Boeing senior VP of communications Niel Golightly resigns » 16:1507/0207/02/20
Boeing said that Niel…
Boeing said that Niel Golightly has resigned as Senior Vice President of Communications at the Boeing Company. Boeing has initiated a search for his successor. In the interim, the communications function will report to Greg Smith, Executive Vice President of enterprise operations and chief financial officer until a permanent successor is named. Niel's decision to resign stems from an employee complaint that brought to the company's attention an article he wrote in 1987 while serving in the military, about whether women should serve in combat. Boeing does not agree with the views expressed in the article, and it does not reflect Niel's views today. "My article was a 29-year-old Cold War navy pilot's misguided contribution to a debate that was live at the time. My argument was embarrassingly wrong and offensive. The dialogue that followed its publication 33 years ago quickly opened my eyes, indelibly changed my mind, and shaped the principles of fairness, inclusion, respect and diversity that have guided my professional life since. The article is not a reflection of who I am; but nonetheless I have decided that in the interest of the company I will step down," said Golightly.
Boeing ending production of 747 jumbo jet, Bloomberg reports » 13:0407/0207/02/20
Boeing (BA) is pulling…
Boeing (BA) is pulling the plug on its 747 jumbo jet with the last 747-8 to roll out of a Seattle-area factory in about two years, Julie Johnsson of Bloomberg reports. The decision, which hasn't been told yet to employees, has not been reported but can be teased out from subtle wording changes in financial statements, people familiar with the matter told Bloomberg. The move signals the end of the double-decker, four-engine leviathans with Airbus (EADSY) already preparing to build the last A380 jumbo, Johnsson says.
Alaska Air secures approximately $1.2B in private loans » 08:0207/0207/02/20
ALK, BA, ERJ
Alaska Airlines (ALK) has…
Alaska Airlines (ALK) has secured nearly $1.2B in private loans to further secure its financial stability and future during the COVID-19 recovery period, while balancing the appropriate amount of liquidity. The debt financing will be funded on or around July 2. As part of an Enhanced Equipment Trust Certificate offering, Alaska will use 61 of its owned aircraft as collateral to back the debt: 26 Boeing (BA) 737-800s, 16 Boeing 737-900ERs and 19 Embraer (ERJ) 175s. The aircraft will remain encumbered until the debt is repaid: Series A ($966M) will be repaid by Aug. 15, 2027, and Series B ($208M) will be repaid by Aug. 15, 2025.
FAA delays, lack of urgency contributed to second Boeing 737 MAX crash, WSJ says » 07:0207/0207/02/20
Safety repairs after the…
Safety repairs after the first Boeing 737 MAX crash in October 2018 became entangled in Federal Aviation Administration delays and analyses, eliminating any chance for U.S. regulators to prevent the second fatal accident, Andy Pasztor of the Wall Street Journal reported, citing an investigation by the DOT inspector general. The new report has raised questions about the apparent lack of urgency shown by both sides during the five months between the two crashes to implement a safety fix for the whole fleet. Following the first 737 MAX crash, it reportedly took the FAA four months to come to an agreement on a timetable for implementing fixes once they were planned. Reference Link
FAA says Boeing completes 737 MAX certification flight tests » 18:3307/0107/01/20
The FAA and Boeing…
The FAA and Boeing completed the certification flight tests on the Boeing 737 MAX. During three days of testing this week, FAA pilots and engineers evaluated Boeing's proposed changes in connection with the automated flight control system on the aircraft. While completion of the flights is an important milestone, a number of key tasks remain, including evaluating the data gathered during these flights. The agency is following a deliberate process and will take the time it needs to thoroughly review Boeing's work. "We will lift the grounding order only after FAA safety experts are satisfied that the aircraft meets certification standards," the FAA said. The remaining tasks include JOEB validation and FSB review, the final FSB report, final design documentation, a TAB report, CANIC & AD responses, a rescinding of the grounding order, certificates of airworthiness, and operator training programs.
Norwegian Cruise Line call volume above normal and directionally bullish » 10:2507/0107/01/20
Bullish option flow…
Bullish option flow detected in Norwegian Cruise Line with 25,693 calls trading, 1.3x expected, and implied vol increasing over 1 point to 109.25%. 7/10 weekly 17.5 calls and 7/2 weekly 17 calls are the most active options, with total volume in those strikes near 6,800 contracts. The Put/Call Ratio is 0.42. Earnings are expected on August 6th.
Royal Caribbean rises 9.7% » 10:0007/0107/01/20
Royal Caribbean is up…
Royal Caribbean is up 9.7%, or $4.88 to $55.18.
Early notable gainers among liquid option names on July 1st » 09:5507/0107/01/20
FDX, SIG, UAL, RCL, AAL
Notable gainers among…
Notable gainers among liquid option names this morning include Fedex (FDX) $161.93 +21.71, Signet Jewelers (SIG) $11.12 +0.85, United Continental (UAL) $37.48 +2.87, Royal Caribbean (RCL) $54.13 +3.83, and American Airlines (AAL) $14.02 +0.96.
Boeing failed to submit documents to FAA on MAX design changes, Reuters says » 06:3207/0107/01/20
Boeing failed to submit…
Boeing failed to submit certification documents to the FAA detailing changes to a key flight control system faulted in two fatal crashes, Reuters' David Shepardson, Eric M. Johnson and Tracy Rucinski report, citing a government report seen by the publication. According to the report, the MCAS flight control system was "not an area of emphasis" because Boeing presented it to the FAA as a modification of the jet's existing speed trim system, with limited range and use. Reference Link
BOC Aviation cancels orders for 30 Boeing 737 MAX jets, Bloomberg reports 09:5406/3006/30/20