US aviation authority orders A380 engine inspections after Air France incident

Above, a photo from the Twitter account of @Bdaddy1391 shows the damaged engine of an Air France A380 aircraft. The Air France A380 superjumbo carrying more than 500 people made an emergency landing in Canada after suffering “serious damage” to one of its four engines. (Twitter via AFP)
Updated 13 October 2017
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US aviation authority orders A380 engine inspections after Air France incident

SINGAPORE: US aviation authorities have ordered visual inspections of fan hubs in engines used on some Airbus SE A380 jets after an engine came apart on an Air France flight last month, forcing it to make an emergency landing.
The US Federal Aviation Administration (FAA) issued an emergency airworthiness directive requiring owners and operators of Engine Alliance (EA) Model GP7200 series engines to visually inspect the engines and remove the fan hub if defects are found.
The EA engines are manufactured by a 50-50 joint venture between General Electric Co. and United Technologies Corp’s Pratt & Whitney unit.
The FAA directive formalizes advice circulated by the engine company on Thursday. EA declined immediate comment.
GP7200 engines account for 60 percent of the global market share of engines that power Airbus A380 superjumbos currently in service, according to Corrine Png, the CEO of transport research firm Crucial Perspective.
In addition to Air France, the affected airlines include Emirates, the world’s largest A380 operator, as well as Etihad Airways, Qatar Airways and Korean Air Lines.
The FAA said the directive, an interim measure, was prompted by the failure of the fan hub on the affected engine on the Air France aircraft.
“An investigation to determine the cause of the failure is on-going and we may consider additional rulemaking if final action is identified,” it said in a statement.
Depending on the number of flight cycles, the inspections must be performed within the next two to eight weeks.
A380 aircraft powered by the rival Rolls-Royce Holdings PLC Trent 900 engine are not affected by the directive.


Goldman Sachs’ second quarter profit up 44 pct; CEO Blankfein to retire

Updated 30 min 37 sec ago
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Goldman Sachs’ second quarter profit up 44 pct; CEO Blankfein to retire

  • The New York-based bank said Tuesday that earnings reached $2.35 billion in the second quarter
  • Nearly all of Goldman’s businesses saw double-digit growth in the second quarter

NEW YORK: Goldman Sachs’ profits jumped 44 percent in the second quarter compared with a year ago, driven by the investment bank’s core franchises: advising companies on mergers, acquisitions and other deals, and its trading business.
The New York-based bank said Tuesday that earnings reached $2.35 billion in the second quarter, compared with $1.63 billion a year earlier. On a per-share basis, Goldman earned $5.98 a share, compared with $3.95 a share a year earlier, beating analysts’ forecasts of $4.65 a share.
Separately, Goldman said Chief Executive Officer Lloyd Blankfein will retire as of Oct. 1, and be replaced by David Solomon, the president and chief operating officer. Blankfein has been CEO since 2006.
Nearly all of Goldman’s businesses saw double-digit growth in the second quarter. Trading was particularly strong. Goldman’s institutional client services division, which contains the firm’s trading operations, posted net revenues of $3.57 billion in the quarter, up 17 percent from a year earlier.
Goldman’s trading performance can be fickle, driven by whether the market was volatile that quarter and whether the right sort of securities saw the right sort of movement. Like its competitor Morgan Stanley, which will report results Wednesday, Goldman has been looking to diversify its businesses, moving in recent years into consumer lending and consumer banking.
Goldman’s investment banking business also had a solid quarter, posting net revenues of $2.05 billion, which is up 18 percent from a year earlier. The firm saw both higher underwriting revenue, as well as revenue for advisory services.
The firm’s return on equity ratio, a closely watched performance gauge for banks like Goldman Sachs which measures how much money the bank earned with the money investors have lent it, was 12.8 percent in the quarter. Banks like Goldman try to keep that figure above 10 percent.
Company-wide net revenues were $9.4 billion in the quarter, also beating analysts’ expectations.
Goldman shares fell 0.8 percent to $229.25 in premarket trading.