According to CCTV News on June 14th, local time, the Federal Aviation Administration of the United States stated that based on evidence provided by suppliers, the two major commercial airlines Boeing and Airbus may have used titanium components sold through forged documents in their aircraft.
Previously, Spirit AeroSystems accused Boeing and Airbus of selling titanium components on their aircraft using forged proof materials. The Federal Aviation Administration of the United States has stated that it will investigate this matter. In a statement, Prestige Aviation Systems stated that it has removed all suspicious titanium from the company's supply chain.
On June 19, 2023, Boeing 737 MAX and Boeing 777X aircraft (below) performed at the Paris Air Show held at Bourche Airport in the suburbs of Paris, France. Photo by Xinhua News Agency reporter Gao Jing
It is reported that Boeing reported to the Federal Aviation Administration of the United States its procurement of materials through distributors, but the distributor may have forged or provided incorrect records.
This is another scandal recently faced by the aviation industry in the United States and Europe.
According to Xinhua News Agency on the 14th, Mike Whittaker, the director of the Federal Aviation Administration of the United States, admitted on the 13th that the agency had been too lax in regulating Boeing in the past. Whitaker said at a hearing in the Senate Commerce Committee that prior to the door latch detachment incident on January 5 of this year on an Alaska Airlines Boeing 737 MAX 9 aircraft, the Federal Aviation Administration's regulatory approach to Boeing was "too lax, overly focused on document review, and insufficiently focused on on-site inspections.".
According to Reuters, this is the first time that the US aviation regulatory agency has acknowledged insufficient supervision of Boeing regarding the door stopper detachment incident.
"The Federal Aviation Administration should have seen more clearly about Boeing's situation before January 5th," Whittaker said. The Federal Aviation Administration has increased the frequency of on-site inspections of Boeing and normalized it, and he himself will also visit Boeing's factory in South Carolina before the 14th. In response to the question of whether the Federal Aviation Administration bears some responsibility for the door stopper detachment accident, Whittaker said, "Boeing makes airplanes, so Boeing is responsible for it; but we are responsible for supervision, so we should have a better understanding of the situation."
According to CCTV News, on June 14th local time, Republican Senator Chuck Grassley stated that he has launched a new congressional oversight investigation into the Federal Aviation Administration (FAA) and Boeing, investigating an air accident involving a Boeing 737 MAX 9 aircraft in January this year.
Grassley requested that the Federal Aviation Administration and Boeing answer a total of 38 questions and provide relevant documents on safety procedures, regulatory requirements, corrective measures, and protection of whistleblowers. Grassley stated that the Aviation Administration and Boeing must explain the cause of the accident and indicate the specific measures currently being taken to ensure the safety of passengers in the future.
In response, the Aviation Administration stated that it will directly respond to Grassley, while Boeing stated that it will continue to maintain a positive and transparent attitude towards Congress.
On January 5th of this year, a Boeing 737 MAX 9 aircraft of Alaska Airlines experienced an accident shortly after takeoff, with a door stopper on the side of the cabin falling off. Afterwards, the Federal Aviation Administration of the United States ordered the grounding of 171 Boeing 737 MAX 9 aircraft worldwide for inspection. The Federal Aviation Administration restricted Boeing's production of 737 MAX aircraft at the end of February and required Boeing to submit a corrective plan within 90 days to address its "systemic quality control issues.". Boeing submitted a rectification plan to the Federal Aviation Administration on May 30th.
On April 24th local time, Boeing released its latest quarterly financial report, which showed the first year-on-year decline in revenue in seven quarters. Boeing's financial report released on the same day showed that in the first quarter of 2024, the company's revenue was 16.57 billion US dollars, a year-on-year decrease of over 7.5% (7.54%); The net loss was $355 million, a year-on-year decrease of 16.47%. From the perspective of business categories, the revenue of the commercial aircraft business has significantly declined, with a year-on-year decline of about 30%. The main reason is a decrease in the delivery volume of 737 MAX aircraft and the grounding of some models.
Boeing stated that the production of 737 MAX aircraft in the first quarter of 2024 has dropped to less than 38 per month, which is the upper limit set by US regulatory agencies when Boeing improves its quality management system. Although quarterly revenue has experienced a year-on-year decline for the first time in seven quarters, this data, along with several other indicators, is better than analyst expectations.
As of the close of the US stock market, Boeing (BA) closed at $177.27, with a total market value of $108.8 billion.
On April 25th local time, aircraft manufacturer giant Airbus France (hereinafter referred to as "Airbus") also released its Q1 2024 results. In the first quarter, it achieved a revenue of 12.83 billion euros, a year-on-year increase of 9%; Adjusted pre tax profit was 577 million euros, a year-on-year decrease of 25%, lower than market expectations; The net profit was 595 million euros, a year-on-year increase of 28%; Earnings per share was 0.76 euros, a year-on-year increase of 29%.
In its financial report, Airbus reiterated its performance guidelines released in February this year, aiming to deliver approximately 800 commercial aircraft by 2024; The adjusted pre tax profit ranges from 6.5 billion euros to 7 billion euros; The free cash flow before customer financing is approximately 4 billion euros.
It is worth noting that, driven by the strong development momentum of wide body aircraft, Airbus announced that the production of A350 will increase to 12 aircraft per month in 2028, while the previous plan was to restore to 10 aircraft per month in 2026. The wide body A330 is planned to continue producing 4 units per month this year.
Airbus CEO Guillaume Farry pointed out in his financial report that at the beginning of 2024, the order volume of various business departments of Airbus was very strong. Thanks to investment in the production system, and with the support of core pillars such as Airbus safety, quality, integrity, and compliance, the capacity improvement plan is still ongoing.
As of the close of the US stock market, Airbus (ADR) closed at $38.39, with a total market value of $120.6 billion.