Boeing focuses on quality management enhancement amid safety concerns, says top official

Omar Arakat, vice president of commercial sales and marketing of Boeing in the Middle East and Africa. AN
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Updated 21 May 2024
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Boeing focuses on quality management enhancement amid safety concerns, says top official

RIYADH: Aerospace giant Boeing is enhancing its quality management system to meet regulatory standards, ensuring passenger safety, a top official told Arab News.

Speaking on the sidelines of the Future Aviation Forum in Riyadh, Omar Arakat, vice president of commercial sales and marketing of Boeing in the Middle East and Africa, said that the company is putting “a lot of emphasis” to meet the safety standards proposed by regulators. 

The US plane maker is revamping its management in response to increasing pressure from airlines, regulators, and investors as it faces a deepening crisis following a mid-air panel blowout on a 737 MAX plane in January. 

An Alaska Airlines Boeing 737-9 MAX experienced a mid-cabin exit door panel blowout shortly after takeoff, triggering multiple investigations, including one by the Federal Aviation Administration in the US. 

When asked about safety developments, Arakat said: “I’m assuming you are referring to the quality issues that have made headlines, and I assure you that Boeing’s number one priority is safety and quality. We are doing a lot of plans to strengthen our quality management system.”  

He added: “We’re also sharing with our customers all the steps that were taken to make sure that they feel the comfort that Boeing is doing the right thing.”  

Detailing Boeing’s initiatives to enhance safety standards, Arakat added that the company is directly engaging with its suppliers and increasing involvement by inspecting various stages in the aircraft production cycle. 

He expressed his enthusiasm about the progress in Saudi Arabia’s aviation sector during the discussion. 

“We are very optimistic, and we are very excited about what is going on in Saudi Arabia in general, and specifically within the aviation sector. There is a lot of commitment by the leadership of Saudi Arabia to support aviation, and they recognize it as one of the most important pillars of developing infrastructure and moving forward,” said Arakat.  

He added: “If you look at the mandates of Vision 2030, it really indicates that aviation has a very bright future because it sets some very real targets that the Kingdom is very serious about achieving. We are very proud to be part of that.”  

The executive further noted that Boeing’s relationship with Saudi Arabia spans over seven decades, during which the company has delivered over 240 aircraft to airlines operating in the Kingdom. 

Last year, Riyadh Air, owned by the Public Investment Fund, announced ordering up to 72 Boeing 787-9 Dreamliner airplanes in a significant deal. This included 39 confirmed aircraft and an option for an additional 33 wide-body 787-9 Dreamliners, reflecting Saudi Arabia’s ambitions to establish itself as a prominent player in global aviation. 

National carriers collectively announced plans to purchase up to 121 787 Dreamliners, marking one of Boeing’s largest commercial orders by value.


Maersk latest shipping firm to halt Gulf cargo bookings as Iran conflict pushes up insurance costs 

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Maersk latest shipping firm to halt Gulf cargo bookings as Iran conflict pushes up insurance costs 

JEDDAH: Danish shipping giant Maersk has suspended cargo bookings to and from several Gulf markets in light of the war in Iran, becoming the latest logistics company to reassess its operations in the region.

The firm has halted new business related to the UAE, Kuwait, and Qatar, as well as Iraq, Bahrain, parts of Saudi Arabia and most ports in Oman “until further notice” after a fresh risk assessment.  

In a statement, Maersk added that “exceptions will be made for critical foodstuff, medicine and other essential goods,” and the measure does not apply to Jordan and Lebanon. Two of its vessels are currently in the Gulf.

This comes as Iran’s Revolutionary Guards said on March 5 that passage through the critical transit passage of the Strait of Hormuz would remain under Iranian control during wartime and claimed a US tanker had been hit in the northern Gulf, though there was no immediate independent confirmation of the incident. 

The strait is a critical transit route for roughly 20 percent of global crude oil shipments and significant volumes of liquefied natural gas. 

Khaled Ramadan, an economist and head of the International Center for Strategic Studies in Cairo, said oil and gas transit through Hormuz could fall by as much as 80 percent if tensions intensify, driving up prices and creating shortages. 

“This crisis will also hamper global trade by escalating freight and insurance costs, forcing vessel rerouting, and causing widespread supply chain delays, particularly for oil-dependent economies,” he told Arab News. 

Hapag-Lloyd said on March 5 it would implement contingency procedures for cargo already in transit to and from the Upper Gulf after suspending all shipments to and from the area. 

The company said vessels may be diverted to contingency ports or held in safe waters for shipments linked to the UAE, Saudi Arabia, and Kuwait, as well as Qatar, Bahrain, Iraq, Oman and Yemen. 

Chinese shipping line COSCO Shipping has halted new container bookings to multiple Gulf ports following traffic restrictions in the Strait of Hormuz, while Mediterranean Shipping Co. has announced the end of a voyage. 

In a statement on March 3, MSC said: “In light of the ongoing situation in the Middle East, MSC regrets to inform you that it is compelled to declare an End of Voyage for all shipments currently under MSC’s custody and care, whether located ashore or at sea, and destined for ports in the Arabian Gulf.” 

It added that all shipments already en route will be diverted to the nearest safe port, with a mandatory $800 surcharge per container to cover deviation costs. 

MSC later said Gulf-bound cargo would be offloaded at the closest safe seaport amid ongoing hostilities following US and Israeli attacks on Iran. 

CMA CGM has also introduced emergency measures for Gulf-bound vessels, prioritizing the safety of crews, ships, and cargo. 

APM Terminals Bahrain declared force majeure at Khalifa Bin Salman Port, saying regional security conditions were disrupting port operations and that the duration of the disruption remained uncertain. 

Insurance providers have also reduced Gulf exposure. Reuters reported that Angus Blayney of Gallagher said London insurers were still offering cover, but at sharply higher premiums depending on cargo, vessel type and route. 

Separately, the agency reported that insurance broker Marsh McLennan said it had met US officials to explore ways to restore maritime trade as escalating fighting threatens energy shipments through the Strait of Hormuz.