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Memo says Spirit will cut flight capacity and jobs by 25%.
Spirit Airlines will cut jobs in November as it plans to reduce its capacity by 25% compared to the previous year, according to an internal memo. This is a further blow to the low-cost carrier. In a memo to employees, CEO Dave Davis explained that the cutbacks are intended to "optimize [our] network in order to focus on our most important markets". The memo stated that "These evaluations are bound to affect the size our teams, as we become an efficient airline." Uncertain is the number of roles which could be affected. According to the memo, the low-cost airline continues to evaluate its fleet size and plans to meet the leaders of the airlines' unions in the next few weeks. CNBC reported earlier on the restructuring plan. Spirit filed for bankruptcy last month, the second time within a year. A previous reorganization had failed to give it a more stable financial foundation. Spirit's financial troubles, along with a rush by U.S. carriers in pursuit of premium travelers, has raised fears that the cheap flight era might be coming to an end for budget-conscious travelers. United Airlines had earlier on Tuesday ruled out the possibility of bidding for Spirit's assets if and when they became available. This is expected to happen as part of Spirit's restructuring. Reporting by Gursimran K. Kaur in Bengaluru and Angela Christy; Editing by Alan Barona, Rashmi Aich
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France prepares for protests and strikes against budget cuts
Teachers, pharmacists, and train drivers are among the workers who will be striking in France on Friday as part of a protest against budget cuts. The unions want more public spending, higher taxes on the rich and the scrapping an unpopular pension change. Social unrest occurs as President Emmanuel Macron, and newly appointed Sebastien lecornu, face a political crisis in order to control finances and bring the second largest economy of the eurozone under control. According to a source in the Interior Ministry, 800 000 people are expected to participate in protests and strikes. Workers Angry Over Fiscal Plans The main unions in the country said that "the workers we represent are furious" in a statement where they rejected the fiscal plans of the previous government, which were "brutal" as well as "unfair". Lecornu, who relies on other parties for legislation to pass, will have to fight a political battle in order to get a budget approved by the parliament for 2026. Lecornu became prime minister after Francois Bayrou was ousted by the parliament last week over his plan to squeeze the budget by 44 billion euros. Lecornu hasn't yet stated what he plans to do with Bayrou’s plans but has said that he is open to compromise. Sophie Binet, the CGT union's chief after meeting Lecornu in early this week, said: "We will continue mobilising as long as there are no adequate responses." "The budget decision will be made on the streets." PROTESTS TO HIT SCHOOL, TRAIN The FSU-SNUipp said that one in three primary teachers will be on strike. The power company EDF announced that some of its employees would be on strike. Officials said that the Metro network in Paris will experience widespread disruptions, and regional trains as well. However, the majority of high-speed TGV lines will continue to operate. Confederation Paysanne, the farmers' union has also called for mobilization. Pharmacists have been angry about changes that affect their businesses. The USPO pharmacists union conducted a survey among pharmacies and found 98% of them could close the next day. BFM TV reported that Interior Minister Bruno Retailleau said 80,000 police officers and gendarmes would be deployed. Retailleau stated that riot units, drones and armored vehicles would be present to combat what he described as possible sabotage or attempts to block different sites in the early morning. He also said that he expected violent troublemakers to attempt to clash with the police. (Reporting by Dominique Vidalon, Mathias de Rozario, Juliette Jabkhiro Writing by Ingrid Melander Editing by Frances Kerry)
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Peru President signss contract to allow Chevron and Westlawn entry
Dina Boluarte, the president of Peru, announced on Wednesday that she had modified a contract for hydrocarbon exploration and extraction. This would allow U.S. companies Westlawn and Chevron to enter the country. The contract formalizes their entry through a consortium run by Texas-based Anadarko (APCFC. UL, a subsidiary company of Occidental Petroleum Corporation. The agreement allows the companies to work in three offshore blocks, Z-61, Z62, and Z63, off Peru's La Libertad area, located north of Lima. Boluarte, at a government palace ceremony, said that the arrival of Chevron - the third largest oil company in the world - sends a clear and strong message. Peru is a stable, reliable and serious country for large-scale investments. She added, "If the exploration confirms that oil and gas deposits exist, we'll be facing a real energy renaissance which will have the potential to guarantee our economic growth for many decades." According to government data, Chevron, Anadarko, and Westlawn each will hold 35% of the consortium. The government announced an initial investment of $100 million dollars in the exploration phase. Executives from the three oil firms and Perupetro, the state regulator, signed off on the contract amendment. Pedro Romero said he is optimistic about this project. In a speech, he stated that "this is a project on which we have worked for years." It is the start of a brand new adventure. Reporting by Marco Aquino, Editing by Richard Chang
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Executive says that holiday season imports are already arriving at the busiest US port.
The top executive of the nation's busiest port said that U.S. retailers had finished importing holiday goods at least one month earlier in an effort to reduce costs associated with President Donald Trump's changing tariff policies. Port of Los Angeles Director Gene Seroka said that "a large amount of holiday cargo is already here and moving through the supply chain." He said that the traditional holiday rush, also known as peak season, which is traditionally driven by retail, happened early. About half of the cargo volume is handled by retailers at the Port Los Angeles. Dockworkers handled 1,019 837 20-foot-equivalent units (TEUs), the highest monthly cargo volume the Port of Los Angeles has ever seen in its 117 year history. The total volume at the Port of Los Angeles in August was 958.355 TEUs. This is down 0.2% compared to a year earlier. Seroka anticipates that import volumes will continue to decline throughout the rest of the year. He said that September will be about 850,000 TEUs. This is 10% less than the previous year. Forecasters say that several trends point to a drab holiday season in 2025. This month, the National Retail Federation (which represents companies such as Walmart and Target) said that it expects container imports will continue to decline throughout the rest of the year, due to the rising U.S. Tariffs. "Shifting Trade Policies Continue to Create Uncertainty for Businesses and Consumers," Mario Cordero said, CEO of Port of Long Beach which borders the Port of Los Angeles. Seroka explained that this is contributing to a slowdown in job growth, and the lingering of inflation. This makes importers and customers a bit more cautious. Retail sales in the United States increased more than anticipated in August. This is the third consecutive month that retail sales have increased, despite a backdrop of price hikes fueled by tariffs. But a PricewaterhouseCoopers survey released this month showed that holiday spending by U.S. consumers is set for its steepest drop since the pandemic as shoppers -- particularly Gen Z -- pull back amid economic uncertainty. (Reporting by Lisa Baertlein in Los Angeles; Editing by Jamie Freed)
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Families of Air India crash victims sue Honeywell and Boeing
Families of four passengers who died in the crash June 12 crash In a lawsuit, the owner of an Air India Boeing 787-8 said that the accident was caused by allegedly defective fuel switches. The U.S. Federal Aviation Administration Has said that the accident which killed 260 people does not appear to be caused by him. The lawsuit filed in Delaware Superior Court on Tuesday blames Honeywell and Boeing, who made the switches, as the cause of the crash that occurred seconds after Flight 171 left Ahmedabad, India, bound for London. Plaintiffs cite a 2018 FAA advisor that suggested, but did no mandate, that operators of various Boeing models, such as the 787, check the locking mechanism on the fuel cutoff switches to ensure they could not accidentally be moved. The Air Accident Investigation Bureau (AAIB), India Report of preliminary investigation The investigation into the crash found that Air India did not perform the recommended inspections and that maintenance records indicated that the throttle control modules, which include the fuel switches, were replaced on the aircraft involved in the accident in 2019 and in 2023. The report stated that "all applicable airworthiness instructions and alert service bulletins on the aircraft, as well as engine" were adhered to. Honeywell and Boeing both declined to comment. The cockpit recording between the two pilots of the jet suggests that, contrary to previous reports, the captain had cut off the fuel flow to the engines. The lawsuit claims that the switches were placed in an area of the cockpit that was more likely to have been accidentally pushed. This "effectively guaranteed" that normal cockpit activities could lead to inadvertently cutting off fuel. Experts in aviation safety told us that this could not happen. Flip Based on their design and location. This lawsuit is the first to have been filed in the United States regarding the crash. The lawsuit seeks damages that are not specified for the deaths suffered by Naavya Dhirubhai, Kuberbhai, and Babiben, all of whom were passengers. Also, 19 passengers and 12 crew members were killed. One passenger survived. The plaintiffs are Indian or British citizens and reside in India or Britain. The preliminary report of Indian investigators appeared to exonerate Boeing, and engine manufacturer GE Aerospace. However, some family groups have criticized the investigators and press for being too focused on pilots' behavior. Legal experts state that, although most accidents are the result of a variety of factors, lawyers who represent victims' families often target manufacturers as they don't have to face the same limitations on liability as airlines. These strategies may also increase the likelihood of bringing a case in U.S. court, which is widely regarded as being more generous to plaintiffs compared to many foreign courts. Paghadal et al v Boeing Co et al is the case at Delaware Superior Court No. N25C-09-145. (Reporting and editing by Les Adler, Marguerita Choy, and Les Adler; Additional reporting in Seattle by Dan Catchpole; Reporting by Jonathan Stempel).
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Colombia asks UN Aviation Agency for global standards on pet protection on planes
After a series of high-profile incidents in which dogs died on planes, Colombia has asked the U.N. aviation agency to adopt global standards for air transporting pets across borders. The representative of Colombia's ICAO said that the country wants to see the organization, which sets international standards for everything from seatbelts to runways, create rules regarding pets in aircraft. The proposal of the South American country, which is supported by about two dozen countries from Latin America and Europe has been made ahead of ICAO’s triennial meeting that runs from September 23 through October 3. "Colombia talks about this because there have been a few instances in our country that negatively affected the health of pets," Mauricio Koppel, a representative from Colombia for ICAO, said on Tuesday. "We found that ICAO does not have a guide that establishes rules and standards for the proper transport of living beings and pets." ICAO can't impose rules to member states but countries who approve of the agency standards tend to adhere by them. The COVID-19 pandemic and the growing pet ownership have led to a surge in demand for "dog first" flights, such as those offered by BARK Air. Virgin Australia announced Wednesday that it will begin allowing small dogs and cats to travel in the cabin of some domestic flights on October 16th. Some airlines will transport pets in the cargo hold instead of the cabin. However, some breeds such as French bulldogs or pugs may be banned because they are at a higher risk of heatstroke. According to the U.S. Department of Transportation, incidents involving injured or deceased animals on airplanes are rare. According to a Colombian ICAO working paper, the increase in pet travel has raised concerns about ventilation and safety containment. In the years 2021 and 2022 there were two cases where dogs died aboard small carriers. Meanwhile, in 2020, the Canadian Kennel Club demanded government reforms after dozens of dogs died on a Ukraine International Airlines flight between Kyiv and Toronto. In 2018, a French Bulldog died in an overhead bin after a United Airlines cabin attendant had ordered its stowing. This incident prompted the United States to pass legislation that prohibits airlines from placing animals in dangerous situations by storing them in overhead compartments. Koppel says that the International Air Transport Association, a lobby group for airlines, has set rules on animal transportation across borders. However, these are not legally binding. Qatar Airways, a Middle Eastern carrier, allows falcons to fly in the cabin. Other countries such as Australia require that dogs and cats be quarantined upon arrival. Koppel stated that there was a gap in the law. IATA stated on Wednesday that their live animal regulations are widely recognized and adopted by regulators around the world as "global benchmarks for safe and humane air transport of animals." The group is in favor of ICAO providing a framework for pet transport to all countries as long as there are no duplications. (Reporting and editing by Jamie Freed in Montreal, Allison Lampert is reporting from Montreal)
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Families of Air India crash victims sue Honeywell and Boeing
Families of four Air India Flight 171 passengers who were killed in the crash on June 30 blamed Boeing and Honeywell for their negligence, and also a defective fuel cutoff switch, which led to the death of 260 people. Flight 171, which was en route from Ahmedabad to London, crashed on June 12 shortly after it took off. The plaintiffs in a complaint filed Tuesday at the Delaware Superior Court said that the locking mechanism on the switch of the Boeing 787-8 Dreamliner may have been turned off accidentally or missed, resulting in a loss in fuel supply and the loss of thrust required for takeoff. The U.S. Federal Aviation Administration warned in 2018 that disengaged locking mechanism on Boeing aircraft could pose a risk. By placing the switch behind the thrust levers "Boeing effectively ensured that normal cockpit activities could result in an inadvertent cutoff of fuel." The complaint stated. "What did Honeywell, Boeing and other companies do to avoid the inevitable catastrophe?" Nothing." Boeing, located in Arlington, Virginia declined to comment Wednesday. Honeywell of Charlotte, North Carolina did not respond immediately to comment requests. Both companies were incorporated in Delaware. This lawsuit is the first to have been filed in the United States regarding the crash. The lawsuit seeks damages that are not specified for the deaths suffered by Naavya Dhirubhai, Kuberbhai, and Babiben, all of whom were passengers. Also, 19 passengers and 12 crew members were killed. One passenger survived. The plaintiffs are Indian or British citizens and reside in either country. The cause of the crash has not been determined conclusively by investigators from India, Britain and America. According to a preliminary report published by India's Aircraft Accident Investigation Bureau, the confusion that occurred in the cockpit prior to the crash was described in a July report. Bryan Bedford, administrator of the U.S. FAA in July, also expressed "high confidence" that mechanical problems or an inadvertent move of fuel control components was not the cause. Boeing incurred legal costs and other costs of more than $20 billion from the two fatal crashes of 737 MAX aircraft that occurred in 2018 and 2019 The most popular plane was grounded for more than 20 months. Paghadal et al v Boeing Co et al is the case at Delaware Superior Court No. N25C-09-145. (Reporting and editing by Leslie Adler; Additional reporting from Dan Catchpole, Seattle; Additional reporting from Jonathan Stempel).
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US lawmakers ask Trump to reinstate the delay compensation program for air travelers
A group of 77 House Democrats on Wednesday urged President Donald Trump's administration to reinstate the plan that his predecessor championed to compensate U.S. passengers for airline delays. The Transportation Department announced on September 4 that it would not follow a proposal by the then Democratic president Joe Biden, which required airlines to compensate passengers in cash when carriers cause flight disruptions within the United States. The lawmakers, led by Democratic Representatives Greg Stanton, and Rick Larsen, said that the Trump administration, instead of rolling back passenger protections, should focus on bipartisan, common-sense ways to lower costs for customers while maintaining the safety of our skies. This decision will increase the cost of traveling and undermine consumer protections. USDOT, under Biden's leadership, asked for public comments in December on whether airlines should have to pay between $200 and $775 per delay. The U.S. airline industry has strongly criticized Biden's proposal from 2023. Sean Duffy's spokesperson said that the best way to end endless delays was to fix the broken air traffic system. He also criticized how the previous administration handled the issue. USDOT stated that it will implement the consumer protection mandates of Congress to "ensure that travelers are treated fairly, while also acknowledging how excessive regulations can raise ticket prices." In the U.S., airlines must reimburse passengers for cancelled flights if they choose to not fly. However, they are not required compensate customers for delayed flights. All four countries - the European Union, Canada and Britain - have rules on airline delays compensation. Airlines for America, the trade group that represents American Airlines Delta Air Lines United Airlines Southwest Airlines and other airlines, stated Wednesday, "the entire business model of airlines is based on repeat, satisfied customers." In this highly competitive market, carriers do not need any additional incentives to provide quality services. In 2022, major U.S. airlines will pay for meals, hotels, and other expenses if flight delays are significant. USDOT has also revealed this month that it is considering revoking regulations that were issued under Biden, which required airlines to disclose fees along with airfare. It will also be writing new rules that define a cancellation of flight that allows consumers to receive a refund. (Reporting and editing by Chris Reese, Aurora Ellis, and David Shepardson)
The robotaxi industry will be shaped by the radical differences between Tesla and Waymo.
Elon Musk, the CEO of Tesla, told investors in June that the driverless taxis of the company would be available for "half of the U.S. population" by the end this year.
Alphabet Waymo, the U.S. leader for autonomous ride-hailing, launched a similar service in Phoenix eight years ago. It operates in areas that have about 3% U.S. residents.
Musk's statements about Tesla's robotaxis expanding at a "hyperexponential" rate contrast with Waymo, which takes a deliberate approach before entering new markets. Musk believes Tesla's use of cameras and AI will allow it to scale faster than Waymo, which uses more sensors and high definition mapping. These differing strategies will have a profound impact on the early rankings in the emerging autonomous-driving market. Some analysts and investors believe that the market could grow to a multi-trillion dollar one over the next fifteen years.
Waymo’s expansion plan involves mapping out new cities and gradually introducing autonomous ride-hailing, after testing it with employees and drivers as passengers. Tesla claims its robotaxis are powered by a different autonomous techniqe than Waymo, which allows them to skip much of the tedious preparation work. These cars, which are still in testing, use AI to react to road conditions like a human. Tesla claims that this requires less extensive road testing and mapping.
Musk said in an April conference call that once the technology is able to work in some cities, it can be used anywhere in America. Musk has described Waymo as "fragile" and said its expansion is "limited". Many investors have embraced Musk's vision. Analysts attribute the majority of Tesla stock market value to its autonomous driving capabilities. Investors are betting that Tesla can scale up much faster than Waymo. Robotaxi could be a major growth engine for Tesla if it is successful in its rapid commercial expansion.
We interviewed 12 current and former executives in the industry, as well as regulators, police officers, and city planners, to compare Tesla's initial expansion efforts with those made by Waymo. The differences between their technical and marketing strategies were striking.
Former Waymo executives and current Waymo executives agree that the market-by-market mapping and testing prior to expansion is crucial to ensure safety. This helps factor in the particularities of each city’s roads, such as steep inclines on San Francisco's streets, which make it hard to see ahead.
Aman Nalavade said, "We need to really understand the core components of each of these towns," in an interview. There are a lot more risks involved in getting this wrong.
Musk has also spoken about the importance safety. Musk said in a statement last month that he didn't want to risk anything, so he would proceed cautiously.
Tesla has not responded to any requests for comment.
CONTRASTING TECH
Tesla and Waymo use AI for autonomous driving. Waymo uses a more step-by-step approach, where the system gathers data from high-definition mapping and advanced sensors in order to identify objects and plan its vehicle's route.
Tesla says that its system is more human-like in the way it makes driving decisions. The company claims to use an AI method in which video taken by the car's cameras are interpreted by software, and then instantly translated into driving choices. This is unlike the waymo system.
Waymo experimented with some aspects of Tesla’s approach, but stated in a research report last year that its performance has "challenges" and "limitations". Musk has set a deadline of "millions" of Teslas autonomously driving by the second half next year. This compares to Waymo fleet of approximately 2,000 vehicles. Tesla launched its pilot program in Texas back in June. It is now awaiting approval from Arizona, and it hopes to expand into other states such as Nevada and Florida. Tesla is under pressure to fulfill these promises because its electric vehicle business is facing headwinds. The company's global vehicle sales are down, with a steep drop in Europe. If Musk's robotaxi timeline is not met, it would delay the creation of a new revenue stream.
Waymo, the only ride-hailing company in the United States that offers a fully autonomous service for a fee to everyone, is unique. It is available in parts of Los Angeles and Phoenix, as well as Atlanta, Atlanta, Austin, and San Francisco Bay Area.
Waymo tests its technology in virtual simulators and on closed courses, including a 113-acre California track, before expanding into new markets.
It took more than three year for Phoenix to offer test rides in which a driver was in the driver's seat. In 2020, the public could pay for driverless ride hailing. Waymo took almost four years to open autonomous service at any time in Phoenix's terminals. This was August 2024.
Waymo claims it will reduce the time for testing in new cities, as its autonomous technology becomes more experienced and learns from previous experiences.
Bank of America analysts estimated that Waymo lost $1.2 billion to $1.5 billion in 2017. Analysts expect Waymo to be profitable in the future as vehicle costs drop and ridership increases.
Morningstar analysts predicted in a report published in March that Waymo will have a rapid ramp-up over the next several years, while Tesla's initial robotaxi rollout would be "slower" because its software would not be "ready." Morningstar anticipates Tesla to launch fully-autonomous robotaxis by 2020 and surpass Waymo’s ride-hailing share by the end the decade.
"A HUGE CONCERN"
Even though Waymo has been meticulous in its approach to analyzing new markets, some city officials have complained about the problems it has encountered.
Austin Police Lieutenant William White said that Waymo's vehicles have been known to ignore the hand signals of officers and drive in dangerous situations.
In May, the driver of a Waymo car drove into floodwaters and had to get out. White said that this is a major concern for us. If that person had been killed, we would have faced a serious crime.
A Waymo vehicle repeatedly tried to get around an officer blocking the road during a charity event in downtown Austin last year. White said that the police eventually disabled it by wrapping tape around its sensor.
White explained that Austin police had to develop a new traffic citation system to deal with repeated incidents where Waymo cars froze up and blocked traffic. Since March, the police have issued three traffic citations. The process of issuing citations to a driverless car can be so lengthy that officers often avoid doing it.
White stated that if they pursued it each time, there would have been hundreds of citations.
As the service is still in its early stages, there has been limited interaction between the department and Tesla's Robotaxi service.
Chris Bonelli, a spokesperson for Waymo, said that the company had been "robustly engaged" with Austin fire and police officials for over two years. Waymo "takes all observations and concerns serious" and uses this feedback "to improve our technology," said Chris Bonelli, a Waymo spokesperson.
SOOTHING SKEPTICS Besides technical challenges, autonomous vehicle firms must navigate a patchwork regulations and reassure community leaders who may be apprehensive of driverless cars.
Waymo, for example, began meeting with local officials over a year prior to its launch in March and participated in city-organized meetings, including those with representatives of the Texas School for the Deaf. Before the launch, school representatives rode in Waymo cars.
Peter Bailey, the school superintendent, said that he met with Tesla representatives a few weeks before Tesla's launch in June. He learned of this timing through news reports. A reporter saw a Tesla robotaxi traveling between 40-45 mph near the school in a zone where the speed limit was 35 mph. The sign nearby warned drivers to be aware of deaf pedestrians.
Bailey declined to comment about the community outreach strategies of Waymo or Tesla. He stated that he expected "all drivers to obey posted speed limits, including autonomous cars, and drive with caution in school zones." Waymo's experiences show how different regulations across the country can stymie expansion plans. Washington, D.C., where the company hoped to launch its autonomous vehicle in 2026, is one example. However, it's not clear if the city can pass necessary regulations on time.
Before moving forward, the D.C. City Council waited years for the transportation department to submit a report on recommendations for commercial rules for driverless vehicles. Charles Allen, a councilmember, stated that while the regulations could be ready by 2026, the timeline for their passage is not known.
Waymo hired three outside lobbying companies and circulated online petitions asking residents to "help Bring Waymo to DC!"
D.C. Department of Transportation says Tesla hasn't reached out. Reporting by Chris Kirkham, Norihiko Shrouzu, in Austin, Texas, and Rachael LEVY in Washington. Additional reporting by Abhirup RAY in San Francisco. Editing by Mike Colias, Matthew Lewis.
(source: Reuters)