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US rail regulator finds merger application between Union Pacific and Norfolk Southern incomplete
The U.S. Surface Transportation Board sent Union Pacific's $85 billion merger proposal with Norfolk Southern back to be revised on Friday, saying that it was missing required information. This is part of an ongoing review by the U.S. The STB rejected the application in December, citing a lack of projections on market share and competition impacts. The board denied the application without prejudice and allowed the railroads to re-file once they addressed the deficiencies. Donald Trump publicly supported the merger proposal. The administration tends to 'approve large transactions or impose remedy rather than blocking them outright. A merger of this magnitude was considered unthinkable during the Biden administration's broader crackdown against consolidation. This is the first major proposed?merger of railroads to be reviewed using the more stringent framework that was put in place over?two decades ago. The stricter framework?requires applicants?to prove their transaction will enhance competition, not just preserve it?while delivering demonstrable benefits to the public?interest? The board stated that the railroads had projected growth in traffic and divertions from the proposed coast to coast railroad, but only provided data for 2023, not the projections required showing how the combined carrier’s?share could evolve several years after the merger. The decision follows a filing in January by Canadian National. It argued that there were critical 'competitive disclosures' missing from the application, including a methodology to identify routes where two rails feed into one another and complete lists of 'potentially affected shippers'. Union Pacific and Norfolk Southern submitted their nearly 7,000-page application to the Federal Communications Commission on December 19. They claimed that this combination would increase?service reliability?, divert truck freight onto rails, maintain shipper options, and provide broad public benefits, while protecting union jobs. The STB stated that the ruling it issued should not be interpreted as a guideline for how it would ultimately determine whether a revised application was admissible.
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White House wants to auction off the largest US electric grid in an emergency
The White House urged on Friday the largest 'U.S. The electric grid should conduct an auction for emergency power to prevent rolling blackouts, as the energy demand from?data centres? is growing faster than new generation plants can be built. The Trump Administration initiative calls for PJM Interconnection, a company that serves 67,000,000 customers across 13 states, including Washington, D.C., and conducts an emergency auction to address escalating prices of electricity and increasing reliability risks in the mid-Atlantic area of the United States. PJM announced its own plan on Friday, urging big data centers that they bring in their own generation to avoid having their power supply curtailed at peak demand times. Grid operator PJM also called for a faster interconnection track to be created for state-sponsored projects. At a White House meeting, U.S. Secretary of Energy Chris Wright, and Secretary of Interior Doug Burgum, joined by several state governors, discussed initiatives to accelerate the construction of new?power generators worth more than $15 billion on PJM. PJM has been criticized as being too slow in building a cushion to prevent rotating blackouts when demand increases. The rapid expansion of data centres to power artificial intelligence and other things has stretched PJM's resources, as well as those of other regional U.S. electrical grids. Donald Trump wants to fight consumer price inflation, which could undermine Republican support ahead of the November midterm elections. The White House wants to cap the amount that existing power plants are allowed to charge on the PJM market. The recent PJM auction for the capacity market set new records for power generators, with prices more than 800% above those of last year. This increased electricity prices in homes and businesses. Data centers would be required to pay for new power generation, whether or not they use it. This agreement would require them to do this regardless of whether the data center shows up. BYOG is the concept, which stands for "bring you own generation." PJM said it was reviewing the principles laid out by the White House, and the governors. A PJM spokesperson confirmed that PJM had not been invited to the event. PJM forecasts that grid peak usage during the summer will increase by?about?70 gigawatts up to 220 gigawatts in the next 15years. PJM's record summer peak was 165 Gigawatts. PJM claims that it has?processed more than 170 gigawatts in new generation requests since 2023. Nearly 60 gigawatts have been completed by PJM and either signed generation interconnection agreements or have been offered. RISE IN POWER BILLS HAS?LED TO BACKLASH The rising cost of electricity in PJM region has led to a political backlash and threats from some governors that they will abandon the regional grid. Nine state governors sent an open letter last summer to the PJM Board of Managers criticizing the grid operators for not doing enough 'to address the escalating energy affordability crisis. Pennsylvania Governor Josh Shapiro told the White House on Friday that PJM had been "too damn slow" to allow new generation onto their grid, at a time when energy demand was increasing. Burgum said PJM was lucky to have avoided widespread blackouts so far. Reporting by Jarrett Renshaw, Tim McLaughlin and Timothy Gardner from Philadelphia; editing by Liz Hampton and Matthew Lewis
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Florida road added to Trump's list
The U.S. president Donald Trump renamed a road near his private club in Palm Beach in Florida. This is the latest addition to the 'growing list' of programs, initiatives, and buildings that bear?his? name since he took office in January. The state legislature approved a new honorific name for a part of Southern Boulevard. This road connects Palm Beach International Airport with Mar-a-Lago - Trump's residence and private club. The president's motorcade frequently uses this road to travel between the airport, and Trump's property. Trump described himself as "tremendously honoured" by the recognition. He said: "I will remember this amazing gesture forever." County commissioners have told local media that the name change will not affect official addresses, emergency response system, or government maps. Since re-entering office a year ago, his name has appeared on high-profile Washington structures, a new proposed class of Navy warships and a website for prescription drugs run by the government. Washington is home to many monuments and buildings named after presidents. These honors are often national tributes and authorized by Congress. Trump received the Nobel Peace Prize Medal from Venezuelan opposition leader Maria Corina Machado at a White House Meeting on Thursday. The White House said that Trump intends to keep his medal. However, the Norwegian Nobel Committee stated that the prize could not be transferred, shared or revoked. Some historians see it as an?overficial attempt of the president to cement a legacy that could prove short-lived. Several performers have withdrawn in protest over the renaming Washington's premier performing arts venue to the Donald J. Trump Memorial Center for the Performing Arts and John F. Kennedy Memorial Center for the Performing Arts.
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FAA warns airlines flying to Central and South America about possible military actions
The U.S. Federal Aviation Administration issued a series warnings on Friday to airlines to be cautious when flying over Central America and parts of South America. It cited the risk of possible military activities and GPS interferance. The FAA has issued Notices to Airmen for Mexico, Central America, Ecuador, Colombia, and certain portions of the eastern Pacific Ocean. The agency said that the warnings will begin on Friday and last for 60 days. These warnings are coming amid increased tensions in the region between the United States, and other regional leaders, after the Trump administration?mounted a large-scale buildup of military forces in the southern Caribbean and attacked Venezuela, and captured the country's President, Nicolas Maduro, in a military action. Donald Trump raised the 'possibility of other military action? in the region, including against Colombia. Trump warned last week that drug cartels controlled Mexico, and that the U.S. would strike land targets in order to combat them. This was part of a series threats to use military force to fight against cartels. The FAA curbed flight throughout the Caribbean after the attack on Venezuela. This forced major airlines to cancel hundreds of flights. FAA Administrator Bryan Bedford said earlier this week that there was good coordination between the FAA and the U.S. Military before the Venezuela operation. Last month, JetBlue's (JBLU.O), a passenger jet headed for New York, took evasive action to avoid colliding with a U.S. military plane in mid-air. Air Force tanker plane near Venezuela. JetBlue Flight 1112 was departing Curacao and flying approximately 40 miles (64km) off the coast Venezuela when an Airbus plane, (AIR.PA), reported that it had encountered the Air Force jet. The Air Force jet's transponder wasn't activated.
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European regulator warns airlines against flying in Iranian airspace
After simmering tensions arose over the 'deadly crackdown' on Iranian protests, and U.S. threats of 'intervention', the European Union's aviation regulator recommended that airlines in its bloc'stay out' of Iran's 'airspace'. In a bulletin, the European Union Aviation Safety Agency stated that "the presence and potential use of a variety of weapons and air defence systems combined with unpredictable responses from states... creates high risks for civil flights at all levels and altitudes." The protests began in Iran on December 28 due to economic hardships. They grew into large demonstrations demanding the end of the clerical regime, which culminated in violence last week. Crackdown on the crackdown It is a verb that means to have Residents said that the protests have been largely quelled for the time being, while state media reported more arrests, in light of the repeated U.S. threat to intervene should the killings continue. EASA's warning said that due to the ongoing tensions, and the possibility of U.S. military intervention, Iranian air defence forces are on high alert. This has increased the likelihood of misidentification in Iranian airspace. Reopened After a nearly five-hour-long closure due to fears of military action, airlines were forced to cancel or delay flights. According to flight tracking data, European airlines such as Wizz Air and British Airways, Lufthansa, and British Airways, continued to avoid Iran and Iraq despite the re-opening of airspace on Thursday. A surface-to air missile fired by Iran in January 2020 brought down a plane. Ukrainian passenger plane All 176 victims were killed abroad. The Iranian authorities blamed human error for the incident, which occurred amid tensions between Iran's military and that of the United States. Reporting by Gursimran K. Kaur, Editing by Mark Potter & Cynthia Osterman
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Musk and Ryanair CEO clash about cost of Starlink Wi-Fi
Elon Musk called Ryanair CEO Michael O'Leary on Friday an "utter idiot", who should be fired. The spat began when?the airline chief refused to install Musk's Starlink?internet on Ryanair planes. O'Leary dismissed on Wednesday the idea of equipping Ryanair's 600+ jets with Musk's Starlink. Citing the fuel cost impact from the drag caused by the antenna, O'Leary estimated that the service could cost the airlines as much as $250 million per year. Musk replied on his social media platform X by claiming that O'Leary had been "misinformed", and arguing Ryanair didn't know how to measure?fuel consumption of Starlink equipment. During a later interview with Irish?radio Station Newstalk, he said that Musk knew "zero", about drag and aviation, and called the U.S. millionaire "idiot." He also described X as a 'cesspit'. Musk, whose SpaceX company operates Starlink on Friday, responded. "Ryanair's CEO is a complete idiot." Fire him." Musk?posted a message on X. Musk responded, "Good idea." When a fan suggested Musk buy Ryanair to replace O'Leary with himself. Starlink is a network that uses thousands of satellites in low-Earth-orbit to deliver faster and more reliable WiFi onboard aircraft. Starlink is being rolled out by more than a dozen airlines, including United Airlines and Qatar Airways. Analysts believe that Starlink is a premium offering, which will appeal to full-service and long-haul airlines. Financial terms are not disclosed. (Reporting and editing by Alistair Bell; Reporting by Joe Brock)
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WestJet will no longer offer non-reclinable seats in its economy class after complaints
WestJet Airlines announced on Friday that it would eliminate non-reclinable seats in economy class on a number of Boeing 737 aircraft. This decision was made after a slew complaints and 'videos posted on social media of passengers with their knees pressed against the seat ahead. After reviewing data from operations and the feedback of travelers, the Canadian carrier announced in a press release that it would return to its previous standard economy seat configuration. WestJet's decision to reconfigure seats in its planes last year?to allow for larger premium seating at the front?was widely seen as a test on the limits of the add-on culture. Economy seats that can be adjusted are still available, but they cost extra. The videos of passengers with cramped leg problems were posted on social media in January, even though WestJet, owned by Onex Corp. and WestJet, had paused their rollout last month. The pitch (the space between rows of seats) was reduced from 30 inches to 28 inches in order to accommodate an additional row of seating. WestJet CEO Alexis von Hoensbroech said in a statement that the airline tried to offer seat pitches which are used by many airlines worldwide. They do this because they provide low-cost airfares. "At the?same time, it's just as important to respond quickly if the seat pitches don't meet our guests needs." Pilots and flight attendants also reacted negatively to the move, voicing concerns about comfort and safety. They also questioned whether passengers could safely escape from a plane in an emergency. Alia Hussain is the president of the union local that represents WestJet cabin staff. She said she was pleased with WestJet’s decision to "reverse course" on Friday. Flight attendants received numerous complaints from angry travelers and had to move some tall passengers' seats in some cases. She said, "It created an hostile working environment for cabin staff." (Allison Lampert, Montreal; Editing and design by Chris Reese).
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Black Sea CPC crude oil offers dropped amid drone strikes
LONDON/MOSCOW - According to trade sources the offer prices for Caspian Blend crude oil have dropped dramatically this week. This is because drone strikes in the Black Sea continue to impact exports of the grade, and also weather-related delays. ExxonMobil is a shareholder in the Caspian Pipeline Consortium and offered a cargo of 120,000 metric tons CPC Blend at $1.35 per barrel less than benchmark Brent on Thursday in Platts Window, an oil index publisher S&P Global Commodity Insights service. The offer was withdrawn because no buyers came forward. The U.S. major oil company had discounted the same cargo by 40 cents a day earlier, which was described as a good deal compared to the current market prices. Kazakhstan has urged Europe and the U.S. to help secure oil exports. This is after unidentified drones struck two oil tankers in the Black Sea on Tuesday, one of which was chartered Chevron. CPC Blend is used by many European refiners. Another trade source stated that the company had not ordered the suspension of purchases. CPC is responsible for around 1.5% global oil supplies and 80% of Kazakhstan’s?oil imports. CPC's regular clients include European and Asian firms as well as a few Asian refiners. CPC Blend 'loadings' are now taking place at one of three single-point moorings (SPM-1), as SPM-2 has been taken offline due to a drone strike by Ukraine in November. Maintenance works on SPM-3, however, have been delayed because of weather since December. CPC doesn't usually comment on terminal operations and has previously declined to comment on recent drone strikes. Reporting by journalists in London and Moscow. (Editing by Alex Lawler, Mark Potter and Mark Potter).
PJM announces plan to combat AI-driven surge in power demand
Grid operator PJM Interconnection unveiled a plan on Friday to manage'surging power 'demand from data centres that are required for Big Tech’s artificial intelligence expansion. This comes after the White House urged immediate action to avoid potential blackouts.
PJM Interconnection announced that it plans to require large power users?to either bring their own generation or?enter a connect-and-manage framework subject to an early curtailment.
The White House had earlier in the day urged the largest U.S. power grid to conduct an emergency auction to prevent rolling blackouts, as the energy demand for data centers is growing faster than the nation can build new generation facilities. PJM controls a large part of the 'power flow' in 13 states, mainly in the Mid-Atlantic region, including the 'largest concentration in data centers, in Virginia. Other?states are also becoming hubs for server storage. PJM’s board stated that its plan 'would focus on bringing a new?power generator online quickly, and would be coupled to options for new load customers whose energy demand can be curtailed if necessary. Reporting by Laila Mukherjee and Anushree Mokherjee from New York; Editing by Leroy Leo, Lisa Shumaker
(source: Reuters)