Boeing Dreamliners Grounded By Japan Airlines

Boeing 787 Dreamliner Timeline

Updated: 4:05am UK, Wednesday 16 January 2013

The turbulent history of the Boeing 787 Dreamliner:

Jan 16, 2013: Japan Air Lines Co Ltd (JAL) follows suit and suspends Dreamliner flights from Japan over safety concerns

Jan 16, 2013: ANA grounds all 17 of its 787s after four of its aircraft suffer problems

Jan 16, 2013: ANA 787 Dreamliner makes emergency landing in Takamatsu, Japan, after smoke appears in cabin

Jan 11, 2013: The Federal Aviation Authority announces a review of the 787 design and systems

Jan 11, 2013: All Nippon Airways (ANA) discovers engine oil leak after a domestic flight lands at Miyazaki

Jan 11, 2013: A separate ANA flight to Matsuyama reported a crack appearing in the pilot's window

Jan 9, 2013: ANA cancels a Boeing 787 Dreamliner flight due to a brake problem

Jan 8, 2013: Japan Air Lines (JAL) grounds a jet at Boston Logan International Airport after a 787 leaks 150 litres of fuel

Jan 7, 2013: A fire erupts in a battery pack in another JAL Dreamliner at Boston

Dec 13, 2012: Qatar Airways grounds one of its Dreamliners because of a faulty generator

Dec 5, 2012: The Federal Aviation Administration orders inspections of all 787 Dreamliners in service in the US

Dec 4, 2012: A United Airlines 787 is forced to make an emergency landing in New Orleans after a generator fails

July 23, 2012: ANA grounds five Dreamliners due to an engine component issue

February 22, 2012: Boeing says around 55 Dreamliners may be affected by a flaw in the fuselage

October 26, 2011: The Dreamliner makes its maiden flight with paying passengers on board an ANA jet

September 26, 2011: Boeing delivers its first 787 Dreamliner to Japan's ANA, three years late

June 23, 2010: Boeing postpones the first flight of the Dreamliner because of a structural flaw

December 15, 2009: The passenger jet 787 Dreamliner takes off on its maiden test flight

April 9, 2008: Boeing says there will be a revised plan for the first 787 flight and initial deliveries

December 11, 2008: Boeing announces further delays due to strike action by machinists Sept-Nov

October 19, 2007: Boeing says there will be a six-month delay to deliveries due to assembly issues

July 8, 2007: The first assembled 787 goes on display to media, employees and customers

July 18, 2006: Boeing says it is making "solid progress" on the 787 Dreamliner programme

January 28, 2005: Boeing gives its new commercial airplane an official model designation number - 787

January 29, 2003: Boeing announces the launch of a new aircraft called the 7E7

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Car Crisis: Demand Crashes Across Europe

European car registrations fell by over 8% in 2012 according to official figures, as the crisis for carmakers in the region shows no sign of slowing.

Over the last year, demand for new vehicles reached its lowest level recorded since 1995, with sales falling in most major markets.

A total of just over 12 million units were registered in 2012, the European automotive industry association ACEA said.

In December, new car sales declined by 16% in the European Union - the steepest monthly slip since 2008.

Two fewer working days on average helped send registrations tumbling by over 14% in France, 16% in Germany and more than 20% in both Italy and Spain.

Greece – where the eurozone's debt crisis originated – saw one of the steepest falls in new car sales at 33%.

It comes as tough austerity measures and record-high jobless figures in the eurozone hit consumers' ability to purchase new cars.

The UK continued to be the only significant market to see an increase in new car sales, which were up by 3.7% last month.

Recently released figures showed car registrations in Britain were at a four-year high in 2012 - but still around 50% below pre-financial crash volumes.

Carmakers worst hit by last month's slump were the US' General Motors and Ford, which both saw sales fall around 27%.

But Korea's Hyundai and Kia - which offer affordable cars with long warranties - reported an increase in registrations of 10.5% and 6.8% respectively.

French company Renault saw a slump of 19% a day after it announced plans to cut 7,500 jobs by 2016.

The redundancies - which the carmaker said was in response to falling demand - make up 14% of Renault's French staff.

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HMV Collapse: Interest In Buying Retailer

The administrator for collapsed HMV has already had 'very positive' expressions of interest in the iconic entertainment retailer.

Deloitte, formally appointed on Tuesday evening, told Sky News a few parties had made contact in the wake of the chain's demise.

While all 223 UK stores are continuing to trade, the administrator confirmed its review of the business was continuing and there was no prospect of the company's decision to stop accepting gift cards or vouchers being overturned.

However the 'blue cross sale', which began last weekend, would remain in place.

In its initial statement last night confirming it was now running HMV, Deloitte said it was actively seeking a buyer.

Nick Edwards, Joint Administrator and restructuring services partner at Deloitte, said: "HMV is an iconic retailer and continues to be a very popular brand, but as we have seen with many high street retailers, the market is changing rapidly and conditions are currently very tough.

"Following our appointment, we are working closely with management and staff to stabilise the business in order to continue trading whilst actively seeking a purchaser for the business and assets. We appreciate the cooperation and support from the staff, customers, suppliers and landlords at what is clearly a difficult time."

HMV employs 4,123 staff and analysts say it is inevitable that some will lose their jobs, even if the chain is bought out.

The retailer had long been criticised for an over-exposure to the high street and its late move into online. The consumer spending squeeze only exacerbated the shift in shopping habits and it missed the terms of its bank loans as a result.

Nevertheless Trevor Moore, the group's chief executive, told Sky News on Tuesday afternoon that he was "absolutely confident" about the future of HMV but added: "It does require a number of significant changes in the business, and those changes we're very clear about."

He said: "We would hope to find a prospective buyer that could work with us to enable me to deliver those changes and ensure that HMV - which is one of the consumer's 10 most favourite stores in the UK, remains on the high streets that we operate in."

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Last-Minute Christmas Shopping Boosts Burberry

Burberry reports a rise in revenue of almost 10% as its wealthiest customers continue to spend despite the economic downturn.

The luxury brand said revenue was £613m in the three months to December 31 - up 9% on an underlying basis.

Comparable sales rose 6% at the 157-year-old retailer, driven by the popularity of its iconic trench coat and accessories.

But wholesale revenue at Burberry fell an underlying 5% as a result of lower sales to some accounts across Europe.

The company's chief executive Angela Ahrendts said it had benefited from a "particularly strong week" in the run up to Christmas.

"In an otherwise difficult quarter, core outerwear, men's and digital all outperformed," she said.

The pre-Christmas rush also helped online grocer Ocado's performance

"We expect the external global environment to remain challenging, but see continued opportunities to drive productivity in our existing business, while investing for growth in under-penetrated regions, product categories, channels and mediums."

Burberry, which has over 200 stores across the world, said sales growth remained low across America and Europe – but was especially weak in Italy.

The brand's popularity in Hong Kong and China helped boost sales growth in Asia, with saw double-digit growth.

Meanwhile, online grocer Ocado also reported strong Christmas trading.

Total sales in the six weeks to January 6 were up over 14% to £91.6m - and were 17% higher in the week before Christmas.

Tim Steiner, chief executive of Ocado, said it had been "a very good festive season" for the company. 

"We are pleased to have helped record numbers of customers enjoy Christmas without the stresses and strains of visiting a physical supermarket," he said.

"Christmas has amplified the fact that shopping online for groceries is of increasing importance for consumers."

"In 2013, we will substantially increase our capacity with the opening of our second fulfilment centre, and so we hope to make it possible for many more customers to escape crowded aisles, checkouts and car parks."  

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BBA Targets Body To Strike Off Rogue Bankers

By Mark Kleinman, City Editor

A tough new code of conduct for bank employees and an independent body that would have powers to ban rogue bankers are among a series of tough measures proposed to restore public trust in the beleaguered industry.

I have obtained a copy of a submission made by the British Bankers' Association (BBA) to the Parliamentary Commission on Banking Standards, which was set up in the wake of the Libor rate-rigging scandal last summer.

The creation of a Banking Standards Review Council, which would be underpinned by statutory or regulatory support, is one of a series of options presented by the lobbying group.

In its submission, the BBA suggests as a starting point that reforms should look at strengthening the existing infrastructure, which would involve extensive co-operation with the Financial Conduct Authority (FCA), the new regulator that will become operational later this year.

The current system is focused on an Approved Persons Regime, which the BBA argues could be strengthened by ensuring that all banking sector roles with significant responsibility for risk or customer-facing activity would be covered. This would include anyone with a wholesale markets function, such as employees who help to set Libor benchmark rates.

The BBA says that "setting up a 'register of bankers' that individuals could be removed from or some sort of 'blacklisting' [may be necessary] with the aim of preventing an individual from working in the banking sector (and perhaps all of financial services)".

The BBA assesses two main options for an entirely new system: one would represent a "top-down approach [focused] on organisations as a whole and seeks to raise standards by requiring them to take steps to improve the oversight, monitoring and control of employees". This approach would be overseen externally by a body which the BBA proposes to call the Banking Standards Review Council.

That new organisation, the BBA suggests, "would need to be independent of the industry - by which we mean an independent non-banking chairman and a majority of non‐banking members, including customers of banking services and the public interest, but with industry support and input".

As well as overseeing bankers' behaviour, it could also operate a whistle-blowing system for bank employees.

Employees of both UK and overseas banks would have to adhere to a code that would be modelled on the Lord George Principles of Business Conduct, which include a duty "to act honestly and fairly at all times when dealing with clients, customers and counterparties and to be a good steward of their interests".

But, the lobby group warns, the creation of a new body could effectively mean moving to a "three peaks" regulatory system which duplicated the existing regime and risked causing "unnecessary and confusing complexity".

The BBA also highlights in its submission a "bottom-up approach...focused on professional standards [of] the individuals operating within the industry and seeks to raise their technical competencies and ethical standards. This approach is a feature of other professions, including the medical, legal and accounting sectors".

It could involve establishing a Professional Standards Board and could be "separate to the potential Banking Standards Review Council envisaged under the 'top-down' approach, or be one and the same".

Anthony Browne, the BBA's Chief Executive, is due to appear before the Parliamentary Commission later on Monday, where he is expected to discuss the options contained in the lobbying group's submission.

The options were formulated by a taskforce involving major UK banks including Barclays and Royal Bank of Scotland, along with two European banks and one American lender which are among the BBA members. KPMG, the professional services firm, was also involved.

As Sky News revealed last week, the chairmen of the six British-based banks have met to discuss the proposals, about which they did not reach a unanimous view. Hinting at the level of debate between them, the BBA submission admits that "it may be that the answer to strengthening ethical and professional standards lies in large part with the new regulator".

Some of the bank chairmen have argued during private discussions that they should wait until the FCA has outlined its approach to tackling banking standards-related issues before establishing a new body, while others believe a new organisation should be set up as soon as possible.

People familiar with the BBA's submission said it had decided to present the pros and cons of each proposal because it did not want to appear to be prescriptive at a time when the group has been discredited by its role as the overseer of the Libor-setting process.

"There was a feeling that a single option proposed by the BBA would be discounted by the Parliamentary Commission because of the difficult time the BBA is having at the moment," said one person familiar with the submission process.

The BBA said that tough new oversight of bankers' behaviour would not necessarily deter banks from investing in the UK.

"A well-formulated proportionate approach to any Code and Council should, in fact, enhance the attractiveness of the UK as a place to do business.

"If the application of the Code raised standards of professional conduct and enhanced trust it should attract companies, capital and clients to the market. In this respect, parallels can be drawn with the UK law and judicial system, which draws people to London by virtue of the confidence in which it is held," its submission says.

The BBA declined to comment further ahead of Mr Browne's evidence session.

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HMV Collapse: Gift Cards And Vouchers Invalid

HMV has confirmed it will not be accepting gift cards or vouchers from customers as the retailer prepared to collapse into administration.

The company confirmed its intentions following a board meeting last night, as exclusively revealed by Sky's City Editor Mark Kleinman.

In its statement, HMV - which employs 4,350 people - said its 238 stores would remain open while administrators Deloitte sought a buyer.

It added that trading in HMV's ordinary shares had ceased.

The statement said: "On 13 December 2012, the Company announced that as a result of current market trading conditions, the Company faced material uncertainties and that it was probable that the Group would not comply with its banking covenants at the end of January 2013.

HMV was late to the online shopping revolution and suffered as a result

"The Company also stated that it was in discussions with its banks. "Since that date, the Company has continued the discussions with its banks and other key stakeholders to remedy the imminent covenant breach.

"However, the Board regrets to announce that it has been unable to reach a position where it feels able to continue to trade outside of insolvency protection, and in the circumstances therefore intends to file notice to appoint administrators to the Company and certain of its subsidiaries with immediate effect.

"The Directors of the Company understand that it is the intention of the administrators, once appointed, to continue to trade whilst they seek a purchaser for the business."

"It is proposed that Nick Edwards, Neville Kahn and Rob Harding, partners of Deloitte LLP, will be appointed as the administrators of the Company and certain of its subsidiaries.

HMV, which has struggled for several years in the face of online competition, had announced last week an additional sale at its stores in a last ditch effort to raise cash but its £176.1m debt pile was too great for the move to have much impact.

Last year the company sold off its most profitable arm, its live music business, as it attempted to slash what it owed.

In January 2011 suppliers including Universal Music came to HMV's rescue with a deal which helped the retailer shed some of its debt but they are understood to have dismissed requests for more financial help earlier this month.

Analysts suggest the business model was already doomed - squeezed by internet retailers and supermarkets whose scale enable them to offer CDs and DVDs at cheaper prices.

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Jessops: Camera Chain Closing All Stores

Camera retailer Jessops is clearing stock from its stores after administrators announced it was unable to continue trading.

PricewaterhouseCoopers (PwC), which was appointed to the group on Wednesday, has begun the process of shutting the firm's entire network of 187 stores with the loss of 1,370 jobs

The administrators said further job losses are likely at the group's head office in Leicester.

Jessops is the first high-profile retail casualty of 2013, after suffering from online competition and a boom in camera phones in recent years hitting demand for digital cameras.

Administrator Rob Hunt said PwC had held "extensive discussions" with suppliers, but it was apparent that Jessops could not continue to trade.

A sign on the door of a Jessops shop in Birmingham

He said stock would be collected from the shops and taken to a warehouse, where it would be returned to suppliers.

As a result of the closure of the shops, Mr Hunt added that customers would not be able to return products.

Jessops was forced to call in the administrators this week after talks between the company and its lender and suppliers broke down following a poor Christmas.

Jessops had struggled since 2007, when it underwent a major overhaul with a swathe of store closures.

It came close to collapse two years later, before being rescued by its main lender HSBC in a controversial debt-for-equity swap that saw it taken off the stock market.

The camera giant's collapse comes after consumer electricals chain Comet hit the wall last year, sparking more than 6,000 job losses.

There was speculation that suppliers such as Canon were considering injecting cash into Jessops last year to help prop the business up, but no deal materialised.

The group last year also suffered the loss of its chief executive Trevor Moore, who left to head up HMV, as well as its chairman David Adams.

Martyn Everett was then appointed as chairman and Neil Old was promoted to lead the business as chief operating officer.

The firm began life in 1935 when Frank Jessop opened his first shop in Leicester.

Mr Hunt added that it was "an extremely sad day for Jessops and its employees".

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David Cameron Faces Party Battle Over Europe

David Cameron is facing a challenge to hold his party together as battle lines are drawn over Europe.

With just over a week until the Prime Minister's key speech on Britain's relationship with the EU, Tory Europhiles have launched a fight-back against demands for an in-out referendum.

Cabinet minister Ken Clarke will share a platform with Labour peer Lord Mandelson later this month to stress the benefits of remaining in the union.

The move comes after fellow Conservative Lord Heseltine warned that the economy would suffer if Mr Cameron took a "punt" and committed to a national poll on membership.

Around 20 Tory MPs have also apparently signed a letter, due to be published this week, warning of "massive damage" if the UK leaves the EU.

Rumours have been circulating that Downing Street has given tacit approval to efforts to highlight the dangers of an exit.

In an unusual intervention last week, senior US diplomat Philip Gordon openly stated that America wanted Britain to remain in the EU.

Prominent business figures including Sir Richard Branson and PR guru Roland Rudd have also spoken out about the potentially dire consequences of severing ties.

Sources told the Mail on Sunday (MoS) that Mr Cameron believes it is "mad" to think that Britain can go it alone.

Michael Heseltine says the economy will suffer if a referendum is called

And Tory backbencher Robert Buckland, who has organised the pro-membership letter, said he had been informed that Number 10 regarded his efforts as "helpful".

"There is a silent majority out there who do not want Britain to leave the EU," he told the MoS.

"The danger for the Tories is that because the right-wing Eurosceptics are making the most noise, we could slide towards the exit door of the EU."

Mr Buckland added: "I have been told No 10 views my efforts as being helpful. The Prime Minister is a Eurorealist. He wants us to stay in the EU while having a debate about the terms of our membership, but it must not be used as a Trojan horse to get us to leave."

According to the Observer, Mr Clarke and Lord Mandelson are spearheading a new organisation, the Centre for British Influence through Europe.

The group, due to launch at the end of the month, will apparently support a cross-party "patriotic fightback for British leadership in Europe".

However, Tory Eurosceptics are determined to maintain pressure on Mr Cameron, buoyed by Chancellor George Osborne's recent comments that the UK can only stay in the EU if it changes.

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Insurers To Claw Back Cost Of UK Floods

By Isabel Webster, West Of England Correspondent

The clean-up from the 2012 floods is expected to cost insurers over £1bn and push premiums up for a fourth consecutive year.

Eight thousand properties were flooded last year, according to the Environment Agency, as flooding remains Britain's greatest risk.

Residents and business owners in the town of Braunton in Devon experienced flash floods in the days before Christmas.

Pub landlord Mark Ridge, from the London Inn, is expecting to claim in excess of £160,000.

He had initially thought the damage could be repaired in a fortnight but has now been told he will have to close until Easter.

"It soon became apparent that it was a rip-out job, strip the whole pub, and get the insurances involved," said Mr Ridge.

The flood-damaged London Inn in Braunton

"That's everything from the buildings, to contents, stock, loss of earnings, staff wages have to be claimed for as well. All of which we have to pay for first and then claim back - so it's not an easy task."

Four of the top five wettest years on record have been since the year 2000 which is putting pressure on the Government and insurers to renew their 10-year deal to provide universal cover for all homes, including those in flood prone areas.

Mohammad Khan, a partner at PricewaterhouseCoopers (PwC), said: "The weather events of 2012 have dented insurers' profits and will probably lead to renewal premiums rising by up to 5% for those unaffected by the floods and by up to 50% for those flooded.

"The UK floods therefore, have also brought into sharp focus the current standoff between the insurance industry and the Government on the renewal of the Flood Principles - agreement needs to be reached in 2013."

The negotiations over continued cover from insurers, in return from assurances from the Government including the managing of flood risks and robust planning controls, will continue until June.

Last year's flooding is expected to push up insurance premiums

Matt Cullen, from the Association of British Insurers, warned: "We've calculated following some extensive research that if we don't reach agreement with the Government over what replaces the Statement of Principles then around 200,000 homes in flood-proned areas could struggle to access cover."

But the Government has played down the likelihood of such a situation.

A Defra spokesperson said: "We want to find a lasting solution that secures the affordability and availability of flood insurance for the first time, without placing unsustainable costs on wider policyholders or taxpayers.

"Our primary role is to prevent flooding in the first place. We are on course to spend £2.3bn on preventing flooding and coastal erosion over this four-year period."

PwC said it estimates the cost of the floods to the insurance industry in 2012 to now add up to around £1bn.

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Dreamliner Safety And Design Review Ordered

America's aviation watchdog has ordered a comprehensive review of the Boeing 787 Dreamliner after a spate of incidents involving the aircraft.

The head of the Federal Aviation Administration (FAA) said he is confident the Boeing 787 is safe, but he remains concerned about recent events, including a fire and a fuel leak earlier this week.

Michael Huerta, the FAA administrator, said there is nothing in the data the agency has seen to suggest the plane is not safe.

The watchdog announced it is undertaking a comprehensive review of the 787 to include "critical systems, including design, manufacture and assembly".

The manufacturer responded to fears over the plane and said: "Boeing is confident in the design and performance of the 787. It is a safe and efficient airplane that brings tremendous value to our customers and an improved flying experience to their passengers.

"The airplane has logged 50,000 hours of flight and there are more than 150 flights occurring daily."

Boston fire crews attend the JAL plane after it filled with smoke

The move by the US aviation authority was prompted after a fifth Dreamliner fault this week was reported on Friday morning.

Oil was discovered leaking from the left engine of a Boeing 787 Dreamliner flight operated by All Nippon Airways (ANA).

An ANA spokeswoman said the leak was found after the domestic flight landed safely at Miyazaki airport in southern Japan.

It came on the same day another Japanese 787 suffered a cracked cockpit window while in flight on a domestic route.

ANA said crew noticed a spider web-like crack in a window in front of the pilot's seat about 70 minutes into Friday's flight, which was close to its destination.

The Dreamliner, the world's first carbon-composite airliner, which has a list price of $207m (£128m), has been beset by problems this week.

The plane was designed to use power plants made by General Electric and Britain's Rolls-Royce.

On Wednesday, a domestic flight was halted by ANA because brake parts to the rear left undercarriage needed replacing, a spokesman at Yamaguchi Ube Airport said.

An investigator in the US examines a Boeing 787

A Japan Air Lines (JAL) jet was also grounded at Boston Logan International airport in the US following an engine fuel leak.

About 40 gallons of fuel spilled from the jet that was supposed to be bound for Tokyo.

That event followed the first incident of the week, which also occurred at Boston, on Monday.

Emergency services had been called after another JAL 787 filled with smoke shortly after passengers and crew had disembarked.

Firefighters used infrared cameras to locate the fire in a battery pack in the belly of a different Boeing 787 and extinguished the blaze within 20 minutes.

Sky sources revealed that if the battery fire had occurred during a transocean flight the aircraft may have been brought down.

The 787 Dreamliner made its first commercial flight in late 2011, after a series of production delays put deliveries more than three years behind schedule.

By the end of last year, Boeing had sold 848 Dreamliners, and delivered 49. JAL and ANA operate 24 of the planes.

After the Boston events, British carriers including BA, Virgin Atlantic and Thomson Airways reaffirmed their plans to integrate 787s into fleets this year and next.

In India - where state-owned Air India has taken delivery of six Dreamliners and has more on order - a senior official at the aviation regulator said there was concern at the recent spate of 787 glitches.

Meanwhile, an Air India spokesman said the airline's debut Dreamliner flight from India to Paris on Thursday went without a hitch.

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