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Ukrainian Airline Crash Another Challenge for Embattled Boeing Planemaker Still Reeling from Two MAX Crashes That Killed 346 People

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Ukrainian Airline Crash Another Challenge for Embattled Boeing Planemaker Still Reeling from Two MAX Crashes That Killed 346 People Friday 39 Business Friday, January 10, 2020 Ukrainian airline crash another challenge for embattled Boeing Planemaker still reeling from two MAX crashes that killed 346 people NEW YORK: The latest tragic plane crash involv- be considered separately. Richard Aboulafia of the ing another Boeing aircraft adds to the travails fac- Teal Group, a research consultancy focused on avi- ing the company after its 737 MAX was grounded ation and defense, said the UIA crash is “tragic and nearly a year ago following two deadly crashes. the optics aren’t good” for Boeing but the 737-800 Details were limited Wednesday about the crash of model has an excellent record. The airline said the a Ukraine International Airlines plane, a Boeing aircraft involved in the crash was built in 2016 and 737-800, near Tehran that killed 176 people. Yet had been checked only two days before the acci- the latest bad news involving a Boeing plane dent. It was Kiev-based UIA’s first fatal crash. weighed on company shares, which finished There was no immediate indication of foul play Wednesday’s session down 1.8 percent at $331.37. and Ukrainian President Volodymyr Zelensky The incident could hardly have come at a worse warned against “speculating” on the cause of the time for Boeing, which is still reeling from two MAX disaster. A statement posted on the website of the crashes that killed 346 people, causing its best-sell- Ukrainian embassy in Iran initially said the crash ing plane to be grounded worldwide and exposing was caused by an engine malfunction and ruled out the company to withering criticism over its handling an act of terror. But it was later edited to say that of the crisis. Paul Njoroge of Canada, who lost his all information will now be provided by an official family in the Ethiopian Airlines MAX crash, said the commission. Aboulafia said early statements blam- UIA crash “brought a chill in my entire body” as he ing the crash on technical difficulties reflected “an recalled the MAX crash of March 2019. unbelievable degree of unprofessionalism” since TEHRAN: A handout photo provided on Wednesday shows rescue teams working at the scene of a Ukrainian “The 737-800, the predecessor to the 737- they did not have access to the plane’s black box airliner that crashed shortly after take-off near Imam Khomeini Airport. —AFP MAX... has been seen to be reliable over the years,” or pilot communications. Scott Hamilton of Leeham Njoroge said in a statement released by his law News said reports linking the UIA crash to the firm. “However, any in-built technical issues cannot MAX crisis “are irresponsible”, adding that the gine exploded, killing a passenger, Hamilton said following Iranian missile strikes against US forces be tolerated. Could the crash be tied to the crippled 737-800 model is “a highly reliable aircraft with the plane’s engine “has a history of uncontained in Iraq, which was in retaliation for Washington’s culture within Boeing? That is a hypothesis that thousands in service around the world.” Hamilton failures that must be considered.” killing of an Iranian general. Under a protocol gov- should be analyzed.” said crash investigations routinely include studying erning international aviation investigations, Iran the possibility of pilot error, maintenance error, Investigation faces roadblocks should lead the review. But the country that manu- Cause of crash unknown technical error, outside factors such as weather and Hostilities between Washington and Tehran factured the aircraft and the country of the airline However, aviation analysts stressed that the two terrorism and foreign object ingestion. Citing a could impede the probe, which comes as President that operated the plane also should have represen- planes are different models and the crashes should 2018 Southwest Airlines incident in which an en- Donald Trump vowed additional sanctions on Iran tatives involved in the probe. —AFP pleasure of working British Airways with many exceptional company had “never formally responded people over the past Dark days to our initiatives”. Delta had been ready to 15 years at British Air- invest €100 million and take 10 percent of owner switches ways and at IAG. the capital, which FS said would have re- “Luis has been a for Alitalia as sulted in a total investment of €340 million pilot as CEO quits core member of the over four years. team and has shown options narrow Atlantia’s participation was “condi- LONDON: Global airline titan IAG yesterday said its true leadership over tional on the resolution of other dossiers”, chief executive Willie Walsh had quit, after a long stint the years and I have MILAN: The future of Italy’s Alitalia Battisti said. That was a reference to that saw him oversee the group’s creation and rapid no doubt he will be a looked bleak yesterday after state rail- threats by the government to revoke At- expansion, and would be replaced by Luis Gallego, great CEO of IAG,” way Ferrovie dello Stato and Germany’s lantia’s motorways concession following head of Spanish division Iberia. Walsh stands down Walsh added. In Lon- Lufthansa pulled out of a rescue at- the collapse of a bridge in Genoa in north- on March 26 ahead of retirement, the owner of British don midday trading, tempt for the beleaguered carrier. “We ern Italy in 2018 in which 43 people died. IAG shares gained are on a narrow and difficult road,” Atlantia has said it is still interested in find- Airways said in a statement. The announcement Willie Walsh brings down the curtain on Walsh’s 15-year career 1.0 percent to 624.8 Economic Development Minister Ste- ing a solution for Alitalia, but Patuanelli with BA and IAG. Starting as BA chief executive, he pence on London’s fano Patuanelli told parliament, saying said Wednesday it was “absolutely unnec- went on to oversee the 2011 merger of British Airways benchmark FTSE 100 index, which was up half a per- the options to save it were “not end- essary” to continue talks. and Iberia. IAG has since expanded to include Aer centage point overall. less”. The government has been looking “Alitalia has been in an alarming situa- Lingus, Level and Vueling. “Willie Walsh leaving BA has been very well for buyers for the heavily-indebted tion for many years now,” Umberto The Irishman also spearheaded a cost-cutting drive telegraphed so the modest rise in IAG shares proba- company for years, without success. Bertele, strategy professor at the Poly- to compete with budget airlines, despite criticism from bly better reflects the overall market mood,” said Italy’s Ferrovie dello Stato (FS) had technic Business School in Milan, told AFP. some quarters that this cheapened the brand of BA - London Capital Group analyst Jasper Lawler. “Iberia been attempting to form a consortium to He said one of its main issues was the “im- which once called itself the world’s favorite airline. has been very much an equal partner in the group save Alitalia, but said Wednesday it had balance between the number of employ- Walsh, 58, was originally a pilot at Ireland’s Aer Lingus with BA in recent years so it makes sense that the thrown in the towel after failing to find in- ees and the number of flights”. The but rose to become chief executive, before taking up Iberia chief Luis Gallego takes the reins.” Lawler vestors willing to meet the conditions. company has faced extremely fierce com- the same role at BA in 2005. “Willie has led the merger added that Walsh had navigated other “difficult times, Those included having a leading airline petition from low cost companies, but is and successful integration of British Airways and including fuel prices spikes and cut-throat competi- play a part in the rescue. Talks had been too small to be able to really compete with Iberia,” IAG chairman Antonio Vazquez said in Thurs- tion from budget airlines”. underway with American airline Delta, other traditional companies either. day’s statement. “Under Willie’s leadership IAG has be- Iberia has yet to announce Gallego’s replacement. Lufthansa, and Italy’s Atlantia, a major op- It flew just 22 million passengers in come one of the leading global airline groups.” “It is a huge honor to lead this great company. It is an erator of motorways and airports con- 2018, compared to 91 million for Easyjet, But British Airways suffered major disruption in exciting time at IAG and I am confident that we can trolled by the Benetton family. But 142 million for Ryanair and some 180 for September when for the first time in its 100-year his- build on the strong foundations created by Willie,” Gal- Lufthansa insisted Tuesday that it was not Lufthansa and Delta Airlines. In Italy its tory pilots employed by the airline went on strike in a lego said. As Iberia chief since 2013, Gallego managed interested in investing in Alitalia without a market share stands at 14 percent, far be- long-running pay dispute. “It has been a privilege to to return the airline to profitability after years of losses. major restructuring of the company. FS hind Ryanair’s 25 percent, and it loses have been instrumental in the creation and development He began his professional career in the Spanish Air head Gianfranco Battisti said the German some €300 million per year. —AFP of IAG,” Walsh said in the statement. “I have had the Force before joining the commercial sector. —AFP.
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