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FAA, Boeing Blasted Over 737 MAX Failures in Democratic Report

Transportation Committee’s findings blame design errors, flawed aircraft certification system for fatal errors

House Democrats issued a sharply worded report revealing new details of how the combination of Boeing Co. BA 4.19% design errors, lax government oversight and lack of transparency by the plane maker and regulators set the stage for two fatal 737 MAX crashes.

The 238-page document, written by the majority staff of the House Transportation Committee, calls into question whether the plane maker or the Federal Aviation Administration has fully incorporated essential safety lessons, despite a global grounding of the MAX fleet since March 2019.

After an 18-month investigation, the report, released Wednesday, concludes that Boeing’s travails stemmed partly from a reluctance to admit mistakes and “point to a company culture that is in serious need of a safety reset.”

“We have learned many hard lessons as a company from the accidents of Lion Air Flight 610 and Ethiopian Flight 302, and from the mistakes we have made,” Boeing said in a written response to the report, referring to the two fatal MAX crashes. The Chicago-based aerospace giant added: “We have been hard at work strengthening our safety culture and rebuilding trust with our customers, regulators, and the flying public.”

The findings released Wednesday also questioned whether pending changes inside the FAA would be sufficient to end what the report describes as fundamentally inadequate government reviews of new aircraft designs. Engineering and management errors on the MAX, according to the report, reflect a flawed approval process in which agency managers often undercut the authority of lower-level FAA engineers, giving industry undue influence over the process.

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Aerospace Suppliers Brace for Hard Landing

Coronavirus-driven travel slump leads to mounting job losses as plane makers cut output and airlines curb flying

Companies that make parts for Boeing Co. BA and Airbus SE EADSY jets, and provide airlines with everything from engine spares to window shades, are shrinking rapidly in the wake of the pandemic-driven travel downturn.

The Precision Castparts unit of Berkshire Hathaway Inc. BRK.B +0.29% this week became the latest supplier to flag huge job cuts as the maker of aircraft-engine parts said it had shed 10,000 staff—30% of its workforce—since the start of the year.

Warren Buffett’s investment vehicle took a $10 billion write-down on its 2015 acquisition, highlighting how the crisis gripping the airline industry is expected to linger. The world’s two biggest plane makers signaled to suppliers that they plan to lower jet production for several years.
U.S. aerospace manufacturers have already shed more than 100,000 jobs since the start of the year, according to Labor Department data and regulatory filings, with the pandemic adding to existing pressures from the sharply reduced production of the still-grounded Boeing 737 MAX jet. Sector employment had climbed to almost a million at the end of last year and fell to 925,000 by June 30. Job cuts have continued to mount in recent weeks.

The biggest supplier on the MAX program, Spirit AeroSystems Holdings Inc., is cutting 8,000 jobs, around 40% of its commercial aerospace workforce. General Electric Co. is shedding 13,000 from its aviation unit, and other big suppliers such as Raytheon Technologies Corp., Howmet Aerospace Inc. and France’s Safran SA have disclosed cuts in recent weeks.

“We have received more production schedule changes this year than I think we’ve seen in the last five years,” said Spirit Chief Financial Officer Mark Suchinski on a recent earnings call.

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Boeing to Offer More Staff Buyouts

Travel slump leaves aerospace giant looking to cut more jobs than previously planned

Boeing BA Co. plans more job cuts in response to a pandemic-driven drop in jetliner demand it expects to continue for at least three years.

The aerospace giant told its employees in a memo late Monday that it is adding a second round of buyout offers, a move that would further reduce its workforce by an unspecified number beyond the cut of 19,000 already announced in July.

The company has increased the target set in April of cutting overall staff numbers by around 10%, according to the memo to staff from Chief Executive David Calhoun.

Further details are expected on Aug. 24, with the takeup of the buyout offer by staff reducing the number of compulsory job cuts required.

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American Airlines to Cut Service to Small Cities as Federal Aid Runs Out

 

Some small cities will be without air service altogether in October when American Airlines Group Inc. AAL -1.94% cuts flights, as a fight to extend additional federal funds has been mired in a broader stalemate over pandemic relief.

American said it would stop flights to 15 cities once a requirement that the airline maintain the routes in exchange for federal aid expires. American struck the small cities from its schedule from Oct. 7 through Nov. 3, describing the move as the first step in re-evaluating its network in the coming weeks.

American’s cuts will affect airports in cities such as Dubuque, Iowa, Joplin, Mo., New Haven, Conn., and Stillwater, Okla., where the airline operates regional flights that funnel passengers into its bigger hubs. Several of the airports where American is cutting back aren’t served by any other airline.

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