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110-554: Blue Air was forced to suspend all operations on 6 September 2022. In November 2022, its license was suspended, and the now-dormant airline was nationalized in December 2022. In March 2023, Blue Air subsequently filed for insolvency . Founded by Nelu Iordache, Blue Air started operating in December 2004. Blue Air initially operated domestic and international flights, although domestic services were soon discontinued due to low sales and competition from TAROM , as well as Căile Ferate Române ,

220-522: A 'welcome to Liverpool' Livery for their Boeing 737-800 Aircraft (YR-BMH). This aircraft included slogans such as 'Cool city, Warm welcome' and 'Liverpool Music city' to help use the aircraft to promote its new base in Liverpool, England, by flying this logo jet across Europe. This aircraft is also the only full special livery aircraft within the Blue Air fleet. Since November 2017, with the entry into force of

330-463: A US-based company that supplied Lion Air with a replacement AoA sensor that was likely miscalibrated. In the crash of Ethiopian Airlines Flight 302, the U.S. National Transportation Safety Board and France's Bureau of Enquiry and Analysis for Civil Aviation Safety identified pilot error and inadequate training by Ethiopian Airlines as critical contributing factors to the crash. Boeing faced legal and financial consequences , as no deliveries of

440-494: A balance-sheet insolvency) become personally liable for the business's debts. Trading insolvently is often regarded as normal business practice in South Africa, as long as the business is able to fulfill its debt obligations when they fall due. Under Swiss law, insolvency or foreclosure may lead to the seizure and auctioning off of assets (generally in the case of private individuals) or to bankruptcy proceedings (generally in

550-402: A bird strike during takeoff. Boeing was criticized for using data from just one of the two sensors, representing a single point of failure on a flight control system. Before the crash of Lion Air Flight 610, pilots were not informed by Boeing of the existence of MCAS and were not required to undergo simulator training on the difference between the 737 MAX and earlier 737 versions. Boeing and

660-402: A civil action or even an offence to continue to pay some creditors in preference to other creditors once a state of insolvency is reached. Debt restructurings are typically handled by professional insolvency and restructuring practitioners, and are usually less expensive and a preferable alternative to bankruptcy. Debt restructuring is a process that allows a private or public company - or

770-528: A company deeper into bankruptcy, under the legal theory of "deepening insolvency". In determining whether a gift or a payment to a creditor is an unlawful preference, the date of the insolvency, rather than the date of the legally declared bankruptcy, will usually be the primary consideration. Boeing 737 MAX 8 The Boeing 737 MAX is the fourth generation of the Boeing 737 , a narrow-body airliner manufactured by Boeing Commercial Airplanes . It succeeds

880-427: A debt when it falls due. Cash-flow insolvency can usually be resolved by negotiation . For example, the bill collector may wait until the car is sold and the debtor agrees to pay a penalty. Balance-sheet insolvency is when a person or company does not have enough assets to pay all of their debts. The person or company might enter bankruptcy , but not necessarily. Once a loss is accepted by all parties, negotiation

990-564: A fourth production line for the 737 MAX would open at the Boeing Everett Factory in Everett, Washington . The line will replace the discontinued Boeing 787 line at the factory. However, after the January 2024 Alaska Airlines Flight 1282 accident in which a door plug became detached (after not being bolted in place by Boeing) and resulted in an uncontrolled decompression of the aircraft,

1100-545: A fund for the families of crash victims. From mid-April 2019, Boeing announced that it was temporarily cutting production of the 737 aircraft from 52 per month to 42 amid the 737 MAX groundings. Production of the LEAP-1B engine continued at an unchanged rate, enabling CFM to catch up its backlog within a few weeks. As the 737 MAX recertification moved into 2020, Boeing suspended production from January to conserve funds and prioritize stored aircraft delivery. The 737 MAX program

1210-434: A government and distribute assets to creditors. Governments can be insolvent in terms of not having money to pay obligations when they are due. If a government does not meet an obligation, it is in " default ". As governments are sovereign entities, creditors who hold debt of the government cannot easily seize the assets of the government to re-pay the debt (though " Vulture funds " often find ways to do so). The recourse for

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1320-435: A high-ranking official advised against buying tickets from the airline. On 7 September, the assets were released by the government, with Blue Air planning to resume reduced operations with just five aircraft in the near future. However, shortly afterwards, Blue Air announced the suspension of all flights until at least 10 October 2022, as the airline was currently not able to afford fuel and other services. On 30 September 2022,

1430-402: A liquidator of their own choice. This process is known as creditors voluntary liquidation (CVL), as opposed to members voluntary liquidation (MVL) which is for solvent companies. Alternatively, a creditor can petition the court for a winding-up order which, if granted, will place the company into what is called compulsory liquidation or winding up by the court. The liquidator realises the assets of

1540-505: A new subsidiary in the Czech Republic, known as Blue Air Moravia; however, this never took place. In 2018 the legal status of the company was changed, from a limited liability company to a joint-stock company ; it also changed its legal name to Blue Air Aviation SA. In that same year (2018), Civil Aviation Group (a joint venture between Moldovan investors and Blue Air) won the privatization process of Moldova's airline, Air Moldova , for

1650-407: A pre-arranged sale of the company's business, often to its directors or owners. The process can be seen as controversial because the creditors do not have the opportunity to vote against the sale. The rationale behind the device is that the swift sale of the business may be necessary or of benefit to enable a best price to be achieved. If the sale was delayed, creditors would ultimately lose out because

1760-539: A range of 3,300 to 3,850 nautical miles [nmi] (6,110 to 7,130 km; 3,800 to 4,430 mi). The 737 MAX 7, MAX 8, and MAX 9 are intended to replace the 737-700, -800, and -900 respectively, and a further-stretched 737 MAX 10 is available. However, as of October 2024 , the MAX ;7 and MAX 10 have not been certified, with the FAA declining to provide a timetable for approval. As of October 2024 ,

1870-519: A re-lofted tail cone another 1%. Electronically controlling the bleed air system improved efficiency. The new engine nacelle included chevrons , similar to those of the Boeing 787, which also helped to reduce engine noise. The 737 MAX uses a split-tip winglet , designed to reduce vortex drag , which improves fuel efficiency by maximizing lift, while staying in the same ICAO aerodrome reference code letter C gates as current Boeing 737s. It resembles

1980-464: A safety reform law passed in response to the MAX crashes. The act requires airliners to be fitted with an engine-indicating and crew-alerting system (EICAS) if type certificated after December 31, 2022. Adding this feature would make the MAX 7 and MAX 10 different from other MAX variants, necessitating additional training for pilots. In November 2022, Boeing announced expected delays to the certification of

2090-422: A sovereign entity - facing cash flow problems and financial distress, to reduce and renegotiate its delinquent debts in order to improve or restore liquidity and rehabilitate so that it can continue its operations. Although the term "bankrupt" may be used referring to a government, sovereign states do not go bankrupt. This is so because bankruptcy is governed by national law; there exists no entity to take over such

2200-449: A statement from the company, Poland's Enter Air SA entered into an agreement to buy up to four 737s. On October 28, Boeing indicated that it expected to deliver about half of the 450 stockpiled aircraft in 2021, and the majority of the remainder in 2022, noting that some of these aircraft will need to be re-marketed and potentially reconfigured. The delivery rate will also condition the production rate for new aircraft, to avoid compounding

2310-517: A successful rescue of a company's business via a sale, but not of the company itself. Since the introduction of the collective insolvency procedure of Administration in 1986, the legislators have decided to set a shelf life on the administrative receivership or, in Scotland, receivership procedure and it is no longer possible to appoint an administrative receiver or, in Scotland, receiver under security created after 15 September 2003. In individual cases

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2420-512: A test aircraft that would eventually be delivered to launch customer Southwest Airlines. On December 8, 2015, the first 737 MAX—a MAX 8 named Spirit of Renton —was rolled out at the Boeing Renton Factory . Because GKN could not produce the titanium honeycomb inner walls for the thrust reversers quickly enough, Boeing switched to a composite part produced by Spirit to deliver 47 MAXs per month in 2017. Spirit supplies 69% of

2530-559: A three-way hybrid of a blended winglet , wingtip fence , and raked wingtip . A split-tip wingtip was first proposed for the McDonnell Douglas MD-12 , a 1990s twin-deck aircraft concept. A MAX 8 with 162 passengers on a 3,000-nautical-mile (5,600 km; 3,500 mi) flight is projected to have a 1.8% lower fuel burn than a blended winglet -equipped aircraft (like many 737NG aircraft) and 1% lower over 500 nmi (930 km; 580 mi) at Mach 0.79. The new winglet has

2640-400: A total height of 9 feet 6 inches (2.90 m). Other improvements include a re-contoured tail cone , revised auxiliary power unit inlet and exhaust, aft body vortex generator removal, and other small aerodynamic improvements. The engines on the 737 MAX were also repositioned, the top of the new engine slightly higher than the top surface of the wing, resulting in a change to

2750-475: Is a synonym for balance-sheet insolvency, cash-flow insolvency and actual insolvency are not synonyms. The term "cash-flow insolvent" carries a strong (but perhaps not absolute) connotation that the debtor is balance-sheet solvent, whereas the term "actually insolvent" does not. Cash-flow insolvency involves a lack of liquidity to pay debts as they fall due. Balance sheet insolvency involves having negative net assets —where liabilities exceed assets. Insolvency

2860-493: Is an offence under the insolvency laws for a corporation to continue in business while insolvent. In others (like the United States with its Chapter 11 provisions), the business may continue under a declared protective arrangement while alternative options to achieve recovery are worked out. Increasingly, legislatures have favored alternatives to winding up companies for good. It can be, in several jurisdictions, grounds for

2970-469: Is defined both in terms of cash flow and in terms of balance sheet in the UK Insolvency Act 1986 , Section 123, which reads in part: 123.-(1) A company is deemed unable to pay its debts --- (a) if a creditor (by assignment or otherwise) to whom the company is indebted in a sum exceeding £750 then due has served on the company, by leaving it at the company's registered office, a written demand (in

3080-500: Is designed by Electroimpact. Electroimpact has also installed fully automated riveting machines and tooling to fasten stringers to the wing skin. The rate increase strained the production and by August 2018, over 40 unfinished jets were parked in Renton, awaiting parts or engine installation, as CFM engines and Spirit fuselages were delivered late. After parked airplanes peaked at 53 at the beginning of September, Boeing reduced this by nine

3190-725: Is governed by the Corporations Act 2001 (Cth). Companies can be put into Voluntary Administration , Creditors Voluntary Liquidation, and Court Liquidation. Secured creditors with registered charges are able to appoint Receivers and Receivers & Managers depending on their charge. In the British Virgin Islands , insolvency law is primarily codified in the Insolvency Act, 2003 and the Insolvency Rules, 2005. In Canada , bankruptcy and insolvency are generally regulated by

3300-420: Is insolvent may be put into liquidation (sometimes referred to as winding-up). The directors and shareholders can instigate the liquidation process without court involvement by a shareholder resolution and the appointment of a licensed Insolvency Practitioner as liquidator. However, the liquidation will not be effective legally without the convening of a meeting of creditors who have the opportunity to appoint

3410-452: Is not a synonym for bankruptcy , which is a determination of insolvency made by a court of law with resulting legal orders intended to resolve the insolvency. Accounting insolvency happens when total liabilities exceed total assets (negative net worth ). The principal focus of modern insolvency legislation and business debt restructuring practices no longer rests on the liquidation and elimination of insolvent entities but on

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3520-471: Is often able to resolve the situation without bankruptcy. A company that is balance-sheet insolvent may still have enough cash to pay its next bill on time. However, most laws will not let the company pay that bill unless it will directly help all their creditors. For example, an insolvent farmer may be allowed to hire people to help harvest the crop, because not harvesting and selling the crop would be even worse for his creditors. It has been suggested that

3630-445: Is the equal and best satisfaction of creditors. If the interests of creditors are respected, insolvent companies are offered different ways to restructure their businesses, for example by implementing an 'insolvency plan' ( Insolvenzplan ) . While regular insolvency proceedings are led by a court-appointed insolvency administrator, 'debtor-in-possession' proceedings are common since the legislative changes in 2012. For natural persons,

3740-464: The 737 legacy series (first approved on December 15, 1967), as a Supplemental type certificate (STC), in lieu of a new design approval. The MAX's first flight took place on January 29, 2016, at Renton Municipal Airport , nearly 49 years after the maiden flight of the original 737-100, on April 9, 1967. The first MAX 8, 1A001, was used for aerodynamic trials: flutter testing, stability and control, and takeoff performance-data verification, before it

3850-401: The 737NG . Southwest Airlines was signed up as the launch customer in 2011. In November 2014, McNerney said the 737 would be replaced by a new airplane by 2030—probably using composite materials—that would be slightly bigger and have new engines but would retain the 737's general configuration. Boeing talked about developing a clean sheet aircraft to replace the 737. The conceived aircraft

3960-535: The Bankruptcy and Insolvency Act . An alternative regime is available to larger companies (or affiliated groups) under the Companies' Creditors Arrangements Act , where total debts exceed $ 5 million. In Germany , insolvency proceedings, both for companies and for natural persons, are regulated by the Insolvency Act (Insolvenzordnung), in effect since 1999 but with significant changes in 2012. The goal of insolvency law

4070-956: The Boeing 737 Next Generation (NG) and competes with the Airbus A320neo family . The series was announced in August 2011, first flown in January 2016, and certified by the US Federal Aviation Administration (FAA) in March 2017. The first 737 MAX delivered to a customer was a MAX 8 to Malindo Air , which accepted and began operating the aircraft in May 2017. The 737 MAX is based on earlier 737 designs, with more efficient CFM International LEAP engines, aerodynamic changes including distinctive split-tip winglets , and airframe modifications. The 737 MAX series has been offered in four variants, with 138 to 204 seats in typical two-class configuration, and

4180-595: The DOJ's fraud conspiracy case against the company. Further investigations revealed the FAA and Boeing had colluded on recertification test flights and attempted to cover up important information, and that the FAA had retaliated against whistleblowers. The FAA cleared the aircraft to return to service on November 18, 2020, subject to mandated design and training changes. Canadian and European authorities followed in late January 2021. By December 2021, when Chinese authorities lifted their grounding, 180 of 195 countries had cleared

4290-458: The Insolvency Act 1986 which aim to provide time for the rescue of a company or, at least, its business. These are Administration and Company Voluntary Arrangement : One particular type of Administration that is becoming more common is called pre pack administration (more information under administration (law) ). In this process, immediately after appointment the administrator completes

4400-649: The Insolvency and Bankruptcy Code 2016. The Insolvency and Bankruptcy Board of India (IBBI) is the regulator for overseeing insolvency proceedings and entities like Insolvency Professional Agencies (IPA), Insolvency Professionals (IP) and Information Utilities (IU) in India . Insolvent citizens may not contest/be appointed for any public office, nor may they participate in govt exams. They are also not allowed to emigrate out. Iranian government Tax, finance and bankruptcy administration handles corporations . First insolvency law

4510-543: The Verbraucherinsolvenzverfahren (literally "insolvency proceeding for individual consumers") allows discharge of all debts after three years, if certain conditions are met. In Hong Kong , insolvency is primarily governed by the Companies (Winding Up and Miscellaneous Provisions) Ordinance (Cap 32) and the Companies (Winding Up) Rules (Cap 32H). In India , bankruptcy and insolvency are generally regulated by

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4620-454: The debts , by a person or company ( debtor ), at maturity ; those in a state of insolvency are said to be insolvent . There are two forms: cash-flow insolvency and balance-sheet insolvency. Cash-flow insolvency is when a person or company has enough assets to pay what is owed, but does not have the appropriate form of payment. For example, a person may own a large house and a valuable car, but not have enough liquid assets to pay

4730-673: The ordinary course of business , or cannot pay its debts as they become due, or is insolvent within the meaning of the Bankruptcy Code . This is important because certain rights under the code may be invoked against an insolvent party which are otherwise unavailable. The United States has established insolvency regimes which aim to protect the insolvent individual or company from the creditors, and balance their respective interests. For example, see Chapter 11, Title 11, United States Code . However, some state courts have begun to find individual corporate officers and directors liable for driving

4840-453: The 737 airframe , including the fuselage, thrust reverser, engine pylons , nacelles , and wing leading edges . A new spar-assembly line with robotic drilling machines was expected to increase throughput by 33%. The Electroimpact automated panel assembly line sped up the wing lower-skin assembly by 35%. Boeing planned to increase its 737 MAX monthly production rate from 42 planes in 2017, to 57 planes by 2019. The new spar-assembly line

4950-473: The 737 MAX aircraft to about 47 a month by the end of 2023 as the company looked to extend its recovery from successive crises. On July 12, the company said it had met its goal of increasing 737 production to 31 per month when it reported its June order and delivery tally. In September, however, the company noted that it was regularly having to pause production due to component shortages and other supply chain problems. In late January 2023, Boeing announced that

5060-571: The 737 MAX has 4,793 unfilled orders and 1,654 deliveries. The 737 MAX has been involved in two fatal accidents: Lion Air Flight 610 in late 2018 and Ethiopian Airlines Flight 302 in early 2019. 346 people died in total. Contributing to the accidents was the Maneuvering Characteristics Augmentation System (MCAS), which activated unexpectedly due to erroneous angle of attack data, and remained active because of pilot error caused by inadequate training. The aircraft

5170-404: The 737 MAX to return to service. In January 2024, the doorway closure blew out of an unused exit doorway on Alaska Airlines Flight 1282 , causing an uncontrolled decompression of the aircraft. The FAA immediately mandated a grounding and inspections of all 737 MAX 9 with a similar configuration; affected aircraft were returned to service starting at the end of that month. The investigation found

5280-644: The 737, but later that month Boeing Commercial Airplanes President James Albaugh said that the company was not sure about that. The Airbus A320neo gathered 667 commitments at the June 2011 Paris Air Show , bringing its order backlog to 1,029 aircraft, an order record for a new commercial airliner. On July 20, 2011, American Airlines , which had long bought only Boeing jets, announced an order for 460 narrowbody jets including 130 A320ceo (current engine option), 130 A320neo, and 100 737NG. Officials also said they would order 100 re-engined 737s with CFM LEAP if Boeing pursued

5390-495: The 737, thanks to its engines: the LEAP from CFM International and the PW1000G from Pratt & Whitney . In February 2011, Boeing CEO Jim McNerney said, "We're going to do a new airplane." The company had been developing a new aircraft to replace the 737 as part of its Yellowstone Project . In March 2011, Boeing CFO James A. Bell told investors that the company might re-engine

5500-414: The FAA announced it would not grant any production expansion of the 737 MAX until it is satisfied that more stringent quality control measures have been enacted. Following the recertification of the MAX 8 and MAX 9, Boeing resumed work to certify the MAX 7 and MAX 10. In March 2022, there were rumors that Boeing would request an exemption from the U.S. Aircraft Safety and Certification Reform Act of 2020,

5610-504: The FAA announced that the MAX had been cleared to return to service. Before individual aircraft could resume service, repairs were required as set out in an airworthiness directive from the FAA. Airline training programs also required approval. On December 3, American Airlines made a demonstration flight for journalists to explain the FAA-required modifications, to regain public trust. The first airline to resume regular passenger service

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5720-619: The FAA would later require simulator training to demonstrate an MCAS activation to pilots. The final report by the National Transportation Safety Committee of Indonesia into the Lion Air crash criticized Boeing's design and the FAA's certification process for the MCAS flight-control system and said the issues were compounded by maintenance issues and lapses by Lion Air's maintenance crews and its pilots, as well as Xtra Aerospace,

5830-429: The MAX could be made while the aircraft was grounded, and airlines canceled more orders than Boeing produced during this period. Boeing found foreign object debris in the fuel tanks of 35 of 50 grounded 737 MAX aircraft that were inspected and had to check the remainder of the 400 undelivered planes. The FAA curtailed Boeing's delegated authority and invited global aviation stakeholders to comment on pending changes to

5940-452: The MAX 7 and MAX 10, then expected in early 2023 and early 2024 respectively. In December, two proposals to exempt the MAX 7 and MAX 10 from the new EICAS requirements were considered for inclusion in a U.S. defense spending bill—one a simple two-year extension to the deadline, the second an exemption for aircraft whose certification applications were submitted before the law was enacted, combined with some equipment changes —but neither proposal

6050-479: The MAX crashes. Boeing would have to retrofit these design changes to all 737 MAXs already delivered in Canada, Europe, and the U.S. within three years of MAX 10 certification. Boeing requested an additional exemption for the MAX 7 in December 2023. The exemption was related to a problem with the engine anti-ice system Boeing had announced in August 2023 that affected all MAX variants. Boeing had found that if pilots left

6160-609: The MAX. In early January 2020, an issue was discovered in the MAX software update, which impacted its recertification effort. As of mid-January, Boeing expected the MAX to return to service by mid-2020. In late April, following the COVID-19 pandemic, Boeing then hoped to win regulatory approval by August 2020. Between June 29 and July 1, the FAA and Boeing conducted a series of recertification test flights. Transport Canada and EASA each concluded their own independent recertification flights in late August and early September. On November 18,

6270-463: The Romanian rail company. Blue Air resumed domestic operations in 2015, starting with Bucharest to Iași flights. On 12 April 2013, Blue Air's management announced that the airline was for sale. On 17 May 2013, the company was purchased by four Romanian shareholders, and BlueAir Transport Aerian SA's flight operations were transferred to Blue Air – Airline Management Solution SRL, a company that bailed

6380-742: The Territorial Continuity in Sardinia, Blue Air connects the Alghero airport with the Rome-Fiumicino Airport, a route operated in the past by Alitalia. The airline, following a conference held at Alghero Airport in early November, announced that the Riviera del Corallo became his fourth international base of operations, after those in Torino, Liverpool and Larnaca. In January 2018, Blue Air planned to launch

6490-464: The U.S. Congress held after the Alaska Airlines Flight 1282 accident. As of February 2024 , Boeing estimated that the development, testing and validation of the fix to the anti-ice system would take an additional nine to 18 months. As of February 2024 , the MAX 7 and MAX 10 have not been certified, with the FAA declining to put any timetable on approval. The delays have set back

6600-489: The accidents was the Maneuvering Characteristics Augmentation System (MCAS), which activated unexpectedly due to erroneous angle of attack data, and inadequate pilot training. Investigations found Boeing did not fully inform operators about MCAS and found shortcomings in the FAA's certification process for the aircraft. In the twenty months the aircraft was grounded, Boeing redesigned the computer architecture that supported MCAS. As initially designed, data from just one of

6710-411: The aerodynamic characteristics of the airframe. Due to the aircraft's close proximity to the ground, the larger and more fuel-efficient engines did not have enough clearance. As a result, the engines were mounted higher on the wings and further forward, changing the aerodynamic characteristics of the aircraft compared to the 737NG. The MCAS software-based flight control law was implemented to account for

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6820-443: The aircraft and to pilot training. The FAA lifted its grounding order in 2020; all aircraft must be repaired to comply with various airworthiness directives . After being charged with fraud in connection of both crashes of the 737 MAX, Boeing settled by paying over US$ 2.5 billion in penalties and compensation: a criminal monetary penalty of $ 243.6 million, $ 1.77 billion in damages to airline customers, and $ 500 million to

6930-526: The aircraft's two angle-of-attack (AoA) sensors was fed into MCAS. When erroneous data from that sensor was fed into flight computers, it caused repeated uncommanded activation of MCAS, which applied nose-down trim to the horizontal stabilizer. The accident investigations revealed that the AoA sensor on Lion Air Flight 610 was miscalibrated, and the Ethiopian Airlines Flight 302 sensor was likely damaged by

7040-751: The airline forecasts carrying close to three million passengers in 2016. Blue Air became a full member of the International Air Transport Association (IATA) on 19 January 2016. Furthermore, Blue Air received the IATA Operational Safety Audit certification in December 2015, being a member of the IATA Clearing House. In March 2017, Blue Air started a base in Liverpool John Lennon Airport , operating to 8 destinations across Europe. Blue Air also created

7150-409: The airline removed its entire route network from sale. Shortly afterwards, all five of the airline's Boeing 737 MAX 8 aircraft were reallocated to LOT Polish Airlines by their lessor. As of October 2022, Blue Air did not plan to resume operations earlier than late 2022. In November 2022 it was announced that Blue Air would be nationalized, with the Romanian state taking over 75 percent of shares, as

7260-670: The airline's hub was located at the Aurel Vlaicu International Airport (Băneasa), until the airport became overcrowded and was increasingly surrounded by urban development. This fact led to the airport's closure for commercial airlines in 2012- the airport was not closed officially, but the operating taxes for airlines were suddenly increased until no airline could afford them. As a result, all airlines moved their operations to Bucharest's largest airport, Henri Coandă International Airport . Blue Air then used this airport as its primary hub until its demise. As of February 2022,

7370-400: The airworthiness of each aircraft. MAX supplier Spirit AeroSystems said it does not expect to return production rate to 52 per month until late 2022. On May 27, Boeing resumed 737 MAX production at a low production rate, with the rate planned to increase towards 31 per month in 2021. On August 19, Boeing announced that it had received new orders for the 737 MAX for the first time in 2020. Per

7480-494: The bankruptcy estate is dealt by an official receiver, appointed by the court. In some cases the file is transferred to RTLU (OR Regional Trustee Liquidator Unit) that will assess your assets and income to see if you can contribute towards paying costs of bankruptcy or even discharge part of your debts. Under the Uniform Commercial Code , a person is considered to be insolvent when the party has ceased to pay its debts in

7590-399: The business out with EUR 30 million. In 2015, Blue Air reported a net profit of EUR 6 million, contrasting to the company's loss of EUR 400,000 in 2014. The airline transported 1.5 million passengers in 2014, an increase from the 1.35 million passengers in 2013. In 2015, the airline transported for the first time more than 2 million passengers. With a total of 25 new routes announced for 2016,

7700-493: The case of registered commercial entities). Turkish insolvency law is regulated by Enforcement and Bankruptcy Law (Code No: 2004, Original Name: İcra ve İflas Kanunu). The main concept of the insolvency law is very similar to Swiss and German insolvency laws. Enforcement methods are realizing pledged property, seizure of assets and bankruptcy. In the United Kingdom , the term bankruptcy is reserved for individuals. Insolvency

7810-525: The certification process, the FAA delegated many evaluations to Boeing, allowing the manufacturer to review their own product. It was widely reported that Boeing pushed to expedite approval of the 737 MAX to compete with the Airbus A320neo, which hit the market nine months ahead of Boeing's model. The first delivery was a MAX 8 on May 16, 2017 to the then Malindo Air (now Batik Air Malaysia ); it entered service on May 22. Norwegian Air International

7920-420: The company and distributes funds realised to creditors according to their priorities, after the deduction of costs. In the case of Sole Trader Insolvency , the insolvency options include Individual Voluntary Arrangements and Bankruptcy . It can be a civil and even a criminal offence for directors to allow a company to continue to trade whilst insolvent. However, two new insolvency procedures were introduced by

8030-535: The condition that they meet the requirements set by the FAA and EASA. China's civil aviation regulator (CAAC) cleared the 94 jets stored by 11 carriers in China to fly again in December 2021. Deliveries of Chinese airplanes stored by Boeing is expected to resume in 4Q 2023. However, EASA forbade airlines from performing RNP AR approaches with the MAX. In response to the recertification, some booking sites introduced tools allowing travelers to filter results to avoid flying on

8140-479: The creditor is to request to be repaid at least some of what is owed. However, in most cases, debt in default is refinanced by further borrowing or monetized by issuing more currency (which typically results in inflation or hyperinflation ). Insolvency regimes around the world have evolved in very different ways, with laws focusing on different strategies for dealing with the insolvent. The outcome of an insolvent restructuring can be very different depending on

8250-553: The currently dormant airline was unable to pay back a state loan. During the same time, the airline's operational license was suspended, but not revoked. In December 2022, Blue Air was indeed nationalized, with the Romanian state contemplating an onward sale of its confiscated 75 percent share to an investor. Shortly after, it was reported that the dormant airline had accumulated up to €250 million in debt. On 21 March 2023, Blue Air filed for insolvency . Blue Air has used Bucharest as its primary hub for most of its history. Initially,

8360-455: The delayed MAX 10s. In mid-2011, one design objective was matching fuel burn of the 737 MAX to that of the Airbus A320neo 's 15% fuel-burn advantage. The initial 737 MAX reduction was 10–12%; it was later enhanced to 14.5%. The fan was widened from 61 inches (150 cm) to 69.4 in (176 cm) by raising the nose gear and placing the engine higher on the wing and further forward. The split tip winglet added 1–1.5% fuel burn reduction and

8470-505: The development cost for the airframe only would be 10–15% of the cost of a new program, which was estimated at US$ 10–12 billion at the time. Bernstein Research predicted in January 2012, that this cost would be twice that of the A320neo. The MAX development cost could have been well over the internal target of US$ 2 billion , and closer to US$ 4 billion . Fuel consumption is reduced by 14% from

8580-520: The engine anti-ice system running after icing was no longer an issue, the system could heat the carbon composite inlet at the front end of the pod surrounding the engine (known as a nacelle) to break and fall off, potentially damaging the engine or fuselage. Boeing said that it was working on a fix for all MAX variants and requested that it be exempted from correcting the MAX 7 before it was allowed to enter service. Boeing withdrew its exemption request in January 2024 after being asked to do so in meetings with

8690-450: The fleet plans of major carriers including Southwest Airlines and United Airlines, the biggest customers for the MAX 7 and MAX 10 respectively. United also gave a rare, public rebuke of Boeing saying it was "disappointed" with the company and would no longer include the MAX 10 in its fleet planning, and had a meeting with Airbus to discuss securing more favorable production slots to enable the airline to introduce A321neos more rapidly to cover

8800-421: The following airlines: As of January 2023, after significantly downsizing its numbers, the Blue Air fleet consisted of the following aircraft prior to ceasing operations: Since its inauguration, Blue Air formerly also operated the following types of aircraft: [REDACTED] Media related to Blue Air at Wikimedia Commons Insolvency In accounting , insolvency is the state of being unable to pay

8910-499: The following month, as deliveries rose to 61 from 29 in July and 48 in August. On September 23, 2015, Boeing announced a collaboration with Comac to build a completion and delivery facility for the 737, in Zhoushan , China, the first outside the United States. This facility initially handles interior finishing only, but will subsequently be expanded to include paintwork. The first aircraft

9020-417: The launch customer, took delivery of its first 737 MAX on August 29, 2017. Boeing planned to deliver at least 50 to 75 aircraft in 2017, 10–15% of the more than five hundred 737s to be delivered in the year. The 737 MAX was grounded after two fatal crashes, Lion Air Flight 610 on October 29, 2018, and Ethiopian Airlines Flight 302 on March 10, 2019, in which a total of 346 people died. The day following

9130-525: The laws of the state in which the insolvency proceeding is run, and in many cases different stakeholders in a company may hold the advantage in different jurisdictions . In Anguilla , the insolvency of individuals is regulated under the Bankruptcy Act (Cap B.15) and corporate insolvency is governed by the Bankruptcy Act (Cap B.15) or the Companies Act (Cap C.65). In Australia , corporate insolvency

9240-516: The other bases of Blue Air were located in Romania and Italy: Blue Air also used to have additional base operations at other Romanian and European airports. A base was maintained at Liverpool John Lennon Airport between 2017 and February 2019. They also had a base at Alghero–Fertilia Airport which was inaugurated in 2017 and closed in April 2019. The base at Mihail Kogălniceanu International Airport , which

9350-462: The plug was not fully bolted into place during production; a subsequent FAA audit found many problems in the production process. In 2006, Boeing began to consider replacing the 737 with a "clean sheet" design that could follow the Boeing 787 Dreamliner . In June 2010, executives postponed the decision. On December 1, 2010, Boeing competitor Airbus launched the Airbus A320neo family , which offered better fuel economy and operating efficiency than

9460-484: The prescribed form) requiring the company to pay the sum so due and the company has for 3 weeks thereafter neglected to pay the sum or to secure or compound for it to the reasonable satisfaction of the creditor,... (2) A company is also deemed unable to pay its debts if it is proved to the satisfaction of the court that the value of the company's assets is less than the amount of its liabilities, taking into account its contingent and prospective liabilities... A company which

9570-488: The price obtainable for the assets would be reduced. In addition to the above-mentioned corporate insolvency procedures, a creditor holding security over an asset of the company may have the power to appoint an insolvency practitioner as administrative receiver or, in Scotland , receiver. The process, latterly known as administrative receivership or, in Scotland, receivership, has existed for many years and has often resulted in

9680-486: The problem. In November, Boeing saw more than 1,000 order cancelations since the grounding in March 2019. Some of these already-built aircraft have seen their order canceled and Boeing is working to find new customers to take delivery. In late January 2022, Boeing's Chief Financial Officer said the 737 program was producing at a rate of 27 aircraft a month and was on track to ramp up the production. On March 4, Boeing reportedly had preliminary plans to ramp up production of

9790-515: The program's margins and cash generation for years. The rating agency also warned that the production halt would have wide and harmful impact to the whole aerospace and defense supply chain and the ramp-up would be slower than previously anticipated. CFM International reduced production of the LEAP-1B for the 737 MAX, in favor of the LEAP-1A for the Airbus A320neo, but was prepared to meet demand for both aircraft. Boeing did not publicly say how long

9900-471: The project. Faced with the record orders for Airbus and the defection of a long-time customer, on August 30, 2011, Boeing's board of directors approved the launch of the re-engined 737, which they said would meet or exceed the range of the Airbus A320neo while burning 4% less fuel. Studies for additional drag reduction were performed during 2011, including revised tail cone, natural laminar flow nacelle, and hybrid laminar flow vertical stabilizer. To focus on

10010-495: The re-engine project, Boeing abandoned the development of a new design under its Yellowstone Project. Firm configuration for the 737 MAX was scheduled for 2013. In March 2010, the estimated cost to re-engine the 737, according to Mike Bair, Boeing Commercial Airplanes' vice president of business strategy and marketing, would be US$ 2–3 billion , including the CFM engine development. During Boeing's Q2 2011 earnings call, CFO James Bell said

10120-401: The remodeling of the financial and organizational structure of debtors experiencing financial distress so as to permit the rehabilitation and continuation of their business. This is known as business turnaround or business recovery . Implementing a business turnaround may take many forms, including keep and restructure, sale as a going concern, or wind-down and exit. In some jurisdictions, it

10230-404: The retirement of their Boeing 737-300s and -500s and replace them with additional leased Boeing 737-800 aircraft. On 6 September 2022, it was announced that Blue Air was forced to suspend all operations for at least six days, following the seizure of the airline's accounts by the Romanian authorities. Prior to this event there had already been arguments between the airline and the state after

10340-531: The same month was approved by the European Union Aviation Safety Agency ( EASA ) on March 27, 2017. After completing 2,000 test flight hours and 180-minute ETOPS testing requiring 3,000 simulated flight cycles in April 2017, CFM International notified Boeing of a possible manufacturing quality issue with low pressure turbine (LPT) discs in LEAP-1B engines. Boeing suspended 737 MAX flights on May 4, and resumed flights on May 12. During

10450-525: The second crash, China became the first air authority to ground the aircraft, followed the next day by Australia, the European Union, India, Malaysia, Singapore, South Korea, and Turkey. The United States Federal Aviation Administration was one of the last to ground the aircraft, defending against groundings by issuing a Continued Airworthiness Notice to operators on March 11, garnering criticism before finally grounding it on March 13, 2019. Contributing to

10560-433: The speaker or writer should either say technical insolvency or actual insolvency in order to always be clear – where technical insolvency is a synonym for balance sheet insolvency, which means that its liabilities are greater than its assets , and actual insolvency is a synonym for the first definition of insolvency ("Insolvency is the inability of a debtor to pay their debt."). While technical insolvency

10670-401: The sum of 50 millions MDL (2.56 million EUR ). Civil Aviation Group took over Air Moldova's debts, worth 1.2 billion Moldovan lei (61 million euro). On 6 July 2020, Blue Air filed for bankruptcy protection after a steep decrease in revenue which was only partially balanced by a 65 Million Euro loan received as state aid from the Romanian government. In November 2020, the airline announced

10780-510: The suspension would last. The last pre-suspension fuselages entered final assembly in early January 2020. Boeing was reported to internally expect production to be halted for at least 60 days. Industry observers began to question if Boeing's projection of record production rate of 57 per month would ever be reached. In early April, the COVID-19 pandemic led Boeing to shut down its other airliner production lines and further delayed recertification of

10890-407: The type. In late January 2020, production was expected to restart in April and take a year and a half to clear the inventory of 400 airplanes, ramping up slowly and building over time: Boeing might have delivered 180 stored jets by year-end and produce an equal number. Boeing did not disclose any possible effect on deliveries caused by the FAA's withdrawal of Boeing's delegated authority to certify

11000-400: The undesirable aerodynamic changes. The 8-inch (20 cm) taller nose-gear strut maintains the same 17-inch (43 cm) ground clearance of previous 737 engine nacelles . New struts and nacelles for the heavier engines add bulk, the main landing gear and supporting structure have been reinforced, and fuselage skins are thicker in some places—thus adding 6,500 pounds (2,900 kg) to

11110-512: Was Brazilian low-cost Gol on December 9. The first in the United States was American Airlines on December 29. Transport Canada and EASA both cleared the MAX in late January 2021, subject to additional requirements. Other regulators worldwide progressively ungrounded the aircraft, including those in the UAE , Australia , Kenya , and Brazil . The Indian Directorate General of Civil Aviation (DGCA) rescinded its ban on MAX airplanes in late August on

11220-480: Was adopted 1935. Those who claim inability are temporary exempt from debt payment. In Ireland , insolvency is governed by the Companies Act 2014 . In Russia, insolvency law is governed by Federal Law No. 127-FZ "On Insolvency (Bankruptcy)" and Federal Law No. 40-FZ "On Insolvency (Bankruptcy) of Credit Institutions". In South Africa , owners of businesses that had at any stage traded insolvently (i.e. that had

11330-463: Was delivered from the facility to Air China on December 15, 2018. The largest part of the suppliers cost are the aerostructures at US$ 10–12 million (35-34% of the US$ 28.5−35 million total), followed by the engines at US$ 7−9 million (25-26%), systems and interiors at US$ 5–6 million each (18-17%), then avionics at US$ 1.5–2 million (5-6%). The 737 MAX gained its airworthiness approval based on

11440-411: Was included in the final spending bill. The U.S. Congress agreed in December 2022 on a bill allowing Boeing to certify the MAX 7 and MAX 10 without EICAS but required that the company must install a third angle-of-attack sensor in all 737 MAX types as previously demanded by European and Canadian regulators. The company also must install a switch to disable the stick shaker, which distracted pilots during

11550-706: Was maintained since April 2017 closed in 2019 as well. The base at Larnaca International Airport closed in September 2020, the one at Iași International Airport shut down in November 2020. However, prior to the shutdown of operations, Iași was planned to be reestablished as an operational base from 2023, inaugurating 14 routes. As of September 2022, prior to the suspension of operations, Blue Air offered flights to 75 scheduled destinations in 21 countries. The airline also operated ad-hoc and seasonal charters on behalf of other companies. Blue Air maintained codeshare agreements with

11660-466: Was modified for an operator and delivered. 1A002 was used for performance and engine testing: climb and landing performance, crosswind, noise, cold weather, high altitude, fuel burn and water-ingestion. Aircraft systems including autoland were tested with 1A003. 1A004, with an airliner layout, flew function-and-reliability certification for 300 hours with a light flight-test instrumentation. The 737 MAX 8 gained FAA certification on March 8, 2017, and in

11770-590: Was subsequently grounded worldwide from March 2019 to November 2020, with the FAA garnering criticism for being the last major authority to ground it. Investigations found Boeing did not fully inform operators about MCAS and found shortcomings in the FAA's certification process for the aircraft. The accidents and grounding cost Boeing an estimated US$ 20 billion in fines, compensation, and legal fees as of 2020 , with indirect losses of more than US$ 60 billion from 1,200 cancelled orders . In 2021, Boeing paid US$ 2.5 billion in penalties and compensation to settle

11880-413: Was the company's largest source of profit. Around 80% of the 737 production costs involve payments to parts suppliers, which may be as low as US$ 10 million per plane. After the announcement, Moody's cut Boeing's debt ratings in December, citing the rising costs due to the grounding and the production halt including financial support to suppliers and compensation to airlines and lessors which could lower

11990-400: Was the second airline to put a 737 MAX into service, when it performed its first transatlantic flight with a MAX 8 named Sir Freddie Laker on July 15, 2017, between Edinburgh Airport in Scotland and Bradley International Airport in the U.S. state of Connecticut. Boeing aimed for 737 MAX to match the 99.7% dispatch reliability of the 737 Next Generation (NG). Southwest Airlines,

12100-470: Was to have a fuselage similar to the 737 though slightly larger, and would make use of the advanced composite technology developed for the 787 Dreamliner . Boeing also considered a parallel development along with the 757 replacement, similar to the development of the 757 and 767 in the 1970s. On August 13, 2015, the first 737 MAX fuselage completed assembly at Spirit Aerosystems in Wichita, Kansas , for

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