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FAA Orders Inspection of 2,600 Boeing 737s Over Oxygen Mask Issue

The Boeing logo is displayed on one of its buildings in El Segundo, California, USA, 08 July 2024. EPA/CAROLINE BREHMAN
The Boeing logo is displayed on one of its buildings in El Segundo, California, USA, 08 July 2024. EPA/CAROLINE BREHMAN
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FAA Orders Inspection of 2,600 Boeing 737s Over Oxygen Mask Issue

The Boeing logo is displayed on one of its buildings in El Segundo, California, USA, 08 July 2024. EPA/CAROLINE BREHMAN
The Boeing logo is displayed on one of its buildings in El Segundo, California, USA, 08 July 2024. EPA/CAROLINE BREHMAN

The Federal Aviation Administration said on Monday it is requiring inspections of 2,600 Boeing 737 airplanes because passenger oxygen masks could fail during an emergency due to a retention strap.
The FAA said it was requiring the inspections of 737 MAX and Next Generation airplanes after multiple reports of passenger service unit oxygen generators shifting out of position, an issue that could result in an inability to provide supplemental oxygen to passengers during a depressurization event.
Boeing, which on June 17 issued a bulletin to airlines calling for visual inspections, said Monday it had told airlines to update a subset of the restraining straps on 737 oxygen generators after a new adhesive introduced on the straps in August 2019 had been seen under certain circumstances to allowed units to shift up to three quarters of an inch.
"We have gone back to the original adhesive for all new deliveries to ensure the generators remain firmly in place, as intended," Boeing said, adding inspections of the in-service fleet and undelivered airplanes have not identified any units that failed to operate properly.
According to Reuters, the FAA said its airworthiness directive was immediately effective and requires inspections and corrective actions if needed within 120 to 150 days based on the 737 model. The FAA is also barring airlines from installing potentially defective parts.
Airlines must conduct a general visual inspection and if needed replace oxygen generators with new or serviceable oxygen generators, strap thermal pads and reposition impacted oxygen generators, the agency said.
On average, a 737 has 61 oxygen generators and each generator has two straps.

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Revenue Growth, Improved Operational Efficiency Boost Profitability of Saudi Telecom Companies

A man monitors the movement of stocks on the Saudi Tadawul index. (AFP)
A man monitors the movement of stocks on the Saudi Tadawul index. (AFP)
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Revenue Growth, Improved Operational Efficiency Boost Profitability of Saudi Telecom Companies

A man monitors the movement of stocks on the Saudi Tadawul index. (AFP)
A man monitors the movement of stocks on the Saudi Tadawul index. (AFP)

Telecommunications companies listed on the Saudi Stock Exchange (Tadawul) achieved a 12.46 percent growth in their net profits, which reached SAR 4.07 billion ($1.09 billion) during the second quarter of 2024, compared to SAR 3.62 billion ($965 million) during the same period last year.

They also recorded a 4.76 percent growth in revenues during the same quarter, after achieving sales worth more than SAR 26.18 billion ($7 billion), compared to SAR 24.99 billion ($6.66 billion) in the same quarter of 2023.

The growth in the revenues and net profitability is the result of several factors, including the increase in sales volume and revenues, especially in the business sector and fifth generation services, as well as the decrease in operating expenses and the focus on improving operational efficiency, controlling costs, and moving towards investment in infrastructure.

The sector comprises four companies, three of which conclude their fiscal year in December: Saudi Telecom Company (STC), Mobily, and Zain Saudi Arabia. The fiscal year of Etihad Atheeb Telecommunications Company (GO) ends on March 31.

According to its financial results announced on Tadawul, Etihad Etisalat Company (Mobily) achieved a 33 percent growth rate of profits, bringing its profits to SAR 661 million by the end of the second quarter of 2024, compared to SAR 497 million during the same period in 2023. The company also achieved a 4.59 percent growth in revenues to reach SAR 4.47 billion, compared to SAR 4.27 billion in the same quarter of last year.

The Saudi Telecom Company achieved the highest net profits among the sector’s companies, at about SAR 3.304 billion in the second quarter of 2024, compared to SAR 3.008 billion in the same quarter of 2023. The company registered a growth of 4.52 percent in revenues.

On the other hand, the revenues of the Saudi Mobile Telecommunications Company (Zain Saudi Arabia) increased by about 6.69 percent, as it recorded SAR 2.55 billion during the second quarter of 2024, compared to SAR 2.39 billion in the same period last year.

Commenting on the quarterly results of the sector’s companies, and the varying net profits, the head of asset management at Rassanah Capital, Thamer Al-Saeed, told Asharq Al-Awsat that the Saudi Telecom Company remains the sector leader in terms of customer base expansion.

He also noted the continued efforts of Mobily and Zain to offer many diverse products and other services.

Financial advisor at the Arab Trader Mohammed Al-Maymouni said the financial results of telecom sector companies have maintained a steady growth, up to 12 percent, adding that Mobily witnessed strong progress compared to the rest of the companies, despite the great competition which affected its revenues.

He added that Zain was moving at a good pace and its revenues have improved during the second quarter of 2024. However, its profits were affected by an increase in the financing cost by SAR 26.5 million riyals and a rise in interest, while net income declined significantly compared to the previous year, during which the company made exceptional returns.