Ethiopian Airlines rejects ‘pilot error’ claim in US

The 737 MAX 8 is currently grounded worldwide after the March crash of Ethiopian Airlines Flight 302. (File/AFP)
Updated 17 June 2019

Ethiopian Airlines rejects ‘pilot error’ claim in US

  • The Ethiopian Airlines crash killed all 157 people onboard and drew scrutiny to the new Boeing model’s anti-stall system
  • Boeing is working to submit a modified version of the aircraft’s software and hopes to get the approval of aviation authorities

LONDON: A US politician who blamed pilot error for contributing to the deadly crash of a Boeing 737 Max flown by Ethiopian Airlines was “seriously misinformed,” the carrier’s boss has said.
Republican Sam Graves told a House of Representatives hearing last month that “facts” in investigations after crashes in both Ethiopia and Indonesia “reveal pilot error as a factor in these tragically fatal accidents.”
He also said “pilots trained in the United States would have successfully handled the situation” in both incidents.
But in a BBC interview aired Monday, Ethiopian Airlines chief executive Tewolde GebreMariam said criticisms of his crew’s actions were “seriously misinformed,” and that Graves did not “have the facts in his hands.”
“People who’ve made those comments should ask themselves, ‘Why on earth have they grounded 380 airplanes over the world?’ The facts speak for themselves,” he said.
The 737 MAX 8 is currently grounded worldwide after the March crash of Ethiopian Airlines Flight 302, which killed all 157 people onboard and drew scrutiny to the new Boeing model’s anti-stall system.
Pilots were already worried about the safety of the model following the October 2018 crash in Indonesia of a Lion Air 737 MAX 8 that killed 189 people.
Boeing is working to submit a modified version of the aircraft’s software and hopes to get the approval of the US Federal Aviation Administration (FAA) and its counterparts throughout the world.
But aviation regulators meeting last month were unable to determine when the popular jet might again be allowed to fly, causing costly headaches for airlines worldwide.
Revelations of close ties between Boeing and the FAA in testing the MAX led to a crisis of confidence among the public and airline pilots, as well as some of the other agencies that regulate civil aviation.
“We have work to do to win and regain the trust of the public,” Boeing CEO Dennis Muilenburg conceded at the Paris Air Show on Sunday.


Saudi central bank ready for any Aramco-related liquidity squeeze

Updated 10 December 2019

Saudi central bank ready for any Aramco-related liquidity squeeze

  • Aramco’s long-awaited listing on the Saudi Arabian stock exchange is due on Wednesday
  • The central bank has set up a team to closely monitor all indicators in the banking system during the IPO

RIYADH: Saudi Arabia’s central bank is ready for any liquidity squeeze from Saudi Aramco’s initial public offering (IPO) and is closely monitoring local banks, its governor said, after heavy demand for loans to buy the stock.
Aramco’s long-awaited listing on the Saudi Arabian stock exchange is due on Wednesday, completing the largest IPO on record and raising $25.6 billion from retail and institutional buyers who took on debt to back their orders.
“We don’t rule out that there might be squeeze of liquidity later on, that’s why I am ready and stand ready to intervene,” Ahmed Al-Kholifey told Reuters.
Saudis had clamoured to own part of the “crown jewel” of the world’s top oil exporter in the lead up to its IPO, with Aramco’s institutional tranche 6.2 times oversubscribed, while more than 5 million individuals subscribed to a retail tranche.
The Aramco IPO is the centerpiece of the Saudi crown prince’s plans to diversify the economy away from a reliance on oil, as the money will be reinvested by the Saudi Public Investment Fund (PIF) to promote growth in other sectors.
During the IPO process, the loan-to-deposit ratio (LDR) at some banks had exceeded a 90% “soft guideline” set by the regulator, but the ratio improved after the allocation process ended, Kholifey said in an interview.
“So far no bank has come to ask for liquidity from the central bank. We are ready to intervene in case there is a squeeze of liquidity but most of the indicators right now are not worrying,” Kholifey added.
MONITORING TEAM
The central bank has set up a team specifically to closely monitor all indicators in the banking system during the IPO process, and it held meetings on a daily basis.
“I don’t think in the near future they will settle, we have to keep monitoring the situation until we see things are normal, especially the LDR,” he said.
Saudi corporates snapped up the biggest percentage of allocations to the Aramco IPO at 37.5% and Saudi government institutions were allocated 13.2% of the institutional tranche, the latest figures issued by the deal’s lead bank showed.
Kholifey said that less than 2% of retail subscriptions were leveraged, and most of the bank financing went to high-net-worth individuals and institutional buyers.
He expects most of the IPO proceeds to be invested locally by the PIF, given that most of subscription were internal.
Riyadh scaled back its original IPO plans, scrapping an international roadshow to focus on marketing Aramco to Saudi investors and Gulf Arab allies. It has remained silent on when or where it might list Aramco stock abroad.