Company Watch - Boeing

AirGuide Business, April 14, 2008

Apr 14, 2008

Alaska Airlines has determined that eight of its nine Boeing (McDonnell Douglas) MD-80s are in compliance with a Federal Aviation Administration airworthiness directive related to wire bundling in the aircrafts' wheel wells. Inspections conducted by Alaska Airlines and the FAA during the past two days have focused on detailed, technical specifications and not safety-of-flight issues. Seven of the aircraft have returned to service after the airline adjusted the spacing of wire bundle ties and taping, and repositioned wire bundle clamps to precisely comply with the FAA's directive. Work continues on the eighth aircraft. The airline's remaining MD-80 is undergoing maintenance unrelated to the wire bundling issue. Other airlines, including Midwest Airlines and Delta Air Lines, canceled some flights for re-inspections. For more information, visit www.alaskaair.com Apr 11, 2008

All Nippon Airways ANA, due to receive the first Boeing 787, and Japan Airlines said they were assessing the cost of the delay and planned talks on compensation, while Australia's Qantas and U.S. carrier Northwest Airlines also expressed disappointment. More than 50 airlines are waiting for 892 Boeing 787s worth USD$145 billion at list prices, with Qantas already seeking compensation for previous delays on its order for 65. The New Zealand carrier will also begin compensation discussions with the plane maker, Chief Financial Officer Rob McDonald said. Apr 10, 2008

American Airlines apologized for its flight cancellations that may have impacted 200,000 passengers over the past three days. American said it canceled more than 900 flights on Thursday as it works to complete the inspections of its MD-80 fleet. On Wednesday, American said it canceled 1,094 flights in addition to the 460 canceled on Tuesday. Customers who were scheduled on a flight that was canceled may request a full refund or apply the value of their ticket toward future travel on American Airlines. Additionally, customers scheduled to travel on any MD-80 flight April 8-11, even if their flight has not been canceled may rebook without a change fee to any American flight with availability in the same cabin as long as their travel begins by April 17, American said. Customers who were inconvenienced with overnight stays should go to AA.com where a link has been established to request information about compensation. Apr 11, 2008

American Airlines said as of Wednesday afternoon 179 Boeing (McDonnell Douglas) MD-80 aircraft were completely inspected, 60 of the 179 MD-80is were returned to service, 119 of the 179 MD-80is were still undergoing work and 121 MD-80's remain to be inspected. These inspections were conducted to ensure compliance with a Federal Aviation Administration (FAA) directive related to the bundling of wires in the wheel well of the MD-80 aircraft, American said. Apr 11, 2008

American Airlines said on Thursday that it has canceled around 570 flights scheduled for Friday as it works to complete the inspections of its Boeing (McDonnell Douglas) MD-80 fleet as required by the Federal Aviation Administration. The airline said that as of Thursday afternoon, 132 MD-80 aircraft were returned to service. On Thursday, American canceled over 930 flights related to the MD-80 inspections. That followed the cancellation of 1,094 flights on Wednesday and 460 canceled flights on Tuesday. Apr 11, 2008

American conducts additional inspections, cancels hundreds of flights American Airlines on Tuesday conducted additional inspections on its Boeing MD-80 jetliners after the FAA raised concerns about wiring work performed on the jets two weeks ago. The Associated Press reports that the inspections forced American to cancel 500 flights on Tuesday, or almost 25% of its mainline schedule, as well as another 850 flights on Wednesday. The airline noted that the inspections are not related to the safety of flying. Apr 9, 2008

U.S. prosecutors filed a civil complaint against Atlas Air on Thursday alleging that maintenance on at least one of its cargo planes was improperly done. Atlas Air has a fleet of 37 Boeing 747 freighters that it leases to international carriers. Atlas Air had no immediate comment on the complaint, filed in U.S. District Court in Manhattan. A Federal Aviation Administration inspector noted a crack 2 to 3 inches long on the cowling of one of the engines during a ramp inspection in May 2006 at JFK Airport in New York, according to the complaint. Maintenance personnel welded the crack and returned the plane to service, but according to the complaint the repair was inadequate and done by a mechanic who "was not trained or qualified to perform" such repairs. The complaint said Atlas Air maintenance workers noted that the crack had been repaired in its log but the job was not done in accordance with FAA rules about such cracks exceeding 1 inch. Prosecutors said the plane was released into service "in an unairworthy condition" and flew several times until June 4, 2006, when the same part became cracked again and was properly replaced. The FAA is seeking civil penalties. Atlas Air's core business is leasing aircraft to other airlines, said a spokesman for the company, adding that it also offers a charter service and some limited scheduled service. Atlas Air's shares shares closed up 56 cents, or 1 percent, at USD$58.51 on the Nasdaq. Apr 11, 2008