Lion Air: Passenger numbers fell less than 5 percent after deadly crash

The cause of the Oct. 29 crash into the Java Sea has yet to be determined. (File/AFP)
Updated 10 December 2018
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Lion Air: Passenger numbers fell less than 5 percent after deadly crash

  • “It was under 5 percent compared to the traffic at the same month last year,” said Lion Air CEO on November passenger numbers
  • He said Lion Air did not “clearly understand” whether the crash was responsible for the fall in traffic in November

JAKARTA: Lion Air said on Monday passenger numbers dropped by less than 5 percent in November compared to a year earlier, after one of its Boeing Co. 737 MAX jets crashed in late October killing all 189 people on board.
“There was a decline but it wasn’t too significant,” the airline’s CEO Edward Sirait told television network CNN Indonesia. “It was under 5 percent compared to the traffic at the same month last year.”
He said Lion Air did not “clearly understand” whether the crash was responsible for the fall in traffic in November, which he said was a low season for travel.
The airline, Indonesia’s largest, is privately owned and does not publicly release traffic statistics or financial results.
Sirait said last week Lion Air was considering canceling orders for 737 MAX jets but it had not yet made a decision.
Sources told Reuters that relations between the airline and Boeing had worsened in a spat over responsibility for the crash.
The airline has 190 Boeing jets worth $22 billion at list prices waiting to be delivered, on top of 197 already taken, making it one of the largest US export customers.
Bankers and some analysts say Lion Air and Southeast Asian rivals over-expanded and would be comfortable with fewer orders.
Boeing has declined to comment on contractual matters but industry sources say aerospace companies rarely leave room for unilateral cancelations except in exceptional circumstances.
The cause of the Oct. 29 crash into the Java Sea has yet to be determined.


US-China trade deal hopes grow as oil prices decline

Updated 19 June 2019
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US-China trade deal hopes grow as oil prices decline

  • Data suggested a smaller-than-expected fall in American crude inventories
  • Preparations underway for Donald Trump to meet Xi Jinping next week at the G20 summit in Osaka

LONDON: Oil prices declined on Wednesday as data suggested a smaller-than-expected fall in American crude inventories, as hopes for a US-China trade deal continue to grow.
Brent crude futures were down 51 cents at $61.72 a barrel.
US West Texas Intermediate crude fell 25 cents to $53.65 a barrel. On Tuesday, it had recorded its biggest daily rise since early January.
After weeks of swelling, US crude stocks fell by 812,000 barrels last week to 482 million, the American Petroleum Institute said on Tuesday, a smaller fall than the 1.1-million-barrel drop analysts had expected.
Official estimates on US crude stockpiles from the US government’s Energy Information Administration are due during afternoon trading.
US President Donald Trump offered some support, saying preparations were underway for him to meet Chinese President Xi Jinping next week at the G20 summit in Osaka, Japan, amid hopes a trade deal could be thrashed out between the two powers. Trump has repeatedly threatened China with tariffs since winning office in 2016.
European Central Bank President Mario Draghi also offered a boost, saying on Tuesday that he would ease policy again if inflation failed to accelerate.
Tensions remain high in the Middle East after last week’s tanker attacks. Fears of a confrontation between Iran and the US have mounted, with Washington blaming Tehran, which has denied any role.
Trump said he was prepared to take military action to stop Iran having a nuclear bomb but left open whether he would approve the use of force to protect Gulf oil supplies.
On Wednesday, oil markets shrugged off a rocket attack on a site in southern Iraq used by foreign oil companies.
“It is interesting to note that the crude oil futures market could not rally on hawks planting bombs in the Strait of Hormuz but could rally on doves planting quantitative easing,” Petromatrix’s Olivier Jakob said in a note.
“This is an oil market that doesn’t know how to react when an oil tanker blows up but knows how to react when the head of a central bank makes some noise.”
Members of the Organization of the Petroleum Exporting Countries have agreed to meet on July 1, followed by a meeting with non-OPEC allies on July 2, after weeks of wrangling over dates.
OPEC and its allies will discuss whether to extend a deal on cutting 1.2 million barrels per day of production that runs out this month.