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After Israel's attack on Iran, airlines suspend flights
International airlines have stopped flights to certain Middle East destinations following Israel's attacks against Iran. Here are some airlines that have cancelled flights from and to the region. AEGEAN AIRLINES Aegean Airlines, a Greek airline, has cancelled all flights from and to Tel Aviv, including the early morning flight of July 12. It also cancelled all flights from and to Beirut, Amman and Erbil, up until the morning arrivals on June 28. AIRBALTIC AirBaltic, a Latvian airline, said that all flights from and to Tel Aviv were cancelled until June 23. AEROFLOT After Israel's attack on Iran, Aeroflot announced that it has cancelled flights between Moscow & Tehran and changed other routes throughout the Middle East. AIR FRANCE-KLM Air France has suspended flights to and out of Tel Aviv, until further notice. AIR INDIA Air India reported that multiple flights are either being diverted to another destination or returning back to their original origin. Due to the closure of Israeli Airspace, Israeli Airlines has cancelled all flights until June 14, DELTA AIR LINES The U.S. airline warned that travel to, from or through Tel Aviv could be affected between June 12 and June 30. EL AL ISRAEL AIRLINES El Al Israel Airlines announced that it has cancelled all flights for EL AL Sundor until Thursday, June 19, 2019. ETIHAD AERWAYS Etihad Airways has announced that it will not be operating flights between Abu Dhabi, Tel Aviv and Tel Aviv after June 22. EMIRATES Emirates has temporarily suspended flights to Jordan (Amman), Lebanon (Beirut), Iran (Teheran), and Iraq (Baghdad, Basra) up until Sunday, June 22. FLYDUBAI Flydubai has suspended flights from: Jordan, Lebanon, Minsk, and St. Peterburg, until June 16, and Iran, Iraq and Israel, until June 20, and Syria, Iran, Iraq and Israel. ISRAIR Israeli Airlines announced that they would cancel all flights to and from Israel up until June 30, 2009. ITA AIRWAYS Italian Airlines has announced that it will extend the suspension of Tel Aviv flight until July 31, 2019. LUFTHANSA GROUP Lufthansa announced that it has suspended all flights from and to Tel Aviv, Tehran and Amman until July 31, and between Erbil, Beirut and Amman until June 20. Lufthansa said it will also avoid Iranian and Israeli airspace until further notice. PEGASUS Turkish Airlines announced that it has cancelled all flights to Iran and Iraq until June 19, and flights to Jordan and Jordan until the 16th of June. The airline said that it will only operate flights into Lebanon during daylight hours. QATAR AIRWAYS Qatar Airways has temporarily canceled flights to and from Iraq, Iran and other countries. The flights to Damascus Airport in Syria will be cancelled up until June 14. RYANAIR Ryanair has announced that it will cancel flights from and to Tel Aviv up until August 31. Romania's flag airline said that it has suspended all commercial flights from and to Tel Aviv, Beirut, and Amman, until Monday, 16 June. TURKISH AIRLINES Turkish Airlines, along with other Turkish operators, have cancelled flights until June 16 to Iran, Iraq Syria and Jordan, according to the Turkish transport minister. WIZZ AIR Wizz Air has suspended all flights to and from Tel Aviv, Amman and Jordan until the 20th of June. (Reporting and compilation by Bureaus, Elviira Louma, Tiago Brancao and Matt Scuffham, Editing and Alison Williams).
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The proposed EU curbs could reverse the trend.
The availability of tankers in late May and early June allowed for a further reduction in freight rates from Russian oil to India. However, this trend could reverse itself if the proposed price cap by Europe is implemented. The European Union proposed a new sanctions package against Russia for its actions in Ukraine, and suggested that the price cap of Russian crude oil be lowered from $60 per barrel to $45 per barrel by the Group of Seven. The G7 and EU imposed a $60 cap on Russian crude oil by the end of 2022. This would restrict access to Western shipping services and insurance for purchases above the limit in an effort to reduce Moscow's revenue. As the price of Russia’s flagship Urals oil has dropped below the cap, Western owners have been able return to the Russian oil market. Since early April, the price of Urals crude oil in Russian ports has stabilized below $60 per barrel. This allows more Western shipping companies to resume services, especially Greek shipping companies. It also increases tanker availability, which puts pressure on freight rates. On Wednesday, the price of Urals oil shipped from the Baltic Sea Port of Primorsk stood at $54.72 per barrel. Costs of shipping Urals oil to India from Baltic ports including Ust-Luga have fallen to $5.5-$5.7 million, down from an average $6-million-per-one-way shipment in April-May and $8-million in early March. After the new round of U.S. energy sanctions announced in January, Russian crude shipping prices rose dramatically. Russian oil sellers had to find new tankers to replace the ones that were hit by sanctions. The freight rates are still higher than in January when shipping Russian crude oil from the Baltic ports into India cost between $4.7 and $4.9 per shipment. Reporting by
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Air India Dreamliner returns back to Hong Kong following technical issue mid-air. Source says
A source with first-hand knowledge of the situation said that an Air India Boeing 787 Dreamliner bound for New Delhi was returned to Hong Kong on Monday as a precautionary move after the pilot suspected there was a technical problem mid-air. This incident occurred just days after an Air India flight from Ahmedabad to London, which used the same type Boeing aircraft, crashed moments after takeoff in the western Indian town of Ahmedabad, killing 241 out of 242 passengers on board. Sources with knowledge on the matter confirm that the Dreamliner aircraft, which flew Air India flight AI315 from Hong Kong to Singapore on Monday, is currently undergoing inspections. Flightradar24 shows that Flight AI315 departed Hong Kong at 12 p.m., and landed a little over an hour after. Boeing and Air India have not responded to requests for comments on the Hong Kong-New Delhi flights. (Reporting and editing by Abhijith Gaapavaram, Tanvi Mehta and YP Rajesh; Tom Hogue and YPrajesh)
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Travel disruptions around the world are increasing demand for premium insurance
As flight delays, cancellations and other disruptions are on the increase, businesses and leisure travellers are becoming more discerning about the type and level of insurance that they purchase. Travel disruptions have increased around the globe since 2019. This is due to COVID-19, extreme temperatures, volcanic eruptions or military conflicts, as well as computer problems, fires, and jet safety issues. Air traffic controller shortages in the U.S. and outdated technology have led to significant disruption. In May, equipment failures, runway construction, and staffing shortages led to flight cancellations, delays, and diversions at Newark Liberty Airport, one of New York City's main airports. Israel launched an attack on Iran last Friday, forcing airlines to cancel or divert tens of thousands flights in order to avoid a conflict. Many insurance policies have a variety of exclusions. According to nine interviews conducted with travel executives, insurers and analysts, travellers are increasingly opting for higher-end policies that come at higher prices to protect themselves. Duncan Greenfield Turk, CEO Global Travel Moments in London, said: "We are in a time that is quite unstable, so people cancel more often than before." According to Allianz Partners, German insurers, European tourists increased their travel insurance purchases for this summer by 3 percent compared to last year. Squaremouth, which is the largest travel insurer in the U.S.A., saw a global increase of 34% in "Cancel for Any Reason" coverage. Travel for Allianz Partners CEO Anna Kofoed said that British and U.S. tourists are willing to pay more to protect their vacation. According to InsureMyTrip, data shows that from January to April 2024, 32% more travelers worldwide requested a quote for travel insurance. Businesses seek travel advice As a result of President Donald Trump's announcements on immigration restrictions, including stricter visa vetting and travel bans, there has been an increase in demand for tailored travel advice. World Travel Protection, a global company that advises on travel risks and provides advice to businesses, has reported an increase in U.S. citizens being detained by U.S. border officials who inform them their documents are no longer valid due to changes in visa rules. Frank Harrison, WTP's regional director of security for the Americas, said that WTP worked with U.S. Government representatives to assist these individuals in returning home. Harrison stated that "we're seeing an increase in the number of organizations who come to us to ask how to navigate within the U.S. business landscape." According to Steven Diehl, CEO of CIBT which offers non-legal immigration and visa guidance, the number of inquiries from companies looking to better prepare employees for travel in the U.S. has increased by 50% since November. HIGH-END PRODUCTS OF INSURANCE EMERGE Parametric insurance is one of the newer areas of business. It pays out compensation after an "trigger event" such as a delay in a flight without the need for a claim. In some countries, parametric insurance has been a big hit during the COVID-19 epidemic. More insurers have started to offer this product in the last few months. Mawdy, the Irish unit of Spanish insurer Mapfre, found that when instant compensation is included in travel insurance packages, about 11% more customers choose higher-tier policies. This burgeoning industry has also attracted the attention of travel destinations. Marriott Bonvoy offers weather insurance for villa rentals and waterparks at the time of booking. This automatically pays out in case it rains. Sensible Weather is one such provider. It reported that its weather guarantee was added to 30% theme park bookings, and 10% of bookings for higher-valued accommodation, when it offered them in 2024. Squaremouth launched in March a new cruise insurance product that includes benefits like coverage for missing a port of call or being confined to a cruise ship. "Everyone wants to make it clear that every trip (...) will have different concerns, whether it is hurricanes, blizzards, or what is happening with air traffic control," said Suzanne Morrow CEO of online insurance broker InsureMyTrip. (Joanna Pluncinska in London and Henry Gale, Doyinsola in New York. Editing by Josephine Mason & Elaine Hardcastle).
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Thai Airways exits debt restructuring program
Thai Airways International, the flag carrier of Thailand, announced on Monday that it would be ending its debt restructuring program and that it expects to resume trading on its stock exchange by early August. In 2020, Thailand's national carrier went through a restructuring protected by bankruptcy. It reduced its staff by half and trimmed its fleet. The airline said that since 2023 it has been making a profit continuously every quarter. This is a dramatic turnaround for a carrier which had suffered losses almost every year since 2012. Thai Airways stated that the airline owes creditors 190 billion Baht (5.86 billion dollars) according to court orders. Of this amount, 94 billion Baht has been paid and the rest will be paid in the coming decade. The statement stated that "the company intends to increase its international aviation capacity and push Thailand towards becoming a regional air transportation hub."
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US aircraft carrier heading west from S.China Sea amid Middle East Tensions
The USS Nimitz aircraft carrier left the South China Sea heading west on Monday morning, according to ship tracking website Marine Traffic. This was after a reception planned for its port call in central Vietnam had been cancelled. Two sources, one of whom is a diplomat, have confirmed that the official reception scheduled for June 20 has been cancelled. According to one source, the U.S. Embassy had informed him of the cancellation due to an "emergent operational requirement". The embassy did not immediately respond to an inquiry for a comment. According to the website for the Commander of U.S. Pacific Fleet, the Nimitz Carrier Strike Group carried out maritime security operations last week in the South China Sea as "parts of the U.S. Navy’s routine presence in Indo-Pacific." Marine Traffic data showed that the carrier was heading west on Monday morning in the direction to the Middle East where Israel and Iran are escalating their battle.
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Middle East conflict slows bookings and increases rates
Industry sources said on Monday that the cost of chartering oil tankers for the Middle East-Asia route has risen and bookings of ships have decreased as concerns about potential disruptions are fueled by the Israel/Iran conflict. According to LSEG, the global benchmark rate (TD3) for a very-large crude carrier (VLCC), which transports oil from the Middle East Gulf to Japan (MEG), rose by over 20% after tensions erupted on Friday. According to a shipbroker, on Monday the MEG-Japan crude rate remained at W55 in the Worldscale Industry Measure. However, traders, shipbrokers, and charterers took a watch-and-wait stance, even though market participants stated that they did not anticipate the Strait of Hormuz to be closed, a crucial shipping passage. "Fixing from the area on Friday was almost at a standstill. Physical marks are not always indicative. Anoop Singh is the global head of oil brokering's shipping research. He said that ships in the Gulf are still searching for charters to go outbound. Singh said, "But the situation is still dynamic and we expect to learn more at today's market opening." Sentosa Shipbrokers says that although they have seen a slight increase in the freight rates, expect this to continue as the week goes on. Emril Jamil is a senior analyst at LSEG Oil Research who specializes in crude and fuel oils. He said that freight rates would depend on whether or not Iran escalates the situation and takes action on the Strait of Hormuz. Around 18 to 19 million barrels of oil and oil-based products are transported through this waterway every day, connecting the Gulf of Oman to the Gulf of Arabia. The war risk premium will remain high for the foreseeable future, given the ongoing tensions between both countries. The premium will increase exponentially if the Middle East's oil and gas infrastructure is attacked, said Jamil. If there are more attacks, he said that cargo insurance rates could increase from $3 to $8 per barrel. According to three shipping sources' estimates, the freight rate for 90,000 tonnes of gasoline, jet fuel, or diesel from the Middle East was $3.3 to $3.5 millions late last week before the conflict. However, new rates have not yet been announced. According to a Singapore-based trade source, some brokers have already given market indications for $4.5 million. Sentosa Shipbrokers wrote in a client note that several shipowners have resisted offering vessels on routes in the Gulf, pending a more accurate picture of the situation. This could increase the number of opportunities for voyages to and from the Far East, west Suez, or northwest India.
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Wall Street Journal, June 16,
These are the most popular stories from the Wall Street Journal. These stories have not been verified and we cannot vouch their accuracy. According to sources familiar with the situation, activist investor Barington Capital Group owns a stake in Victoria's Secret. Barington Capital Group believes that the lingerie retailer is not living up to its potential. Luca de Meo, Renault's Chief Executive Officer for the past five years, plans to retire in mid-July. He will then pursue new challenges beyond the automotive industry. Southwest Airlines has added a new cockpit warning system to its fleet of aircrafts. This comes after a number of near misses at U.S. Airports over the past few years. Santos, Australia's second largest producer of oil and gas, announced on Monday that a consortium led Abu Dhabi National Oil Co subsidiary XRG had made a $18,72 billion takeover bid. Authorities said that a man suspected of shooting at two Democratic state lawmakers in rural Minnesota was arrested late on Sunday night after authorities found him in an area with woodlands and crops. People familiar with the situation say that company officials informed some of the affected staffers of the cyberattack in the last few days. The attack may have been the work of an outside government.
Baker Hughes announces all Middle East facilities
Lorenzo Simonelli, the chief executive of Baker Hughes Energy Services, said on Monday that all the company's facilities in the Middle East are running normally. He made the remarks on the sidelines Energy Asia Conference.
He said: "At the moment, our employees are all safe and the facilities continue running and operating." "I hope tensions will deescalate."
He said it was too early to predict the impact of the conflict between Israel and Iran on energy supply.
He said, "It is too early to tell. We need to monitor the situation."
He added, "We know that the demand is resilient and we continue seeing strong demand. And... if supply constraints exist in one region, they will force other regions to provide supply."
Baker Hughes is well-represented in the Middle East. It has an oil services center in Saudi Arabia. Abu Dhabi is the headquarters for its surface pressure-control business.
Simonelli stated that the company will continue to monitor and review the routes and ports of the region in order to ensure safety for shipping equipment and providing service.
He said: "We won't go to a location where our employees are insecure or for...supporting our operations."
In April, the company predicted that global oil producers would spend less as tariffs impacted demand and pushed down crude prices.
After a number of delays, tariffs on imports of steel and aluminum to the United States will be implemented on July 9.
He said that "we're all watching the situation regarding tariffs." Higher prices for commodities and raw materials could affect investment decisions in new projects.
He said, "At the moment, we don't see any changes in our customers' positions."
(source: Reuters)