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.



Saudi Transport, Logistics Sector Set for 10% Growth in Q2

An investor monitors a trading screen at the Saudi financial market in Riyadh. (AFP)
An investor monitors a trading screen at the Saudi financial market in Riyadh. (AFP)
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Saudi Transport, Logistics Sector Set for 10% Growth in Q2

An investor monitors a trading screen at the Saudi financial market in Riyadh. (AFP)
An investor monitors a trading screen at the Saudi financial market in Riyadh. (AFP)

As Saudi companies start reporting their Q2 financial results, experts are optimistic about the transport and logistics sector. They expect a 10% annual growth, with total net profits reaching around SAR 900 million ($240 million), driven by tourism and an economic corridor project.

In Q1, the seven listed transport and logistics companies in Saudi Arabia showed positive results, with combined profits increasing by 5.8% to SAR 818.7 million ($218 million) compared to the previous year.

Four companies reported profit growth, while three saw declines, including two with losses, according to Arbah Capital.

Al Rajhi Capital projects significant gains for Q2 compared to last year: Lumi Rental’s profits are expected to rise by 31% to SAR 65 million, SAL’s by 76% to SAR 192 million, and Theeb’s by 23% to SAR 37 million.

On the other hand, Aljazira Capital predicts a 13% decrease in Lumi Rental’s net profit to SAR 43 million, despite a 44% rise in revenue. This is due to higher operational costs post-IPO.

SAL’s annual profit is expected to grow by 76% to SAR 191.6 million, driven by a 29% increase in revenue and higher profit margins.

Aljazira Capital also expects a 2.8% drop in the sector’s net profit from Q1 due to lower profits for SAL and Seera, caused by reduced revenue and profit margins.

Mohammad Al Farraj, Head of Asset Management at Arbah Capital, told Asharq Al-Awsat that the sector’s continued profit growth is supported by seasonal factors like summer travel and higher demand for transport services.

He predicts Q2 profits will reach around SAR 900 million ($240 million), up 10% from Q1.

Al Farraj highlighted that the India-Middle East-Europe Economic Corridor (IMEC), linking India with the GCC and Europe, is expected to boost sector growth by improving trade and transport connections.

However, he warned that companies may still face challenges, including rising costs and workforce shortages.