Boeing restructures some commercial airplane unit functions

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Boeing Co. said on Thursday that it is restructuring its commercial airplane strategy and marketing functions, a move that comes just days after the company lost a $9.5 billion order in Japan, previously its most secure market.

The action, announced in a memo by Boeing Commercial Airplane Chief Executive Ray Conner obtained by Reuters, comes after Japan Airlines Co Ltd on Monday picked Airbus planes to replace its Boeing 777s, rather than the next-generation Boeing 777X model.

“You probably wouldn’t have seen this happen if they had won JAL,” said Ron Epstein, an analyst at Bank of America Merrill Lynch.

“Boeing is looking at their sales strategy” following the Japanese loss, he added.

Conner linked the shifts to the retirement of Boeing veteran Mike Bair, who he said would step down Nov. 1. Bair oversees the marketing and strategy groups.

In the new structure, marketing functions under Bair would be shifted to the sales group and led by marketing Vice President Randy Tinseth, who would report to global sales chief John Wojick.

Strategy and business development functions will shift to the finance group, and will be led by Kevin Schemm, who will be head of finance and strategy.

Boeing confirmed the memo is accurate but declined to comment further.

 

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Government Shutdown Means Airplane Safety Checks Are Suspended

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Think it’s a problem that you can’t visit a national park or your favorite museum at the Smithsonian? How about passenger airplanes not getting safety inspections?

Due to the federal government shutdown, the Federal Aviation Administration has furloughed some 3,000 aviation safety inspectors, employees charged with making sure that aircraft operate safely and according to regulations.

“There is no one doing this job now,” says Kori Blalock Keller, spokesperson for Professional Aviation Safety Specialists, the union representing aviation safety inspectors.

Aviation safety inspectors examine commercial planes and their maintenance records, talk to pilots to flag any potential problems, and may even ride along in the cockpit to make sure that procedures are being followed. Some of these checks take place during ramp inspections, a mostly random but consistent program of boarding planes for inspection while they’re on layovers.

“A lot of times, our inspectors catch little things and correct them before that plane takes off again,” Blalock Keller says. “If there are problems, the planes stay on the ground.”

According to a statement by the FAA, its Aviation Safety Organization is currently operating with a staff of 310 out of approximately 7,000 employees nationwide. The 310 include “managers in all field offices who will monitor the system and call back employees as necessary. If the furlough extends longer than a few days, we will begin to recall as many as 2,500 employees back to work incrementally, including safety inspectors, engineers and technical support staff, depending on need.”

A separate FAA statement reads: “Safety is our top priority. The FAA continues to support President Obama’s FY2014 budget, and strongly believes that Congress should resolve the lapse in appropriations immediately.”

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$1 million tossed from airplane in Bolivia

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Bolivian officials say they’ve found $1 million in a bag tossed from an airplane.

Government Minister Carlos Romero said anti-drug police spotted a man who was signalling to a low-flying plane at a clandestine landing strip. As the plane swooped low, a bag filled with money was tossed out.

Romero said police arrested three people and seized two vehicles, a rifle and an automatic weapon during Sunday’s operating in Tigre, a town in Santa Cruz state. The plane was not identified, and escaped. He says the operation foiled plans to create a drug factory.

Bolivian officials defend use of coca as a traditional stimulant, but try to prosecute those who try to turn it into cocaine and trade in it.

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“Airplane Mode” Probably OK for Airplanes After All, Officials Admit

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Flight attendant: “Please power down your electronic devices for takeoff.”

Passenger: “Sure thing. Is Airplane Mode OK?”

Flight attendant: “No. You have to turn it all the way off.”

Passenger (peevishly): “But it’s called Airplane Mode!”

Sound familiar? It may not be for much longer. The Associated Press reports today that federal regulators are moving toward a rule change that would allow passengers to leave their iPads, Kindles, smartphones, and other electronic devices on during takeoff and landing. A 28-member Federal Aviation Administration advisory committee voted Thursday to formally recommend the change, anonymous sources told the AP. If that’s true, the FAA will be under heavy pressure to go ahead and approve the eased regulations.

To be clear, passengers still won’t be allowed to talk on their phones or use the Internet on their devices during takeoff and landing. (And, thankfully, it’s unlikely they’ll be allowed to talk on their phones at any point during the flight anytime soon.) But they will be allowed to work offline, including working on an Excel spreadsheet or reading an e-Book or watching a movie they’ve downloaded.

Erring on the side of caution when it comes to airplane safety makes sense. Even if the FAA approves the rule change, it may still require airlines to get their fleets approved individually before they can lift the restrictions. But at this point it seems clear that devices in Airplane Mode pose no threat to flight controls. No study yet has found any evidence of such interference. Last year even the chairman of the FCC urged the FAA to loosen its rules. And as the AP notes:

Delta Airlines said in a letter to the FAA last year that out of 2.3 million flights over two years, the airline received 27 reports from pilots and maintenance crews of possible device interference. None of the reports could be confirmed, the letter said.

The New York Times reported earlier this week that the FAA advisory panel was meeting to consider the changes. The AP’s report today indicates that the panel has in fact voted to recommend them. Now it will be up to the FAA to approve them. How long that will take is unclear, but Missouri Sen. Claire McCaskill, for one, is eager for a decision. If the FAA doesn’t “act swiftly” to lift the restrictions, she told the AP, she’ll introduce a bill to get them moving.

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Airbus soon to deliver first A400M airplane to Turkey

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Airbus Military, the multinational consortium building the “airlifter of the 21st century,” will deliver the first A400M to the Turkish military soon to operate at an air base in the Central Anatolian city of Kayseri

Airbus Military, the multinational consortium building what many in the defense world view as the “airlifter of the 21st century,” will deliver the first A400M to the Turkish military soon, a top company official said.

“The first aircraft for the Turkish military will be delivered in the coming weeks,” said Tom Enders, CEO of EADS, the European defense giant and parent company for Airbus Military. The Turkish A400M will operate at an air base in Kayseri, Central Turkey.

Enders was speaking at a ceremony at the Airbus Military Site in the southern Spanish city of Seville for the official delivery of the second A400M aircraft for the French military. The French Air Force took delivery of the first A400M airlifter from Airbus Military in August.

The Prince of Asrutias Felipe, crown prince and son of Spanish King Juan Carlos andFrench Defense Minister Jean Yves Le Drian were present at the ceremony. From Turkey’s end, the soon-to-be-made delivery marks the culmination of a 10-year effort as a partner country in the Airbus Military consortium. Earlier, the program overcame serious technical problems, delivery delays and budget overruns that almost saw Airbus and the partner nations scrap the program.

The handover of the first French aircraft followed the July 31 receipt of Type Acceptance at the Initial Operating Clearance standard from OCCAR, the European Organization for Joint Armament Cooperation, which has been managing the project on behalf of the seven-nation effort.

’Big success in export markets’ 

Belgium, France, Germany, Luxembourg, Spain, Turkey and Britain joined in a program that together with export customer Malaysia has garnered 174 orders.

Enders expects “big success in export markets.” He said, “This aircraft has the potential to conquer export markets.”

The first two aircraft were delivered by Airbus to IOC (Initial Operational Clearance) standard, offering functionalities limited to logistical flights only. The third production aircraft, the aircraft for Turkey, was also built in the IOC version.

Among the other significant A400M operators, Britain is scheduled to get its first aircraft next year, and German deliveries will follow in 2015.

The turboprop aircraft has a payload capability of up to 37 tons or 116 paratroopers, and can also serve as an air-to-air tanker for fast jets and other aircraft.

Just before the first French delivery in August, EADS announced that Airbus Military’s transport and air tanker aircraft were to be merged into a new defense and space business headquartered in Munich. The military aircraft business unit will be based in Spain and include A400M, A330 tanker transports, Airbus’ share of the Eurofighter program and UAV activities.

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