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Pegasus, a Turkish airline, signs a 154-million euro deal with Smartwings and Czech Airlines.
Pegasus Airlines, a Turkish airline, announced on Monday that it had agreed to buy Czech Airlines and its subsidiary Smartwings for a total of 154 million Euros ($180 million). The deal is part of an expansion plan. In a KAP statement, Pegasus announced that it had reached an agreement with Prague City Air for the purchase of its stakes in CSA and Smartwings, as well as its subsidiaries. The debts of the two companies were included in the 154 million euro figure. Pegasus stated that the strategic investment would help to expand Pegasus's global reach and strengthen its presence in Europe. Pegasus' shares rose 3% on Monday in Istanbul. Pegasus stated that the completion of the deal depends on obtaining necessary approvals in Czech Republic and in other countries where Smartwings Group is active. The transaction should be completed in 2026. Smartwings is the largest leisure airline in the Czech Republic. It has air operator certificates in Czech Republic and Slovakia as well as Poland, Hungary and Czech Republic. The company offers 80 destinations across 20 countries. Smartwings' and Czech Airlines fleets have 47 aircraft. Smartwings is expected to generate around 1 billion euro in revenue by 2024. Pegasus operates 127 aircraft that fly to 158 destinations across 55 countries.
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Draft shows that the EU will intervene to solve power grid bottlenecks
According to documents seen by the, the European Union is planning to increase efforts to develop cross border energy infrastructure. The aim is to reduce costly bottlenecks and speed up construction of new grids. The EU has invested heavily in renewable energy that is low-cost, but the grid upgrades and expansions have not kept pace. Wind and solar power output are being curtailed in order to prevent overloading of networks, waste electricity, and increase costs for consumers. According to the draft proposal due to be published on Wednesday, to address this issue, the European Commission is developing a centralised EU Plan for cross-border electrical infrastructure, and working with grid operators and businesses to get projects underway. Lack of grid investment is a major factor in Europe's high electricity prices. These are up to three times higher than those in China or the U.S. This is a common complaint among industries who claim that these bills reduce their competitiveness. The draft document stated that "grid development can provide real added value to Europeans and save them money." The document said that investing five billion euro in grids could save eight billion euro on the cost of the entire power system. The draft states that outdated networks are driving up energy bills. If the EU does not act, grid constraints could force the EU to reduce renewable power production by as much as 310 terawatt-hours (TWh) in 2040. Official data shows that EU households consumed 691 terawatt hours (TWh) of electricity in 2023. The second draft of the EU legal proposal revealed that the Commission would propose changing EU laws to allow governments to exempt grid project from environmental impact assessments. This was based on long delays which can cause projects years of delay. Environmental permits would not be required for small-scale storage and renewable energy projects. A spokesperson for the Commission declined to comment. All changes to EU law would need approval from EU legislators and countries. The proposal also reduces the deadlines by which authorities must approve grid permits. This includes a limit of six months for new charging stations for electric vehicles. The move is designed to reduce the long delays experienced in some EU member states.
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German warship manufacturer TKMS warns of a possible fall in profit by 2026
TKMS, a German submarine and frigate manufacturer, gave a muted forecast for the fiscal year 2026. It highlighted its dependence on large orders and payment schedules which can sometimes span several years. The company, spun off in October from its parent Thyssenkrupp, is expecting an adjusted operating profit between 100 and 150 million euros (117 to 175 million dollars) for the fiscal year that ends in September 2026. This compares to 131 million in 2025. In a poll conducted by the company, analysts predicted an operating profit adjusted of 143 millions euros in 2026. TKMS is benefiting from a boom in demand for defense suppliers. This surge has been driven by a shift in U.S. policy, which puts greater pressure on Europe, to strengthen its own defences, against Russia that continues to wage war on Ukraine. The order backlog of TKMS has increased to 18.2 billion Euros at the end September - more that tripling in the last five years. Oliver Burkhard, CEO of TKMS, said that TKMS's business model is long-term and its order backlog robust. We continue to see great future potential." Reporting by Christoph Steitz, Editing by Sumana Nady and Ludwig Burger.
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India's Indigo continues to struggle as travel disruptions cause flight delays
IndiGo shares fell 4.8% Monday. They are on track for their worst session in over a month, and have now lost seven sessions. A staffing crisis caused mass cancellations of flights and travel disruptions. IndiGo, India’s largest airline based on market share, is suffering from its worst operational crisis. A pilot shortage compounded with inadequate planning of new rules for crew working hours led to thousands of cancellations in the last week. This left passengers stranded at airports, and forced the Indian government to step in to stop a sharp rise in air fares. The civil aviation regulator gave the company 24 hours on Sunday to explain its position and avoid regulatory action. SpiceJet shares rose 13.9%. IndiGo's shares fell 9% last week, their biggest weekly decline since June 2022 when an increase in COVID-19 cases impacted air travel demand.
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What are the differences between the militaries of Cambodia and Thailand?
Thailand's military has announced that it launched airstrikes along its disputed border, with Cambodia. Both countries had accused each other of violating a ceasefire mediated by U.S. president Donald Trump. Thailand suspended its de-escalation measure last month after a Thai army soldier was injured in the latest of a series of incidents that involved landmines, which Bangkok claims were laid by Cambodia. Cambodia denies the accusations. Budgets and Ground Personnel In 2024, Cambodia had a defense budget of $1.3billion and 124.300 active military personnel. The Armed Forces were formed in 1993 by merging the former Communist military of Cambodia with two other resistance arms. The largest of these is the Cambodian Army, which has around 75,000 soldiers and more than 200 battle tank, along with 480 pieces artillery. Thailand is classified by the U.S. as a major non NATO ally. It has a well-funded, large military with a budget of $5.73billion in 2024. There are also over 360,000 active members. The Thai army is composed of 245,000 soldiers, including 115,000 conscripts. It also has 400 battle tanks, more than 1,200 armored personnel carriers, and 2,600 artillery guns. The army's fleet includes passenger planes, Black Hawk helicopters (made in the USA) and unmanned aerial vehicle. Air Forces The Cambodian air force is composed of 1,500 personnel and a fleet that includes 10 transport aircrafts and 10 helicopters. The country does not have any fighter aircraft, but it has 16 multi-role rotorcraft including six Soviet Mi-17 helicopters and 10 Chinese Z-9 helicopters. Thailand's air force is one of the most well-equipped and best trained in Southeast Asia. It has an estimated 46,000 people, 112 combat aircraft including 28 F-16s, 11 Swedish Gripen fighters and dozens helicopters. NAVIES The Cambodian Navy has a total of 2,800 personnel including 1,500 naval soldiers, 13 patrol and coastal battle vessels, and one amphibious landcraft. Thailand's Navy is larger than most, with 70,000 members, including marines, naval aviation, coastal defense, and conscripts. The fleet consists of one aircraft carrier and seven frigates. There are also 68 patrol vessels and coastal combat ships. Thai naval forces also include amphibious landing ships that can hold hundreds of soldiers each, as well as 14 smaller landing craft. Thailand's Naval Aviation Division has its own fleet, including UAVs and helicopters. It also has a Marine Corps with 23,000 personnel and dozens of armed combat vehicles. (Compiled by Devjyot Ghoshal, edited by Michael Perry).
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Britain revamps its power grid to eliminate 'zombie projects'
The National Energy System Operator in Britain will give priority to grid connections for the most viable projects of power generation and energy storage as part of a massive overhaul. Britain's goal is to decarbonise the power sector largely by 2030. This will require connecting many more renewable energy plants, such as solar and wind, to the electrical grid. The government also stated that it wanted the country to be a "superpower" in artificial intelligence, which would require grid connections for data centres with high power consumption. The new system replaces the first-come-first-served model that created a line of over 700 gigawatts worth of projects waiting to be connected - more than four times what Britain needs in order to reach its clean energy targets for 2030. Kayte O'Neill said that the changes would reduce grid bottlenecks, by prioritising projects ready to build, and giving certainty as to when and where these projects can be connected. This will unlock billions of dollars in clean energy investments. The new process will allow projects that have planning permissions, land rights, and are aligned with the national energy goals to be connected faster. Approximately 3,000 grid connections were evaluated. 132 GW was identified as being crucial to meeting the Clean Power 2030 government target. A further 151 GW is needed by 2035. NESO announced that 99 GW more projects, including data centres, which require power from the grid will be given priority for connection. It said that more than 300 GW will not be advanced because they have failed to demonstrate readiness, or alignment with the national objectives. Ed Miliband, Britain's energy secretary, said that the government inherited a "broken system" whereby zombie projects were allowed by the government to block grid connections for viable project. NESO stated that the reforms are the result of months of collaboration among NESO and network operators, government officials, industry, Ofgem, and regulators. (Reporting by Susanna Twidale, Editing by Kirby Donovan).
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Bloomberg News reports that Brookfield and GIC are close to a binding offer for National Storage.
Bloomberg News, citing sources familiar with the situation, reported Sunday that Brookfield Asset Management (BAM) and Singapore's GIC were close to making a binding bid for National Storage REIT. The deal could value the Sydney listed company at around 4 billion Australian Dollars ($2.65 billion). The report stated that the parties were finalizing the details of the deal, which could be announced as early as Monday. Brookfield and GIC had also made good progress in their due diligence process on National Storage. The report states that the price for the binding offer will likely be the same in November as the conditional offer. Could not verify immediately the report. National Storage REIT announced last month that it received an A$4.02 Billion buyout offer by a consortium consisting of Brookfield, Singapore's GIC and other companies. This would have been the largest real estate privatisation in Australia. ($1 = 1,5067 Australian Dollars) (Reporting and editing by Andrea Ricci in Bengaluru)
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Canada's Air Transat suspends flights after pilots union strikes notice
Transat AT, a Canada-listed tour operator, announced on Sunday that Air Transat, Canada, will suspend its flights from December 8 to 9 after receiving a 72-hour notice of strike by ALPA, the union which represents the 700 pilots at the company. Air Transat's pilots may begin their strike as early at 3:00 am. Air Line Pilots Association said that the strike would begin at 3:00 AM ET on December 10. The Canadian leisure carrier deemed the strike announcement "premature", given the progress made at the bargaining tables. It said that it had offered compromises including a salary increase of 59% over five years, and improved working conditions. Bradley Small, Chair of the Air Transat Master Executive Council, said: "There's still time to avoid striking, but unless there are significant improvements at the bargaining tables, we may strike to get a modern contract." Transat AT reported that Air Transat was working with the union in order to avoid a strike, but it will stop all operations on December 9th to ensure passengers and crews are not left stranded. Transat AT Inc. offers Air Transat as a brand. Reporting by Abu Sultan in Bengaluru and Shivani Tana; editing by Andrea Ricci
Major Gulf markets decline ahead of Fed meeting
The major stock markets in the Gulf experienced a quiet Monday with little trading, despite expectations of a U.S. Federal Reserve rate cut in this week.
After three months of steady growth, U.S. consumer expenditures rose modestly in September. This suggests that the economy lost momentum at the end third quarter due to a lacklustre job market and rising costs of living.
The Fed's dovish comments have further fueled expectations for monetary ease.
CME's FedWatch shows that markets have priced in an approximate 88% chance for a rate cut of 25 basis points at the Fed meeting this week.
The Fed's position has implications for Gulf economies where most currencies are pegged with the U.S. Dollar, making it a stable anchor for regional currency.
Saudi Arabia's benchmark index of stocks edged up 0.1%, thanks to a 0.3% increase in Saudi National Bank. The bank is the largest lender by assets.
Saudi Aramco, the oil giant, was up 0.4%.
The possibility of lower interest rates for Americans, coupled with geopolitical uncertainties that could limit supply from Russia and Venezuela, supported oil prices.
Even after the recent recovery, crude prices are still near multi-month lows. This puts pressure on the fiscal accounts of oil-dependent Gulf countries through lower revenues.
Dubai's benchmark index of stocks was flat. The index in Abu Dhabi fell 0.1%.
Qatar Navigation retreated 1.3%, while the benchmark Qatari fell 0.2%.
(source: Reuters)