Showing posts with label step. Show all posts
Showing posts with label step. Show all posts

Wednesday, April 17, 2013

Exclusive: FAA nears decisive step in restoring 787 to flight



Ground staff work under an United Airlines

Ground staff work under an United Airlines’ Boeing Co’s 787 Dreamliner plane after its flight from Los Angeles, at New Tokyo international airport in Narita, east of Tokyo January 17, 2013.


Credit: Reuters/Toru Hanai






Wed Apr 17, 2013 9:57pm EDT



(Reuters) – U.S. regulators are close to approving a key document that could start the process of returning Boeing Co’s grounded 787 Dreamliner to service within weeks, according to several people familiar with the matter.


Approval of the document, known as a Project Statement of Compliance, would mark a decisive step towards ending the three-month grounding of Boeing’s high-tech jet. It would kick off a series of procedural steps allowing airlines that ordered the $ 200 million plane to fly them for the first time since January.


The grounding has cost Boeing an estimated $ 600 million, halted deliveries and forced some airlines to lease alternative aircraft. Several airlines have said they will seek compensation from Boeing, potentially adding to the planemaker’s losses.


Regulators grounded the worldwide fleet of 50 jets after lithium-ion batteries burned on two planes at the start of the year. Boeing redesigned the battery system and sent test results to the Federal Aviation Administration earlier this month.


The document could be approved as early as next week, said two of the sources, asking not to be identified because the discussions remain confidential.


The FAA declined to comment on whether Boeing had already submitted the document, the exact contents of which are unclear.


Boeing also declined to comment beyond saying that it stands ready to continue working with the FAA “to ensure we have met all of their expectations.”


The timing has not been fixed and could still be delayed, the sources said. It’s also possible that extra steps could be added to the approval process, resulting in further delays and prolonging the uncertainty around if and when the 787 can fly again.


Approval early next week would coincide with a two-day investigative hearing into the burnt batteries by the top U.S. safety regulator, the National Transportation Safety Board. The hearing is expected to call on officials from the FAA and Boeing.


NO TIMETABLE


The FAA has said it is considering Boeing’s proposed battery fix, but has not indicated a specific timetable for approval. On Tuesday, FAA chief Michael Huerta said he expects to decide “very soon” whether to approve the new system.


However, Huerta also stressed to a congressional committee that the agency is reviewing tests and analysis submitted by Boeing and will approve it when “we are satisfied Boeing has shown the redesigned battery system meets FAA requirements.”


After approval of the Project Statement, Boeing would draft a “Service Bulletin,” formally telling airlines to retrofit the new batteries on the 50 planes already delivered worldwide. The FAA would have to approve the design change and the service bulletin, and then issue an “Airworthiness Directive” declaring the flight ban over.


Sources say Boeing has already assembled teams and battery kits to retrofit existing planes, and engineers would need around four to five days to fit each new battery, allowing for a progressive return to service, starting in Japan.


All Nippon Airways and Japan Airlines own nearly half of the current 787 fleet and would be retrofitted first. United Airlines is the only U.S. carrier that has the jet currently. It was not immediately clear where United would fall in the order of repairs.


United and other airlines have been moving up the date when they will add the 787 to their flight schedules to May and June, a sign of growing confidence that FAA approval will come soon.


(Reporting by Tim Hepher in Paris, Alwyn Scott in New York and Peter Henderson in San Francisco; editing by Mary Milliken and Stephen Coates)





Reuters: Business News




Exclusive: FAA nears decisive step in restoring 787 to flight

Tuesday, April 16, 2013

Detroit takes step to restructure debt despite protests




DETROIT, April 16 | Tue Apr 16, 2013 3:42pm EDT



DETROIT, April 16 (Reuters) – The Detroit City Council on Tuesday approved a controversial contract to restructure the city’s debt, despite a protest that temporarily shut down the meeting.


About 2 dozen protesters opposed to Michigan Governor Rick Snyder’s appointment last month of an emergency manager to run Detroit linked arms and sang protest songs, forcing Council President Charles Pugh to call for a recess that lasted 90 minutes.


The council reconvened after about a dozen police officers moved into the chamber and threatened to arrest anyone who became unruly.


In a 5 to 2 vote, the council approved a six-month, $ 3.4 million contract to hire the Jones Day law firm, the former employer of Emergency Manager Kevyn Orr, to help negotiate agreements with creditors.


Under Michigan law, Orr has the final say on contracts for the cash-strapped city.


Jones Day’s selection as the city’s restructuring counsel was announced by Mayor Dave Bing on March 11, just days before the governor tapped Orr to run Detroit.


Both Orr and Snyder have said talks with creditors were needed to help solve Detroit’s fiscal mess, which mushroomed as the city’s population dropped along with its revenue.


Bill Nowling, Orr’s spokesman, said no meetings with the city’s bondholders have been scheduled.


“We will have more to say about concessions sought when we enter into negotiations,” Nowling said. “Right now, it would be premature to comment.”


Detroit has about $ 2.4 billion of outstanding general obligation debt, $ 6 billion of water and sewer revenue bonds and unfunded liabilities of $ 6 billion for retiree healthcare and $ 650 million for pensions, according to a March report from the mayor’s office.


The city also faces paying as much as $ 440 million, or about 22 percent of its annual operating budget, after a credit rating downgrade last year and more recently the appointment of an emergency manager triggered the termination of interest rate swap agreements.


Nowling said Michigan-based law firm Miller Canfield will continue to negotiate with swap providers.


In the wake of the council meeting, protesters pledged to heighten the intensity of the demonstrations. Since the emergency manager was named, protest threats have mostly not borne out and there has been no violence.


“This is just the beginning. They haven’t see the worst of it,” said Rev. Charles Williams II, the head of the Michigan chapter of the New York-based Rev. Al Sharpton’s National Action Network of community activist. “We are serious about this.”


Among the concerns raised about the contract was perceived conflicts of interest. Protesters said Jones Day’s clients include big banks that are Detroit creditors and stand to lose a lot of money under bankruptcy or a settlement.


Tensions flared late on Tuesday morning when Morris Mays, a 51-year-old Detroiter clad in a black leather jacket, black leather gloves, a black shirt, black sunglasses and gold chains threatened the council.


“I resent you. I hate you for what you did,” Mays told the council for agreeing to work with the emergency manager. “I watch you attack us and attack us and attacks us. And I urge the people of Detroit to attack you!”


Police escorted Mays from the room. Others were forcibly removed after refusing to stay quiet.





Reuters: Bonds News




Detroit takes step to restructure debt despite protests

Wednesday, March 20, 2013

Next step on bailout is up to Cyprus -Austria finmin



VIENNA, March 20 | Wed Mar 20, 2013 3:49am EDT



VIENNA, March 20 (Reuters) – Cyprus must make the next move if it wants to revive its international bailout and European institutions will not fund it forever on current terms, Austrian Finance Minister Maria Fekter said on Wednesday.


“We will certainly help the Cypriots but only under conditions that make sense. Certainly neither the ESM (euro zone bailout fund) nor the ECB can allow a bottomless pit,” she told reporters, adding lenders cannot accept any measures that increase Cyprus’s debt further.


Cyprus overwhelmingly rejected a proposed levy on bank deposits as a condition for a European bailout on Tuesday, throwing international efforts to rescue the latest casualty of the euro zone debt crisis into disarray.



Reuters: Bonds News




Next step on bailout is up to Cyprus -Austria finmin