ARC NEWS
Boeing dims Max delivery forecast but sees imminent 787 restart
July 28, 2022
Boeing has reduced its estimate of total 737 Max deliveries in 2022, placing most of the blame on engine supply lines, just after one US carrier cited aircraft wait times as its primary capacity constraint amid surging travel demand. The US airframer now expects total Max deliveries across the year to be in the "low 400s" range. Finance chief Brian West had indicated during an earnings call on 26 January 2022 that the company had a "ballpark" estimate of 500 Max deliveries this year. West said during a second-quarter earnings call on 27 July that Boeing had so far delivered 189 Max jets in 2022. "We don't anticipate making up those deliveries in the back half of the year and will continue to experience monthly variability, including a light month in July," West adds. Boeing intends to hew as closely as possible to its previously stated goal of 31 Max deliveries per month. West admits that the full-year expectation for Max deliveries is "below our original expectations" and "short of what we discussed earlier this year". Boeing chief executive David Calhoun says the slowdown in Max deliveries "does get down to that engine supplier", which, in the case of the Max, is Leap engine maker CFM International, a joint company formed by GE and Safran Aircraft Engines. "That is the world we live in now," adds Calhoun. He notes that overall supply-chain issues have impaired the aviation industry's ability to meet rising demand. "For us, in particular with respect to the commercial side of our business, it relates to engine production [and] engine availability, so that we can predictably deliver airplanes to our customers." Among those customers, US major United Airlines has complained recently that Boeing's delivery delays have played a big role in its inability to fly as much as it wants and needs to. United chief executive Scott Kirby said during an earnings call on 21 July that Boeing's aircraft delivery rate posed the greatest risk to its capacity plan for 2023. "We are clearly exposed to Boeing delivery delays," Kirby said. United has 364 Boeing and 165 Airbus aircraft on order, data shows. Frustrated customers and his own gripes about engine suppliers aside, Calhoun has been buoyed by Boeing's parading at the recent Farnborough air show. "[Farnborough] was important for us. It was an emotional outcome for our people. We're proud of the orders we collected over the course of that week – over 200 orders and commitments. It covered our whole line." Boeing received at the show two big endorsements for its yet-to-be-certificated Max 10: from Delta Air Lines a firm order for 100 plus options on a further 30, and from Qatar Airways the firming up of a deal for 25. Calhoun says Boeing is "working constructively" with the US Federal Aviation Administration toward certification of the Max 7 and Max 10 by year-end. Meanwhile, Boeing is preparing itself to resume deliveries of 787 aircraft at some point in the near future. The airframer paused 787 deliveries in June 2021 and has since been working with the FAA to address manufacturing issues for those aircraft. "We are on the verge of returning to the 787 delivery process," Calhoun says. "I won't give a date – I never have. That's up to the FAA. But we've been working closely with our customers and the regulator on those final steps." Boeing has 120 787s in inventory and is "making progress" on readying them for delivery. West notes: "As stated last quarter, we’re producing [787s] at very low rates and will continue to do so until deliveries resume, gradually returning to five airplanes per month over time. Similar to the 737 programme, the supply chain remains a key watch item for 787 production and deliveries." Calhoun adds that Boeing and the FAA are "approaching closure" on the documentation phase of approval to restart 787 deliveries. "Therefore, the delivery of airplanes is also coming soon."


Labour strike forces Lufthansa to cancel over 1,000 flights
July 27, 2022
Lufthansa Group is calling off almost the entire flight programme at its hubs in Frankfurt and Munich for 27 July as several employees plan to stage a walkout on that day. Seeking better pay, trade union Verdi has called on the about 20,000 ground employees of the airline to stage a warning strike from 3.45 a.m. on 27 July until 6.00 a.m. on 28 July, the German group says. In view of the upcoming strike, the carrier says it is cancelling a total of 678 flights in Frankfurt, including 32 on 26 July and 646 on 27 July. These flight cancellations are expected to affect 92,000 passengers, the airline adds. At the Munich hub, 345 flights are being cancelled, 15 of them on 26 July and 330 on 27 July, likely affecting 42,000 passengers. The effects of the strike may also lead to individual flight cancellations or delays on 28 and 29 July at the two hubs, it notes. The carrier says it will immediately inform passengers affected by cancellations and rebook them on alternative flights if possible. "The early escalation of a previously constructive collective bargaining round is causing enormous damage. It affects our passengers in particular, who are impacted during the peak travel season. And it is putting an additional heavy strain on our employees in an already difficult phase for air traffic," Lufthansa's chief human resources officer and labour director Michael Niggemann states. "In view of our high offer with very substantial pay increases over the next 12 months of more than 10% more in the pay groups up to €3,000 [$3043] monthly basic pay and a 6% increase for a monthly basic pay of €6,500, this so-called warning strike is in the middle of the peak summer travel season is simply no longer proportionate." The next round of negotiations between Lufthansa and Verdi is scheduled for 3 and 4 August.


FAA proposes AD related to 777 fuel systems
July 27, 2022
The US Federal Aviation Administration has proposed an airworthiness directive intended to reduce the risk of fuel-tank explosions on Boeing 777s. The AD, disclosed by the FAA on 26 July and prompted by Boeing’s own fuel-system reviews, would require, depending on the aircraft configuration, installation of Teflon sleeves, cap sealing of fasteners, detailed inspections and corrective actions. The FAA states in the proposed AD that it has "examined the underlying safety issues involved in fuel-tank explosions on several large transport airplanes, including the adequacy of existing regulations, the service history of airplanes subject to those regulations, and existing maintenance practices for fuel tank systems". It adds that it has "determined that the actions identified in this proposed AD are necessary to reduce the potential of ignition sources inside fuel tanks, which, in combination with flammable fuel vapours, could result in fuel tank explosions and consequent loss of the airplane". The agency in June 2017 issued an AD applying to certain 777s which was intended to prevent arcing inside the main and centre fuel tanks in the event of a fault current or lightning strike, which, in combination with flammable fuel vapours, could result in a fuel-tank explosion. Additionally, the June 2017 AD required inspections for certain aircraft, corrective actions if necessary, and installation of Teflon sleeves under certain wire bundle clamps. Since the issuance of that AD, it emerged that more 777s were affected by the identified unsafe fuel-tank condition and that “additional work is required”. In September 2020, US safety regulators adopted a rule aimed at modifying early 777s to reduce the risk of a centre fuel-tank explosion, part of a long-running FAA effort to reduce the risk of fuel-vapour explosion across a range of aircraft types. The rule modified the fuel-quantity indicator system of 777-200s and -300s. The FAA will accept comments on the newly proposed AD through 9 September.


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