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.


Dogecoin soars as Trump announces a government efficiency group nicknamed DOGE

Updated 14 November 2024
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Dogecoin soars as Trump announces a government efficiency group nicknamed DOGE

  • Dogecoin got a bump after US President-elect Trump named Tesla’s Elon Musk as one of the heads of a new “Department of Government Efficiency,” which is not a government agency but does have the acronym DOGE

NEW YORK: Wow, much bull market.
Dogecoin, the cryptocurrency whose mascot is a super-cute dog that muses things like “much wow,” has been racing higher in value since Donald Trump won the presidential election last week. It got another bump after Trump named Tesla’s Elon Musk as one of the heads of a new “Department of Government Efficiency,” which is not a government agency but does have the acronym DOGE.
All this makes sense and is maybe humorous for anyone who’s chronically online. For others, here’s some explanation about what’s going on:
What is dogecoin?
It’s a cryptocurrency, whose value rises and falls against the US dollar based on however much people will pay for it.
At first, it was seen as a joke. But over time, dogecoin has amassed a group of fans who have periodically sent its price soaring. Like other cryptocurrencies, supporters say it could be used to buy and sell things on the Internet without having to worry about a central bank or government affecting how many are in circulation.
How much has dogecoin climbed?
One dogecoin — which is pronounced dohj-coin — was worth less than 16 cents just before Election Day. It’s since more than doubled to nearly 38 cents, as of Wednesday afternoon, according to CoinDesk. It briefly got above 43 cents earlier Wednesday.
Why is it climbing so much?
Cryptocurrencies have generally been shooting higher since Trump’s election. Bitcoin, which is the most famous digital currency, has set an all-time high above $93,000 after starting the year below $43,000.
Excitement is racing because Trump has embraced crypto and said he wants the United States to be the “crypto capital of the planet” and create a bitcoin “strategic reserve.”
What does Elon Musk have to do with any of this?
Musk has become one of Trump’s close allies. He’s also been one of the most famous fans of dogecoin. In 2021, Musk played a character on “Saturday Night Live” who went by the nickname, the “Dogefather.”
In 2022, Musk made more headlines when he suggested Twitter should perhaps accept dogecoin as payment for subscriptions.
It all came to a head Tuesday, when Trump announced the “Department of Government Efficiency,” which will work from outside the government to offer the White House “advice and guidance” and will partner with the Office of Management and Budget to “drive large scale structural reform, and create an entrepreneurial approach to Government never seen before.”
It has the acronym DOGE, which is also the ticker symbol under which dogecoin trades. Musk will lead it, along with former GOP presidential candidate Vivek Ramaswamy.
This all sounds weird.
Dogecoin’s history is interesting.
In 2021, on April 20, dogecoin fans tried but failed to get its value above $1 on what they were calling “Doge Day.”
April 20 has long been an unofficial holiday for marijuana devotees, and Musk himself has referred to 420 several times in his career, including his tweet in 2018 saying he had secured funding to take Tesla private at a price of $420 per share.
Is the Shiba Inu whose picture is in the meme getting special treats because of all this?
Sadly, no. The dog, whose real name was Kabosu, passed away in Japan earlier this year at 18 years old. Much rest, may she have.


Number of active mining licenses in Saudi Arabia reaches 2,295

Updated 13 November 2024
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Number of active mining licenses in Saudi Arabia reaches 2,295

  • The goal is to transform mining into the third pillar of the national industry and leverage the Kingdom’s vast mineral wealth, estimated at around SR9.3 trillion

RIYADH: Saudi Arabia’s Ministry of Industry and Mineral Resources issued 35 new mining licenses in September, the Saudi Press Agency reported on Wednesday citing the National Center for Industrial and Mining Information.

These permits included 24 exploration licenses, seven quarry licenses for building materials, three reconnaissance licenses, and 1 mining exploitation and small mine license.

Official spokesperson for the ministry, Jaraah bin Mohammed Al-Jaraah, explained that by the end of September 2024, the total number of active mining licenses in the sector had reached 2,295. The majority of these licenses are quarry licenses for building materials, with 1,461 issued, followed by 566 exploration licenses, 203 mining exploitation and small mine licenses, 42 prospecting licenses, and 23 surplus mineral resource licenses.

Al-Jaraah emphasized that the Ministry of Industry and Mineral Resources is focused on protecting and enhancing the value of the mining sector in alignment with Saudi Arabia’s Vision 2030. The goal is to transform mining into the third pillar of the national industry and leverage the Kingdom’s vast mineral wealth, estimated at around SR9.3 trillion.


Saudi Arabia’s CMA approves regulatory changes to strengthen debt market

Updated 13 November 2024
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Saudi Arabia’s CMA approves regulatory changes to strengthen debt market

RIYADH: Saudi Arabia’s Capital Market Authority has approved its largest regulatory overhaul to date for the sukuk and debt instruments market, marking a significant step in the country’s financial sector development.

The newly approved changes introduce key amendments to the rules on the offer of securities and continuing obligations, particularly related to the issuance of debt instruments.

These adjustments simplify prospectus requirements for public, private, and exempted offerings, streamlining the process and reducing regulatory burdens.

These changes will take effect as soon as they are published and are designed to attract a wider range of issuers and foster deeper investment in the market.

“By facilitating the listing requirements for debt instrument, we are increasing the attractiveness of the local debt capital market to drive increased participation from issuers and investors,” Mohammed Al-Rumaih, CEO of the Saudi Exchange, said.

The amendments to the listing rules of debt instruments mark a significant milestone in the continued development of Saudi Arabia’s debt capital market, further reinforcing our commitment to building a globally competitive and sophisticated debt capital market.”

The reforms aim to strengthen Saudi Arabia’s regulatory framework for debt instruments, creating a more dynamic and accessible market. Notably, the amendments allow the Kingdom’s development funds, sovereign wealth funds, and development banks to issue debt instruments through exempt offerings, subject to specific conditions.

This flexibility will enable these institutions to better align their financing strategies with Saudi Arabia’s broader development goals.

“As we move forward, the Saudi Exchange remains focused on providing a robust platform for debt financing that supports the Kingdom’s Vision 2030 ambitions, specifically the Financial Sector Development Program aspirations in deepening the debt capital market,” Al-Rumaih said.

The new regulations also simplify the documentation process for public offerings, reducing prospectus requirements by more than 50 percent.

A dedicated section for public offerings will improve regulatory clarity, ensuring that all material information is disclosed to investors while maintaining investor protection.

In addition to easing public offering requirements, the changes introduce more flexibility for private offerings. The CMA has eliminated the prior requirement for advance notification before launching an offering.

Issuers can now notify the CMA and immediately proceed with their offerings, a change that is expected to expedite the financing process and improve efficiency.

These regulatory enhancements are part of Saudi Arabia’s broader efforts to develop its sukuk and debt markets as a crucial funding channel for businesses.

By improving access to financing, the reforms are expected to drive greater economic growth and help position the sukuk and debt markets as central components of the Kingdom’s financial ecosystem.

The reforms align with Saudi Arabia’s Vision 2030 strategy, which seeks to diversify the economy and enhance the capital markets. They also reflect the CMA’s ongoing commitment to improving market transparency, protecting investors, and increasing market participation.

In parallel, the CMA recently invited public feedback on amendments to the investment funds regulations, which are also part of efforts to refine the framework for private and foreign investment funds, particularly in retail markets. These changes aim to better protect retail investors, addressing risks that emerged from a 2021 regulation allowing individual retail investments up to SR200,000 ($53,245).

The consultation period for these proposed changes will run for 30 calendar days.

With these far-reaching regulatory reforms, Saudi Arabia is poised to further strengthen its sukuk and debt markets, positioning them as key drivers of economic growth and investment. The CMA’s efforts to enhance transparency and investor protection are expected to boost both domestic and international confidence in the Kingdom’s financial markets.


Saudi PIF to offer 2% of Saudi Telecom Co. shares to investors

Updated 13 November 2024
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Saudi PIF to offer 2% of Saudi Telecom Co. shares to investors

  • Goldman Sachs Saudi Arabia and SNB Capital are acting as joint global coordinators and bookrunners for PIF
  • Remaining shares held by PIF represent 62% of the firm’s issued share capital

RIYADH: Saudi Arabia’s Public Investment Fund has announced the offering of 2 percent of its Saudi Telecom Co.’s stake, amounting to 100 million shares, to qualified institutional investors locally and globally.

Goldman Sachs Saudi Arabia and SNB Capital, acting as joint global coordinators and bookrunners for PIF, announced that the share price, or offer rate, would be determined through an accelerated book-building process, according to a statement on the Saudi Stock Exchange.

This falls in line with PIF’s vision, which has about $925 billion assets under management, of becoming a global investment powerhouse and the world’s most impactful investor, enabling the creation of new sectors and opportunities that will shape the future global economy, while driving the economic transformation of Saudi Arabia.

The Tadawul statement said that following the completion of the offering, the remaining shares held by PIF in the company, representing 62 percent of the firm’s issued share capital, will be subject to a 90-day contractual lock-up undertaking.

The company will not receive any proceeds from the issuance, and the offering will not dilute the shares of the organization’s additional shareholders.

The statement also said that the final number of offer shares, price, and results will be announced by Nov. 14. 

The sale will be executed through off-market negotiated deals on Nov. 14 before market opening, under the Negotiated Deals Framework stipulated under the Trading and Membership Procedures issued by the Saudi Exchange.

The offering will be available to institutional investors within the Kingdom, qualified foreign institutional backers in line with the Rules for Foreign Investment in Securities, and institutional beneficiaries of swap agreements made with a Capital Market Authority-authorized person to trade shares on the Saudi Exchange on their behalf. 

It will also be open to Gulf Cooperation Council investors, including companies and funds authorized to trade in Saudi shares.


Closing Bell: Saudi Arabia’s TASI closes in red, down 0.97%

Updated 13 November 2024
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Closing Bell: Saudi Arabia’s TASI closes in red, down 0.97%

  • MSCI Tadawul 30 Index declined 15.60 points to close at 1,500.54 points
  • Parallel market Nomu closed the day at 29,205.53 points, reflecting an increase of 95.12 points

RIYADH: The Tadawul All Share Index in Saudi Arabia concluded Wednesday’s trading session at 11,930.45 points, marking a decrease of 117.22 points or 0.97 percent. 

MSCI Tadawul 30 Index also declined 15.60 points to close at 1,500.54 points, a 1.03 percent decrease. 

The parallel market Nomu closed the day at 29,205.53 points, reflecting an increase of 95.12 points, or 0.33 percent.

TASI reported a trading volume of SR5.540 billion ($1.474 billion), with 52 stocks gaining and 178 falling.

The best-performing stock was Shatirah House Restaurant Co., whose share price surged 10 percent to SR20.24.  

Other top performers include Saudi Cable Co. and Alkhaleej Training and Education Co., whose share prices soared by 5 percent and 4.08 percent to SR88.20 and SR30.60, respectively.

Other top performers include Bawan Co. and Middle East Specialized Cables Co.

The worst performer was Ash-Sharqiyah Development Co., whose share price dropped by 5.18 percent to SR19.40.

Other worst performers were United International Transportation Co. and National Medical Care Co., whose share prices dropped by 3.87 percent and 3.33 percent, respectively, to stand at SR79.50 and SR168.60.

Saudi Tadawul Group Holding Co. was another worst performer, whose share price dropped by 3.08 percent to SR232.60.   

On the parallel market Nomu, Leaf Global Environmental Services Co. was the top gainer, with its share price surging by 8.68 percent to SR98.90.

Other top gainers on the parallel market were Fad International Co. and Al Mohafaza Co. for Education, with their share prices surging by 7.24 percent and 6.04 percent to reach SR81.50 and SR28.10, respectively.

Rawasi Albina Investment Co. and Amwaj International Co. were the other top gainers on Nomu.

Al-Razi Medical Co. was the major loser on this market, as the company’s share price slipped by 7.98 percent to SR47.85.  

First Avenue for Real Estate Development Co. and Obeikan Glass Co. were other major losers on Nomu, with share prices dropping by 6.18 percent and 6.01 percent, reaching SR8.35 and SR49.25, respectively.