CCTV Transcripts

CCTV Script 22/07/19

— This is the script of CNBC's news report for China's CCTV on July 22, 2019, Monday.

Airbus, the most formidable competitor to Boeing, overtakes Boeing as the biggest commercial aircraft manufacturer because of safety issues on 737MAX, any safety warning in this circumstance will make companies and markets worried.

The latest safety issue that draws attention from the media is the one that EASE found in a regular check. Specifically, Airbus A321neo may have a nose lift problem under certain circumstances. Four conditions were required, including special landing conditions where the plane flew below 100 feet, the plane's center of gravity was particularly low, and the crew interrupted the landing, such as go-around.

Although it is rare for all four conditions to be met at the same time, if they happen, the pilot's control of the plane will be weakened. Regulators are still taking note of similar problems that led to the Boeing 737max crash.

The European aviation safety authority has issued airworthiness directives to Airbus on the 17th of this month, demanding that Airbus issue warnings as soon as possible and provide interim solutions within 30 days to revise aircraft manuals. Airbus has said it will provide a permanent solution to the problem by the third quarter of next year.

Fortunately, the safety problems were identified early, and Airbus is actively working on solutions. As a result, the safety warning did not have much of a negative impact on Airbus's share price. As this five-day chart shows, Airbus shares still managed to gain some ground in last week's trading.

Boeing has taught us the importance of aircraft safety. At present, 737max still did not go around, this has led airlines to cancel thousands of flights during the busy summer travel season. After trading on Thursday, Boeing told investors that it would lose $5.6 billion in pretax income in the second quarter on expenses related to the 737 Max.

Boeing's share price has also been slow to recover from the disaster, falling 15 per cent from a half-year high.

Whether Airbus can seize the opportunity to remain the world's largest producer of commercial jets for a while depends on whether it can hold the "safety door".