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Tag: 737 MAX

  • European watchdog set to lift Boeing 737 MAX flying ban in January

    European watchdog set to lift Boeing 737 MAX flying ban in January

    In January, Europe is expected to lift its flight ban on the Boeing 737 MAX passenger jetliner after U.S. authorities ended a 20-month grounding last week caused by two deadly accidents.

    In remarks aired on Saturday, the president of the EU Aviation Safety Agency (EASA) said that the 737 MAX was fit to operate following revisions to the configuration of the plane that crashed twice in five months in 2018 and 2019, killing 346 passengers.

    Executive Director Patrick Ky told the Paris Air Forum, an online aviation conference organised by La Tribune, “We wanted to conduct a totally independent analysis of the safety of this aircraft, so we conducted our own checks and flight tests.”

    We are assured from all these reports that the 737 MAX will return to service. We have begun to put all the steps in place, he said.

    Since the approval of the FAA, EASA’s decision is seen as the most significant achievement since it also carries considerable weight in the industry as the watchdog accountable for Airbus.

    Officials have stated that the request for an EASA Directive to end grounding in Europe will be released next week, followed by a 30-day consultation period. That will lead to an ungrounding decision in January after finishing touches.

    Pilot preparation and the length of time it takes for airlines to update software and carry out other measures required by EASA depend on how long it takes for flights to resume in Europe. Commercial flights are expected to resume in the United States on Dec. 29, just under six weeks after the FAA order was issued on Nov. 18.

    EASA serves the 27 members of the European Union, plus four additional countries, including Norway, which has 92 aircraft on order. It currently also represents the United Kingdom, which quit the EU bloc in January.

  • Why American Airlines (NASDAQ: AAL) Share Plunges?

    Why American Airlines (NASDAQ: AAL) Share Plunges?

    American Airlines Group Inc. (NASDAQ: AAL), like many other airlines, has been hit hard by the decline in air-travel demand due to the coronavirus pandemic. Shares of American Airlines shed 4.26% after it planned to seek more money from the Treasury Department to improve its weak finances.

    The company is planning to take help from the Treasury department as it bears a shock because of the coronavirus pandemic. It has a major debt burden as it disclosed $40 billion of the debt in the second quarter, up $7 billion compared to the 2019 debt of $33 billion.

    American Airlines has held a conference where the number of airline executives gave presentations. American Airlines CFO Derek Kerr said at the conference on Wednesday that the company is planning to turn toward the Treasury department to lessen its debt burden. CARES act has allowed airlines to borrow money from the treasury department as the airline industry has been hit hard by the coronavirus pandemic. But not all the airlines have taken the $25 billion government bailout most notably Southwest has already disclosed that it is not taking the loan.

    Another decision of Americans that not only impact American Airlines (AAL) but also Boeing is that the AAL said that it may postpone the delivery of 18 Boeing 737 MAX jets. The MAX fleet has already stopped services since March 2019 because of safety issues. The decision to postpone the delivery of the jet also delayed the American’s payment for them.

    Shares of American Airlines (NASDAQ: AAL) had tumbled down 4.26% as it lost -0.58 at $13.05 on Wednesday. In the past 52-weeks of trading, American’s stock has fluctuated between the low range of $8.25 and a high range of $31.67. American Airlines has moved up 58.18% from its 52-weeks low and moved down -58.79% from its 52-weeks high. Looking at its profitability, it has a return on assets of -5.70%, returns on equity of 240.80%, and return on investment of 10.30%. It has a market capitalization of $6.51 billion at the time of writing.

    American Airlines has earlier named two new officers in its operation and people teams. Jessica Tyler was appointed as the president of American Airlines Cargo and vice president of Airport Excellence in June. Furthermore, Thomas Rajan was appointed as the vice president of Compensation and Benefits in August. It has also announced that it would furlough 17,500 union workers in October.

    Decreasing demand because of the coronavirus pandemic not only affected the business of American Airlines but many other airlines have experienced the shock. United Airlines has also disclosed that decreasing demand for air travel impacted its flight capacity in the third quarter. It has recorded the 70% drop in its scheduled flight capacity, compared to the forecasted decrease of 65%. It also expects that its passenger revenue to be down 85% this quarter.