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Wizz Air and Ryanair demand NATS overhaul following UK flight disruption
Budget airlines 'Wizz Air' and 'Ryanair, both European carriers, called for a restructure of Britain’s air traffic controller NATS on Tuesday after a?new technical issue that caused?hundreds? of flights to be disrupted at key airports across the country. "A vital national infrastructure provider shouldn't repeatedly stop the aviation system." NATS in its current state is not suitable for the purpose it was intended for," said a Wizz Air spokesperson. Rival airline Ryanair has also criticised this agency and demanded the resignation of its CEO, Martin Rolfe. We were told that lessons would be learned after the collapse of 2023. "Resilience will improve" was the message. We were told that the systems had been repaired. "Yet here we are again", said Ryanair Chief Operating Officer Neal McMahon. NATS said it had implemented "a fix" to the latest problem and was working closely with airlines and airports in order to restore normalcy. We continue to work closely together with our airport and airline customers on recovery. "We sincerely apologize for the disruption of people's travels today and encourage them to continue to contact their airline," said a spokesperson in a press release. The British aviation regulator said that in 2024 NATS would need to revise its contingency plan for 'outages' after the automatic processing of flight schedules malfunctioned one year prior, causing chaos at Britain's airports. The Civil Aviation Authority announced on Tuesday that it has been in touch with NATS regarding the incident, and is expecting the latter to provide a complete report. A CAA spokesperson stated that "we will then determine if?any additional steps are needed to ensure the safety and reliability of the UK air traffic control system."
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Kansas Republicans support Bombardier after Trump's threat
Trump's threat to ban Bombardier aircraft from the United States began to backfire Tuesday, after Republicans in Kansas, which employs 1,500?Bombardier? employees, pledged to protect these jobs before a crucial November election. Some Republican legislators reached out to the White House over their fears that Bombardier would lose access to a large market, which accounts for half of its sales. Meanwhile, Democratic opponents in the predominantly red state jumped into the debate. Roger Marshall, Republican U.S. Senator for Kansas, who is running for election, has said that he will fight to keep Bombardier's jobs in Kansas. He said, "I have already brought this concern to the Oval Office." Bombardier employs 3,500 people in the U.S.; more than 40% are located in Wichita. Jerry Moran, a Republican senator from Kansas who will not be re-elected this year, told reporters on Monday he had contacted the Trump administration to "ensure that the president was aware of Bombardier's significant contribution to Kansas." The threat to Bombardier could escalate an already escalating U.S.-Canada trade war that is a growing election issue in the run up to the November midterm elections. Adam Hamilton, a Democrat who is running to replace Marshall in the Senate race, said on X Monday that Bombardier provides good-paying employment for 1,500 Kansas families. "Now, the president tries to take this away." The highly integrated aerospace industry has been largely spared from Trump's wider tariff war, which has imposed?duties in other industries such as autos. Three aviation lawyers who were interviewed by said that it wasn't immediately clear as to how Trump could prevent Bombardier private planes from being delivered in the United States, since they had been approved by U.S. Federal Aviation Administration. The White House is yet to comment. Trump's threats to decertify Bombardier planes in February over a certification spat with U.S. rival Gulfstream Aerospace did not materialize. Transport Canada approved the American-made aircraft. The IAM, North America's largest aerospace union, has said that it opposes Trump banning the jets. David Hernandez, an associate at Vedder-Price in Washington, said that the situation is causing a great deal of anxiety on both sides. This makes no sense. Hernandez told a client who was planning to fly Bombardier at the end October, that he asked him Tuesday if the threat posed a problem. Although the administration hasn't yet banned any planes from flying, lawyers should still take this threat seriously. Ehsan M. Monfared is an attorney at YYZlaw in Toronto. He said that there was no sign of any resistance from Americans who wanted to buy used Bombardier business aircraft from his Canadian customers. Monfared stated that the sentiment among the business aviation community is that Trump would alienate supporters and wealthy donors by banning deliveries of Bombardier aircraft. He said that a policy like this would affect too many orders from supporters of the government. "And its legal basis is in any case questionable." Bombardier shares fell 3.6% at midday after opening the day down 6.4%. Trump's threat was made in a Monday post as the trade dispute between Washington and Ottawa intensified, with Canada introducing counter-tariffs on U.S. goods worth $20 billion. On Monday night, Congressman Ron Estes of the Republican Party, who represents Kansas' 4th District, stated on the social networking site X, that he opposed tariffs on aerospace and defended Canadian planemaker Bombardier's contribution to Kansas. Bombardier is trusted by the U.S. military to perform critical missions in national security.
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French energy unions are threatening strikes in the next week due to a proposal to reduce benefits and pay
Three union members told us that French energy sector 'unions' are planning to strike on Tuesday, August 8, over a recomendation made by the French Court of Auditors in July to curb wage growth and employee perks such as cheaper power and gas. The Belgian Gas Terminal Operator Fluxys, the French Gas Terminal Operator Elengy and state-owned EDF have all filed strike notices. The unions of French energy workers and retirees pay reduced rates for electricity and gas. This is a key part of their compensation package. This court determined that EDF would lose over EUR700 millions in revenue by 2024. EDF spokesperson said that this type of preferential access is common in major companies. Employees value the energy-related benefits while encouraging responsible consumption. The spokesperson stated that it was "perfectly appropriate" for the company, whose success in the industry relies on the commitment of its employees. Gas deliveries could be disrupted if a strike occurs in Europe, as the continent works to fill up its storage before winter. Power cuts may also occur if wholesale electricity prices remain high. France is Europe's biggest LNG importer. These cargoes are transported throughout the continent. Around 70% of the country's electricity is generated by nuclear power. A union source said that further strikes could be possible following Tuesday's 24 hour action. An official from the government said that 'discussions are being held and some changes are being considered, such as moving away from a flat-rate for cheaper energy, to an allowance based upon consumption.' But the government must follow the Court of Auditors guidance. The court recommended that EDF limit annual wage increases and phase out energy benefits. EDF faces significant investment costs in upgrading its nuclear fleet, and planning new reactors. A CGT member in the gas industry said that a large turnout is expected due to opposition of the auditors' reports. Fluxys stated that it was too soon to determine the impact on operations, but terminals located outside France were not affected. Elengy confirmed all the unions in the energy sector had called for strike action, but was unable to indicate any potential impact.
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EasyJet is facing a $72 million lawsuit for stranded Airbus aircraft, reports FT
The Financial Times reported that a unit of the Russian state-owned aircraft?lessor GTLK is suing 'easyJet' for $72 million over claims it illegally abandoned six Airbus airplanes after ending their leases due to sanctions. STLC - Europe Eight, a division of GTLK Europe filed the lawsuit in London's High Court. It alleges that easyJet leased 'Airbus jets at Madrid and Cyprus without maintenance in 2022 while airport storage charges continued to accumulate. According to the claim the carrier leased 'aircraft from STLC, and informed the lessor 'April 2022 it was terminating leases due to EU sanctions that prevented them from maintaining or repairing jets. The report said that STLC maintains the sanctions do not apply since the aircraft was outside of Russia and the leasing company is based in Ireland. The poor condition of three jets that were parked at Cyprus' Larnaca International Airport led to a sale for $32,5 million less than anticipated. According to the report, three more aircraft are still parked in Madrid. EasyJet's spokesperson said that the airline will defend the claim fully and refused to comment further. GTLK has not responded to the request for comment.
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MISO launches fifth Fast-Track Study Cycle for 7.3 GW Power Projects
Midcontinent Independent System Operator said that on Tuesday it had started a fifth round of expedited study covering about 7.3 gigawatts worth of 'new power generation and storage projects,' as the electricity demand in its U.S. territory increases. The portfolio proposed by MISO includes solar and wind farms as well as battery storage facilities in the North, Central and South MISO regions. These projects will be in service by 2029. They include gas plants in Louisiana, Indiana and Kentucky, as well as battery storage developments. The U.S. electricity demand is increasing as power-hungry data centers, new manufacturing facilities and wider electrification are driving consumption higher. According to the Energy Information Administration, after reaching a second consecutive record for U.S. electricity use in 2025, it is expected that consumption will increase in 2026-2027. MISO reported that the ERAS program was launched to expedite studies of projects deemed important to grid reliability. The program has already studied 58 projects, with a total capacity of nearly 29 GW, or is'set to study' them. Five more projects, totaling 3 GW, are nearing completion. The program has a?cap of 68 projects, and will end in 2027.
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Wizz Air and Ryanair demand NATS overhaul following UK flight disruption
Budget airlines Wizz Air and Ryanair called on Tuesday for a restructure of Britain's air-traffic control provider NATS after a new technical issue disrupted hundreds of flights at major airports across the country. "A national infrastructure provider that is critical to the aviation industry should not bring it to a standstill repeatedly." NATS in its current form is not suitable for the purpose it was intended for," said a Wizz Air spokesperson in a statement. Rival airline Ryanair has also criticised this agency and demanded the resignation of its CEO Martin Rolfe. We were told that lessons would be learned from the collapse of 2023. "Resilience will improve" was the message. We were told that the systems had been repaired. "Yet here we are once again," Ryanair Chief Operating Officer Neal McMahon stated. NATS didn't immediately respond to an inquiry for comment. The British aviation regulator stated that in 2024 NATS would need to review its contingency plan for outages, after automatic processing of flight schedules had failed a year before, causing chaos at Britain's airports. The UK's civil aviation body said on Tuesday that it had been in contact with NATS regarding the?incident. It expects NATS to provide a complete report about the incident. Civil Aviation Authority spokesperson: "We will consider if any additional?steps are needed?to ensure the?safereliability of the UK's Air Traffic Control System."
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Treasury website shows that the US has issued new sanctions against Iran.
The United States issued 36 new'sanctions' on Tuesday, targeting Iran’s aviation sector and other companies. This is part of an effort to increase economic pressure on Tehran at a time when the Middle East war has entered its seventh month. The U.S. Treasury Department stated that the action was taken to 'ground Iran's Mahan Air, and other Iranian airlines, as well as covert?front companies, foreign intermédiaires, and deceptive?trans-shipment routes?, which Iran relies upon?to acquire U.S. origin aircraft and sensitive technology? The Treasury issued an alert to financial institutions asking them to report networks of procurement supporting Iran's aerospace industry. It also targeted companies based in Turkey, the United Arab Emirates and other countries that they claimed helped Tehran purchase U.S. aircraft and sensitive technology. "This is a warning to anyone doing business with Iran's airlines that we have sanctioned today: you are at risk of being cut off from global financial system," said?U.S. Treasury Secretary Scott Bessent made a statement.
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Germany warns that Russian winter attacks will intensify after it sends more Patriot missiles into Ukraine
Boris Pistorius, Minister of Defence, said on Tuesday that Germany will be sending Patriot air defence missiles from its own national stock to Ukraine. He warned that Russia would likely 'intensify' their air campaign against Ukrainian infrastructure in the coming winter. Pistorius, speaking at a videoconference with nations that support Ukraine, said he decided to "deliver immediately" more PAC-2 missiles. Officials say that Patriot missiles are the only effective defense against Russian ballistic missile attacks in Ukraine. Pistorius stated that "since Russia is only making a very slow advance at the frontline, it is trying to destroy Ukraine's critical infrastructure and economic base by air raids on port installations, power stations, and other civilians targets." He said that the damage would be "even worse" if the temperatures dropped. Pistorius has not stated how many missiles Germany will provide. He also said that Germany would continue to supply drones, long-range ammunition and air-to-air weapons. Yevhenii Khmara, Ukrainian Minister of Defence, said that Kyiv has signed a contract to purchase around?1,000 Patriots. However, the majority will only be delivered in the next few years. He called on allies to use their stockpiles 'for Ukraine now', on the assumption that Kyiv will replace those missiles in future deliveries. NATO Secretary General Mark Rutte urged allies to increase their support, saying that civilian casualties in the war had reached their highest level since may 2022. "Nations ?must dig deeper. He said, "We do not have any choice." Before the meeting, Rutte and European Commission President Ursula von der Leyen announced that EU member states had agreed to utilize part of an EUR90 billion ($105 billion), EU loan in order to allow Ukraine purchase crucial supplies for Patriot system.
Bousso: The future of Mideast oil is bleak as Iran tightens its grip on Hormuz.
Energy markets are stuck in a limbo of uncertainty that is not easy to get out. Buyers are increasingly worried about the reliability and security of Gulf supply, which is creating a new alarming norm for producers in the region. The energy sector in the Middle East is more vulnerable and weaker than ever before, five months after Israel and the United States launched their military strikes against Iran. Energy infrastructure is under attack, and shipping routes are becoming increasingly restricted. Importers are starting to avoid supplying a region which accounted for a fifth of the world's oil and LNG exports prior to the war. The conflict has spread from the Strait of Hormuz, which was the main front of this war, to the Red Sea in recent weeks. Yemen's Iran backed Houthi militia declared last week an embargo against Saudi exports. The attacks on oil tankers and energy assets have made it difficult to ship goods from the west coast of Saudi Arabia, which was a vital alternative route for shipments after Hormuz effectively closed earlier this year. The security situation has continued to deteriorate since the breakdown of the U.S. Iran interim ceasefire agreement on June 17th. After a short hiatus of a few days, the U.S. Military resumed Tuesday its strikes on Iranian targets in the area after Tehran and its militias in Yemen, Iraq, and Kuwait targeted oil tankers, energy infrastructure and two major refineries that had to be shut down.
Once again, the result is a dramatic drop in Middle East exports. The combined exports of the Gulf and Saudi Arabia’s west coast fell this week to approximately 6.2 million barrels a day. This is less than half of the peak wartime exports of 13.4m bpd, which were reached in late June. It's also far below the 20m bpd average that used to leave the region prior to the conflict.
What is most alarming is that this volatility isn't the only thing on the energy market. It is also a sign that complex and opaque trading patterns, created by "this stop-and start conflict", may be here to remain.
AN ACT IN DEPRAVED DESPERATION
The first question is whether Iran has control over the Strait of Hormuz.
Gulf states are desperate to resume energy exports after months of conflict to replenish their state revenues. Many are willing to consider an idea which was 'almost unthinkable just weeks ago.' This is granting Iran a role in managing the traffic through this critical waterway. Oman had presented Tehran with an Oman-backed proposal earlier this week under which Iran was to help administer the Strait and collect voluntary fees from vessels using the route. Iran rejected the proposal and insisted that "the entire inbound shipping route as well as part of the outbound routes should be under its control," according to an Iranian official.
Washington has consistently rejected the idea that ships would have to pay tolls to cross the Strait.
But military realities are narrowing the options. U.S. Air Strikes have failed to stop Tehran from disrupting shipping, and President Donald Trump seems reluctant to engage in a regional war. In these circumstances, it is becoming more likely that a compromise will be reached which gives Iran some authority over the Strait of Hormuz.
Tehran would see an agreement formalising Iran's influence on the world's largest energy chokepoint as a major victory and it could have far-reaching implications.
RISK PREMIUM
It is easy to see the immediate impact on finances. The cost of oil and gas exports from the Gulf would be increased by a toll system.
However, the psychological impact would be more significant.
Gulf energy has been a reliable source of energy for decades. This reputation allowed the producers to charge a premium price from Asian buyers.
The war showed that Iran could disrupt one of the most important trade routes in the world using inexpensive means such as missiles and drones. The threat will remain even if diplomatic agreements are reached and shipping resumes.
This sword is not cheap. Gulf exporters may be forced to discount their products to retain customers, even after today's physical disruptions are resolved.
Already, signs are emerging that this will happen. Mangalore Refinery, India's state owned refinery, issued a crude procurement tender this week that explicitly requested suppliers to avoid the Strait of Hormuz and the Red Sea. In effect, this means that suppliers will have to continue to use more expensive and less efficient routes, regardless of what happens in the next few months between the U.S.A. and Iran. Asian and European importers are looking for lower prices and more reliable supply guarantees from Qatar and the United Arab Emirates.
Insurance premiums that are higher, shipping costs that are more expensive and concerns about supply security will likely become the new cost of doing business.
The energy market will become more opaque as a result of this new reality. Gulf producers may be forced to agree on more direct, bespoke supply deals with importers outside the highly liquid and efficient market today.
The Middle East is drifting towards a new balance in which energy flows but always under the shadow of coercion. The immediate crisis may pass, but damage to the reputation of the region could be far more lasting.
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(source: Reuters)