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Crisis-hit Boeing has rushed to defend itself from fresh whistleblower allegations of poor practice, as the airline continues to grapple its latest safety crisis.

A Congressional investigation heard evidence on Wednesday on the safety culture and manufacturing standards at the company – rocked in January by a mid-air scare that saw an Alaska Airlines 737 MAX 9 flight suffer a panel blowout.

One Boeing quality engineer, Sam Salehpour, told members of a Senate subcommittee that Boeing was taking shortcuts to bolster production levels that could lead to jetliners breaking apart.

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He said of Boeing’s 787 Dreamliner, that has more than 1,000 in use across airlines globally including at British Airways, that excessive force was used to jam together sections of fuselage.

He claimed the extra force could compromise the carbon-composite material used for the plane’s frame.

“They are putting out defective airplanes,” he concluded, while adding that he was threatened when he raised concerns about the issue.

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Boeing quality engineer Sam Salehpour testifies during the Senate homeland security subcommittee hearing. Pic: AP
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Boeing quality engineer Sam Salehpour testifies during the Senate homeland security subcommittee hearing. Pic: AP

The engineer said he studied Boeing’s own data and concluded “that the company is taking manufacturing shortcuts on the 787 programme that could significantly reduce the airplane’s safety and the life cycle”.

Boeing denied his claims surrounding both the Dreamliner’s structural integrity and that factory workers jumped on sections of fuselage to force them to align.

Two Boeing engineering executives said this week that its testing and inspections regimes have found no signs of fatigue or cracking in the composite panels, saying they were almost impervious to fatigue.

The company’s track record is facing fresh scrutiny amid criticism from regulators and safety officials alike in the wake of the incident aboard the Alaska Airlines plane.

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What’s going on at Boeing?

It has become a trust issue again after the worst period in Boeing’s history when two fatal crashes, both involving MAX 8 aircraft, left 346 people dead in 2018 and 2019.

All 737 MAX 8 planes were grounded for almost two years while a fix to flawed flight control software was implemented.

A separate Senate commerce committee heard on Wednesday from members of an expert panel that found serious flaws in Boeing’s safety culture.

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Boeing CEO: ‘We fly safe planes’

One of the panel members, MIT aeronautics lecturer Javier de Luis, said employees hear Boeing leadership talk about safety, but workers feel pressure to push planes through the factory as fast as they can.

In talking to Boeing workers, he said he heard “there was a very real fear of payback and retribution if you held your ground”.

Pressure on Boeing to focus on safety has included restrictions placed on production, limiting its manufacturing output.

At the same time, it is still facing three separate investigations by the Federal Aviation Administration, the Justice Department and the National Transportation Safety Board relating to the panel blowout.

A management shake-up announced amid the inquiries will see the chief executive depart the company by the year’s end.

Sky News has approached British Airways for comment.

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Shellfish industry on a ‘knife edge’ as sewage dumped in designated waters for 192,000 hours last year

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Shellfish industry on a 'knife edge' as sewage dumped in designated waters for 192,000 hours last year

Untreated sewage was released into designated shellfish waters for 192,000 hours last year, new research has found.

The dirty water pouring into English seas was a 20% jump from 159,000 hours in 2022, according to the analysis of Environment Agency data by the Liberal Democrats, shared with Sky News.

The hours of sewage dumping were spread across 23,000 separate incidents – a slight fall from the previous year, but still an average of 64 times a day.

Some fishing waters in Cornwall were forced to close last year after high levels of e.coli were found in oysters and mussels, and norovirus can also be transported via human waste.

While the fishing industry can usually clean its catch before it reaches the plate, it has branded the situation a “stitch-up” because it foots the bill for the process.

Liberal Democrat environment spokesperson Tim Farron MP said: “This environmental scandal is putting wildlife at risk of unimaginable levels of pollution.

“The food we eat, and the British fisheries industry, must be protected from raw sewage.”

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The Lib Dems are calling for an investigation into shellfish water quality – which should be protected from deterioration under the Water Framework Directive – and a government clampdown on polluting companies.

“It is getting worse on their watch and there will be real concerns for the fishing industry if this trend continues,” added Mr Farron, whose party is targeting many rural seats in the upcoming general election.

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Why are some forced to live with bad smells and trails of sludge?

The worst offender was South West Water, responsible for 13,000 sewage discharges, totalling 98,000 hours, followed by Southern Water, which released sewage 7,000 times for 73,000 hours.

Southern Water pointed to the fact 2023 fell in the wettest 18-month period on record, while South West Water said it has a high proportion of shellfish waters across its vast West Country coastline.

Just 9% of shellfish waters in England reach the top “class A” status – clean enough that shellfish harvested from them can be sold without being purified first.

Anything caught from lower quality waters must be cleaned first in depuration tanks, where the molluscs purge themselves with sterile water, or cannot be sold at all.

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Martin Laity, of Sailors Creek Shellfish, and his son. Pic: Martin Laity
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Martin Laity, of Sailors Creek Shellfish, and his son. Pic: Martin Laity

Fishing industry on a ‘knife edge’

Martin Laity, of Sailors Creek Shellfish, has been catching native oysters from the waters of Cornwall for 34 years.

He tracks alerts on the latest sewage discharges, so he can avoid fishing in those waters, and sometimes soaks the oysters in purification tanks for days longer than mandated just to be safe.

He calls the situation a “stitch-up” because it pushes up producers’ electricity and labour costs, and reduces the value of their catch, for which they receive no compensation.

Joe Redfern from the Shellfish Association Of Great Britain said producers “live on a knife edge”.

“Just one bad result can shut down their business overnight, leading to huge impacts to their business. It is a desperate situation and one that seems to be getting worse, with some businesses shutting for good,” he said.

It wants compensation for producers from the fines the government imposed on water companies for excessive sewage releases.

A spokesperson for industry body Water UK said: “Water companies understand and sympathise with the issues these businesses and coastal communities are facing, which is why we are proposing to spend £11bn to reduce spills as quickly as possible, halving spills into shellfish water by 2030.”

An environment department (Defra) spokesperson said: “We’re already taking action to clean up shellfish sites by driving the water industry to deliver the largest infrastructure programme in history – £60bn over 25 years – to cut spills by hundreds of thousands each year.

“Shellfish sites will be prioritised alongside bathing waters and sites of ecological importance.”

Defra is also increasing inspections and regulator funding, and considering banning some water company bonuses, they added.

South West Water said its plans will ensure all shellfish sites in its area meet the government’s target of less than 10 spills per year by 2030, and Southern Water said shellfish can also be infected by farming, run off from roads, boats, marine life and pesticides.

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Wait for interest rate cut leads to surprise dip in house price growth

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Wait for interest rate cut leads to surprise dip in house price growth

Shifting expectations for UK interest rate cuts have contributed to a dip in house price growth, according to a closely watched measure.

Nationwide reported a 0.4% fall in average property costs last month compared with March, taking the annual rate of growth to 0.6% from 1.6%.

Economists polled by the Reuters news agency had expected month-on-month growth of 0.2%.

The lender’s report said the easing reflected “ongoing affordability pressures, with longer term interest rates rising in recent months, reversing the steep fall seen around the turn of the year”.

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The cost of fixed rate mortgage deals has risen due to market expectations that a Bank of England interest rate cut is looking further away than had been anticipated at the start of the year.

According to the latest data from the financial information service Moneyfacts, the average two-year fixed residential mortgage rate is still creeping back up towards the 6% mark last seen since December.

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It charted a figure of 5.9% on Monday – up from 5.87% seen last Friday.

The average five-year rate is nearing 5.5%.

The increases reflect rising borrowing costs for lenders themselves.

It is all based on market expectations that a UK interest rate cut will now not take place until August.

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Interest rate cut hopes pushed back

Earlier bets had been on May but the Bank has recently signalled no let up in its concerns about the outlook for inflation, with those including the pace of wage growth remaining too high.

Nationwide said wider cost of living pressures continued to weigh on buyers during April, despite the pace of wage growth standing at almost double that for price growth.

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Robert Gardner, Nationwide’s chief economist, said: “Recent research carried out by Censuswide on behalf of Nationwide found that nearly half (49%) of prospective first-time buyers (those looking to buy in the next five years) have delayed their plans over the past year.

“Among this group, the most commonly cited reason for delaying their purchase is that house prices are too high (53%), but it is also notable that 41% said that higher mortgage costs were preventing them from buying.

“Coupled with this, 84% of prospective first-time buyers said that the cost of living has affected their plans to buy, for example through having less money each month to save for a deposit.”

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Premier Inn owner Whitbread to axe 1,500 jobs as it looks to expand hotel business

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Premier Inn owner Whitbread to axe 1,500 jobs as it looks to expand hotel business

Premier Inn owner Whitbread is set to axe around 1,500 UK jobs as part of plans to build more hotel rooms and slash its chain of branded restaurants by more than 200.

The company said, while announcing a 36% hike in annual profits to £561m, that it was to begin a consultation on cutting roles under an “accelerating growth plan”.

That was to focus on hotel investment, Whitbread explained, that could see some of the jobs saved through redeployment.

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The group’s restaurant arm includes the Brewers Fayre and Beefeater brands.

The division has dragged on Whitbread’s performance since the pandemic, with the end of public health restrictions being followed by the energy-led cost of living crisis that has raised costs and damaged consumer spending power.

The company, which employs 37,000 staff in the UK, said it was to “optimise” its food and drink offering to add more than 3,500 hotel rooms across its estate and increase “operational efficiencies”.

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Whitbread said it wanted to sell 126 of its less profitable branded restaurants, with 21 sales already having gone through.

Brewers fayre sign next to Premier Inn
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Brewers Fayre, the pub/restaurant chain, is among Whitbread’s brands

It will also convert 112 restaurants into new hotel rooms.

The company revealed a 2% dip in sales across its food and beverage arm in the first seven weeks of its financial year to date.

Dominic Paul, Whitbread’s chief executive, said: “We recognise that our transition will impact some of our team members so we will be providing support throughout this process and we are committed to working hard to enable as many as possible of those affected to remain with us.”

Shares were down almost 15% in the year to date ahead of the company’s announcements.

They rose by 1.7% at the open.

Analysts said it reflected the focus on achieving more profitable growth in the UK core market and a rise in awards covering the year to 29 February.

They included plans for a share buyback of £150m on top of a £110m final dividend.

The latter award was 26% up on the previous year’s payout.

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