The Boeing jetliner that suffered an inflight blowout over Oregon was not being used for flights to Hawaii after a warning light that could have indicated a pressurization problem lit up on three different flights.
Alaska Airlines decided to restrict the aircraft from long flights over water so the plane “could return very quickly to an airport” if the warning light reappeared, Jennifer Homendy, chair of the National Transportation Safety Board, said on Sunday.
Shares of The Boeing Co. tumbled nine per cent at the opening bell Monday, the first day of trading since the incident occurred. Shares of Alaska Airlines slid four per cent and Spirit AeroSystems, which builds the fuselage for Boeing’s 737 Max, plunged 14 per cent.
Homendy cautioned that the pressurization light might be unrelated to Friday’s incident in which a plug covering an unused exit door blew off the Boeing 737 Max 9 as it cruised about three miles (4.8 kilometres) over Oregon.
The warning light came on during three previous flights: on Dec. 7, Jan. 3 and Jan. 4 — the day before the door plug broke off. Homendy said she didn’t have all the details regarding the Dec. 7 incident but specified the light came on during a flight on Jan. 3 and on Jan. 4 after the plane had landed.
The NTSB said the lost door plug was found Sunday near Portland, Oregon, by a school teacher — for now, known only as Bob — who discovered it in his backyard and sent two photos to the safety board. Investigators will examine the plug, which is 26 by 48 inches (66 by 121 centimetres) and weighs 63 pounds (28.5 kilograms), for signs of how it broke free.
Investigators will not have the benefit of hearing what was going on in the cockpit during the flight. The cockpit voice recorder — one of two so-called black boxes — recorded over the flight’s sounds after two hours, Homendy said.
At a news conference Sunday night, Homendy provided new details about the chaotic scene that unfolded on the plane. The explosive rush of air damaged several rows of seats and pulled insulation from the walls. The cockpit door flew open and banged into a lavatory door.
The force ripped the headset off the co-pilot and the captain lost part of her headset. A quick reference checklist kept within easy reach of the pilots flew out of the open cockpit, Homendy said.
The plane made it back to Portland, however, and none of the 171 passengers and six crew members was seriously injured.
Hours after the incident, the FAA ordered the grounding of 171 of the 218 Max 9s in operation, including all those used by Alaska Airlines and United Airlines, until they can be inspected. The airlines were still waiting Sunday for details about how to do the inspections, but the cancellations of flights involving Max 9 aircraft at both airlines have begun.
Early Monday, Alaska Airlines was forced to cancel 20 per cent of all flights, 141 in all. United cancelled 221 flights, or eight per cent of its total flights scheduled for Monday.
Alaska Airlines, which has 65 Max 9s, and United, with 79, are the only U.S. airlines to fly that particular model of Boeing’s workhorse 737. United said it was waiting for Boeing to issue a “multi-operator message,” which is a service bulletin used when multiple airlines need to perform similar work on a particular type of plane.
Boeing was working on the bulletin but had not yet submitted it to the FAA for review and approval, according to a person familiar with the situation. Producing a detailed, technical bulletin frequently takes a couple days, said the person, who spoke on condition of anonymity to describe a matter that the company and regulators have not publicly discussed.
Boeing CEO Dave Calhoun called for a companywide webcast Tuesday to talk about the incident with employees and senior leadership.
“When serious accidents like this occur, it is critical for us to work transparently with our customers and regulators to understand and address the causes of the event, and to ensure they don’t happen again,” Calhoun wrote in a message to employees Sunday. “This is and must be the focus of our team right now.”
Democratic U.S. Sen. Maria Cantwell of Washington, chair of the Senate’s Commerce, Science and Transportation Committee, said she agreed with the decision to ground the Max 9s.
“Aviation production has to meet a gold standard, including quality control inspections and strong FAA oversight,” she said in a statement.
Before the discovery of the missing plug, the NTSB had pleaded with residents in an area west of Portland called Cedar Hills to be on the lookout for the object.
On Sunday, people scoured dense thickets wedged between busy roads and a light rail train station. Adam Pirkle said he rode 14 miles (22 kilometres) through the overgrowth on his bicycle.
“I’ve been looking at the flight track, I was looking at the winds,” he said. “I’ve been trying to focus on wooded areas.”
Before the school teacher named Bob found the missing door plug, searchers located two cell phones that appeared to have belonged to passengers on Friday’s terrifying flight. One was discovered in a yard, the other on the side of a road. Both were turned over to the NTSB, which vowed to return them to their owners.
Alaska Airlines flight 1282 took off from Portland at 5:07 p.m. Friday for a two-hour trip to Ontario, California. About six minutes later, the chunk of fuselage blew out as the plane was climbing at about 16,000 feet (4.8 kilometres).
One of the pilots declared an emergency and asked for clearance to descend to 10,000 feet (three kilometres), where the air would be rich enough for passengers to breathe without oxygen masks.
Videos posted online by passengers showed a gaping hole where the paneled-over door had been. They applauded when the plane landed safely about 13 minutes after the blowout. Firefighters came down the aisle, asking passengers to remain in their seats as they treated the injured.
It was extremely lucky that the airplane had not yet reached cruising altitude, when passengers and flight attendants might be walking around the cabin, Homendy said.
The aircraft involved rolled off the assembly line and received its certification two months ago, according to online FAA records. It had been on 145 flights since entering commercial service Nov. 11, said FlightRadar24, another tracking service. The flight from Portland was the aircraft’s third of the day.
The Max is the newest version of Boeing’s venerable 737, a twin-engine, single-aisle plane frequently used on U.S. domestic flights. The plane went into service in May 2017.
Two Max 8 jets crashed in 2018 and 2019, killing 346 people. All Max 8 and Max 9 planes were grounded worldwide for nearly two years until Boeing made changes to an automated flight control system implicated in the crashes.
The Max has been plagued by other issues, including manufacturing flaws, concern about overheating that led FAA to tell pilots to limit use of an anti-ice system, and a possible loose bolt in the rudder system.
——
Koenig reported from Dallas. Associated Press reporter Terry Spencer in Fort Lauderdale, Florida, contributed to this report.
MONTREAL – Travel company Transat AT Inc. reported a loss in its latest quarter compared with a profit a year earlier as its revenue edged lower.
The parent company of Air Transat says it lost $39.9 million or $1.03 per diluted share in its quarter ended July 31.
The result compared with a profit of $57.3 million or $1.49 per diluted share a year earlier.
Revenue in what was the company’s third quarter totalled $736.2 million, down from $746.3 million in the same quarter last year.
On an adjusted basis, Transat says it lost $1.10 per share in its latest quarter compared with an adjusted profit of $1.10 per share a year earlier.
Transat chief executive Annick Guérard says demand for leisure travel remains healthy, as evidenced by higher traffic, but consumers are increasingly price conscious given the current economic uncertainty.
This report by The Canadian Press was first published Sept. 12, 2024.
Dollarama Inc.’s food aisles may have expanded far beyond sweet treats or piles of gum by the checkout counter in recent years, but its chief executive maintains his company is “not in the grocery business,” even if it’s keeping an eye on the sector.
“It’s just one small part of our store,” Neil Rossy told analysts on a Wednesday call, where he was questioned about the company’s food merchandise and rivals playing in the same space.
“We will keep an eye on all retailers — like all retailers keep an eye on us — to make sure that we’re competitive and we understand what’s out there.”
Over the last decade and as consumers have more recently sought deals, Dollarama’s food merchandise has expanded to include bread and pantry staples like cereal, rice and pasta sold at prices on par or below supermarkets.
However, the competition in the discount segment of the market Dollarama operates in intensified recently when the country’s biggest grocery chain began piloting a new ultra-discount store.
The No Name stores being tested by Loblaw Cos. Ltd. in Windsor, St. Catharines and Brockville, Ont., are billed as 20 per cent cheaper than discount retail competitors including No Frills. The grocery giant is able to offer such cost savings by relying on a smaller store footprint, fewer chilled products and a hearty range of No Name merchandise.
Though Rossy brushed off notions that his company is a supermarket challenger, grocers aren’t off his radar.
“All retailers in Canada are realistic about the fact that everyone is everyone’s competition on any given item or category,” he said.
Rossy declined to reveal how much of the chain’s sales would overlap with Loblaw or the food category, arguing the vast variety of items Dollarama sells is its strength rather than its grocery products alone.
“What makes Dollarama Dollarama is a very wide assortment of different departments that somewhat represent the old five-and-dime local convenience store,” he said.
The breadth of Dollarama’s offerings helped carry the company to a second-quarter profit of $285.9 million, up from $245.8 million in the same quarter last year as its sales rose 7.4 per cent.
The retailer said Wednesday the profit amounted to $1.02 per diluted share for the 13-week period ended July 28, up from 86 cents per diluted share a year earlier.
The period the quarter covers includes the start of summer, when Rossy said the weather was “terrible.”
“The weather got slightly better towards the end of the summer and our sales certainly increased, but not enough to make up for the season’s horrible start,” he said.
Sales totalled $1.56 billion for the quarter, up from $1.46 billion in the same quarter last year.
Comparable store sales, a key metric for retailers, increased 4.7 per cent, while the average transaction was down2.2 per cent and traffic was up seven per cent, RBC analyst Irene Nattel pointed out.
She told investors in a note that the numbers reflect “solid demand as cautious consumers focus on core consumables and everyday essentials.”
Analysts have attributed such behaviour to interest rates that have been slow to drop and high prices of key consumer goods, which are weighing on household budgets.
To cope, many Canadians have spent more time seeking deals, trading down to more affordable brands and forgoing small luxuries they would treat themselves to in better economic times.
“When people feel squeezed, they tend to shy away from discretionary, focus on the basics,” Rossy said. “When people are feeling good about their wallet, they tend to be more lax about the basics and more willing to spend on discretionary.”
The current economic situation has drawn in not just the average Canadian looking to save a buck or two, but also wealthier consumers.
“When the entire economy is feeling slightly squeezed, we get more consumers who might not have to or want to shop at a Dollarama generally or who enjoy shopping at a Dollarama but have the luxury of not having to worry about the price in some other store that they happen to be standing in that has those goods,” Rossy said.
“Well, when times are tougher, they’ll consider the extra five minutes to go to the store next door.”
This report by The Canadian Press was first published Sept. 11, 2024.
TORONTO – The U.S. Consumer Financial Protection Bureau has ordered TD Bank Group to pay US$28 million for repeatedly sharing inaccurate, negative information about its customers to consumer reporting companies.
The agency says TD has to pay US$7.76 million in total to tens of thousands of victims of its illegal actions, along with a US$20 million civil penalty.
It says TD shared information that contained systemic errors about credit card and bank deposit accounts to consumer reporting companies, which can include credit reports as well as screening reports for tenants and employees and other background checks.
CFPB director Rohit Chopra says in a statement that TD threatened the consumer reports of customers with fraudulent information then “barely lifted a finger to fix it,” and that regulators will need to “focus major attention” on TD Bank to change its course.
TD says in a statement it self-identified these issues and proactively worked to improve its practices, and that it is committed to delivering on its responsibilities to its customers.
The bank also faces scrutiny in the U.S. over its anti-money laundering program where it expects to pay more than US$3 billion in monetary penalties to resolve.
This report by The Canadian Press was first published Sept. 11, 2024.
