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Lufthansa aims to achieve a turnaround by 2026 and projects a 6% growth in long-haul flights.
Carsten Spohr said that the German airline group Lufthansa expects a?6% increase in supply for its passenger airlines operating on its "long-haul" routes by 2026. The CEO also stated that it expected to receive a new widebody aircraft every other week, which would help boost growth. Lufthansa wants to expand its international routes and internationalize its company as part of its broader strategy aimed at achieving a profit margin increase between 2028-2030 of 8-10%. Spohr said that the capacity growth will be limited on shorter haul routes where they are seeking efficiency. Spohr, at the offices of?Lufthansa in Frankfurt, said: "We'll?now integrate?even further in our hub system. This will allow us to limit growth on short haul and yet expand on long haul. We will do this with?6% next Year." Spohr stated that the overall capacity growth in 2026 is projected to be about 3.5%. This is slightly lower than an earlier projection of around 4.0%. In the interview, he said: "We no longer need to connect each hub with every short-haul destination." Spohr stated that Lufthansa will 'look to add more frequency on some of its main routes in 2026. New routes could be introduced in '2027 by using the extra capacity provided by plane deliveries. Airline companies, including Lufthansa, have been unable to get planes from Boeing and Airbus on time. This has forced them to fly less efficient jets. Lufthansa will achieve 98% of its capacity before COVID-19 with the new supply growth targets. Air France KLM, IAG and others have already exceeded their levels?prior the pandemic. The slower progress of Lufthansa was partly because it is now offering fewer domestic flights after reducing them in Germany due higher taxes and fees. (Reporting and editing by Matt Scuffham, Alexander Smith and Ilona wissenbach)
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UPS uses AI to detect fakes in the midst of a surge in holiday returns
According to the reverse logistics company owned by UPS, nearly one out of every ten retail items returned to the U.S. for a refund is fraudulent. The company says that it plans to use artificial intelligence to help retailers combat this $76.5 billion problem. Happy Returns, a UPS-owned company that processes boxless returns, is testing an AI fraud detection tool this holiday season with a few clients. These include apparel sellers Everlane Revolve and Under Armour. This was revealed by Happy Returns' CEO David Sobie during a tour of the company's Los Angeles hub. Return fraud is a form of theft where a customer requests a refund for an item but sends back something of lesser value. For example, a knock-off product that can't be sold. Return Vision, an AI tool from Happy Returns, helps find fraudulent returns. It does this by flagging suspicious packages and analyzing their contents. Then, it sends them to humans for a final audit, who can verify fraud and deny the refund. Happy Returns is a specialist in returns without a box or label. Customers can take their unwanted items to one of nearly 8,000 "returns bar" located inside Ulta Beauty or UPS stores. Workers scan, bag and label the items, which are then combined into large boxes that are sent to processing hubs every day, saving retailers money and time. The service is popular with both shoppers and fraudsters because it's easy to use and offers instant refunds. Sobie stated that Return Vision was tested in early November, and other retailers will begin using the tool this month to process the surge of returns during the holiday shopping season. Jim Green, director of logistics and fulfillment for Everlane, an online retailer that sells cashmere and other clothing, said the effort was to address a problem which compounds costs. Returns are already a drag to profits, as the costs of shipping, restocking, and preparing goods for resale add up. "Not receiving the actual items is a double blow. "It's hundreds and thousands of dollars per year for us alone," he said. Revolve and Under Armour representatives declined to comment. According to Happy Returns, and the National Retail Federation's study, around $849.9 Billion worth of retail goods will be returned by 2025. This is equivalent to about 15.8% of all sales. The report stated that 9% of these returns would be fraudulent. UPS competitors Amazon.com, FedEx and the United States Postal Service are also offering boxless returns. Amazon's returns service uses both automated tools and physical inspections to flag returns that may be risky. FedEx declined to comment immediately. Recently, executives polled by large consulting firms said they believed generative AI would eventually transform their business, but were reconsidering the speed at which it will occur within their organization. Accordingly, 85% merchants who responded to the Happy Refunds/NRF survey said that they used AI or machine-learning to identify and fight fraud. However, results were mixed. Happy Returns executives claim that their AI program helps them identify incorrectly returned items. It doesn't address other issues such as "wardrobing", when customers return damaged or worn items. How it works Happy Returns' AI fraud detection tool begins working as soon as a customer initiates an online return. The system flags returns that are initiated before or soon after the item has been delivered, shoppers who have linked multiple email addresses to their account, and returns from people involved in suspicious past activities. When workers at drop-off locations scan unwanted items into the Happy Returns software, they have access to photos that show the item. They can reject obvious mismatches. "Sometimes, humans do not always notice small differences between an item that has been returned and the one purchased," CEO Sobie stated. Human auditors will open the packages that have been flagged once the returns arrive at the Happy Returns hubs located in California, Pennsylvania and Mississippi. The company stated that they take pictures, which are then fed into the AI tool. It compares the images with other information and images about the products expected to be returned. The AI is then reviewed by human teams, who make the final decision. If you are returning a $300 pair of boots, and you arrive with dirty old sneakers you should be caught right away. Return Vision adds an extra layer to protection in some cases that are not so obvious, said Green. The tool flags less than 1% returns as having a high probability of fraud. About 10% of the flagged items end up being confirmed as fraudulent, according to the company. Each fraud has an average value of $261. Juan Hernandez-Campos, Happy Returns' Chief Operating Officer, said that the tool is becoming more important as fraudsters are becoming more sophisticated. "Bad actors adjust." "We need to adapt as well," he said.
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India investigates IndiGo's alleged antitrust violations
IndiGo, a budget airline in India, was accused of antitrust violations by the Indian Competition regulator on Thursday. This follows recent flight disruptions across India. IndiGo cancelled 4,500 flights in the first week of this month because of poor roster planning. This led to a major aviation disruption, leaving tens and thousands of passengers stranded. The incident has damaged the airline's reputation, as it controls more than 60% of the domestic air market. In a statement, the Competition Commission of India said that it "has taken note of information filed against IndiGo regarding the recent flight disruptions experienced in the aviation industry across different routes." The Commission added that "based on its initial assessment, it has decided to move forward," without revealing any details about the accusations or cases. IndiGo didn't immediately respond to our request for comment. The CCI has the power to order its investigation arm to investigate such cases. These disruptions highlighted the dangers of a near duopoly on the fastest-growing aviation market in the world, where IndiGo & Air India hold more than 90% of the market. The government imposed temporary ceilings on fares after the cancellations caused a surge in prices. (Reporting by Aditya Kalra and Hritam Mukherjee in Bengaluru. Sonia Cheema, Mark Potter and Mark Potter edited the article.
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The tram network in England's Leeds will not be completed until the late 2030s
A government review released on Thursday revealed that plans for a long promised tram network in Leeds, northern England, have been pushed to the late 2030s. This highlights 'Britain’s?chronic difficulty in delivering infrastructure. Early 2030s was the promised date for the tram network that would bring mass transit to Britain’s fourth-most populous conurbation. Experts believe that the aging, unreliable rail network is a major obstacle to productivity growth. It also explains why London dominates. Former Prime Minister Rishi Sunak has axed the northern leg?of?the high-speed rail network HS2 in 2023. The new route will run from London to England’s midlands. The Labour government of Britain, which was elected in July, last year, promised to stop decades of underinvestment. Tracy Brabin is the mayor of West Yorkshire Combined Authority. She said, "Britain's Labour Government has confirmed its commitment to bringing a tram network to Leeds. "Our'region has seen two similar projects fail and it is essential?that this time we deliver." She wrote to Peter Hendy in a letter that it took too long for infrastructure to be delivered in this country. Brabin said that she would still "get spades in ground" by 2028. (Reporting and editing by William James; Andy Bruce)
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Spanish police search a laboratory in African Swine Fever Probe
Regional?police in Spain said that on Thursday, they searched a state funded laboratory near Barcelona as part of a?investigation?into an outbreak of African swine fever in the same region. The court-ordered search was ordered after concerns were raised in the past month that a lab leak could have caused an outbreak of African swine?fever. The strain was similar to those used in research and vaccine development, but different from cases elsewhere in Europe. African swine fever can be deadly to wild boars and pigs but is not harmful to humans. It spreads quickly. Spain is Europe's biggest pork producer and accounts for a quarter or so of its output. The outbreak has caused the authorities to restrict movement, as well as to increase efforts to reassure traders. The police said that the search of the Centre for Research in Animal Health was ordered by an investigating judge in the locality and is part of the?preliminary proceeding which has been declared secret. The centre didn't immediately respond to our request for a comment. Cresa told news verification website Maldita.es that it found no evidence of its being the cause of the outbreak. This outbreak is the first in Spain since 1994. It has only been found among wild animals in the Collserola Hills outside Barcelona. No cases have been reported on farms. Authorities discovered the virus in 26 carcasses of wild boars in the six-kilometer (four mile) area that was imposed after the outbreak. Cresa lies within the same region. (Reporting and editing by Andrei Khalip, Ed Osmond and Jesus Calero)
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European Court rules that the Polish Constitutional Tribunal has violated EU law principles
The European Union's highest court on Thursday ruled that Poland's Constitutional Tribunal violated fundamental principles of European Law and could not be considered impartial and independent because of irregularities with the appointment of judges. The nationalist Law and Justice party (PiS), which served in the government for two terms between 2015 and 2023, introduced judicial reforms that Brussels claimed undermined the rule-of-law and critics blamed chaos in the judiciary. The Constitutional Tribunal - a court that rules on the validity and constitutionality of laws, and which is dominated primarily by judges appointed under the PiS - issued rulings stating Poland's Constitution had precedence over EU law, thereby undermining an important principle of the Union. The Court of Justice of the European Union said that Poland failed to "fulfill its obligations" because the Tribunal had violated the principle of "effective judicial protection". It also stated that the Tribunal had disregarded the primacy of EU law, as well as the autonomy, effectiveness, and uniform application of EU laws. The report said that there were "serious irregularities", in the nomination of the Tribunal's President and three judges, which called into question its status as "an independent and impartial court established by law under EU law." The rulings were taken to court by Brussels and are not recognised by the pro-European Government led by Prime Minister Donald Tusk. The government's efforts to reverse the changes have been blocked by two nationalist presidents, who are supporters of the PiS court reform. In an interview conducted this month, Justice Minister Waldemar Zurek said that he would wait for the CJEU's ruling before implementing changes at the Tribunal. This included the appointment of independent judges. (Reporting and editing by Anna Wlodarczak - Semczuk)
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EU prosecutors ask for the dropping of Genoa Dam case against Italian Webuild CEO
Documents from the European Public Prosecutor's Office on Thursday showed that they had'requested' the dismissal of a case involving Webuild CEO Pietro Salini, and three others?for alleged misappropriation of funds. The investigation focused on a contract estimated at 1.3 billion euro ($1.5 billion) awarded by a consortium headed by Webuild to build a dam near the harbour in the city of Genoa, located in the northwestern part of Italy. 900 million euro of that cost came from European and national public funds. Salini's inclusion in the investigation and the dismissal request were not reported previously. The?document reviewed by, the delegated European Prosecutor at the EPPO Turin office requested the Genoa Court to drop the case. It alleged a range of offences, including abuse of office and bid rigging. There were also irregularities in selection procedures, falsifications, and misappropriation?of public funds. The EPPO sought to clear Salini as well as Paolo Emilio Signorini - former head of 'Genoa's Port Authority', Alberto Colosio - Webuild's Tender Office Manager, and Jan Albert Vandenbroeck – chairman of Sidra, a dredging company and member of the consortium that also includes Fincosit, a Fincantieri division, and other members. Now, a Genoa judge will decide whether or not to accept the EPPO's request. Webuild, Italy’s largest construction group, started building the dam through the PerGenova Breakwater Consortium in June 2023. Webuild, Sidra, and Signorini’s lawyers could not be reached for comment. (1 dollar = 0.8532 euro) (reporting by Emilio Parodi and editing by Keith Weir).
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ADNOC secures $11 billion in financing for future gas production
Lukoil abandons Ghasha Project, gives ADNOC 10% stake Demand from Asian lenders including Chinese banks The first gas production is expected by the end of this decade Yousef SABA DUBAI, December 18 - Abu Dhabi National Oil Company announced on Thursday that it had secured an $11 billion?structured financing in order to monetise the future gas production of its Hail?and?Ghasha project, following the withdrawal by Russia's Lukoil. The deal was signed with Eni and PTTEP, and involves 20 global and local banks. The deal uses a pre-export financing model, backed by future throughput of gas, to provide upfront cash, years before the first production is expected at the end of the decade. This transaction is part of ADNOC’s strategy to leverage the balance sheet in order to?fund its transition into a major global energy company. The company previously used lease-leaseback agreements for infrastructure, and listed six subsidiaries to raise millions of dollars. The company also created XRG, a global investment arm with assets of more than 150?billion dollars, including Germany's Covestro. LUKOIL EXITS GHASHA ADNOC's spokesperson said that Lukoil had withdrawn from the concession after it doubled its stake to 10% in?Ghasha earlier this year. ADNOC spokesperson confirmed that Lukoil sold its stake in ADNOC to ADNOC after the sanctions, but refused to give further details. The move comes after Lukoil tried to divest itself of its foreign operations but was stymied by U.S. Sanctions imposed in October to pressure Russia to end the war in Ukraine. A source familiar with the deal stated that it was the first greenfield pre-export financing based on?gas. This allows ADNOC lower its equity contribution while improving returns. Non-recourse funding includes 11 local and regional banks as well as seven Asian banks and three Western lenders including Citi, Bank of China, and ICBC. The source added that?ADNOC had secured attractive rates. Chinese banks provided over a third the financing for Saudi Aramco Jafurah. This project is potentially the largest shale-gas project outside the U.S. and aims to produce 2 billion standard cubic feet of gas per day by 2030. ADNOC CEO Sultan Al Jaber said in a press release that Hail and Ghasha is "an important contributor to ADNOC’s gas strategy" and will generate significant value. The company aims to produce 1.8 billion cubic feet per day of gas while emitting zero emissions.
New Czech Minister says EU is at risk of losing out on climate goals to China and the US
Karel Havilicek, the new Czech Minister of Industry, said that the European Union needs to reconsider its climate goals or else it risks losing out to China and the United States.
This week, the billionaire Andrej Babis became Prime Minister of the Czech Republic.
The government, led by the populist ANO in coalition with the right-wing and extreme-right parties, rejected ETS2, the EU's next generation emissions trading scheme aimed at road transport and buildings, which was meant to?provide market incentives for investment.
The government has pledged not to join ETS2, due to go into effect in 2028, as part of EU Green Deal plans for reducing emissions over the next decades. Czechs claim it will increase energy costs and hurt industry's competition.
The new government wants to find allies who will help it scrap ETS2 and this could lead to a conflict with the EU executive. The Czech government has stated that studies have shown it would cost the Czechs around 40 billion crowns per year ($1.92 billion), which is more than any potential EU penalties for not implementing the legislation.
MINISTER SAYS NEED FOR KEEPING UP WITH THE POWERS
Havlicek told his office on Wednesday that he was not willing to take part in the event, if only because it would be a huge disadvantage for the Czech Republic.
He said that different countries have taken different positions. "We want to lead the way in changing the system, from the bottom up," he added.
Eurostat data shows that household electricity prices in Czech Republic are among the highest in all 27 EU member states in the first half of the year. The high cost of energy has also been a complaint for many years among companies. A large part of the country's economy is devoted to auto manufacturing.
He said, "It is very important for us to start keeping pace with other major powers, such as China and the United States, so that we do not fall behind."
Havlicek said that Europe is like "a car hurtling towards a wall, but reassuring themselves the car's electric", and climate targets and schemes are having a negative effect and leaving the EU behind competitors who face fewer restrictions.
"I don't want to be a doormat to China, nor do I want our companies to leave for the United States because their inputs are cheaper there. And thanks to climate initiatives, even companies that invest in climate projects may move to America." $1 = 20.8150 Czech crowns (Reporting and editing by Jan Lopatka, Jason Hovet)
(source: Reuters)