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IndiGo and CFM sign major jet engine repair shop deal
IndiGo, India’s largest airline, has signed a preliminary deal with?CFM International to purchase over 1,000 LEAP-1A engine. This is a record order for this French-U.S. engine maker, which is currently battling a repair backlog. The Memorandum of Understanding at the Farnborough Airshow will provide engines for the same airline’s massive order to purchase 500 Airbus A320neo family aircraft by 2023, at the Paris Airshow. Paris alternates with Farnborough each year as the industry’s annual showcase. This deal includes plans to have the airline open a maintenance, repair, and overhaul center as well as an agreement for parts. CFM is the largest engine manufacturer in the world by the number of engines sold. It makes engines for the Airbus A320neo and competes with Pratt & Whitney. It is co-owned by GE Aerospace, France's Safran and CFM. Long maintenance 'waiting' times and shortages in spare parts have caused the engine industry to be?disrupted for many years. This has forced airlines to temporarily keep their planes idle. CFM announced at the weekend that it has reduced the number planes grounded due to LEAP engines related issues to "near zero". Pratt & Whitney has also seen improvements. The rival company, which was the main cause of groundings, due to a?shortage of maintenance capacity, and metal contamination problems, has reported similar results. Sources in the industry said that two of the largest budget airlines in the world decided to build repair shops partly to protect themselves from a'scarce capacity for repair. Both airlines will only use their own engines and not outsource their internal resources to others. Even though engine manufacturers are gradually easing the delays, a sharp increase?in planes being constructed means that access to repairs will become a strategic issue for airlines in the future. Boeing warned last week that a lack of skilled?technicians, repair times and supply chain problems would put engine services under strain for the rest of this decade. The U.S. aircraft manufacturer predicted that the total annual MRO market would grow by 88% to $215 billion in 2045. (Editing by Tomasz Janowski and Deepa Babington).
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A northern city lost trains to London on the day Andy Burnham became UK PM
The day Andy Burnham was elected prime minister, the region suffered a blow when a major train operator cut off many direct trains to London. Burnham, former Greater Manchester Mayor, has pledged to take greater control over key privatised services, such as trains, in order to boost connectivity and productivity and improve living conditions. East Midlands Railway's reduced timetable?took place on Monday and disrupted services from Sheffield, Nottingham, to London. The company did not specify a date by which services would resume. Cutbacks are an example of the frustration Burnham promised to address. Britain struggles to build and operate infrastructure in a reliable manner, and many services are provided by companies that are not accountable to local politicians. Oliver Coppard is the mayor of South Yorkshire Mayoral Combined Authority, which oversees Sheffield and the surrounding towns. He said it was a test case to see if Burnham's promise that the regions would be empowered could fix these problems. Coppard stated that he was now reduced to saying to private companies, "Do better". It's not enough. "I want to bring back the power and control in South Yorkshire so that we can make these decisions and change these systems, so they work well for people." EMR stated that the reduced timetable was due to delays in the rollout new Hitachi trains. EMR data showed that on a weekly basis, one out of five scheduled services between Sheffield or Nottingham to London would be either cut or run using fewer carriages. EMR's spokesperson stated that "this temporary?timetable" will be reviewed regularly and services will be increased as soon as they are confident of their ability to do so. A spokesperson for the Department of Transport said that it had asked EMR do everything they could to minimize the impact of timetable changes. Sheffield is a city of nearly 600,000 people, and it's known for its steel industry. Boeing and McLaren Automotive are major employers. Henri Murison is the head of the Northern Powerhouse Partnership. This business-backed group lobbies to attract investment in Northern England. He was worried that the news would permanently damage the attractiveness. (Reporting and editing by Hugh Lawson; Reporting by Andy Bruce)
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Ten bodies found after ferry capsizes near Guyana coastline
Guyana's government announced on Monday that 10 bodies were recovered from a ferry capsized over the weekend off the coast with 133 passengers on board. The ship flipped late Saturday night. Authorities have suggested that an incorrect 'passenger manifest' and drug use by the crew could have been a contributing factor to this?disaster. The MV Barima capsized as it traveled from the capital, 'Georgetown' to the village of Port Kaituma in the northwest. Although 67 survivors, including 15 children, were rescued Sunday morning, dozens of people remain unaccounted for. Search teams expanded their area of search to 1,040 sq km (401 sq miles) with the help of private energy sector vessels and divers. Officials said that the vessel's captain, and at least one other crewmember are in police custody after testing positive for marijuana. Mark Phillips, Prime Minister of Canada, has ordered an investigation into possible institutional failures. Phillips promised that anyone found guilty will be prosecuted. Reporting by Kemol King
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Red Sea war insurance rates rise after Houthi Blockade, say sources
Insurance industry sources say that the cost of insurance for shipping goods through the Red Sea increased 'on Monday, after Yemeni Houthis, who are Iran-aligned, announced a naval blockade against Saudi Arabia. This increased risks to merchant shipping. The Houthis' move opens up a new front in the war against Iran waged by the United States and increases the danger to energy supplies and global trade outside the Gulf. Sources who declined to identify themselves due to the sensitive nature of the issue said that the indicative war risk premiums increased to around 0.75%, up from 0.3%, the day before the Houthi announcement. A seven-day trip can cost hundreds of thousands more dollars for even a minor change. It is unclear how the Houthis will 'carry out' a naval blockade against Saudi Arabia, their northern neighbour along the Red Sea coast, or if it would include a return of attacks on shipping. Since the U.S. and Israel's conflict with Iran started on February 28, Saudi Aramco has increased its use of the Yanbu Terminal in the Red Sea. Ambrey, a British maritime security firm, said that vessels flying the Saudi Arabian flag, those owned or operated by Saudi Arabia, and vessels on their way to or from Saudi Arabia, as well as vessels in Saudi Arabian ports or en route, were all deemed 'at high risk' of being attacked by Houthis. The Houthis committed a mistake during the Red Sea Crisis of 2024 by targeting ships with outdated affiliations to firms. Ambrey stated that it is possible for vessels to be targeted because of a mistaken identity. Saudi oil exports could be halted to Asia if the Bab el-Mandeb strait is closed. This would also reduce the global supply of oil by 7%. Red 'Sea traffic is still not back to normal since Houthi attacks on Yemeni coasts began in November 2023, in what they called a'solidarity war with Palestinians. The Gaza ceasefire of October 2013 was the only time that all Houthi attacks ceased. In recent months, there have been more suspected Somali piratery and hijackings of ships in the Gulf of Aden. This has increased the dangers to shipping. (Reporting and editing by Susan Fenton; Jonathan Saul)
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Senators from the US at an airshow reassure foreign defense companies and urge tariff-free trading
Nine?U.S. senators from both parties have formed a bipartisan group. Senators sought on Monday to reassure defense contractors of?American allies about the growing demand for their product and asked?the Trump Administration not to impose tariffs on aerospace products. At the Farnborough Airshow, Republican Senator Jerry Moran said: "Our message is to encourage them to improve their capability to send a message that the signal of demand is real." "We're doing things in Congress to suggest that demand will only grow." Moran said, "We must increase the demand for our country's protection." He added that the event would allow lawmakers to talk with Europeans, "to'reiterate and commit ourselves to the United States wanting to participate in global economy and national security. Senator Jeanne Shaheen, a Democrat from the United States, said that the senators represented a wide swath in the country where aerospace was important. She said that the U.S. was exhibiting at Farnborough in its largest ever presence. She pointed out that last year China was more visible at the Paris airshow. Shaheen stated that "the fact?that America has such a large?presence is important, not only for America's industry, but also the partnerships we need around the globe to improve not only our economic security, but our national safety." Shaheen stated that the U.S., European Union and other countries need to collaborate in order to meet the?needs of defense and the backlog. The U.S. Commerce Department announced earlier this month that it had finished a probe of imported commercial aircrafts, jet engines, and parts. It found foreign goods raised U.S. National Security concerns, but the Trump Administration is not?immediately seeking new tariffs. After a brief tariff on aviation in 2018, the Trump administration bowed to pressure from the U.S. Aviation sector and agreed to exempt aircrafts and parts as part of trade deals. Moran, Shaheen, and others oppose tariffs. Eric Fanning CEO of the Aerospace Industries Association noted that the U.S. Aerospace and Defense industry saw a 25% increase in exports over the past?year, with more than two million U.S. employees. Fanning stated that "we are by far the world leaders." Airplanes, parts and accessories have been exempt from tariffs since 1979 under the Civil Aircraft Agreement. The U.S. sector has enjoyed an annual surplus of $75 billion. (Reporting and editing by Alexandra Hudson; Reporting by David Shepardson)
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Aircraft orders are up at the Farnborough airshow, as Boeing and Airbus compete for deals
As the 'Farnborough International Airshow' opened on Monday, more aircraft orders are expected to be announced this week. The?British show is one of the largest gatherings in the sector. Sources in the industry said that despite expectations of 800 or more aircraft, 'dealmaking' is expected to fall short. This is because?Airbus &?Boeing are still struggling with production bottlenecks and supply-chain constraints. Here are some of the most important deals that have been made so far. SMBC AVIATION CAPITALS Boeing and SMBC Aviation Capital have announced that they have ordered 100 737-MAX aircraft, including 60 737-10 jets and 40 737-8 jets. The 737-10 is SMBC Aviation Capital’s first order for the highest-capacity variant of the 737?MAX. SMBC announced that it had placed a firm 100 Airbus A320neo family aircraft order. Airbus'?order includes 65 A321neos and 35 A320neos, and deliveries are expected to start in the first half decade of the?decade. INDIGO India’s largest airline signed a memorandum with CFM International for the purchase of over 1,000 LEAP-1A engine. This would be a record-breaking deal?for an engine manufacturer that has been criticized by industry due to maintenance delays. RIYADH AIR The 'Saudi carrier exercised its options on 28 'Boeing 787 Dreamliners, from an order placed in the year 2023. 20 of these aircraft were converted to the 787-10 variant. The firm has also confirmed a further six Airbus A350 1000 aircraft orders, bringing its total A350 1000 order book up to 31 aircraft. PHILIPPINE Airlines announced that it had placed a new order with Boeing for 20 Dreamliner 787-10 widebody twinjets. The order is composed of 15 firm orders, and five options. Philippine Airlines, which has operated Boeing aircraft for many years, including the 777-300ERs it currently operates, has never before operated Boeing's Dreamliner 787-10. Other Deals Japan's Skymark Airlines and Aviation Capital Group have agreed to lease seven Boeing 737 MAX 10 narrowbody twinjets. Deliveries will begin in 2028. Airbus' first order at the show was a commitment from UK's National Police Air Service to purchase two more H135 helicopters, bringing their fleet renewal program up to nine H135s. Delivery is expected to begin in 2028. British Airways has announced that it will be ordering Pratt & Whitney GTF engine for up to 63 Airbus A320neo jets, 33 'firm orders' and 30 options. Singapore-based BOC Aviation has placed its largest ever engine order. It will purchase and option 300 CFM International engines in support of its growing Airbus and Boeing narrow body fleet.
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EU wheat is flattened on signs that Russian/Ukrainian attacks at ports are not escalating
The European wheat futures were unchanged in Paris on Monday, traders said. They were relieved that the attacks by Russia and Ukraine on grain terminals and?shipping of grains? had not increased. The European wheat market posted its largest weekly gain in more than four decades on Friday, after Russia and Ukraine repeatedly struck each other's grain terminals and grain shipping facilities. Both sides had left them largely unaffected during their war. The benchmark September milling grain on the Paris-based Euronext ended the daytime sessions unchanged at EUR234.75 (USD267.97) per metric ton. It gained 8.4% on fears that the attacks on grain shipments could reduce Black Sea wheat exports. One German trader stated that despite the continued attacks against grain ships, they did not appear to be worsening. Ukraine seems to be concentrating their attacks on tankers. He said it was a relief that Ukraine did not strike the massive grain terminals in Russia's Novorossiysk Port, which could have caused major disruptions to the grains markets. One French trader stated that the market seemed to be taking a break despite the events of last weekend. I think the trend shouldn't change much in the absence of visibility regarding a possible?agreement. I've heard that Black -Sea FOB wheat values are still quite firm. This also limits the downside of the market. Euronext declined despite more bad news about French crops. Argus Media reported on Monday that France's soft 'wheat' crop will fall to 30,80 million metric tonnes this year, down 7.6% compared to '2025. This is after hot and dry weather 'hit yields' in the 'European Union's largest producer of the cereal.
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Executives say that private investors need to invest in defence to make up for the funding deficit.
Senior finance executives told the Farnborough Airshow that private investors need to fill the gap left by cash-strapped governments. But, too many bottlenecks and barriers discourage investment. Cathal Deasy said that "public spending will not be enough. We need to mobilize private capital in large quantities." He added that national governments must act more quickly and with greater clarity. According to event organizers, bankers and investors have attended the annual aerospace conference in record numbers this year. They are attracted by the prospect of 'cashing in' on a global boom for defence investing amid increasing geopolitical tensions. Investor sentiment has recently cooled, as reflected by the weaker stock prices of defence firms. The Franco-German defense group KNDS, for example, put its'stock market listing on hold until conditions improve. Farnborough is expecting to host more than 600 finance delegates, a threefold increase compared to 2025. These include executives from Goldman Sachs and JPMorgan, as well as Qatar's sovereign fund. Amin Mansour is a vice-chairman at Dutch bank ING. He told the press ahead of the event that banks are now more willing to invest in the defence sector. The bank has about 50 bankers who work across sectors on funding deals, compared to just a few five years ago. REVOKING DEFENSE VALUATIONS This year, the recent rally of European defence stocks has slowed. The index of aerospace and defence stocks is up by 1.3% from the beginning of 2026. Meanwhile, the broader?STOXX 600 has gained 8%. A senior executive from one of the largest U.S. private equity firms, who refused to be identified, said that valuations for defence companies had been "reckoned" in the last year, but have since become more investible. Some said that despite the fact that many smaller defense contractors are still missing out on private funding due to factors such as complex procurement, they continue to be disadvantaged. Ephraim Rudman is a partner in Apollo's financial institutions group. He said that getting capital into the supply chain was a challenge and created bottlenecks. (Reporting and editing by Tommy Wilkes, Sharon Singleton, Alun John)
Data shows that few tankers are entering the port of Hormuz for oil loading, but LNG floating storage is increasing.
Shipping data revealed on Monday that the number of ships transiting?Strait?of Hormuz remained low over the weekend, as Iran and the United States intensified their attacks in the Middle East.
Data from LSEG shows that four vessels crossed the strait on Sunday, compared to eight the day before. The data showed that at least three oil product tankers and a Very Large Crude Carrier entered the strait to load oil since Friday.
LSEG data includes transit of container ships, bulkers and vehicle carriers as well as tankers carrying oil, gas, and chemicals. The U.S. announced on Sunday that it had carried out an eighth night of attacks against Iran. Meanwhile, U.S. Allies Kuwait and Bahrain also reported further Iranian attacks.
Both sides have targeted shipping traffic in recent days. The U.S. has said it enforces a naval blocade against Iranian ports. Iran says it targets vessels that violate its rules for navigating the Strait of Hormuz which handles about one-fifth of the global oil trade.
The 'United Kingdom Maritime Trade Operations Agency' said on Monday that it received a report indicating a vessel on fire eight nautical miles (14.8km) northwest of Oman’s Kumzar. UKMTO stated that the cause of fire has not been confirmed.
Since Thursday, no liquefied gas tankers were visible in the Strait. Transponders are sometimes turned off by tankers and other vessels to hide their passage.
S&P Global Energy's vessel tracking data showed that the combined 10-day average for laden LNG transits in the Strait fell to 0.2 cargoes a day on July 15, down from 0.8 cargoes a day at late June.
The data revealed that only one LNG cargo has been 'known' to have left the Gulf in the last week.
S&P Global analysts stated in a report that despite the disruptions to shipping outbound, LNG production at Qatar and the United Arab Emirates has continued at a fairly robust pace. This has led to an "increasing inventory" of LNG on tankers awaiting inside the Gulf.
S&P Global estimates that seven laden Qatari LNG ships held around 0.57 million metric tonnes of LNG by mid-July, while nearly 1.9 millions tons of LNG tanker capacities are currently positioned inside the Gulf. This is the equivalent to around eight days worth of pre-war peak exports.
The report added that "Should an effective blockage of Strait of Hormuz in the next few weeks ease, these vessels would be able to enable a relatively quick increase in exports by releasing LNG which has already been loaded and produced." Reporting by Florence Tan, Editing by Sonali and Lincoln Feast.
(source: Reuters)