Emirates' president continues to slam
Boeing and its leadership over the 737 Max and 787 Dreamliner
scandals
Sir Tim Clark, president of Emirates, is concerned about Boeing's continued
issues on its newest planes.
Clark cited issues with the Boeing 737 Max, 787 Dreamliner, and 777X
aircraft in a recent interview.
The 737 Max was just ungrounded after issues with the aircraft's software
caused two crashes.
Most airlines are ready to move on from Boeing's 737 Max crisis following
the plane's 20-month grounding - but one executive continues to sound the alarm
about the company's performance in recent years.
Sir Tim Clark, president of Emirates, criticized the manufacturer's
leadership and recent problems with three of its important planes in an
interview with The Air Current published Tuesday. Specifically, Clark criticized
Boeing's 737 Max, 787 Dreamliner, and 777X, all of which have been marred by
safety concerns, quality control issues, and production delays.
The problem, he says, stems from Boeing's board of directors.
"Culpability for the culture, strategy, direction, priority of that company
rests with the Boeing board and nobody else, Clark told The Air Current. "And
that's where the buck should stop. And that's where they need to get themselves
sorted out."
Clark has long been outspoken over the issues at Boeing, levying similar
complaints in a January Reuters interview: "Clearly there were process and
practices, attitudes - DNA if you like - that needed to be resolved from the top
down," he said at the time.
Boeing shuffled its top leadership amid the Max grounding, firing CEO
Dennis Muilenburg and installing Dave Calhoun, a board member, as his
replacement. But Clark said it wasn't enough: "It is pointless shuffling the
deck."
"Boeing need to take a good hard look at themselves; I'm sure they have,"
he continued.
Emirates operates hundreds of Boeing 777 aircraft and will be the first
airline to take delivery of the upcoming 777X. The largest twin-engine jet
aircraft in the world, the 777X has been delayed again until late 2023, partly
due to the coronavirus pandemic.
Emirates is also set to receive a 787 Dreamliner in 2023 following a 2019
order.
Both the 737 Max and 787 Dreamliner have been under near-constant scrutiny
in recent years following safety and quality control issues. The 737 Max,
notably, causing the deaths of 346 passengers across two crashes due to a
software issue.
Quality control issues at Boeing's South Carolina plant have called the
Dreamliner's safety into question and prompted additional groundings. Boeing may
have to spend additional hundreds of millions to resolve the issues.
Emirates doesn't operate the 737 Max and has largely been spared of those
issues. The plane returned to the skies in November, and has flown more than
2,700 flights since. Meanwhile orders have been pouring in from airlines
including United Airlines, Ryanair, and Alaska Airlines.
Still, Clark remains a vocal critic of the aircraft as it returns.
"I regret having to say all this, but I kind of, I think it needs to be
said, otherwise, we're just going to move on our of the Max era, as if nothing
happened," Clark told The Air Current.
Only two Max flights have encountered issues since the ungrounding, and
both were due to engine incidents unrelated to the faulty software that brought
down the Max aircraft. An American Airlines flight, most recently, was forced to
land with one engine shut down due to a mechanical issue.
Canada's WestJet also scrapped a Boeing 737 Max flight after its pilots
encountered an engine warning light that the airline said required an engine
run, a spokesperson told CBC. The airline, which used the Max for flights as far
as Hawaii and Europe prior to the grounding, has since resumed flights without
issue.
Boeing declined to comment for The Air Current story and when asked by
Insider about Clark's concerns,
"I believe they still have work to do in Boeing to get themselves sorted
out," Clark told Reuters. "There is a top-down culpability and accountability
and they need to recognize that."
Ethiopian 737 MAX crash families set to
obtain key Boeing documents
(Reuters) - Families of victims of the deadly 2019 Ethiopian Airlines jet
crash may obtain as soon as Thursday Boeing’s reports to U.S. regulators that
helped keep its 737 MAX flying after a prior disaster with the same jet in
Indonesia five months earlier.
The National Transportation Safety Board (NTSB), an independent U.S.
government investigative agency, told Boeing Co in a letter on Monday it should
turn over nearly 2,000 documents to lawyers representing families who want to
determine what the company knew about its flight systems after the Indonesian
crash on Lion Air.
The agency said international rules mandate the release of the documents
after two years from the crash date, even though Ethiopia has yet to produce a
final crash report which the agency cited in blocking the documents until now,
according to the letter reviewed by Reuters.
Boeing said it plans to produce the investigation-related information to
the plaintiffs beginning today following the NTSB guidance that, at the second
anniversary of the Ethiopian accident, the restrictions would be lifted.
The plaintiffs lawyers said they expect the papers to show what Boeing
executives knew of defects in the flight system of the newly designed aircraft
following the Indonesian crash. An automated flight-control system called MCAS
has been implicated in both crashes, which together killed 346 people.
The plane continued to fly until the Ethiopian crash prompted a global
grounding.
“What we want to see are the documents upon which Boeing resisted the
grounding of the airplane and based its assertion to its customers that the
airplane was safe,” plaintiffs’ attorney Justin Green told Reuters.
Any evidence showing that Boeing executives were aware of the 737 MAX
problems could expose Boeing to huge punitive damages, which are unusual in air
transportation accidents because planes rarely fly with a known deadly
defect.
Boeing has already provided plaintiffs 112,587 documents encompassing
millions of pages, Greene said, but the records under pursuit are believed to be
an important part of the case.
BUILDING A CASE
Boeing has said it has implemented changes that ensure accidents like the
ones in Indonesia and Ethiopia never happen again, and numerous aviation
regulators have re-approved the plane for flight.
The company resolved a 737 MAX criminal probe in January with a $2.5
billion Department of Justice settlement and has mostly settled the Lion Air
crash litigation.
It still faces an investor lawsuit in Delaware against its board and around
140 lawsuits by families of the Ethiopian crash.
In the DOJ settlement Boeing admitted that two of its 737 MAX technical
pilots, who are still under criminal investigation, had deceived the U.S.
Federal Aviation Administration (FAA) about MCAS.
While the settlement exonerated Boeing’s senior managers, legal experts
said it bolsters one part of the plaintiffs’ punitive claim that Boeing intended
to defraud the FAA and succeeded.
However, the experts said punitive damages are rarely awarded in aircraft
crash cases, in part because they are difficult to prove.
Boeing could argue, for example, that the Ethiopian Airlines’ pilots were
informed after the Lion Air crash about the steps to follow in the event of an
MCAS failure, said Kenneth Quinn of International Aviation Law.
Still, Boeing will likely work hard to settle the cases and avoid a jury
trial, a path followed by most companies involved in crash lawsuits, according
to Gary Kennedy, former general counsel for American Airlines.
“From the company’s perspective, the worst thing is a headline that relives
the final moments of someone’s life onboard that aircraft,” said Kennedy, who
was with American during litigation stemming from the Sept. 11, 2001 attacks and
a separate deadly crash in New York two months later.
News Release Issued: Mar
12, 2021 (8:00am EST)
To view this release
online and get more information about Boeing, visit: https://boeing.mediaroom.com/news-releases-statements?item=130836
Investment Firm 777
Partners Orders 24 Boeing 737 MAX Airplanes
Agreement includes
purchase rights for 60 additional airplanes
777 Partners will
lease the 737-8s to its affiliated operating ultra-low-cost carriers
SEATTLE, March 12, 2021
— Boeing [NYSE:BA] and private investment firm 777 Partners announced
today an agreement to add 24 737-8s to the firm’s diverse aviation portfolio,
with purchase rights for an additional 60 airplanes. The Miami-based company
will place the single-aisle airplanes with its growing portfolio of low-cost
carrier investments around the world.
In addition to aircraft leasing, 777
Partners strategically invests in a host of aviation businesses, from operating
carriers to technology-driven solutions. The firm’s travel sector strategy is
largely focused on innovative solutions for interlining, passenger connectivity,
and creating new commerce channels for its airline investments and customers.
“We could not be more excited to partner
with Boeing on this transformative order for our growing aviation business. The
737-8 aircraft are a fantastic addition to our aviation portfolio and will
enable our partners to leverage the jets’ superior economic performance to
deliver low fares for their passengers while reducing their carbon footprint,”
said Joshua Wander, founder and managing partner of 777 Partners. “The
retrenchment of traditional carriers globally has created an unprecedented
market opportunity for more agile and cost-efficient operators. These aircraft
will enable our operators to accelerate the recovery in the destinations they
serve. We are humbled to call one of America’s greatest manufacturers our
partner in this endeavor.”
The 737-8 can fly 3,550 nautical miles,
about 600 miles farther than its predecessor. This additional capability allows
airlines to offer new and more direct routes for passengers. The 737-8 reduces
fuel use and CO2 emissions by 16% compared to the airplanes it
replaces, and that superior fuel efficiency means lower operating costs and a
smaller environmental footprint. Every airplane features the new Boeing Sky
Interior, highlighted by modern sculpted sidewalls and window reveals, LED
lighting that enhances the sense of spaciousness and larger pivoting overhead
storage bins.
“777 Partners has gained a reputation for
investing in high-growth markets and we are delighted to welcome them to the
Boeing 737 family. This is a significant order that speaks to 777 Partners’
belief in the 737-8 and the market recovery ahead. We look forward to delivering
these jets and supporting a safe and successful entry into service with 777
Partners’ affiliates,” said Ihssane Mounir, Boeing senior vice president of
Commercial Sales and Marketing.
Boeing is the world’s largest aerospace
company and leading provider of commercial airplanes, defense, space and
security systems, and global services. As a top U.S. exporter, the company
supports commercial and government customers in more than 150 countries,
leveraging the talents of a global supplier base. Building on a legacy of
aerospace leadership, Boeing continues to lead in technology and innovation,
deliver for its customers and invest in its people and future growth.
777 Partners is a Miami-based private
alternative investment firm that invests across a number of high growth
attractive verticals. Founded in 2015, 777 Partners initially applied its
expertise in underwriting and financing of esoteric assets to diversify across a
broad spectrum of financial services businesses, asset originators and financial
technology/service providers. In recent years, the firm has broadened its
mandate and now invests across six different industries: insurance, consumer and
commercial finance, litigation finance, direct lending, media and entertainment,
and aviation.
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