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Air India CEO promises improvements in first public remarks after deadly crash
Air India's CEO pledged on Wednesday to improve its internal practices following a plane crash that killed 260 people in June. In his first public remarks about the accident, he stated that it would lead to a challenging year for the airline. Since the crash, the Tata Group's airline has faced intense scrutiny. From warnings about running planes before checking emergency equipment, to failing to change engine parts on time, to falsifying records and other lapses relating to crew fatigue management. Campbell Wilson, CEO of Aviation India in India's capital, said: "We are always looking for ways to improve." This was the first public statement made by Wilson since the Boeing Dreamliner crash in Ahmedabad. He added, "This year is going to be challenging for business. We are also working with investigators." AIRSPACE CONSTRAINTS In an interim report published earlier this year, India's air accident investigating agency stated that the fuel engine switches on the plane had been switched from run to off almost simultaneously just after takeoff. Air India is also facing delayed jet deliveries, and closures of airspace due to geopolitical conflicts. This has weighed down on its performance while it tries to recover from the accident. In May, India and Pakistan engaged in their most intense military conflict for decades. The conflict was sparked off by a terrorist attack in Indian Kashmir on Hindu tourists that left 26 dead. New Delhi claimed Islamabad supported the attack. Pakistan denied this. Since then, the two nuclear-armed neighbors have closed their airspace to each other. Wilson stated that "Airspace restrictions are a challenge for on-time performance." Reporting by Abhijith Gaparavam. Writing by Hritam Mukherjee. Aditya K. Kalra, Mark Potter and Aditya K. Kalra edited the book.
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Russia allows state-owned firms to purchase stocks and bonds in order to boost the market
The Russian government allowed state companies like nuclear monopoly Rosatom and Russian Railways to purchase shares and bonds with their surplus cash on the market, in an effort seen as a boost to the stock market after the latest round U.S. sanction. According to the data provided by the exchange, the MOEX index for Russia will be down 12.5% by 2025 due to the high interest rates that increase the appeal of deposits in banks, and the pressures from Western trade measures. The Finance Ministry stated in a press release that "the implementation of the resolution" will increase the participation of state-owned corporations and state corporations to invest in the Russian Stock Market. Retail investors dominate the market The Russian stock market is dominated by retail investors since the exodus from foreign investors that followed Russia's "special military operations" in Ukraine. Meanwhile, the Moscow Stock Exchange has been subject to Western sanctions. The President Vladimir Putin has ordered the authorities to increase the capitalisation of stock markets to 66% of GDP by 2024, from 27%. However, companies are reluctant to buy shares because they believe the market is still too small. Data on the website of the exchange showed that the stock market index increased by 1.2% on Tuesday. Analysts said this may encourage companies to raise equity funding, though some stressed that bank deposits still looked more attractive in the short-term. In a research report, analysts at IFK Solid said that this was a long-awaited event for the Russian financial market. It could change the balance and allow smart money to dominate retail investors. (Reporting and writing by Elena Fabrichnaya, Editing by David Holmes).
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India considers $12 billion plan to bailout state power distributors
India is considering a rescue package of more than 1 trillion rupees (12 billion dollars) for state-run companies that are heavily indebted. According to three Indian government officials, and a document describing the plan developed by the Indian Ministry of Power, in order to receive bailout money, states must privatise and transfer their electric utilities, and either keep managerial control, or transfer it, but list them at a stock market. The plan is the most ambitious reform effort yet by Prime Minister Narendra Modi to revamp the inefficient and chronically underperforming state-run electric distribution companies. These are seen as the weakest links in India's entire energy chain. Two government sources said that the Power Ministry and Ministry of Finance were discussing the final details of bailout. An announcement is expected to be made in the budget for February. The Ministries did not immediately reply to requests for comments. According to the Power Ministry's presentation, the proposal requires that private companies meet at least 20% total state power consumption and the states assume a portion of the retailer's liability. Two options are available to the states to choose from to access loans for existing debt repayment. The presentation explained that the states could create a new company for distribution, divest 51 percent of their equity and then access an interest-free 50-year loan to pay off the debts of the privatised companies, as well as low-interest federal loans over a five-year period. It showed that the second option would allow states to privatise as much as 26% of equity in an existing state-owned electricity distribution company, in exchange for low-interest loans for five years from the federal government. States that decide not to privatise their utilities must list them on a recognized stock exchange in three years. The presentation indicated that states who choose to list will receive low-interest federal loans for infrastructure management. DEBT AND LOSSES Documents show that the state power retailers had accumulated losses totaling 7.08 trillion rupees (equal to $80.6 billion), and outstanding debts of 7.42 trillion rupiae ($84.4 billion), as of March 2024. State-run electricity distributors are still struggling financially, due to the deeply subsided tariffs, despite three bailouts from the federal government worth billions over a period of two decades. Reforms are expected to bring benefits to private companies like Adani Power and Reliance Power. They are also likely to get stakes in state-owned companies. Employees and opposition parties have resisted past efforts to privatise India’s state-run energy distribution companies, which has slowed down reforms. Privatisation is needed for many power distribution companies to improve their financial and operational metrics. This move may face resistance, and it will take strong political will," Debabrat Ghosh said, Head of India for Aurora Energy. Privatisation is limited to a few distribution zones, including the national capital Delhi as well as industrial states such Maharashtra and Gujarat. In the next session of parliament, the government will amend the law to allow private companies to use the existing state-run network.
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Turkey's Eurofighter Typhoon jet deal includes weapons package, source says
A person with knowledge of the deal said that it also included a comprehensive package of weapons, including MBDA Meteor ground attack missiles and Brimstone air-to-air MBDA missiles. NATO allies Turkey, Britain and France signed the agreement at a ceremony held in Ankara Monday. The deal was signed to strengthen bilateral relations and boost Turkish air defenses. Ankara said that it also wanted 24 jets from Qatar and Oman, even if they were lightly used. Analysts have called the deal costly, even though details are not yet officially disclosed by either party. The person said that the deal included a comprehensive package of weapons, including the MBDA Meteor air-to air missile with a beyond-visual range, the advanced short-range missile air-to air, and the Brimstone ground attack missile. The deal is being made as Turkey, enjoying its most warm ties with Western countries in many years, seeks the advantage of advanced warplanes, to gain ground on regional rivals like Israel, who has launched strikes throughout the Middle East during this year. The British government and Prime Minister Keir starmer have stated that Turkey will receive the first 20 Typhoons by 2030. They also said the deal was a multi-year agreement, with talks beginning in 2023. (Reporting and writing by Jonathan Spicer, Tuvan Gumrukcu, Editing by Frances Kerry).
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Army says Polish jets intercepted Russian aircraft above the Baltic Sea
The Polish army reported on Wednesday that on Tuesday, Polish jets intercepted an aircraft flying a reconnaissance flight in international airspace above the Baltic Sea with no flight plan filed and its transponder off. Since September, countries on NATO's Eastern flank have been alert to possible airspace incursions. Three Russian military jets violated Estonian airspace for 12 minute just days after over 20 Russian drones entered Polish airspace. "Polish fighters intercepted a Il-20 aircraft that was conducting a reconnaissance in international airspace without a flight plan filed and its transponder off. "The aircraft did not violate Polish Airspace," said the Operational Command. Jacek Goryszewski told TVN24, a private broadcaster, that the incident was proof of Poland's "vigilance to ensure our airspace wasn't violated". Last week Alexus Grynkewich General, U.S. Air Force, serving as NATO’s Supreme Allied Command Europe, said that Russia appeared to be deterred last month by NATO’s firm response to incursions in to Polish and Estonian Airspace. However, Moscow is expected continue to test boundaries. (Reporting Alan Charlish Additional Reporting Pawel Florkiewicz Editor Frances Kerry).
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Lufthansa wants to change its reputation as Europe's worst airline
Last year, the CEO of Lufthansa described its flagship airline as a "problem kid". This label has been difficult to remove, even with a turnaround plan. Carsten Spohr, who is trying to make things better by cutting costs, centralising operations, and simplifying a complex fleet has fallen further behind Air France KLM and British Airways' owner IAG. Lufthansa's stock is up a little, but IAG and Air France KLM are up 92% and 15% respectively. The group's operating margin shrank to just 4.4% in 2018, down from 7.6% a year earlier, and analysts predict 4.8% by 2025. Spohr stated last month that "we definitely lagged some of our competitors in terms of financial performance and, also, we lagged behind the operational performance until this summer." Lufthansa's changes, including a 20% reduction in administrative jobs and the retirement of old planes, will help it achieve an operating margin of 8% to 10% between 2028 to 2030. Ingo Speich is the head of corporate governance for Lufthansa's investor Deka Investment. He added: "It has to prove that it can reach its goals." 'LUFTHANSA FOCUSES ON THE RIGHT THINGS.' Analysts and investors said that Lufthansa is trying to make the right moves. Alex Irving, Bernstein analyst, said: "Lufthansa is focusing on the right things, namely driving productivity up and cutting costs." Boeing's long-delayed delivery of the new format with its plusher Allegris cabin will allow it to maximize sales and revenue from premium seats and products. The market also welcomed the decision to reduce 4,000 administrative posts over the next five-year period. Lufthansa could be forced to abandon its plans as it deals with more pressing and urgent issues, such as supply chain problems on the long-awaited Boeing planes or difficult union negotiations. Lufthansa issued two profit warnings in the past year, as strikes pushed costs spiraling out of control and hampered plans to increase its margin. The company has not reached a deal with the pilots' union, and strike talks are still possible. Jarrod Castle, UBS analyst, said: "We believe (the) outlook is going to dominate the results due to the possibility of a pilot's strike." GOOD LONG-TERM STRATAGE; WEAKNESSES IN EXECUTION Lufthansa wants to simplify its complicated structure that includes six hubs, nine airline brands ranging between ITA Airways and Eurowings. Hendrik Schmidt is a corporate governance specialist at German asset manager DWS. He said: "This variety of brands are confusing for customers, and it appears to be hard for management control." The global economy is also facing a number of challenges, including a costly U.S. shutdown that has affected the airline industry and softer transatlantic travel. Speich, Deka's Speich, is unsure about the future. "Lufthansa has contradictory business practices." Speich stated that the long-term strategic plan is correct, but added: "On one hand, execution has been weak in the past".
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US cancels 13 routes of Mexican Airlines citing issues with competition
The U.S. announced on Tuesday that it had revoked approval of 13 routes for Mexican carriers to enter the United States. It also canceled all passenger and cargo flights from Mexico City’s Felipe Angeles International Airport bound for the United States. Sean Duffy, Secretary of Transportation, said that Mexico had "illegally cancelled and frozen U.S. carrier flight for three years without any consequences." Duffy's orders also cancels or freezes flights by Aeromexico Volaris Viva Aerobus, and stops the growth of Mexican carriers combined passenger and freight services - called "belly-cargo" - that connects Mexico City to Benito Juarez International Airport (the older and primary airport in Mexico City). Duffy also proposes to ban Mexican passenger airlines from transporting cargo between Juarez, Mexico and the United States. This would go into effect within three months of a finalized agreement. "Until Mexico ends the games and honors their commitments, will continue to hold Mexico accountable." Duffy stated that no country should be allowed to exploit our carriers, market and flyers without consequences. Mexico was not in compliance with the Transportation Department, according to the department. Bilateral aviation agreement from 2022 When it cancelled the slots of U.S. passenger airlines and forced U.S. cargo carriers to relocate their operations. Aeromexico and Viva Aerobus, as well as the Mexican transportation ministry, did not respond immediately to comments. Aeromexico flights between Mexico City Juarez, and San Juan, Volaris services between Juarez, and Newark in New Jersey, Viva Aerobus proposed flights between Felipe Angeles, New York City, Chicago, Dallas and Denver, Houston, Los Angeles and Miami, and Aeromexico current service between Felipe Angeles, Houston and McAllen. According to the Department of Transportation, Mexico's continued infraction of international agreements "may affect travel plans of American citizens." Contact your airline for more information on re-accommodation. The Transportation Department last month ordered Delta Air Lines to dissolve a joint venture with Aeromexico that allowed the carriers to coordinate flight schedules, pricing, and capacity between the U.S. and Mexico. This was part of a series of actions taken by the Department in response Mexican aviation. The Department of Transportation announced in August that the joint venture must be terminated because it has "continuing anticompetitive impacts on U.S. - Mexico City markets which provide unfair advantages to Delta and Aeromexico." The department had previously ordered Mexican carriers file their flight schedules. Duffy said that Washington was prepared to enforce agreements made by the international community. This position is echoed in recent actions taken against Mexico for similar reasons. David Shepardson reported from Washington, Kylie Madry from Mexico City and Christopher Cushing edited the story.
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Quiet supersonic X-59 jet soars over California in unofficial first test flight
NASA's X-59 quiet supersonic jet plane flew over the Southern California Desert on Tuesday, the first flight of a new experimental aircraft that is designed to break through the sound barrier while minimizing noise. The sleek aircraft measuring less than 100 feet (30 meters), from nose to tail took off an hour after sunrise at Plant 42, a Lockheed Martin Skunk Works facility located in Palmdale. Palmdale is about 60 miles (100 kilometers) north of Los Angeles. After a steep ascent over fields of sod just east the runway, it was observed that the plane banked to the north, on a trajectory towards Edwards Air Force Base about 12 miles away, which is where the landing was expected. A NASA chase plane was accompanying it. As expected, the single-engine X-59 flew at subsonic speed during its first test flight. About 200 aerospace workers, their families and friends gathered along the highway to watch the takeoff. Candis Roussel from Lockheed Martin, in a short email, said that "the X-59 successfully finished its first flight today" and hailed this as a "significant milestone for aviation." She added that the company will provide more details later. The X-59 is a unique experimental aircraft that can reach a cruising velocity of 925 mph (1 490 kph), also known as Mach 1.4. This speed is achieved at an altitude 55,000 feet (16 764 meters), which makes it twice as high, and 60% faster, than most airliners. The shape of the plane is specifically designed to reduce the sonic boom that normally occurs when an aircraft breaks through the sound barrier. Instead, the plane produces a muffled'sonic thump' no louder than the slamming of a car door. The development of low-decibel technology for supersonic flight could improve the commercial aviation service in populated areas, particularly. Concorde supersonic aircraft started transatlantic scheduled flights in 1976 with British Airways and Air France. The plane was retired from service in 2003 because of high operating costs, limited seats and low passenger numbers after a fatal accident in July 2000 and September 11th attacks in 2001. NASA's press materials published online last month stated that the X-59 would make its first flight as a "lower-altitude, low-speed loop of about 240 mph to check the system integration. This will kick off a phase focused on flight testing aimed at verifying the aircraft’s airworthiness, safety, and reliability." During future test flights, the X-59 is expected to travel faster and higher, ultimately exceeding the sound speed - 761 mph (1.225 kph), at sea level. California Manufacturers & Technology Association announced the X-59 was 2025's coolest thing made in California in their annual statewide contest earlier this month. Reporting by David Swanson, Palmdale, California. Writing and additional reporting done by Steve Gorman, Los Angeles. Editing by Howard Goller.
Neste Q3 core profits beat estimates as fuel demand improves in Europe
Neste, the Finnish biofuel producer and oil refiner, posted an improved core profit in the third quarter 2025 compared to expectations. It cited higher distillate prices and a stronger demand for its product.
The company's operating profit before depreciation, amortization and other costs (EBITDA), which is comparable to the company's annual results, grew 81% on an annual basis and was higher than the 471.5 million analysts expected in a poll conducted by the company.
Neste stated in a press release that "due to the healthy renewable diesel references prices in Europe in the third quarter more capacity was directed towards this market".
Neste shares were up 3% by 0802 GMT, reaching their highest price for more than a full year.
The company added that they still expect to have higher sales in their renewables and oil products business than in 2024. It reiterated, however, that the biofuels market would continue to be oversupplied by 2025.
Neste reported higher sales and margins for its two major divisions compared with the same period last year.
In the first quarter, the sales margin for the renewable products division, which produces sustainable aviation fuel and renewable diesel, was $480. This is higher than the average analyst expectation of $440. Neste has been concerned about the oversupply of renewable fuels, which led it to reduce its forecast for margins three times in 2018. It also reduced the number of jobs by 510 in the first half 2025.
Analysts had predicted that Neste would sell 260,000 tonnes of SAF to airlines like United Airlines and Delta. Instead, Neste sold 251,000 tonnes.
According to the European Union regulations, fuel-uplift airports must contain at least 2 percent of SAF. The amount is expected to increase gradually in future years.
(source: Reuters)