Wouldn't it be best if the sensors were actually "in" the duct?

The crap I'm finding on a weekly basis is disheartening to say the least!

Duct broken, sensors laying on ceiling light.

Heat from light caused a "Duct Overtemp" warning from tripping the high temp bulb.

Pressure Switch fault ball showing on inbound "Stabilizer Trim" EICAS message.

What is the fault ball saying?

The Stabilizer Trim/Aileron Lockout boxes verify they have two viable hydraulic systems (in this case left and center), by comparing on-side to off-side pressure switch signals. This is the left box, so it looks at the left pressure as on-side and center as off-side.

The right box would look at the center hydraulic system as on-side and the left as off-side.

Either way...... there's a mismatch. The meter confirmed this to be true. With hydraulic pressure applied to left and center, only one (of two) input pins showed a ground (both should have).

The left pressure switch was at fault.

We shot the switch by pinning directly into it. No issues.

We verified wiring..... Pin 3 was showing a hard ground. Pin 2 wasn't.

No frickin way. Sure as shit, pins 2 & 3 where swapped in the plug.

This pressure switch feeds numerous other units which are looking for the same ground signals. All six spoiler boxes, the yaw dampers, and rudder load limiters.

It also plays a roll in automatic functions of the hydro pumps and the overhead low pressure lights.

How in the ---- wasn't there some other issues with the aircraft???

Too tired to follow them all out. Either way, after the wiring was corrected, all systems (that we knew of) checked out.  

Correct wiring verified by wire numbers.....  

  ..... and continuity checks from the P37 panel.  

With the pins in wrong positions, with no pressure - the grounds were correct. With pressure, both pins on the unit had continuity to each other. I really just don't know how anything worked right!

When the wing of a larger aircraft (A330) smacks the tail of a smaller one. They both lose..... one though, hurts worse.

Not sure if this is repairable. 

https://www.foxnews.com/us/delta-endeavor-planes-collide-tarmac-hartsfield-jackson-atlanta-international-airport

Captain's pitot heat fail light on after engine start.

Please reference https://rotate.aero/forum/767-ice30/242-ata-30-31-pitot-heat for an understanding of the 767's pitot heat system.

The system has two heat modes, low heat after engine start and high heat in air mode.

This particular problem (failed Capt's Pitot Heat) showed up after engine start.

Pitot heat test from the P61 panel was normal.

I took out the Current Sense relay (K241) and shot the probe coil from "Pin C1". 38 Ohms..... seems normal?? Pulled the "A Phase" breaker..... still had continuity..... not normal.

What the hell is going on here?

90% of pitot heat failures are heater coils burning open. This one tested from the cockpit test switch, so the coil is still good.

Well kinda..... In test mode, you're simulating "air" mode or high heat. "A" and "B" phases are connected through the heater coil in air mode, instead of "A" phase to ground in "low heat" mode.

We pulled the probe and shot it with VOM. We found out one side of the coil wire was shorted to ground and the other completely open.

That would explain our problem. In low mode, "A" phase was going nowhere (open leg on coil), In high heat mode, "B" phase was coming in from the opposite side, going through the coil to ground. It was enough current to turn off the fail light. The pitot probe would of been heated in the air, but only in low heat mode.

I have never seen a probe fail in such a manner.

Red represents short to ground. Green, the open pin.

I wish I could show the whole circuit, but Boeing has been watching the site for plagiarism.

These tiny-ass screws hold these tiny-ass relays. I seem to drop them regularly.

These little guys are everywhere in the electronic panels down in the E&E.

Once you drop one..... you rarely ever find it.

I have looked through the IPC's. If there is a part number, I can't find one.

When you have passed the 90% timeline in your career and "then" you find out about a trick that could have saved you hours of work and struggle.....

High-density rack pins can be an absolute pain to install. Fighting wire bundles, tie-wraps, and small spaces to get your hands into.

Tweasers, needle-nose plyers, and plastic insertion tools as your weapons.

Is there an easier way?

Yep.

20 gauge wire..... strip, but don't remove insulation.

Shove through the rack socket from the front side and pull out the back.

Insert your pin in the insulation.

Pull from the front side..... the new pin locks into the plug and your wire pulls off the end!!!

Damn..... something so simple and I just find out now.

New forum post.

APU Oil Quantity Simulation

Please visit the furum under 767 APU Oil Qty Simulate.

I'm sure this is probably the same oil quantity system on most Boeing jets. 

New member "rwm1273"

If someone has a website I'm more than happy to promote it 

https://www.rwmaviation.com/

Doing a wiring modification. Some of the cockpit overhead breaker panels down. What do I see?

Missing screw on bus-bar. Not good.

System involved..... Fire detection left engine alternate power.

This would not be seen by the crew or maintenance when doing fire system tests as it is not the primary source of power. If you were in an emergency on Standby Power, fire warning would not work

From Zero Hedge

"Serious Public Safety Risk": New Boeing Whistleblower Warns About "Substandard Manufacturing" On 787 Jets

 By Tyler Durden

In the first five months of this year, the Federal Aviation Administration received more than eleven times as many Boeing whistleblower complaints compared to all of last year. The surge in whistleblowers first came after the 737 Max mid-flight door plug blowout in January. The latest Boeing whistleblower was revealed on Wednesday, warning about 787 Dreamliners. 

Attorneys for Richard Cuevas, airplane mechanic and contractor for Boeing manufacturing partner Spirit Aerosystems, detailed in a statement on Wednesday that they filed complaints with the FAA and Occupational Safety and Health Administration, alleging that the mechanic "witnessed substandard manufacturing and maintenance processes on the 787 forward bulkheads, including critical drilling and sealant issues." 

"Cuevas complained that these safety issues, if unremedied, could compromise power and air pressure on the planes, creating a serious public safety risk," attorneys Debra Katz and Lisa Banks at law firm Katz Banks Kumin wrote in the statement. 

After he brought up these troubling concerns—initially with Spirit management and later with Boeing's ethics program—he was fired. A Spirit manager told him his termination was a "sign of the times." 

The lawyers continued, "Our client witnessed critical issues with the forward pressure bulkhead assembly on multiple planes that deviated from Boeing's specifications," adding, "He recognized the substandard work and expressed concern about his safety concerns, but Spirit and Boeing failed to stop the faulty manufacturing processes. Mr. Cuevas was fired when his manager found out that an employee complained about these issues, and suspected that employee was Mr. Cuevas." 

Here's a summary of Cuevas' technical allegations (courtesy of his lawyers):

Mr. Cuevas's complaints allege that Spirit made a range of manufacturing and assembly specification changes on the 787 forward pressure bulkhead without Boeing's permission. These allegations are different from previously reported issues with the forward pressure bulkhead in 2021. 

Mr. Cuevas alleges that Spirit deviated from Boeing's manufacturing specifications while drilling holes in the fasteners of the forward pressure bulkhead of 787s. Deviations from these specifications compromise the seal necessary to maintain air pressure during flight. Boeing requires fastener holes in this section of the plane to be drilled at .2475 inches, which provides a near-perfect "interference-fit" that best retains air pressure during flight. Instead of drilling at that size, Spirit workers were directed to drill holes using a .2495 drill bit, to clear excess paint from the holes and speed up a slow process. Mr. Cuevas alleges that this caused the interference fit to be compromised in Row 3 of these fasteners, which houses critical electrical components, risking power failure and depressurization inflight. Mr. Cuevas observed that Boeing conducted an unannounced inspection and identified 117 out of 200 improperly drilled holes on the bulkhead, but that it has yet to correct the issue. Mr. Cuevas witnessed these problems with three planes he worked on and believes that these issues may affect at least 10-12 planes either in production or already released to Boeing.

Mr. Cuevas also alleges that, because of the ethics investigation, Spirit had fallen behind schedule on its repairs, and therefore instructed workers to incorrectly apply sealants to the plane's bulkhead fasteners. Usually, the first layer of sealant on this section of the plane requires approximately 168 hours to cure. On occasion, Mr. Cuevas witnessed only a two-hour gap between applying the first and second layer of sealant, which caused bubbles to form between the two layers, disrupting the needed torque to keep the fasteners in place. Boeing noticed this issue during its inspections on one aircraft and asked Spirit to reapply the sealants. Mr. Cuevas, however, fears that this and other issues, like the lack of an interference fit due to improper drilling, will go undetected on other planes.

Responding to the complaint, Boeing told the local paper Seattle Times that Cuevas' concerns were investigated and that an engineering analysis "determined the issues raised did not present a safety concern and were addressed."

"We are reviewing the documents released today and will thoroughly investigate any new claim," Boeing said.

Boeing's list of problems appears to be growing weekly (from federal investigations to hearings on Capitol Hill to whistleblowers to mid-air mishaps). One of the last whistleblowers (still living), Sam Salehpour, a former Boeing engineer, warned lawmakers on Capitol Hill in mid-April about safety concerns for the 787 and 777 aircraft. 

Salehpour warned that the 787 Dreamliner fuselage was improperly put together and that the company "rushed to address the bottlenecks in production." The result, he warned, is "premature fatigue failure" on these planes. He noted, "They are putting out defective airplanes."

Meanwhile, outgoing Boeing's CEO Dave Calhoun apologized for the planemaker's recent series of safety failures in testimony delivered to a Senate committee last week. 

In markets, Boeing shares have been more than halved since peaking in early 2019 at $446 a share, which was around the time of the twin Max 737 crashes, killing 346 people. 

From Zero Hedge

As Alaska Airlines and United Airlines have resumed flying Boeing 737 Max 9 jetliners in recent days, a new report from The Wall Street Journal finds that the incident involving a door plug being blown off an Alaska Airlines flight over Portland earlier in the month was probably caused by the lack of bolts. This issue dates back to when the aircraft was manufactured.

According to people familiar with the matter, what's becoming apparent is that the most likely scenario is that Boeing employees failed to reinstall plug door bolts at the factory after opening or removing them during production.

They pointed to the absence of markings on the door plug that would instruct factory workers to double-check if the bolts were in place and lapses in paperwork surrounding the factory's work on the doors.

When Spirit AeroSystems delivers the 737 fuselage to Boeing's Renton, Wash., factory for final assembly, the door plugs are installed. During the assembly process, the door plugs are removed and reinstalled. 

Boeing has yet to reveal how many factory workers handled the door plug. It's important to note that Spirit's factory in Malaysia makes the door. 

Last week, Sen. Tammy Duckworth (D., Ill.), chair of a Senate panel on aviation safety, met with Boeing Chief Executive David Calhoun about door plug woes. 

"It is going to show that there has been lack of documentation when it comes with how and when those pins were installed or removed and whether or not they were reinstalled or not," said Duckworth. 

She continued: "He assured me that they were going through that entire process to make sure that they are able to track on their aircraft when these things are happening."

From The Daily Reckoning

James Rickards

What happened to Boeing, the former gold standard of American industry? Nothing good, as I’ll show you today.

Simply put, Boeing isn’t the company it used to be.

By now, I’m sure you’ve heard about the Jan. 6 near crash of a Boeing 737 Max 9 operated by Alaska Airlines, after the fuselage door blew off the plane. That caused decompression and the use of emergency oxygen.

The door blew out because of a door-plug failure at about 16,000 feet. At that altitude, temperatures are freezing, and oxygen is quite low relative to sea level.

The oxygen masks deployed, and passengers were able to secure them and hope for the best as the pilots tried to land the plane safely.

An altitude of 16,000 feet is practically the highest altitude that the passengers and crew could have survived the ordeal. At altitudes of 20,000 or higher, the depressurization would have caused extreme instability and possibly crashed the plane.

It’s also likely that passengers and crew would have passed out before being able to secure the oxygen masks. At 30,000 feet, just slightly higher than the summit of Mount Everest, the plane certainly would have crashed.

Fortunately, the plane landed safely with only minor injuries despite badly shaken nerves.

A Double Disaster

The fuselage door detaching was not the only disaster that occurred in those frightening minutes. The depressurization also caused the cockpit door to blow open, which exposed the pilots to the extreme wind and noise going on in the back of the plane at a time when they were desperately trying to stage an emergency landing.

Cockpit doors have been required to be highly secure and open from inside the cockpit only since the 9/11 hijackings. This was an added shock to the pilots at a critical time.

Boeing later lamely explained that the cockpit door is supposed to blow open during an extreme depressurization incident. But they never put that critical detail in the operating manual, and the pilots on the Alaska Airlines flight had no idea that would happen. Neither did many experts and engineers who were consulted by the media.

This separate critical incident will only add to the scrutiny, liability and criticism that Boeing is now experiencing for what is seen as gross incompetence.

MORE Problems With This Plane?

The double-door blowouts on the 737 Max 9 were bad enough. Of course, this comes not long after the double crashes of Boeing 737 Max 8 planes in Indonesia in October 2018 and Ethiopia in March 2019. These were due to software flaws that put the planes into dives that pilots hadn’t been trained to counter.

Boeing’s global fleet of 737 Max 8 planes were grounded at that time. However, Boeing was seen as slow to respond after the first crash. It was really the airlines themselves that took the lead in grounding their own planes.

Boeing vowed internal investigations and improvements in quality control at that time. The flaws were subsequently corrected, but obviously problems remain. Here we are just five years later with another quality control fiasco grounding another fleet of aircraft.

The plane involved in the latest incident was basically brand-new. It wasn’t an older aircraft that experienced metal fatigue.

According to news reports, both Boeing and Alaska Airlines had some indications that there were difficulties with the door plugs on the fuselage door.

Since the 737 Max 9 is a relatively new model and the particular plane that suffered the door failure was, again, almost brand-new, engineers decided to ignore the warnings as just a kink that sometimes appears in new equipment and will self-correct or be easily adjusted.

This was not the case; the manufacturer and operator were both receiving warnings of a potential catastrophic failure that they chose to ignore.

Boeing has now grounded its entire global fleet of 737 Max 9s, about 170 aircraft in all.

When It All Started Going Wrong

Where did it all start going wrong for Boeing? You can trace the answer to its 1997 merger with rival aircraft manufacturer McDonnell Douglas. That changed Boeing’s culture, and for the worse.

Boeing was known for its strong emphasis on engineering and quality control. It was part of the company’s ethos.

McDonnell Douglas, on the other hand, placed special emphasis on cost cutting and financial innovations to improve its bottom line. It’s not that it completely neglected quality control or that it didn’t care about safety. Obviously, airplane manufacturers can’t afford to disregard them.

It’s just that it placed relatively greater emphasis on financial considerations than Boeing.

But after the merger, the McDonnell Douglas model began to encroach on Boeing’s traditional ethos. The engineering department was greatly reduced, for example, while the financial engineers went to work.

Starting in 2010, Boeing spent tens of billions on stock buybacks and other financial machinations to enhance its share price. At the same time, the company took on massive amounts of debt.

Boeing’s new CEO, Harry Stonecipher, even cited all this as a feature, not a bug. He was proud of it.

He said, “When people say I changed the culture of Boeing, that was the intent — so run like a business rather than a great engineering firm.”

What was the result? Safety issues that resulted in two crashes and the latest close call. As one Boeing engineer who worked on the 737 Max said in 2019:

This program was a much more intense pressure cooker than I’ve ever been in. The company was trying to avoid costs and trying to contain the level of change. They wanted the minimum change to simplify the training differences, minimum change to reduce costs and to get it done quickly.

The irony is that by attempting to cut costs, Boeing has suffered great costs.

Penny Wise, Pound Foolish

Legal liability will be enormous. Business losses will also be huge based on grounding the entire fleet, identifying the defects and repairing them on all of the existing planes as well as making assembly adjustments to any work in progress.

New safety protocols will have to be developed to make sure the problem does not reoccur, and pilots, crews and ground personnel will have to be retrained to look for future problems. The airlines will suffer losses from the groundings and will seek recourse from Boeing.

Boeing stock has fallen from $265 per share on Dec. 15 to $227 per share today (about a 15% decline in three weeks).

Has Boeing’s stock already taken its hit on this fiasco? The answer is no. The market price has adjusted somewhat but the investigations are ongoing, and the costs of responding are being grossly underestimated.

Markets can be partly efficient but are not highly efficient and sometimes get taken in by “all clear” narratives put out by Wall Street that are far from the truth.

This story has much longer to run, more negative facts will emerge, management changes are likely and the stock has much further to fall.

From Yahoo News

Boeing 737 Max 9 problems mount following Alaska and United Airlines incidents.

By Kate Murphy

On Monday, United Airlines said loose bolts and other "installation issues" were discovered on the door plugs of some of its fleet of Boeing 737 MAX 9 airplanes.

“Since we began preliminary inspections on Saturday, we have found instances that appear to relate to installation issues in the door plug – for example, bolts that needed additional tightening,” United said.

The mandated inspections come after the Federal Aviation Administration forced the grounding of Boeing 737 MAX 9 airplanes. Alaska Airlines and United are the only two U.S. airlines that use that particular model of the Boeing 737.

“Boeing 737-9 aircraft will remain grounded until operators complete enhanced inspections, which include both left and right cabin door exit plugs, door components, and fasteners,” the FAA said in a statement on Monday, adding that any issues found from the inspections must be corrected before the planes can go back into service.

The pause, which resulted in the cancellation of hundreds of flights, affected about 171 planes globally, according to the Federal Aviation Administration.

On Friday, Alaska Airlines Flight 1282 had to make an emergency landing shortly after takeoff after a door plug blew out, leaving a large hole in the side of the plane as it climbed. The door plug has since been recovered and the National Transportation Safety Board launched an investigation over the weekend into what it called “an accident.”

Boeing’s shares tumbled as much as 9% as trading opened on Monday morning, the first business day since the incident.

No serious injuries

Incredibly, none of the 171 passengers and six crew members on board the flight from Portland, Ore., to Ontario, Calif., was injured.

The plane was climbing at about 16,000 feet when a panel on the plane’s fuselage was blown out.

No one was seated in 26A and 26B, where the door plug was located.

“We are very, very fortunate here that this didn’t end up in something more tragic.” NTSB Chair Jennifer Homendy said over the weekend.

The airplane had not reached cruising altitude and the seat belt sign remained on to discourage passengers and crew members from walking around the cabin.

“Just from talking with everyone who was part of the interviews, it was described as chaos, very loud, between the air and everything going on around them,” Homendy said at a Sunday news conference. “And it was very violent when the rapid decompression and the door [plug] was expelled out of the plane.”

Some passengers were treated for minor injuries on board.

What the investigation has uncovered so far

The lost door plug — which weighs 63 pounds and is 26 inches x 48 inches — was found on Sunday in the backyard of a Portland school teacher.

NTSB investigators will examine the plug to search for evidence about how it became dislodged and will compare it with the plane’s door plug on the other side.

The plane used for Flight 1282 had other issues. After a warning light signaling a pressurization issue went off during three previous flights, the plane had been restricted from longer routes to Hawaii that travel over open water. That restriction was put in place in the event the warning light reappeared so as to enable the plane to quickly return to an airport. The warning light had previously gone off on Dec. 7, 2023, and Jan. 3 and Jan. 4, just one day before the door plug flew off.

Alaska Airlines had ordered additional maintenance personnel to look at the pressurization warning light, Homendy added, but it wasn’t completed before Friday’s accident. Homendy acknowledged that the warning light issue may be unrelated.

An additional hurdle is that the investigators will not be able to rely on Flight 1282’s cockpit data recorder.

“The cockpit voice recorder was completely overwritten ... at two hours it re-records over it so we have nothing from the CVR [cockpit voice recorder],” Homendy told reporters, adding that it is “critical” to increase that recording time to 25 hours, the standard Europe and many other countries currently have in place.

While the Federal Aviation Administration has proposed a new rule to put that increase in place, it would only apply to newer flights. So the Alaska Airlines flight would not have qualified, Homendy said.

Two cellphones that appeared to belong to passengers aboard Flight 1282 were later recovered. One was found in a yard, and the other on the side of a road.

What’s next

In its investigation, the NTSB is expected to work with officials from Alaska Airlines, Boeing, the FAA and groups representing pilots and flight attendants.

“While we await the airworthiness directive inspection criteria from the FAA and Boeing, our maintenance teams are prepared and ready to perform the required inspections,” Alaska Airlines said in a statement. The airline said that cancellations will continue for the first half of the week and that passengers should check alaskaair.com for updates.

United Airlines also issued a statement on X and said they are working with customers affected to find them “alternative travel options” and advised them to check for updates at united.com or on the United app for the latest.

Meanwhile, Boeing CEO Dave Calhoun sent a companywide memo saying, in part, “When serious accidents like this occur, it is critical for us to work transparently with our customers and regulators to understand and address the causes of the event, and to ensure they don’t happen again. This is and must be the focus of our team right now.”

Calhoun plans to hold an all-employee safety meeting on Tuesday at the 737 factory in Renton, Wash.

From Zero Hedge

Fake Jet Engine Parts Supplied To Repair Shops For Older Airbus And Boeing Planes

By Tyler Durden

European aviation authorities have flagged a London-based firm for supplying "unapproved parts" for jet engines on older Airbus SE A320s and Boeing Co. 737s. 

"Numerous Authorised Release Certificates for parts supplied via AOG Technics have been forged," the European Union Aviation Safety Agency wrote in a statement to Bloomberg. 

London-based AOG Technics sold CFM56 jet engine parts to third-party repair shops servicing older A320s and 737s. EASA said the parts had certificates the manufacturer could not authenticate or confirm "they were not the originator of the part." 

"Manufacturers and regulators sounded the alarm weeks ago, triggering a global scramble to trace parts supplied by AOG Technics and identify affected aircraft," Bloomberg said. 

EASA said the parts with "falsified Authorized Release Certificate" were for CFM56 engines installed on older narrow-body planes. The regulator has told airlines to quarantine parts that potentially could have fake documentation. 

"The documentation of parts is a very critical issue," said Klaus Mueller, a senior adviser at AeroDynamic Advisory and a former senior executive at MTU Aero Engines AG and Deutsche Lufthansa AG's maintenance arm.

Mueller said, "The industry is taking this topic very, very seriously."

This development is a significant headache for European airlines because how many parts with fake documentation AOG Technics flooded airlines with is still being determined. 

Bloomberg said CFM International, the GE-Safran manufacturing venture of the engine, has alerted customers and shops about the fake certification documents and unapproved parts for the CFM56s. 

EASA said if a part has falsified documentation, "then it is recommended that the part be replaced with an approved part." 

Yet more headaches for airlines operating older A320s and 737s because finding fake parts on their aircraft will take time. It also comes as aircraft parts are in short supply. 

From Sputnik International

Hundreds of US Airline Pilots Suspected of Being Unfit to Fly

MOSCOW (Sputnik) - About 600 US pilots licensed to operate passenger flights are under investigation for lying about their medical records, US press reported Sunday, citing officials and internal records.

The Federal Aviation Administration (FAA) has been looking into 4,800 former military veterans turned airline and commercial pilots who might have submitted "incorrect or false information" as part of their medical applications, FAA spokesman Matthew Lehner admitted in a comment to the daily.

The pilots were red-flagged after investigators at the Department of Veterans Affairs cross-checked federal databases to discover aviators who were receiving veteran benefits for mental health disorders and other serious conditions, while hiding their true medical history from the FAA in order to continue flying.

While the FAA relies on screening to identify safety risks, the tests are often cursory and pilots are expected to self-report conditions that can otherwise be difficult to detect, such as depression or post-traumatic stress, The Washington Post cited physicians who conduct the exams as saying.

Officials told the newspaper they suspected many of the pilots under investigation of being either too sick to fly or defrauding taxpayers by exaggerating their disabilities to claim bigger benefits. The FAA disbursed $3.6 million starting last year to run additional tests on thousands of pilots deemed "potential risks."

From Zero Hedge

The Most Flown Private Jet In The US Is...

By Tyler Durden

In a rapid shift in private aviation among millionaires, cent-millionaires, and billionaires, Textron Inc.'s Cessna Citation, the most popular and most flown private jet in the US, which held that record for 15 years, has just been dethroned. 

Bloomberg reports new monthly flight data from the Federal Aviation Administration shows Brazil's Embraer Phenom 300, a medium-sized jet that seats around nine passengers, had 360,000 takeoffs and landings at US airports in the 12 months through August, 1,200 more than the Citation Excel family of jets. 

Brian Foley, a private aviation consultant, said the biggest reason behind the surge in popularity of the Phenom 300 is fuel efficiency, which burns one-third less than the Citation Excel. He said cheaper fuel costs offset the Phenom 300's smaller cabin space.

For some context, at cruising speed, the two Pratt & Whitney turbofans of the Citation Excel burn around 225 gallons per hour of Jet A fuel. 

Meanwhile, the Phenom 300 is around 158 gallons of Jet A fuel per hour. 

Even though Phenom 300s are being flown more, Cessna still dominates private jet deliveries. 

Textron told Bloomberg, "One of every three business jets worldwide is a Cessna Citation, and product upgrades like these continue to give customers new reasons to choose us for our proven performance, leading technology and unmatched cabin experience." 

Despite the 'climate change' cheerleading, private jet demand soared to new heights in recent years, though mounting macro uncertainty and the highest interest rates in two decades led to a cooling in private jet flights earlier this year.

From Statista

The World’s Ten Busiest Airports - By Anna Fleck

Hartsfield-Jackson Atlanta International Airport, U.S., was the world's busiest airport in 2022, with an annual footfall of some 93.7 million passengers. The figure is 24 percent higher than in 2021, but 15 percent lower than in 2019, the year before the pandemic. It is followed by Dallas-Fort Worth Airport, with 73.4 million travelers, and Denver Airport, with 69.3 million, according to data released by Airports Council International (ACI).

After 22 years leading the charge as the number one airport for passenger volume, Atlanta's airport was pushed to second place in 2020 by Canton Baiyun International Airport, China. However, the Chinese airport fell to eighth place a year later and the U.S. airport once again topped the list.

As the following infographic shows, five of the top ten airports with the highest passenger traffic last year were in the United States. ACI highlights that all ten, representing 10 percent of global traffic, have a significant share of domestic traffic - the segment that has led the global recovery.

The total number of passengers worldwide in 2022 was estimated to hit nearly 7 billion, representing an increase of nearly 54 percent over 2021.

From Zero Hedge

Air travel demand soared back to pre-Covid times during the Fourth of July holiday weekend. But with rising demand for air travel comes persistent flight delays and cancellations due to a pilot shortage. Some of the reasons for a pilot shortage have been a surge in early retirements during the pandemic, a mandatory retirement age of 65, a shrinking pool of potential pilots from the military, and a challenging value proposition for civilians to pursue a career as a pilot. 

We have told readers there's "no quick fix" to the severe pilot shortage. Airlines like American Airlines have seen flight disruptions this summer due to a lack of pilots. 

Current figures from the Federal Aviation Administration show the aviation industry is short 32,000 commercial pilots, mechanics, and air traffic controllers -- and the gap continues to expand by the year.

Transportation Secretary Pete Buttigieg told CBS News his office is investigating several airlines that book "unrealistic" scheduling by selling seats ahead of scheduling personnel to fly planes.  

"If you look at the delays, for example, that America experienced through last year in the summer 2022, a lot of that was driven by these companies not having the staff that they needed," Buttigieg said.

"This is not something that's going to be worked out overnight. It took years to get this way," he warned.

Wichita State University emeritus associate professor Dean Headley said, "The pilot shortage won't be resolved until 2032 or something like that." 

Headley said airlines can train 1,500 to 1,800 pilots a year but noted with a deficit of 17,000 pilots, "we can't catch up that quick." 

The current pilot shortage has forced commercial airlines to "cut back flights to smaller regional airports. So, people [who] are not at a major airport will find that their flight schedules have been reduced simply because they don't have enough people to put in an airplane to fly it somewhere," Headley explained

Besides a pilot shortage, the Office of Inspector General for the Department of Transportation revealed in early July there was also a severe shortage of air-traffic controllers. And just like pilots, it takes years to train air-traffic controllers. 

One airline lobbying group has asked Congress to allow just one pilot in the cockpit to alleviate the shortage. 

The shortages in pilots and air-traffic controllers won't be resolved anytime soon. No longer can airlines blame the "weather." 

From FlightGlobal

US House committee approves bill to hike pilot retirement age to 67

By Jon Hemmerdinger

A US lawmaking committee has approved a measure that would increase the USA’s mandatory airline-pilot retirement age, spurring criticism from pilot unions and earning praise from regional airlines.

The US House of Representatives’ transportation committee on 14 June approved the change, which would bump up the mandated retirement age of airline pilots in the USA from 65 to 67, according to reports.

Whether the measure, which passed by a narrow margin, will ultimately become law remains unclear.

It is part of a broader House bill to fund the Federal Aviation Administration after the agency’s current funding expires in October. The full US House is expected to vote on that broader bill in July, the committee says.

Meanwhile, a US Senate committee is expected today to vote on its own version of the funding bill. The chambers must then negotiate to finalise a single law.

But increasing the retirement age has strong support from the Regional Airline Association, a group whose members say they have been particularly hurt by an industry-wide pilot shortage.

A two-year bump in the required retirement age “will have an immediate, positive effect for small community air service”, the RAA says.

“Raising the pilot retirement age is the one solution that will have a near-immediate effect on the pilot shortage, allowing time for more long-term solutions to mature,” says the RAA. “It’s also the right thing to do for pilots who are today being pushed out of flight decks while they still have much to offer.”

US regional airlines have said too few pilots have forced them to ground hundreds of regional aircraft and cut air service to smaller communities. In the USA, airlines have about 490 regional jets (including Bombardier CRJs and Embraer E-Jets) in storage, and 1,340 in service, according to Cirium fleets data.

Airlines for America, the trade group representing large US airlines, declines to comment.

But US pilot unions are raising alarm. The unions have also denied the existence of a pilot shortage, saying airline mismanagement and low pay are keeping carriers from filling their ranks.

In a 14 June letter to lawmakers, Air Line Pilots Association (ALPA) president Jason Ambrosi calls the retirement-age change “anti-union” and “politically driven”. ALPA says the measure will worsen a pilot-training backlog, put the USA out of step with international standards and erode aviation safety.

“There is an increased risk of cardiovascular issues, diabetes and cognitive decline with increasing age. It is imprudent for Congress to impose its own view on safety,” Ambrosi says.

The union, which represents pilots at numerous airlines, notes that existing ICAO standards call for retirements at age 65.

It says US pilots older than 65 years would be unable to fly some international flights, which are typically operated by widebody aircraft. As a result, such pilots would likely need to be retrained to fly narrowbody jets, which would “displace junior pilots” and create “a cascading training backlog”.

The Allied Pilot Association (APA), which represents pilots at American Airlines, likewise opposes increasing the required pilot retirement age.

“Safety considerations drove the establishment of the current international standard of age 65 mandatory retirement, and raising the pilot retirement age would introduce additional risk into commercial aviation,” says APA president Ed Sicher.

From Bloomberg

By Danny Lee

China Jet to Rival Airbus, Boeing Makes First Commercial Flight

A made-in-China aircraft to rival Boeing Co. and Airbus SE underwent its maiden commercial flight on Sunday, almost six months after being delivered to China Eastern Airlines Corp.

Flight MU9191 took off from Shanghai at 10:32 a.m. local time, China Eastern said on its Weibo account. The plane carried 128 passengers and landed safely at Beijing, People’s Daily said in a tweet.

The commercial debut marks a long journey for Commercial Aircraft Corp of China Ltd., or Comac as it is better known. The manufacturer first starting developing the narrow-body airliner in 2008 and production began in late 2011. But it wasn’t until September 2022 when the C919 received official certification to fly, marking the long end of flight testing and paving the way for Comac to start deliveries.

Read more: China Delivers First Homegrown Plane to Take On Boeing, Airbus

China Eastern is the C919’s launch customer, with an order for five. After the first jet’s delivery in December, the aircraft undertook a period of flight activities almost daily in order to satisfy a requirement for 100 hours of proving flights. But from Feb. 7 to May 17, China Eastern’s C919 hadn’t flown regularly for 104 days, FlightRadar24 data show.

China is angling to disrupt the dominance of Boeing and Airbus in commercial jetliner manufacturing. Both Airbus’s A320neo family and Boeing’s 737 Max jets have a full order book through to the end of the decade, meaning any carrier wanting narrow-body jets sooner may need to find an alternative.

Read more: China’s Rival Aircraft to Boeing, Airbus Jets Wins Certification

Comac has garnered more than 1,000 orders for the C919, though the majority aren’t confirmed and many are from Chinese aircraft lessors yet to place the jet with an airline.

Doubts remain over Comac’s ability to fulfill those orders. The Chinese manufacturer is also reliant upon foreign suppliers including General Electric Co., Honeywell International Inc. and, for the engines, CFM International Inc. — a venture between GE and France’s Safran SA.

Shanghai-based China Eastern, one of the country’s biggest carriers, said on its earnings call last week that it plans to bring all five C919s into its fleet in 2023.

The C919 remains certified only to fly within China, however, while European certification remains ongoing. Each C919 costs around $99 million, before customary discounts to airlines.

From Mark

This weekend..... if all goes well, Rotate.Aero will be upgrading to Joomla 4.

Joomla is a CMS or Content Management System that is similar to Word Press.

Both have site interaction which utilizes databases for storage.

Upgrading to Joomla 4 will be quite a task, so for the next couple of days, no Forum or Blog entries will be made.

Thanks

From Zero Hedge

By Tyler Durden

The Federal Aviation Administration (FAA) is assembling a team of experts to review a series of near-miss incidents and mishaps that could have sparked air disasters.

On Tuesday, FAA Administrator Billy Nolen penned a "call to action" memo that specified a team of safety experts will "examine the US aerospace system's structure, culture, processes, systems, and integration of safety efforts."

"We are experiencing the safest period in aviation history, but we cannot take this for granted," Nolen wrote. He added, "Recent events remind us that we must not become complacent."

His memo comes after a series of alarming incidents, including a United Airlines Boeing 777-200 that came within 800 feet of impacting the Pacific Ocean off Maui on Dec. 18, a computer 'glitch' that grounded all US flights on Jan. 11, a FedEx cargo jet that almost landed on a Southwest Airlines commercial plane at Austin-Bergstrom International Airport in Texas on Feb. 4, and a close call at York's John F. Kennedy International Airport on Jan. 16 when American Airlines plane crossed a runway when a Delta Air Lines flight was taking off.

Link to full memo: https://cms.zerohedge.com/s3/files/inline-images/faa_0.jpg?itok=PvXgRP6c

All this is happening as passengers had just overcome their fear of flying on Boeing 737 Max planes. These near misses and computer problems are very concerning.

The US has not had a major fatal air disaster since February 2009.

From Steve Kirsch Newsletter

Pilots are dying at Southwest Airlines at over 6X the normal rate after the COVID vaccines rolled out.

And disabilities are up 10X normal. I thought the vaccines were supposed to reduce death not increase it! I just asked the FAA for their comment, but no answer.

Please read more at link below:

https://stevekirsch.substack.com/p/pilots-are-dying-at-southwest-airlines

By Steve Kirsch

The FAA has very quietly tacitly admitted that the EKGs of pilots are no longer normal. We should be concerned. Very concerned.

Long and informed article which is linked here. Please take the time to read it.

From Zero Hedge

Airlines, in their infinite mission to balance costs, profits, and keeping planes full of passengers alive between two points, might be going a little too far in their latest attempt to cut back.

According to CBS News, the industry has been quietly lobbing Congress to allow them to use just one pilot in the cockpit instead of two, as is currently required by part 121 of the Federal Aviation Regulations.

The airlines claim it would quickly solve staffing issues caused by the ongoing pilot shortage, and say that technology has improved to the point where it would be perfectly safe to do so.

There's language in a new bill now introduced in Congress — the Federal Aviation Administration reauthorization bill — asking the Federal Aviation Administration to reconsider part 121 and to allow the use of a single pilot operation, first in cargo aircraft. 

Not surprisingly, airline pilots are loudly protesting this idea, claiming that it would diminish a safety discipline and culture that has been responsible for the safest 25 years in commercial aviation in the history of aviation. Pilots unions argue it's all about the airlines saving money and could compromise safety. -CBS News

 Unions have pointed to several examples of emergency situations in which two pilots were necessary - such as the "Miracle on the Hudson," when pilots Chesley "Sully" Sullenberger and Jeffrey Skiles worked together to glide a US Airways flight down to New York's Hudson river after it hit a flock of Canadian geese on takeoff, saving all 150 passengers and crew.

Meanwhile, 10 days ago an American Eagle flight from Chicago to Columbus had an emergency when one of the two pilots became incapacitated. The co-pilot was able to gain control of the plane, declare an emergency, and safely land back in O'Hare.

The pilot later died at the hospital. 

From Airline Ratings

LAST 747 TO BE DELIVERED IN OCTOBER TO ATLAS AIR

By Geoffrey Thomas

The last Boeing 747 will be delivered in October to Atlas Air bringing the curtain down on the production of the world’s most iconic commercial jet.

The last 747, a -8F is the 1574th built of a production run that has spanned 55 years.

Atlas Air, the world’s largest operator of the 747 has 57 of the giant jets in both freighter (52) and passenger configurations (5).

It is just over 50 years since the 747 entered service with Pan American on a flight from New York to London.

But the first passenger service got off to a rocky start with engine problems and was delayed by six hours and a substitute 747 was used.

The birth of the 747 was also rocky and was to bring dark clouds to the leaders in commercial aviation at the time and almost bankrupted all three.

Ironically, the 747 wasn’t supposed to carry passengers for very many years as the world looked to supersonic travel with the Boeing SST and the Concorde.

Giving life to the aircraft that changed the world was a challenge that brought the world’s largest aerospace company, Boeing, the then biggest engine builder Pratt, and Whitney and the legendary Pan Am to their knees.....

Please visit Airline Ratings for the complete article.

From Aerotime.Aero

FedEx Asks FAA Permission To Add Missile-Defense System To A321 Freighter.

By Gabriele Petrauskaite

American cargo airline FedEx is seeking permission from the Federal Aviation Administration (FAA) to install a laser-based missile-defense system on its cargo aircraft.

In the filing dated January 7, 2022, the Department of Transportation of the Federal Aviation Administration confirmed that FedEx had asked permission to modify the Airbus A321-200 aircraft by installing the system.

In the document, the FAA stated that FedEx applied for a specific type certificate, which would allow the company to modify the commercial transport-category plane in October 2019. At the time, FedEx asked permission to install “a system that emits infrared laser energy outside the aircraft,” the FAA filing reads.

There have been a number of incidents in recent years where civilian planes have been targeted by man-portable air defense systems. As a result, laser-based missile defense systems began to be installed on aircraft in order to protect them against heat-seeking missiles.

However, the FAA shared safety concerns about the implementation of such a system.

“The FedEx missile-defense system directs infrared laser energy toward an incoming missile, to interrupt the missile’s tracking of the aircraft’s heat. Infrared laser energy can pose a hazard to persons on the aircraft, on the ground, and on other aircraft. The risk is heightened because infrared light is invisible to the human eye. Human exposure to infrared laser energy can result in eye and skin damage, and affect a flight crew’s ability to control the aircraft,” the American aviation body explained.

It continued: “Infrared laser energy also can affect other aircraft, whether airborne or on the ground, and property, such as fuel trucks and airport equipment, in a manner that adversely affects aviation safety.”

The FAA, which is the largest transportation agency in the US, also outlined that it could approve design features on the Airbus A321-200 jet and allow FedEx to install the modifications if the system is equipped with “means that prevent the inadvertent activation of the system on the ground”. The company will also need to ensure that the operating the system during the flight does not pose a risk to other aircraft or people.

In the meantime, the FAA is also required to place the laser system safety-related information at the location of the laser installation as well as to provide necessary instructions and warn over hazards associated with exposure to laser radiation.

“The airplane flight manual supplement (AFMS) must describe the intended functions of the installed laser systems, to include identifying the intended operations and phases of flight. The AFMS must state: CAUTION: The operation of the installed laser system could pose a significant risk of injury to others while in proximity to other aircraft, airports, and populated areas,” the FAA determined.

However, FedEx does not currently operate any Airbus A321-200 jets. The recent FAA filing could imply that the airline is planning to purchase aircraft of this type.

From The Associated Press

DALLAS (AP) — A former Boeing pilot was indicted Thursday by a federal grand jury on charges of deceiving safety regulators about the 737 Max jetliner, which was later involved in two deadly crashes.

The indictment charges Mark A. Forkner with giving the Federal Aviation Administration false and incomplete information about an automated flight-control system that played a role in the crashes, which killed 346 people.

Prosecutors said that because of Forkner's alleged deception, the system was not mentioned in pilot manuals or training materials.

An attorney for Forkner did not immediately respond for comment. Boeing and the FAA declined to comment.

Forkner, 49, was charged with two counts of fraud involving aircraft parts in interstate commerce and four counts of wire fraud. Federal prosecutors said he is expected to make his first appearance in court on Friday in Fort Worth, Texas. If convicted on all counts, he could face a sentence of up to 100 years in prison.

The indictment charges that he hid information about a flight-control system that activated erroneously and pushed down the noses of Max jets that crashed in 2018 in Indonesia, and 2019 in Ethiopia. The pilots tried unsuccessfully to regain control, but both planes went into nosedives minutes after taking off.

Forkner was Boeing's chief technical pilot on the Max program. Prosecutors said that Forkner learned about an important change to the Maneuvering Characteristics Augmentation System flight-control system in 2016, but withheld the information from the FAA. That led the agency to delete reference to MCAS from a technical report and, in turn, it didn’t appear in pilot manuals. Most pilots didn’t know about MCAS until after the first crash.

Prosecutors suggested that Forkner downplayed the power of the system to avoid a requirement that pilots undergo extensive and expensive retraining, which would increase training costs for airlines. Congressional investigators suggested additional training would have added $1 million to the price of each plane.

“In an attempt to save Boeing money, Forkner allegedly withheld critical information from regulators,” said Chad Meacham, acting U.S. attorney for the northern district of Texas. “His callous choice to mislead the FAA hampered the agency’s ability to protect the flying public and left pilots in the lurch, lacking information about certain 737 MAX flight controls."

Forkner told another Boeing employee in 2016 that MCAS was “egregious” and “running rampant” when he tested it in a flight simulator, but he didn't tell that to the FAA.

“So I basically lied to the regulators (unknowingly),” Forkner wrote in a message that became public in 2019.

Forkner, who lives in a Fort Worth suburb, joined Southwest Airlines after leaving Boeing, but left the airline about a year ago.

Chicago-based Boeing agreed to a $2.5 billion settlement to end a Justice Department investigation into the company's actions. The government agreed to drop a criminal charge of conspiracy against Boeing after three years if the company carries out terms of the January 2020 settlement. The settlement included a $243.6 million fine, nearly $1.8 billion for airlines that bought the plane and $500 million for a fund to compensate families of the passengers who were killed.

Dozens of families of passengers are suing Boeing in federal court in Chicago.

Crash investigations highlighted the role of MCAS but also pointed to mistakes by the airlines and pilots. Max jets were grounded worldwide for more than a year and a half. The FAA approved the plane for flying again late last year after Boeing made changes to MCAS.

From Zero Hedge

FAA Launches New Safety Probe Into Boeing As Employees Complain About Pressure To Cut Corners

By Tyler Durden

The FAA isn't done punishing Boeing for the oversights (later revealed to be systemic) that led to the devastating crashes of two Boeing 737 MAX 8 jets, killing roughly 350 passengers and crew.

According to a WSJ report, the FAA is launching a "broad review of how Boeing employees handle safety matters" after several company engineers told the agency they had faced "undue pressure" to skirt over them.

The FAA survey, conducted this year, revealed that 35% of a small sample of certain Boeing employees reported problems including pressure and hurdles to transparency, according to an Aug. 19 agency letter to Boeing that was obtained by WSJ. Some surveyed employees, who are part of a group empowered by the agency to assist with its work, said they encountered difficulties in being transparent with regulators.

As WSJ explained, aviation regulators have long relied on engineers to act on the agency's behalf when performing certain tasks, especially when it comes to signing off on safety assessments. Any lapses in Boeing's safety overviews should have been anonymously reported to the agency. Yet, as we learned more than 18 months ago, engineers working on the 737 MAX 8 resented their managers, and privately complained to one another about the shortcomings of their oversight - without ever saying a word to the FAA.

According to the letter seen by WSJ, the survey indicated that some 35% of the small sample of Boeing employees surveyed complained to the agency that their work environment "does not support independence" of those who are empowered to act on the agency’s behalf, according to the letter, which was signed by Ian Won, acting manager of the FAA’s Boeing oversight office in the Seattle area.

In the aftermath of the 737 MAX 8 crashes (which famously led to the plane being grounded for more than a year) WSJ's reporting revealed that the FAA had effectively let Boeing regulate itself following an unprecedented incidence of "regulatory capture."

Yet, now we're learning that the "problems cited by Boeing employees in the survey 'indicate the environment does not support independence' of those who are empowered to act on the agency’s behalf, according to the letter, which was signed by Ian Won, acting manager of the FAA’s Boeing oversight office in the Seattle area."

In the survey, the employees complained about pressure that sometimes came from management, and sometimes came from fellow engineers.

The two-page letter came with excerpts from interviews with Boeing employees. The employees, who were quoted anonymously, told the FAA that the pressure they felt wasn’t necessarily overt and could also come from the engineering ranks pushing to stay on schedule.

"I feel undue pressure but I stand up to it," one Boeing employee was quoted by the letter as saying.

The FAA letter said that "Boeing’s company culture appears to hamper" its FAA-empowered employees "from communicating openly with the FAA." The letter cited one Boeing employee who told the agency: "I am very aware that my bringing up issues is not appreciated."

A Boeing spokesperson said the company "takes these matters with the utmost seriousness" and is working to bolster the independence of its employees who work on the FAA's behalf.

"We have consistently reinforced with our team that delegated authority is a privilege and that we must work every day to be trusted with the responsibility," she said. Boeing has directed that its FAA delegates "must be accorded the same respect and deference that is shown to our regulator."

Unfortunately, the problems cited by the August letter are all too familiar: they're the same issues that were identified by an internal company report that was obtained by Congress during its investigation into the two deadly crashes, which took place in October 2018 and March 2019.

From The Seattle Times

By Charlotte Ryan
Bloomberg

Airbus said its decades-old competition with Boeing is back on in earnest as the removal of coronavirus curbs revives international travel and unleashes a spate of jetliner order contests.

The European firm said Thursday that the traditionally fierce rivalry has resumed as Boeing emerges from a two-year slump triggered by the grounding of its best-selling 737 Max. At the same time, it signaled a new challenge with the launch of a freighter designed to erode the U.S. group’s lead in air cargo.

“We see our competitor very willing to win campaigns, to ramp up production again,” CEO Guillaume Faury told Bloomberg Television. “At Airbus we enjoy that competition and we always try to bring the right products and services to our customers.”

Airbus lifted its guidance for full-year earnings, cash flow and aircraft deliveries, a day after Boeing posted its first profit in almost two years. The figures confirm a strengthening aerospace recovery that’s set to gather further momentum with sales campaigns at Air France-KLM’s Dutch arm and U.K. discounter Jet2, both of them usually loyal Boeing customers.

The new freighter, a version of the A350 passenger jet, is expected to enter service in 2025, Faury said on a media call, after the board granted approval for the project. The plane will be based mostly on the largest -1000 variant, and will have a payload of more than 90 metric tons.

The company gets “closer every day” to lining up launch customers, the CEO said. Boeing is meanwhile also eyeing a freighter launch, with CEO Dave Calhoun saying Wednesday his company hopes to launch a cargo version of the coming 777X “in the relatively near term.”

The improving outlook comes amid a travel reopening that’s gathering pace in some key markets.

Domestic Chinese and U.S. demand has led the comeback, the European Union has removed barriers to internal flights, and the U.K. this week announced that it will allow American and EU visitors who have been fully vaccinated to enter without self-isolating.

While other holdouts including Canada and Singapore are easing restrictions, long-distance routes that join continents are still restricted, holding back demand for bigger, more expensive wide-body aircraft.

Airbus expects to hand over 600 jets this year, up from as few as 566, helping to lift adjusted operating profit to 4 billion euros ($4.7 billion) — double the previous target — and generating 2.7 billion euros in free cash flow.

Boeing is also emerging strongly from the pandemic after it beat earnings and cash-burn estimates and Calhoun halted job cuts well short of the 20% originally planned.

Airbus announced a deal from German airline Condor for seven A330neos while detailing first-half earnings that beat estimates. Boeing last month scooped the lion’s share of a mammoth 270-jet order from United Airlines.

The KLM requirement for 160 aircraft will be a key battleground since sister carrier Air France is one of Airbus’s biggest customers.

Faury said Thursday that the company is having “very dynamic discussions” on potential orders and sees activity picking up toward the end of the year.

Still, both plane-makers will be dependent on key equipment manufacturers keeping pace with ramp-up plans, which at Airbus could reach 64 narrow-body jets a month by early 2023 and 75 by 2025.

Engine-maker Safran said Wednesday it expects a “small step up” in deliveries this year and questioned whether demand will support build rates above 60 a month.

From ZubuBrothers

Since returning the MAX 8 to service early this year, it seems barely a week has gone by without some new issue involving Boeing.

On Friday, Bloomberg reported that Boeing had notified airlines that it has discovered a new electrical issue with "a specific group" of Boeing 737 MAX jets.

Boeing has recommended 16 customers address a potential electrical issue in a specific group of 737 MAX jets before further operations.

The company recommended that its customers inspect the jets and verify that "a sufficient ground path exists for a component of te electrical power system."

The company is working with the FAA to address the issue and inform customers of specific tail numbers that will give them more direction to identify the problematic jets and fix the issue."

Boeing shares showed a slight reaction on the news, declining slightly on the news.

Which is puzzling because this isn't the first issue Boeing has had with its jets since returning the 737 MAX 8 to service.

From Zero Hedge

By Tyler Durden

On Thursday evening, the Federal Aviation Administration (FAA) said Boeing must inspect cabin pressure switches for thousands of its 737 jets worldwide that could lead to pilots becoming incapacitated, according to Reuters. 

FAA's directive requires Boeing to conduct tests on all 737 series aircraft. There are more than 9,300 worldwide and 2,500 in the US. Inspecting cabin pressure switches will further ensure there's enough air to breathe as planes climb altitude. 

The directive comes as three 737, all different series, last September, failed pressure switch tests. Defective switches could result in cabin altitude warning systems not activating above 10,000 feet, which would pose a safety risk to pilots and passengers. Dangerously low oxygen levels result in asphyxiation, then death. 

The failure rate of the switches is "much higher than initially estimated" and poses a safety risk, the FAA said. 

On all 737 series, tests must be completed within 2,000 flight hours since the last test of the switch. 

The FAA is concerned the switches have a "higher than initially estimated" failure risk and poses safety issues. 

On a worldwide basis, the FAA has no legal authority over airline carriers in different countries to enforce checks of the switches. 

The words of the FAA are not encouraging for travelers who flood airports this summer after being cooped up in their homes during 2020 virus lockdowns. 

The directive covers all versions of the 737, even the MAX, which has just recently been cleared to return to the skies in much of the world after being grounded for two years. In April, a new electrical issue developed on certain MAX jets. 

Boeing shares premarket are slightly higher, though we should point out that the daily chart has yet to make a new high since March. 

... and it has only been three days since Boeing revealed a new issue with the 787 Dreamliner widebody jet. 

Boeing's quality control of its passenger jets has been lacking over for the last couple of years as the company focused on stock buybacks. 

From Zero Hedge

If it's not one Boeing jet malfunctioning, it's another.

With Boeing facing an uphill climb in restoring the public's confidence in its crash-prone 737MAX, the aerospace giant is facing fresh troubles, this time involving the updated version of the long-haul 777X jet which is facing additional testing because of what U.S. regulators called a serious test-flight incident and multiple other issues with software and inadequate data.

In a sternly worded letter dated May 13, which was reviewed by The Seattle Times, the FAA warned Boeing it may have to increase the number of test flights planned and that certification realistically is now more than two years out, probably in late 2023.

According to the report, the FAA cited a long list of concerns, including a serious flight control incident during a test flight on Dec. 8, 2020, when the plane experienced an "uncommanded pitch event" meaning the nose of the aircraft pitched abruptly up or down without input from the pilots. During the incident, flight-control software triggered the plane to move without pilots’ input, similar to the malfunction responsible for the two 737MAX crashes.

Boeing has yet to satisfy the FAA that it has fully understood and corrected what went wrong that day.

An FAA official said the drag on 777X certification is now “the subject of a lot of attention” at high levels both within the agency and at Boeing.

“The FAA anticipates a significant impact to the level of regression testing, change impact analysis, and the potential to increase the number of certification flight tests that will need to take place,” the letter said according to Bloomberg. It was written by Ian Won, the acting head of FAA’s division overseeing Boeing.

The FAA said in the letter it now expected the certification wouldn’t occur until mid to late 2023 and the work would take “additional resources” that could hamper other projects with the company. While the FAA doesn’t set the timing of certification work, relying on companies for that, the letter suggests the program could face delays.

The latest delay will push the jet’s entry into commercial service into early 2024, four years later than originally planned.

Separately, the FAA also issued a statement Sunday saying it “will not approve any aircraft unless it meets our safety and certification standards.”

“Boeing remains fully focused on safety as our highest priority throughout 777X development,” a spokesperson at the U.S. planemaker said in a statement in response to the letter. “We are working through a rigorous development process to ensure we meet all applicable requirements.”

The harshly-worded letter by the FAA is the latest in what has been a deteriorating relationship between the giant planemaker and its U.S. regulator prompted by issues that arose during the grounding of Boeing’s 737 Max after two fatal accidents. The FAA had previously begun using its own inspectors to approve newly built single-aisle planes and has taken multiple steps to increase oversight of the company.

The FAA highlighted several concerns on the 777X, including a flight-control incident during a test flight on Dec. 8, 2020, when the plane experienced an “uncommanded pitch event.” That meant the nose of the aircraft rose or fell as a result of the control system.

A similar issue triggered by a malfunction on the 737 Max pushed down that jet’s nose repeatedly during the two crashes that killed 346 people, prompting a sweeping review of how pilots interact with increasingly computerized flight-control systems. The Max was grounded for 18 months while it was redesigned.

Bloomberg adds that the agency also told Boeing that a critical avionics system proposed for the airplane doesn’t meet requirements and expressed concern about proposed modifications involving late changes to both software and hardware in the electronics of the jet’s flight controls.

Worse, in a hint of broader troubles for the 777X, the FAA said that European regulators are uneasy over parts of the plane’s design. “The European Union Aviation Safety Agency has not yet agreed on a way forward on the Model 777-9,” the FAA said in the letter. ​Which, of course, is understandable for a European regulator that would be delighted with pushing out its own competitor Airbus planes.

​Boeing announcement in January that it was postponing the 777X’s planned market entry to late 2023 was the latest in a string of delays for a jet originally slated to begin commercial service last year. Executives also disclosed that they were redesigning the jet’s actuator-control electronics at the behest of European regulators.

"That’s still the plan", Boeing’s Chief Executive Officer Dave Calhoun indicated in a June 3 presentation, weeks after the FAA letter.

“That airplane, we are still confident will be certified in the fourth quarter of 2023,” Calhoun told a virtual Bernstein conference. The planemaker reset its timeline based on the 20-month review of the 737 Max and “architectural preferences” of both the FAA and EASA, he said.

“So those are the important things with respect to how we do this,” Calhoun said. “We’ve given ourselves time to learn as we go through this.”

Emirates President Tim Clark has repeatedly slammed Boeing for delaying the 777X program and has raised concerns over the model’s performance in desert conditions. Bloomberg reported in February that Clark’s airline could swap as many as a third of its 115 commitments for the 777-9 to the smaller Boeing 787 Dreamliner.

From BBC

By Theo Leggett
Business correspondent, BBC News

Little more than six months after Boeing's 737 Max was cleared to fly again by US regulators, the aircraft finds itself under intense scrutiny once again.

According to Boeing and the FAA, the problem first became apparent during testing of a newly manufactured 737 Max 8, which had yet to be delivered to its owner. It was found that electrical power systems on the aircraft were not working correctly. 

From Zero Hedge

By Tyler Durden

Boeing's troubled 737 Max returned to US skies last month. American Airlines was the first domestic carrier to fly the Max and has since operated more than 200 flights. While other domestic and international carriers gear up for a much wider re-launch of the aircraft, a former senior manager at Boeing's 737 Max plant in Seattle has published a new report warning that the Max is "still not fixed." 

Ed Pierson, the report's author, retired from Boeing in August 2018 and worked at the Max factory in Renton, Washington, claims more investigations are needed into the aircraft's electrical system and production quality problems at the factory. 

Pierson alleges that the US and European regulators have primarily ignored factors that he points out in the report, which may have played a role in Lion Air flight JT610 and Ethiopian Airlines flight ET302 crashes that killed 346 people. He links both crashes back to conditions at the factory in Renton.

Pierson firmly believes Boeing's effort to redesign Max's flight control system, called MCAS software, ensures a single sensor failure would not happen in flight is not enough. 

"The paper underscores the likely role a chaotic and dangerously unstable production environment played in the accidents. Mr. Pierson also puts forth three other plausible accident scenarios not addressed in the accident investigations. The 14-page report includes a timeline and an analysis that ties the two 737 MAX airplane crashes together in ways not previously reported. Most importantly, Mr. Pierson's analysis raises serious doubts as to the safety of the 737 MAX. Alarmingly, the FAA's recertification fixes do not address the problems identified in the report," the report's abstract reads.

In late 2019, Pierson testified during a House Transportation Committee hearing on both Max crashes where he described the Renton factory as "chaotic" and "dysfunctional." 

With the planes returning to the air, he is worried that Boeing and regulators have overlooked many of the issues he pointed out. 

In the report, he believes the production defects of critical Max parts were defected when they entered service, adding that the aircraft's complex wiring systems may have contributed to the random deployment of the MCAS system in flight. 

Pierson said the MCAS sensor failures contributed to both crashes but asked why they were happening to new aircraft. 

All of this suggests, Pierson explained, "point back to where these airplanes were produced, the 737 factory".

Pierson's report was analyzed by famed pilot Chesley Sullenberger who said the "report is very disturbing, about manufacturing issues in the Boeing factories that go well beyond just the Max, and also affect… the previous version of the 737." 

"Like electricity, Boeing and the FAA have taken the path of least resistance throughout the entire design, development, certification, production, and now recertification of the 737 MAX," Pierson said in the report. 

"The design of the 737 MAX, MCAS software and the failure to provide vital information and training to pilots did not trigger these accidents. Neither did corporate decision making made years ago, unethical behavior, deceptive marketing, or a misguided leadership culture that prioritized profits over safety. Nor did deregulation, regulatory capture, or a completely broken aircraft certification process. In fact, all of these things contributed mightily to these tragedies. Unfortunately, every MAX airplane ever manufactured shares this same wretched history. The pilots are certainly not to blame. They did everything they could to save the lives of the people who trusted them. The triggering event for these crashes was a defective AOA Sensor part, and quite possibly, a malfunctioning electrical system stemming from a dangerously unstable production environment," he said." 

Pierson concludes: "We can either investigate these production problems and fix them, or we can wait for another disaster." 

737 MAX - Still Not Fixed by Zerohedge

From Zero Hedge

Not long after the head of the FDA took a test flight on the newly revamped Boeing 737 MAX 8, Europe's top travel regulator has surpised the aviation world by becoming the first major regulatory body to sign off on the 737 MAX 8 returning to the skies, roughly 18 months after the plane was grounded internationally after a second suspicious crash.

Even though an upgrade demanded by the agency won't be ready for up to two years, EASA - the European Aviation Safety Agency - has signed off on allowing the MAX to return to commercial flight before the end of the year. According to Patrick Ky, the executive director of the agency, the regulator is performing final document reviews ahead of a draft airworthiness directive that's expected to be issued next month. The directive will be followed by a 4-week public comment period. Boeing has said that plans to add an additional "synthetic" sensor to add redundancy will take 20 to 24 months. Though, to be sure, that "software-based" solution will be added to the larger Max 10 variant before it's 2022 debut.

"Our analysis is showing that this is safe, and the level of safety reached is high enough for us," Ky said in an interview. "What we discussed with Boeing is the fact that with the third sensor, we could reach even higher safety levels."

Though a sign off from the FAA would be the ultimate boon, after Boeing again booked zero new orders for the MAX in September, the European market is still one of Boeing's biggest.

The MAX 8 was grounded in March 2018, and since then, Congressional and criminal probes have uncovered clear evidence that Boeing cut corners during the development of the plane, putting "profits before people". In one now-infamous set of internal correspondence, engineers at the company openly mocked the 737 MAX 8's design.

Congress also found that the FAA outsourced so much of the approval process to Boeing itself, a dangerous example of regulatory capture that led to hundreds of deaths.

After shedding half of their value since the start of the year, Boeing shares were up more than 2% on the news during premarket trading. Given all the embarrassing details showing how deeply Boeing corrupted the FAA approval process, the public might not have been so trusting if the FAA had taken the lead. The fact that EASA is the first to step up and give Boeing the green light - despite the WTO dispute between European champion Airbus and its American rival - might make a difference when it comes to the all-important metric of consumer trust.

From Zero Hedge

By Tyler Durden

Boeing's decades-long ties to Washington state could soon be numbered. 

In a massive blow to Seattle, labor unions and the liberal run state of Washington, Boeing is moving its 787 Dreamliner production to South Carolina in an effort to cut costs, Bloomberg revealed on Thursday. 

It is a move that is raising questions about how long Boeing may remain at its massive plant in Everett, where it has produced planes since the 1960s. 

Dreamliner production is being consolidated as demand for Boeing's planes has dropped amidst the 737 MAX controversy and the ongoing pandemic which has decimated the travel industry. The easiest way for Boeing to cut costs is to move to non-union labor in South Carolina and trim its operations. 

It's also the latest move in Boeing bolstering operations in Republican-governed South Carolina. Aerospace analyst Richard Aboulafi noted that 747 production would end by 2022 and that “the overhead costs will be increasingly borne by the surviving planes, the 767 and 777X, which don’t have a lot of pricing power right now.”

Washington Governor Jay Inslee stopped figuring out new ways to raise taxes and defund the police long enough to issue a statement critical of Boeing, stating that the state would need to take a "hard look" at Boeing's tax treatment. He estimated 1,000 jobs could be at risk.

Meanwhile, Boeing has been in the midst of scrambling to shore up its financials after two fatal 737 MAX crashes and the subsequent grounding of its 737 MAX planes in the interim. Melius Research estimates Boeing could see $23.3 billion in cash burn this year as a result of those groundings, coupled with the Covid-19 pandemic. 

Boeing CFO Greg Smith said in July: “The goal is to improve cash-flow profile, restore our balance-sheet strength as quickly as possible. And these actions will help get us there.”

Governor Inslee said: "We have asked the Boeing Company multiple times what it needs to keep 787 production in Washington". Inslee also claimed the move would "signal an allegiance to short-term profits and Wall Street...”

From Zero Hedge

By Tyler Durden

On Monday, Airbus revealed three visual concepts for "zero-emission" commercial airliners powered by hydrogen, which could enter service by 2035. 

The planemaker's push for the world's first zero-emission commercial aircraft is part of a much larger ambition for emission-reducing airliners as non-governmental organizations, such as the OECD, are urging industries and countries to begin the transformation to a green economy  to power the recovery following the virus-pandemic downturn. 

Three carbon-free commercial aircraft were unveiled, including a turbofan design, turboprop design, and "blended-wing body" design. Airbus said it's "leading the way in the decarbonization of the entire aviation industry." 

"This is a historic moment for the commercial aviation sector as a whole, and we intend to play a leading role in the most important transition this industry has ever seen. The concepts we unveil today offer the world a glimpse of our ambition to drive a bold vision for the future of zero-emission flight," said Guillaume Faury, Airbus CEO. "I strongly believe that the use of hydrogen - both in synthetic fuels and as a primary power source for commercial aircraft - has the potential to significantly reduce aviation's climate impact."  

Turbofan Design 

A turbofan design (120-200 passengers) with a range of 2,000+ nautical miles, capable of operating transcontinentally and powered by a modified gas-turbine engine running on hydrogen, rather than jet fuel combustion. The liquid hydrogen will be stored and distributed via tanks located behind the rear pressure bulkhead. 

 

Turboprop Design

A turboprop design (up to 100 passengers) using a turboprop engine instead of a turbofan and also powered by hydrogen combustion in modified gas-turbine engines, which would be capable of traveling more than 1,000 nautical miles, making it a perfect option for short-haul trips.

 

"Blended-Wing Body" Design

A "blended-wing body" design (up to 200 passengers) concept in which the wings merge with the main body of the aircraft with a range similar to that of the turbofan concept. The exceptionally wide fuselage opens up multiple options for hydrogen storage and distribution, and for cabin layout. 

 

Faury continued: 

"These concepts will help us explore and mature the design and layout of the world's first climate-neutral, zero-emission commercial aircraft, which we aim to put into service by 2035. 

"The transition to hydrogen, as the primary power source for these concept planes, will require decisive action from the entire aviation ecosystem. Together with the support from government and industrial partners, we can rise to this challenge to scale-up renewable energy and hydrogen for the sustainable future of the aviation industry."

While it's no secret the airline industry is attempting to find a way to remedy its carbon footprint, challenges still persist for storing volatile liquid hydrogen during flight. Airbus has dismissed concerns that hydrogen is a risky substance and has called for new investments in energy infrastructure.

Global aviation accounted for about 2.4% of all emissions in 2018.

Paul Stein, chief technology officer for engine maker Rolls-Royce, told the AFP in early 2020 that the industry is "under significant pressure to improve its sustainability image." 

Airlines are "working with us to find pathways to increase the availability of sustainable fuels, look at how electrification can impact them... and also looking to more and more efficient engines and airframes," Stein said. 

And along with hydrogen, the airline industry is also attempting to revive supersonic flight. 

From Zero Hedge

Boeing Put Profits Before People's Lives By Hiding 737 MAX Design Flaws From Regulators, Pilots

18 months after Ethiopian Airlines Flight 302 plummeted out of the sky just minutes after takeoff last March, Congressional investigators have finally released a comprehensive report outlining the many mistakes made both by Boeing and the FAA during the certification process.

In the months that have passed, investigators have kept the pressure on Boeing (and its share price) with a steady stream of leaks. We've already seen emails showing Boeing engineers criticizing the 737 MAX 8 design time in some of the harshest terms imaginable (at one point, one irate engineer complained that "the plane was designed by clowns, who were supervised by monkeys".

But the 238-page report, released Wednesday morning by the House Transportation and Infrastructure Committee and its subcommittee on Aviation, breaks it down into five specific broad problems that allegedly led to the deadly accidents, which prompted regulators around the world to ground plane back in March 2019, even after the FAA initially tried to reassure the world that there was 'nothing to see here'.

Below is a summary provided by the committee.

• Production pressures that jeopardized the safety of the flying public. There was tremendous financial pressure on Boeing and the 737 MAX program to compete with Airbus’ new A320neo aircraft. Among other things, this pressure resulted in extensive efforts to cut costs, maintain the 737 MAX program schedule, and avoid slowing the 737 MAX production line.
• Faulty Design and Performance Assumptions. Boeing made fundamentally faulty assumptions about critical technologies on the 737 MAX, most notably with MCAS, the software designed to automatically push the airplane’s nose down in certain conditions. Boeing also expected that pilots, who were largely unaware that MCAS existed, would be able to mitigate any potential malfunction.
• Culture of Concealment. Boeing withheld crucial information from the FAA, its customers, and 737 MAX pilots, including internal test data that revealed it took a Boeing test pilot more than 10 seconds to diagnose and respond to uncommanded MCAS activation in a flight simulator, a condition the pilot described as “catastrophic.” Federal guidelines assume pilots will respond to this condition within four seconds.
• Conflicted Representation. The FAA’s current oversight structure with respect to Boeing creates inherent conflicts of interest that have jeopardized the safety of the flying public. The report documents multiple instances in which Boeing employees who have been authorized to perform work on behalf of the FAA failed to alert the FAA to potential safety and/or certification issues.
• Boeing’s Influence Over the FAA’s Oversight Structure. Multiple career FAA officials have documented examples where FAA management overruled a determination of the FAA’s own technical experts at the behest of Boeing. These examples are consistent with results of a recent draft FAA employee “safety culture” survey that showed many FAA employees believed its senior leaders are more concerned with helping industry achieve its goals and are not held accountable for safety-related decisions.

All these flaws eventually led to the "preventable deaths" of 346 passengers. Boeing repeatedly dismissed warnings and complaints from employees related to MCAS, which was created to compensate for a redesign of the plane's interior to create more space for passengers. One of the flaws was that MCAS relied on a single sensor, which was prone to feeding faulty information.

Why did Boeing need MCAS? Because, as the NYT explains, the engines on the Max are larger and placed higher than on its predecessor, so they could cause the jet’s nose to push upward in some circumstances. MCAS was designed to push the nose back down. In both crashes, the software was activated by faulty sensors, effectively forcing the plane's nose down repeatedly, eventually forcing them into a fatal nosedive.

What's more, Boeing successfully lobbied the FAA to avoid classifying the new software as "safety critical", meaning that the company didn't need to update pilots on how it worked. Some pilots reportedly weren't even aware the software existed before the crashes. Boeing deliberately concealed test data showing that if a pilot took longer than 10 seconds to realize that MCAS had kicked in accidentally, the results would be "catastrophic". Boeing knew all that before the twin crashes that shut down the program...and the company still did nothing. The company also deliberately concealed faulty alerts that would have warned pilots about problems with the sensor used to trigger MCAS.

In a statement, DeFazio blamed Boeing for kowtowing to Wall Street pressure, and putting profits before people's lives.

"Our report lays out disturbing revelations about how Boeing—under pressure to compete with Airbus and deliver profits for Wall Street—escaped scrutiny from the FAA, withheld critical information from pilots, and ultimately put planes into service that killed 346 innocent people. What’s particularly infuriating is how Boeing and FAA both gambled with public safety in the critical time period between the two crashes,” Chair DeFazio said. “On behalf of the families of the victims of both crashes, as well as anyone who steps on a plane expecting to arrive at their destination safely, we are making this report public to put a spotlight not only on the broken safety culture at Boeing but also the gaps in the regulatory system at the FAA that allowed this fatally-flawed plane into service. Critically, our report gives Congress a roadmap on the steps we must take to reinforce aviation safety and regulatory transparency, increase Federal oversight, and improve corporate accountability to help ensure the story of the Boeing 737 MAX is never, ever repeated.”

Rep Rick Larson added that the report, combined with separate findings from regulators in Indonesia and Ethiopia, would help paint a more complete picture of what led to the crash.

One of the most egregious decisions made by Boeing was opposing a requirement that pilots receive simulator training to fly the plane. If pilots needed to be retrained, Boeing would have had to eat some of the cost out of its end of the deal, according to an NYT report. This focus on cost-cutting "drove a lot of really bad decisions," DeFazio said.

The Democrats on the committee also accused Boeing of putting a priority on profits by strongly opposing a requirement that pilots receive simulator training to fly the plane. Under a 2011 contract with Southwest Airlines, for example, Boeing promised to discount each of the 200 planes in the airline’s order by $1 million if the F.A.A. ended up requiring simulator training for pilots moving from an earlier version of the aircraft, the 737NG, to the Max.

“That drove a whole lot of really bad decisions internally in Boeing, and the F.A.A. did not pick up on these things,” Mr. DeFazio said.

The report alleges that the 'time pressure' imposed on the 737 MAX project was unusually intense. Keith Leverkuhn, former Boeing VP and General Manager of the MAX program, allegedly kept "a countdown clock" in a conference room, which he allegedly described as an "excitement generator".

"One of the mantras that we had was the value of a day,” he said, “and making sure that we were being prudent with our time, that we were being thorough, but yet, that there was a schedule that needed to be met…" one Boeing worker said.

Back in 2012, in order to lower development costs, Boeing reduced the work hours involved in the MAX's avionics regression testing by 2,000 hours. It also examined other reductions to save costs, including a reduction to flight test support by 3,000 hours.

Boeing doesn't shoulder the blame alone. According to the report, the FAA "failed to ensure the safety of the traveling public" as "excessive" outsourcing had "impaired [the FAA] from acting independently."

The report comes as regulators are reportedly close to finally lifting the grounding order by approving the newly redesigned MAX; the expectation is that the plane might be back in service before the end of the year.

In addition to the report, Congress has introduced legislation that would toughen the agency's certification process, in part by requiring that it carry out regular independent audits on company-employed representatives.

Responding to the allegations in the report, the FAA said it "is committed to continually advancing aviation safety and looks forward to working with the committee to implement improvements identified in its report.” Boeing, meanwhile, said it had learned lesson. "Boeing cooperated fully and extensively with the committee’s inquiry since it began in early 2019. We have been hard at work strengthening our safety culture and rebuilding trust with our customers, regulators and the flying public.”

But like we've learned from Sweden's approach to the pandemic: Just because people have the option of doing something, doesn't mean they will. The 737 MAX 8 has such negative associations, that President Trump suggested Boeing rename the plane, and the company has been quietly working on a rebranding effort.

After failing to ring up even a single order for the MAX in 2020, Boeing finally celebrated a small order from Enter Air, a Polish charter airline, a few weeks ago. However, recent reports about alleged design flaws with the aerospace giant's 787 Dreamliner, and other Boeing planes, could create lingering problems for shares even after the 737 MAX is back in the skies.

Read the full report here.

From Zero Hedge

By Tyler Durden

An internal FAA memo, viewed by WSJ, reveals another crisis that could be developing at Boeing, and no, it does not involve the 737 Max that remains grounded. New details are emerging, the company's 787 Dreamliner could have components within its fuselage that do not meet design standards.

The Aug. 31 FAA memo stated quality-control lapses at certain Boeing 787 Dreamliner production lines, located in South Carolina, could date back to at least a decade ago. The planemaker told aviation authorities that certain parts failed to meet its own "design and manufacturing standards." 

The parts in question are "nonconforming" sections of "rear fuselage, or body of the plane, that fell short of engineering standards," WSJ said, citing the memo. Sources told WSJ these revelations might spur accelerated inspections that could cover 900 of the 1,000 jets produced since 2011.

Boeing told aviation regulators that quality lapses of certain fuselage parts do not pose an immediate threat to the air safety of the wide-body jet airliner that is mainly used for international flights. 

These new developments come as Boeing pulled eight 787 Dreamliners in August for repairs, discovering they did not meet structural-soundness "requirements for safe flight and landing," according to the FAA memo. 

Compound these developing 787 Dreamliner issues with the two fatal accidents of its narrow-body 737 MAX, and Boeing is experiencing widespread manufacturing quality-control lapses. 

Boeing has notified all airlines with 787 Dreamliners about the problems, the spokesman told WSJ. The memo said Boeing had requested more time to resolve some of these issues. 

According to one person briefed on the FAA's discussions with Boeing, there is a new focus on why manufacturing breakdowns occurred and how computerized safeguards failed to alert production crew on parts that failed to meet design standards. 

WSJ said as Boeing engineers investigate flight records to identify 787 Dreamliners with possible issues, the FAA already has knowledge of one of the defects: "the planemaker didn't test how it produces shims, or material that fills gaps between barrel-shaped sections of the jets' fuselages, to ensure they meet requirements." The shims are manufactured at Boeing's factory in North Charleston, South Carolina. 

On top of 787 Dreamliner and 737 Max design woes, Boeing has seen six straight months (as of August) of airlines canceling narrow and wide body plane orders as the virus-induced downturn in air travel has doomed the industry for the next several years. 

The release of the WSJ story describing Boeing's latest woes comes as the US is on holiday with financial markets closed.

From Zero Hedge

By Tyler Durden

American Airlines Slated To Drop Dozens Of Flights To Smaller Cities As Government Aid Dries Up

With the government set to stop subsidizing the industry, airlines are <gasp> actually going to have to make operational changes to effectively deal with the lack of demand. Oh, the horror of free market forces actually forcing companies to make business changes!

This starts with American Airlines, who is reportedly preparing to drop two dozen small and medium city flights as federal coronavirus aid is set to end. The aid had previously mandated that airlines were not allowed to cut service approaches. 

Carriers were previously required to maintain minimum levels of service through September 30 as part of a $25 billion aid package, according to CNBC. They were also prohibited from making layoffs. Under the aid package, American Airlines received $5.8 billion.

The purpose of the deal was to provide both payroll assistance and continued air service around the country despite the fact that planes didn't have any passengers. 

American's forthcoming cancellations could start showing up in fall schedules that are set to begin next week, the report said. Changes still have not been finalized and the list of cities that could be cut has not been released. Both airlines and their respective unions have continued to push Congress for another $25 billion in support to keep paying workers through the end of next March, when hopefully demand can recover.

Both the Democrats and Republicans seemed to be in favor of such a deal weeks ago, but negotiations have stalled in Congress for the time being. As a result, the Department of Transportation had informed American Airlines that a planned extension of the benefits was not going to happen for the time being.

A DOT spokesperson commented: “The Department did not propose to extend the obligations, but will use the authority in the CARES Act to monitor ongoing access by the traveling public to the national air transportation system. The Department is also prepared to implement any new provisions of law in this area if enacted by Congress.”

United and Delta have not announced changes to their schedule yet. However, one source told CNBC, the "situation is fluid".

From Zero Hedge

Boeing Is Running Out Of Space To Park Its Newly-Built 787 Dreamliners Which Nobody Wants To Buy

While Morgan Stanley continues to stubbornly repeat that the US economy is undergoing a jolly V-shaped recovery, one would be very hard pressed to observe that in either the number of airline passengers, or the commercial aerospace sector in general, where Boeing has become a poster child for how quickly the fate can turn... and it's not just the company's ill-fated Boeing 737 MAX which may or may not fly again. According to Bloomberg, Boeing is now also running out of space to stash newly-built 787 Dreamliners, as unsold jetliners are now crammed onto "every available patch of pavement on airfields near its factories in Washington and South Carolina."

Citing people familiar with the situation, Bloomberg writes that "dozens of the planes are sitting on the company’s premises" with Uresh Sheth, a closely followed blogger who meticulously tracks the Dreamliners rolling through Boeing’s factories, putting the total somewhere above 50. That’s more than double the number of jets typically awaiting customers along Boeing’s flight lines.

According to Sheth, brand-new widebodies are lined up on a closed off runway at the airport that abuts Boeing’s hulking plant north of Seattle. In North Charleston, 787s are tucked around the delivery center and a paint hangar. The U.S. planemaker has even started sending aircraft to be stored in a desert lot in Victorville, California.

Boeing's troubles with parked jets are nothing new: last year Boeing had so many 737 Maxes after their global ground when it emerged that Boeing had drastically cut corners to save on costs even if it meant risking people's lives, that it commandeered an employee parking lot to store surplus aircraft. Now, as it finally starts to emerge from that crisis, another critical source of cash - the company's marquee jet, the 787 Dreamliner - is under pressure but not do to airworthiness concerns but simply due to the global depression that commercial air traffic has found itself in.

As Bloomberg notes, Boeing has relied on the wide-body jet, produced in record numbers, to help bankroll the $20 billion in costs it has rung up since the Max was banned from commercial flight in March 2019 following two fatal crashes. But as Covid-19 sapped consumer interest in long-range travel this year, "the tally of undelivered Dreamliners has stacked up and created a new financial drag as regulators move closer to clearing the 737’s return."

As a result of the current state of the airline industry, "the next couple of years are just going to be very hard for this airplane,” George Ferguson, a Bloomberg analyst said of the 787 Dreamliner. Some more details:

Demand for the twin-aisle 787, Boeing’s 777 and Airbus’s A350 and A330neo has been especially hard hit as cash-strapped airlines slow or cancel aircraft purchases. Some would-be buyers don’t want to send pilots to claim aircraft in the U.S., where the pandemic is raging. When they are able to start growing fleets, airlines are expected to initially focus on smaller planes for domestic flights before adding larger aircraft for continent-hopping trips.

Boeing also faces a “capacity hangover” after pushing Dreamliner production to a 14-jet monthly pace last year -- a record for wide-body aircraft -- in a market that was already glutted with aircraft, said Richard Aboulafia, an analyst with Teal Group.

“It was one of the few levers they could pull to bring in more cash during what seemed like a crisis, and now looks like a nothingburger,” Aboulafia said of Boeing’s response to the Max grounding. That scandal has been eclipsed by the unprecedented aviation collapse brought on by Covid-19. “No twin-aisle had ever been built at 14-a-month for a very good reason.”

For now, Boeing is acting as if demand will soon rebound: "We continue to closely monitor the commercial marketplace by staying very engaged with our customers around the globe to fully understand short term and long term requirements," Greg Smith, the company’s chief financial officer and executive vice president of enterprise operations, said in a statement.

Unfortunately, such optimism remains wildly misplaced as customers took just three of Boeing’s 787 during May and June, and 36 of the aircraft in the first six months of the year, down more than 50% from 78 deliveries a year earlier.

While Boeing has already lowered 787 production to 10 jets a month, it will need to pursue far deeper cuts over the next two years, which will further sap the company's cash flow. Even so, the manufacturer could be left holding one-third of the more than 100 Dreamliners that J.P. Morgan analyst Seth Seifman projects the company will build this year.

In short, as a result of the global economic recession, Boeing is facing a good, old inventory glut, and absent taking a machete to prices, it will have big problems clearing out the excess inventory.

From FlightRadar24

By Gabriel Leigh

The NTSB has released its findings on Atlas Air 5Y3591, a 767 freighter flight that crashed on approach to Houston (IAH) in February last year. The release comes ahead of a final report which is expected within the next few weeks. In the immediate aftermath of the crash, observers were perplexed and alarmed at the sudden and steep descent the 767 appeared to have experienced as it was performing an otherwise relatively normal approach. The aircraft in question was Boeing 767-375(ER)(BCF) registered N1217A. ADS-B data from the flight can be found here.

The findings indicate the cause of the crash was disorientation on the part of the first officer. However, the NTSB also points to the captain’s failure to properly monitor the situation, as well as failings in industry standards for performance assessment that failed to catch “aptitude related deficiencies and maladaptive stress response” on the part of the first officer. As is often the case, it was a sequence of failings that led to the deaths of captain, first officer, and an additional pilot in the jumpseat.

However, at the heart of the sequence of events that led the 767 freighter to rapidly descend into the ground was what is known as a “pitch-up somatogravic illusion,” a phenomenon in which an increase in acceleration can create the illusion that the aircraft is pitching up. That happened as a result of the go-around mode being activated inadvertently. The first officer evidently believed the aircraft was stalling despite no stall warning activating in the flight deck.

The NTSB released the following animation of the flight:

The captain was also distracted because he was setting up the approach and speaking to ATC, according to the NTSB, which said “his attention was diverted from monitoring the airplane’s state and verifying that the flight was proceeding as planned. This delayed his recognition of, and his response to, the first officer’s unexpected actions that placed the plane in a dive. Investigators also concluded the captain’s failure to command a positive transfer of control of the airplane as soon as he attempted to intervene on the controls enabled the first officer to continue to force the airplane into a steepening dive.”

On top of that, investigators found that the first officer had performance deficiencies which he took deliberate steps to conceal, and might have led Atlas Air to take appropriate action had they known of them in the first place.

“The first officer in this accident deliberately concealed his history of performance deficiencies, which limited Atlas Air’s ability to fully evaluate his aptitude and competency as a pilot,” said NTSB Chairman Robert Sumwalt. “Therefore, today we are recommending that the pilot records database include all background information necessary for a complete evaluation of a pilot’s competency and proficiency.”

As a result of the investigation, the NTSB has issued six new safety recommendations to the FAA, addressing “flight crew performance, industry pilot hiring process deficiencies, and adaptations of automatic ground collision avoidance system technology.”

From Airline Ratings

By Geoffrey Thomas

June 10, 2020

Airline Industry is expected to lose US$84 billion in 2020 according to the International Air Transport Association (IATA) which has just released its financial outlook for the global air transport industry.

The net profit margin will plummet to -20.1 percent with revenues crashing 50 percent to $419 billion from $838 billion in 2019.

In 2021, losses are expected to be cut to $15.8 billion as revenues rise to $598 billion.

“Financially, 2020 will go down as the worst year in the history of aviation. On average, every day of this year will add $230 million to industry losses. In total that’s a loss of $84.3 billion. It means that—based on an estimate of 2.2 billion passengers this year—airlines will lose $37.54 per passenger. That’s why government financial relief was and remains crucial as airlines burn through cash,” said Alexandre de Juniac, IATA’s Director General and CEO.

“Provided there is not a second and more damaging wave of COVID-19, the worst of the collapse in traffic is likely behind us. A key to the recovery is the universal implementation of the re-start measures agreed through the International Civil Aviation Organization (ICAO) to keep passengers and crew safe. And, with the help of effective contact tracing, these measures should give governments the confidence to open borders without quarantine measures. That’s an important part of the economic recovery because about 10% of the world’s GDP is from tourism and much of that depends on air travel. Getting people safely flying again will be a powerful economic boost,” said de Juniac.

IATA says passenger demand has evaporated as international borders closed and countries locked down to prevent the spread of the virus. This is the biggest driver of industry losses. At the low point in April, global air travel was roughly 95 percent below 2019 levels.

Overall traffic levels (in Revenue Passenger Kilometer) for 2020 are expected to fall by 54.7 percent compared to 2019 with passenger numbers roughly halve to 2.25 billion, approximately equal to 2006 levels.

Capacity, however, cannot be adjusted quickly enough with a 40.4 percent decline expected for the year.

The problem for airlines is made worse as passenger revenues are expected to fall to $241 billion (down from $612 billion in 2019). This is greater than the fall in demand, reflecting an expected 18 percent fall in passenger yields as airlines try to encourage people to fly again through price stimulation. Load factors are expected to average 62.7 percent for 2020, some 20 percentage points below the record high of 82.5 percent achieved in 2019.

And costs are not falling as fast as demand. Forecast total expenses of $517 billion are 34.9 percent below 2019 levels but revenues will see a 50 percent drop. Non-fuel unit costs will rise sharply by 14.1%, as fixed costs are spread over fewer passengers. Lower utilization of aircraft and seats as a result of restrictions will also add to rising costs.

From The Seattle Times

By Dominic Gates

A Boeing engineer who last year lodged an internal ethics complaint alleging serious shortcomings in development of the 737 MAX has written to a U.S. Senate committee asserting that systemic problems with the jet’s design “must be fixed before the 737 MAX is allowed to return to service.”

The letter to the Senate, a copy of which was obtained by The Seattle Times, was written by engineer Curtis Ewbank, a 34-year-old specialist in flight-deck systems whose job when the MAX was in early stages of development involved studying past crashes and using that information to make new planes safer.

His letter, sent earlier this month, argues that it’s not enough for Boeing to fix the flawed Maneuvering Characteristics Augmentation System (MCAS) that’s known to have brought down the aircraft in two crashes in Indonesia and Ethiopia.

“I have no doubt the FAA and lawmakers are under considerable pressure to allow the 737 MAX to return to service as quickly as possible and as soon as the public MCAS flaw is fixed,” Ewbank told the Senate.  “However, given the numerous other known flaws in the airframe, it will be just a matter of time before another flight crew is overwhelmed by a design flaw known to Boeing and further lives are senselessly lost.”

He goes on to suggest similar shortcomings in the flight-control systems may affect the safety of Boeing’s forthcoming 777X widebody jet.

Ewbank’s letter also reveals that he has been interviewed about his concerns by the FBI, which suggests his allegations have at least been considered as part of the Justice Department’s probe into what went wrong on the 737 MAX and whether the actions of anyone at Boeing were criminal.

He mentions he has also delivered details of his allegations to the lead investigator on the U.S. House Committee on Transportation, chaired by Rep. Peter DeFazio, D-Ore.

In 2014, during early work on the MAX’s development, Ewbank worked unsuccessfully to have Boeing upgrade the MAX’s flight-control systems by adding a new data measurement system called Synthetic Airspeed that would have served as a check on multiple sensors. If it had been implemented, he believes it might have prevented the fatal crashes.

Ewbank’s original internal ethics complaint, first reported last October by The Seattle Times, alleged that Boeing rejected his safety upgrades because of management’s focus on schedule and cost considerations and the insistence that anything that might require more pilot training would not be considered.

He also alleged that Boeing pushed regulators at the Federal Aviation Administration (FAA) to relax certification requirements for the airplane, particularly in regard to the cockpit systems for alerting pilots that something is wrong inflight.

Those systems on the MAX have been under scrutiny because during the two fatal MAX crashes that killed 346 people, pilots struggled to understand the cascade of warnings in their cockpits.

‘Hand-waving and deception’

Ewbank’s letter to the Senate Committee on Commerce, Science, and Transportation was sent June 5, ahead of a public hearing Wednesday that featured scathing criticism of FAA Administrator Stephen Dickson for his agency’s lack of progress in addressing the lapses of oversight in certifying the MAX.

Ewbank criticizes not only Boeing for its design of the MAX but also the FAA for approving the design without proper oversight.

“The 737 MAX’s original certification was accomplished with hand-waving and deception to hide the numerous ways the 1960s-era design of the 737 does not meet current regulatory standards,” he wrote.

And he hit out at a recent Department of Transportation (DOT) advisory panel report on the MAX crashes that recommended only minor changes to the way airplanes are certified, preserving Boeing’s central role in that process. Ewbank called the report “a serious threat to aviation safety and the flying public.”

“If the FAA was truly regulating in the public interest, it would take action against Boeing for its continued deception and gross errors in the design and production of the 737 MAX by withdrawing Boeing’s production certificate,” he concluded.

Ansley Lacitis, deputy chief of staff for Democratic Sen. Maria Cantwell of Washington, said her office “was made aware of the letter right before the hearing” on Wednesday.

“The first step of a whistleblower investigation is to make contact with the whistleblower and we have done that,” Lacitis said. “We take these and other allegations seriously and continue to investigate them.”

In a statement, Boeing said company officials have not seen the letter.

“Boeing offers its employees a number of channels for raising concerns and complaints and has rigorous processes in place that ensure complaints receive thorough consideration and protect employee confidentiality,” the statement said. “Boeing does not comment on the substance or existence of such internal complaints.”

Boeing’s statement adds that “when the MAX returns to service, it will be one of the most thoroughly scrutinized aircraft in history, and we have full confidence in its safety.”

 767 APU Hanging at 30% During Start

During the APU engine start, the IGV (Inlet Guide Vanes) are supposed to be closed. This allows all incoming air to be directed into the combustion chamber. After start with a air demand (main engine start or air conditioning pack operation), the IGV vanes open allowing bleed air output.

We purposely pulled the IGV actuator arm out (vanes open) to see if it would would close them on initial rotation. It did not.

With the drain on the air bleed system, the APU could not accelerate beyond approximately 30% and it would shut down.

More troubleshooting here.

From Market Crumbs

Boeing has had a rough couple of years, starting with two separate 737 MAX crashes in October 2018 and March 2019, respectively, which killed a combined 346 people.

Boeing saw net total orders drop to negative 87 airplanes last year, its worst in decades. For comparison, its main competitor Airbus saw a net 768 orders last year.

Boeing's troubles continued into this year as production of the 737 MAX continues to remain halted. In January, Boeing reported zero net orders, while in February the company reported negative 28 net orders.

With Boeing already facing significant challenges, the coronavirus outbreak has added additional pressure to the company.

Boeing has made a handful of moves over the last month to bolster its financial position. The company drew down its entire $13.8 billion secured loan, halted hiring, suspended its dividend, as well as offered voluntary layoffs and early retirement packages.

Boeing is also seeking federal aid from the U.S. government, but won't do so if it requires the government to take an equity stake in the company.

Over the weekend Boeing announced it is "extending the temporary suspension of operations at all Puget Sound area and Moses Lake sites until further notice" after about 135 Boeing employees have tested positive for COVID-19.

"These actions are being taken in light of the company’s continuing focus on the health and safety of employees, current assessment of the spread of COVID-19 in Washington state, the reliability of the supply chain and additional recommendations from government health authorities," Boeing said in a statement.

The decision affects about 30,000 production employees, who will no longer receive pay after Wednesday. Despite still receiving medical benefits, they now must take vacation and sick time or apply for unemployment.

With things at Boeing going just about as badly as possible, it will be interesting to see how the company comes out of all of this.

Even once the coronavirus subsides, Boeing is still faced with its 737 MAX issues and lack of any net orders for its airplanes.

From Travel Pulse

By Donald Wood

Due to the ongoing coronavirus outbreak in Washington, Boeing announced Monday it would temporarily shut down its Puget Sound production operations starting on March 25.

Boeing officials revealed in a public statement the temporary shutdown would last 14 days and impact the more than 70,000 employees in the Puget Sound region.

During the closure, employees will be asked to work from home as the company conducts full cleanup efforts and develops a “rigorous criteria for return to work.” Workers who can do their job from home will be paid for the initial 10 working days of the suspension.

“We will keep our employees, customers and supply chain top of mind as we continue to assess the evolving situation,” Boeing CEO Dave Calhoun said in the release. “This is an unprecedented time for organizations and communities across the globe.”

Boeing’s announcement came just a day after a report from the Seattle Times (h/t KOMONews.com) said an employee at the company’s production plant in Everett died from coronavirus. The worker, identified as Elton Washington, reportedly worked for the manufacturer for 28 years.

Washington Governor Jay Inslee released a statement regarding the closure:

“I spoke with Boeing Commercial CEO Stan Deal early this morning. I applaud Boeing’s decision to implement an orderly shutdown and continue to pay its workers during this difficult time. Now is a time for bold actions like these, and we will continue to look at what can be done statewide.”

Last week, Boeing announced CEO Dave Calhoun and Board Chairman Larry Kellner would forego all pay until the end of 2020 and the company will suspend its dividend and extend its pause of any share repurchasing until further notice.

By Zero Hedge

Congress Rips Boeing's "Culture Of Concealment" & FAA's 'Jeopardizing' Public In Scathing 737 MAX Report

By Tyler Durden

In a sense finally making the long developing scandal official in terms of where blame lies and who covered it up, Congress has blasted Boeing's "culture of concealment" which recklessly pursued cost-cutting over safety, made worse by the Federal Aviation Administration’s woeful lack of oversight, leading to twin deadly crashes of Boeing's 737 MAX jets and 346 lives lost in late 2018 and March 2019. The report cites "efforts to obfuscate information" involving an automated system that "violated Boeing’s own internal design guidelines."

Preliminary findings issued by Democrats on the House Transportation Committee Friday afternoon found Boeing executives and FAA regulators ignored the fatal software glitch which was simply shipped by default with all new 737 MAX planes instead of being repaired.

Boeing “failed in its duty to identify key safety problems and to ensure they were adequately addressed during the certification process,” the House committee found. 

"Friday’s report details Boeing’s determination at various levels — years before the MAX won approval by the Federal Aviation Administration — to avoid putting any pilots through costly ground-simulator training," the WSJ writes. And further summarizes, "That single-minded goal was evident across Boeing’s engineering, marketing and management ranks, according to the report, and resulted in various efforts to mislead or withhold information from FAA officials during the lengthy certification process."

The Congressional report, which comes as the result of a series of five public hearings into the MAX's design and production after it was ground world-wide last March, also excoriated the FAA for its “grossly insufficient” review of the plane which ultimately "jeopardized the safety of the flying public” with its “inherent conflicts of interest” — even though it's supposed to be the final impartial safety watchdog.

Here are key damning conclusions from the report per The Seattle Times:

• Extensive efforts at Boeing to cut costs, maintain the MAX program schedule, and not slow down the MAX production line undermined the safety of the jet.
• Faulty assumptions led Boeing to fail to classify new flight control software on the MAX called the Maneuvering Characteristics Augmentation System, or MCAS, as a safety-critical technology that demanded more scrutiny.
• In order to avoid greater FAA scrutiny and increased pilot training requirements, Boeing practiced a “Culture of Concealment” that withheld crucial information from the FAA, its airline customers, and pilots.
• Inherent conflicts of interest among authorized representatives of the FAA, who are Boeing employees authorized to perform certification work on behalf of the FAA, ”jeopardized the safety of the flying public.”
• Boeing’s influence over the FAA’s oversight resulted in FAA management rejecting safety concerns raised by the agency’s own technical experts at the behest of Boeing.

After these and other scathing critiques in the Congressional findings, the FAA instead of a full-frontal acknowledgement to the public of its role leading up to disasters involving hundreds of deaths and grieving relatives, merely lamely stated that “we are a learning agency and welcome the scrutiny.”

“The lessons learned from the investigations into the tragic accidents of Lion Air Flight 610 and Ethiopian Airlines Flight 302 will be a springboard to an even greater level of safety,” the FAA statement added. 

However, we doubt that few among the traveling public will find such an 'assurance' believable or comforting, also considering the potential expanding nature of the safety issues and cover-up, as the WSJ notes additionally: "More broadly, the reports also details examples of FAA managers overruling safety concerns of their own technical experts related to another Boeing airliner, the Boeing 787."

From Zero Hedge

"Absolutely Unacceptable" - Leaked Boeing Memo Shows 'Debris' Found In 737 MAX Fuel-Tanks

By Tyler Durden

With airline after airline pushing back their 'return-to-service' dates based on Boeing's total lack of clarity on the path forward for the 737 MAX, the troubled aircraft maker (and the troubled aircraft) now faces more problems.

According to an internal memo, seen by Reuters, Boeing found debris that could pose potential safety risks in the fuel tanks of several 737 MAX aircraft that are in storage and waiting to be delivered to airlines.

To be clear about what 'debris' means, Reuters  details that:

"an industrial term for rags, tools, metal shavings and other materials left behind by workers during the production process."

And notes that this 'debris' problem has been a quality control issue for various Boeing aircraft, such as its KC-46 tankers.

Foreign-object debris (FOD) “is absolutely unacceptable. One escape is one too many,” Mark Jenks, a Boeing vice president and general manager of the 737 program, said in a message to employees that was viewed by Reuters.

“With your help and focus, we will eliminate FOD from our production system,”

The FOD problem on the MAX was first reported Tuesday on Scott Hamilton’s Leeham.net aviation site:

“There’s a systemic issue with Boeing’s quality control that hasn’t been corralled yet,” said Hamilton in an interview.

“This is not related to the MAX crashes or exclusively a MAX issue. Boeing has these FOD issues on other airplane programs.”

A Boeing spokesman confirmed the memo’s authenticity; and Boeing now having to inspect more than 400 stored 737 Max jets, but Bernard Choi said “it’s still undecided if we will inspect the rest” of the MAX fleet - another 385 aircraft that were delivered to customers but have been grounded for almost a year and are parked at airfields around the world.

“Obviously, we’ll do what’s right for safety,” Choi added.

Boeing spokesman Chaz Bickers was, however, careful to claim that the company does not see the debris as contributing to delays in the jet’s return to service. (The inspections will take two to three days per aircraft. Fuel must be drained from the wings before a mechanic can go in and do a thorough check.).

The Federal Aviation Administration said it was aware that Boeing “is conducting a voluntary” inspection for debris in the undelivered aircraft “as part of the company’s ongoing efforts to ensure manufacturing quality.”

It may delay the airlines' decision to accept delivery of the jets though (as its not exactly reassuring to crew members and passengers of the company’s commitment to manufacturing quality and safety!)

From Zero Hedge

By Tyler Durden

Slipping through the cracks of the Boeing controversy - which has taken on new twists and turns almost daily - were comments we recently uncovered by a former Boeing quality manager, who said last month that he thinks Boeing's problems aren't just limited to the 737.

John Barnett was a quality manager for Boeing for 30 years before he was transferred to South Carolina to work on the 787, according to Big Think.

It was there that a new leadership team who had previously worked on Boeing's military projects began overseeing work on the commercial airliner. 

Barnett says that team lowered safety standards significantly. He stated: "They started pressuring us to not document defects, to work outside the procedures, to allow defective material to be installed without being corrected. They started bypassing procedures and not maintaining configurement control of airplanes, not maintaining control of non-conforming parts — they just wanted to get the planes pushed out the door and make the cash register ring."

At first, it was just administrative issues, Barnett said. But then, it got worse.

"Over time it got worse and worse. They began to ignore defective parts installed on the planes and basic issues related to aircraft safety," he said.

According to Barnett, one audit uncovered that 25% of oxygen masks didn't work. Defective parts were getting lost in the system before being discovered flying on aircraft. Barnett says he remembered "several defective bulkheads being installed without having been repaired."

He also said that there was an issue with metal slivers. 3-inch-long slivers of razor-sharp metal would fall into areas where planes have sensitive wiring and electronics, he said. 

He continued: "That surface below the floor board is where all of your flight control wires are, that's where all of your electronic equipment is. It controls systems on the airplane, it controls the power of the airplane. All of your electronic equipment is down where all of these metal slivers are falling."

He said these slivers would cause shorts and fires at the plant. As planes vibrate, these metal slivers work their way into wire bundles and can cause issues during flights, he said. Barnett filed complaints with multiple members of the Boeing team, which he said led to his reassignment to a department that isolated him.

The FAA performed an audit substantiating his claims and even telling Boeing that no more planes could be delivered with those metal slivers. Meanwhile, 800 planes that include them have already been delivered and Boeing felt customers didn't need to be informed.  

"Every 787 out there has these slivers out there," Barnett said.

Barnett also filed a complaint with OSHA, which is reportedly still under investigation. 

He concluded: "...as far as the 787, I would change flights before I would fly a 787. I've told my family — please don't fly a 787. Fly something else. Try to get a different ticket. I want the people to know what they are riding on."

From Zero Hedge

By Tyler Durden

Lawmakers have finally followed up last week's bombshell release of internal Boeing communications with more extremely damning internal messages exchanged by employees. This time, the messages revealed that Boeing employees successfully persuaded Indonesia's Lion Air to forego forcing their pilots to use a full flight simulator to train them on the 737 MAX 8.

According to Bloomberg, which published unredacted copies of the messages, offering full flight simulator training to Lion Air would undermine a key selling point of the 737 MAX 8: The fact that Boeing advertised the plane as needing no additional training for pilots and crew, apart from a basic computer-based course.

One Boeing employee wrote in June 2017 - a little over a year before the deadly Lion Air crash in October 2018 that helped inspire the universal grounding of the plane by regulators - that "friggin Lion Air was pushing for a "flight sim."

However, the Boeing employee promised his co-workers that he would "unscrew" the situation.

"Now friggin Lion Air might need a sim to fly the MAX, and maybe because of their own stupidity. I’m scrambling trying to figure out how to unscrew this now! idiots," one Boeing employee wrote in June 2017 text messages obtained by the company and released by the House Transportation and Infrastructure Committee.

In response to news about Lion Air's request, another employee exclaimed that their sister airline, Malindo Air, was already flying the MAX without need simulators.

In response, a Boeing colleague replied: “WHAT THE F%$&!!!! But their sister airline is already flying it!” That was an apparent reference to Malindo Air, the Malaysian-based carrier that was the first to fly the Max commercially.

However, Boeing's fixation on the bottom line ended up being a penny wise and a pound foolish. After all, in a report on the Oct. 29, 2018 accident, Indonesia’s National Transportation Safety Committee explicitly cited a failure by Boeing to tell pilots about MCAS, a flight control feature that has been implicated in MAX crashes in Indonesia and Ethiopia. 

Apparently, it only took Boeing employees, including the company's chief technical pilot, to convince Indonesia to forego the training.

The communications include a 2017 email from Boeing’s chief technical pilot on the 737 in which he crowed to colleagues: "Looks like my jedi mind trick worked again!" The email was sent two days after the earlier messages expressing alarm about Lion Air potentially demanding simulator training.

Attached was a forwarded email exchange in which the person warned an unnamed recipient against offering simulator training for Max pilots, pushing instead for the computer-based course that regulators had already approved for flight crews transitioning to the Max from earlier 737 models.

"I am concerned that if [redacted] chooses to require a Max simulator for its pilots beyond what all other regulators are requiring that it will be creating a difficult and unnecessary training burden for your airline, as well as potentially establish a precedent in your region for other Max customers," the Boeing pilot wrote in the forwarded message.

While Lion Air was not identified in the redacted emails, the discussions are consistent with those Boeing held with Lion Air at the time, according to people familiar with the matter.

Once again, lawmakers have released damning communications from internal Boeing employees revealing a glaring negligence that appears to have been a cause, in part, of two deadly accidents that killed a combined 346 people.

These exchanges will almost certainly be cited in lawsuits by victims' family members alleging gross negligence on Boeing's behalf.

And once again, Boeing shares don't appear to care.

From The New York Times

The company expressed regret at the embarrassing communications it sent to investigators on Thursday, which included a comment that “this airplane is designed by clowns, who are in turn supervised by monkeys.”

By Natalie Kitroeff

Boeing employees mocked federal rules, talked about deceiving regulators and joked about potential flaws in the 737 Max as it was being developed, according to over a hundred pages of internal messages delivered Thursday to congressional investigators.

From Zero Hedge

By Tyler Durden

As if Boeing needed any more bad news.

The Federal Aviation Administration (FAA) conducted an internal audit in December of the Boeing 737 Max and found wiring issues could potentially cause a "catastrophic" short circuit at the rear of the plane and lead to a crash, a senior engineer at Boeing and three people familiar with the matter told The New York Times.

Boeing is examining if two wiring harnesses at the rear of the plane are too close together that would result in an electric short that would cause the plane's tail to malfunction in flight, said one of the sources.

If Boeing decides to fix the wiring problem, it would mean that more than 800 Max jets would have to see wiring reconfiguration. 

Of course, Boeing told The Times that the fix is relatively simple. Spokesman Gordon Johndroe said Sunday the "identified issue is part of a rigorous process, and we are working with the FAA to perform the appropriate analysis. It would be premature to speculate as to whether this analysis will lead to any design changes."

It was unclear, however, if simple also means cheap, and some have speculated that a full-blown recall could cost tens ofd billions.

An FAA statement Sunday said investigators are "re-analyzing certain findings from a recent review of the proposed modifications to the Boeing 737 MAX." The agency will "ensure that all safety-related issues identified during this process are addressed."

The FAA said the wiring harnesses are too close together, located at the rear of the plane, would cause the motors that control the stabilizer, a horizontal fin on a plane's tail, to malfunction (short circuit) and could lead to a potentially "catastrophic" crash.

Max engines have also become another focus for FAA investigators.

All of these issues, of course, are separate from the MCAS software that was likely the cause of two separate Max crashes, killing 346 people.  New Max issues could delay the ungrounding even further. There is no clear timeline of when the planes will return to the air.

Meanwhile, confirming that things are going from bad to worse, the WSJ reported that Boeing is mulling raising more debt to "improve finances", read fund buybacks, as costs related to the grounding of its 737 MAX are raising. The paper reports that Boeing is also considering cutting CAPEX, freezing acquisitions and cutting on R&D to save cash. In total, analysts expect Boeing to raise as much as $5BN in additional debt to help cover expenditures that could rise to $15BN in 1H 2020. It was not clear if all of this new money, or just most of it, would to repurchasing BA shares.

From Reuters

Airbus beats goal with 863 jet deliveries in 2019, ousts Boeing from top spot

By Tim Hepher

Airbus has become the world’s largest planemaker for the first time since 2011 after delivering a forecast-beating 863 aircraft in 2019, seizing the crown from embattled U.S. rival Boeing (BA.N), airport and tracking sources said on Wednesday.

A reversal in the pecking order between the two giants had been expected as a crisis over Boeing’s grounded 737 MAX drags into 2020. But the record European data further underscores the distance Boeing must travel to recoup its market position.

Airbus, which had been forced by its own industrial problems to cut its 2019 delivery goal by 2-3% in October, deployed extra resources until hours before midnight to reach 863 aircraft for the year, compared with its revised target of 860 jets.

Deliveries rose 7.9 % from 800 aircraft in 2018.

Airbus declined to comment on the figures, which must be audited before they can be finalized and published.

Planemakers receive most of their revenues when aircraft are delivered - minus accumulated progress payments - so the end-year delivery performance is closely monitored by investors.

Airbus’s tally, which included around 640 single-aisle aircraft, broke industry records after it diverted thousands of workers and canceled holidays to complete a buffer stock of semi-finished aircraft waiting to have their cabins adjusted.

Airbus has been hit by delays in fitting the complex new layouts on A321neo jets assembled in Hamburg, Germany, resulting in dozens of these and other models being stored in hangars to await last-minute configurations and the arrival of more labor.

Such out-of-sequence work drives up costs and could have a modest impact on Airbus profit margins, but the impact will be largely blunted by the high volume of planes and already solid profitability for such single-aisle aircraft, analysts say.

Still, the problems in fitting complex cabins have curtailed Airbus’s ability to take advantage of the market turmoil surrounding Boeing’s 737 MAX - grounded since March following two fatal accidents.

Boeing delivered 345 mainly long-haul jets between January and November, less than half the number of 704 achieved in the same period of 2018, when the MAX was being delivered normally. For the whole of 2018, Boeing had delivered 806 aircraft.

Airbus production plants traditionally halt over Christmas and New Year. But the company’s delivery centers and completion facilities were humming well into the afternoon of New Year’s Eve to allow Asian and other airlines to fly away new jets.

From Zero Hedge

By Tyler Durden

Sources have told The Wall Street Journal that Boeing could temporarily halt production of the 737 Max amid concerns the timeline of ungrounding the aircraft could be pushed further out. The decision to disclose the fate of the 737 Max production could arrive as early as Monday.

Boeing hosted a regular board meeting on Sunday in Chicago. Sources said the fate of the 737 Max production comes days after US regulators criticized Boeing for providing unrealistic timelines for when the plane will return to the skies.

In April, Boeing slashed production by 20% from 52 to 42 planes per month. A more extended cut or even production halt could be absolutely damaging to the global aerospace industry, as any reduction in planes could ripple down the supply chain and cause financial hardships for suppliers. 

"We continue to work closely with the FAA and global regulators towards certification and the safe return to service of the Max," Boeing stated. "We will continue to assess production decisions based on the timing and conditions of return to service, which will be based on regulatory approvals and may vary by jurisdiction."

We've noted in the past that production cuts could have severe consequences for the US economy. Over 600 suppliers provide 600,000 parts needed for each plane; the brunt of the shock would be seen down the chain at smaller firms. 

Some Max suppliers have already cut production rates after Boeing reduced plane output by 20% in April. There are other reports that some suppliers have already furloughed employees and shut down equipment as the groundings enter the ninth month.

"It's easier to ramp down gradually and then ramp back up," said John Scannell, chief executive of Moog Inc., which makes control motors for the MAX.

The upcoming production decision isn't easy for Boeing since two of its Max planes experienced flight control system malfunctions and crashed in the past year or so, killing 346 people.

From Zero Hedge

By Tyler Durden

Over the past nine months, the WSJ has led the media pack when it comes to scoops about the lapses at Boeing and the FAA that allowed the Boeing 737 MAX 8 to continue flying, even after a crash in Indonesia raised questions about the plane's safety that were apparently ignored, because a similar crash happened in Ethiopia less than six months later, bringing the combined death toll to above 300.

Earlier on Wednesday, Boeing shares dropped on reports that the 737 MAX won't fly again before the end of the year, even as deliveries "could" resume later this month.

These revelations about the culture at both Boeing and the FAA show very clearly how the agency has lost its way, and how its lapses in oversight opened the door to unimaginable human suffering.

WSJ reporters got their hands on an FAA internal report that was published back in November 2018. An internal FAA analysis of the Lion Air cash, it's expected to be released in full for the House committee hearing Wednesday.

According to the report, experts spotted the risks in the 737 MAX 8's anti-stall system, MCAS, and warned that these planes could average more than one crash a year.

In an aviation industry that sometimes goes almost a decade without an accident, these numbers are obviously unacceptable.

On Tuesday, an FAA spokesman delivered a statement to WSJ: "It was clear from the beginning that an unsafe condition existed," adding that the analysis "provided additional context in helping determine the mitigation action." In an email, the spokesman said such analyses tend to overstate risk because they take the most conservative approach and because specifically identified problems likely appeared more serious than they did in the operating fleet.

After Lion Air, the FAA’s analysis projected as many as 15 similar catastrophic accidents globally over the life of the MAX fleet (roughly 30 to 45 years) unless major fixes were made to a particular automated flight-control system (fixes that Boeing has scrambled to make over the past year).

"The potential for 15 projected crashes “would be an unacceptable number in the modern aviation-safety world," said Alan Diehl, a retired FAA and Pentagon air-safety official, who hasn’t had any involvement in the MAX crisis.

Even still, it might take more than that to win back public confidence, since WSJ and Boeing characterized the MAX as the most crash-prone Boeing model in modern history.

In total, the 737 MAX was projected to log as many crashes s Boeing’s 757, 767, 777, 787 and the latest 747 models combined. The MAX fleet was eventually anticipated to be nearly 5,000 jets world-wide, slightly larger than the combined global fleet of the earlier models that are still in service while the other fleets together total slightly more than 3,800 aircraft.

But in the document obtained by WSJ, the FAA anticipates that Boeing will update the flight control software on the 737 MAX 8 within the next seven or eight months. Of course, there were more deaths before the new software could be finished.

The FAA document anticipated that in roughly seven months, Boeing would devise, test and with the FAA’s approval install revised software for MCAS, the suspect stall-prevention system that led to the October 2018 crash in Indonesia. Meanwhile, the FAA also concluded that it could buy time to prevent another accident by reiterating to airline crews world-wide how to respond in the event of a similar MCAS misfire. If crews were aware of the risk and knew how to respond, the FAA determined it was acceptable to let the planes continue carrying passengers until a permanent design change was in place. That fix is still in progress.

More than any other previous piece of evidence, this document exposes the Boeing-FAA cabal and how corporations and the government conspired to put the lives of millions of unsuspecting travelers at risk.

The Independent

By Simon Calder

A former Boeing engineer has claimed that the planemaker cut corners on safety aboard the Boeing 787.

https://www.bbc.co.uk/news/business-50293927" John Barnett told the BBC that some passengers on the flagship long-haul jet, known as the Dreamliner, could have been left with no oxygen in the event of a sudden decompression.

He said that tests at the South Carolina assembly line suggested one in four of the aircraft’s personal oxygen systems could fail.

Boeing, whose safety culture is under intense scrutiny following two fatal crashes of the 737 Max, has denied the accusations.

Mr Barnett was a quality control manager at the Boeing plant in Charleston for three decades.

In April 2019 https://www.nytimes.com/2019/04/20/business/boeing-dreamliner-production-problems.html" he told the New York Times that he had discovered clusters of metal slivers that, he said, were dangerously close to flight control wiring.

“I haven’t seen a plane out of Charleston yet that I’d put my name on saying it’s safe and airworthy,” Mr Barnett said at the time.

He has now told the BBC that some of the oxygen cylinders fitted onboard were faulty.

Part of his job was to “decommission” equipment that had had to be replaced – typically because of minor damage during assembly. The work included discharging oxygen cylinders.

Emergency oxygen is carried on every passenger jet in case of sudden depressurisation, as happened to https://www.independent.co.uk/travel/news-and-advice/southwest-airlines-latest-safety-record-passenger-died-ryanair-easyjet-qantas-a8313751.html" Southwest flight 1380 on a flight from New York to Dallas in April 2018.

While the Boeing 737 was flying at 32,000 feet, an uncontained engine failure broke a window. The oxygen system worked normally, but a passenger who was partially sucked out of the aircraft lost her life.

 

Mr Barnett said that some 787 cylinders did not discharge as they were designed to do, and in a subsequent test of 300 such cylinders “straight out of stock”, 75 were found to be faulty.

He complained to his managers and subsequently to the Federal Aviation Administration (FAA), but the safety regulator said that Boeing was dealing with the issue.

Boeing told the BBC that in 2017 it had identified some oxygen bottles that were not deploying properly, but said: “We removed those bottles from production so that no defective bottles were placed on airplanes, and we addressed the matter with our supplier.”

The 787 had a troubled introduction into service. After lithium batteries on some planes combusted, https://www.independent.co.uk/travel/simon-calder/simon-calder-dreamliner-dont-fret-about-the-jet-yet-8457228.html" the Dreamliner was grounded for three months.

It is now one of the most successful aircraft, with British Airways, Norwegian, Tui Airways and Virgin Atlantic among many using the aircraft – though some 787s are currently grounded because of https://www.independent.co.uk/travel/news-and-advice/christmas-flight-cancellations-rolls-royce-trent-1000-engine-turbine-blade-failure-boeing-787-air-a8099201.html" faults with their Rolls-Royce engines.

Mr Barnett also claimed that workers fitted faulty parts from scrap bins to aircraft on the production line.

Boeing said it had “implemented corrective actions to prevent recurrence”. 

The former manager told the BBC: “Based on my years of experience and past history of plane accidents, I believe it's just a matter of time before something big happens with a 787.”

He is currently engaged in legal action against Boeing about what he says is the company’s adverse impact on his career.

The planemaker says: “Boeing has always focused on the safety of its products and people.

“We are more committed than ever to our shared responsibility to design, build and service the safest products: safe for all the teammates who design and build them, safe for the passengers who fly on them and safe for the people who service them.”

From Zero Hedge

European And Middle Eastern Regulators Raise Scrutiny Of 777X As Confidence In Boeing, FAA Plummets

By Tyler Durden

In the latest blow to Boeing, whose sagging shares are helping to weigh on the Dow in Wednesday's thin pre-holiday trade, WSJ has published a story claiming that regulators in Europe and the Middle East are ratcheting up their scrutiny of the new 777x. The news followed a report about a failed stress test by mere hours.

The move marks the end of an era for American aviation, when international regulators simply trusted the US to handle oversight. It's an important sign of the confidence that has been lost as Boeing struggles to move on from the crashes, and mass groundings, of the 737 MAX 8.

The European Union Aviation Safety Agency said in a statement it is performing a “concurrent validation” of the FAA’s certification of Boeing’s 777X, a new variant of the company’s popular wide-body jet. The plane is expected to be the first new airliner design from either Boeing or rival Airbus SE to come to market since the MAX crisis began. Two recent crashes of that jet exposed problems with its flight-control systems and FAA certification procedures. Regulators around the world grounded the entire fleet, creating turmoil for airlines and passengers world-wide.

The national regulator in the United Arab Emirates, meanwhile, also plans to separately scrutinize the certification process of the 777X, according to people familiar with the matter. While a small agency, the Emirati General Civil Aviation Authority wields outsize influence over the future of the 777X. That is because the U.A.E.’s state-owned carrier, Emirates Airline, is one of the new jet’s biggest customers. It is slated to be the first airline to fly the airliner in 2021.

According to WSJ, the regulators aren't insisting on performing their own complete independent certifications, rather, they're going to scrutinize the process used by the FAA.

European and Emirati regulators aren’t envisioning a full-blown certification of their own. Instead, they will independently scrutinize the processes used by the FAA and Boeing related to a number of specific systems on the plane, including its flight-control system and Boeing’s safety classification system, according to people familiar with the matter. They will also individually review the plane’s unique folding wings, these people said.

These reviews are perhaps the clearest sign yet that the FAA's status as the world's most reliable regulator has been lost, something that President Trump will need to blame on President Obama.

The separate reviews further undercut the FAA’s once-unchallenged stature as the world’s most influential regulator. The agency had lost credibility in the days after the crash of an Ethiopian Airways 737 MAX in March. That followed the deadly crash of a Lion Air MAX, under similar circumstances, late last year. The crashed killed 346 people in total.

There's no question that this is terrible news for Boeing, Fortunately, according to the latest reports, the 737 MAX should be back in the skies by early next year.

* * *

With the FAA reportedly preparing to inspect every 737 MAX individually before it signs off on the planes' return to the air - a decision that will likely delay recertification and add to Boeing's losses - the latest bad news for the aerospace firm comes from its hometown (well, sort of, Boeing is officially based in Chicago but the bulk of its operations are located in Washington State) paper, the Seattle Times.

The paper reported that a recent stress test for a new model of the Boeing 777 resulted in the fuselage (a fancy term for the body of the plane) ripping apart just below the FAA's official threshold for certification.

Driving the story home, the paper also published a grainy cellphone pic of the damage:

Back in September, the ST and a few other outlets reported that there were problems with the stress test, and that a door had flown off the handle. This, as it turns out, is not only incorrect, but it minimizes the seriousness of what actually happened.

During the test, the plane's fuselage "split dramatically" along the underside of the plane near where the landing wheels are stowed. The body of the plane was rent open with the force of a bomb. Workers in another hanger nearby said the ground the shook and they heard a load explosion. The Seattle Times clarified that their earlier reporting about a door flying off its hinges was mistaken: the 777's doors close from the inside and are larger than the holes they cover, but one door was seriously damaged.

When Boeing tested the original 777 model in 1995, it kept going until the aluminum wings snapped at 1.54 times limit load. On the 787, it chose to stop at 1.5 and then ease the composite wings back down again. Breaking a pair of composite wings could result in release of unhealthy fibers in the air, so it’s likely that with the 777X also having composite wings, that was the plan again this time.

But as Boeing personnel along with six FAA observers watched from the windows of a control room, at 1.48 times limit load - 99% of ultimate load - the structure gave way. Under the center fuselage, just aft of the wing and the well where the landing gear wheels are stowed, the extreme compression load caused the plane’s aluminum skin to buckle and rupture, according to the person familiar with the details.

The resulting depressurization was explosive enough that workers in the next bay heard it clearly. One worker said he heard “a loud boom, and the ground shook.”

Then there was the secondary damage...

That then caused secondary damage: The photos show that the fuselage skin split part of the way up the side of the airplane, along with areas of bent and twisted structure that extended through the area around a passenger door.

A day after the incident, based on incomplete information, The Seattle Times and other media outlets incorrectly reported that a cargo door had blown out.

Unlike the plane’s cargo doors, which hinge outward, the passenger doors on airliners are plug-type doors that only open inward and are larger than the hole they close. But the structure around that passenger door just aft of the 777X wing was so damaged that the pressure blew the door out and it fell to the floor.

These secondary damage sites — the rip up the side of the fuselage, the door blown out — alarming as they might seem, are not a concern to air safety engineers. “The doors were not a precipitating factor,” said the person familiar with the details.

It’s the initiating failure, the weakness in that localized area of the keel, that Boeing must now fix.

As uncomfortable as it sounds, Boeing probably won't need to do a retest: Since the rupture occurred so close to the threshold level, the FAA will likely allow Boeing to make the necessary changes independently and then show its work via analysis.

A safety engineer at the Federal Aviation Administration (FAA), speaking anonymously without permission from the agency, said that because the blowout happened so close to the target load, it barely counts as a failure.

Boeing will have so much data gathered on the way to the 99% stage that it can now compare with its computer models to analyze the failure precisely, the FAA engineer said. It can then reinforce the weak area, and prove by analysis that that’s sufficient to cover the extra 1%.

One engineer said the rip actually isn't anything to worry about.

The engineer said it’s not that unusual to find a vulnerability when taking an airplane structure to the edge of destruction.

"The good news is they found it and can address it," the FAA engineer said. "They found a problem they can fix. They can beef up the structure based on analysis."

And here are some more details about the test, including an explanation of the FAA's standards, as well as what happens to the test plane during the test.

The test conducted that day was the final test of this airplane, which was fixed in a test rig inside the Everett factory specifically to be stressed close to destruction. The jet was surrounded by scaffolding and multiple orange weights hung from the airframe. Wires were hooked to instrumentation that studded the surface to measure every stress and deflection, the data monitored in real time by engineers sitting at control room computers.

As the test neared its climax, weighted pulleys had bent the jet’s giant carbon composite wings upward more than 28 feet from their resting position. That’s far beyond the expected maximum deflection in normal flight of about 9 feet, according to a person familiar with the details.

At the same time, the fuselage was bent downward at the extreme front and aft ends with millions of pounds of force. And the interior of the plane was pressurized beyond normal levels to about 10 pounds per square inch — not typically a requirement for this test, but something Boeing chose to do.

All this simulated the loads in a flight maneuver where a pilot would experience a force of 3.75 G, compared to the maximum of 1.3 G in normal flight.

The combination of the bending forces  on the wing and fuselage created a high compression load on the bottom centerline of the fuselage — the keel — according to the person, who asked for anonymity because the details are sensitive.

Federal certification regulations require engineers to ratchet up the forces until  they reach “ultimate load” — defined as 1.5 times the “limit load,” which is the maximum that would ever be experienced in normal flight — and hold it there for at least three seconds.

Unfortunately for Boeing, traders weren't in the mood for excuses, and sent the company's shares lower in premarket trade...even as the broader market was set to open at record highs.

From Zero Hedge

By Tyler Durden

While Boeing continues trying to repair its 737 Max plane and its image with Wall Street, there's one group it certainly hasn't won back over yet: American Airlines flight attendants. 

Flight attendants for American are "fearful" of flying in the 737 Max again, even with the plane nearing regulatory approval to fly again, according to RT. The planes have been grounded for months now, following two fatal crashes that left over 340 people dead. 

The Association of Professional Flight Attendants (APFA) says they want to be fully versed on what has changed with the plane and why it is safe to fly in again. The union is seeking information from Boeing, US regulators, American Airlines, the carrier’s pilots and others in order to make a final decision. 

APFA President Lori Bassani said: “I hear from some flight attendants every day and they are begging me to not make them go back up in that airplane. We want to know without a doubt that it’s safe to fly.”

Meanwhile, Boeing said this week that the FAA is on track to certify its redesigned flight-control software by the middle of December, at which point it could start delivering new Max jets to the world's airlines. 

Last week, American Airlines said it was going to keep the 737 Max off of its schedules until at least next March. Previously, the company had said it was going to resume flights by January. American plans on making safety "exhibition flights" to prove to customers the jets are safe, with executives, workers and reporters on board, before returning the Max to commercial service. 

Meanwhile FAA Chief Stephen Dickson, who was personally lobbied by Boeing's CEO to clear the plane on an accelerated timeline, put out a video last Friday where he told his staff to resist "pressure" to clear the plane quickly. 

"I know there's a lot of pressure to return this aircraft to service quickly. But I want you to know that I want you to take the time you need and focus solely on safety. I've got your back," he says.

"In this process, the only driving force is safety," he continues. 

American's President, Robert Isom, says that the company's employees must also be comfortable with the plane before it will fly again. He commented: “After the FAA has given their sign of approval, after our pilots have said ‘Yes we’re ready to go,’ we intend to fly that aircraft so that our team is comfortable. So our pilots, our flight attendants, our partners, media – you name it – all of us as executives; we intend to fly that aircraft before it goes into commercial service.”

Still, the APFA says it wants a "global consensus" on the plane's safety before its members will again work on it.

From Zero Hedge

By Tyler Durden

Two Reuters sources have been informed that Air Arabia, an Emirati low-cost airline, will abandon its interest in Boeing 737 MAX jets and order over 100 Airbus A320 jets as soon as next week.  

The decision comes after Boeing's 737 MAX jet remains grounded worldwide following two fatal crashes. 

The sources said the Emirati budget carrier would likely order 120 jets from Airbus at the Dubai Airshow next week.

The order would more than double the size of the carrier that currently operates 55 narrowbody aircraft. 

The sources said Air Arabia was divided between Airbus and Boeing, but the two 737 MAX crashes created too many uncertainties for the carrier that had to side with Airbus for fleet expansion.  

Last month, Florida-based Spirit Airlines was assessing if it should buy Airbus or Boeing planes. It decided to order 100 new Airbus A320s over the 737 MAX. 

Airbus is on track this year, for the first time since 2011, to outpace Boeing in annual deliveries amid the 737 MAX groundings. 

Airbus expects to deliver 571 jets in the first nine months of 2019.

Delivers for A321 Neo jumped 57% for the first nine months, hitting a four-month high in September.

Boeing has since halted 737 MAX deliveries and cut production by 20% to 42 per month. 

The 737 Max crisis has allowed Airbus to take in a flood of new orders. 

Boeing is dealing with the company's most massive crisis in 100 years.

The backlashing against Boeing is only in the beginning innings.

From Epsilon Theory

By Ben Hunt

Remember Dick “Gorilla” Fuld, former CEO of Lehman Brothers, who oversaw a criminal fraud conspiracy that went by the name of Repo 105?

Dick Fuld never saw a courtroom, much less a jail cell.

When was I radicalized?

When Dick Fuld walked away scot-free from Lehman with half a billion dollars in cash comp and stock sales during his tenure.

I thought of Dick Fuld today when I saw this picture and read this article.

Prosecutors Face Complex Path to Charging Boeing Over 737 MAX   [Wall Street Journal]

To bring a successful criminal case against Boeing itself, prosecutors would have to show that executives repeatedly concealed or ignored the 737 MAX’s engineering problems, experts said.

And there is a larger economic and political component: A corporate indictment and potentially huge sanctions must be balanced against the economic and national-security risks of incapacitating the country’s second-biggest defense contractor.

The article is correct, of course. There’s no way that the Justice Dept. will ever bring a criminal case against Boeing, not one that hits top management or really shackles the company.

And I know that Boeing said today that Muilenburg won’t get a bonus or (more) stock grants until the 737 MAX is flying again, but this article got Radical Me thinking …

I wonder how much money Muilenburg and his management team and his board of directors have pocketed since he took over as CEO in 2015 and Chairman in 2016?

I wonder if executive compensation practices have changed over that span since … you know … Boeing started buying back nine billion dollars of stock every year?

Tell you what, I’ll make it easy and I won’t even count the cash compensation of Boeing management since 2016. I’ll just stick to the direct value of the sterilized stock options they exercised and the restricted stock units they were vested. And I won’t count any compensation of any sort here in 2019.

Over the 3-year period 2016 through 2018, Boeing management and directors pocketed $5.4 billion in exercised stock options and restricted stock units.

And by pocketed, I mean that $5.4 billion of the $25.2 billion in stock buybacks that you thought was a “return of capital” over that span was actually a USE OF CASH to either buy shares directly from management or mask the dilution of non-management shareholders.

In 2017 alone, the one good stock-performance year Boeing has had in a decade, $3.8 billion went to Boeing management and directors. That’s 29% of cashflow from operations for the year. The board totally reconfigured their stock compensation system to accomplish that. You know, the board that Muilenburg took over the year before.

And as they say on Wheel of Fortune, once you buy a prize, it’s yours to keep. There’s no clawback here. There’s no repercussion over the 737 MAX, either civil or criminal, for Muilenburg and crew. The only thing the 737 MAX debacle is going to make more difficult is for these same guys to pocket ANOTHER $5 billion.

And yes, some portion of this stock-based comp went to rank-and-file Boeing employees … I figure 5-10% is a good rule of thumb for most S&P 500 companies. But remember, I’m not even counting cash comp here. This is three years of stock comp for the management of an American icon of a company that had two so-so years and one really good year.

Is Muilenburg a billionaire from being a Boeing management lifer?

A guy who says his top management “insights” are:

“React quickly. Events can change everything. So must you.”

“Know your team. What really matters to them, on every scale?”

“Chart the course. What should the next 100 years look like?”

I dunno if he’s a billionaire yet. But he’s gotta be close.

LOL.

Yeah, It’s Still Water.

It’s the greatest transfer of wealth in 100 years. Not to founders. Not to visionaries. Not to inventors. Not to entrepreneurs. Nope … to managers.

This is the story of every S&P 500 company over the past five years.

Oh yeah, one more thing for the “Yay, Stock Buybacks!” crowd.

Over the past 20 years, Boeing has NOT bought back stock in two of those years. That was way back in 2002 and 2003, back when the top management and board jobs were just a twinkle in Dennis Muilenburg’s eyes.

Wanna guess what the total value of exercised stock options by Boeing management was in the years where they did NOT have stock buybacks to sterilize the issuance and so had straight shareholder dilution?

• In 2002, with zero stock buybacks, the total value of exercised stock options was $31 million.

• In 2003, with zero stock buybacks, the total value of exercised stock options was $19 million.

• It was hundreds of millions in the years before that, when they had stock buybacks.

• It was hundreds of millions in the years after that, when they had stock buybacks.

• It is BILLIONS of dollars today, as Dennis Muilenburg cranks up the buyback machine to its current record levels.

I believe it is impossible to separate the modern management practice of self-enrichment through massive levels of stock-based comp from the modern management practice of investor placation through massive levels of stock buybacks … without regulating one or the other practice.

But I’m all ears for any ideas.

From theautomaticearth.com

By Raúl Ilargi Meijer

During the Senate hearing into Boeing on October 29, Senator Jon Tester told the company’s CEO Dennis Muilenburg: “I would walk before I would get on a 737 MAX. I would walk.” He added: “There is no way … You shouldn’t be cutting corners and I see corners being cut.”

That’s all fine and well, but the hearing lays bare a giant gap in US law: that of accountability. Muilenburg is the “ultimately responsible” in a chain of command that is responsible for killing 346 people. But he is still the CEO, even if he was demoted from the chairman of the board position. Which was taken over by another -10 year- veteran of the company by the way. Fresh insights galore.

If you are employed by a large company, you can sign off on such decisions, the ones that kill people, and walk away unscathed. It reminds one of Monsanto/Bayer, which just annnounced that the number of Roundup lawsuits against it went from 18,000 in July to 43,000 today. Bayer at the same time announced that its turnover rose by 6% in Q3. 43,000 lawsuits and they’re doing fine, thank you.

In that same vein, Boeing shares rose 2.4% last night after the hearing (“a sign investors were relieved.”) What the “investors” buying those shares may have missed is that India’s budget carrier IndiGo ordered 300 new aircraft from Airbus, at an initial cost of $33 billion -which will be subject to a juicy discount, but still-.

Now, Boeing is America’s biggest exporter. It’s also one of the cornerstones of Pentagon policy, a huge provider for the US military. So one can only expect the Senate to be lenient, to appear to be tough but let things more or less go. Still, the fact remains that Muilenburg et al made cost-cutting and other decisions that killed 346 people. But CNCB still labeled this a “brutal Senate hearing”. Yeah. Define ‘brutal’.

Maybe the thing is that those deaths were not in the US, but in Indonesia and Ethiopia. Think maybe the Senate is influenced by that? What do you think would have happened if two 737 MAX’s had fallen out of the sky in the US, even if only in deplorables’ territory? We can sort of imagine, can’t we?

And no, it’s not an all black and white picture, some people involved made some sense (via Seattle Times):

Boeing 737 MAX Should Be Grounded Until Certification Process Is ‘Reformed’ – Senator

..at least one member of the Senate committee that grilled Muilenburg on Tuesday suggested the troubled aircraft shouldn’t be flying again until a much-maligned Federal Aviation Administration (FAA) oversight program retreats from its practice of delegating authority to Boeing and other aerospace manufacturers.

Sen. Richard Blumenthal — citing revelations in recent news reports of a Boeing engineer’s claims that the MAX’s safety was compromised by cost and schedule considerations, and that the company pushed to undercut regulatory oversight — pushed back against findings that the FAA’s practice of delegating more safety certification authority is only likely to increase.

“The story of Boeing sabotaging rigorous safety scrutiny is chilling to all of us — and more reason to keep the 737 MAX grounded until certification is really and truly independent and the system is reformed,” said Blumenthal, D-Conn.

But, you know, the entire narrative is about ‘the company’, not about the people in the company who make these fatal decisions. They can do whatever they want, secure in the knowledge they will never be held to account. For financial losses perhaps at some point, but not for the loss of life. At best, they’ll get fired and walk away with a huge bonus. And that’s just wrong.

And it’s not like there were no warning signs (via Seattle Times again, from Oct 3):

Boeing Rejected 737 MAX Safety Upgrades Before Fatal Crashes – Whistleblower

Seven weeks after the second fatal crash of a 737 MAX in March, a Boeing engineer submitted a scathing internal ethics complaint alleging that management — determined to keep down costs for airline customers — had blocked significant safety improvements during the jet’s development. The ethics charge, filed by 33-year-old engineer Curtis Ewbank, whose job involved studying past crashes and using that information to make new planes safer, describes how around 2014 his group presented to managers and senior executives a proposal to add various safety upgrades to the MAX.

The complaint, a copy of which was reviewed by The Seattle Times, suggests that one of the proposed systems could have potentially prevented the crashes in Indonesia and Ethiopia that killed 346 people. Three of Ewbank’s former colleagues interviewed for this story concurred. The details revealed in the ethics complaint raise new questions about the culture at Boeing and whether the long-held imperative that safety must be the overarching priority was compromised on the MAX by business considerations and management’s focus on schedule and cost. Managers twice rejected adding the new system on the basis of “cost and potential (pilot) training impact,” the complaint states.

This one is from AP, Oct 18. These are just the most recent revelations, this stuff goes back years. Neither Boeing nor the FAA ever did anything, until the planes started falling from the skies:

Messages From Former Boeing Test Pilot Reveal 737MAX Concerns

A former senior Boeing test pilot told a co-worker that he unknowingly misled safety regulators about problems with a flight-control system that would later be implicated in two deadly crashes of the company’s 737 Max. The pilot, Mark Forkner, told another Boeing employee in 2016 that the flight system, called MCAS, was “egregious” and “running rampant” while he tested it in a flight simulator.

“So I basically lied to the regulators (unknowingly),” wrote Forkner, then Boeing’s chief technical pilot for the 737. The exchange occurred as Boeing was trying to convince the Federal Aviation Administration that MCAS was safe. MCAS was designed at least in part to prevent the Max from stalling in some situations. The FAA certified the plane without fully understanding MCAS, according to a panel of international safety regulators.

Forkner also lobbied FAA to remove mention of MCAS from the operating manual and pilot training for the Max, saying the system would only operate in rare circumstances. FAA allowed Boeing to do so, and most pilots did not know about MCAS until after the first crash, which occurred in October 2018 in Indonesia.

As I covered extensively before the issue at hand is that Boeing, in order to cut costs, among other things, decided to have just one -active- “angle-of-attack” sensor (which measures the angle of the plane vs income air, it’s located at the bottom front of the fuselage) on the plane. All it takes is one bird flying into it to compromise and/or deactivate that sensor. And then neither the software not the pilots know what to do anymore. But yeah, it’s cheaper… One sensor won’t do, nor will two, you need at least three in case one is defective. But yeah, that costs money. Seattle Times once again:

Messages From Former Boeing Test Pilot Reveal 737MAX Concerns

Boeing’s chief engineer for commercial airlines acknowledged that the company erred by not specifically testing the potential for a key sensor to erroneously cause software on the 737 Max to drive down the plane’s nose. In both fatal crashes, faulty data from one of two angle-of-attack sensors, which measure the pitch of the plane against the oncoming stream of air, caused the 737 Max’s Maneuvering Characteristics Augmentation System, or MCAS, to drive down the jet’s nose, which pilots struggled to counteract before ultimately entering a fatal dive.

John Hamilton, vice president and chief engineer of Boeing Commercial Airplanes, told senators that the company “did test the MCAS uncommanded inputs to the stabilizer system, due to whatever causes was driving it, not specifically due to an AOA sensor.’’ Senator Maria Cantwell of Washington, the Senate Commerce Committee’s top Democrat, asked if he now thought that was wrong. “In hindsight, senator, yes,’’ Hamilton replied.

They didn’t test the hardware at all, they tested the software! And all they have to say is that that was wrong. But only in hindsight! And then they tried to fix the mess they created with a new software program, MCAS, but didn’t even tell the pilots it existed. I kid you not! They did this because it might have required pilots to do more training, which raises the price of a plane, and they were already losing out to Airbus.

And lest we forget, this all happened because when Boeing was busy spending its capital on buying back its own shares, Airbus had developed a new plane to accommodate a much more energy-efficient -though larger- engine. When Boeing figured that out, they had neither the time nor the money left (because of the share buybacks) to develop their own new plane.

So what they did was they stuck such an engine (which they did have) onto a 737 model that was not equipped for the much bigger and heavier load. That in turn lead them to work on a software solution to lift the nose of the plane despite that load, which might have worked in theory but was always a bad idea, something in the vein of putting a giraffe’s neck on a hummingbird.

But Muilenburg and his people kept pushing it all, because they knew they had been caught awfully wanting, and they needed that more cost-efficient plane. And this is how all the ensuing mess started. It was all because of money. Of the execs being caught with their pants down, and trying to hide their naked hairy asses.

And then, as I started out this essay, they are still not held accountable. The company will face billions in ‘repair’ damages, some of them may lose their jobs or bonuses, but none will be held responsible for the deaths of those 346 people.

That is just not right. Not in the case of Monsanto, and not in that of Boeing. Not all Boeing planes are disasters, but the 737 definitely is. Donald Trump a few months ago suggested they should just rebrand the plane, give it another name, do some expensive PR work and bob’s your uncle. But let me ask you, would you fly on a 737, even if under another name? Far as I know, all they did was change the software, not the hardware.

Plus, the other day some airline, was that in South Korea?!, grounded a whole bunch of 787’s because of cracks on their wings. Look, I’m not saying Boeing’s in trouble. I’m just saying Boeing’s in deep trouble. But then, you know, they’ll kick out Muilenburg and some other guys, and a few FAA heads will retire, and they’ll declare the rotten apples gone, and we’re off to a whole new start. Yay! But the 346 people will still be dead.

From Zero Hedge

By Tyler Durden

Over the weekend, Qantas conducted a research flight to test human limits on ultra-long haul commercial services.

Statista's Niall McCarthy details  that the test flight involved a Boeing 787-9 Dreamliner flying from New York to Sydney with 50 passengers onboard and it was expected to complete the 10,200-mile journey in 19-and-a-half hours.

If the research proves successful, Qantas hopes to start operating direct flights from Sydney, Melbourne and Brisbane to New York and London by 2022.

It was eventually relaunched with a new fuel-efficient and ultra-long range Airbus A350-900. There are many ways of measuring the world's longest flights with factors such as strong head winds having a major impact on the length of time an aircraft stays airborne. As a result, claims about the longest commercial flights have always proven controversial.

You will find more infographics at Statista

The infographic above provides an overview of the longest flights and it shows how the new Singapore Airlines route is undisputedly the world's longest.

From Zero Hedge

By Tyler Durden

At this rate, maybe President Trump is right, Boeing should change their name and rebrand the company. 

A new problem for Boeing has developed in the last several weeks, and it's not related to the 737 MAX, but rather an earlier 737, called the 737 Next Generation, or 737NG.

After a comprehensive inspection of 737NGs across the world, Boeing has said 36 737NGs have developed cracked wing supports, resulting in emergency groundings of the damaged planes with pending repairs, USA Today reported.

The 36 planes only represent 5% of the 686 planes inspected. From 1997, Boeing produced 7,043 of the aircraft (as of Aug. 29, 2019 figures), there is no report on how many of these planes are currently flying and or how many Boeing plans to inspect. 

Several major carriers have already been affected by the major design flaw. 

Brazilian carrier GOL grounded 11 planes with pending repairs. Southwest Airlines grounded two planes with pending repairs, as well. 

"Boeing regrets the impact this issue is having on GOL, as well as our 737NG customers worldwide," the company said in a statement. "We are actively working with our customers with inspection findings to procure parts, develop repair and replace plans, and provide all the technical support needed to safely return every impacted airplane to service as soon as possible." 

USA Today says the cracks were discovered when several 737NGs were converted from passenger planes, stripped down to bare bones for future use in the air freight industry. What engineers found when they deconstructed the airplanes was surprising. 

The damaged component is called the pickle fork, and it looks exactly like it sounds -- a fork that attaches the wings to the fuselage. The cracks were discovered on 737NGs that were heavily flown. The FAA warns the cracks could "adversely affect the structural integrity of the airplane and result in loss of control of the airplane" if not fixed immediately. 

The news of cracked wings comes several days after European flight regulators raised new concerns about the flight-control system of the Boeing 737 MAX.

From Zero Hedge

Bombshell Report: Boeing 'Whistleblower' Says Company Focused On Profit Over Safety Of Doomed 737 Max

By Tyler Durden

The New York Times has published a bombshell report about a new complaint filed against Boeing by a senior engineer, alleging the aircraft maker concentrated on prioritizing profits over the safety of the 737 Max airliner.

The Times learned about the new development from a source who requested anonymity, said the Boeing engineer filed the complaint after the two crashes (Lion Air accident in October 2018 and Ethiopian Airlines accident in March 2019).

Curtis Ewbank, the senior Boeing engineer who filed the complaint, called out top executives for publicly misrepresenting the safety of the plane.

Ewbank designed the 737 Max cockpit systems that pilots use to monitor and control the airplane.

He said in the complaint that managers wanted him to examine a new system for measuring the plane's airspeed. The new system, known as synthetic airspeed, uses several sensors to measure how fast a 737 Max is flying.

Ewbank said when the angle-of-attack sensors, which measure the plane's position in the sky, malfunctioned, it would send bad data to other flight systems that would cause the aircraft to crash.

In both crashes of the 737 Max, it's widely believed that the angle-of-attack sensors failed, then sent bad data to the Maneuvering Characteristics Augmentation System (MCAS) flight control system, which sent the planes into uncontrollable nosedives.

Ewbank said in the complaint to Boeing, "It is not possible to say for certain that any actual implementation of synthetic airspeed on the 737 Max would have prevented the accidents." He said Boeing cut corners on the development of the 737 Max, at the expense of safety, all to please shareholders.

Ewbank's complaint said that Ray Craig, a chief test pilot of the 737 Max, wanted to examine additional sensors on the plane, such as the synthetic airspeed system. Still, Boeing executives frowned upon the idea because it would cost too much.

"I was willing to stand up for safety and quality, but was unable to actually have an effect in those areas," Ewbank said in the complaint, adding, "Boeing management was more concerned with cost and schedule than safety or quality."

A former senior Boeing employee, who spoke on the condition of anonymity with The Times, said senior executives considered installing the new sensors on the 737 Max, but realized it would be too difficult and risky for the plane.

Ewbank's complaint wasn't filed during the development process of the 737 Max. Ewbank feared that upper management would retaliate if he did so.

He stepped forward this year and explained in the complaint that it's the "ethical imperative of an engineer — to protect the safety of the public."

"Boeing is not in a business where safety can be treated as a secondary concern," Mr. Ewbank wrote in the complaint. "But the current culture of expediency of design-to-market and cost cutting does not permit any other treatment by the work force tasked with making executive managements' fever dreams a reality."

And by prioritizing profits, Boeing executives certainly seemed to rush the 737 Max from development into production, at the expense of safety, not just to contend with the Airbus A320neo, but to unlock billions of dollars in stock buybacks that were tied to significant milestones relating to plane's sales. This enabled Boeing's stock to rise nearly 300% in 36 months, while executives used the opportunity to dump company stock.

From engineering.com

By Matthew Greenwood

The European air safety regulator could break with the Federal Aviation Administration (FAA) on certifying the Boeing 737 MAX for flight again—which could cause significant turmoil in the global aviation sector.

The European Union Aviation Safety Agency (EASA) is insisting on conducting its own flight tests of the aircraft before allowing it to fly again in Europe—rather than just relying on FAA certification.

“EASA intends to conduct its own test flights separate from, but in full coordination with, the FAA,” said agency spokesperson Janet Northcote. “The test flights are not scheduled yet. The date will depend on the development schedule of Boeing.”

It’s not unusual for regulators to send their own staff to conduct tests on aircraft being manufactured outside of their jurisdiction—the FAA used its own pilots to test several Airbus planes before certifying them for service in the U.S. Most of the time, regulators ultimately take their lead from the agency in the country where the plane is manufactured.

But there has never been a certification process as high-profile as this one.

At the heart of EASA’s concerns are the aircraft’s angle-of-attack vanes—sensors that detect the angle of the plane’s nose relative to oncoming air. Malfunctioning vanes triggered the two fatal crashes that resulted in the grounding of the 737 MAX worldwide. Boeing planes use two vanes, while other plane makers—including Boeing’s European rival Airbus—use three or more to strengthen redundancy.

While EASA recognizes that two vanes are “the bare minimum requirement to meet the safety objectives,” the regulator states that “an architecture with three vanes can more easily be found compliant with the regulation.”

EASA isn’t demanding that additional vanes be installed—yet. But the agency has expressed serious concerns over whether pilots could handle angle-of-attack sensor failures during crucial stages of the aircraft’s flight such as takeoff. It remains to be seen if the regulator will be satisfied with Boeing’s proposed fix—which currently still relies on just the two vanes.

If the European agency tells Boeing that the aircraft needs more vanes, it could spell trouble for the 737 MAX—and indeed all Boeing’s planes, since they each use the two-vane system.

The FAA has made no such demands on Boeing, and appears likely to conduct its certification flight in October—opening the way for the jet to reenter service in early 2020.

But if Boeing needs to install additional hardware to satisfy the EASA, then the company can say goodbye to a neat and tidy global return to service. Even with FAA certification, the plane will be banned from flying to European destinations: this will cause complications for Boeing’s manufacturing and delivery schedules. And the airlines that fly the 737 MAX will also have to juggle fleets and schedules alike—something they’ve already had to do, and do well, since the MAX was grounded.

Boeing will also need to spend significant amounts of money and time to get the planes up to EASA’s standards—a project much more complicated and expensive than just the software patch the Seattle-based aerospace giant is currently working on.

This points to troubling uncertainty about the FAA’s perceived trustworthiness. Regulators have previously been content to follow the FAA’s lead on issues like new plane certification. But the 737 MAX debacle has given the FAA a black eye due to concerns over its lax testing and enforcement. It appears that regulators are losing faith in the FAA.

The FAA was one of the last agencies to ground the plane after the second fatal crash. The first to ground the fleet was the Civil Aviation Administration of China (CAAC)—which seems to have taken over the FAA’s role as the world leader in aviation regulation.

To add to the FAA’s new-found legitimacy problems, India is joining Europe in its intent to independently certify the passenger jet. The Indian Directorate General of Civil Aviation stated that it plans to conduct its own tests on the 737 MAX as well. It would appear that India doesn’t trust the FAA any more than Europe does.

The European Union and the United States currently have an air safety agreement that aims to create a consistent safety and certification regime in both jurisdictions. And the FAA has already approved parts of the 737 MAX that EASA didn’t directly oversee. But EASA has said it will conduct a “broader review of the design of the critical safety systems on the MAX,” according to new EASA director Patrick Ky. EASA had delegated that task to the FAA in 2017 when the plane was greenlit for service—but won’t be doing so again.

The last time a fleet was grounded was in 2013 when the Boeing 787 Dreamliners were pulled from runways around the world to fix electronics and battery issues—and global regulators worked closely and collaboratively to fix the problem, with EASA content to let the FAA take the lead as the primary certification authority. That certainly isn’t the case anymore.

Going back to the vanes, EASA’s Ky stated that Boeing had not implemented changes that would rectify the regulator’s concerns over the angle-of-attack sensors—which might mean that EASA will insist on additional vanes after all. This could add another worrying chapter to the 737 MAX’s tragic tale.

Read more about the 737 MAX’s difficult road back to certification at New 737 MAX Flaw Discovered as Boeing Aims for Recertification.

From Zero Hedge

By Tyler Durden

Expectations that the Boeing 737 MAX 8 will return to the skies any time in the near future have largely faded, and now, after dedicating billions of dollars to compensating customers, Boeing is finally facing their wrath in the courtroom. The FT reports that a Russian aircraft-leasing company has filed a lawsuit against the aerospace company seeking not only the return of the deposit it paid for the 35 MAX 8s that it ordered, but also punitive damages in the hundreds of millions.

Avia Capital Services, a subsidiary of Russian state conglomerate Rostec, accused Boeing of "negligent actions and decisions" that led to two deadly accidents and roughly 350 deaths. Regulators around the world grounded the 737 MAX 8 in response to the accidents, and investigations have pointed toward issues with the plane's software as the culprit.

In its lawsuit, Avia also claimed that the design of the MAX 8 was "defective", and - embracing a more conspiratorial tone - that Boeing knew about these defects bu withheld this "critical information" from US regulators and Boeing's customers.

 The lawsuit was filed in Cook County circuit court in Chicago, where Boeing is based.

Avia ordered 35 MAX 8s, and paid a cash deposit of $35 million to secure its order. In its lawsuit, the company is seeking the return of this deposit, along with another $75 million of lost profits plus additional punitive damages.

The company's lawyer, Steven Marks of the Miami aviation law firm Podhurst Orseck, said Boeing had offered the company compensation for the MAX 8's problems, but that this compensation was "inadequate." Marks is also representing the families of some of the victims.

Boeing CEO Dennis Muilenburg has said it's possible that the MAX 8 could be re-approved for passenger service by October. But it's entirely possible that the CEO could be jawboning to convince customers to hold off from moving ahead with lawsuits. Of course, the families of the victims who died in the two plane crashes attributed to flaws in the 737 MAX 8's anti-stall system are moving ahead with their lawsuits, even after Boeing set aside $100 million for payoffs.

In the meantime, orders for new 737 MAX 8s have dried up, and if the plane isn't given the OK to return to the skies before the end of the year, it's possible that Boeing could halt production of its most popular aircraft, according to CBS News.

American firms like Southwest (the 737 MAX 8s' largest customer) have been far more understanding and willing to work with Boeing. But how much longer until their patience runs out, and they start filing lawsuits?

Though this hasn't been reflected in Boeing shares, it's still entirely possible that a flood of legal judgments could bankrupt Boeing.

From The Seattle Times

Boeing will hire hundreds of temporary employees at Moses Lake as it prepares for 737 MAX’s return to service.

By Dominic Gates

Boeing said Tuesday it will begin hiring a few hundred temporary employees at Moses Lake to work on the grounded 737 MAX fleet and prepare the planes for return to service once regulators gives them clearance to fly again.

The company, which will provide paid housing and a meal allowance for the temporary hires, is looking for avionics technicians, aircraft mechanics, airframe and engine mechanics, and aircraft electricians.

The marshaling of resources indicates Boeing’s confidence that the Federal Aviation Administration (FAA) could grant approval to fly passengers on the 737 MAX again in little more than two months from now.

When regulators finally clear the MAX to return to service, all the grounded airplanes worldwide will need to have installed a new software package designed to fix the MAX’s flawed flight-control system — the Maneuvering Characteristics Augmentation System (MCAS). That’s the system that was implicated in the crashes of the Lion Air MAX in Indonesia last October and the Ethiopian Airlines MAX in March, killing a total of 346 people.

In addition, because all the jets will have been parked for at least six months by the time final clearance is given, each will require extensive maintenance work on the engines and other systems, followed by a couple of check flights to make sure everything is working well.

Boeing said all undelivered MAX airplanes that it has stored outside the Puget Sound region will be flown to Seattle and Everett for delivery to airline customers when the jets are ready to resume commercial flights. Moses Lake will serve as a nearby staging ground to do some of the maintenance work ahead of the deliveries.

Boeing is not providing details on the number of airplanes now parked, or the capacity, at each of those locations.

The timing of the jet’s return to service worldwide remains unclear. The FAA is expected to approve a return to flight first, and for training it may require only that U.S. pilots complete an online course on a computer to update them on the new MAX system.

Regulators abroad may be slower in approving a return to flight, and some are likely to require full flight-simulator training for pilots. That’s because of concern that less-experienced pilots need hands-on practice in how to cope with the type of emergency that arose on the two crashed flights, when uncommanded movement of the horizontal tail repeatedly pushed down the nose of the plane.

From Bloomberg

Latest 737 Max Fault That Alarmed Test Pilots Rooted in Software

By Alan Levin

As U.S. government test pilots ran through dozens of flight scenarios on the Boeing Co. 737 Max in recent weeks, a potential failure got their attention.

The plane’s flight computer tried to push the aircraft’s nose down repeatedly during a simulator run, prompted by a stream of erroneous flight data. The Federal Aviation Administration pilot concluded commercial pilots might not have time to react and avoid a tragedy in a real plane.

That flaw -- the latest discovered on the family of jets involved in two fatal crashes since October triggered by a different failure that pushed their noses down -- was revealed by FAA last month. It threw new uncertainty on the return to flight of the Chicago-based company’s best-selling model and sent its engineers scrambling for a fix.

Interviews with people familiar with the failure suggest it triggered multiple, aggressive movements to lower the plane’s nose, which alarmed the FAA pilots and other officials. However, the nose-down motion didn’t occur as a result of a computer hardware fault, according to one of the people, who asked not to be named because he wasn’t authorized to speak about the matter.

That would add credibility to Boeing’s assertions that it can fix the issue with a relatively simple software change.

“We are confident that is a software update, not a hardware update,” Boeing Chief Executive Officer Dennis Muilenburg said during an earnings call on Wednesday. “It’s an understood update and we’re in the middle of working our way through that.”

Muilenburg said the company expects it can complete a software patch by the end of September, while cautioning that the timeline remains uncertain. The FAA, which must sign off on any fix in the glaring spotlight of the 737 Max investigations, hasn’t set a deadline or agreed with Boeing’s assessment that software changes alone will suffice.

The agency has declined to comment on the situation beyond a statement it issued June 26 saying the flaw was discovered during the routine process to test the aircraft. “The FAA recently found a potential risk that Boeing must mitigate,” the agency said in its statement without describing the details.

Two people briefed on the flight test shared more details of the failure than were released when it was revealed.

In the fault, a wing at the tail of the Boeing jet known as the horizontal stabilizer was rotating in a way that lowered the nose, according to both people. That same scenario occurred during fatal accidents off the coast of Indonesia and in Ethiopia when a safety feature known as Maneuvering Characteristics Augmentation System activated during a malfunction.

However, the newly discovered problem wasn’t triggered by MCAS, said one of the people.

It was prompted instead by multiple erroneous data streams in a flight computer that occurred simultaneously, the person said. It was simulated in tests even though it has never been documented to have occurred during flight, the people said. Anticipating every possible outcome of even the most unlikely failures is part of how safety assessments are conducted during certification.

The failure scenario was known previously and had been assessed in a safety analysis when the plane was certified before entering service in 2017. At that time, Boeing concluded that pilots could overcome the nose-down movement by performing a procedure to shut off the motor driving the stabilizer movement.

Projecting that pilots would mitigate a hazard from a malfunction is common on jetliners, but that was part of the reason that FAA approved MCAS initially, a now-controversial decision that is being reviewed by Congress and other outside panels. Even though it was possible for pilots in both fatal crashes to have counteracted MCAS, the crews were unable to do so.

When the newly discovered computer failure began trimming the nose down in the recent test, it was more difficult than expected for test pilots to counteract, according to the other person briefed on the tests, who also asked not to be identified.

The second person wasn’t able to confirm that faulty data streams triggered the nose-down movements.

One of the ways pilots are taught to respond to a so-called “trim runaway,” which is what the computer issue prompted, is to activate switches on the control column that move the horizontal stabilizer. Doing so can counteract the malfunction, even if only temporarily, so that pilots have more time to perform other emergency actions.

Using the trim switches to halt the horizontal stabilizer movement proved difficult, though test pilots were able to respond to the failure and maintain control. As a result, they concluded that a typical pilot might not be able to respond adequately, the people said.

Because the fault was triggered by specific streams of erroneous flight data, a new software patch can be devised that monitors the computer for that highly unusual condition and prevents movement of the stabilizer when it occurs, one of the people said.

The 737 Max family of aircraft has been grounded by the U.S. since March 13 and has cost Boeing and airlines billions of dollars. Boeing announced July 18 that it was reducing revenue and pre-tax earnings by $5.6 billion in the second quarter of this year.

American Airlines Group Inc. predicted Thursday that it would take a $400 million hit on profit this year due to the plane’s woes and Southwest Airlines Co. said it wouldn’t add the 737 Max back to its schedule until early next year.

From Zero Hedge

Southwest Ends Flights Out Of Newark Airport As 737 MAX Grounding Takes Its Toll

By Tyler Durden

When Southwest reported its earnings Thursday morning, it also made a stunning announcement that shows just how badly the 737 MAX 8's best customer has been hurt by the grounding.

Just as Boeing warns that it could halt production of the troublesome 737 MAX 8 if the plane's return to the skies is delayed any longer, Southwest Airlines, the 737 MAX 8's best customer, is reportedly planning to cease operations at Newark Airport. The decision is a direct result of the 737 MAX 8's grounding.

A representative for the airline said the decision is a "necessary step" to mitigate damages from the "extensive delays" in the recertification process for the MAX. The airline is planning to consolidate its New York-area presence at LaGuardia Airport in Queens, WSJ reports.

The airline is planning to cease operations in Newark on Nov. 3. The airline launched service out of Newark in 2011 and was recently offering 20 daily departures to 10 cities.

At the time of the Ethiopian Air Crash, the second of two crashes involving the 737 MAX 8 that killed a combined 346 people, Southwest had received 31 737 MAX 8s, more than any other airline, and it had orders in for nearly 250 more.

Southwest said its Newark operations have been performing below expectations, while customer demand for more flights out of LaGuardia is "strong." Customers will be offered options to change their travel plans, and Southwest employees will have the opportunity to relocate to other locations, including LaGuardia.

Because of the 737 MAX 8's grounding, Southwest expects its available seat miles, a widely watched airline industry metric of passenger-carrying capacity, to decline by 1% of 2% YoY in 2019. Before the grounding, it had anticipated capacity growth of nearly 5%.

As revealed following yesterday's earnings report, Boeing now expects the 737 MAX 8 will return to the skies either late this year, or in January 2020. According to CEO Dennis Muilenberg, Boeing expects to submit its "final certification package" to the FAA in September.

Shares of the airline tumbled 5% on Thursday in premarket trading after the low-budget carrier said it doesn't plan to fly the 737 MAX 8 again until next year. It has removed the MAX 8 from its schedules through Jan. 5. Its Q2 revenues came in slightly below estimates.

From Zero Hedge

By Tyler Durden

Two weeks ago, we noted how, after ignoring them for months (presumably at the behest of its legal department), Boeing had decided to dedicate $100 million (roughly 1% of its 2018 revenue) to the families of the victims from the Lion Air and Ethiopian Air crashes. However, that number came with a catch: Some of the money would be used for 'community development' and 'education efforts'.

Split among the families of the 346 victims, at $100 million, each family would receive just under $300,000 - a pittance when one considers that this is compensation meant to offset the taking of a human life.

But as it turns out, the families won't even get that much, because as CNBC reported on Wednesday, Boeing is planning to distribute only $50 million to the families of victims, and will retain Ken Feinberg (famous for being the special master of the US government's Sept. 11 Victim Compensation Fund) as co-administrator of victims' fund. The rest will presumably go to these unspecified initiatives that the company has mentioned.

For the record, this breaks down to just $144,508 per human life.

We're sure the callousness with which Boeing has treated the families of the victims of the two crashes that led to the global grounding of Boeing's 737 MAX 8 (and exposed serious flaws in Boeing's safety testing processes and the FAA's oversight) will make them even more willing to settle the multitude of litigation that the aerospace company is facing.

From Zero Hedge

By Tyler Durden

The Saudi budget airline Flyadeal has lost patience with the ongoing grounding of Boeing's flagship 737 MAX airplane, and on Sunday announced it would not proceed with a $5.9 billion order for 30 Boeing 737 MAX aircraft, instead opting for a fleet of Airbus A320 jets, with options for a further 20 of the jets.

According to Reuters, Flyadeal has been reconsidering a commitment to order the Boeing jets after two MAX aircraft crashed in Ethiopia in March and Indonesia last October, and which killed a total of 346 people, triggering the global grounding of the aircraft and wiped billions off Boeing’s market value. On Sunday, it finally pulled the plug when it announced it would take delivery of 30 A320 neos ordered by its parent, state-owned Saudi Arabian Airlines, at the Paris Air Show in June.

“This order will result in flyadeal operating an all-Airbus A320 fleet in the future,” it said.

Flyadeal, which has operated leased A320 jets since launching in September 2017, will take delivery of the new Airbus aircraft from 2021.

“We understand that flyadeal will not finalize its commitment to the 737 MAX at this time given the airline’s schedule requirements,” a Boeing spokesperson said in their most diplomatic tone as the last thing Boeing wants is the rest of the world following in Flyadeal's footsteps.

Boeing said in a statement that it wished “the Flyadeal team well as it builds out its operations”, adding that its workforce “continues to focus on safely returning the 737 Max to service and resuming deliveries of Max aeroplanes”.

The latest setback for Boeing comes after the Saudi airline signed a $5.9 billion deal for the Boeing aircraft in December but found it impossible to keep waiting for Boeing's regulatory hurdles to clear. Flyadeal said the order would “result in Flyadeal operating an all-Airbus A320 fleet in the future”.

This is hardly the last order cancellation for Boeing which has hundreds of billions at stake in its order backlog as the 737 MAX remains grounded worldwide and regulators must approve the fix and new pilot training before the jets can fly again. Oman Air warned in June it would hold talks with Airbus if Boeing did not provide support and recovery for the MAX. Meanwhile, Emirati carrier flydubai said in April it could order A320neos as replacements for the MAX jets.

Meanwhile, telegraphing that the MAX will remain grounded for even longer than anticipated, on Friday Europe’s aviation regulator outlined five major requirements it wants Boeing to address before it will allow the planemaker’s 737 Max to return to service, according to Bloomberg. One of them, about the jet’s autopilot function, hasn’t surfaced previously as an area of concern.

The European Union Aviation Safety Agency has sent its list to both the U.S. Federal Aviation Administration and Boeing; The FAA hasn’t publicly discussed details about what changes it’s demanding on the Max, so it’s difficult to know whether the EASA demands differ dramatically -- and whether they would significantly boost the cost and time to get the Max back in the air.

EASA’s checklist includes a number of issues that have been disclosed: the potential difficulty pilots have in turning the jet’s manual trim wheel, the unreliability of the Max’s angle of attack sensors, inadequate training procedures, and a software issue flagged just last week by the FAA pertaining to a lagging microprocessor. But the agency also listed a previously unreported concern: the autopilot failing to disengage in certain emergencies.

“Any of these could significantly affect the return to service, but we don’t know if they are actually going to become requirements or are they just items for discussion,’’ said John Cox, a former 737 pilot who is president of the aviation consulting company Safety Operating Systems.

Via Zero Hedge

Authored by Marshall Auerback, this article was produced by Economy for All, a project of the Independent Media Institute,

Many of us are familiar with the acronym “FUBAR.” A recent New York Times article on the Boeing 737 fiasco provides a perfect illustration of the concept. We’re now learning that the company “built deadly assumptions” into its newly designed 737 Max aircraft and, specifically, its Maneuvering Characteristics Augmentation System (MCAS).

Even worse, the Times account concludes that the recent air crashes that have resulted in a worldwide grounding of the Boeing Max plane “might have been avoided, if employees and regulators had a better understanding of MCAS” and if the US Federal Aviation Authority (FAA) itself was not operating with outdated data on the software changes (which Boeing failed to provide).

The analysis is excellent as far as it goes. But the most damning fact only briefly hinted at in the article is that the problems were evident as early as 2012, some five years before the newest 737 version was marketed and sold across the globe.

At its core, this was a hardware problem, not a software issue. Even when Boeing was using a relatively “safer” version of the early MCAS software (that was later changed to a more dangerous version), the new 737 still had an engine too large to be accommodated in its traditional spot on the plane, which ultimately distorted “the relationship between the engine’s ‘thrust’ and its center of gravity,” as I’ve written before. The resultant aerodynamic problems could not be solved with a software “solution,” no matter how “safe” the original MCAS version (that was ultimately changed to an even more dangerous version) was purported to be.

Just don’t expect any blowback from Washington. The whole episode provides yet another sick illustration of how the entire system of governance in the US has degenerated into a fully fledged “predator state.” About the only good thing that might emerge from this whole fiasco is that Boeing will provide future Master of Business Administration students with a textbook example of how not to manage a crisis. Likewise, future historians and political scientists will marvel in incredulity at the magnitude of corruption that enveloped the US during this very dark time in the life of the republic. Assuming, of course, that there still anything left worth studying by that point.

This is also a story of deception, as The New York Times points out. Throughout the process, Boeing also actively misled the FAA whenever the industry regulatory overseer raised questions. Who was the agent of deception?

In this account, the Times identifies one of the leading protagonists responsible for the Boeing disaster, Mark Forkner. Forkner was “the Max’s chief technical pilot” – not merely a “test pilot” – who was in charge of the plane’s training manuals. More significant, he was Boeing’s point man who neglected to tell the FAA that the MCAS software “was in the midst of an overhaul, according to … three FAA officials.” Forkner requested removing the description of the MCAS from the pilot’s manual, and, as The New York Times reports, “Under the impression that the system was relatively benign and rarely used, the FAA eventually approved Mr Forkner’s request, the three officials said.”

The question is, was Forkner intentionally deceptive, or simply incompetent?

In his defense, the Times suggests that “Mr Forkner largely worked on flight simulators, which didn’t fully mimic MCAS,” implying perhaps that he didn’t have a full understanding of the MCAS software overhaul. If true, that would suggest that Boeing’s senior management wrongly appointed an incompetent to deal with the FAA.

The other interpretation is that Forkner’s lawyer might be telegraphing a legal defense, diminishing his role in anticipation of a lawsuit. That may be less credible, given that Forkner himself was a former FAA employee, thus in effect a revolving-door technological lobbyist (unregistered) who would therefore be well placed to deceive the FAA training-certification engineers into approving whatever training cover-ups Boeing needed to hide to sell more airplanes. Whenever the FAA pushed, Forkner pushed back.

The New York Times also parenthetically mentions that Forkner started his flying career as a US Air Force pilot. Given how the USAF conducts its own lobbying activities in DC, this was likely a formative influence on his revolving-door ethics and yet another example of the polluting influence of the military on a once successful civilian enterprise, given the Pentagon’s (especially the USAF’s) own pathologies in this area.

Even if Forkner is ultimately absolved of responsibility, it does not absolve Boeing. Rather, it represents a monumental management failure on the part of its stability and control aerodynamicists, not its software engineers.

Recall that the genesis of this disaster was a problem of hardware, not just MCAS. The extra lift of the far larger-diameter engines of the 737 Max (placed on a different position on the wing) caused the plane to pitch up whenever it approached stall angles of attack at both high and low speeds. This is a problem that should have become glaringly obvious to the greenest of aerodynamics personnel at Boeing the moment the first wind-tunnel model was tested at angles of attack higher than stall (it may have even been obvious on even earlier fluid-dynamics computer-simulation results).

The New York Times notes the observations of Ray Craig, then Boeing’s chief test pilot, that the plane wasn’t flying smoothly even during the early development phase (that is, in 2012, five years before the first sales). After high-speed tests flown in the computer simulator, Craig noted that the newer model was not flying as well as the old model. In response, he advocated a hardware solution to rectify the problem, which Boeing management rejected on the grounds that such “high-speed situations were so rare that … the software would never actually kick in,” the first of many assumptions that would ultimately prove fatal in the two eventual plane crashes.

Reading between the lines, however, it is evident that the original software designers were aware of and had already quantified the pitch-up problem in the plane (which arose because of the larger engine that had affected the plane’s center of gravity) and therefore had already programmed it into the simulator before the test pilot runs in 2012.

To mitigate the hardware flaws, The New York Times explains that “engineers initially designed MCAS to trigger when the plane exceeded at least two separate thresholds, according to three people who worked on the 737 Max. One involved the plane’s angle to the wind, and the other involved so-called G-force, or the force on the plane that typically comes from accelerating.”

It is true that the initial MCAS software for the high-speed problem was a relatively safe and competent two-sensor, G-force and angle-of-attack solution. The problem is that this “fix” would not work at low speeds because G-forces at low speed were too small to trigger an alarm in the 737 Max.

It is almost beyond belief that, once having tested and found a high-speed pitch-up problem programmed into the simulator in 2012, no one – neither the chief test pilot nor the aerodynamicists (the engineers responsible for the interaction of moving objects, such as airplanes with the atmosphere) – thought to check the wind-tunnel data or test the simulator to see whether there was a corresponding low-speed pitch-up problem.

I previously highlighted that low-speed pitch-up is far more dangerous than the relatively rare problem of very “heavy” or high angle-of-attack maneuvering at high speed. This is because takeoffs and landings occur at low speed, and takeoffs and landings are always done at relatively high angles of attack. But it was not until the 737 Max prototype was flown four years later – in 2016 – that anyone reported a low-speed pitch-up problem, and then it was not an aerodynamicist but, once again, a test pilot (Ed Wilson, the new chief test pilot for the plane) who insisted there was an issue.

Here is where the problems began to cascade. Since Boeing management had already imposed the MCAS Band-Aid (in lieu of a hardware fix, albeit a relatively safe version), the cheapest, quickest and easiest-to-cover-up fix for the impossible-to-ignore low-speed problem was to issue a new, and even more ineffective, Band-Aid to the existing MCAS. In the process, it changed MCAS from a relatively safe and competent fix to a disastrously unsafe, mindlessly stupid single-sensor solution. As The New York Times reported:

“The change proved pivotal. Expanding the use of MCAS to lower-speed situations required removing the G-force threshold. MCAS now needed to work at low speeds so G-force didn’t apply.

“The change meant that a single angle-of-attack sensor was the lone guard against a misfire. Although modern 737 jets have two angle-of-attack sensors, the final version of MCAS took data from just one.”

Amazingly, the change was not subject to any further scrutiny from the FAA because, according to William Schubbe, whom the Times describes as “a senior FAA official who worked with the training group,” Boeing had told him that “this thing is so transparent to the pilot that there’s no need to demonstrate any kind of failing.” In any event, the FAA had already repeatedly shown itself to be out of its depth in terms of determining the overall safety of the plane, having in effect subcontracted much of its oversight to Boeing itself.

The Boeing 737 crashes are tragedies. But what truly moves this tragedy into the realm of sheer predation and, indeed, criminality, is the (non-)response of the US government. In spite of everything we now know, there has been no rethink of amending this long-standing laissez-faire revolving-door regulatory approach, especially in the current White House. Consider that the newly appointed secretary of defense, Patrick Shanahan, a former Boeing executive, is already under investigation for allegedly lobbying improperly on behalf of his former company.

Additionally, the administration of President Donald Trump is rolling back safety regulations in the rail sector, in effect re-creating the self-regulatory conditions that now prevail at the FAA, reports Justin Mikulka from Desmog. In short, Trump’s predatory practices continue unabated: the swamp gets filled up even further as more of these fiascos occur. And the truth is that until regulatory bodies like the FAA get a proper budget that will allow them to take on the job of becoming credible third-party regulators, their actions will continue to prove ineffectual.

We can only imagine what is next – allowing the criminals to regulate the prison system? Beyond the scale of human tragedy, the whole episode provides another sad illustration that our system of governance remains profoundly sick, perhaps terminal. Washington policymakers continue to make the citizenry even more ill through their venal corruption – that is, when their political malpractice doesn’t literally kill them in the process.

From Zero Hedge

By Tyler Durden

As the jarring truth about Boeing's "cost-cutting above all" philosophy involving the company's deadly, ill-fated 737 MAX (or whatever the company's ill-fated plane may be called soon) receives an ever-wider public appreciation, the company is finding it increasingly difficult to do business as usual.

Take the Paris Air Show, traditionally the venue where the world's largest aircraft makers lock in deals worth tens of billions of dollars. Well, the first day of the 2019 edition of this boondoggle couldn't have gone any worse for Boeing, and alternatively it couldn't have been better for Airbus, which locked in $13 billion in orders for new jets.

Boeing's tally? $0.

Among those lining up to order Europe's iconic (if subsidized) airlines included Air Lease Corp., the giant US leasing company, which agreed to buy planes worth $11 billion before customary discounts, including the new A321XLR. Virgin Atlantic also bought eight A330 wide-bodies with options for six more.

And that's just the beginning: according to Airbus CEO Guillaume Faury, "there’s room to run up the score", as Bloomberg reports, and with good reason: while Boeing is scrambling to drag the name of its workhorse 737 Max out of the mud as it languishes on the tarmac - literally - after it was idled indefinitely in March after two deadly crashes, Airbus said it was seeing “very strong demand” for its rival A320 family of single-aisle jets.

“As far as we are concerned, you should expect a very positive Paris Air Show with a lot of orders,” Faury said in an interview with Bloomberg Television. Boeing... not so much.

Which is ironic, because just one year ago, the tables were turned. Back then, Airbus, having just gone through a jarring management transition - fallout from a multi-year bribery investigation - announced 431 orders valued at $62 billion at the alternating Farnborough air show in the U.K. That lagged Boeing’s commitments for 528 jetliners valued at $79 billion through the week last year.

Of course, most of the Boeing buyers are now considering whether to cancel their orders depending on what the fate of the MAX will be.

So it is now Airbus' moment in the sun: according to Bloomberg, "the Air Lease order in particular provided a vote of confidence in the A321XLR, a twin-engine jet that can travel 4,700 nautical miles, more than any other narrow-body on the market. The plane is positioned as a more fuel-efficient successor to Boeing’s discontinued 757, able to connect smaller cities that can’t support service by big wide-body jets."

The model is also meant to take the wind out of the sails of Boeing’s planned “new midmarket airplane,” or NMA. That jet, dubbed the 797 by analysts, is on hold while the Chicago-based company works through the Max crisis. Airbus’s decision to start sales of the XLR could help sway customers who had been looking at both options.

Airbus’s Air Lease deal also included the A220 plane that the Toulouse, France-based company acquired last year from Canada’s Bombardier Inc. and has been marketing harder, providing a further fillip.

Defiant, Boeing CEO Dennis Muilenburg, gave no ground on either the Max or the NMA, saying that the former will return to service before the end of 2019 and remain the backbone of the company’s short-haul strategy for years to come, in a Bloomberg Television interview. He may be overly optimistic if the best strategy Boeing can come up with is rebranding the plane in hopes of putting its troubles away.

As we reported earlier, CFO Greg Smith said - in all seriousness - that the Max’s branding could be dropped depending on an assessment of consumer and airline sentiment. Perhaps observing the uniform derision that greeted the news, Boeing emphasized in a subsequent statement that it had no immediate plans for a name change.

But if the first day was bad, the final airshow total will be devastating for Boeing. According to aviation consultancy IBA Group, firm and outline orders will total 575 planes, with 435 going to Airbus. That would compare with close to 1,000 at Farnborough.

"Like Farnborough 2018, the Paris Air Show started relatively slowly," Morris said, suggesting Monday’s action would be eclipsed in coming days. "Perhaps the fashion is now for Day 3 to be the high-water mark."

Which begs the question: yes, buyers may be recoiling at the thought of buying a Boeing, so to speak, but just how much of a global collapse is there in aircraft demand right now, and is that an indicator that the global recession has - as Morgan Stanley mused earlier today - indeed arrived?

From Aviation Tribune

By Aviation Tribune

The Antonov AN-225 is known to be the largest cargo aircraft in the world. Developed in the 1980’s, so far just one model has been introduced onto the market. However, a second Antonov AN-225 which has been in development since the cold war, is now speculated to be near to completion.

So, just how close to completion is the second Antonov AN-225 and why has the aircraft generated such a huge reputation?

What is the Antonov AN-225?

The original Antonov AN-225 first took to the skies in 1988. The manufacturer named the plane “Mriya”, which translates to “Dream” in Ukrainian. It is the largest cargo plane ever to be built and has remained in service since its launch.

It was originally created to transport spacecraft as the United States and the Soviet Union were interlocked in a space race at the time. There wasn’t any aircraft large enough to transport the large equipment and spacecraft, so Antonov was tasked with building one.

It took just three years to build Mriya, and she successfully completed her original mission of delivering a Buran spacecraft over to Baikonur. Even decades later, Mriya remains the heaviest and largest cargo plane ever built. As it is so large, the pilots flying the plane need to undergo specialist training. This ensures they can successfully deal with the challenges which come from trying to manoeuvre the aircraft.

As the first AN-225 was successful, the Soviet Union planned to build an additional three models. Work began on the second in 1989 but was doomed when the Soviet Union collapsed in 1991. Although work continued on the aircraft, it eventually came to a stop in 1994.

What is the current state of the second Antonov AN-225?

The second AN-225 has sat half-built in a Ukraine warehouse for decades. However, in 2016, China signed a deal with Antonov to restart the second plane production. The initial goal was to complete the construction of the second plane by 2019. So, now we’ve reached that milestone, is the plane any closer to completion?

As of September 2018, the second AN-225 remains incomplete. It is thought to be around 70% completed, but additional funding is required. Antonov is hoping to secure from £190 million to £270 million in order to finalise the build.

The benefits and specifications of the AN-225

The AN-225 boasts extraordinary benefits and specifications. With just one operational model in the world, it’s unsurprisingly gathered interest from some of the biggest plane charter companies such as Chapman Freeborn.

Powered by six turbo engines, the plane is capable of traveling 9569 miles with a full fuel tank. Considering its huge size, it’s surprisingly fast too. It benefits from a maximum speed of 528mph, and a cruising speed of 497mph. One of its most impressive specifications is the fact it can carry a massive 250 tonnes of weight.

The Antonov AN-225 is certainly an impressive model. If the second plane is finalized, it offers a lot of potential in the cargo sector. Being able to move large loads would reduce the need for multiple trips, in turn benefitting the environment. All of the parts of the second plane have been manufactured. It just needs the additional funding to finish the build. Experts claim that once there is a demand for this type of carrier, it won’t take long to finalize it and get it in the air.

From Airline Ratings

By Steve Creedy

There is no timetable to return the Boeing 737 MAX back to flight and the decision will depend solely on whether or not the jet is deemed to be safe, a senior US Federal Aviation Administration official has said.

The comments came as the FAA and representatives of other global regulators met in an attempt to get a co-ordinated response to the grounding of the 737 MAX fleet after two fatal accidents.

Elwell was asked whether airlines that had taken the MAX out of their schedules would need to revise their plans to take into account a longer wait.

“No they don’t need to make any changes to their plans,’’ FAA acting head Daniel Elwell told CNBC. “But they just need to know there isn’t a timetable for bringing the 737 MAX back to flight.

“There are only one criteria: when we’re done without analysis and it’s safe to bring let the 737 MAX fly again.”

Elwell said it could be a month, two months or longer but it would depend on the FAA’s analysis of a software fix for the aircraft’s flight control software.

The FAA would prefer the lifting of the grounding to be global but there has been pushback from some regulators, including the Europeans.

Elwell would not be drawn on whether pilots needed to take simulator training before flying the jet again and said training was still under review.

Elwell said it was the FAA’s responsibility to make the approval and it would be the first to do so regardless.

“And if the rest of the world agrees with our analysis, which is why we have 33 countries here today, then that is the goal,” he said.

Four audits and investigations are underway into the FAA’s certification processes but Elwell said the MAX had been certified in the same way every aircraft had been certified and had made aviation the safest mode of transportation.

“We rely on those processes but we don’t sit still on those processes,’’ he said.

“We’re constantly learning how to refine them. The American public and the world will see that the 737 MAX is safe when we return it to flight and they’ll get back on the MAX and fly it again.”

“Our team, our airline customers, and regulators place the highest priority on the safety of the flying public,’’ Boeing said in a statement.

“Once we have addressed the information requests from the FAA, we will be ready to schedule a certification test flight and submit final certification documentation.”

From Zero Hedge

By Tyler Durden

It seems like barely a day goes by without the Wall Street Journal or some other news organization publishing some alarming scoop about oversights or unexplained lapses at Boeing or the FAA during the certification process of the 737 MAX 8.

We've already learned that Boeing didn't realize until after the Lion Air crash back in October that a warning system meant to alert pilots when MCAS - the anti-stall software suspected in contributing to two deadly crashes - was malfunctioning had been made an optional feature on all of the 737 8s it sold to Southwest, its largest customer. And neither did the FAA.

Now, ahead of a hearing before a House Transportation subcommittee on Wednesday, WSJ is reporting that senior FAA officials weren't involved in the agency's review of MCAS, despite the unprecedented power delegated to the system in the new generation of 737s, because the agency viewed the system as a "non-critical safety risk."

Asked how it arrived at this conclusion, the agency told WSJ that Boeing hadn't designated MCAS as a critical system, and the agency simply took the aerospace company at its word.

• The results, these officials said, also indicate that during the certification process, Boeing didn’t flag the automated stall-prevention feature as a system whose malfunction or failure could cause a catastrophic event. Such a designation would have led to more intense scrutiny. FAA engineers and midlevel managers deferred to Boeing’s early safety classification, the inquiry determined, allowing company experts to conduct subsequent analyses of potential hazards with limited agency oversight. Boeing employees who served as designated agency representatives signed off on the final design, according to people familiar with the findings.
• The people who described the report didn’t specify what information and safety data Boeing shared with the FAA during the approval process, a topic that is a major focus of various ongoing investigations. Also at issue is whether agency officials performed any assessment on their own about the system’s initial safety classification, according to aviation industry officials, pilot unions and others tracking the investigations.

According to the report details leaked to WSJ, it's not clear why Boeing didn't designate MCAS as a 'critical system', though the FAA doesn't believe the company intentionally violated any certification rules. It's also unclear what kind of oversight process, if any, the FAA exercised over Boeing's decision. Boeing, in turn, said that it didn't feel the system was 'critical' - and that relying on a single sensor for flight data was appropriate - because pilots could simply switch MCAS off. Though that didn't pan out in practice, as the pilots of the Lion Air and Ethiopian Airlines flights both tried, and failed, to disable MCAS before the system forced their planes into a deadly downward dive.

• The FAA’s administrative review, launched in March in the wake of the second fatal crash, didn’t uncover efforts by Boeing to flout certification rules or intentionally provide faulty data to the FAA, according to people familiar with the findings. But it remains unclear what formal processes the FAA had in place to conduct an assessment independent of the initial determination by Boeing—that MCAS wasn’t critical to safety and therefore didn’t warrant close FAA scrutiny.

Still, the FAA doesn't really have an explanation for why it delegated so much authority to Boeing.

• In testimony to the Senate Commerce, Science and Transportation Committee two months ago, Mr. Elwell said detailed safety assessment and approval of the suspect system was "delegated," or handed over, to Boeing relatively early in the approval process under standard procedures. But he didn’t tell senators how that initial decision was reached or exactly what role FAA officials played in subsequent safety assessments.

The revelations come as Congress has subpoenaed representatives from pilots unions and the major airlines to testify. The DOT is also ramping up its own investigation. One thing is becoming increasingly clear: Before the grounding of the 737 MAX 8 is lifted, lawmakers are going to want answers to why these lapses in oversight occurred.

From The Seattle Times

By Dominic Gates

The pilots of the Ethiopian Airlines 737 MAX that crashed last month appear to have followed the emergency procedure laid out by both Boeing and the Federal Aviation Administration — cutting off the suspect flight-control system — but could not regain control and avert the plunge that killed all 157 on board.

Press reports citing people briefed on the crash investigation’s preliminary findings said the pilots hit the system-cutoff switches as Boeing had instructed after October’s Lion Air MAX crash, but couldn’t get the plane’s nose back up. They then turned the system back on before the plane nose-dived into the ground.

While the new software fix Boeing has proposed will likely prevent this situation recurring, if the preliminary investigation confirms that the Ethiopian pilots did cut off the automatic flight-control system, this is still a nightmarish outcome for Boeing and the FAA.

It would suggest the emergency procedure laid out by Boeing and passed along by the FAA after the Lion Air crash is wholly inadequate and failed the Ethiopian flight crew.

A local expert, former Boeing flight-control engineer Peter Lemme, recently explained how the emergency procedure could fail disastrously. His scenario is backed up by extracts from a 1982 Boeing 737-200 Pilot Training Manual posted to an online pilot forum a month ago by an Australian pilot.

That old 737 pilot manual lays out a scenario where a much more elaborate pilot response is required than the one that Boeing outlined in November and has reiterated ever since. The explanation in that manual from nearly 40 years ago is no longer detailed in the current flight manual.

Just a week after the Oct. 29 Lion Air crash, Boeing sent out an urgent bulletin to all 737 MAX operators across the world, cautioning them that a sensor failure could cause a new MAX flight-control system to automatically swivel upward the horizontal tail — also called the stabilizer — and push the jet’s nose down.

Boeing’s bulletin laid out a seemingly simple response: Hit a pair of cutoff switches to turn off the electrical motor that moves the stabilizer, disabling the automatic system — known as the Maneuvering Characteristics Augmentation System, or MCAS. Then swivel the tail down manually by turning a large stabilizer trim wheel, next to the pilot’s seat, that connects mechanically to the tail via cables.

Boeing has publicly contended for five months that this simple procedure was all that was needed to save the airplane if MCAS was inadvertently activated.

In a November television interview on the Fox Business Network, Boeing Chief Executive Dennis Muilenburg, when asked if information had been withheld from pilots, cited this procedure as “part of the training manual” and said Boeing’s bulletin to airlines “pointed to that existing flight procedure.”

Vice president Mike Sinnett repeatedly described the procedure as a “memory item,” meaning a routine that pilots may need to do quickly without consulting a manual and so must commit to memory.

But Lemme said the Ethiopian pilots most likely were unable to carry out that last instruction in the Boeing emergency procedure — because they simply couldn’t physically move that wheel against the heavy forces acting on the tail.

“The forces on the tail could have been too great,” Lemme said. “They couldn’t turn the manual trim wheel.”

The stabilizer in the Ethiopian jet could have been in an extreme position with two separate forces acting on it:

• MCAS had swiveled the stabilizer upward by turning a large mechanical screw inside the tail called the jackscrew. This is pushing the jet’s nose down.
• But the pilot had pulled his control column far back in an attempt to counter, which would flip up a separate movable surface called the elevator on the trailing edge of the tail.

The elevator and stabilizer normally work together to minimize the loads on the jackscrew. But in certain conditions, the elevator and stabilizer loads combine to present high forces on the jackscrew and make it very difficult to turn manually.

As the jet’s airspeed increases — and with nose down it will accelerate — these forces grow even stronger.

In this scenario, the air flow pushing downward against the elevator would have created an equal and opposite load on the jackscrew, a force tending to hold the stabilizer in its upward displacement. This heavy force would resist the pilot’s manual effort to swivel the stabilizer back down.

This analysis suggests the stabilizer trim wheel at the Ethiopian captain’s right hand could have been difficult to budge. As a result, the pilots would have struggled to get the nose up and the plane to climb.

If after much physical exertion failed, the pilots gave up their manual strategy and switched the electric trim system back on — as indicated in the preliminary reports on the Ethiopian flight — MCAS would have begun pushing the nose down again.

Boeing on Wednesday issued a statement following the first account, published Tuesday night by The Wall Street Journal, that the Ethiopian pilots had followed the recommended procedures.

“We urge caution against speculating and drawing conclusions on the findings prior to the release of the flight data and the preliminary report,” Boeing said.

However, a separate analysis done by Bjorn Fehrm, a former jet-fighter pilot and an aeronautical engineer who is now an analyst with Leeham.net, replicates Lemme’s conclusion that excessive forces on the stabilizer trim wheel led the pilots to lose control.

Fehrm collaborated with a Swedish pilot for a major European airline to do a simulator test that recreated the possible conditions in the Ethiopian cockpit.

A chilling video of how that simulator test played out was posted to YouTube and showed exactly the scenario envisaged in the analysis, elevating it from plausible theory to demonstrated possibility.

The Swedish pilot is a 737 flight instructor and training captain who hosts a popular YouTube channel called Mentour Pilot, where he communicates the intricate details of flying an airliner. To protect his employment, his name and the name of his airline are not revealed, but he is very clearly an expert 737 pilot.

In the test, the two European pilots in the 737 simulator set up a situation reflecting what happens when the pre-software fix MCAS is activated: They moved the stabilizer to push the nose down. They set the indicators to show disagreement over the air speed and followed normal procedures to address that, which increases airspeed.

They then followed the instructions Boeing recommended and, as airspeed increases, the forces on the control column and on the stabilizer wheel become increasingly strong.

After just a few minutes, with the plane still nose down, the Swedish 737 training pilot is exerting all his might to hold the control column, locking his upper arms around it. Meanwhile, on his right, the first officer tries vainly to turn the stabilizer wheel, barely able to budge it by the end.

If this had been a real flight, these two very competent 737 pilots would have been all but lost.

The Swedish pilot says at the start of the video that he’s posting it both as a cautionary safety alert but also to undercut the narrative among some pilots, especially Americans, that the Indonesian and Ethiopian flight crews must have been incompetent and couldn’t “just fly the airplane.”

Early Wednesday, the Swedish pilot removed the video after a colleague advised that he do so, given that all the facts are not yet in from the ongoing investigation of the crash of Flight 302.

More detailed instructions that conceivably could have saved the Ethiopian plane are provided in the 1982 pilot manual for the old 737. As described in the extract posted by the Australian pilot, they require the pilot to do something counterintuitive: to let go of the control column for a brief moment.

As Lemme explains, this “will make the nose drop a bit,” but it will relax the force on the elevator and on the jackscrew, allowing the pilot to crank the stabilizer trim wheel. The instructions in the old manual say that the pilot should repeatedly do this: Release the control column and crank the stabilizer wheel, release and crank, release and crank, until the stabilizer is swiveled back to where it should be.

The 1982 manual refers to this as “the ‘roller coaster’ technique” to trim the airplane, which means to get it back on the required flight path with no force pushing it away from that path.

“If nose-up trim is required, raise the nose well above the horizon with elevator control. Then slowly relax the control column pressure and manually trim nose-up. Allow the nose to drop below the horizon while trimming (manually). Repeat this sequence until the airplane is trim,” the manual states.

The Australian pilot also posted an extract from Boeing’s “Airliner” magazine published in May 1961, describing a similar technique as applied to Boeing’s first jet, the 707.

Clearly this unusual circumstance of having to move the stabilizer manually while maintaining a high stick force on the control column demands significant piloting skill.

“We learned all about these maneuvers in the 1950-60s,” the pilot wrote on the online forum. “Yet, for some inexplicable reason, Boeing manuals have since deleted what was then — and still is — vital handling information for flight crews.”

Aviation safety consultant John Cox, chief executive of Safety Operating Systems and formerly the top safety official for the Air Line Pilots Association, said that’s because in the later 737 models that followed the -200, what was called a “runaway stabilizer” ceased to be a problem.

Cox said he was trained on the “roller coaster’ technique” back in the 1980s to deal with that possibility, but that “since the 737-300, the product got so reliable you didn’t have that failure,” said Cox.

However, he added, the introduction of MCAS in the 737 MAX creates a condition similar to a runaway stabilizer, so the potential for the manual stabilizer wheel to seize up at high airspeed has returned.

Cox said the failure of both Boeing and the FAA to warn pilots of this possibility will be “a big issue” as the Ethiopian crash is evaluated.

“I don’t think Boeing realized the complexity of the failure,” he said.

The procedure Boeing recommended to airlines after the Lion Air crash, which was repeated in an airworthiness directive issued by the FAA, includes a line near the bottom that “higher control forces may be needed to overcome any stabilizer nose-down” position. The instructions add that the pilots can use the electric system to neutralize the forces on the control column before hitting the cut-out switches.

But there’s no indication whatever in the wording that this is essential, and that heavy forces could render the manual stabilizer wheel almost immovable if the control column is not relaxed.

It’s possible the Ethiopian pilots, hyper alert after the Lion Air accident to the possibility that MCAS had activated, jumped straight to the end of the procedure checklist and hit the cut-off switches before attempting even to counter the nose-down movement with the thumb switches on the control column.

That would have subjected them almost immediately to the high tail forces that could have made recovery impossible.

The good news for Boeing is that the proposed software fix announced for MCAS should prevent the failure that led to this scenario in the cockpit.

“I think the MAX will be safe with the improved MCAS,” said Fehrm of Leeham.net.

On Wednesday, CEO Muilenburg joined Boeing test pilots aboard a 737 MAX 7 flight out of Boeing Field for a demonstration of the MCAS software fix and a test of various failure conditions. “The software update worked as designed,” Boeing said.

The bad news for Boeing is twofold, according to Fehrm. First, the original MCAS design was badly flawed and appears to be the principal cause of the Lion Air crash. Second, the procedure Boeing offered after that accident to keep planes safe now appears to have been woefully inadequate and may have doomed the Ethiopian Airlines jet.

On Wednesday the FAA , facing worldwide skepticism of its oversight, announced that it is establishing a team including foreign regulators to conduct a “comprehensive review of the certification of the automated flight control system on the Boeing 737 MAX aircraft.”

The Joint Authorities Technical Review, chaired by former NTSB Chairman Chris Hart and including experts from the FAA, NASA, and international aviation authorities, will evaluate all aspects of MCAS, including its design and pilots’ interaction with the system.

The preliminary investigation report into the Ethiopian crash is expected early Thursday and should offer definitive detail on what happened in the cockpit.

From Zero Hedge

Last month, we reported that Boeing slashed production of the troubled 737 Max from 52 to 42 airplanes per month. Now, a new report from the Financial Times shows how production cuts are set to drive some of the company's suppliers into financial hardship.

Spirit AeroSystems, a 737 Max supplier that produces 70% of the plane's aerostructure, pulled its 2019 financial guidance, warning that past guidance is no longer valid because of the production cuts and no visible timeframe of when the planes will be back in the air.

Financial Times notes that Spirit AeroSystems is for right now, insulated from the cuts because it worked out a deal with Boeing to continue producing at the old rate (52 planes). The supplier is quickly building inventory at its facilities. They're only a few of the suppliers that are producing at the old rate, while others have transitioned to 42 per month, a 20% decline from the old rate.

Safran, a French multinational aircraft engine company with a joint venture with General Electric that produces engines for the Max, expects a $224 million hit in the next quarter.

GE's new chief executive Henry Culp recently confirmed a similar view: "We probably have something in that same range as a headwind with respect . . . to our own side of the [CFM joint venture] in the second quarter."

Woodward, a Max supplier that produces avionics, seats and engine covers, said its production hadn't been affected by the Max slowdown, though it said the company holds no contractual agreements with Boeing that guarantees a specific production rate. "We are contracted to flex with them," chief executive Thomas Gendron told investors on an earnings call. Gendron said like many other suppliers in the Max supply chain, the downtime has been used to catch up on previous production delays.

He warned about "uncertainties and some risks in the second half" due to limited guidance from Boeing about production and ungrounding of the planes.

We reported that Boeing plans to coordinate with customers and suppliers to blunt the financial impact of the slowdown, and for now it doesn't plan to lay off workers from the Max program.

"When the Max returns to the skies, we've promised our airline customers and their passengers and crews that it will be as safe as any airplane ever to fly," Boeing Chief Executive Officer Dennis Muilenburg said in an April statement.

Boeing had planned to hike output of the Max, a workhorse for budget carriers, about 10% by midyear, to meet the backlogs.

As we noted, suppliers who provide the 600,000 parts needed for each plane had already started moving toward a 57-jet monthly pace under a carefully orchestrated schedule set in place long before the Lion Air and Ethiopian Airlines disasters, and it seems those suppliers could be hit with production declines in 2Q or possibly sometime in the 2H.

The bigger question, as we previously detailed, is what effect a 20% cut to Boeing's production will have on US GDP in Q2?

...a recessionary catalyst may be the fiasco involving the Max, which according to JPM economist Michael Feroli, could begin impacting the economic dataflow. According to the biggest US bank, the issues affecting the Max should have no short-run impact on GDP, as the production of this airplane is continuing, but will affect the composition of GDP, implying more growth in inventories and less growth of business investment and gross exports.

However, if the issues are not resolved in a timely manner and production of the Max needs to be halted for an extended period of time, it would send many of Boeing's suppliers into financial stress and could even shave off about 0.15% off the level of GDP, or about 0.6%-point off the quarterly annualized growth rate of GDP in the quarter in which production is stopped.

From Zero Hedge

By Tyler Durden

Following a series of conflicting reports claiming that Boeing didn't inform the FAA or Southwest, the largest buyer of its 737 MAX 8 planes, that a safety alert warning pilots that an 'angle-of-attack' sensor on the planes might be feeding the system erroneous data, risking a misfire of the plane's anti-stall software, had been made an 'optional' safety feature, Boeing has admitted that it wasn't aware that the alerts had been disabled when it initially delivered the planes, and that it waited more than 13 months, until after the Oct. 29 crash of a 737 MAX 8 owned by Indonesia's Lion Air, to inform its regulator that it had inadvertently disabled the alerts.

A series of reports by the Wall Street Journal over the past two weeks uncovered the fact that Boeing had made the alerts - which it insists were not a critically important safety feature - optional. Shortly after that initial report, WSJ published a follow up suggesting that Boeing's decision to disable the alerts was inadvertent, though a spokesman declined to elaborate about how this happened.

Finally, on Sunday, Reuters and WSJ confirmed that the decision was, in fact, unintentional, but Boeing still waited to inform its regulator and its customers that the alerts had been disabled on planes that didn't include an 'optional' package of additional safety figures.

This is the first time since the crash of the Lion Air flight and a subsequent deadly crash on March 10 that Boeing has admitted doing something inadvertently during the development of the 737 MAX 8.

However, as we noted in our prior coverage, Boeing's insistence that the alerts weren't critical to safety appears to conflict with the preliminary findings from an investigation into the Ethiopian Air crash, which determined that the pilots of the doomed flight were taken by surprise when MCAS - the slight's anti-stall system - activated and started pushing the nose of the plane down. Their efforts to deactivate the system were unsuccessful, and after manually raising the nose of the plane four times, the plane plunged out of the sky and crashed into a field outside Addis Ababa, killing all 157 people on board.

Some analysts have argued that if the pilots of the doomed Lion Air and Ethiopian Air flights had been alerted to the misfire, that more than 350 lives could have been saved.

• Boeing has said the feeding of erroneous Angle of Attack data to a system called MCAS that pushed the planes lower was a common link in two wider chains of events leading to both crashes, but has stopped short of admitting error on that front.
• The angle of attack measures the angle between the air flow and the wing and helps determine whether the plane is able to fly correctly. If the angle becomes too steep, the flow of air over the wing is disturbed, throwing the plane into an aerodynamic stall. That means it starts to fall instead of fly.
• Although the angle itself is key for onboard systems, the industry has debated for years whether such data should be included in already crowded cockpit displays because it is directly related to airspeed, which pilots already scrutinize.
• Some analysts and academics say having the AOA Disagree alert installed would have helped Lion Air maintenance crew diagnose a problem on the penultimate flight of the 737 MAX jet that crashed in October, killing all 189 on board.

Boeing blamed the mistake on software delivered by a third-party vendor. The company was let off the hook by the FAA after it came clean, with nothing more than a stern warning.

• Boeing said a Safety Review Board convened after a fatal Lion Air crash in Indonesia last October corroborated its prior conclusion that the alert was not necessary for the safe operation of commercial aircraft and could safely be tackled in a future system update.
• The FAA backed that assessment but criticized Boeing for being slow to disclose the problem.
• Boeing briefed the FAA on the display issue in November, after the Lion Air accident, and a special panel deemed it to be “low risk,” an FAA spokesman said.
• "However, Boeing’s timely or earlier communication with the operators would have helped to reduce or eliminate possible confusion," he added.
• Boeing attributed the error to software delivered to the company from an outside source, but did not give details.

Boeing is working on a software update for the 737 MAX 8 to make MCAS less powerful and also ensure that two sensors are always feeding flight data to both the plane's internal systems and the cockpit. The company has said the update could be finished as early as this week, after it completes a final series of test flights.

However, Boeing's apparent lack of awareness about the functionality of the safety features on its jets is simply staggering. What's more amazing is that the market has been unwilling to punish the company's shares even after this latest batch of revelations that appeared to suggest that Boeing misled the FAA (shares were down Monday, but the move was appeared to be triggered by the broad-based selloff inspired by Trump's tariff threats).

From Zero Hedge

By Tyler Durden

It was a bad enough look for Boeing when reporters uncovered the company's decision to make some safety features optional on its 737 MAX 8s. Worse still that this decision was only made public after the deadly crash of Ethiopian Airlines Flight 302 just minutes after takeoff on March 10 - the second deadly crash involving the plane in six months, which spurred regulators around the world to ground the planes, erasing billions of dollars of Boeing market cap.

But a report in the Wall Street Journal published on Sunday that neither Southwest Airlines nor the FAA (Boeing's primary federal regulator) were aware that a safety feature intended to alert pilots to a potentially malfunctioning 'angle of attack' sensor - in other words, a feature that might have prevented both the crash of ET302 and the Oct. 29 crash of a 737 owned by Lion Air - had been disabled on the new 737s is simply staggering.

Not only did Boeing disable the alerts, which would notify pilots when the two sensors on the new 737 MAX 8s were reporting dramatically different data, and make them part of a new 'premium' package of safety features, but the manufacturer somehow neglected to tell the airline and its regulator that the alerts had been disabled. The result was that Southwest never updated its safety manuals for pilots to reflect the fact that the alerts had been disabled.

This is particularly egregious because the 737 MAX 8s featured the new MCAS anti-stall software which could be inadvertently triggered by erroneous data being reported by a malfunctioning sensor. Indeed, the preliminary findings from the investigation of the crash of Ethiopian Airlines flight 302 found that the misfire of the MCAS system effectively doomed all 157 people on board that day.

Pilots at Southwest and regulators at the FAA didn't learn that the alerts had been disabled until after the crash of the Lion Air flight, more than a year after the new jets had gone into service.

Plane maker Boeing Co. didn’t tell Southwest Airlines Co. when the carrier began flying 737 MAX jets in 2017 that a standard safety feature, found on earlier models and designed to warn pilots about malfunctioning sensors, had been deactivated.

Federal Aviation Administration safety inspectors and supervisors responsible for monitoring Southwest, the largest MAX customer, were also unaware of the change, according to government and industry officials.

Boeing had turned off the alerts which, in previous versions of the 737, informed pilots if a sensor known as an “angle-of-attack vane” was transmitting errant data about the pitch of a plane’s nose. In the MAX, which featured a new automated stall-prevention system called MCAS, Boeing made those alerts optional; they would be operative only if carriers bought additional safety features.

Southwest’s cockpit crews and management didn’t know about the change for more than a year after the planes went into service. They and most other airlines operating the MAX globally learned about it only after the fatal Lion Air crash last year led to scrutiny of the plane’s revised design. The FAA office’s lack of knowledge about Boeing’s move hasn’t been previously reported.

"Southwest’s own manuals were wrong" about the status of the alerts, said Southwest pilots union president, Jon Weaks. Since Boeing hadn’t communicated the modification to the carrier, the manuals still reflected incorrect information.

Perhaps most stunning of all, once the FAA and Southwest learned that the feature had been disabled, it set off a furor at the FAA that nearly pushed it to recommend that all 737 MAX 8s be grounded until the alerts had been turned back on. If the regulator had followed through, it's possible that the crash of ET302 might have been averted.

Following the Lion Air crash, Southwest asked Boeing to reactivate the alerts on planes already in its fleet. This move, along with questions about why they had been turned off, prompted FAA inspectors overseeing Southwest to consider recommending that the airline’s MAX fleet be grounded while they assessed whether pilots needed additional training about the alerts. Those internal FAA discussions, however, were brief and didn’t go up the chain, according to documents reviewed by The Wall Street Journal.

[…]

Less than a month after the Lion Air jet went down, one FAA official wrote that AOA-related issues on 737 MAX jetliners “may be masking a larger systems problem that could recreate a Lion Air-type scenario."

Roughly two weeks later, other internal emails referred to a “hypothetical question” of restricting MAX operations with one message explicitly stating: “It would be irresponsible to have MAX aircraft operating with the AOA Disagree Warning system inoperative.” The same message alluded to the FAA’s power: “We need to discuss grounding [Southwest’s] MAX fleet until the AOA Warning System is fixed and pilots have been trained” on it and related displays.

The email discussions, previously unreported, were fleeting red flags raised by a small group of front-line FAA inspectors months before the Ethiopian jet nose-dived last month. The concerns raised by the FAA inspectors never progressed up the agency. Within days, they were dismissed by some involved in the discussions who concluded that the alerts provided supplemental pilot aids rather than primary safety information, and therefore no additional training was necessary. During that stretch and beyond, Boeing and the FAA continued to publicly vouch for the aircraft’s safety.

Boeing has never explained exactly why it decided to make these features optional. In the wake of the second crash, the company apologized profusely for this decision, and said that all safety features would be made available on all jets once it finished the software update to make MCAS less powerful, widely seen as an important prerequisite for FAA and other regulators to lift their grounding order.

Without a doubt, Sunday's report is the most damning news about the federal oversight of Boeing since reports that surfaced immediately after the March 10 crash revealed just how much of the approval process for the 737 MAX 8 had been delegated to Boeing itself.

But will either the FAA or Boeing be held accountable for this neglect? That remains to be seen...

From Airline Ratings

By Geoffrey Thomas and Steve Creedy April 22, 2019

Boeing has hit back at a New York Times’ article about the production quality of the 787s being built at the company’s South Carolina plant.

The NYT’s article, which has been distributed widely, claimed that Boeing’s factory in Charleston, South Carolina, has been plagued by shoddy construction and weak oversight.

Citing internal emails, corporate documents, federal records as well as interviews with former and current employees, the story claimed Boeing pushed its workforce to quickly turn out Dreamliners while ignoring issues raised by some employees.

It said safety lapses at the plant had drawn the scrutiny of airlines and regulators, while workers had filed nearly a dozen whistle-blower claims and safety complaints with federal regulators.

The workers, a number of whom are involved in legal action against Boeing, described issues such as defective manufacturing, debris left on planes and pressure not to report violations.

The story acknowledged there was no evidence that the problems had led to any major safety incidents.

The North Charleston plant is one of two producing the 787 Dreamliner and started operations in 2011.

The non-unionised factory has been a big boost to the local economy but has been the subject of rancorous disputes with organized labor that some observers blame for the adverse publicity.

While the NYT claims are not new — similar allegations were raised by Al Jazeera in 2014 and dismissed by the company — they come at a bad time for Boeing as it grapples with the fallout of two Boeing 737 MAX crashes.

This message from Brad Zaback, Vice President and general manager of the 787 Program, was sent to all Boeing South Carolina teammates Saturday, April 20.

Team,

The 787 program has a lot to be proud of these days. Our transition to Rate 14 continues to be the most seamless rate transition in the program’s history, and our Boeing South Carolina 787 manufacturing operations are the healthiest they’ve ever been. More importantly, our quality metrics show that we are performing at all-time high levels as well. That is a testament to each of you, demonstrating your pride and your ongoing commitment to excellence with respect to both safety and quality.

A story that posted in today’s New York Times, however, paints a skewed and inaccurate picture of the program and of our team here at Boeing South Carolina. This article features distorted information, rehashing old stories and rumors that have long ago been put to rest.

I want all BSC teammates to know that we invited the New York Times to visit Boeing South Carolina once they contacted us, so that they could see first-hand the great work that is done here. They declined this invitation.

The allegations of poor quality are especially offensive to me because I know the pride in workmanship that each of you pours into your work every day. I see the highest quality airplanes – airplanes that meet rigorous quality inspections and FAA standards – deliver on time on a regular basis from Boeing South Carolina, where they perform exceptionally well in service for our valued airplane customers around the world. Our customers feel the same way, and shared their own thoughts with the New York Times:

American Airlines said it conducted rigorous inspections of new planes before putting them into service. “We have confidence in the 787s we have in our fleet,” said Ross Feinstein, a spokesman for the airline.

In a statement, Qatar Airways said it “continues to be a long-term supporter of Boeing and has full confidence in all its aircraft and manufacturing facilities.” Note that only a portion of their quote was included in the story, and we wanted to ensure you had their full perspective: “Qatar Airways continues to be a long-term supporter of Boeing and has full confidence in all its aircraft and manufacturing facilities as a strong commitment to safety and quality is of the utmost importance to both our companies. We have over 100 Boeing aircraft in our fleet, manufactured in both Everett and Charleston, with many more to join in the coming years as part of our significant, long-term investment in the US economy.”

In fact, we also heard from Suparna Airlines and Norwegian in response to the story, and here’s what they told us:

Suparna Airlines: “The entire process of the aircraft delivery was very smooth. We want to thank the Boeing team in South Carolina who worked diligently with the Boeing standard and discipline to make the delivery a pleasant experience for us. The airplane has carried out more than 200 scheduled flights with total flight hours up to 500 at operational reliability of 99.99%. We are happy with the performance of our first Dreamliner.”

Norwegian: “We are very satisfied with the quality and reliability of all our 33 Dreamliners, regardless of where they have been assembled.”

The inaccurate picture the New York Times paints is also offensive to me because they are counter to our company’s core values. Quality is the bedrock of who we are. That’s why we relentlessly focus on quality improvements and FOD elimination at all Boeing locations. No matter how good we are today, we always believe we can be even better tomorrow. That drive to be the best will never change at Boeing as we continue to strive to be a Global Industrial Champion and the leader in quality.

It’s unfortunate and disappointing that the New York Times chose to publish this misleading story. This story, however, does not define us. Our company and our customers recognize the talent, skill and dedication of this excellent Boeing South Carolina team that works together to assemble and deliver incredible airplanes. I want to leave you with a word from Kevin McAllister, Boeing Commercial Airplanes president and CEO, which was not included in full from the New York Times:

“Safety and quality are at the core of Boeing’s values – there is nothing more important than that. The 787 program has delivered 823 airplanes to more than 76 customers since its launch. As Boeing marks 10 years in North Charleston, our more than 7,000 Boeing South Carolina teammates are producing the highest levels of quality in our history. And, we are seeing this translate across our work and the in-service performance with our customers. We test our airplanes and verify components are fully operational, and when we find a component that is not, it is replaced and tested again. This is core to our quality system, as it is for the industry. I am proud of our teams’ best in-process quality of production and stand behind the work they do each and every day.”

This is a team that I am very proud to be a part of, and I’m thankful for all that you do every day.

From Zero Hedge

Boeing's Nightmare Continues: Dreamliner Workers Warn Of Defective Manufacturing, Dangerous Quality Lapses

By Tyler Durden

Just as it looked like the fallout from the Boeing 737 MAX crashes was finally fading into the background, the New York Times is raising new questions about an entirely different Boeing plane, the Dreamliner 787. Workers at a Boeing plant in South Carolina are complaining about "defective manufacturing, debris left on planes and pressure to not report violations".

An investigation that incorporated reviewing hundreds of emails and documents, as well as interviews with more than a dozen current and former employees, has arrived at the conclusion that Boeing pushed speed over quality when it came to its Dreamliners - a story similar to the 737 MAX, which we reported faced similar critiques. This has lead to the question whether the issues at Boeing are limited to the 737, or if they are systemic.

According to the report, Boeing's North Charleston plant has come under fire for safety lapses, and the facility has also drawn the scrutiny of airlines and regulators. In fact, Qatar Airways even stopped taking planes from the factory after "manufacturing mishaps damaged jets and delayed deliveries".

On top of that, there have been nearly 12 whistleblower claims about the plant with regulators. They describe issues like manufacturing, debris left on planes and pressure to not report violations. Additional whistleblowers have skipped that step and gone right to suing Boeing, claiming that they were victims of retaliation for bringing up manufacturing mistakes.

Joseph Clayton, a technician at the North Charleston plant claimed he often found debris dangerously close to wiring beneath cockpits. He said: "I’ve told my wife that I never plan to fly on it. It’s just a safety issue."

Kevin McAllister, Boeing’s head of commercial airplanes, said in a statement: "Boeing South Carolina teammates are producing the highest levels of quality in our history. I am proud of our teams’ exceptional commitment to quality and stand behind the work they do each and every day."

Among other things, employees have claimed that faulty parts have been installed in planes, tools and metal shavings have routinely been left inside jets, often near electrical systems, and aircraft have taken test flights with debris in an engine and a tail, risking failure.

John Barnett, a former quality manager who worked at Boeing for nearly three decades said that he found metal slivers hanging over the writing that commands the flights controls. Barnett said if the sharp pieces penetrated the wires, it would be "catastrophic". He was so concerned that he filed a whistleblower complaint with regulators. He said he had repeatedly urged his bosses to remove the shavings, but they refused and then transferred him to another part of the plant.

An FAA spokesman said the agency conducted inspections on several plans certified by Boeing as free of debris, but found the same metal slivers. It is a problem that can lead to electrical shorts and cause fires. Officials also believe the shavings may have been the cause of damage for an in-service airplane on an occasion in 2012. The FAA wound up issuing a directive in 2017 that Dreamliners needed to be cleared of shavings before delivery.

Barnett said: "As a quality manager at Boeing, you’re the last line of defense before a defect makes it out to the flying public. And I haven’t seen a plane out of Charleston yet that I’d put my name on saying it’s safe and airworthy."

But wait there's more: another issue popped up right after the 2nd 737 MAX crash: customers were finding random objects in new planes.

The North Charleston plant called a meeting to discuss the issue, where a Senior Manager urged the team to check more carefully, stating: “The company is going through a very difficult time right now.”

Employees are supposed to clean the aircraft as they manufacture it so they don’t contaminate the planes with shavings, tools, parts or other debris. But it has still been a problem in SC. Brad Zaback, the head of the 787 program, reminded the North Charleston staff in an email this month that debris “can potentially have serious safety consequences when left unchecked.”

Customers like the Air Force have also been turned off by the manufacturing sloppiness. In March, they stopped deliveries of the KC-46 tanker after finding a wrench, bolts and trash inside new planes.

Will Roper, an assistant secretary of the Air Force, said: “To say it bluntly, this is unacceptable. Our flight lines are spotless. Our depots are spotless, because debris translates into a safety issue.”

Workers at the SC plant said debris is a continual issue.

Rich Mester, a former technician who reviewed planes before delivery said: “I’ve found tubes of sealant, nuts, stuff from the build process. They’re supposed to have been inspected for this stuff, and it still makes it out to us.” Mester has been fired and a claim on his behalf was filed with the National Labor Relations Board.

He continued: "Employees have found a ladder and a string of lights left inside the tails of planes, near the gears of the horizontal stabilizer. It could have locked up the gears.”

Dan Ormson, who worked for American Airlines said he used to "regularly" find debris when inspecting Dreamliners. The debris included loose objects touching electrical wiring, rags near the landing gear and once finding a piece of bubble wrap near the pedal the co-pilot uses to control the plane’s direction. He also once saw that a bolt was loose inside one of the engines, which could have caused it to malfunction.

Another Dreamliner built for American Airlines suffered a flood in the cabin so bad that ceiling panels, seats and electronics had to be replaced.

One current technician at the plant recently found chewing gum holding together a door’s trim. He said: “It was not a safety issue, but it’s not what you want to present to a customer.” Several former Boeing employees also told the NYT that managers pushed quality inspectors to stop recording defects.

Cynthia Kitchens, a former quality manager, said: “It was intimidation. Every time I started finding stuff, I was harassed.”

Mester concluded: "They’re trying to shorten the time of manufacturing. But are you willing to sacrifice the safety of our product to maximize profit?"

You can read more troubling details in the extended NYT report here.

From Airline Ratings

By Steve Creedy

Regulators from Australia, Brazil, Canada, China and Europe are among the nine authorities that have confirmed they will participate in the Boeing 737 MAX Joint Authorities Technical Review due to begin at the end of the month.

The US Federal Aviation Administration announced the list Friday US time and said the first meeting is due to take place on April 29.

The review is expected to take 90 days and is being chaired former national transportation safety Board chairman Chris Hart.

“The team will evaluate aspects of the 737 MAX automated flight control system, including its design and pilots’ interaction with the system, to determine its compliance with all applicable regulations and to identify future enhancements that might be needed,” the FAA said.

Confirmed participants are:

Australia
Civil Aviation Safety Authority (CASA)

Brazil
Agencia Nacional de Aviação Civil (ANAC)

Canada
Transport Canada Civil Aviation (TCCA)

China
Civil Aviation Administration of China (CAAC)

European Union
European Aviation Safety Agency (EASA)

Japan
Japan Civil Aviation Bureau (JCAB)

Indonesia
Directorate General of Civil Aviation (DGCA)

Singapore
Civil Aviation Authority of Singapore (CAAS)

United Arab Emirates
General Civil Aviation Authority (UAE GCAA)

The review is one of several being undertaken into the certification of the MAX following the crash of two aircraft in less than five months.

Boeing is working on modifications to a controversial software linked to both crashes, the maneuvring augmentation characteristics system, MCAS.

Boeing chief executive Dennis Muilenburg tweeted on April 16 that the company was making steady progress towards certification of the software and related training changes.

The company had just completed the last official engineering test flight of the updated software prior to a certification flight with the FAA.

Muilenburg said this had involved 120 MAX flights totaling more than 203 hours of flying time.

He had completed a demonstration flight and had seen first hand the software in its final form “operating as designed across a range of flight conditions”.

However, potential differences emerged between Canada and the US on whether training for the new software should be in a simulator or be computer-based.

From Zero Hedge

Dealing another blow to public confidence in Boeing's ability to swiftly reassure regulators that its 737 MAX 8 can be made safe for passenger travel, the South China Post on Monday reported that China Aircraft Leasing Group Holdings has put an order for 100 new 737s on hold, until it can be assured of the aircraft's safety.

This follows a decision by Indonesia's national carrier to cancel a $6 billion 737 MAX order. The airline had been planning to order 49 planes. Boeing last week said it would cut its pace of production by 20% to just 42 a month.

China was the first country to ground the 737s after Ethiopian Airlines flight ET302 crashed just minutes after takeoff - the second deadly incident involving the planes in just 5 months. A preliminary report from investigators found that the pilots followed Boeing's safety procedures, but were still unable to right the plane.

Boeing is working on an update of its MCAS anti-stall software, which is believed to have contributed to both the crash of ET302 and a deadly Lion Air crash that occurred just five months earlier, but the fix is taking longer than anticipated.

Per its original delivery schedule, the first 737 was supposed to be delivered to the aircraft lessor in Q3 of this year. Originally, the lessor signed its contract with Boeing in June 2017, ordering 50 aircraft, then increasing it by 25 with an option for another 25. The order for the initial 50 aircraft was valued at $5.8 billion.

The company said it has stopped paying installments on the planes it has ordered.

The Hong Kong-listed lessor, controlled by the state-owned conglomerate China Everbright Group, placed an order for 50 aircraft in June 2017. CALC then increased it by another 25 in December with an option for 25 more as part of its plan to grow its overall fleet from 133 in 2018 to 232 by 2023. According to the original schedule, the first MAX jet was expected to be delivered to CALC in the third quarter of this year and continue up to 2023.

"The purchase has been suspended and we have stopped paying the installments," said Chen Shuang, chairman of CALC and chief executive of China Everbright, the financial arm of China Everbright Group.

Airlines around the world have grounded the 737s, and last week, the FAA set up a joint review task force that is expected to include other aviation regulators, including possibly China's, which has been invited to join.

Most of the deliveries weren't expected until 2021, so the hold won't impact the lessor's operations, its spokesman said.

A CALC spokeswoman said that since most of the deliveries to the company were to be made from 2021, "so we see little or no impact on our operations."

Chen said that they have received assurances from Boeing that “a better solution will be submitted to CALC within two months”, adding that they have not yet discussed compensation.

Chen said both sides are actively seeking a solution to the problem.

"One option being considered is to replace it with other aircraft. But there aren’t too many options," said Chen.

Of course, the last thing Boeing shareholders wanted to hear after last week's string of negative headlines was more bad news, particularly after the late-Friday announcement of its production cut, which the company had clearly hoped to sneak by the market. And following the revelation that Boeing might soon have a second large cancellation on its hands, Boeing's shares - already lower - have sunk even further in premarket trading, weighing on the Dow.

From Zero Hedge

Multiple whistleblowers have come forward claiming that Federal Aviation Administration (FAA) safety inspectors were not properly trained and did not hold valid certifications on the Boeing 737 Max aircraft, according to a letter to FAA Acting Administrator Daniel Elwell from Sen. Roger Wicker (R-MS).

"Allegations from these whistleblowers include information that numerous FAA employees, including those involved in the Aircraft Evaluation Group (AEG) for the Boeing 737 Max, had not received proper training and valid certifications," the letter reads.

"Some of these FAA employees were possibly involved as participants on the Flight Standardization Board (FSB)," a group formed to evaluate the 737 Max 8 to determine requirements to rate pilots, develop minimum training recommendations, and to ensure "initial flightcrew member competency."

Two Boeing 737 Max 8s were involved in similar crashes within a five month period, while investigators are pointing to sensor failures connected to an anti-stall system known as the Maneuvering Characteristics Augmentation System (MCAS).

Of note, an off-duty pilot flying in the jumpseat on a Lion Air 737 Max 8 last October was able to talk pilots through disabling the MCAS system on the same plane that crashed a day later off the coast of Indonesia, killing all 189 on board.

The FAA whistleblowers also claim that the FAA may have been informed of the 737 Max 8s deficiencies as early as August 2018, two months before the Lion Air crash.

As we noted last month, several Pilots repeatedly warned federal authorities of safety concerns over the now-grounded Boeing 737 Max 8 for months leading up to the second deadly disaster involving the plane, according to an investigation by the Dallas Morning News. One captain even called the Max 8's flight manual "inadequate and almost criminally insufficient," according to the report.

***

"The fact that this airplane requires such jury-rigging to fly is a red flag. Now we know the systems employed are error-prone — even if the pilots aren't sure what those systems are, what redundancies are in place and failure modes. I am left to wonder: what else don't I know?" wrote the captain.

At least five complaints about the Boeing jet were found in a federal database which pilots routinely use to report aviation incidents without fear of repercussions.

The complaints are about the safety mechanism cited in preliminary reports for an October plane crash in Indonesia that killed 189.

The disclosures found by The News reference problems during flights of Boeing 737 Max 8s with an autopilot system during takeoff and nose-down situations while trying to gain altitude. While records show these flights occurred during October and November, information regarding which airlines the pilots were flying for at the time is redacted from the database. -Dallas Morning News

One captain who flies the Max 8 said in November that it was "unconscionable" that Boeing and federal authorities have allowed pilots to fly the plane without adequate training - including a failure to fully disclose how its systems were distinctly different from other planes.

From Airline Ratings

By Steve Creedy

Investigators believe the controversial software update implicated in the crash of a Lion Air Boeing 737MAX was also involved in the March 10 destruction of an Ethiopian Airlines jet.

Quoting sources familiar with a high-level briefing to the US Federal Aviation Administration, The Wall Street Journal reported that an emerging consensus among investigators was that the Manoeuvring Characteristics Augmentation System, or MCAS, was involved in both crashes.

The two crashes claimed a total of 346 lives and plunged manufacturer Boeing into crisis.

The newspaper warned that that preliminary finding from the flight data and cockpit voice recorders was subject to revision and said a preliminary report from Ethiopian investigators was due “within days”.

The global Boeing 737 MAX fleet remains grounded because of worries about similarities between the two crashes.

The FAA, which is facing several investigations into the certification of the plane, was the last agency to ground the MAX on March 13.

It defended the delay by arguing hard data suggesting a link between the two flights was not available until just prior to the decision.

That new information included a newly refined satellite data of the aircraft’s flight path and evidence found on the ground, believed to be a jackscrew that moves the horizontal stabilizer.

Boeing was already working on changes to MCAS and pilot training when the second crash occurred and this week released details of the changes.

It said it had complete confidence in the safety of its new software fix.

MCAS activates in manual flight when the flaps are retracted and is part of the speed trim system that automatically commands changes to the horizontal stabilizer to trim the plane so there are no net forces on the control column.

Erroneous data from an angle of attack (AoA) sensor prompted MCAS to repeatedly push down the nose of aircraft in the Lion Air crash, something the pilots fought instead of deactivating the system. The angle of attack measures the position of the aircraft nose in relation to airflow.

The original version of MCAS took information from just one Angle of Attack sensor but there are two on the aircraft and the new version will compare inputs from both.

If the sensors disagree by 5.5 degrees or more with the flaps retracted, MCAS will not activate and an indicator on the flight deck display will alert the pilots.

If MCAS activated in abnormal conditions, the new software will only provide one input for each elevated AoA event instead of resetting itself repeatedly.

It will also not be able to apply more force to the horizontal stabilizer than can be counteracted by the flight crew pulling back on the column.

Boeing is also making standard an AoA disagree alert that will tell the pilots if the two AOA sensors disagree by more than 10 degrees for more than 10 seconds.

“We’re going to do everything we can to ensure that accidents like these never happen again,’’ Boeing Commercial Airplanes vice product of product development Mike Sinnett told reporters this week.

“We are working with customers and regulators around the world to restore faith in the industry and to reaffirm our commitment to safety and to earning the trust of the flying public.”

From aljazeera.com

This is a major project by the Al Jazeera Investigative Unit focusing on the 787 “Dreamliner”, the flagship passenger jet of the Boeing Company.

Our journalism reveals the deeply-held safety concerns of current and former Boeing engineers, who in some cases fear to fly on the 787, the plane they build.

We uncover allegations of on-the-job drug use, quality control problems and poor workmanship.

We explore the roots of the battery problems that led to the plane’s grounding due to safety concerns for three months from January 2013.

Credits: Senior Producer/Director: Marc Shaffer, Producer/Director of Photography/Editor: Colin McIntyre, Producer: Kevin Hirten, Reporter/Producer: Will Jordan, Music: Ryan Whittier, Additional Music: Sean Hirten.

From AnderweltOnline.com

By Peter Haisenko

The B 737 MAX is a faulty design from the beginning. Anyone who knows anything about aerodynamics will recognize it immediately if they only look at the aircraft.

The example of the Boeing 737 and especially the latest development stage MAX 8/9 shows how fatal it is when it is not engineers who make the decisions, but merchants. No engineer in his right mind would have built the 737 MAX like this if he hadn’t been forced to do so by greedy managers. The nearly 400 deaths in two crashes were caused by Boeing’s board of directors, as well as the threatening bankruptcy of the entire company.

Boeing’s B 737 was a crutch right from the start. When Boeing planned the B 737-100 in the early 1960s, a seat configuration of 2/3 was planned, as with the DC 9. Lufthansa, as the largest first customer for the “City-Jet”, wanted a 3/3 version, as with the B 727 and the B 707. However, the construction was already advanced and so the tinkering began in order to save costs. Boeing simply left the already planned cockpit as narrow as it was and so the pilots still have to squeeze themselves into a cockpit for all versions of the 737 for which you actually need a shoehorn to get in. But this mini cockpit is of course lighter than an ergonomically sensible one and so the merchants are happy.

But that wasn’t the only cost-saving (lazy) compromise.

In order to save costs, Boeing has designed flying crutches

The nose and main landing gear were not designed for the now larger hull from the beginning. Our flight engineers told me that during their studies of aeronautical engineering in the 1960s the nose landing gear of the 737 was presented to them as a negative example of how not to do it. Nevertheless, the B 737-100 became a successful model, which was mainly due to a lack of competitor models. In the 1970s, the B 737 was modernised for the first time with the model B 737-200. The more powerful JT-8 engines were still small in size and fitted under the low wings. Boeing responded to the contemporary requirements for bad weather conditions with an autopilot construction that was a crutch from the beginning but is still used in all B 737 models today.

This led, for example, to the crash of the “Fly Dubai” in Rostow in April 2016.

Boeing introduced the 737-300 model in the mid-1980s. It had a “glass cockpit” like the Airbus A 310 (with screens instead of a “clock shop”) and modern engines with a large front rotor. Boeing would have had to carry out a new design already here, because the engines no longer fit under the low wings. In order to save the costs for a new construction and above all the complex approvals for it, the next crutch came. The engine was placed a bit higher and further forward and the intake of the engine was flattened at the bottom so that it wasn’t too close to the ground and so absorbed every stone from the ground, which would have destroyed the engine.

In the further years Boeing has “drilled” the 737 more and more with the models up to -800. Boeing has not changed anything about the basic construction from the 1960’s with its deficits. It is simply inexpensive for the production to continue using already certified units.

At the end of the 1980s Airbus introduced the A 320, which was a completely new design and Airbus set standards in terms of flight guidance systems and design. The A 320 became a direct and successful competitor for the B 737. Boeing came under pressure, but was able to win more customers for its crutch 737 because of the favourable purchase price. This was also because Airbus could not deliver as many aircraft as the worldwide demand was. Here we are faced with a fundamental problem in international aviation: enormous growth, especially in Asia and Africa. There is a lack of qualified junior pilots and mechanics with sufficient experience. Airbus had anticipated this problem and designed the A 320’s flight guidance systems to provide meaningful support for even less experienced pilots. Boeing is trying to catch up, but is not able to reach the A 320, which was designed more cleverly from the start. Airbus has once again set new standards with the A 320-neo.

Now we have to look at the markets for this class of aircraft. They are not just now in areas where other qualities are desired than in Europe. Even in the USA, airlines do not have the capacity to land in extremely poor visibility. To date, there are only a few airports in the USA that offer the ground-based conditions for a landing according to “Category III”, i.e. for visibility below 100 metres. These conditions are expensive, on the ground and in the air. In Africa or Southeast Asia they practically do not exist at all, simply because the demand is not there. This also explains why Boeing never set about bringing its crutch from an autopilot to a decent level. An estimated 90 percent of customers have no need.

With high oil prices, the demand for fuel-saving models has increased. Airbus has once again set standards with the A 320-neo and its particularly efficient engines. Boeing was in a tight spot. But the super engines of the A 320 simply did not fit under the wings of the old B 737 anymore. But instead of finally constructing a completely new model, the Boeing merchants decided to build the ultimate crutch beyond all aerodynamic rules. The engines that were too big for the 737 were moved even further forward and upwards.

During the first test flights it turned out that the physics cannot be outwitted so simply. The airflow of the engine now passed directly under the wing, which must have several negative effects. Once the lift is influenced negatively, but the biggest problems were in the extreme slow flight, that is shortly before the stall, which can lead to a crash.

In this situation, the airflow from the engine of the 737 MAX is located under the entire lower outer wing, which puts the aircraft in an uncontrollable state. Instead of finally redesigning the aircraft, Boeing’s managers opted for the worst crutch: they had a system installed that takes full control of the aircraft at this limit. If a sensor, and only one sensor, detects this limit, the attached computer causes the aircraft to move the tailplane trim to “nose down”. That wouldn’t be wrong in principle, but it would overshoot the mark.

The fact that this deadly system has no control system, which as such should not occur in aviation, has now proved fatal twice. This means that if this single sensor gives an error message, pilots have little chance of preventing their aircraft from flying into the ground without being pointed. The hole in Ethiopia’s ground speaks for itself.

It’s not the engineers who are responsible, it’s the managers.

Now you should know that the tailplane trim of all smaller Boeing models has always been a prone crutch. It’s a motor-spindle unit that tends to “run away” or jump out and jam if a relay fault occurs. For this reason there was a prominently placed emergency switch on the B 727 with which the trim motor could be switched off. This was practiced in the simulator. The newer 737 models no longer have this emergency shutdown device.

So the pilots can’t switch off the trim motor and save the plane even if they recognized the error. They would have to switch off the entire busbar on which the trim motor hangs. But this would shut down other elementary systems and it is a process that cannot be carried out in a fraction of a second. So if the only sensor for the angle of attack sends a wrong signal to the only computer, then this aircraft can no longer be saved, at least if it flies at low altitude.

The B 737 MAX is a faulty design right from the start. Anyone who knows anything about aerodynamics will recognize it immediately if he only looks at the aircraft. It forms the tip of a series of crutch constructions that run through the entire history of B 737 development. It is not engineers who are responsible for this, but the managers who force the engineers to build crutches against their better judgement.

The fact that this better knowledge is actually happening again is proven by the fact that there is an e-mail from summer 2018, i.e. before the first crash, in which Boeing employees already document what effects this design error can have. Boeing’s board of directors did not react and accepted so approvingly that exactly what happened twice within a few months happens – with almost 400 dead.

Ethiopia trusts neither the manufacturer, nor the US licensing authority FAA

In addition to Boeing’s managers, the heads of the FAA, the American regulatory authority, must of course also be called to account. They certified the airworthiness of the 737 MAX, although they had to know what kind of crutch it was. So it is not surprising that the FAA was the last to ban the 737 MAX from flying. It is already a unique event in the history of aviation that individual countries all over the world first had to rush ahead with flight bans, before the authority actually responsible for them desists to do so. However, this was preceded by a unique process.

It was not the FAA or the manufacturer Boeing that banned the 737 MAX from flying in the USA. It was Donald Trump who pulled the emergency brake with a decree. After that, the FAA and Boeing could no longer help but to follow the step that would have been due by summer 2018 at the latest. Also interesting is the next procedure, which is again unique: Ethiopia did not leave the accident investigation to the FAA or Boeing.

Contrary to standard procedures, the investigation was transferred to the French BEA and the flight recorder was sent to Paris for investigation. This is almost a declaration of war on the American aircraft industry, but at least a demonstration of how little trust remains in the integrity of American institutions. This is probably also a consequence of the fact that in expert circles a large number of deliberately falsified results are known which the American authorities have delivered on aircraft accidents. Let us just think of the TWA 600, which was downed by an American rocket and which was concealed from the public and even from us pilots with all its criminal methods.

The history of the B 737 MAX and all 737 models shows the state of the USA and its (aircraft) industry. For even short-term profit, all rules are set aside that have been developed for decades out of bitter necessity. What role do a few hundred deaths play when it comes to saving profit? The FAA itself is obviously corrupted through and through and here comes the next interesting aspect.

Donald Trump obviously knows this, because he wanted to put his personal chief pilot on the FAA’s executive chair, but this met with massive resistance. There we have the next point, why the American establishment hates Trump so much. He obviously wants to dry up the swamp at all levels. If he had his way, it’s not unlikely that the 737 MAX in this configuration wouldn’t have been approved and 400 people wouldn’t have been crushed. Another piquant detail is that from the beginning warnings came from Russia regarding the airworthiness of the 737 MAX.

Turbo-capitalism cannot persist in the long run

The disasters with the B 737 MAX have put the entire aviation industry in great distress. There will also be bottlenecks in Europe in the charter summer of 2019. But for Boeing itself it can mean the end. After all, several hundred copies of the 737 MAX have already been delivered and will probably have to be scrapped, because a simple retrofit with software cannot solve the basic problem of the faulty design. Simply resuming production of the old models of the 737 is no solution. It’s not that simple and who would want to have an airplane that can’t survive next to the A 320 neo?

The 737 MAX case makes it clear that turbo capitalism cannot exist in the long run. The whole world cannot function “sustainably”, and aviation certainly cannot, if only profit is the determining element. Not only the “diesel scandal” shows this, now drastically Boeing.

So what we need is a radical rethink. Capital and its managers and profiteers must be deprived of power and given back to reason and public spirit. This applies not only to the aircraft and car industries, but above all to the pharmaceutical industry, which does not want to heal people at all, but pursues the primary interest of selling more and more medicines to healthy people.

However, in order for an improvement to be possible, and in order to prevent thousands of people from continuing to lose their lives because of profit-seeking, the entire system must be fundamentally overhauled. This must be radical and must not leave out anything that should have been questioned long ago.

In this sense we have developed “The Human Market Economy” from scratch and I don’t think it is excessive to say that exactly this revolutionary system according to Haisenko/von Brunn has the potential to solve all, repeat all, the problems under which humanity suffers under the religious-capitalist dictatorship.

Peter Haisenko was a pilot with Lufthansa and flew for 30 years in worldwide service as a co-pilot and captain. Since 2004 he has worked as a freelance author and journalist. He is the owner and publisher of the online portal www.anderweltonline.com

From AvWeb

By Marc Cook

Amid a rising chorus of calls for the FAA to ground the Boeing 737 MAX 8 after this weekend’s crash of Ethiopian Airlines Flight 302, Boeing announced that software updates are being readied ahead of an expected Airworthiness Directive “no later than April.” Meanwhile, two US Senators have demanded the FAA ground the airplane.

The FAA has not moved toward grounding the 737 models, stating that it is working with the NTSB and local accident investigators, and "will take appropriate action if the data indicates the need to do so."

Senators Dianne Feinstien (D-Calif.) and Richard Bluemthal (D-Conn.) have written to FAA Acting Administrator Daniel Ellwell asking that the agency ground the 737 MAX 8 “until their safe use has been confirmed,” wrote Feinstein. “Continuing to fly an airplane that has been involved in two fatal crashes within just six months presents an unnecessary, potentially life-life-threatening risk to the traveling public.”

Boeing issued this statement regarding the software changes. “For the past several months and in the aftermath of Lion Air Flight 610, Boeing has been developing a flight control software enhancement for the 737 MAX, designed to make an already safe aircraft even safer. This includes updates to the Maneuvering Characteristics Augmentation System (MCAS) flight control law, pilot displays, operation manuals and crew training. The enhanced flight control law incorporates angle of attack (AOA) inputs, limits stabilizer trim commands in response to an erroneous angle of attack reading, and provides a limit to the stabilizer command in order to retain elevator authority.”

Boeing says it has been working closely with the FAA on the software changes, and that they “will be deployed across the 737 MAX fleet in the coming weeks. The update also incorporates feedback received from our customers.” The expected AD follows AD2018-23-51 issued in December that called for revisions to the 737-8 and 737-9’s operating procedures. “This AD [2018-23-51] was prompted by analysis performed by the manufacturer showing that if an erroneously high single angle of attack (AOA) sensor input is received by the flight control system, there is a potential for repeated nose-down trim commands of the horizontal stabilizer.”

Focus on the 737 MAX’s MCAS continues as a possible explanation for the Ethiopian Airlines crash based on initial reports of its flight path, with a rapid descent that is eerily similar to the Lion Air 737 that crashed last November. However, Reuters is reporting that witnesses saw the Ethiopian aircraft “making a strange rattling noise and trailing smoke and debris” just before impact.

Accident investigatgors from the NTSB and Boeing are due at the crash scene today. As we reported earlier, both the Cockpit Voice Recorder and Flight Data Recorder have been recovered from the crash site.

From Travel Pulse

By Alex Temblador

Last year, Congress passed a law that required future, newly-manufactured commercial airplanes to be installed with secondary security doors between the cabins and cockpit so as to prevent terrorists from attacking pilots who took bathroom breaks or meals.

The legislation did not address existing aircraft, so some lawmakers have introduced a new bill, called the Saracini Enhanced Aviation Safety Act after the pilot Victor Saracini who was killed in the 9/11 attacks. It would require this new security measure on all passenger jets, currently in operation or otherwise.

Airplane hijackings are extremely rare these days, with only one occurring in 2018, none in 2017, and seven in total in the last five years, all without casualties according to the Aviation Safety Network.

However, Democrats Andre Carson and Josh Gottheimer and Republican Brian Fitzpatrick and Peter King, who are leading the new bill, said that hijackings remain a threat and secondary barriers would allow pilots to close a cockpit door before opening another to the rest of the plane.

Carson said, “This is a critical next step, ensuring that all passengers, no matter which plane they fly on, are protected against cockpit incursions. I’m looking forward to working with my colleagues on both sides of the aisle to address this security gap and make certain American skies remain the safest in the world.”

He was echoed by Rep. Josh Gottheimer: "Securing the safety of our skies is absolutely critical to preventing another terrorist attack like 9/11. I was proud to cosponsor bipartisan legislation last Congress requiring secondary barriers on new commercial aircraft to help stop terrorists on airplanes. Now that it’s law, we need to go a step further to protect our country by requiring all commercial aircraft to have secondary cockpit barriers. We must do everything we can to prevent all terror attacks on our country, and that includes in our skies."

Rep. King argues that such a bill would protect more than just pilots: “We must do all that we can to ensure the attacks of September 11th are never repeated. I am proud to cosponsor this measure which will go a long way to protecting not only the pilots and flight crews but the passengers as well.”

Perhaps, they’re right. A study by the Federal Aviation Administration found that secondary doors would be the most efficient, cost-effective form of protection for pilots, who are vulnerable when they step out of the cockpit.

The barrier would be a lightweight, wire-mesh door that costs only $5,000 per aircraft.

According to the Daily Mail, Airlines for America, an industry trade group that represents airlines like United and American, argues that carriers should take the lead on whether to install such systems or not.

Ellen Sarcini, the widow of Captain Sarcini, is among many who are pushing for this new bill:

“It is unacceptable that, more than 17 years after terrorists breached the cockpit of my husband’s airplane on September 11, 2001, our skies are still susceptible to repeat this act of terrorism. It is my mission to ensure we are doing everything we can to protect the flight deck aboard our nation’s airliners because, without secondary barriers, we are just as vulnerable today as we were on that fateful day.”

She added, “We need to call on the FAA to act swiftly on legislation passed last Congress to implement a secondary barrier on newly manufactured aircraft for delivery. I’m pleased that a bipartisan group of leaders in the 116th Congress are wasting no time to address retrofitting the remaining aircraft with secondary barriers and continue protecting all who travel in the skies above us.”

From AvWeb

By Russ Niles

A tornado ripped through the airport at Antalya Turkey on Saturday, injuring 12 people and causing millions of dollars in damage as it marched down a line of airliners parked on the ramp. None of the injuries are considered life threatening. The wind knocked over buses and service vehicles on the ramp and pushed equipment into the airliners. Large pieces of debris also struck the planes and the terminal building. Officials said three buses and several pieces of ground equipment were toppled.

The twister was one of as many as five that touched down in Antalya, which was just recovering from a tornado and major storm that hit the region on Thursday. The same storm brought heavy rain to the coast and snow to the mountains of the Balkan region and Turkey.

From AVWeb

By Russ Niles

The last scheduled passenger flight of a Boeing 727 was reportedly conducted Jan.12 by Iran Aseman Airlines. The aircraft, a relatively new Boeing 727-200 Advanced (it was built in 1977), flew as EP851 on a domestic flight from Zahedan to Tehran. The low-key final flight marked the end of a remarkable 55-year run for the tri-engine jet that was a state-of-the-art improvement in speed and efficiency when it was introduced in 1962.

Although a few 727s remain in freight and even executive service, most of the 1,831 produced until 1984 were retired by early in this century because they’re noisy and gobble fuel. When the 727 entered service with Eastern Airlines in 1964, it carried as many passengers as four-engine airliners but flew higher and went faster. It became a fixture on domestic routes but was eventually eclipsed by twin-engine short-haul models. Thanks to decades of trade sanctions, Iran hasn't been able to buy new airliners or spare parts for the legacy airliners it operates.

From Zero Hedge

By Tyler Durden

Police have arrested two suspects - a 47-year-old man and 54-year-old woman from Crawley - believed to be the perpetrators of a bizarre incident that brought air traffic at Sussex's Gatwick airport to a grinding halt for 36 hours this week when drones were spotted flying over the airport's runway, according to the BBC.

Due to the risks of a collision between the drones and commercial aircraft, departing and arriving flights at Gatwick were cancelled for 36 hours, impacting the travel plans of some 140,000 people and leaving some stranded in the airport for more than a day. If found guilty of violating laws prohibiting the piloting of drones within one kilometer of an airport, the couple could face up to 5 years in jail - not to mention the enduring ire of the British people. Though delayed passengers are still in the process of being accommodated, Gatwick said Saturday it aimed to run "a full schedule" of 757 flights carrying some 125,000 passengers. During the disruption, some 1,000 flights were cancelled.

According to the Sun, the couple was arrested after a cyclist was spotted "frantically" packing a drone into a bag near the airport.

Sussex Police said today: "A 47-year-old man and a 54-year-old woman, both from Crawley, were arrested in the town on suspicion of disrupting services of civil aviation aerodrome to endanger or likely to endanger safety of operations or persons."

"They remained in custody at 11am on Saturday."

A witness who said he spotted one of the suspects described the scene to the Sun:

It comes as driver Paul Motts, 52, told The Sun how he spotted the man "in this 30s and in hi-vis clothing" in a country lane four miles from the runway on Thursday night.

The EDF Energy manager said: "I was delivering a parcel and drove past a suspicious man in fluorescent cycling gear crouching over a large drone which was all lit up."

"It was a big thing with lights on its arms and roughly 4ft across."

"He had a smaller drone, about 2ft across, next to him."

"He was leaning over and doing something to it. He was totally focused and did not look up when I drove past."