Boeing to pay $200 million to settle SEC charges on misleading investors after deadly 737 Max crashes
Boeing will pay $200 million and its former CEO will pay $1 million to settle charges over misleading investors in the wake of two deadly crashes of 737 Max jetliners, the Securities and Exchange Commission said. "There are no words to describe the tragic loss of life brought about by these two airplane crashes," said SEC Chair Gary Gensler in a statement. The two crashes — one in October 2018 and another in March 2019 — killed all 346 people aboard the two flights and led to a worldwide grounding of the jetliners, which was first lifted in late 2020.cnbc.com
Boeing to resell some Max jets ordered by Chinese airlines
Boeing officials said Thursday they will find new buyers for some Boeing 737 Max jets that were built for Chinese airlines but can't be delivered because China's aviation regulator has not cleared the plane to fly after two deadly crashes. Boeing hopes the move will reduce its inventory of undelivered Max jets, which built up while the planes were grounded around the world. Arlington, Virginia-based Boeing had 290 undelivered 737s in inventory as of June 30, with about half of them earmarked for China, company officials said.news.yahoo.com
Biden calls out ‘MAGA Republicans’ for claiming support for law enforcement without condemning Jan. 6 insurrection
At a rally in Wilkes-Barre, Pa., President Biden criticized “MAGA Republicans” for expressing support for law enforcement while holding back condemnation of the Jan. 6 insurrection. “Whose side are you on?” Biden asked.news.yahoo.com
Boeing astronaut flight off until next year for more fixes
Boeing’s first spaceflight with astronauts has been delayed until next year because of repairs that need to be made to the capsule following its last test flight. Liftoff of the Starliner capsule with a pair of NASA test pilots is now scheduled for February, officials announced Thursday. Boeing has launched Starliner twice without a crew, most recently in May.news.yahoo.com
Biden nixes Trump design for Air Force One over cost, delay
President Joe Biden’s administration has scrapped former President Donald Trump’s red, white and blue design for the new generation of presidential aircraft after an Air Force review suggested it would raise costs and delay the delivery of the new jets.
Biden nixes Trump design for Air Force One over cost, delay
President Joe Biden's administration has scrapped former President Donald Trump's red, white and blue design for the new generation of presidential aircraft after an Air Force review suggested it would raise costs and delay the delivery of the new jets. Boeing is currently modifying two Boeing 747-800 aircraft that will bear the Air Force One callsign when the president is onboard to replace the existing fleet of two aging Boeing 747-200 aircraft. Trump, in 2018, directed that the new jumbo jets shed the iconic Kennedy-era robin’s egg blue and white design for a deeper navy and streak of dark red.news.yahoo.com
Travel stocks slump, with airlines, cruises, hotels tumble
Air travel in the United States hit another pandemic-era record over the weekend as vacationers jammed airports, but shares of airlines, cruise lines, hotels and almost anything else related to travel are tumbling on growing concerns about highly contagious variants of coronavirus.
US factory activity expands at fastest pace since 1983
(AP Photo/Elaine Thompson, file)WASHINGTON – U.S. manufacturers expanded in March at the fastest pace in 37 years, a sign of strengthening demand as the pandemic wanes and government emergency aid flows through the economy. The Institute for Supply Management, a trade group of purchasing managers, said that its measure of factory activity jumped to 64.7 last month, from 60.8 the previous month. International shipping has been snarled by delays at ports that often have fewer workers to prevent viral spread. Instead, they have spent more on factory goods, such as new cars, furniture for expanded home offices, and workout bikes. AdFactories have steadily re-hired workers since last spring, but have still only recouped about two-thirds of the jobs lost to the pandemic.
Orders for manufactured goods tumbled 1.1% last month
The Commerce Department reported Wednesday, March 24, 2021, that orders for durable goods declined last month for the first time after nine consecutive monthly gains including a sizable 3.5% rise in January. (AP Photo/Steven Senne)WASHINGTON – Orders to U.S. factories for big-ticket manufactured goods slumped 1.1% in February with demand in a key sector that tracks business investment also dropping. Orders had been rising for nine consecutive months, including a sizable 3.5% jump in January, according to the Commerce Department. The category that covers business investment dropped 0.8% in February following solid gains of 0.6% in January and 1.5% in December. AdThe report Wednesday showed that excluding transportation, orders would still have fallen by 0.9% in February.
Families of Boeing crash victims renew push for FAA changes
FAA Administrator Stephen Dickson has personally vouched for the plane's safety. A military and airline pilot before heading FAA, Dickson flew a Max in September. Boeing says Max jets have made 9,000 flights for 14 airlines without incident since returning to service late last year. Joe Jacobsen told the family that FAA delegated the review of most aspects of the flight system to a small number of Boeing engineers. The company admitted that two former test pilots hid information about changes to MCAS from the FAA.
Boeing CEO waived pay but got compensation worth $21 million
Boeing CEO David Calhoun declined a salary and performance bonus for most of 2020 but still received stock benefits that pushed the estimated value of his compensation to more than $21 million, according to a regulatory filing Friday, March 5, 2021. Calhoun, who became CEO in January 2020, received $269,231 in salary for the period before he disavowed his salary in March. AdThe company said Calhoun gave up about $3.6 million by declining most of his salary and a $2.5 million bonus. But most of Calhoun's compensation — valued by Boeing at more than $20 million — came in the form of stock benefits that will vest in the next few years, assuming he remains CEO. Calhoun, 63, was a longtime Boeing board member before being named CEO after the firing of Dennis Muilenburg in December 2019.
EU, US agree to suspend tariffs over Airbus-Boeing dispute
FILE - In this Thursday, Feb. 25, 2021 file photo, European Commission President Ursula von der Leyen speaks during a media conference in Brussels. After U.S. President Joe Biden and EU Commission chief Ursula von der Leyen spoke, both sides decided to suspend tariffs used in the longstanding Airbus-Boeing dispute for the next four months. Von der Leyen called it “a very positive signal for our economic cooperation in the years to come.”Ad"This is excellent news for businesses and industries on both sides of the Atlantic,” she said. In the aircraft dispute, the U.S. was allowed to impose tariffs on $7.5 billion of EU exports to the U.S and as a result of the deal, EU tariffs will be suspended on $4 billion of U.S. exports. The move came only a few weeks after international arbitrators gave the EU the green light for such punitive action.
Boeing will pay $6.6 million to settle FAA allegations
Federal regulators have imposed $5.4 million in civil penalties against Boeing on Thursday, Feb. 25, 2021, for violating terms of a $12 million settlement in 2015, and the aircraft maker has agreed to pay another $1.21 million to settle two current enforcement cases. (AP Photo/Ted S. Warren, File)Federal regulators have imposed $5.4 million in civil penalties against Boeing for violating terms of a $12 million settlement in 2015, and the aircraft maker has agreed to pay another $1.21 million to settle two current enforcement cases. Under terms of the previous settlement, Boeing can't appeal the new penalty, the FAA said. Boeing admitted that two former employees misled FAA about a key flight system implicated in the crashes. The two new enforcement cases for which Boeing will pay $1.21 million involve a program under which Boeing employees conduct safety assessments on new planes on behalf of the FAA.
Federal watchdog blasts FAA over certification of Boeing jet
The inspector general issued 14 recommendations to “restore confidence in FAA’s certification process and ensure the highest level of safety” in future passenger planes. While FAA test pilots knew about changes to the flight system, called MCAS, some key FAA personnel, including engineers, did not. Sen. Richard Blumenthal, D-Conn., said the report indicated concealment by Boeing and negligence by the FAA. AdThe same inspector general’s office reported last year that Boeing failed to disclose to the FAA changes it made to MCAS. In January, Boeing agreed to a $2.5 billion settlement with the Justice Department to avoid prosecution for defrauding the FAA.
EXPLAINER: Why a plane's engine exploded over Denver
In this image taken from video, the engine of United Airlines Flight 328 is on fire after after experiencing "a right-engine failure" shortly after takeoff from Denver International Airport, Saturday, Feb. 20, 2021, in Denver, Colo. He said fan blade pieces — including one found on a soccer field in a Denver suburb — will be examined Tuesday in a Pratt & Whitney laboratory. As a result, 69 planes and another 59 in storage were grounded in the U.S., Japan and South Korea, the only countries with planes using this particular engine. The last accident-related death on a U.S. airline flight occurred in 2018, when a broken fan blade triggered an engine breakup on a Southwest Airlines Boeing 737. Hours before the Denver flight, a Boeing 747 cargo plane in the Netherlands suffered an engine failure that resulted in engine parts falling to the ground.
Asian shares mostly higher amid coronavirus vaccine optimism
Asian shares were mostly higher on Tuesday despite a sell-off in technology companies on Wall Street. (AP Photo/Kin Cheung)TOKYO – Asian shares were mostly higher Tuesday despite a sell-off of shares in technology companies on Wall Street. Although the world's economies have been battered by the coronavirus pandemic, the deployment of COVID-19 vaccines is raising hopes for a recovery from the pandemic. “Equity investors are finally paying attention to the bond market,” said Mike Zigmont, director of trading and research at Harvest Volatility Management. In energy trading, U.S. benchmark crude rose 76 cents to $62.46 a barrel in electronic trading on the New York Mercantile Exchange.
Boeing: 777s with engine that blew apart should be grounded
United is among the carriers that has grounded the planes. FAA Administrator Steve Dickson identified the focus on the stepped-up inspections as hollow fan blades unique to the Pratt & Whitney PW4000 engine model and used solely on Boeing 777s. In South Korea, Asiana Airlines grounded nine, seven of which were in service, and Korean Air said it grounded 16 aircraft, six of which are in service. The airline has said the plane had engine trouble after takeoff and returned to Naha. Japan Airlines and All Nippon Airways will stop operating a combined 32 planes with that engine, Nikkei reported.
FAA orders United to inspect Boeing 777s after emergency
(Hayden Smith via AP)Federal aviation regulators are ordering United Airlines to step up inspections of all Boeing 777s equipped with the type of engine that suffered a catastrophic failure over Denver on Saturday. United said it is temporarily removing those aircraft from service, as meanwhile Boeing recommended grounding aircraft with that model engine until the Federal Aviation. Pieces of the casing of the engine, a Pratt & Whitney PW4000, rained down on suburban neighborhoods. “We are working with these regulators as they take actions while these planes are on the ground and further inspections are conducted by Pratt & Whitney," it said in a statement issued Sunday. AdUnited is the only U.S. airline with the Pratt & Whitney PW4000 in its fleet, the FAA said.
US durable goods orders show modest 0.2% December gain
Orders to U.S. factories for big-ticketed manufactured goods rose a moderate 0.9% in November with a key category that tracks business investment plans showing a gain. (AP Photo/Steven Senne)WASHINGTON – Orders to U.S. factories for big-ticket manufactured goods rose a modest 0.2% in December, held back by a big drop in the volatile aircraft sector. Economists had expected total orders would post a stronger advance of around 1% in December but noted that the overall gain was held back by the big drop in aircraft orders. Excluding transportation orders, total orders rose 0.7% in December, and that followed a 0.8% rise in November. “The December data are signaling still strong but slower growth in both business investment and equipment spending.”