Most of Boeing 737 Max jets grounded after Ethiopia crash, but US bucks trend

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Three Boeing 737 Max 8 aicraft from Shanghai Airlines are parked at Shanghai Hongqiao International Airport in Shanghai after China banned their use for flights. (AFP)
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A growing number of airlines around the world have grounded their Boeing 737 Max 8 jets following the crash of an Ethiopian Airlines aircraft. (AFP)
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In this Nov. 14, 2018, file photo Boeing 737 MAX 8 planes are parked near Boeing Co.'s 737 assembly facility in Renton, Wash. (AP)
Updated 14 March 2019
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Most of Boeing 737 Max jets grounded after Ethiopia crash, but US bucks trend

  • US aviation officials however said they would not ground Boeing 737 Max planes
  • The 737 Max is the workhorse of the Dubai budget carrier flydubai

SINGAPORE: A growing number of airlines around the world have grounded their Boeing 737 Max 8 jets following the crash of an Ethiopian Airlines plane that killed 157 people on Sunday, five months after a similar Indonesian Lion Air jet plunged into the ocean, killing 189.

US aviation officials however said they would not ground Boeing 737 Max planes, bucking a trend of countries around the world that have suspended the aircraft's operations.

Some airlines and countries that have grounded the aircraft so far:

THAILAND

The Civil Aviation Authority of Thailand has ordered the budget airline Thai Lion Air to suspend flying its Boeing 737 Max planes for seven days while it conducts risk assessments and special training for pilots.
The agency said it will consult with the plane's maker and designer about safety measures. The suspension will begin Thursday. It comes after Sunday's Ethiopian Airlines crash.
Thai Lion Air is the only Thai airline flying B737 Max models.
The airline is an associate company of Indonesia's Lion Air, which lost a B737 Max 8 in October shortly after takeoff from Jakarta in a crash that killed 189 people.

SERBIA

Serbia’s aviation authorities barred Boeing 737 Max planes from the country’s airspace, a spokesperson said Wednesday, joining a wave of government bans worldwide after a second deadly crash involving the model.
Serbia has also banned the aircraft “for take-off and landing at all airports” in the country, a spokesman for the Civil Aviation Directorate said of the measure, which went into effect Tuesday.
He explained that “Serbia is aligning itself with the directives of the European Union Aviation Safety Agency”, which decided on Tuesday to close European airspace to Boeing 737 Max.

EGYPT

Egypt’s civil aviation authority has barred the takeoff, landing of Boeing 737 Max aircraft, a statement said.

NORWAY

Norwegian Air said on Wednesday it will seek compensation from plane maker Boeing for lost revenue and extra costs after grounding its fleet of 737 MAX 8 aircraft in the wake of the Ethiopian Airlines crash.
“We expect Boeing to take this bill,” Norwegian said in an emailed statement to Reuters.
The Oslo-based airline has 18 Max passenger jets in its 163-aircraft fleet.

LEBANON

Lebanon’s aviation authority on Wednesday said it had banned all Boeing 737 MAX planes from landing in Beirut or flying in Lebanese airspace, state news agency NNA said.
A circular was issued by Mohammad Shehabeddine, director of the Civil Aviation Authority at Rafic Hariri International Airport, NNA said.

HONG KONG

Hong Kong on Wednesday barred Boeing 737 MAX airliners from its airspace, the latest in a series of government bans worldwide in the wake of a deadly plane crash in Ethiopia.
Despite Boeing’s assurances in the wake of the disaster, the European Union, Britain and India joined China and other countries grounding the plane or banning it from their airspace as they await the results of the crash investigation.
The semi-autonomous Chinese city’s Civil Aviation Department (CAD) said it was imposing a temporary suspension from 6 p.m. local time (1000 GMT) on Wednesday until further notice on “operation of Boeing B737 MAX aircraft into, out of and over Hong Kong”.
The ban is “solely a precautionary measure to ensure aviation safety and protect the public”, a CAD spokesman added.

ETHIOPIA

A spokesman for Ethiopian Airlines says it grounded its remaining four Max 8 jets as an “extra safety precaution” while it investigates Sunday’s deadly crash. The airline is awaiting the delivery of 25 more Max 8 jets.

CHINA

China has 96 Max 8 jets in service, belonging to carriers such as Air China, China Eastern Airlines and China Southern Airlines. The civil aviation authority directed the planes to be grounded indefinitely on Monday. It said the order was “taken in line with the management principle of zero tolerance for security risks.” There were eight Chinese citizens on the Ethiopian Airlines flight that crashed shortly after taking off on Sunday. The authority said it will consult the US Federal Aviation Administration and Boeing before deciding when to lift the ban.

EUROPE

The European Aviation Safety Agency has issued a directive grounding all Boeing 737-8 Max and 737-9 model aircraft following two recent accidents.

EASA said in its emergency airworthiness directive Tuesday that “at this early stage” of the most recent investigation, “it cannot be excluded that similar causes may have contributed to both events.”

“Based on all available information, EASA considers that further actions may be necessary to ensure the continued airworthiness of the two affected models.”

It says companies may make one noncommercial flight to return their planes to a location where they can be inspected. The grounding applies to all European Union airspace.

BRAZIL

Brazil’s Gol Airlines has suspended the use of seven Max 8 jets. The airline said it is following the investigation closely and hopes to return the aircraft to use as soon as possible. Gol said it has made nearly 3,000 flights with the Max 8, which went into service last June, with “total security and efficiency.”

SINGAPORE

Singapore has temporarily banned Max 8 jets — and other models in the Max range — from entering and leaving the country. The civil aviation authority said it was “closely monitoring the situation” and the ban will be “reviewed as relevant safety information becomes available.” SilkAir, a regional carrier owned by Singapore Airlines, has six Max 8 jets. It said the ban “will have an impact on some of the airline’s flight schedules.”

UAE

The UAE’s General Civil Aviation Authority said its ban on the aircraft in its airspace was “a precautionary measure.” The 737 Max is the workhorse of the Dubai government-owned budget carrier flydubai. It operates 11 Boeing 737 Max 8 and 2 Max 9 jetliners. Its total fleet is around 60 aircraft, including other models of the 737.

CANADA

Canadian charter airline Sunwing is suspending use of its four Boeing 737 Max 8 planes.

Canadian Transport Minister Marc Garneau said he has no plans to ground Canada’s fleet of 737 Max aircraft, but that “all options are on the table.”

VIETNAM

Vietnam is banning Boeing 737 Max planes from flying into its airspace.

Dinh Viet Thang, director of Vietnam’s civil aviation authority, said Wednesday that airlines flying those models of planes will have to change the aircraft for safety purposes. The ban lasts until further notice.

None of Vietnam’s four airlines uses the Max model planes in their fleets, but Korea’s Eastar Jet, Thai Lion Air and Malaysia’s Malindor Air fly those planes to Vietnamese destinations.

INDIA

India says it is immediately grounding all Boeing 737 Max 8 planes after Sunday’s deadly Ethiopian Airlines crash. A statement late Tuesday says the planes “will be grounded till appropriate modifications and safety measures are undertaken to ensure their safe operations.”

The statement does not say how many planes are affected.

AUSTRALIA

Australia has announced a temporary ban on flights by Boeing 737 Max aircraft, although none of its airlines currently operate them. The Civil Aviation Safety Authority said Tuesday that the ban will affect two foreign airlines — SilkAir and Fiji Airways — that use them for flights to Australia. The authority said Singapore’s SilkAir has already grounded its 737 Max jets, and that it is working with regulators there and in Fiji to minimize disruptions. It said that Fiji Airways has two 737 Max 8 jets in its fleet. Fiji Airways and Fiji’s Civil Aviation Authority said they would ground the fleet until more information is known about the cause of the Ethiopian Airlines accident.

CAYMAN ISLANDS

Cayman Airways, a Caribbean carrier, said it stopped using its two Max 8 jets starting Monday. President and CEO Fabian Whorms said the move will cause changes to flight schedules. Cayman is the flag carrier of Cayman Islands, a British overseas territory.

INDONESIA

Indonesia said it would temporarily ground Max 8 jets to inspect their airworthiness. Director General of Air Transportation Polana B. Pramesti said the move was made to ensure flight safety. A Lion Air model of the same plane crashed in Indonesia in October. Indonesian airlines operate 11 Max 8 jets. Lion Air, which owns 10 of them, said it will try to minimize the impact of the decision on operations. The other Max 8 jet belongs to national carrier Garuda.

MALAYSIA

The Civil Aviation Authority said no Malaysian carriers operate the Max 8, but that foreign airlines are banned from flying the plane in Malaysia, and from transiting in the country, until further notice.

MEXICO

Mexican airline Aeromexico has suspended flights of its six Max 8 jets. Aeromexico said it “fully” trusts the safety of its fleet but ordered the grounding to ensure “the safety of its operations and the peace of mind of its customers.” It said other planes will take over the routes usually flown by the Max 8.

OMAN

Oman  barred flights by Boeing 737 Max 8 and 9 aircraft. Oman’s Public Authority for Civil Aviation made the sultanate’s announcement, without elaborating on its reasoning. State-owned Oman Air operates five Max 8 aircraft and said it was rescheduling other planes for its flights.

SOUTH AFRICA

Comair, the operator of British Airways and Kulula flights in South Africa, says it has grounded its Boeing 737 Max 8 while it consults with Boeing, other operators and technical experts.

A statement does not say how many planes are affected. It says the decision was made without intervention from regulatory authorities.

SOUTH KOREA

South Korean airline Eastar Jet said it would suspend operations of its two Boeing 737 Max 8 planes and replaced them with Boeing 737-800 planes starting Wednesday on routes to Japan and Thailand. The airline says it hasn’t found any problems, but is voluntarily grounding the planes in response to customer concerns.

TURKEY

In a statement on Twitter Tuesday, Turkish Airlines CEO Bilal Eksi said all Boeing 737 Max flights are suspended until the “uncertainty affecting safety is cleared.” He added that passenger safety was the company’s priority.

ICELAND

Icelandair Group says it has temporarily suspended operations of its three Boeing 737 Max aircraft until further notice.

President and CEO Bogi Nels Bogason said Tuesday that the company will follow developments closely and work with local, European and US authorities on any steps that need to be taken.

He said the temporary suspension won’t impact the company’s operations, as it only affects three aircraft out of a fleet of 33.

NEW ZEALAND

New Zealand and Fiji have suspended Boeing 737 Max 8 flights in and out of the two countries following the crash of an Ethiopian Airlines jetliner.

The decision only affects one operator, Fiji Airways. No New Zealand airlines use the Max 8 planes.


NEOM board of directors announces leadership change

Updated 12 November 2024
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NEOM board of directors announces leadership change

  • Head of Public Investment Fund’s Local Real Estate Division since 2018, Al-Mudaifer has a deep and strategic understanding of NEOM and its projects

NEOM: The NEOM Board of Directors on Tuesday announced the appointment of Aiman Al-Mudaifer as acting CEO of the company. Al-Mudaifer assumes leadership of NEOM, following Nadhmi Al-Nasr’s departure.

As NEOM enters a new phase of delivery, this new leadership will ensure operational continuity, agility and efficiency to match the overall vision and objectives of the project.

Al-Mudaifer takes the helm of the organization with the support of a strong leadership team across NEOM’s regions, sectors and departments.

Head of Public Investment Fund’s Local Real Estate Division since 2018, Al-Mudaifer has a deep and strategic understanding of NEOM and its projects.

In his role at PIF, Al-Mudaifer oversees all local real estate investments and infrastructure projects. He is also a board member of multiple prominent companies within the Kingdom.

NEOM is a fundamental pillar of Saudi Vision 2030 and progress continues on all operations as planned, as we deliver the next phase of our vast portfolio of projects including THE LINE, Oxagon, Trojena, Magna and The Islands of NEOM. 

Through these projects, NEOM seeks to achieve harmony between livability, business and nature, and to create a better future for current and future generations.


Maldives, Bulgaria push for greater climate action, financing

Updated 12 November 2024
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Maldives, Bulgaria push for greater climate action, financing

RIYADH: Insufficient financing continues to be a significant barrier preventing many countries, especially underdeveloped nations, from meeting their climate goals, according to the President of the Maldives.

Speaking on the second day of COP29, held in Azerbaijan from Nov. 11-22, Mohamed Muizzu emphasized that small island developing states require trillions, not billions, of dollars in climate finance.

“It is the lack of finance that inhibits our ambitions, which is why this COP, the finance COP, we need to deliver the new climate finance goal. This must reflect the true scale of the climate crisis. The need is in trillions, not billions,” Muizzu said.

He added, “It must consider the special circumstances of small island developing states — it must include adaptation, mitigation, and loss and damage.”

Muizzu also reiterated the importance of the environment for his country, stating: “You have called for stronger climate action. Our call has not changed. Our cause has not strayed because, for us, the environment and the ocean are more than resources. They are our cultural identity.”

In a similar vein, Bulgarian President Rumen Radev addressed the global impact of climate-related disasters, emphasizing that no region is immune to the deadly and costly consequences of climate change.

“Bulgaria is committed not only to being part of regional and energy cooperation initiatives across Central and Eastern Europe, the Balkans, and the Black Sea region but also beyond, by strengthening the links between the European Union and non-EU countries who share our priorities on climate neutrality, just energy transition, energy security, and low-carbon technological innovation,” Radev said.

He further called for broader action, stating, “All parties should undertake greater efforts to integrate climate change adaptation and resilience into all policies and strategies.”


Closing Bell: Saudi main index slips to 12,048

Updated 12 November 2024
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Closing Bell: Saudi main index slips to 12,048

RIYADH: Saudi Arabia’s Tadawul All Share Index fell on Tuesday, losing 58.74 points to close at 12,047.67.

The total trading turnover of the benchmark index was SR5.75 billion ($1.53 billion), with 70 stocks advancing and 152 declining.

Saudi Arabia’s parallel market saw a drop, losing 50.59 points to close at 29,110.41. The MSCI Tadawul Index also declined, shedding 5.06 points to end at 1,516.14.

The best-performing stock on the main market was Al Jouf Cement Co., with a 4.75 percent increase to SR10.58. Other top gainers included Malath Cooperative Insurance Co. and Elm Co., with shares rising by 4.40 percent to SR15.66 and 3.87 percent to SR1,101.1, respectively.

The worst performer on the main index was Fawaz Abdulaziz Alhokair Co., whose share price dropped by 4.42 percent to SR12.12.

National Environmental Recycling Co., also known as Tadweer, announced it had signed a memorandum of understanding with Re Sustainability Middle East Co. to explore the potential for establishing smelters and recycling units in the Kingdom. According to a statement on Tadawul, the deal is valid for one year and carries no immediate financial impact.

The company’s share price declined by 0.45 percent to SR13.4. 

Purity for Information Technology Co. announced it has secured a contract valued at SR10.7 million from Saudi Comprehensive Technical and Security Control Co. to supply technology equipment. The company stated that the financial impact of the contract will be reflected in the first quarter of next year.

Its share price dropped by 0.73 percent to SR8.33.

Red Sea International Co. reported a narrowed net loss of SR2.18 million for the first nine months of this year, compared to a SR54.7 million loss in the same period in 2023. According to a statement on Tadawul, the improvement was driven by a 515.78 percent year-on-year increase in sales revenue. However, Red Sea International’s share price declined by 4.05 percent to SR71.

Lazurde Co. for Jewelry reported a 42.98 percent decline in net profit for the first nine months, totaling SR24.8 million, compared to the same period last year. The company attributed this drop to a 6.61 percent year-on-year decrease in operating profit over the nine-month period. Lazurde’s share price dropped by 2.05 percent to SR13.36.


UN climate chief urges aggressive action as emissions hit GDP

Updated 12 November 2024
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UN climate chief urges aggressive action as emissions hit GDP

  • UN official warned that worsening climate impacts will ‘put inflation on steroids’ unless every country takes bolder climate action
  • Simon Stiell called on governments to leave COP29 with a clear global climate finance plan

RIYADH: The global climate crisis is rapidly evolving into an economic threat, with the impact of emissions reducing the gross domestic product of several countries by up to 5 percent, a UN official said. 

Speaking at the high-level segment for heads of state and government at the COP29 in Baku, Simon Stiell, executive secretary of the UN Framework Convention on Climate Change, emphasized the urgent need for more aggressive climate actions to address economic challenges, including rising inflation. 

“We used to talk about climate action as being mostly about saving future generations. But there has been a seismic shift in the global climate crisis, as the climate crisis is fast becoming an economy killer,” said Stiell. 

He added, “In this political cycle, climate impacts are curving up to 5 percent off GDP in many countries. The climate crisis is a cost-of-living crisis, as climate disasters are driving up costs for households and businesses.” 

Stiell’s comments came shortly after a report by finance consultancy Oxera, which revealed that climate-related extreme weather events have cost the global economy more than $2 trillion over the past decade, with the US being the most affected. 

The UN official warned that worsening climate impacts will “put inflation on steroids” unless every country takes bolder climate action. 

Stiell urged the world to learn from the COVID-19 pandemic, highlighting the economic suffering caused by slow and ineffective collective action on supply chain issues. 

Describing climate finance as “global inflation insurance,” he warned that failing to address the economic toll of climate change would lead to disaster. 

“Letting this issue languish halfway down cabinet agendas is a recipe for disaster,” he said. 

However, Stiell remained optimistic, asserting that effective climate action could save economies and create new economic opportunities. He pointed to the growth of renewable energy as a potential driver of stronger financial states for nations. 

“This isn’t just about saving your economies and people,” he said. “Bolder climate action can drive economic opportunity. Cheap, clean energy can be the bedrock of your economies. It means more jobs, growth, less pollution choking cities, healthier citizens, and stronger businesses.” 

Stiell called on governments to leave COP29 with a clear global climate finance plan and urged international cooperation as the key to combating global warming and ensuring humanity’s survival. 

“We need your direct engagement on new national climate targets and plans — NDCs — so that all of you can benefit from the boom in clean energy and climate resilience,” said Stiell. 

He added: “These are not easy times, but despair is not a strategy, nor is it warranted. Our process is strong, and it will endure. After all, international cooperation is the only way humanity can survive global warming.” 


OPEC revises down global oil demand growth forecasts for 2024, 2025

Updated 12 November 2024
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OPEC revises down global oil demand growth forecasts for 2024, 2025

  • OPEC revised its 2024 global oil demand growth estimate to 1.82 million barrels per day, down from 1.93 million bpd forecast last month

LONDON: The Organization of the Petroleum Exporting Countries has again downgraded its global oil demand growth projections for both 2024 and 2025, marking the fourth consecutive reduction.

The revision, announced on Tuesday, underscores weaker demand expectations for key regions such as China, India, and other parts of the world.

The updated forecast highlights the ongoing challenges faced by OPEC+, the broader alliance that includes OPEC members and partners like Russia. Earlier this month, OPEC+ delayed plans to increase oil output starting in December, citing concerns over falling oil prices.

In its latest monthly report, OPEC revised its 2024 global oil demand growth estimate to 1.82 million barrels per day, down from 1.93 million bpd forecast last month. This marks the first revision to the outlook since it was initially set in July 2023.

China was the primary driver of the downward revision. OPEC reduced its forecast for Chinese oil demand growth to 450,000 bpd, down from 580,000 bpd, noting that diesel consumption in September dropped year on year for the seventh consecutive month. OPEC attributed this decline to a slowdown in construction and weak manufacturing activity, as well as the rising use of LNG-fueled trucks in China.

The weaker outlook weighed on oil prices, with Brent crude trading below $73 per barrel following the release of the report.

The demand outlook for 2024 remains uncertain, with significant differences among forecasters regarding the strength of global demand growth, particularly concerning China’s recovery and the pace at which the world transitions to cleaner fuels.

In addition to the 2024 revision, OPEC also lowered its forecast for global oil demand growth in 2025 to 1.54 million bpd, down from the previous estimate of 1.64 million bpd.