Category: Top Stories

Airbus shares hit record high as Boeing now suggests June return to service of 737 MAX

As Airbus shares hit a record high on Wednesday, January 22, the planemaker’s North American rival, Boeing, has just announced that certification of the beleaguered 737 MAX may not be obtained until June. As a result, while Airbus shares were heading in one direction, those of Boeing and also of many of its customers and suppliers fell on disclosure of this latest news. Airbus shares peaked at €139.32 at 1215 GMT on Wednesday, while those of TUI Group and Norwegian fell by 5% and 1.7% respectively. A spokesman for Norwegian said: “We are continually taking steps to minimize any disruption Read more

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Airbus expands European A321 production capacity to now include Toulouse facility

©Airbus-A321XLR

With production of the wide-body A380 jet coming to a close in the near future and just five remaining aircraft due for delivery, Airbus has turned its attention to expanding production facilities for the increasingly popular A321 Family narrow-body jet. The European planemaker has revealed plans to convert its Toulouse A380 line into a ‘digitally-enabled’ production line for the more popular A321 range of aircraft. At the present moment Airbus produces A321s at both Hamburg, Germany and Mobile, Alabama, USA. The A320neo Family is the world’s best-selling single aisle with over 7100 aircraft sold to over 110 customers. Within this Read more

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BAE invests US$2.2bn on two acquisitions to strengthen U.S. electronic systems foothold

BAE Systems plc (BAE), the British multinational defense, security and aerospace company, has announced that it is to make two major purchases in the U.S. – the military Global Positioning System (GPS) business belonging to Collins Aerospace, and the Airborne Tactical Radios (ATR)  business belonging to Raytheon. The opportunity to acquire two sector-appropriate businesses has come about through the antitrust requirements set out for the impending merger of Raytheon, and United Technologies Corporation which is the parent company of Collins Aerospace. Both acquisitions comprise asset transactions with tax benefits with BAE paying US$1.925bn in cash for Collins Aerospace’s GPS business Read more

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Further 737 MAX software issues see FAA grounding continue, possibly until April

Boeing is currently reviewing a new technical issue with the software update for the currently grounded 737 MAX jet. “We are making necessary updates,” Boeing said in a statement. Officials at the planemaker have confirmed that the issue relates to a software power-up monitoring function which verifies that certain system monitors are correctly operating. In addition, both the US Federal Aviation Administration (FAA) and Boeing are currently reviewing a wiring problem that has the potential to cause a short-circuit which could cause a crash if pilots did not respond to such an occurrence. It appears that two bundles of wiring Read more

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Profit warning sees Bombardier share price plummet by over 38%

With the announcement on Thursday by Bombardier Inc that problematic rail contracts in Europe will mean 2019 profits will be lower than expected, and because it may also have to write down the value of the joint venture with Airbus for the former C Series commercial narrow-body jet, the company’s share price fell by up to 38.6% at one point as a consequence. The company has been hit hard by a US$350 million charge over three European rail projects it is struggling with, while it also feels that the joint venture with Airbus over the renamed A220 will need further Read more

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Immediate backlash as U.K. government agrees to help struggling Flybe

Flybe ©AirTeamImages

No sooner had the U.K. government confirmed it was prepared to provide financial assistance to help keep struggling domestic carrier Flybe afloat than the backlash from competitive airlines began. There have also been a number of questions raised as to why the government is prepared to help Flybe when it refused to provide any help for the now defunct Thomas Cook last year. IAG chief Willie Walsh has already lodged a complaint with the EU that the actions of the U.K. government represent a “blatant misuse of public funds.” The European commission said it was ready to discuss the bailout Read more

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Boost for Delta as carrier exceeds all expectations for quarterly revenue

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Delta Air Lines’ (Delta) share value increased as much as 4.5% with the announcement that fourth-quarter earnings had exceeded analysts’ highest profit estimate, according to Bloomberg data. The carrier also posted a 2.4% uptick for revenue per available seat mile and beat all expectations for quarterly revenue. According to Delta CEO Ed Bastian: “2019 was a truly outstanding year on all fronts – the best in Delta’s history operationally, financially and for our customers. As we enter 2020, demand for travel is healthy and our brand preference is growing, positioning Delta to deliver another year of strong results, including earnings Read more

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Flybe trying to dismiss talk of its imminent collapse

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Despite having been taken over by a consortium of businesses less than a year ago, Flybe, which handles over half of all U.K. domestic flights outside of London, is fighting for its survival, with wide speculation that the low-cost domestic carrier is about to fold. When Virgin Atlantic Cyrus Capital and Stobart Group bought the struggling carrier last year for £2.8m for its operations and a further £2.2m for its parent company, the consortium promised to inject £100m into a turnaround plan. It was also intended to rebrand the carrier as Virgin Connect this year. While Flybe’s chief executive has Read more

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Iran admits to “unforgivable mistake” as it confirms its military shot down Boeing 737-800

In a massive and rapid U-turn, the Iranian authorities have now confirmed that its country’s forces mistakenly shot down a Ukraine International Airlines’ Boeing 737-800, flight 752, last Wednesday. The incident occurred shortly after take-off from Imam Khomeini International Airport, Tehran, when the plane was en route to Kyiv, Ukraine. All 176 passengers and crew on board perished when the plane crashed just outside Tehran. Having initially and vehemently denied any possibility of the aircraft having been hit by a ground-to-air missile, Iran has now admitted to the incident being a “drastic mistake” which occurred during a period of heightened Read more

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176 passengers and crew killed as Ukrainian Boeing 737-800 crashes in Iran

Ukraine International Airlines ©AirTeamImages

A Boeing 737-800 belonging to Ukraine International Airlines has crashed shortly after taking off from Imam Khomeini International Airport, Tehran at 6.12 a.m. local time, Wednesday. The plane, flight PS752, was heading for the capital of Ukraine, Kyiv. According to eyewitnesses, the plane was ablaze prior to crashing into the ground two miles to the north-east of the airport. Among the victims were 82 Iranians, 63 Canadians, 11 Ukrainians including 9 crew, ten Swedes, four Afghans, three Britons and three Germans, Foreign Minister Vadym Prystaiko confirmed. Ukraine International Airlines has suspended flights to Tehran indefinitely. The airline said that the Read more

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