Latest News
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Aster and Aether Fuels will build a renewable fuel plant on Singapore's Bukom island
Aster Chemicals & Energy and Aether Fuels have partnered to build a renewable-fuels facility on Singapore's Bukom island, which is expected to start operating in 2028. Conor Madigan, CEO of Aether Fuels, told reporters that construction on the project to produce 2,000 tons per year (50 barrels a day) is expected to start in the second quarter of 2019. Commercial production could begin as early as 2028. Madigan stated that the sustainable aviation fuel (SAF), or bionaphtha, production will reach 400 tons per year when the plant is finished. Aether Fuels has developed a technology that will be used to convert industrial waste gases and biomethane, according to a joint statement. Aster will supply renewable energy, waste carbon as a feedstock, utilities and support on the site where it operates the Bukom refinery. The companies refused to comment on whether the project was worth investing in. Neste, a Finnish company, is currently the only producer of renewable fuels (fuels that are made from renewable sources) in Singapore. It operates a plant in Tuas, which produces 1 million tpy. Singapore will implement a 1% SAF usage for all departing flights from next year. The tax on consumers will be applied to tickets and services starting April 1, next year. (Reporting and editing by Trixie Yap)
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Fraport reports a profit increase, but reduces the 2025 passenger estimate at Frankfurt Airport
Fraport, the operator of Frankfurt Airport, reported on Tuesday a 22.6% increase in its core earnings for the third quarter. This was largely due to a reduction in personnel costs resulting from a pension refund. Jefferies, a financial research firm, reported that the German company's quarterly earnings were 593.1 millions euros ($691.7) - well above the analysts' consensus estimate of 533million euros. Fraport has confirmed its financial forecast for the year. However, it expects 63 million passengers will fly via Frankfurt by 2025. This is down 1 million from the previous estimate. The company reported that the number of passengers at Germany's busiest airport was 87.8% below the levels seen in the first nine month of 2019. The report said that this underperformance was due to "excessively expensive" costs for aviation security, regulatory costs and air traffic charges. Fraport said that passenger numbers in the entire group had returned to levels seen before the pandemic, and airports such as Greece, Peru, and Antalya were well above the 2019 volume.
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Garuda Indonesia says it has reduced its equity investment by $400 million.
The asset management unit of the sovereign wealth fund Danantara Indonesia will provide a capital injection of $1.4 billion to Garuda Indonesia. This is a decrease of $400 million compared to what the company had previously disclosed. The Indonesian flag carrier announced last month that Danantara would inject about $1.8 billion cash, and that the loans from the wealth fund would be converted into equity. In a filing on Tuesday, Garuda stated that the private placement would be around 23,67 trillion rupiah (1,43 billion dollars). The money will be used for fleet maintenance as well as a funding boost for Garuda’s low-cost airline, Citilink. Garuda explained the reduction in an earlier filing. Danantara Indonesia didn't immediately respond to an inquiry for comment. Garuda Indonesia has been forced to restructure their debt after the COVID-19 outbreak. $1 = 16,570,0000 rupiah (Reporting and editing by Thomas Derpinghaus; Reporting by Stanley Widianto)
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Sources say Sinopec Luoyang Petrochemical has shut down its crude unit for maintenance.
Three sources familiar with this matter have confirmed that China's Luoyang Petrochemical (a subsidiary of the state-owned refinery giant Sinopec) has closed two crude oil units until the end November for maintenance. Two sources confirmed that the two crude units with a processing capacity of up to 200,000 barrels per day were closed at the end of October. The U.S. sanctions against a major terminal in eastern China, through which Sinopec imports a fifth its crude oil, forced cargo divertions and affected operations at subsidiary plants that were connected to the terminal by pipelines. Traders have reported that the Luoyang Refinery in central Henan Province was one of the worst affected. Two of the sources stated that Sinopec took advantage of the opportunity to shut down these units for maintenance, while trying to find ways to sort crude deliveries into the plant. Sinopec didn't immediately respond to an inquiry for comment.
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Air Current reports that Boeing has been given the go-ahead to begin next phase of certification trials for the 777X.
The Air Current reported Monday that Boeing was given approval by the U.S. Aviation Regulatory Agency last week to start the third phase of certification flight testing for its 777-9 Wide-body Jet. According to people familiar with the program's progress, the aviation industry publication said that this was the biggest round of evaluations ever for the long delayed aircraft program. Air Current's report could not be verified immediately. Boeing and the U.S. Federal Aviation Administration have not responded to'requests for a statement. Boeing's wide-body strategy is based on the 777X, which was previously dominated by Boeing's 747 and its 777 jets. The repeated delays in certification and production have delayed deliveries by several decades, adding more than $15 billion to the costs and putting pressure on the company's finances. As international travel recovers, Airbus' rival A350 has an opportunity. Boeing's earnings report for last month revealed that it had delayed the delivery of its long-delayed program 777X to 2027, and taken a $5 billion charge larger than expected. Boeing updated its assessment of 777-9 certification timeline and predicted that the first delivery would be in 2027. The FAA approved the long-awaited increase in 737 MAX production from 38 to 42 aircraft per calendar month.
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When will US air travel return to normal? Not this week
Air travelers in the United States will still have to endure a few days of delays and cancellations before things return to normal. Federal Aviation Administration (FAA) has instructed airlines to reduce 4% of their daily flights at 40 major airports starting last week due to safety concerns regarding air traffic control. The Federal Aviation Administration has mandated that flight reductions reach 6% by Tuesday, and then 10% by Friday November 14. Transportation Secretary Sean Duffy warned that they could reach up to 15% or 20% if there is no end to the shutdown. If lawmakers restore federal funding this week, the government could reopen, but when flight reductions will be lifted is not clear. Flyers are also faced with daily delays of thousands due to the increasing absence of air traffic controllers. The longest shutdown in U.S. History has forced 13,000 air-traffic controllers and 50,000 Transportation Security Administration (TSA) agents to work for free. Air traffic delays and cancellations affected more than 1.2 millions U.S. airline customers on Saturday and Sunday. It could take several days for the air traffic to return normal after the shutdown. Chris Sununu is the former New Hampshire Governor who runs Airlines for America. He told CNN Monday that "a difficult week still lies ahead." The FAA has still mandated cancellations that will increase over the next week. He added: "But, keep your holiday plans." By Thanksgiving and Christmas, the system will be operational and stable. What will happen to this week's flight choppings? When will the FAA lift the flight reductions required by the government? Duffy said that he wants to improve air traffic control and safety data before removing the current targets. Last week, the FAA reported that between 20% and 40% of air traffic control officers at 30 major airports were not present on any given day. American Airlines reported on Monday that the lack of staffing in air traffic control at the weekend caused delays and cancellations for 250,000 customers. The FAA told airlines that they could get their controllers' back pay about 24 hours after shutdown ended. It does not mean that all controllers will return to work immediately. When will delays start to disappear? On Sunday, the third day that government-mandated flight restrictions are in effect, airlines canceled or delayed 2,950 U.S. domestic flights. Around 800 flights were affected by the FAA's flight reductions to top 40 airports. However, major airlines had to cancel more than double that number on Sunday as a result of staffing problems in air traffic control. The delays won't end until the air traffic controllers are paid again. The shutdown will continue this week and air safety workers will miss yet another paycheck. This may lead to more people calling in sick to take on second jobs like driving for Uber, or making deliveries for DoorDash to earn money. It could impact air travelers during Thanksgiving, which is one of the busiest travel periods of the year.
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Abra Group to acquire Chile's Sky in the latest Latin American aviation reshuffle
Latin American airline holding Abra Group said on Monday it has reached an agreement-in-principle for Chilean low-cost carrier Sky Airline to join the group, which already includes Brazil's Gol and Colombia's Avianca. This move comes after Abra announced last month that it planned to make an initial public offering (IPO) in the United States. It further consolidates Abra as one of Latin America's largest airline groups, competing with Chile-based LATAM Airlines. Abra was formed in 2022 when Gol and Avianca announced their merger under a single roof. Abra holds a strategic stake in Spain's Wamos and had a convertible debt that represented a minority share in Sky. Abra and Sky submitted documents to the competition authorities in order to obtain regulatory approval for this transaction. The holding added that Sky would keep its brand under the agreement. Abra Group CEO Adrian Neuhauser said, "Bringing Sky to the group will enable us to continue strengthening our region's aviation market." Abra announced that it would consolidate Sky's ownership at the closing of the transaction, and the majority shareholders in the Chilean airline will become minority shareholders of Abra. Sky's Holger Paulmann, its president, will continue as its chairman. No financial details are disclosed. Paulmann stated that the deal will bring Sky's customers more options and routes, as Abra has more than 300 aircraft in its fleet, including both Boeing and Airbus jets. Sky was established in the early 2000s. It operates a fleet Airbus A320/A321neo with subsidiaries in Chile, and Peru. It serves over 40 destinations across the Americas. Gabriel Araujo reports.
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CANADA-CRUDE-Discount on Western Canada Select widens
On Monday, the discount between West Texas Intermediate and Western Canada Select futures (the North American benchmark) widened. CalRock reported that WCS for Hardisty, Alberta delivery in December settled at $11.70 per barrel below the U.S. benchmark WTI. This compares to Friday's closing price of $11.65. Since September 1, the differential has traded in a narrow band between $10.25 to $11.70 below WTI. Analysts have noted a strong demand for Canadian crude oil off the Pacific Coast via the Trans Mountain Pipeline, particularly from China. The Gulf Coast also bought more Canadian barrels than usual to re-export. This was in response to the additional sanctions against Russia. * Oil prices rose globally on Monday, as analysts focused their attention on the potential disruption of fuel supplies from new U.S. sanction and Ukrainian drone strikes on Russian refineries. However, predictions about a crude surplus held gains in check. (Reporting from Amanda Stephenson, Calgary; Editing Alan Barona).
Rubio to take up Trump's Panama gambit, migration crusade in Latam go to
When Marco Rubio shows up in Latin America this weekend on his first foreign trip as Donald Trump's secretary of state, he'll find a region reeling from the new administration's shockandawe approach to diplomacy.
In the first days of Trump's 2nd term, the brand-new president has actually doubled down on his intent to recover the Panama Canal, angered Brazilians by returning migrants in shackles and briefly imposed squashing sanctions and tariffs on Colombia in a tussle over deportee flights.
Rubio's very first stop will be Panama City as the Trump administration shifts back Washington's focus to Latin America, intending to counter the already extensive Chinese influence in the region and stem migration.
The first Latino secretary of state, Rubio has already indicated that the State Department will contribute in assisting Trump achieve his policy to suppress mass migration and the topic will be front and center as he advances to El Salvador, Costa Rica, Guatemala and the Dominican Republic.
The Trump administration has actually stepped up deportations, sending out migrants in military airplane to Latin American nations, including Guatemala. The flights sparked a brief spat with Colombia on Sunday after President Gustavo Petro refused to enable two military airplanes to land, before later on agreeing to send Colombian aircrafts to restore deportees.
Kevin Whitaker, a former U.S. ambassador to Colombia, said Trump's immediate imposition of tariffs as well as rarely utilized sanctions and visa constraints versus Colombia, a longstanding U.S. ally, in action signified to nations in the area how seriously the Trump administration is taking migration.
The message it sent out is how prepared the Trump administration is to use these tools, Whitaker, now at the Atlantic Council think tank, said in a call with press reporters.
Trump has indicated he wants to reassert U.S. dominance over the Western Hemisphere, saying Washington likewise requires to manage Greenland, an autonomous area of Denmark - an aspiration steadfastly rejected by Danish and Greenland officials - alongside his risks over the Panama Canal.
Rubio, the kid of Cuban immigrants and a fluent Spanish speaker, is a longtime hawk on Cuba and Venezuela policy.
During Trump's first term, he was a driving force behind a. rollback of predecessor Barack Obama's historical rapprochement. with Cuba and likewise played a major role in crafting a maximum. pressure campaign against Venezuela, consisting of sweeping. sanctions on the OPEC country's energy sector.
MIGRATION FOCUS
Right away after taking workplace, Trump declared a nationwide. emergency situation at the U.S.-Mexico border, prohibited asylum for people. fleeing conflict in their home countries and issued an order. that efforts to block the children of some immigrants from. ending up being U.S. citizens.
Rubio quickly took up the mantle.
Our diplomatic relations with other nations, especially. in the Western Hemisphere, will focus on securing America's. borders, stopping illegal and destabilizing migration, and. negotiating the repatriation of unlawful immigrants, Rubio stated. in a note setting out his top priorities.
Rubio could utilize his journey to press so-called 3rd nation. contracts, in which countries accept people of other nations. deported by the United States, as well as smoothing the method for. more deportation flights returning migrants to their own. nations, experts said.
Cuba and Venezuela have wintry relations with the U.S. and have actually considerably limited the number of deportees they are. going to accept, so Trump's administration will likely require to. find other countries to accept them-- possibly consisting of some. of the countries on Rubio's itinerary.
These are the locations Trump probably believes he can push. into taking these deportees from other countries, said Will. Freeman, a fellow for Latin America research studies at the Council on. Foreign Relations.
CHINA TENSION
Rubio's talks with Panama will take place in the shadow of. Trump's dangers. The president throughout his inauguration promised. that the United States would reclaim the Panama Canal however has. given no additional details on when or how he intended to recover. the canal - which is the sovereign area of a close partner.
Trump has actually blasted the fees U.S. shipping pays to use. the canal but seems most animated by the participation of a. Chinese company in its operations. The State Department's. representative stated the journey would partly have to do with countering. China in the region.
At his Senate verification hearing earlier this month,. Rubio said it might be argued that the terms of the U.S. arrangement with Panama that the canal can not be committed a. foreign power had been breached since of the participation of. Chinese business.
In reality, a foreign power today possesses through their. companies, which we know are not independent, the ability to. turn the canal into a choke point and a minute of conflict. And. that is a direct threat to the nationwide interest in security of. the United States, Rubio said.
U.S. Senators on Tuesday took part revealing alarm over. China's role in the canal, consisting of a Chinese business's work on. a bridge across the canal, and stated it positions risks to U.S. national security.
The Panamanian government has vehemently denied delivering. operation of the tactical waterway to China and insists it. administers the canal relatively to all shipping.
Isaac Kardon, senior fellow for China research studies at the. Carnegie Endowment for International Peace said he thought. there was area for contract-- something that would satisfy. Trump as a win without being disruptive.
I envision Rubio is going to be far more nuanced and I. think there's a little bit of a good police, bad cop style of. diplomacy underway, Kardon said.
Critics have actually implicated Trump of modern-day imperialism in his. hazards over the canal and Greenland, suggesting such rhetoric. could encourage Russia on its war in Ukraine and provide. validation to China if it decides to invade self-ruled. Taiwan.
China has in recent years gained financial and diplomatic. impact in Central America, where countries including Panama. have in current years stopped acknowledging the democratically. governed island of Taiwan, falling in line with Beijing's view. that Taiwan is China's territory.
(source: Reuters)