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Business News

Boeing to halt production of troubled 737 Max 

A source close to American airplane maker, Boeing Co, said the company is contemplating suspending the production of the 737 Max model.

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Boeing gets new return date, but many challenges lie ahead, Boeing

A source close to American airplane maker, Boeing Co, said the company is contemplating suspending the production of the 737 Max model in the meantime. This comes as American aviation regulators are yet to give clearance to the planemaker following major accidents involving the model in 2018 and earlier this year.

The source, who asked not to be named, went further to disclose that the company’s executives believe that “a temporary pause” in production is the right thing for the company at this point. Clearance for the revamped 737 Max will most likely not be by January 2020 as earlier expected.

In the meantime, Boeing has not specifically addressed this speculation. Following an emailed enquiry by Bloomberg, they responded stating the following:

“We continue to work closely with the FAA and global regulators towards certification and the safe return to service of the Max. We will continue to assess production decisions based on the timing and conditions of return to service, which will be based on regulatory approvals and may vary by jurisdiction.”

Boeing to halt production of troubled 737 Max 

Boeing Production Plant

The company’s directors are expected to meet later this month to deliberate on a number of issues, including setting dividend for 2020. Perhaps, the issue halting the production of 737 Max is one of the things they will be talking about.

[READ MORE: Boeing Planes undergo certification flight next month, eye possible return]

Note that this is not the first time the company is altering its production target for 737 Max. Weeks after the catastrophic Ethiopian Airline crash in March this year, which killed many people, Boeing reduced production for the 737 Max by 19%.

As Nairametrics reported, 737 Max planes were banned from flying in many countries. As such, many of such plane models have been grounded. Boeing has also been unable to make any new deliveries since the grounding. This has resulted in a stockpile of about 380 newly built planes to be left in the company’s storage facilities.

Recall that Nigeria’s Air Peace is one of the airlines around the world which ordered for the 737 Max plane before the deadly crashes of Lion Air and Ethiopian Airlines. The Nigerian airline has been unable to get its order ever since.

Emmanuel is a professional writer and business journalist, with interests covering Banking & Finance, Mergers and Acquisitions, Corporate Profiles, Brand Communication, Fintech, and MSMEs.He initially joined Nairametrics as an all-round Business Analyst, but later began focusing on and covering the financial services sector. He has also held various leadership roles, including Senior Editor, QAQC Lead, and Deputy Managing Editor.Emmanuel holds an M.Sc in International Relations from the University of Ibadan, graduating with Distinction. He also graduated with a Second Class Honours (Upper Division) from the Department of Philosophy & Logic, University of Ibadan.If you have a scoop for him, you may contact him via his email- [email protected] You may also contact him through various social media platforms, preferably LinkedIn and Twitter.

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Business

Customs Apapa Command generates revenue of N65.4 billion in April

This indicates a 64% increase in collection and an unprecedented record that has never been achieved in the history of Apapa Area Command.

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Border closure: Amid N5bn daily revenue, Customs officials lament allowance slash  

The Nigerian Customs Service (NCS) Apapa Area Command has announced a revenue of N65,463,398,355.85 for the month of April—an increase of N25,585,561,139.92 compared to the same period last year.

This was disclosed by Comptroller Ibrahim Yusuf, Area Controller of Apapa command, in a press briefing on Thursday.

What Ibrahim Yusuf is saying

“This indicates a 64% increase in collection and an unprecedented record that has never been achieved in the history of Apapa Area Command.

In line with the provision of extant laws, trade guidelines and enforcement of government fiscal policy measures, the command was able to further strengthen its anti-smuggling operations against economic saboteurs through credible intelligence-driven operations.

This led to the seizure of 4×40 feet containers laden with unregistered pharmaceuticals (674 cartons of tramadol tablets in 225mg and 120mg, and 805 cartons of codeine syrup in 100ml) at APMT and SIFAX 3 bonded terminal respectively.

Other items seized in the period under review include: two containers of unprocessed wood and one container of scrap copper wire,” he said.

He added that the progress the Apapa Command made in the month of April was possible due to the resilience of the officers, citing that the Command had taken steps to ensure efficient revenue collection by creating an enabling environment for legitimate businesses to thrive.

What you should know

Recall Nairametrics reported that the Nigeria Customs Service (NCS) Apapa Command stated earlier that it generated a revenue of N159.58 billion in the first quarter of 2021.

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Business

Why prices of Iron Ore, others may rise soon

The underdeveloped mining of iron ore in Nigeria has led the nation to import the mineral which can be produced locally.

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Iron ore is an important commodity currently in high demand, due to population and infrastructure growth in developing countries, especially Nigeria.

The underdeveloped mining of iron ore in Nigeria has led the nation to import the mineral which can be produced locally. This development is expected to lead to an increase in the price of the commodity, as the nation relies solely on imported iron ore.

Why is the increase imminent

A surge in steel consumption is certain, as the world emerges from its pandemic-induced slump. This is set to drive iron ore to an unprecedented high as the biggest miners struggle to keep up with the frenzied pace of demand.

An Estate Surveyor and Developer, Tunji Lawal, told Nairametrics that expectations are that benchmark prices can get to $200 a ton – topping the record $194 hit more than a decade ago.

According to him, this is happening as Chinese steel producers ramp up production in defiance of government attempts to rein in output to control the industry’s carbon emissions.

He said, “That’s tightening an iron ore market that hadn’t fully recovered from a supply shock more than two years ago.

Iron ore prices could go higher in the short-term and exceeding $200 a ton is definitely possible and that will also push the price up in Nigeria. The price here, which is about N325,000/ton (8mm), is bound to go northward and may increase by N100,000 within a month.”

He added that the increasing demand had been boosting steel prices from Asia to North America.

Hotflex

The hike is not limited to steel, as other building materials are also expected to rise further.

Meanwhile, Dangote Cement, which increased from N2,600 to N3,800 barely a month ago, stands at N4,000/bag and still counting. The price may rise over N4,000 depending on market forces.

Lafarge Cement and BUA Cement also increased from N2,400 and N2,250 to N3,600 and N3,250 respectively, within the same period. Their prices may also rise further.

Tunde Oluwole, a fellow of the Nigerian Institute of Builders, explained that the development was caused by high-interest rates, inflation, increasing exchange rate and scarcity of forex in the country.

He said, “The increasing prices in Nigeria is a result of the combined effects of high-interest rates, devaluation of the naira, inflation, and non-effective distribution network of the materials.”

What you should know

The mining of minerals in Nigeria accounts for only 0.3% of its gross domestic product, due to the nation’s overdependence on its vast oil resources.

China accumulated a majority of the global iron ore imports in 2019, with a 69.1% share of total global imports. Japan followed behind distantly with a 7.5% share of iron ore imports.

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