Ethiopian Airlines Pilot Cried 'Pull Up' Before 737 Max Crash, Preliminary Report Blames Boeing

Agencies
April 5, 2019

Apr 5: Ethiopian Airlines' doomed 737 MAX jet hit excessive speed and was forced downwards by a wrongly-triggered automation system as pilots wrestled to regain control, a preliminary report into the crash that has shaken the aviation world showed on Thursday. Three times the captain, Yared Getachew, cried "pull up", before the Boeing Co plane plunged into a field six minutes after takeoff from Addis Ababa, killing all 157 passengers and crew, said the report by Ethiopian investigators.

The March 10 disaster, and parallels with another 737 MAX crash in Indonesia last October in which 189 people died, has led to the worldwide grounding of Boeing's flagship model.

It has also brought uncomfortable scrutiny over new software, pilot training and regulatory rigour.

The report leaves unanswered questions, aviation experts said, over whether crew followed guidance not to restore power to a troublesome anti-stall system following sensor damage, possibly caused by a bird strike. The plane was also left at unusually high thrust throughout the flight, data suggested.

While the Ethiopian Civil Aviation Authority's Accident Prevention and Investigation Bureau had a remit to investigate rather than blame, it implicitly pointed the finger at Boeing by defending the pilots, recommending the U.S. company fix its control systems, and saying regulators must be certain before allowing the MAX back in the air.

"The crew performed all the procedures repeatedly provided by the manufacturer but was not able to control the aircraft," Transport Minister Dagmawit Moges told a news conference.

"Since repetitive uncommanded aircraft nose down conditions are noticed ... it is recommended that the aircraft control system shall be reviewed by the manufacturer."

Boeing, the world's biggest planemaker and one of the United States' most important exporters with a $500 billion order book for the MAX, says a new software fix for its MCAS anti-stall system will enable pilots to always override if necessary.

Responding to the preliminary report, Boeing Chief Executive Officer Dennis Muilenburg said: "As pilots have told us, erroneous activation of the MCAS function can add to what is already a high workload environment."

"It's our responsibility to eliminate this risk. We own it and we know how to do it," Muilenburg said in a statement.

FRAGMENTS IN A CRATER

According to the preliminary report, an alarm indicating excess speed was heard on the cockpit voice reporter as the jet reached 500 knots (575 miles per hour) - well above operational limits.

The plane had faulty "angle of attack" sensor readings, its nose was pushed down automatically, and the crew lost control despite following recommended instructions, it said.

"Most of the wreckage was found buried in the ground," the report said, indicating the strength of the impact on an arid field in an agricultural zone. No bodies were recovered, only charred fragments among the debris in a crater.

A final report by Ethiopian authorities aided by air-safety experts from the United States and Europe is due to be published within a year.

Boeing has seen billions wiped off its market value since the crash, but its shares rose 2.9 percent on Thursday. Morgan Stanley said the report of flight control problems, whichBoeing was already trying to fix, meant a "worst case scenario" of a new cause was probably off the table.

The software update "along with the associated training and additional educational materials that pilots want in the wake of these accidents, will eliminate the possibility of unintended MCAS activation and prevent an MCAS-related accident from ever happening again," Muilenburg's statement said.

Families of the victims, regulators and travellers around the world have been waiting to find out to what extent Boeing technology or the pilots' actions played a role.

The preliminary report into the crash of a Lion Air 737 MAX in Indonesia suggested pilots also lost control after grappling with the MCAS software, a new automated anti-stall feature that repeatedly lowered the nose based on faulty sensor data.

"Whatever the issues were, they better be 110 percent sure about their resolution, otherwise the 157 lives lost would have been for nothing if something like this happens again," said one woman, who lost her father in the Ethiopian crash, asking not to be identified. "This is a lesson to not take shortcuts in order to try and save bucks."

'PROFITS OVER SAFETY'?

The U.S. Federal Aviation Administration regulator, under fire for its certification of the MAX, cautioned the inquiry was not over. "As we learn more about the accident and findings become available, we will take appropriate action," it said.

Boeing may press to know more about how crew members responded to problems triggered by the faulty data. The New York Times quoted the Ethiopian government's Dagmawit as saying pilots turned MCAS off and on, which is not the step recommended in procedures telling crew to leave it off once disabled.

With bereaved families angry and confused, relatives of an American woman killed in the Ethiopian crash, Samya Stumo, filed the first lawsuit on behalf of a U.S. victim in Chicago. The complaint named Boeing and Rosemount Aerospace Inc, the manufacturer of the angle of attack sensor, as defendants.

Stumo is the niece of consumer activist Ralph Nader, who called for a boycott of the 737 MAX on Thursday.

Pilots around the world were watching closely.

"If the preliminary report from the Ethiopian authorities is accurate, the pilots quickly identified the malfunction and applied the manufacturer's checklist," said Captain Jason Goldberg, spokesman for Allied Pilots Association, which represents American Airlines pilots.

"Following this checklist did not appear to allow the pilots to regain control of the aircraft."

But a former U.S. National Transportation Safety Board investigator questioned the aircraft's speed, which according to data in the report was left on a higher than usual setting. Aviation experts say the sensor fault should have required the crew to take manual control of the power since it would disrupt accurate speed readings in the cockpit.

"The report does not address information about unreliable airspeed procedures which should be considered," said Greg Feith, a former NTSB air safety investigator.

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Agencies
January 21,2020

New Delhi, Jan 21: With the IMF lowering India's economic growth estimate for the current fiscal to 4.8 per cent, senior Congress leader P Chidambaram on Tuesday claimed an attack on the world body and its chief economist Gita Gopinath by government ministers was imminent.

He also alleged that the growth figure of 4.8 per cent given by the International Monetary Fund (IMF) is after some "window dressing" and he won't be surprised if it goes even lower.

"Reality check from IMF. Growth in 2019-20 will be BELOW 5 per cent at 4.8 per cent," Chidambaram said in a series of tweets.

"Even the 4.8 per cent is after some window dressing. I will not be surprised if it goes even lower," the former finance minister said.

IMF Chief Economist Gopinath was one of the first to denounce demonetisation, he noted.

"I suppose we must prepare ourselves for an attack by government ministers on the IMF and Dr Gita Gopinath," Chidambaram said.

The IMF lowered India's economic growth estimate for the current fiscal to 4.8 per cent and listed the country's much lower-than-expected GDP numbers as the single biggest drag on its global growth forecast for two years.

In October, the IMF had pegged India economic growth at 6.1 per cent for 2019.

Listing decline in rural demand growth and an overall credit sluggishness for lowering of India forecasts, Gopinath, however, had said the growth momentum should improve next year due to factors like positive impact of corporate tax rate reduction.

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News Network
January 10,2020

Washington, Jan 10: It is “highly likely” that Iran shot down the civilian Ukrainian jetliner that crashed near Tehran late Tuesday, killing all 176 people on board, U.S., Canadian and British officials declared Thursday.

They said the fiery missile strike could well have been a mistake amid rocket launches and high tension throughout the region.

The crash came just a few hours after Iran launched a ballistic attack against Iraqi military bases housing U.S. troops in its violent confrontation with Washington over the U.S. drone strike that killed an Iranian Revolutionary Guard general. The airliner could have been mistaken for a threat, said four U.S. officials, speaking on condition of anonymity to discuss sensitive intelligence.

Canadian prime minister Justin Trudeau, whose country lost at least 63 citizens in the downing, said in Toronto: “We have intelligence from multiple sources including our allies and our own intelligence. The evidence indicates that the plane was shot down by an Iranian surface-to-air missile.”

Likewise, U.K. prime Minister Boris Johnson and Australian prime minister Scott Morrison offered similar statements. Morrison also said it appeared to be a mistake. “All of the intelligence as presented to us today does not suggest an intentional act,” he said.

The assessment that 176 people were killed as collateral damage in the Iranian-U.S. conflict cast a new pall over what had at first appeared to be a relatively calm aftermath following the U.S. military operation that killed Iranian Gen. Qassem Soleimani.

At the White House, U.S. president Donald Trump suggested he believed Iran was responsible for the shootdown and dismissed Iran's initial claim that it was a mechanical issue with the plane.

“Somebody could have made a mistake on the other side.” Trump said, noting the plane was flying in a “pretty rough neighborhood."

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News Network
March 6,2020

New Delhi, Mar 6: Shares of YES Bank and State Bank of India came under huge selling pressure on Friday as developments unfolded regarding SBI picking stake in the private lender. Shares of the lender hit record low of Rs 5.55, plunging 85 per cent, and were trading below its previous low of Rs 8.16 hit on March 9, 2009.

SBI, on the other hand, slumped 11 per cent to Rs 257.35 on the BSE. The benchmark S&P BSE Sensex was trading with a cut of over 3 per cent at 37,251.37 level.

In the past three months, share price of the private lender has plunged 41 per cent, while the state-owned lender has slipped 14 per cent. In comparison, the S&P BSE Sensex has dipped 5.6 per cent till Thursday.

On Thursday, the Reserve Bank of India superseded the board of troubled private sector lender YES Bank and imposed a 30-day moratorium on it “in the absence of a credible revival plan” amid a “serious deterioration” in its financial health.

During the moratorium, which came into effect from 6 pm on Thursday, YES Bank will not be allowed to grant or renew any loans, and “incur any liability”, except for payment towards employees’ salaries, rent, taxes and legal expenses, among others.

This is the first time that a bank of this size will be put under a moratorium by the RBI.

“The financial position of YES Bank had undergone a steady decline “largely due to inability of the bank to raise capital to address potential loan losses and resultant downgrades, triggering invocation of bond covenants by investors, and withdrawal of deposits,” RBI said in a statement.

“After the moratorium, the next step will be to infuse to money and keep the bank afloat. So from shareholders’ point of view, the future is certainly hazy as the capital requirement is huge. The good part, however, is that the RBI has stepped in and depositors don't have to worry,” says Siddharth Purohit, a research analyst at SMC Securities.

Meanwhile, analysts at Nomura believe that placing the Bank under moratorium implies that equity value in the bank would be negligible, and that the chances of private capital participating in future capital raising plan are near zero.

"Any resolution for Yes Bank is more proposed from the perspective of deposit holders and systemic stability, and not from the perspective of Yes Bank equity investors or even perpetual bond holders," they wrote in a note dated March 6.

In another development, SBI’s Board Thursday gave in-principle approval to consider an “investment opportunity” in YES Bank, even as it said “no decision had yet been taken to pick up stake in the bank”.

According to a  report, highly-placed sources indicated a rescue plan involving SBI and Life Insurance Corporation of India (LIC) was being discussed and an announcement in this regard might be made soon.

“While the finer details of the deal are being worked out, it is anticipated that both SBI and LIC together will take a 51 per cent stake in the bank, with a one-year lock-in period,” the report said.

Most analysts believe it is a positive step for the Indian financial sector as the government has tried to avoid a repeat of IL&FS-like crisis.

“The move is a positive step for the financial sector as a whole. By this, the government has tried to avoid a repeat of IL&FS-like crisis and has saved the depositors,” said AK Prabhakar, Head of Research at IDBI Capital. While we know that YES Bank has a huge pile of bad loans, SBI is the only bank that has the capacity to absorb it, he added.

However, the valuation at which YES bank would be taken over remains a cause of concern.

Global brokerage firm JP Morgan Thursday cut its target price for YES Bank on Thursday to Rs 1 per share, taking into account the potential fall in the lender’s net worth due to stressed assets.

“We believe forced bailout investors will likely want the bank to be acquired at near-zero value to account for risks associated with the stress book and likely loss of deposits. We think the bank will need to be recapitalised at nominal equity value and could test dilution of additional tier 1 (AT1) capital. We remain underweight and cut our target price to Rs 1 as we believe net worth is largely impaired,” JP Morgan said in a note.

Global brokerage firm Nomura estimates a need of Rs 25,000-44,000 crore and adjusted for Rs 7,400 crore of current coverage, if the current stress of Rs 65,000-70,000 crore faces 70 per cent loss given default (LGD).

"It implies Rs 18,000-37,000 crore needed for provisioning against the current net worth of Rs 25,700 crore Also, to run as going concern, the bank would require over Rs 20,000 crore of CET-1 capital as well," the note said.

YES Bank has registered slippages of Rs 12,000 crore so far in FY20, while it has placed Rs 30,000 crore of loan assets under the watch list. Its deposits stood at Rs 2.09 trillion on September 30, 2019, while its advances totalled Rs 2.24 trillion. The bank has delayed publishing its December quarter results by a month to March 14.

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