Business

Last Boeing 747 plane leaving factory portends dusk of jumbo jet age

Published

1 year ago

02/02/2023

BEIJING, Feb. 2 (Xinhua) — Boeing said goodbye to its 747 jumbo jets on Tuesday as it delivered the final plane to cargo carrier Atlas Air at the U.S. aircraft manufacturer’s facility in Everett, in the U.S. state of Washington.

The parting of the 747, nicknamed “the Queen of the Skies,” came nearly four years after European aircraft manufacturer Airbus announced it would stop producing the A380, the world’s largest passenger airliner.

With both behemoths nailed in the coffin due to largely reduced orders, the age of jumbo jets is now coming to a close.

IT COMES AND GOES

On Tuesday afternoon, thousands of Boeing’s current and former employees and guests attended a ceremony to bid farewell to the 1,574th and last Boeing 747 ever built in its 53-year-old history.

After the ceremony, the final 747 freighter departed from outside the grand assembly plant in Everett expressly built for the 747 in the late 1960s.

The shutdown of the production line was not done spontaneously. As early as July 2020, Boeing already confirmed that it would end its 747 production in 2022.

As the world’s first wide-body, twin-aisle passenger jet, the 747, which gained a lot of popularity in the 1990s, could hold 400-500 passengers depending on the model and airline layout. Many cargo airlines have also used the 747 as the mainstay of their operations.

A news report by Reuters on Wednesday said Boeing will “remain tied to the 747 through the aftermarket business.” According to consultancy firm Ascend by Cirium, 45 passenger jets and 300 cargo 747s remain in service currently.

Much younger than the 747, the A380 made its maiden flight in 2005, and soon became the major competitor of the 747 on long-haul routes. The full-length double-deck aircraft, the largest and heaviest passenger aircraft in the world, typically seats 525 passengers, with a maximum certified capacity for 853 passengers.

The production of the A380 peaked in 2012 and 2014. However, after Emirates, the largest aircraft customer, reduced its A380 orders as part of a restructuring plan in February 2019, Airbus made the decision to end its A380 production. In December 2021, Emirates received the 251st and last A380 delivered by Airbus, witnessing the end of the superjumbo’s short history.

As of December 2022, there were 237 A380 aircraft in service with 16 operators worldwide.

COSTS MAKE THE CALL

Eroding demand from customers led to the demise of jumbo jets. According to the Reuters report, “Boeing delivered five 747s in 2022, while in 1990, the peak delivery year of the best-selling 747-400 version, Boeing delivered 70 747s.”

A similar scenario befell the A380. In July 2016, Airbus said it would reduce A380 deliveries from 27 aircraft in 2015 to 12 in 2018. In the company’s 2017 half-year report, Airbus adjusted 2019 deliveries to eight aircraft. In 2019, Emirates decided to reduce its A380 orderbook by 39 aircraft.

Airlines are always cost-oriented. The introduction of new types of aircraft over time has made jumbo jets more costly and therefore less attractive to their customers.

Technology breakthroughs in aviation history facilitated the coming out of two-engine airplanes, and unlike the Boeing 747 and A380 and other large four-engine aircraft, those two-engine planes are more fuel efficient.

The fuel costs of the Boeing 747 “flying daily backwards and forwards across the Atlantic are just too expensive now,” another report by Reuters published Wednesday quoted British billionaire Richard Branson as saying.

Jumbo jets have been supplanted by “smaller, more efficient two-engine airplanes” as the latter “could now fly longer distances,” said a report published Tuesday by The New York Times (NYT).

Those new types of aircraft are much safer, too. A timeline published Wednesday by The Wall Street Journal noted that the sheer scale of the 747 “amplified any accidents,” citing the airport disaster in 1997 on the Spanish island of Tenerife where the collision of two Boeing 747 passenger jets on the runway led to 583 fatalities as an example.

Meanwhile, a shift in international flight routes has also phased jumbo jets out of service. According to the NYT report, in the old days, the 747 was popular because it helped airlines cut costs.

“Because the airplane could carry so many more passengers in a single trip, airlines could sell tickets more cheaply, making air travel affordable to the masses,” it said.

However, an increasing number of direct international routes between smaller cities have decreased passenger flows on long-haul routes between megacities, and more empty seats in jumbo jets have raised the costs of flying.

Besides, it is noticeable that the decision to scrap the 747 was also made due to the COVID-19 pandemic’s severe impact on the tourism and aviation sectors in the past three years.

The pressure on commercial customers means they are delaying jet purchases, slowing deliveries, deferring elective maintenance, retiring older aircraft and reducing spend, “all of which affects our business and, ultimately, our bottom line,” Boeing’s President and CEO Dave Calhoun said back in 2020.

“Unfortunately, it’s become clear that we need to make further adjustments based on the prolonged impact of COVID-19,” he said.

Source(s): Xinhua & China Daily

Business

STO opens showroom in Hulhumale’

Published

1 day ago

24/04/2024

State Trading Organization (STO) has opened a showroom specialized for construction in Hulhumale’.

The showroom was inaugurated by Construction Minister Dr. Abdulla Muthalib during a special ceremony held on Tuesday night.

Speaking at the ceremony, STO’s Managing Director Shimad Ibrahim stressed the role of the company’s former managements and board members in carrying forward the company and therefore extended them gratitude.

Situated at the same location as STO’s Hulhumale’ shop – next to STO’s Smart Store near Hulhuamle’ Hospital – the construction solutions showroom was opened following renovations up to modern standards.

STO reports that all construction-related products sold by the company will be available at the showroom including some of the most renowned brands sold by the company; Makita tools, Nippon paint and concrete from prominent mix designing brands among others.

The state-owned company is prominent in the local construction industry as STO’s constructions solutions is the largest importer and seller of construction-related products in the Maldives.

STO noted that customers can now place orders for construction-related products including Makita tools and Nippon paint via the Hulhumale’ showroom which would eliminate the need to travel to Male’ to make the purchases. Arrangements have been made in the showroom to prepare the colors of Nippon paint ordered by the customers on demand.

Henceforth, they attributed the opening of the new showroom as something which would bring easements to the lives of Hulhumale’ residents and construction industry partners operating in the suburb.

Source(s): sun.mv

Business

Economy thrives, projects speed ahead despite challenges

Published

1 week ago

18/04/2024

Before President Dr. Mohamed Muizzu assumed office, the economic condition of the Maldives was significantly deteriorating. Experts attribute the primary reason for the depreciation of the Maldivian currency to the excessive printing of money by the previous administration.

According to statistics from the Maldives Monetary Authority (MMA), more than USD 518.04 million was printed over the last three consecutive years, marking a historic high compared to USD 388.53 million printed over 40 years.

Additionally, upon assuming office, President Muizzu inherited a heavy debt burden. The total debt amounted to over USD 7.71 billion, with a significant portion owed to companies for upcoming parliamentary elections and previously initiated projects, totaling USD 584.88 million.

Despite these challenges, President Muizzu has been proactive in rejuvenating the Maldives’ economic status. Within three months of his tenure, USD 35 million has been deposited into the sovereign development fund. The President estimates that more than USD 100 million will be deposited into the fund by the end of the year.

discontinuation of printing money has been regarded as a pivotal step towards economic progression for the Maldives

President Muizzu’s commitment to revitalizing the Maldivian economy without resorting to the printing of money is indeed a significant pledge. By discontinuing the practice of printing money, the government aims to address economic challenges while ensuring fiscal responsibility and long-term sustainability.

The decision to immediately halt the printing of money upon assuming office underscores President Muizzu’s determination to prioritize sound monetary policy. This move reflects an acknowledgment of the risks associated with excessive money printing, including inflation and currency devaluation, and signals a commitment to addressing these challenges through prudent financial management.

Furthermore, President Muizzu’s plans to boost the country’s prosperity and income by reducing reliance on loans and settling debts owed to both foreign and domestic entities demonstrate a holistic approach to economic revitalization.

attracting a vast pool of investors

The efforts of the present administration to attract a wide range of investors reflect a strategic approach to addressing the significant development needs of the Maldives. By engaging in investment forums both domestically and abroad, the government has been successful in showcasing the diverse investment opportunities available in the country.

The decision to host investment forums in countries like China and the UAE demonstrates a proactive approach to international investment promotion. These forums serve as platforms for highlighting the potential for investment in key sectors such as infrastructure, tourism, and hospitality. By creating awareness about these opportunities, the government aims to attract investors who are interested in contributing to the development of critical projects, including the establishment of bridges, domestic airports, and resorts.

Over 500 projects underway

The continuation of 527 projects, including those that faced interruptions due to non-payment to companies during the government transition, underscores the commitment of President Muizzu’s administration to ensure continuity and progress in ongoing initiatives. Despite the challenges encountered, efforts have been made to address issues such as delayed payments and optimize project expenses to keep important projects on track.

It’s notable that the current year’s budget, initially approved by the prior administration, may not have fully aligned with President Muizzu’s priorities and rules for project implementation. This misalignment may have resulted in some projects not receiving adequate budget allocations or not being included in the budget at all. However, the administration has taken steps to optimize expenses and prioritize projects that align with President Muizzu’s vision for development

Initiatives to enhance economic growth and foster sustainable growth

The International Monetary Fund (IMF) has recognized President Muizzu’s initiatives as some of the strongest implementations seen among world leaders, emphasizing their potential for substantial progression. The IMF applauded the government’s decision not to overdraw the government’s account and expressed its readiness to provide any assistance needed. This endorsement from the IMF underscores the effectiveness of President Muizzu’s economic policies and strategies.

Additionally, the Maldives National Chamber of Commerce and Industries has voiced support for the government’s initiatives, recognizing them as favorable for the Maldivian future as a growing economy. Despite challenges such as a shortage of dollars for small businesses, the Chamber remains optimistic that the government’s decisive actions will lead to economic growth and stability in the value of the dollar.

The government has projected a 5.5 percent economic growth rate for this year, indicating confidence in the trajectory of the economy under President Muizzu’s leadership. Furthermore, President Muizzu revealed a significant reduction in the country’s primary debt balance, from USD 103.61 billion last year to USD 8.68 million in the current year. This reduction in debt, achieved within just four months, demonstrates the government’s commitment to fiscal responsibility and its ability to effectively manage the country’s finances.

Overall, these developments indicate that the government’s economic rejuvenation efforts have been successful, earning the confidence of global financial institutions in the Maldives’ future economic prospects.

Source(s): PsmNews

Business

Council to issue 14 plots in Hanimaadhoo for tourism development

Published

1 week ago

15/04/2024

Haa Dhaalu atoll Hanimaadhoo island council has announced a 50-year lease on 14 plots from the island for tourism development purposes.

In the announcement put on gazette by the council, it has opened bid opportunity for interested bidders to lease the plots from Hanimaadhoo’s tourism zone.

The council has announced lease of 5,000 square feet plots for a 50-year lease period, for which interested proponents are required to register for the bids before 13:00hrs on April 30th, 2024.

For proponents wishing to mail the bid registration form, they can mail it to info@hanimaadhoo.gov.mv.

Proponents must furnish a bid registration, non-refundable, fee of MVR 1,000 for the 5,000 square feet plots. If proponents wish to acquire more than one plot, then they must pay MVR 1,000 per plot.

If the council annuls the announcement, it said the registration fees will be refunded to the proponents, and added the proponents will receive bid books upon registration.

Bid acceptance and opening are scheduled for April 30th, 2024 as well.

While the Hanimaadhoo International Airport is under an expansion project, the island has been putting efforts to increase its local tourism activities as well.

During his last month visit to Hanimaadhoo, President Dr. Mohamed Muizzu said the airport’s expansion will contribute towards increased tourism activity in the island.

He also said sustainable development cannot be achieved without individual development of key regions which include Hanimaadhoo as well.

Source(s): sun.mv