane accidents, said wire wear rates are unpredictable because of a host of variables that can occur during installation. “In my experience, it’s not an exact science,” said Dostert, who wrote multiple airworthiness directives during his career. “They need to get these things fixed quickly,” he added. “We shouldn’t be taking long times, especially years, to address potentially catastrophic, unsafe conditions. Why take the chance?” https://www.nbcnews.com/news/us-news/boeing-max-737-scrutiny-faa-proposes-inspections-possible-wiring-flaw-rcna143861 Navigating turbulence: Boeing’s lessons in risk management In the realm of risk management, aviation has historically set the benchmark, turning its failures into powerful learning opportunities. Boeing’s recent string of safety incidents, while concerning, offers invaluable lessons for health and safety professionals and risk managers across industries. By examining these systemic issues as a collective rather than isolated events, we gain insight into the crucial importance of maintaining rigorous safety standards and the potential consequences of their neglect. A Series of serious failings Boeing’s experiences underscore a recurring theme of quality and safety oversight, evidencing the need for continuous vigilance in risk management practices. The recent incident in Oregon, where a Boeing 737-800 landed missing a fuselage panel, is but one of several incidents raising alarm. This pattern includes the Alaska Airlines flight where an unused cabin door blew out, and the distressing event of a Boeing 787-9 Dreamliner unexpectedly dropping in flight, among others. These incidents highlight a worrying trend and serve as case studies of the cascading effects of systemic lapses in safety protocols and quality assurance. The diverse nature of these incidents points to widespread challenges within Boeing’s operations, from manufacturing defects to procedural errors, emphasising the complexity of risk management in large high-risk environments. The FAA’s intervention and Boeing’s strategic adjustments in response to these incidents illustrate the dynamic between regulatory oversight and corporate responsibility in risk management. The FAA’s stringent measures and Boeing’s organisational changes reflect a concerted effort to address these systemic issues, showcasing the critical role of both external and internal checks in maintaining safety standards. Stakeholder confidence Maintaining stakeholder confidence is paramount, with each incident serving as a potential erosion of trust in Boeing’s commitment to safety — a core concern for risk managers in any industry. The apprehensions expressed by affected families and passengers highlight the broader implications of safety incidents on stakeholder trust, underscoring the need for transparency and accountability in addressing failings. Should stakeholder confidence not be improved, it could not be long before Boeing goes the route of other airlines such as ValuJet who after a series of safety failings, never recovered from the reputational damage. Fostering culture Boeing’s saga offers several key takeaways for health and safety professionals and risk managers. First and foremost is the necessity of fostering a culture that prioritises safety and quality above all. This entails not only adhering to existing standards but also proactively seeking ways to enhance them. Continuous learning and adaptation are paramount, as evidenced by Boeing’s challenges and responses. Moreover, the Boeing incidents illuminate the significance of transparency and open communication with all stakeholders, including employees, customers, and regulatory bodies. Building and maintaining trust is essential, particularly in the aftermath of safety incidents. This trust is grounded in demonstrable commitments to safety, rigorous investigation of any failings, and the implementation of comprehensive corrective actions. Systemic thinking Lastly, these episodes remind us of the importance of systemic thinking in risk management. Identifying and mitigating risks requires a holistic approach that considers the entire ecosystem of an organisation’s operations. Health and safety professionals and risk managers can apply these lessons by conducting thorough risk assessments, fostering a culture of safety and continuous improvement, and engaging in open dialogue with stakeholders about risk management practices. Boeing’s experiences, while specific to aviation, offer universal lessons in the critical importance of robust risk management systems, the continuous pursuit of safety excellence, and the value of stakeholder trust. As professionals dedicated to safeguarding health and safety, there is much we can learn from Boeing’s turbulence to apply in our own spheres, ensuring that we navigate our challenges with the same commitment to learning and improvement. https://www.shponline.co.uk/air-safety/navigating-turbulence-boeings-lessons-in-risk-management/ Woman Causes Mid-Air Diversion On Jetstar Flight to Bali After Going On Rampage, Banging On Cockpit Door, Screaming at Passengers A woman described as ‘the passenger from hell’ went on a rampage on a Jetstar flight to Bali on Monday morning, forcing the pilots of the Boeing 787 Dreamliner to make an unscheduled diversion just an hour and a half into the five hour flight. Dramatic video has emerged of the woman screaming at a passenger while other passengers stand watching helplessly around her in the airplane’s aisle. Jetstar flight JQ43 to Denpesar departed Melbourne just before 11 am on Monday and was still flying over South Australia when the pilots performed a U-turn and returned to Tullamarine Airport. Some reports suggest the woman had started to bang on the cockpit door after accusing one of her fellow passengers of stealing her mobile phone. She then allegedly went on a rampage throughout the aircraft, shouting and screaming at random people and barging passengers out of her way. In a statement, a spokesperson for Jetstar confirmed that “the Captain decided to return to Melbourne to get assistance from the Australian Federal Police after a passenger became disruptive just under two hours into the flight.” “We know this was a difficult experience for other customers and our team members, and we thank those who assisted with the situation,” the statement continued. “Due to the circumstances, several crew members were unable to continue flying”. The airline said that the flight had been rescheduled to 10 am on Tuesday and that impacted passengers would be provided hotel accommodation. They will also be able to claim for ‘reasonable’ expenses. “The safety of our customers and crew is our priority,” the Jetstar spokesperson noted. Witnesses described how cabin crew and good samaritan passengers helped to restrain the woman at the back of the aircraft as the plane returned to Melbourne. https://www.paddleyourownkanoo.com/2024/03/18/woman-causes-mid-air-diversion-on-jetstar-flight-to-bali-after-going-on-rampage-banging-on-cockpit-door-screaming-at-passengers/ NTSB Chair Calls Out Sensationalized Aviation Headlines News stories on what many industry insiders consider to be minor incidents have caught the NTSB Chair's eye. Amid a flurry of recent headlines around commercial aviation incidents, NTSB Chair Jennifer Homendy is speaking out. “I’ve seen a lot of sensationalism around aviation lately,” she said in a recent Tweet. The last few weeks have seen an uptick in news reports pertaining to commercial flights, particularly from mainstream outlets. These reports even prompted United CEO Scott Kirby to send a letter to customers saying, “Unfortunately, in the past few weeks, our airline has experienced a number of incidents that are reminders of the importance of safety.” United has borne the brunt of the media spotlight with a slew of recent incidents, including a falling wheel from a 777-200 and a panel that went missing on a 737. The Chicago-based airline joins Boeing, which has been in the spotlight following January’s door plug blow-out on Alaska flight 1282. In her post, Homendy touted aviation’s robust safety culture compared to U.S. roadways. “118 people will die on our roads today. Where is the outrage?” she said. “The fact is our aviation system is the safest in the world and all of us – investigators, regulators, airlines, employees, and manufacturers – are working to make sure it stays that way. I will say it again, the riskiest part your travel day is driving,” she continued. The Chair cautioned that the industry’s work to improve upon its strong safety culture never ends. “That does not mean we don’t have more to do to ensure safety in our skies. Our work is never done. But imagine what could happen if we were just as focused on eliminating death on our roads: we could achieve zero…together.” Newsrooms have locked in on a wide array of incidents in commercial aviation, many of which are regular – and sometimes even daily – occurrences. The San Francisco Chronicle caught wind of a United flight that had a “mechanical problem with the plane,” but returned to the gate before departure; a common practice that seldom draws attention. https://airlinegeeks.com/2024/03/20/ntsb-chair-calls-out-sensationalized-aviation-headlines/ American Airlines Will Make Inflight Wi-Fi Free For All On its Domestic Fleet With New Ad Sponsored Connection American Airlines will offer free inflight Wi-Fi across most of its domestic narrowbody fleet over the coming months with a new ad-sponsored option, the Fort Worth-based carrier announced on Wednesday. Until now, AA has only offered free Wi-Fi to certain T-Mobile customers through the ‘Inflight Connection On Us’ program, although that was limited to mobile devices only and didn’t work with a laptop or tablet. Now, however, American Airlines says it will offer free gate-to-gate Wi-Fi for all customers with its ad-supported option, which will roll out throughout the year on Viasat-enabled narrowbody aircraft. If you don’t want to watch ads to access inflight Wi-Fi then AA will still offer several paid options, including time-based packages and flight passes, with prices varying depending on the duration of the flight. For frequent flyers, the carrier also offers monthly and annual Wi-Fi subscriptions, and later this year, AAdvantage members will be able to start using their miles to pay for inflight Wi-Fi. In the next few weeks, AA will add the ability to pay for Wi-Fi with miles on a couple of select aircraft before rolling out the feature across its entire Viasat-enabled fleet by the summer. American Airlines has three providers of inflight Wi-Fi, and Viasat is installed across the carrier’s mainline narrowbody fleet. AA also has Intelsat (formerly known as GoGo) Wi-Fi installed on some narrowbody aircraft, as well as regional jets and free ad-supported Wi-Fi won’t be coming to these planes. In addition, widebody aircraft fitted with the Panasonic Wi-Fi system will also be excluded from the free ad-supported Wi-Fi option, as well as the ability to pay for Wi-Fi with miles. https://www.paddleyourownkanoo.com/2024/03/20/american-airlines-will-make-inflight-wi-fi-free-for-all-on-its-domestic-fleet-with-new-ad-sponsored-connection/ Iran Bought 29-Year-Old Airplane From Taliban Amid a deteriorating aviation fleet and a bleak outlook for acquiring modern aircraft, Iran has purchased a 29-year-old plane from the Taliban, Iranian daily Aftab-e Yazd has reported. The plane, most likely a McDonnell Douglas MD-82, was originally built in 1995 for Italy. It was later used by Ukraine for 19 years and then by Kam Air, an Afghan airline. It has been acquired by Iranian airline Kish Air, the paper claimed. The article by Aftab-e Yazd also criticized the Raisi administration which has claimed it has added 90 planes to the country's fleet, saying that 50 of them were old planes that have been repaired in Iran. The article quipped, "Let's just pray” that Iran only bought one 29-year-old Kam Air aircraft and the remaining 49 are procured from other sources. The purchase of the plane comes just two months after Airbus, the European aerospace giant, officially canceled a major deal to sell Iran 100 planes. The deal was worth an estimated $30 billion and was seen as a key part of Iran's efforts to modernize its fleet after the lifting of sanctions as part of the 2015 nuclear agreement (JCPOA). A few airbus planes were delivered but the Trump administration never approved sale of US planes until Washington withdrew from the JCPOA in May 2018 and reimposed sanctions. Iran has suffered from shortages of civilian airliners since the 1990s. The sanctions have made it almost impossible for Iran to purchase new aircraft or spare parts from Western companies. To compensate, Iran resorted to leasing older planes or procuring spare parts through intermediaries. However, the technical state of their fleet has steadily deteriorated over time. As a result, Iran's fleet has become increasingly old and unreliable. The average age of Iran's planes is now over 25 years, and many of them are in need of major repairs. In July 2023, Mohammad Mohammadi-Bakhsh, the head of the Iranian Civil Aviation Organization, said that Iran currently needs 550 planes, but only has 180. https://www.iranintl.com/en/202403155319 Boeing forecasts big losses after the Alaska Airlines incident Boeing will report a massive loss in the first quarter stemming from the Alaska Airlines door plug blowout on January 5, Chief Financial Officer Brian West said at an investor conference Wednesday. The beleaguered company said its commercial airplane unit’s operating profit margin would plunge to around -20%. That would be the biggest loss margin at the Boeing unit in two years, since the company had been forced to halt deliveries of its 787 Dreamliner because of other quality issues at that time. This time, the 737 Max production has been slowed because of the door plug that blew off of a 737 Max 9 on an Alaska Air flight soon after takeoff, leaving a gaping hole in the side of the jet. Shares of Boeing, a component of the Dow Jones industrial average, were down about 2% in premarket trading on the guidance. The losses will be in part because of compensation to airlines that owned the Max 9, which was grounded for three weeks after the incident. Alaska Air CEO Ben Minicucci told investors last month that the incident cost his airline about $150 million, and that it expected to be compensated for those losses by Boeing. The other contributors to losses will be “all the things we’re doing around the factory,” West said, leading to slower production at its 737 Max plant in Renton Washington. “There are changes that need to happen. There’s no doubt about it,” he noted. “We’re deliberately going slow to get this right. For years, we prioritized the movement of the airplane through the factory over getting it done right, and that’s got to change.” West said that Boeing would slow production of the Max below the 38 per month it was building at the end of 2023. It had originally planned to increase production this year, but those plans to increase output were halted by the Federal Aviation Administration as it conducts an audit of Boeing’s operations. It has given Boeing 90 days to come up with a plan to fix quality and safety issues for its commercial planes. West described the audit, which has found wide ranging problems with quality controls at Boeing factories, as “a tougher audit than anything we’ve been through before.” He said profit margins in the commercial airplane unit, the largest at Boeing, would be negative through the rest of this year, although they will “get better through the year.” “But if we run the business for the long term, we believe that those margins are going to get to historical levels in the ’25-‘26 timeframe.” The company’s commercial plane unit had a 14% operating profit margin for 2018, its most recent profitable year. Higher production rates in the future will allow that return to profitability, according to West, along with the shutdown of what Boeing calls “shadow factories” where planes that come off the assembly line are held back from being delivered to customers for additional work that needs to be done on them. “There’s a lot that needs to happen between now and then,” he said. The company reported a $41 million operating profit for its commercial aircraft unit in the fourth quarter, giving it a 0.4% profit margin, the first positive margin at the unit in nearly five years. It faced a 20-month grounding of the 737 Max that started in 2019 following two fatal crashes that killed 346 people that was attributed to a design flaw with the planes. Since the start of that grounding, Boeing has reported total operating losses of $31.5 billion through the end of last year. While a 20% loss margin is bad, Boeing has seen worse recently, with the loss margin from its commercial airplane unit soaring to 169% in the second quarter of 2020, as it dealt with both the Max grounding and the start of the pandemic. The pandemic caused airlines globally to essentially stop taking deliveries of new jets due to massive losses caused by a near halt in air travel. https://finance.yahoo.com/news/boeing-forecasts-big-losses-alaska-121849387.html Boeing burns more cash than expected as it limits 737 production March 20 (Reuters) - Boeing (BA.N), opens new tab's MAX safety crisis is causing it to burn more cash than expected, its finance chief said on Wednesday, meaning the U.S. planemaker will need more time to hit a key financial target for coming years. The company is trying to get control of safety issues following a Jan. 5 mid-flight panel blowout on a 737 MAX 9 aircraft that has placed it under the watchful eye of U.S. regulators - and frustrated airlines already struggling with delivery delays from both Boeing and its rival Airbus. CFO Brian West told a Bank of America conference that Boeing's cash burn in the first quarter will be somewhere between $4 billion and $4.5 billion, higher than they planned back in January. The order backlogs are frustrating airline executives, who have started to cut routes and are trying to acquire additional aircraft to meet demand. Michael O'Leary, CEO of key European Boeing customer Ryanair (RYA.I), opens new tab, told Reuters he is meeting with senior company executives on Wednesday in Dublin to discuss prolonged delivery delays. Boeing declined comment on the visit. U.S. regulators have limited Boeing's 737 production to 38 a month - but West said Boeing is producing fewer than that allowable amount, though did not elaborate. "We're deliberately going to slow to get this right," West told the conference. "We are the ones who made the decision to constrain rates on the 737 program...and we'll feel the impact of that over the next several months." West said lower deliveries, lower production volumes at its commercial division and pressure on working capital is affecting free cash flow. It means Boeing will need more time to hit a goal outlined in 2022 for annual cash flow of about $10 billion by 2025 or 2026. "It's going to take us longer to get there than we planned," West said, projecting that goal will be hit further out in the 2025 to 2026 window. "But we believe that the actions that we're taking right now better position us for that long term." Manufacturing quality at Boeing and its major supplier Spirit AeroSystems (SPR.N), opens new tab has come under heavy scrutiny since the mid-air blowout on an Alaska Air (ALK.N), opens new tab flight. Boeing is in talks to buy its former subsidiary Spirit, which it spun off in 2005. Any deal would be funded with a mix of cash and debt, rather than shares, West said. The deal faces a number of hurdles, as Spirit owns several plants that supply Airbus, and Boeing may need Airbus to help it untangle those ties. West added that margins at the commercial airplanes business would be "more like negative 20%" in the first quarter, as it has to compensate customers for delivery delays. Margins will improve throughout the year but will still be negative overall in 2024, he said. The CFO said that in the future Boeing would only take deliveries of fully conforming fuselages from Spirit. Spirit currently assembles the fuselage for the 737 before it is shipped to a Boeing factory in Washington state to be completed. "For years, we prioritized the movement of the airplane through the factory over getting it done right, and that's got to change," West said. The panel that blew off the 737 MAX 9 jet appeared to be missing four key bolts, according to a preliminary report from U.S. investigators. Boeing shares rose 2.3% on Wednesday. https://www.reuters.com/business/aerospace-defense/boeing-has-decided-keep-737-production-below-38month-cfo-says-2024-03-20/ Korean Air snubs embattled Boeing—its top aircraft supplier—as it inks $14 billion deal with Airbus Korean Air Lines Co. passed over embattled Boeing Co. — typically the carrier’s top aircraft supplier — to order 33 Airbus SE A350 wide-body jets in a $14 billion deal as it seeks to streamline its fleet ahead of a merger with Asiana Airlines Inc. The order will see the Seoul-based carrier buy 27 of Airbus’s largest twin-aisle jet, the A350-1000, and six smaller A350-900s, which it selected over Boeing’s yet-to-be-certified 777X. Bloomberg News previously reported Korean Air was on track to announce a significant deal as soon as this week for at least 20 A350 jets. “The procurement of the next-generation, eco-friendly A350 is not only aligned with the airline’s sustainability efforts, but also is seen as preparation for the integration of Asiana Airlines,” Korean Air said in a statement Thursday. The 18.5 trillion won ($14 billion) deal is before customary discounts. Demand for larger jets, bullish bets on travel growth and strains on planemakers’ ability to meet demand for single-aisle aircraft this decade is fueling a surge in wide-body orders. Korean Air is also looking to simplify its fleet and reduce costs ahead of its merger with smaller rival Asiana. The tie up just needs regulatory approval in the US. Airbus also scored another victory on Thursday with Japan Airlines Co. buying 42 jets, picking 21 A350-900s and 11 A321neos, while Boeing scored a consolation order of 10 787-9s. The merger with Asiana is set to bring Korean Air a significant number of modern, and sought-after, Airbus jets. The airline doesn’t operate the A350 but Asiana does — with 15 in its fleet and a further 15 on order. Both carriers are flying nine relatively new A321neos each and have a combined backlog of 57 of Airbus’s largest narrow-body jets. Bloomberg previously reported that Korean Air is interested in adding more A321neos. Korean Air had almost 160 aircraft as of Dec. 31, according to its most recent financial filing, and around 100 on backlog. The carrier is also mulling jettisoning its fleet of 10 Airbus A220s, its smallest jet, Bloomberg reported last month. The order is a boost for Airbus as its A350-1000 jet picks up its 10th new operator in 12 months — among them Delta Air Lines Inc., which has a 14.9% stake in Korean Air’s parent Hanjin KAL Corp. The series of deals helps counter the loss of some wide-body campaigns due to engine maker Rolls-Royce Holdings Plc’s stance on tougher pricing. Meanwhile, rival Boeing faces increased scrutiny of the safety of its jets following several recent incidents. https://fortune.com/asia/2024/03/21/korean-air-snubs-embattled-boeing-top-aircraft-supplier-inks-14-billion-deal-airbus/ CALENDAR OF EVENTS • 2024 Women in Aviation International Conference - March 21-23 (Orlando) • SMU Air Law Symposium - March 21-22, 2024 ( Dallas, TX) • 2024 ACSF Safety Symposium – Air Charter Safety Foundation - April 1-3, 2024 • Blazetech - Aircraft Fire Hazards, Protection, and Investigation Course June 4 - 7, 2024 • Airborne Public Safety Association, Inc. (APSCON 2024) - July 29 - August 3; Houston TX • Asia Pacific Airline Training Symposium - APATS 2024, 0-11 September, 2024, Singapore • Aircraft Cabin Air International Conference - 17 & 18 September - London • 2024 ISASI - Lisbon, Portugal - September 30 to October 4, 2024 • International Congress of Aerospace Medicine ICAM 2024 in Lisbon, Portugal, 3 - 5 October 2024 • Aviation Health Conference back on Monday 7th and Tuesday 8th October 2024 • 2024 NBAA Business Aviation Convention & Exhibition - Oct. 22-24 (Vegas) Curt Lewis