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Maternity Leave: New Shared Rights Unveiled

Written By Unknown on Jumat, 29 November 2013 | 16.01

By Darren McCaffrey, Sky News Reporter

Fathers will have the option of sharing parental leave under proposals to be announced by Nick Clegg, who has branded the current system antiquated.

The Government has published final details of a significant shake-up which they will hope cater for a growing desire by men to play a more hands-on role in a baby's first months.

From 2015 a fully flexible system of parental leave will be introduced in England, Scotland and Wales which will allow new mothers to trigger flexible leave at any point after the first two weeks' of giving birth.

Mothers and fathers will be able to share the remaining 50 weeks between them as they like by taking the leave in turns, in different blocks, or at the same time.

Reforms will also extend parents' existing right to request flexible working to all employees in an attempt to reflect the increased role of grandparents and other carers.

In an effort to allay fears of the impact on smaller firms, bosses will have to agree any proposed pattern of time off and will retain the right to insist it be confined to a continuous block, with no more than two subsequent changes.

The proposal had met strong resistance within government.

The Liberal Democrats fought to stop last ditch attempts by their Conservative partners to drop the policy.

But father-of-three Mr Clegg said change was long overdue.

"Women deserve the right to pursue their goals and not feel they have to choose between having a successful career or having a baby," he said.

Gloria de Piero Labour's Gloria De Piero claims the plans hold nothing new for parents

"They should be supported by their employers, rather than being made to feel less employable or under pressure to take unchallenging jobs.

"Many businesses already recognise how productive and motivated employees are when they are given the opportunity to work flexibly, helping them retain talent and boost their competitive edge.

"This is good for families, good for business and good for our economy."

The changes, however, have been branded "a nightmare" which would heap more burdens on already-struggling firms by the Institute of Directors (IoD).

Deputy director of policy Alexander Ehmann said: "The IoD understands the case for a system of shared parental leave and how it could help to widen the talent pool available to employers.

"Unfortunately, today's announcements heap yet more burdens on struggling employers at a time when government should be freeing them to create jobs and wealth."

Labour attacked the announcement for providing nothing new to help families struggling with the rising cost of living.

Shadow minister for women and equalities Gloria De Piero said: "Nick Clegg claims to be on parents' side but he and David Cameron have done nothing to support families in the last three years.

"This reheated announcement contains nothing new for families suffering from this government's cost-of-living crisis. It proves you can't trust a word Nick Clegg says."


16.01 | 0 komentar | Read More

Energy Bills: Govt Wants Price Freeze Until 2015

The Energy Secretary has written to the big six energy providers asking them to freeze their prices until after the 2015 general election, according to Sky sources.

The call, barring any big increase in wholesale fuel costs, is to try to avoid another round of price rises that could be blamed on Government green levies, industry sources have said.

Annual bills could be cut by around £50 by the move, it is claimed.

Ed Davey has promised to help firms by introducing changes to the green levies that Prime Minister David Cameron and Chancellor George Osborne have pledged to "roll back".

Ed Davey Energy Secretary Ed Davey is believed to be seeking a deal with firms

He first wrote to the firms last week and followed up his appeals with fresh letters this week.

It is understood the companies have so far given no commitment to his proposal.

Ministers are proposing to change the Energy Company Obligation (ECO) - one of the green levies branded "green crap" by a Tory source last week.

The Government wants to be able to announce a pledge or deal in the Autumn Statement on December 5.

The Department of Energy & Climate Change described the claims as speculation, stating there would be no comment on the issue ahead of next week's statement.

Protesters burn energy bills during a protest against budget cuts and energy prices on Westminster Bridge, central London Bills are burned during a protest this month against prices and budget cuts

The move comes ahead of a speech by Ed Miliband later in which he will pledge to end the energy "rip-off".

The Labour leader is to call for a tough new regulator with powers to order firms to pass on wholesale savings to customers, and intervene in the market to ensure they get good value in the future.

An independent Energy Security Board would be created modelled on the Office for Budget Responsibility, to help draw up and implement a timetable for building energy capacity and ensure the lights stay on.

He will also promise action to boost competition among suppliers, simplify bills for customers and "secure energy which is affordable and available".

Ed Miliband at a TUC protest march in 2012 Labour leader Ed Miliband is to pledge to end the energy "rip-off"

The shake-up - described by Mr Miliband as the biggest since privatisation in the 1980s - would be implemented during the 20-month price freeze he has pledged if Labour wins the general election.

Launching the party's energy green paper at Manchester Town Hall, Mr Miliband will refer to the famous "Tell Sid" campaign advertising British Gas privatisation under Margaret Thatcher.

"In the past three years it has become clear to everyone but this government that the energy market is broken," he is expected to say.

"Prices are rising year on year without justification. And Britain is not getting the investment in energy we need to secure supplies for the future...

"We have a new message for Sid: We will freeze your bills for 20 months. We will reset the market with real competition and proper regulation so that prices are affordable. We will secure the investment we need.

"We will stop you being ripped off and, together, we will power Britain into the next century."

Other commitments include preventing power generation companies doing exclusive deals with their retail arms and ensuring all environmental and policy levies on bills are delivering "value for money".


16.01 | 0 komentar | Read More

Black Friday Bargains Spark Xmas Price War

Black Friday - the US discount shopping event that traditionally follows the Thanksgiving holiday - has gone global with UK shoppers being offered more bargains than ever.

Retailers are promising consumers an early Christmas bonanza as cut-price deals spread across the sector - largely an excuse to boost sales in the run-up to the festive season and shift some older stock.

Some of the biggest names on the high street have slashed prices and it has been reported that some shelves had already been stripped of bargains within half an hour of stores opening.

Online sales are predicted to peak on December 2 - known as Cyber Monday - when Amazon is hoping to beat the 41 items it sold per second last year.

Asda Queues formed outside Walmart-owned Asda stores ahead of opening

Discounts of up to 70% are being reported on some products while retail experts predict sales could top £5bn for a sector which has had to cut prices - and therefore margins - for years amid the squeeze on consumer spending.

John Lewis said customers would be able to save up to 50% on selected small electrical and audio items, up to £200 on selected large appliances and laptops and up to 25% on selected TVs.

Ed Connolly, its buying director, said: "Black Friday has become a huge promotional event in America and we have also seen customers respond well to this day in the UK.

Argos store exterior Argos is also among the big names joining the Black Friday bonanza

"We're really looking forward to sharing incredible deals with our customers on what promises to be a very exciting shopping day."

In a first for Asda, it will mirror the flash sale extravaganza that has been held by parent company Walmart for the past decade.

Asda promised "earth-shattering savings" with deals on electronics, toys and gadgets through to everyday essentials such as batteries, describing Black Friday as "the most dramatic shopping event to ever hit British stores."

Asda's chief merchandising officer Andrew Moore, said: "Last year Walmart reported their best ever Black Friday event with stores in the US serving over 22 million customers in one day.

"We're taking our lead from them and utilising their know-how to help create an offer that means Asda shoppers can benefit from incredible savings at a time when they really need us the most.

"Given these never-been-seen-before deals, we're anticipating ... the busiest shopping day of the year so far, so we would encourage customers to head to store quickly to avoid disappointment, because once stock is gone - it's gone."

Amazon UK managing director Christopher North said: "Since we started Black Friday deals in the UK in 2010, the concept has really caught on and is now a much-anticipated event in the UK shopping calendar.

"Last year we offered millions of pounds off more than 1,000 deals including high-spec coffee machines, signed CDs and Kindle Fire devices.

"This year we'll be releasing twice as many deals to make it easy for customers to save money on this year's must have gifts."


16.01 | 0 komentar | Read More

David Cameron 'U-Turn' Over Cigarette Packaging

Written By Unknown on Kamis, 28 November 2013 | 16.02

By Jon Craig, Chief Political Correspondent

David Cameron is set to be accused of a major U-turn over the introduction of plain packaging of cigarettes.

The Government is poised to announce it is pressing ahead with the measure aimed at making smoking less attractive to youngsters.

Mr Cameron's decision to shelve the measure last July caused an outcry after it emerged his election strategist Lynton Crosby, now employed full time by the Conservatives, is a partner of Crosby Textor, which worked with Philip Morris Ltd as it lobbied the UK government against plain packaging.

That prompted the accusation from Ed Miliband in the Commons: "He is the Prime Minister for Benson and Hedge funds, and he knows it.

Australia cigarette packaging Australia already uses plain packets which just show health warnings

"Can he not see that there is a devastating conflict of interest between having a key adviser raking it in from big tobacco and then advising him not to go ahead with plain packaging?"

Campaigners for plain packaging feared a pause on consultation in July had effectively ruled out any prospect of its introduction until after the next election, while lobbyists for the tobacco industry were confident of having defeated the proposal.

Now Earl Howe, the health minister, is to introduce an amendment to the Children and Families Bill in the House of Lords, possibly as early as next week, to give the Government enabling powers to introduce plain packaging.

At the same time the Government will announce another review of what has happened in Australia to report back next March. Its findings are expected to strongly back the case for plain packaging.

One of the most recent studies from the country, the first in the world to ban branded cigarettes cartons, found that those using cigarettes sold in standardised plain brown cartons were 81% more likely to consider quitting.

A Government source told The Times: "This will nail Labour's ridiculous smears. Now the pressure will be on Labour to get behind this amendment to enable the introduction of standardised packaging."

David Cameron speaks at the annual CBI conference in central LondonLynton Crosby The PM was accused of pandering to his election strategist Lynton Crosby

Luciana Berger MP, Labour's shadow public health minister, said: "We need immediate legislation for standard cigarette packaging, not another review. The Government needs to stand up to the tobacco industry's vested interests.

"The evidence to support standardised packaging is clear. The consensus is overwhelming. We don't need any further delay while 570 children are lighting up for the first time every day."


16.02 | 0 komentar | Read More

Student Loans: £5bn Unaccounted For Says NAO

More than £5bn paid out in student loans is unaccounted for because the Government does not have enough information about the recipients.

There are 368,000 student borrowers for whom there is no current employment record, or other details on earnings, according to a study by spending watchdog the National Audit Office (NAO).

This could be because they are unemployed students living in the UK, EU students who have returned home or UK students who have moved overseas.

It means the Government does not have enough information to decide whether these students should be making repayments on their loans, and if so, how much.

The NAO report claims the Business Department (BIS) is not doing enough to find out whether borrowers are earning enough to start repayments.

Students currently repay their loans when they earn £21,000, and repayments are linked to earnings.

It also says there are around 14,000 former students, with a total debt of £100m, living overseas who are behind on their repayments.

The Student Loans Company, which helps collect the payments, could take a "more targeted approach" to this group, says the NAO.

Earlier this week, the Government sold off older student loans totalling nearly £900m to a private debt collection agency for £160m.

Universities minister David Willetts called the sale "good value for money" and said it would help reduce public sector debt.

More than a third (35%) of new loans taken out are not expected to be repaid, according to Government figures, and around half of students are not expected to repay their debt fully.

Under a major overhaul of higher education, which saw tuition fees at English universities treble to a maximum of £9,000, student loans are now written off after 30 years.

A BIS spokesman said: "We are continually improving the collection process for borrowers and we will carefully consider the NAO's recommendations as part of this programme."

Shadow Higher Education Minister Liam Byrne said: "Labour has warned ministers time and time again that tripling fees overnight would create huge new debts that lots of students, facing a cost-of-living crisis, couldn't afford to pay back.

"Worse of all, we may be at the point where so many students loans are being written off, that the government's new student finance system is actually more expensive than the old arrangements, even though the government is asking students for three times as much money."


16.02 | 0 komentar | Read More

Thomas Cook Turnaround Delivers Profit

Shares in Thomas Cook soared 11% on opening after it confirmed a return to profit amid a massive turnaround plan.

The world's oldest travel firm made an operating profit for the first time since 2010 - of £13m while total losses before tax fell to £158m at the travel group in the year to the end of September, compared to £337m in the previous 12 months.

Earlier this year the company announced plans to axe 2,500 jobs in Britain as part of its turnaround efforts after a £1.6bn recapitalisation in 2011.

Thomas Cook, which has been plagued by the eurozone debt crisis, unrest in Egypt and high fuel costs, closed 227 stores in the UK over the past 12 months - more than a fifth of the total - and cut the number of brands it operates from 85 to 30.

The travel business is also selling off stakes in its airline and NATS, the air traffic control service, as well as outsourcing its tour business which it says will raise £61m.

Chief Executive Harriet Green said: "I am delighted to report that the first 365 days in the transformation of Thomas Cook have been a great success.

"We've taken out more cost more quickly than originally planned," she added.

She took over the business in July 2012 - with no experience of the industry - but convinced she could turn around the world's oldest travel business.

In the last 12 months, she has presided over a £649% increase in the company's share price as investors welcome her plans to restore profitability.

While the underlying business is back in the black, there remain pressures on Thomas Cook and its rivals from the effects of the consumer spending squeeze.

Thomas Cook warned today: "Compared to last year, (current) winter bookings have been adversely impacted by social unrest in Egypt, which has resulted in significantly reduced demand to that destination."

UK winter bookings were 7% lower than the previous year, it said.


16.02 | 0 komentar | Read More

Cable Faces Scrutiny Over £4m Royal Mail Bonus

Written By Unknown on Rabu, 27 November 2013 | 16.01

By Mark Kleinman, City Editor

Vince Cable, the Business Secretary, will come under pressure on Wednesday to cancel a £4m bonus fee for investment bankers as MPs step up their scrutiny of Royal Mail's controversial £3.3bn privatisation.

Sky News has learnt that members of the Business, Innovation and Skills (BIS) Select Committee will demand that Mr Cable abandon any prospect of the Government's advisers receiving the money despite his belief that the surge in Royal Mail's share price reflects "frothy" investor demand.

Mr Cable is braced for a stormy session, which will be his second attempt to justify to the Committee the 330p-a-share price at which 60% of Royal Mail's shares were sold last month.

The seven banks which worked on the privatisation have received around £12m in fees for their work to date, with a further £4.2m payable at Mr Cable's discretion.

Aides to the Business Secretary insist that he will not make a decision about paying them for several months, although they point out that the decision to award them is to be based on a series of pre-determined criteria, such as the success of the share offer, the level of demand generated by the banks for the stock, and the quality of investors' feedback.

Such factors are common in deciding fees to flotation advisers, but they have become contentious in Royal Mail's case because of the allegation that the 330p pricing significantly undervalued the company and deprived the taxpayer of hundreds of millions of pounds.

One insider pointed out that some of the criteria listed in the privatisation prospectus for awarding the discretionary fees were ambiguous, including the final price achieved for the offer and the aftermarket performance of the shares.

"The aftermarket performance has been spectacular but all that has done is embarrassed (Mr) Cable," said a banker who worked on the deal. "The criteria are there for a reason but he'll be crucified if he awards the bonus."

Mr Cable was not questioned about the discretionary element of the fee pool when he appeared before the Committee last month and is expected to say on Wednesday that a decision will not be made for some time.

However, a person close to him described it as "inconceivable that a sensible Secretary of State would feel able to hand bankers millions of pounds in this way".

He may also be questioned over a disclosure in the annual report of the Shareholder Executive (ShEx), the department of BIS responsible for the sale, that Royal Mail's value had increased "as expected" with the injection of private capital into the company.

MPs are likely to ask why Mr Cable decided not to increase the sale level if they expected the share price to increase, as indicated by the ShEx annual report. Advisers to the Government said last week that they had considered raising the price but were deterred from doing so by a hostile reaction from institutions.

Adrian Bailey, chairman of the BIS Select Committee, told Sky News this week: "If the price was expected to go up, why did the Government not increase the sale price during its last-minute deliberations?"

A spokesman for BIS said: "We always made clear that the Government would retain a stake in Royal Mail so that the taxpayer could benefit from any increase in the company's value following private sector involvement. We have retained a 30% stake which represents good value for money for the taxpayer."

Mr Cable will appear before the BIS Committee alongside Michael Fallon, the Business Minister; Mark Russell, chief executive of ShEx; and William Rucker, chief executive of Lazard, the independent adviser to the Government.

Royal Mail will announce its maiden results as a public company on Wednesday, just hours before the Committee hearing. Last week, the MPs heard from a number of investment banks, some of which did not work on the privatisation but which pitched valuations of more than £9.5bn for Royal Mail.


16.01 | 0 komentar | Read More

'Nine Million In Severe Debt' Must Get Help

Fewer than 20% of the nine million people trapped in a severe debt spiral are getting any help to break free, according to a shocking study by a Government-backed body.

Research by the Money Advice Service (MAS) found 8.8 million people are "over-indebted", meaning they have fallen at least three months behind with their bills in the last six months or they feel their debts are a heavy burden.

But just 17% of this group said they were getting advice to help them deal with their debt, while around 40% said they did not feel able to talk to their creditors and 44% did not know where to turn for help.

The research, from more than 5,000 people, found 21% of those classed as over-indebted, equating to 1.8 million people across the UK, did not recognise that they had a problem.

A further 11% were not concerned about being in debt, the Indebted Lives study concluded.

Just 12% of over-indebted people said they were thinking about trying to get help soon.

The report also identified the UK's five most over-indebted areas as Hull, Nottingham, Manchester, Knowsley and Liverpool.

Around two-fifths of adults in these areas were struggling with debt, according to the research.

At the other end of the scale, Richmond upon Thames in southwest London had just 1.2% of its population struggling with debt.

The study said 75% of those with severe debt problems were under 45 years old and nearly two-thirds of them were women, while 48% had to forego basic necessities.

The MAS, which is an independent body set up by Government and funded by the financial services industry, offers free money advice and has statutory responsibility for coordinating debt advice in the UK.

Its chief executive Caroline Rookes said: "Millions of people could escape their spiral of debt by accessing free advice.

"However, this study presents us with a fundamental challenge: the majority of people with debt difficulties do not seek advice.

"This is the first time we've had such a detailed understanding of the complexity of their lives. So now, armed with greater insights, we will work with advice agencies, creditors and public bodies to help as many people as possible access free, high-quality, debt advice."

:: People in worsening debt are advised to get free charity advice as soon as possible - the Money Advice Service website can help.


16.01 | 0 komentar | Read More

Royal Mail Reports £283m First Half Profits

Royal Mail has reported a near-doubling of operating profits to £283m for the first half of its financial year amid its controversial privatisation.

In the wake of the sale of the 60% stake - which remains gripped by suggestions the taxpayer was short-changed - the newly privatised firm said rising parcel revenue and continuing cost cutting was mainly responsible for the performance.

The operating profit for the six months to September 29 was 96.5% ahead of the £144m posted in the same period a year ago, helped also by a one-off VAT credit of £35m and lower than expected transformation costs in the half.

The group said it still intended to propose a final dividend of £133m for the full-year in the wake of the £3.3bn flotation which resulted accusations the Government sold off its stake on the cheap following a surge in the share price.

Royal Mail Staff Mount Pleasant Only a few hundred staff chose not to take up their share option

Sky News reported on Tuesday that the Business Secretary Vince Cable will come under pressure from MPs on Wednesday to cancel a £4m bonus fee for investment bankers who led the Initial Public Offering.

Members of the Business, Innovation and Skills (BIS) Select Committee will demand that Mr Cable abandon any prospect of the Government's advisers receiving the money despite his belief that the share surge reflected "frothy" investor demand.

The share price - which has risen by as much as 80% since the flotation - rose more than 2% on opening on the London Stock Exchange on Wednesday following the release of the results.

Vince Cable at the Lib Dem conference Vince Cable has defended the sale from accusations it was undervalued

Like-for-like revenue grew 2% in the period to £4.52bn as online shopping fuelled parcel sales, which account for 51% of the group.

But it admitted the risk of industrial action was seeing business customers switch to rivals in its parcel arm, which it said could see sales volumes remain broadly flat in the nine months to the end of December.

Royal Mail and the Communication Workers Union extended a deadline for an agreement on pay and working conditions until December 3 on Tuesday, with the CWU confident of achieving a deal.


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Former Co-op Chairman Released On Police Bail

Written By Unknown on Minggu, 24 November 2013 | 16.02

Chancellor George Osborne has announced plans for an independent inquiry into the Co-operative Bank's near collapse, as its former chairman was released by police.

The review uses new powers under the Financial Services Act and follows calls from Prime Minister David Cameron for an inquiry into the bank's ailing finances and the decision to appoint Paul Flowers as chairman.

It will add to an investigation being considered by the Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA), following the regulators' talks with Bank of England governor Mark Carney on Friday.

George Osborne Mr Osborne announced the review

The Co-op faces a rescue which will see 50 branches close and investors including US hedge funds take control of 70% of the business.

The Treasury-led inquiry will look into mistakes made in the run-up to the Co-op Bank's woes and the £1.5bn black hole in its finances, dating back to at least 2008.

The Treasury said it will investigate actions of the regulators and government in relation to the issues at the bank.

It will also cover the Co-op's takeover of Britannia Building Society at the height of the banking crisis, as well as appointment procedures in light of the scandal surrounding Mr Flowers.

Since Mr Flowers stepped down in June, questions have been asked about his competence in the role.

The 63-year-old Methodist minister was arrested by West Yorkshire Police on Thursday night in Merseyside.

He has been held in connection with an "an ongoing drug supply investigation", police said.

Mr Flowers has been questioned all day by police, and was released on Friday evening.

Asked how Mr Flowers was feeling, his solicitor Andy Hollas said: "I think a rather ponderous frame of mind - I think anyone in his situation would be."

Mr Hollas added: "He's not necessarily guilty of anything, he's not been charged with anything."

Paul Flowers resignation Mr Flowers resigned as Co-op chairman in June

Mr Flowers was suspended by both the church and the Labour Party following newspaper allegations that he bought and used illegal drugs.

The Treasury's inquiry will not start until the outcome of criminal investigations into Mr Flowers, or it is clear proceedings will not be prejudiced.

As with the recent review into Royal Bank of Scotland, the probe will be independently chaired, which is seen as vital by the Treasury Select Committee because the role of the regulators will also come under scrutiny.

The FCA said it "fully agrees" the investigation should be led by an independent person.

The Co-op is already at the centre of a barrage of investigations, with the group being grilled by MPs on the Treasury Select Committee into the bank's failed Project Verde bid for 632 Lloyds Banking Group branches.

Sky News has learned that the former Bank of England governor, Lord King, warned of a "political desire" for the Co-op to buy the branches.

It also emerged earlier that the Co-op is seeking to recover £31,000 paid to Mr Flowers since he quit his £132,000-a-year post in June.


16.02 | 0 komentar | Read More

Cable Refers RBS To City Watchdog Over SMEs

By Mark Kleinman, City Editor

Business Secretary Vince Cable has referred the state-backed Royal Bank of Scotland (RBS) to the City regulator amid renewed allegations over its treatment of struggling business customers.

Sky News understands that Mr Cable has passed to the Financial Conduct Authority (FCA) a dossier of evidence compiled by Lawrence Tomlinson, a businessman who also advises the Department for Business, Innovation and Skills (BIS).

Among a string of claims made by Mr Tomlinson, according to people familiar with the dossier, is that RBS has engineered the transfer of a significant number of business customers into a specialist division in order to profit from the higher fees it can charge.

Run by veteran executive Derek Sach, the global restructuring group (GRG) is the division of RBS which manages the bank's problem loans.

Since the financial crisis led to it being rescued by taxpayers in 2008, RBS has become one of the biggest property owners in Britain through West Register, another arm of the bank.

Mr Tomlinson, who works for the Government under the title entrepreneur-in-residence, is said to have uncovered evidence that the taxpayer-backed bank sought to exploit distressed small business customers by accelerating their move into the unit.

The more intensive supervision of companies when they enter the work-out groups of banks - when, for example, they are in danger of breaching borrowing agreements - results in them being charged higher fees.

Mr Tomlinson is also understood to repeat an earlier criticism that banks such as RBS frequently appoint favoured accountancy firms to oversee the work-out process, resulting in the outcome desired by the lender but which sometimes entails companies being placed in administration.

RBS has already said that it will investigate the activities of the GRG division in response to a highly critical report on its SME lending practices published earlier this month by Sir Andrew Large, the former deputy governor of the Bank of England.

It is unclear whether the alleged misbehaviour by RBS amounted to a formal breach of the City regulator's rulebook.

RBS and a spokeswoman for Mr Cable declined to comment.

Mr Tomlinson could not be reached for comment on Saturday.


16.02 | 0 komentar | Read More

Dreamliner Warning After Plane Engines Ice Up

Boeing has warned airlines to avoid flying some Dreamliner planes near high-level thunderstorms due to a risk of engine icing problems.

The warning applies to 15 carriers who have 747-8 and 787 Dreamliners with engines made by General Electric (GE).

It is the latest alert for an aircraft which has suffered a number of technical glitches since its launch, including overheating lithium-ion battery systems that caused the planes to be grounded worldwide for three months earlier this year.

The engine warning follows six incidents between April and November involving five 747-8s and one 787, all of which suffered temporary loss of thrust while flying at high altitude.

The problem was caused by a build-up of ice crystals, initially just behind the front fan, which ran through the engine, a GE spokesman said.

All of the aircraft landed at their planned destinations safely, he added.

Boeing has prohibited the affected aircraft from flying at high attitude within 50 nautical miles of thunderstorms that may contain ice crystals.

In response, Japan Airlines (JAL) pulled 787 Dreamliners from two international routes.

Other affected airlines include Lufthansa, United Airlines, an arm of United Continental Holdings and Cathay Pacific Airlines.

A Boeing spokesman said: "Boeing and JAL share a commitment to the safety of passengers and crews on board our airplanes. We respect JAL's decision to suspend some 787 service on specific routes."

JAL said it will replace Dreamliners on its Tokyo-Delhi and Tokyo-Singapore flights with other types of aircraft.

It also dropped plans to introduce 787s to its Tokyo-Sydney route from December.

The company will continue to fly the aircraft on other international and domestic routes, which are unlikely to be affected by cumulonimbus clouds for the time being.

A spokesman for GE, which is working with Boeing on software modifications to the engine control system in a bid to eliminate the problems, said: "The aviation industry is experiencing a growing number of ice-crystal icing encounters in recent years as the population of large commercial airliners has grown, particularly in tropical regions of the world."

All 747-8s are powered by GE's GEnx engines, while 787s are powered either by GE units or the rival Trent 1000 made by Rolls-Royce.


16.02 | 0 komentar | Read More
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