Tag Archives: Lion Air

Lion Air jet that crashed into sea must be cut up

Aviation authorities are struggling to remove a Lion Air passenger jet that crashed into the sea on Indonesia‘s resort island of Bali because it is too heavy to tow in the shallow water.

Transportation Ministry spokesman Bambang Ervan said Monday divers are also facing difficulties removing the cockpit voice recorder located in the plane’s tail, which is submerged.

All 108 people on board survived Saturday’s crash when the plane slammed into the water near Bali’s Ngurah Rai airport and snapped in two.

Ervan said authorities have decided to cut the wreckage into several parts instead of towing because it weighs too much and could damage the area’s coral reefs.

Bali is one of Asia‘s most popular destinations, drawing millions of vacationers with its world-class surf and beautiful beaches.

From: http://feeds.foxnews.com/~r/foxnews/world/~3/bE2FrkE4hSo/

Investigators probe jet's crash into sea in Bali

Indonesian investigators on Sunday began working to determine what caused a new Lion Air passenger jet to miss a runway while landing on the resort island of Bali, crashing into the sea without causing any fatalities among the 108 on board.

The National Transportation Safety Committee is examining the wreckage of the Boeing 737-800 that snapped in half before coming to a stop in shallow water near Bali’s airport on Saturday, said Transportation Ministry spokesman Bambang Ervan.

He said aviation authorities had already removed the plane’s flight data recorder and were planning to tow the aircraft to a beach. Divers were searching for the cockpit voice recorder located in the tail. Experts are examining what could have caused the crash, including whether wind shear may have played a role.

The crash marked Lion Air‘s sixth accident in 11 years, and has renewed questions about how safe it is to fly in Indonesia. The country has struggled to clean up its poor air safety record while improving oversight.

All 101 passengers and seven crew members were safely evacuated from the budget carrier’s flight, which came from Bandung, the capital of West Java province. Some swam from the wreckage, while others were plucked from the water by rescuers in rubber boats. Dozens suffered injuries, but most had been released from local hospitals by Sunday.

“I couldn’t wait to land in Bali when the cabin suddenly turned dark. I heard a sound like an explosion and water was coming in,” recalled Irawati, a 60-year-old woman who uses one name, like many Indonesians.

“I heard people shouting frantically: ‘The plane crashed! Get out! Get out!’ I did not even have the energy to move my body,” she said. “I was so weak and frightened, and I was asking a flight attendant for help before I passed out.”

Irawati told The Associated Press from her hospital bed that when she regained consciousness, the pilot and co-pilot were putting a life jacket on her and helping her down a rubber ladder. She was then pulled onto a surfboard by rescuers. She suffered neck injuries.

Another survivor, Andi Prasetyo, said there was no warning of any problem.

“The cabin crew had already announced that we would be landing shortly, and I was so excited when I saw the ocean getting

From: http://feeds.foxnews.com/~r/foxnews/world/~3/PKaIgKImSQI/

Lion Air plane skids into sea in Bali, Indonesia

Police say a Lion Air plane with more than 100 passengers has skidded off the end of the runway into the sea on the Indonesian resort island of Bali. There was no immediate word on casualties.

Bali Police Chief Arif Wahyunadi told local Indonesia channel TV One on Saturday that passengers and crew were being evacuated and taken to the airport terminal for treatment.

The cause of the accident remains unclear, but Wahyunadi said the plane originated in the city of Bandung and was landing in Bali.

A photo on TV One shows the plane sitting on top of the water.

From: http://feeds.foxnews.com/~r/foxnews/world/~3/IPw8kJCyLpw/

Delta in Talks to Buy Jets from Boeing, Airbus, Sources Say

By Reuters

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Ted S. Warren/AP Workers assemble a next-generation 737 airplane at Boeing Co.’s assembly facility in Renton, Wash.

Delta Air Lines is in talks to purchase small and wide-body jets from Airbus and Boeing in deals potentially worth about $6 billion at list prices, two people familiar with the matter said.

Potential orders involve about 20 each of the planemakers’ most popular families of jets — the Airbus A320 or Boeing 737 in the medium-haul, narrow-body class and the Airbus A330 or Boeing 777 in the long-range, wide-body category, the people said.

None of the parties involved agreed to comment.

The sources confirmed a Bloomberg News report that Delta Air Lines Inc. (DAL) was considering buying planes including 10 to 20 of the A330 or the 777 wide-body aircraft worth $4.3 billion.

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Delta told an investor conference on March 4 that it needed to evaluate its needs for wide-body jets, but played down the possibility of a large order because of recent investments in its relatively young fleet.

The airline said it saw “opportunities in the marketplace” to add selectively to its wide-body fleet and would be talking, for example, to Airbus. Airlines typically engage both major aircraft makers in any discussion to seek the best prices.

Delta already operates all four of the aircraft types involved in the talks at both ends of the spectrum, making it possible for the plane-makers to offer aircraft without having to shoulder the heavy costs of helping the airline switch suppliers.

The talks come on the heels of an exceptionally busy two weeks for aircraft orders as airlines chase fuel savings while trying to grow or replace their fleets. Industry body IATA earlier edged up its forecast for airline profits this year.

On Tuesday, budget Irish airline Ryanair handed Boeing Co. (BA) its largest European order ever, a deal for 175 Boeing 737 jets worth $16 billion at list prices. The deal came a day after Indonesia’s Lion Air on Monday picked European rival Airbus for a $24 billion order.

Lion Air had been an exclusively Boeing customer for jets.


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Media Digest (3/19/2013) Reuters, WSJ, NYT, FT, Bloomberg

By 24/7 Wall St.

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BlackRock Inc. (NYSE: BLK) will lay off 300 people. (Reuters)

Electronics Arts Inc. (NASDAQ: EA) chief executive departs as the firm missed earnings. (Reuters)

Intel Corp. (NASDAQ: INTC) ramps up hiring for its new TV entertainment unit. (Reuters)

Airbus gets an order from Indonesian airline Lion Air worth $24 billion. (Reuters)

The Employee Benefit Research Institute reports that 57% of Americans have less than $25,000 in savings when the value of their homes are backed out. (WSJ)

Corelogic reports that “underwater” homes dropped by 1.7 million in the fourth quarter, compared to the same quarter a year ago. (WSJ)

Lululemon Athletica Inc. (NASDAQ: LULU) takes some pants out of stores because they are too sheer. (WSJ)

Citigroup Inc. (NYSE: C) pays $730 million to settle claims over paper its sold that mislead investors over a two-year period. (WSJ)

Liberty Media Corp. (NASDAQ: LMCA) may by 25% of Charter Communications Inc. (NASDAQ: CHTR). (WSJ)

HTC delays release of one of its major new phone products. (WSJ)

IDC says global PC shipments will slow again this year. (WSJ)

Facebook Inc. (NASDAQ: FB) blocks developers who do not make software that enhances the social network’s goals. (WSJ)

Chesapeake Energy Corp. (NYSE: CHK) sells debt to buy paper with higher coupons. (WSJ)

The Washington Post division of Washington Post Co. (NYSE: WPO) will charge for online content. (WSJ)

Investment firms and farmers begin to compete for land as crop prices rise. (NYT)

ABC may launch an app for people to watch TV on portable devices. (NYT)

The size of cash hoards held by U.S. companies reach record levels, according to Moody’s Investor Service. (FT)

Samsung says it will release its own smart watch to compete with Apple Inc.’s (NASDAQ: AAPL). (Bloomberg)

European February car sales fall 10%, according to the European Automobile Manufacturers’ Association. (Bloomberg)

Filed under: 24/7 Wall St. Wire, Press Digest Tagged: AAPL, BLK, C, CHK, CHTR, EA, FB, INTC, LMCA, LULU, WPO

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Lion Air Places Huge Airbus Order

By Rich Smith, The Motley Fool

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European planemaker and EADS subsidiary Airbus confirmed Monday that it has — for the time being, at least — matched Boeing‘s inroads into Indonesia.

Two years ago, Boeing struck a massive $21.7 billion (admittedly at list prices, which no one ever pays) deal to supply upstart airline Lion Air with some 230 new 737 MAX airplanes. Today, Airbus saw Boeing’s offer and raised it four planes, signing a $24 billion contract (again, at list prices) to sell Lion Air 109 re-engined A320neos, 65 A321neos, and 60 conventionally engined A320ceos.

In so doing, Airbus both added Indonesia‘s largest private airline to its customer list for the first time ever and took a small unit-lead over Boeing of four planes — and a larger dollar-value lead of $2.3 billion — but maybe not for long. Part and parcel with Boeing’s 2011 deal was the extension of options to Lion Air, giving the airline the right to buy an additional 150 planes.

Next move, Boeing.

The article Lion Air Places Huge Airbus Order originally appeared on Fool.com.

Fool contributor Rich Smith and The Motley Fool have no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don’t all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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The Financial Industry Leads the Dow Lower

By Matt Thalman, The Motley Fool

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Now that the Dow Jones Industrial Average‘s 10-day winning streak is over, the index appears to be working on a losing streak. After falling 25 points on Friday, the Dow is down another 18 points, or 0.13%, as of 12:55 p.m. EDT.

On Friday, it appeared investors were ready for the streak to end, as they took money off the table and locked in profits. But today, a stressed world financial system is leading the markets lower following a controversial decision in the small country of Cyprus.

On Saturday, the European Union bailed out Cyprus, which really didn’t make world news. But what did make headlines is the fact that part of the bailout will be paid for by the country’s bank deposits. The deal imposes a tax on all checking and savings deposits within the country. This breaks the long-held rule that bank deposits are untouchable and the “safest” place to store your money.

Cyprus‘ government still needs to vote on the bailout deal, but the distant threat of bank runs not only in Cyprus but throughout Europe has the markets moving lower.

Today’s Dow downers
My fellow Fool Alex Planes noted earlier today that on March 18, 1850, the modern U.S. financial industry began, and due to the announcement from Cyprus‘ government officials on Saturday, institutions that have survived for more than 162 years are under stress today. Shares of American Express and JPMorgan Chase are down 0.4% and 1%, respectively, as investors fear irrational consumers may bring the European financial system to a grinding halt.

As we saw with the financial crisis just a few years ago, the world banking system is more connected and intertwined than ever before. Once one domino is tipped over, it’s difficult to save the rest before they have all fallen. If Cyprus‘ solution to its own problems spreads fear throughout Europe, the U.S. banking system and financial industry will also take a hit.

Shares of Boeing are also losing altitude today after its closest competitor, Airbus, announced the largest commercial airplane deal ever. Lion Air, operating out of Indonesia, ordered 234 planes, worth $24 billion, from Airbus. The deal is not only a missed opportunity for Boeing, but it also represents a lost customer. Just last year, Lion Air cut a deal with Boeing for 230 of its new 737 Max airplanes worth more than $22 billion. That deal also gave Lion Air the right to buy 150 more, but it would now appear that the option for more 737s will not be exercised.

Boeing is a major player in a multitrillion-dollar market in which the opportunities are massive. However, emerging competitors and the company’s execution problems have investors wondering whether Boeing will live up to its shareholder responsibilities. In our premium research report on the company, two of The Motley Fool’s best industrial-sector minds have collaborated to provide investors with the must-know info on Boeing. They’ll be …read more
Source: FULL ARTICLE at DailyFinance

Airbus, Indonesia airline in ?18.4 billion accord

Indonesian airline Lion Air is to buy 234 short to medium range aircraft from Airbus for €18.4 billion ($24 billion), in what is being billed as the biggest civilian deal in the history of the aircraft manufacturer.

The contract was announced Monday at the French presidential palace, a sign of the deal’s importance to the government. Airbus said it would secure 5,000 jobs at a time when French unemployment hovers around the 10 percent mark.

Lion Air is buying 169 A320s and 65 A321 jets. The first planes will be delivered in 2014.

Airbus, the archrival of U.S.-based Boeing Co., is the civilian aircraft business of the European aerospace and defense company EADS.

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Airbus Gets Biggest Order Ever from Indonesia's Lion Air

By The Associated Press

French CEO of European aerospace giant Airbus Fabrice Bregier (C, right) and Lion Air founder and president director Rusdi Kirana (C, left) are applauded by France's President Francois Hollande (C, background), after signing a contract during a ceremony at the Elysee presidential palace in Paris on March 18, 2013. Airbus announced a record order worth 18.4 billion euros ($ 23.8 billion) from Indonesia's Lion Air for 234 medium-haul A320 jets. Lion Air, Indonesia's largest private carrier and one of the world's fastest growing airlines, is a new client for Airbus as it has previously been equipped almost exclusively by US rival Boeing.  AFP PHOTO / BERTRAND LANGLOIS        (Photo credit should read BERTRAND LANGLOIS/AFP/Getty Images)

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Bertrand Langlois, AFP/Getty Images French CEO Airbus Fabrice Bregier and Lion Air founder and president director Rusdi Kirana are applauded by France‘s President Francois Hollande. Lion Air, Indonesia‘s largest private carrier and one of the world’s fastest growing airlines, is a new client for Airbus as it has previously been equipped almost exclusively by its archrival Boeing.

By SARAH DiLORENZO and SYLVIE CORBET

PARIS Airbus signed its biggest deal ever on Monday, an order from Indonesian’s Lion Air worth $24 billion that President Francois Hollande said should inspire the struggling French economy and all of Europe.

The CEOs of both companies signed the contract for 234 planes in a ceremony at the French presidential palace, a sign of its importance to the government. At a time when layoff announcements are streaming out of French companies and unemployment is over 10 percent, Airbus said the manufacturing of the planes would happen in France and would involve 5,000 employees there.

“Airbus is a national and European pride, one of the pillars of our economy,” Hollande told reporters. “The big Airbus contracts are an example for our economy, what it can do, what it must do.”

Lion Air is buying 169 A320s and 65 A321 jets. The first planes will be delivered in 2014 and most of them will be outfitted with a new, more fuel-efficient engine that Airbus has recently developed.

The airline is a major player in the Indonesian market and also gave Boeing (BA) its largest-ever order when it finalized a deal last year for 230 planes from the Chicago airplane manufacturer.

Boeing is the archrival of Airbus, which is the civilian aircraft business of the European aerospace and defense company EADS. Some of the planes Lion Air bought from Boeing are the direct competitors to the aircraft it is buying from Airbus.

But at the Elysee palace Monday, all praise went to Airbus.

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Hollande said the success of Airbus should also inspire European countries to cooperate in other sectors. France, Germany and Spain are all shareholders in EADS and hold significant sway in it.

“Our ambition at the European level isn’t to just continue the great EADS adventure but to also conceive of other EADS for other economic sectors with our European partners,” he said. “Europe isn’t just a market. … Europe is also an industrial ambition.”

The announcement comes as France is trying to convince companies that it is a viable center of manufacturing and persuade them to move or at least keep factory jobs there. The government touts its educated workforce, significant government support for research and sophisticated infrastructure.

But making anything in France is expensive — in large part because the cost of labor, including salaries and benefits, is so high. Also, some companies fear that it’s too hard to fire French workers when …read more
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Airbus Poaches Boeing Customer; Boeing CEO Gets 20% Pay Boost

By 24/7 Wall St.

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Just when it seemed that Boeing Co. (NYSE: BA) had reached an agreement on how to fix the battery problems with its 787 Dreamliner and get off the front pages for a while, the aircraft maker loses out on a contract for 234 new planes for one of its best customers, Indonesia’s Lion Air. Last year Lion Air ordered more than 200 of Boeing’s 737 single-aisle planes in a deal worth more than $22 billion. The order for 234 planes from Airbus is valued at $24 billion.

The Airbus order was announced today, and it follows on Saturday’s announcement from Boeing that the company was so pleased with CEO Jim McNerney’s work in 2012 that it raised his compensation for the year by 20% to $27.5 million. McNerney earned $23 million in 2011.

Let’s add it up: The 787 Dreamliner, McNerney’s signature program, was three years late and billions of dollars over budget. When it finally did fly, the plane was grounded for flaws in its battery systems that caused onboard fires. That is a record that certainly deserves to be rewarded with a pay hike.

Boeing’s board apparently believes that McNerney had something to do with the company’s 2012 success. Shareholders did not share in that success, however. Boeing’s stock price rose only 2.7% in 2012 while the S&P 500 index rose 13%.

When McNerney took over as CEO in 2005, shares traded at an all-time high of more than $100 before falling to below $40 in 2009. The climb back out of that hole was mostly complete by 2010, when shares rose to near $75.

What McNerney did in 2012 was mostly not much. But given his track record, the less he does the better it is for Boeing.

We have long argued that McNerney should go, but maybe the rest of Boeing’s board ought to be shown the door as well.

Boeing’s shares are down about 1.1% in early trading this morning, at $85.48 in a 52-week range of $66.82 to $86.49.

Filed under: 24/7 Wall St. Wire, Aerospace & Defense, Compensation, Corporate Governance, Shareholder Issues Tagged: BA

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