Boeing to issue safety advice on 737 MAX after Indonesia crash

A retrieval crew moves a recovered engine from the crashed Lion Air jet for further investigation in Jakarta on Sunday, November 4. (AP)
Updated 07 November 2018
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Boeing to issue safety advice on 737 MAX after Indonesia crash

  • The crash of a Lion Air 737 killed 189 people last week
  • Indonesian investigators said this week the plane had an air-speed indicator problem
JAKARTA: Boeing issued a special bulletin Wednesday addressing a sensor problem flagged by Indonesian safety officials investigating the crash of a Lion Air 737 that killed 189 people last week.
The planemaker said local aviation officials believed pilots may have been given wrong information by the plane’s automated systems before the fatal crash.
“The Indonesian National Transportation Safety Committee has indicated that Lion Air flight 610 experienced erroneous input from one of its AOA (Angle of Attack) sensors,” the warning said.
“Boeing issued an Operations Manual Bulletin (OMB) directing operators to existing flight crew procedures to address circumstances where there is erroneous input from an AOA sensor.”
An AOA sensor provides data about the angle at which wind is passing over the wings and tells pilots how much lift a plane is getting.
Lion Air JT610 plunged into the Java Sea less than half an hour after taking off from Jakarta on a routine flight to Pangkal Pinang city. There were no survivors.
Search teams have filled some 186 body bags with remains found after the devastating crash, but only 44 victims have been identified so far.
Divers have recovered one of the two “black boxes” — the flight data recorder — but are still searching for the cockpit voice recorder, in the hope it will shed more light on the cause of the disaster.
Indonesian investigators said this week the plane had an air-speed indicator problem on the doomed flight and on three previous journeys.


Saudi Real Estate Refinance Co. plans up to $1.07bn sukuk sale this year

Updated 23 April 2019
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Saudi Real Estate Refinance Co. plans up to $1.07bn sukuk sale this year

  • The plan by SRC, a subsidiary of Saudi Arabia’s sovereign Public Investment Fund, comes as it prepares to purchase more home loan portfolios
  • SRC, formed in 2017, is also keen to tap foreign institutional investors for its debt sale this year

RIYADH: Saudi Real Estate Refinance Co. (SRC), modelled on US mortgage finance firm Fannie Mae, aims to issue up to 4 billion riyals ($1.07 billion) of long-term sukuk this year, its chief executive said on Tuesday.

The plan by SRC, a subsidiary of Saudi Arabia’s sovereign Public Investment Fund, comes as it prepares to purchase more home loan portfolios from mortgage financing companies and banks to boost the Kingdom’s secondary mortgage market.

SRC, formed in 2017, is also keen to tap foreign institutional investors for its debt sale this year, Fabrice Susini told Reuters in an interview.

“Our strategy is clearly to tap the market twice this year,” he said. “We are really looking at probably issuing something between ... 2 and 4 billion riyal that we may be issuing in two tranches.

He said SRC was looking at sukuk in the 10 to 15-year range, to help minimize refinancing risks. “Generally speaking we are trying to issue as long as possible,” Susini said.

He said the company was assessing whether it could also issue bonds in currencies other than the local riyal.

In March, SRC completed a 750 million riyal sukuk issue with multiple tenors, under a program that allows it to issue up to 11 billion riyals of local currency denominated Islamic bonds.

“The rule of the game for us is, like many projects across the Kingdom, attract liquidity from foreign investors,” Susini said.

He said SRC had spent 1.2 billion riyals from its balance sheet buying mortgages from local mortgage financing companies and provided liquidity to these firms.

It has also signed initial accords with several commercial banks to acquire housing mortgage portfolios.

Saudi Arabia’s housing ministry is targeting the mortgage market to reach a total value of 502 billion riyals by 2020 from around 300 billion riyals now.

The government wants to increase activity in the real estate market as it moves to revitalize the economy and is taking steps to reform the sector as part of its 2030 reform plan.

It has been working with developers and local banks to counter a shortage of affordable housing — one of the country’s biggest social and economic problems. Saudi Arabia wants 60 percent of its nationals to own homes by 2020, up from 47 percent in 2016.

The size of real estate financing relative to its gross domestic product is 5 percent in Saudi Arabia compared to 69 percent in the United States, 74 percent in the United Kingdom and 43 pct in Canada, the housing ministry has said.

“The goal of SRC in this market was to make sure that we will be able to refinance at least around 10 percent of the market in 2020, and 20 percent of the market by 2028,” Susini told Reuters.