Say goodbye to boarding passes with Star Alliance’s facial recognition

Passengers at select European airports can now experience a more convenient and contactless entry process, thanks to the Star Alliance‘s decentralized facial recognition technology. By simply scanning their faces, passengers can pass through security and board their aircraft without fumbling in their bags for their boarding passes and passports. The Lufthansa Group was the first Star Alliance member to introduce biometric checkpoints at Frankfurt (FRA) and Munich (MUC) airports in November 2020, providing relief to travelers who were concerned about the transmission of the COVID-19 virus. This technology has since been expanded to other airports, including Vienna (VIE), Hamburg (HAM), and Zurich (ZRH). The system is available to passengers on Lufthansa, Austrian Airlines, and SWISS, who are also members of the group’s Miles & More loyalty program. To access biometric checkpoints, travelers must be at least 18 or register 24 hours before through the Star Alliance app.
Read more...

SAS CEO eyes new era of transatlantic collaboration

Scandinavian Airlines’ (SAS) switch to SkyTeam and eventual entry to the Air France-KLM transatlantic joint venture (JV) will unlock a new era of collaboration for the carrier, according to CEO and President Anko van der Werff. Van der Werff, speaking during a keynote interview at Routes Europe 2024, highlighted the move as an opportunity to tap into partnerships that were previously out of reach during SAS' 27-year tenure in the Star Alliance, which it co-founded with Air Canada, Lufthansa, Thai Airways and United Airlines in 1997. “We want to get to a new level of partnerships,” van der Werff said. “I am a firm believer that what we're have right now within Star is setting us back in time. Airline partnerships have evolved. A codeshare cooperation is nice—and we’re definitely going to [codeshare] with our SkyTeam partners—but I think the real benefit is in joint bottom-line management in one way or another.” SAS' restructuring plan, which received U.S. court approval in March, is expected to conclude by the end of the first half of 2024, enabling the airline to emerge from Chapter 11 bankruptcy protection. As part of the reorganization, SAS has secured investment from a consortium including Air France-KLM and the Danish state, leading to its departure from the Star Alliance on Aug. 31 and the initiation of the process to join SkyTeam. SAS is currently in "advanced negotiations" with SkyTeam and its members to develop and expand extensive commercial relationships.
Read more...

Japan Airlines CEO describes weak yen as a ‘big problem’

Japan’s weak currency is a “big problem,” Japan Airlines Co. Chief Executive Officer Mitsuko Tottori said in a group interview, adding that a stronger rate than the current level of around ¥155 to the dollar would be better. “We often discuss that the yen at the 130 level will be good,” Tottori said at the company’s headquarters in Tokyo on Wednesday, adding that much of the airline’s expenses are in foreign currency. “It’s a big problem.” Tottori, a former flight attendant, became Japan Airlines’ first female president on April 1. The carrier announced last month an order to buy 42 new Boeing Co. and Airbus SE jets in a multibillion dollar order to expand its international network. The Japanese currency, which is trading at 34-year-low, is also hurting outbound travel, Tottori said. Younger people will venture less outside Japan because of the weaker yen, Tottori said. In conversations with other companies, the CEO said she hears that an exchange rate of ¥130 to ¥140 to the dollar would be more desirable. Although Airbus made up the larger share of the recent aircraft order, Japan Airlines won’t rely only on the European planemaker to build its fleet, Tottori said. Japan Airlines will seek to ensure that its Boeing orders are delivered on time; the US manufacturer has come under increasing scrutiny from lawmakers and regulators following a near-catastrophic blowout of a fuselage panel on a 737 Max 9 during flight in early January. “We still have reliable relations with Boeing and believe the company will be able to overcome the ongoing troubles,” Tottori said. “We have no intention to lean toward Airbus and will make choices that suit our business plans.”
Read more...

Southwest Airlines’ flight attendants approve contract worth $6.3b

Southwest Airlines’ flight attendants approved a new $6.3b labor contract, setting a standard that could influence talks at other US carriers. The four-year agreement will provide an initial 22.3% pay raise, followed by three annual increases of 3%, the Transport Workers Union local 556 said in a statement Wednesday. The pact was approved by 81% of those voting, according to the union, which represents 21,000 Southwest workers. The contract, replacing one agreed to in 2019, is the first for flight attendants at a large US carrier in the latest round of talks. The terms will likely draw notice from workers in similar negotiations at American Airlines Group Inc. and United Airlines Holdings Inc. “For far too long, flight attendants across the aviation industry have had to fight to improve our compensation and quality of life,” Lyn Montgomery, TWU 556 president, said in the statement. Labor and fuel are the top expenses for airlines, and flight attendants are the 11th Southwest work group to approve a new contract since October 2022. The agreements provide certainty going forward for the carrier’s budgeting process. Southwest pilots in January approved a new agreement that will boost pay 50% on a compounded basis over five years. Flight attendants will split a pool of at least $364m for ratification bonuses based on time worked during the years the accord was being negotiated. The contract includes improved health-care benefits, better pay for situations including irregular operations or an extended duty day, holiday pay on July Fourth, Memorial Day and Labor Day and what the union said is an industry first for paid maternal and paternal leave.
Read more...

Automatic refunds and no more hidden fees: DOT sets new rules for airlines

The Transportation Department on Wednesday announced new rules taking aim at two of the most difficult and annoying issues in air travel: obtaining refunds and encountering surprise fees late in the booking process. “Passengers deserve to know upfront what costs they are facing and should get their money back when an airline owes them — without having to ask,” said U.S. Transportation Secretary Pete Buttigieg in a statement, adding that the changes would not only save passengers “time and money,” but also prevent headaches. The department’s new rules, Buttigieg said, will hold airlines to clear and consistent standards when they cancel, delay or substantially change flights, and require automatic refunds to be issued within weeks. They will also require them to reveal all fees before a ticket is purchased. Airlines for America, a trade group representing the country’s largest air carriers, said in a statement that its airlines “abide by and frequently exceed” D.O.T. consumer protection regulations.
Passenger advocates welcomed the new steps. Tomasz Pawliszyn, the chief executive of AirHelp, a Berlin-based company that assists passengers with airline claims, called it a “massive step forward and huge improvement in consumer rights and protection” that brings the United States closer to global standards in passenger rights. Story features what is known about the D.O.T.’s new rules, which will begin to go into effect in October.
Read more...

Turkish secures six 737 Max 8s for AJet with CDB lease deal

Turkish Airlines has struck a deal to lease seven more aircraft from lessor CDB Aviation, including six Boeing 737 Max 8s for its newly rebranded low-cost unit AJet. AJet, the former Anadolu Jet operation which was established as a standalone subsidiary with its own air operator certificate earlier this year, will take the six Max 8s from the lessor during 2025 and 2026. The aircraft will be delivered from CDB’s existing orderbook with Boeing. The low-cost unit ended 2023 with a fleet of 91 aircraft, a mix of Airbus and Boeing narrowbodies – around a third of which are A320neo-family or 737 Max jets. It has plans to double its fleet to 200 by 2033. Turkish Airlines is also leasing a used Airbus A330-300, for delivery next month, from CDB. The Star Alliance carrier remains in talks over a major deal for Boeing narrowbody and widebody aircraft to meet long-term plans to double its fleet to 800 over the next decade, having finalised a deal for the Airbus portion of the order late last year. A delay in completing this deal, together with a requirement for additional capacity because of the impact of Pratt & Whitney GTF engine issues on some of its A320neos, has prompted the carrier to lease additional capacity to meets its growth ambitions.
Read more...

Korean Air in talks to buy Boeing 777X jets, sources say

Korean Air is in talks over the purchase of at least 10 Boeing 777X jetliners in a potential tilt back towards its traditional U.S. supplier after placing a major order with European rival Airbus, two industry sources said. The discussions come weeks after Korean announced an order for 33 A350 jets from Airbus in what was widely seen as a breakthrough for the European planemaker into the flag carrier's Boeing-dominated wide-body fleet. The sources said discussions between Korean Air and Boeing on the 777X, an upgrade of the 777 mini-jumbo already used by South Korea's largest carrier, were ongoing. A third industry source with knowledge of the matter said Korean is in continuous discussions with Boeing on potential orders, but does not have immediate firm plans to take new 777s. Korean Air did not have an immediate comment. Boeing declined to comment on any commercial discussions and referred queries about fleet planning to the airline. Earlier this month, Korean Air Chairman and CEO Walter Cho told CNBC following the Airbus deal: "We're not done yet. We're still talking with Boeing".
Read more...

The flight attendant who became CEO hopes more women will make it to the top

Mitsuko Tottori admits Japan has much more to do to get people like her into the chief executive seat. Tottori was named as the first female president and chief executive of Japan Airlines (JAL) in January, crowning a career that began nearly 40 years ago when she joined the airline as a flight attendant. Her rise is a rare feat in a nation where women still face major hurdles to promotion. “Japan is still in a place of establishing the initial goal to increase (the number of) female managers,” she told CNN in an interview at the airline’s headquarters in Tokyo on Wednesday. “I hope that Japan will soon become a place where people are not surprised when a woman becomes a president.” “We do want to seriously increase the number of (women) managers, and more than that, I think it’s important that women themselves want to be active, so I really hope to see more and more of (them) in the future,” she added. Tottori, 59, began her career at the national carrier in 1985. Thirty years later, in 2015, she became senior director of cabin attendants and was steadily promoted up the ranks. Her background differs vastly from her predecessors. It is extremely rare for a former flight attendant to climb to the top job. Of the last 10 JAL presidents, seven graduated from the prestigious University of Tokyo. By contrast, Tottori attended the two-year Kwassui Women’s Junior College in Nagasaki, part of a network of institutions that has played a major role in women’s higher education. Tottori’s predecessor had a background in aviation maintenance, while the president before that started out as a pilot. Story has more.
Read more...

LATAM scraps plan to acquire Boeing B737s after talks end with bankrupt Gol

LATAM Airlines said on Wednesday that it was no longer seeking to acquire Boeing B737 planes either from bankrupt Brazilian carrier Gol or other sources, opting to look for alternative narrowbody aircraft after talks failed. The two airlines clashed shortly after Gol filed for bankruptcy protection in the U.S. in January, with Gol accusing LATAM of trying to poach its planes and pilots. LATAM then offered to acquire any B737s that Gol no longer wished to operate after its bankruptcy restructuring. Gol is trying to renegotiate terms on 90 aircraft leases by the end of May, and LATAM did not say how many planes it hoped to acquire during Gol's bankruptcy. LATAM blamed Gol's "lack of meaningful engagement" for the deal's failure, in a letter filed on Wednesday in Gol's bankruptcy case. Gol declined to comment on LATAM's letter. LATAM said that the "scarcity of available B737 aircraft, as well as the debtors' refusal to cooperate" had forced LATAM to pursue alternative narrowbody aircraft to bolster its fleet and meet rising consumer demand. "LATAM has been unable over the last several months - despite its extensive efforts - to obtain B737 aircraft from other sources unrelated to the debtors," LATAM's attorneys wrote. "Accordingly, LATAM is unlikely to continue pursuing any transactions involving the B737." Airlines have needed to adjust their business plans as safety concerns have forced Boeing to slow production of its best-selling 737 Max.
Read more...

France braces for pre-Olympic airport turmoil over labor dispute

French aviation authorities warned of major travel disruptions as air-traffic controllers launch a protest campaign against work-rule changes ahead of the Summer Games in Paris. Airlines have been asked to reduce their flight schedules by 75% at Paris Orly airport on Thursday, by 55% at Charles-De Gaulle, 65% at Marseille and 45% at all other metropolitan airports, aviation authority DGAC said in a statement. “Significant cancellations and delays are expected at all French airports” due to strikes and protests, France’s flagship airline said on its website. A detailed flight schedule will be published later Wednesday, the Air France-KLM unit said. France’s air-traffic control unions are protesting the government’s effort to rewrite labor rules by including them among workers required to give strike notice in a timely manner. The dispute is raising concerns that travel disruptions could mar the run-up to the Olympic Games, set to kick off in Paris on July 26. Sncta, the nation’s biggest air-traffic-control union, said Wednesday it had reached a deal to lift its strike notice, and backed away from a potential strike from May 9 to 11. Other strikes and protests remain in place, with “intense” talks ongoing, according to DGAC. A series of air-traffic control strikes roiled air travel across Europe last year, leading to thousands of cancellations and delays not only on flights to and from France but on other routes as well. That affected low-cost carriers like Ryanair Holdings Plc, which demanded the European Union do more to protect the industry in France.
Read more...

New airline alliances forge Africa-North America travel corridor

Brussels Airlines, along with its parent company Lufthansa and partner United Airlines, is set to expand its routes by creating a new strategic hub in Brussels, aiming to enhance connectivity between North America and Africa. This move comes as air travel continues to recover post-pandemic and is indicative of the growing importance of the African aviation market. The new hub at Brussels Airport will serve as a key point of transit for passengers traveling between the two continents, leveraging Brussels Airlines’ extensive network in Africa, Lufthansa Group’s influence in Europe, and United’s reach across the Atlantic. Brussels Airlines currently operates to 18 destinations in Africa and is looking to strengthen its position by increasing its short-haul European capacity to support its profitable African routes. Furthermore, the collaboration amongst the airlines, all members of the Star Alliance, could potentially include Air Canada, enhancing the global connectivity through Brussels even further. The partnership is a strategic move to capitalize on the increasing number of travelers between Africa and North America, with an eye on the rising demand and the potential for Brussels to become a major global hub for transcontinental travel.
Read more...

JAL president says plans to use both Boeing and Airbus aircraft

Japan Airlines will continue using both Airbus nd Boeing aircraft, President Mitsuko Tottori said on Wednesday. Tottori told reporters that JAL does not plan to depend only on Airbus aircraft even after it announced a plan last month to buy 21 wide-body A350-900 and 11 A321neo narrow-body jets from Airbus. Tottori's comments came as U.S. planemaker Boeing faces growing concerns over its product safety following a January mid-air loss of a panel on a near-new its 737 MAX 9.
Read more...

Ryanair CEO urges leadership continuity at Boeing in crisis

Ryanair Holdings CEO Michael O’Leary said Boeing management needs to focus on continuity as it seeks to stabilise the business, and that the new head of the commercial aircraft unit has made a promising start. Speaking in London, O’Leary said he’s held talks with Stephanie Pope, Boeing’s new head of commercial aircraft, twice in the last two weeks and that he’s optimistic Boeing will be able to ramp up output and deliver close to 40 jets to Ryanair ahead of the peak summer travel season. O’Leary urged Boeing to keep Pope in Seattle for the next two to three years in order for her to keep a close eye on production. “I think all of the signs at the moment are getting more optimistic,” O’Leary said in an interview. “Now, it’s only a week or two, but that’s the first time deliveries have actually kind of moved forward instead of continuously getting delayed backwards.” Boeing has come under increasing scrutiny from lawmakers, airlines and regulators following a near-catastrophic blowout of a fuselage panel on a 737 Max 9 during flight in early January. The Federal Aviation Administration has restricted the planemaker from raising output on the 737 Max beyond the 38-jet monthly pace until they’re satisfied the quality measures have taken root.
Read more...

Oil sprays from an ANA flight carrying 213 people as it lands in northern Japan

Oil sprayed from an All Nippon Airways plane as it landed Wednesday at Shin Chitose airport in northern Japan, but none of the 213 people on board was injured, officials said. The nonflammable oil from a control system evaporated as it contacted a hot engine, giving the appearance of smoke, ANA officials said. The leakage did not jeopardize the safety of those on board, they said. The leak triggered a warning in the cockpit and its cause was being investigated. ANA flight 71, a Boeing 787-800 Dreamliner, took off from Tokyo’s Haneda Airport with 204 passengers and nine crew members, the airline said. It landed safely and was later towed to the arrival terminal. All passengers and crew disembarked, the airline said. The Chitose city fire department said it mobilized several fire engines. One of the two runways at New Chitose airport near Sapporo was temporarily closed for removal of oil that leaked from the plane.
Read more...

Ryanair CEO says he’d ‘happily’ offer Rwanda deportation flights

Ryanair Holdings Plc Chief Executive Officer Michael O’Leary weighed into the UK’s controversial plan to deport refugees to Rwanda, saying he would “happily” do the flights if he had the available aircraft. “If it was the winter schedule and we had spare aircraft sitting around and if the government were looking for additional deportation flights or any other flights, we would happily quote for the business,” O’Leary said in an interview in London. The UK government hasn’t approached Ryanair to carry out the flights, O’Leary said. Prime Minister Rishi Sunak has vowed to push ahead with a plan to send people seeking asylum in the UK to Rwanda despite opposition from courts and across both sides of the political spectrum. O’Leary, known for his controversial takes on issues from obesity to climate change, shrugged off warnings from the United Nation, which has said that airlines facilitating the removals could be complicit in violating international law. The Rwanda policy was first announced two years ago. Sunak has stuck with it despite opposition as his party slumps in the polls and as the number of asylum seekers reaching the UK by boat his a record.
Read more...

Heathrow vows ‘robust’ plan as it faces record-breaking passenger numbers and strikes

Heathrow has promised it has a “robust operating plan in place to keep the airport running smoothly” this summer as it faces the twin pressures of record-breaking passenger numbers and potential industrial action. The UK hub airport is experiencing surging demand for travel across all its key routes, leading it to raise its forecasts for full-year passenger numbers from 81.4mn to 82.4mn, which would beat 2019’s previous record. “We are seeing growth in all markets and in all classes [of travel],” said chief financial officer Javier Echave. The announcement comes as Unite union revealed plans for two sets of strikes in May, including contracted refuelling staff over the early May bank holiday. Nearly 800 workers employed by the airport are to walk out for seven days from May 7 in a dispute over plans to outsource some jobs to contractors. Heathrow, which said there would be no job losses, said it expected the airport to continue to operate normally throughout the strikes. “I think that the key message is reassurance . . . we expect no disruption,” Echave said. The two-runway airport has long operated at close to its maximum capacity. But Echave said airlines had turned to using larger aircraft and shifted an increasing number of their routes from short-haul to long-haul, which allows passenger numbers to rise within the airport’s limits of 480,000 flights a year. Heathrow boosted its predictions for passenger numbers this year after a record-breaking first quarter in which 18.5mn travellers passed through the airport, driven by growth in Asian routes. The airport said adjusted pre-tax profits for the quarter were GBP83m, swinging from a loss of GBP139m in the same period last year.
Read more...

UK imposes sustainable fuel targets on airlines

Airlines in the UK will be required to progressively switch to greener but more expensive fuel sources under government plans to help the heavily polluting industry decarbonise. Ten per cent of all jet fuel on flights taking off from the UK will need to be made up of so-called “sustainable aviation fuels”, or SAFs, by 2030, the government said on Thursday. Made up of a diverse range of sources from crops and used cooking oil to household waste, SAF can emit about 70% less carbon dioxide over its life cycle than traditional aviation fuel and is largely compatible with existing aero-engines. It currently represents the only realistic way for the airline industry to reach its target of net zero by 2050, given that breakthrough technologies such as hydrogen- or electric-powered passenger aircraft are still in experimental stages. But the new fuels are currently at least three times as expensive as traditional jet fuel, and only produced in very small quantities. Less than 1% of UK jet fuel was made from SAFs last year. With 1.2mn tonnes a year needed in the UK by 2030 under the mandate, the government hopes that binding targets will spur fuel companies to produce more, particularly in the UK, driving down the price in the process. “Sustainable aviation fuel protects the future of the UK aviation, the thousands of British jobs that depend on it, and the holidays and business travel flights that we all rely on,” said transport secretary Mark Harper. Environmental groups and some scientists have questioned the aviation industry’s reliance on SAFs to reach its target of net zero by 2050, and say it is unclear whether alternative fuels are viable or truly sustainable when needed at scale, arguing that flying less is the only way to genuinely cut emissions. Most airline bosses expect that a gradual switch to more expensive SAFs will lead to higher ticket prices as higher fuel costs are passed down to consumers.
Read more...

IATA calls on Bangladesh and Pakistan to release over $720m in blocked funds

IATA has urged the governments of Pakistan and Bangladesh to release more than $720m in blocked airline funds, while calling for simplified processes to repatriate the money. Philip Goh, IATA’s regional vice-president for Asia-Pacific, says the timely repatriation of these funds “is critical for payment of dollar-denominated expenses such as lease agreements, spare parts, overflight fees, and fuel”. Goh adds: “Delaying repatriation contravenes international obligations written into bilateral agreements and increases exchange rate risks for airlines.” IATA has called on Pakistan to simplify its “onerous” repatriation process, which currently requires audit and tax exemption certificates. The requirements “cause unnecessary delays”, the industry association adds. Pakistan accounts for about $399m in blocked funds. As for Bangladesh, IATA says the country’s central bank must prioritise the aviation sector’s access to foreign exchange facilities. The country is holding $323m in blocked funds, according to IATA. “We recognise that governments have a difficult challenge in how foreign currencies are used strategically,” says Goh. ”Airlines operate on razor-thin margins. They need to prioritise the markets they serve based on the confidence they have in being able to pay their expenses with revenues that are remitted in a timely and efficient fashion.”
Read more...

Boeing loses $355m in latest quarter

Boeing on Wednesday reported a $355 million loss for the first three months of the year, as it deals with a quality crisis stemming from a Jan. 5 flight during which a panel blew off one of its planes. The loss was not as steep as analysts had expected, and it was smaller than the $425 million loss in the first quarter last year. Boeing brought in more than $16.5b in revenue in the first quarter, less than it reported last year, and the company burned through almost $4b in cash, in both cases surpassing analyst expectations. The panel blowout on a 737 Max 9 jet during an Alaska Airlines flight resulted in no major injuries, but the incident dealt a heavy blow to the company, reigniting concerns about Boeing’s practices five years after two fatal crashes involving 737 Max 8 planes. Since the Jan. 5 flight, the company has taken steps to improve quality, including expanding inspections, changing how work is performed, increasing training and soliciting more feedback from employees. “We are absolutely committed to doing everything we can to make certain our regulators, customers, employees and the flying public are 100% confident in Boeing,” Dave Calhoun, Boeing’s CE, said in a letter to employees on Wednesday. Last month, Calhoun said he would step down by the end of the year, part of a management shake-up. Boeing is also in talks to buy Spirit AeroSystems, a troubled supplier that builds the body of the Max jet and that had been a part of Boeing until it was spun out two decades ago.
Read more...

Buttigieg says Boeing must meet FAA quality plan before raising 737 MAX output

U.S. Transportation Secretary Pete Buttigieg said on Wednesday that Boeing must meet a government mandate to address systemic quality-control issues within 90 days before it will be able to boost 737 MAX production. Buttigieg noted that Boeing is about halfway through that 90-day clock set by the FAA. "We're not to going let them (increase production) until they have satisfied to the FAA that they can do it safely," he said at an event at Reagan National Airport outside Washington. The FAA in late January took the unprecedented step of telling Boeing it would not allow the U.S. planemaker to expand 737 MAX production in the wake of a mid-air emergency on an Alaska Airlines 737 MAX 9. The Justice Department has opened a criminal probe into the mid-air cabin panel blowout. FAA Administrator Mike Whitaker told Reuters in March that Boeing is allowed to produce 38 of the 737 planes per month, but actual current production "is lower than that." Reuters reported earlier this month that Boeing's monthly output rate fell as low as single digits in late March. Boeing CEO Dave Calhoun said on an earnings call on Wednesday that the FAA wants a plan in 90 days "that, in essence, monitors and measures whether our production system is in control moving forward." "90 days isn't like a wave a magic flag, and everything is great, and you guys can go from 38 to 40," he added.
Read more...

Boeing prosecutors aim to decide criminal charge by early June

The US Justice Department could decide by the first week of June whether to tear up its controversial deferred-prosecution agreement with Boeing, according to lawyers for the families of people killed in two crashes of 737 Max jets. Prosecutors met with the families Wednesday in Washington to share information about the timing of their investigation and listen to concerns. The relatives have criticized the department’s 2021 deal that would allow Boeing to escape criminal charges over crashes in 2018 and 2019 that killed 346 people, if the company met certain conditions, amended its disclosure practices and paid a $243m fine. But Boeing’s most recent mishap — a midair blowout of a door plug on the fuselage of an Alaska Airlines plane in January — sparked a criminal investigation of the company’s practices and raised the possibility of ditching the DPA, which was set to expire just days after the accident. The department has until July to nix the agreement. Prosecutors aim to decide by early June to give families and Boeing enough notice of what they’re planning. A judge would still have to approve any changes to the deal. During the meeting in Washington, the families and their lawyers raised questions about the deferred-prosecution agreement and how it came about, according to several attendees who spoke at a press conference. But they said Justice Department prosecutors didn’t provide much detail. “The families were very disappointed that the Justice Department refused again and again to answer their questions,” said Paul Cassell, a former federal judge who is leading the families’ efforts to scuttle the 2021 deal. “We have no idea what the Justice Department will do, which leads us to believe they’re still in bed with Boeing and are going to be moving to dismiss the charges this summer. If they move to dismiss, we will fight that motion vigorously.” The Justice Department and Boeing declined to comment on the meeting.
Read more...

Wanted: An executive to repair Boeing

When Boeing named Stephanie Pope to the new position of COO in December, the move was widely viewed as a sign that she might succeed the company’s CE, Dave Calhoun, in the next few years. Four months later, facing its second big crisis in five years, the company has begun a fresh search for another CE. And Pope appears to be just one of several potential candidates for one of the most prominent and perilous positions in corporate America: fixing Boeing. Late last month, the company announced that Calhoun would step down at the end of the year, much earlier than expected. The chairman of Boeing’s board vacated his position immediately, and the head of its troubled commercial planes business departed. The management changes came after a panel blew off a 737 Max 9 jet during an Alaska Airlines flight in January, an incident that renewed questions about the quality and safety of Boeing’s planes several years after two fatal crashes of 737 Max 8 planes in 2018 and 2019. As recently as 2021, Boeing had signaled that Calhoun, who took the company’s reins after the Max 8 crashes, would not leave anytime soon. The company’s board raised the mandatory retirement age for the CE to 70, from 65, a change that would have allowed Calhoun to stay in the job until April 2028. But the Alaska Airlines incident disrupted those plans, and Boeing’s board must now identify a new top executive on a more compressed timeline. That new leader has to be someone who can prove to regulators, airline executives, employees and investors that Boeing is firmly committed to improving the quality and safety of its products. “Given the nature of what’s required, the new C.E.O. may prove to be a bit of a unicorn,” analysts at Bank of America Global Research wrote in a research note this month. “They need a strong strategic view, an understanding of engineering, an understanding of manufacturing and they need to have an ability to win hearts and minds.”
Read more...

Former Boeing manager says workers mishandled parts to meet deadlines

Two framed documents from a long career at Boeing hang side by side in Merle Meyers’s home: A certificate from 2022 that thanks him for three decades of service. And a letter he received months later reprimanding him for his performance. The documents reflect his conflicting emotions about the company. Meyers, who worked as a Boeing quality manager until last year, holds deep affection for the aircraft manufacturer, where both he and his mother worked. But he is also saddened and frustrated by what he described as a yearslong shift by Boeing executives to emphasize speed over quality. “I love the company,” said Meyers, 65, who is publicly sharing his concerns for the first time, supported by hundreds of pages of emails and other documents. For years, he said, quality was the top priority, but that changed over time: “Now, it’s schedule that takes the lead.” Boeing is revered by many aviation professionals as a lasting symbol of ingenuity and an engineering and manufacturing powerhouse. It is so important to the U.S. economy that presidents have effectively served as salesmen for its planes abroad. The company is a dominant force in Washington State and a top employer in the Seattle area, where it was founded and produces the 737 and other planes. A job at Boeing is often a source of pride, and many employees have intergenerational ties to the company. In addition to his mother, Meyers said, his wife’s father and grandfather also worked there. But that shared pride has been badly bruised in recent years. The company’s reputation was tarnished by a pair of fatal crashes of the 737 Max 8 in 2018 and 2019 and an episode when a panel blew out of a 737 Max 9 plane on Jan. 5. That flight reignited intense scrutiny from regulators, airlines and the public. Last month, Boeing’s CE, Dave Calhoun, said he would step down at the end of the year, and its chairman left his position immediately. The company said it had since taken steps to improve quality, including increasing inspections, adding training and pausing production so managers can hear directly from workers. “We are using this period, as difficult as it is, to deliberately slow the system, stabilize the supply chain, fortify our factory operations and position Boeing to deliver with the predictability and quality our customers demand for the long term,” Calhoun said in a letter to employees on Wednesday. While aviation remains exceedingly safe — far fewer people die on planes than in cars, trucks or buses — the Jan. 5 flight highlighted quality concerns raised by Meyers and other current and former employees. Many who have spoken out say they have done so out of respect for Boeing employees and their work, and a desire to push the company to restore its reputation.
Read more...