Latest News
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Air New Zealand names digital chief as its next CEO to navigate firm through challenges
Air New Zealand named Nikhil Ravishankar its new chief executive on Wednesday, replacing Greg Foran. The airline is currently dealing with supply chain and engine problems that will continue to impact earnings until 2025. Foran, who was hired by the airline as the COVID-19 epidemic was looming, announced his resignation in January and will be departing the airline in October. The flag carrier is still dealing with supply chain issues and engine maintenance problems. Ravishankar will take over the top position on October 20, after serving as Air New Zealand’s chief digital officer (CDO) for almost four years. Before joining Air New Zealand, Ravishankar held senior leadership positions at Vector, and Accenture, where Accenture was the managing director. Therese Walsh, chair of the airline industry, said: "Airlines continue to face enormous challenges. "Nikhil brings to the table a new perspective that is rooted in New Zealand values, and a profound knowledge of critical infrastructure and airline across various sectors." Air New Zealand has struggled due to a small domestic market, and the fierce competition of Australian carriers Qantas Airways & Virgin Australia. Air New Zealand has also experienced delayed plane deliveries, and several jets have been grounded. Foran, an ex-Walmart executive, led the Kiwi flag airline through a turbulent time. The airline faced unique challenges compared to other global airlines, in part due to the geographic isolation of the country. The airline had previously warned that up to eleven of its aircraft could be grounded at certain times during the second half fiscal 2025. This would have a negative impact on the firm's profits. The company also expects lower earnings in 2025. It cites uncertainty about global engine maintenance delays, and compensation levels.
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Source: Brazil asks US not to impose 50% tariff on Embraer planes and food products.
Sources familiar with the issue said on Tuesday that the Brazilian government asked the U.S. not to include food products or Embraer aircraft in the tariff of 50% it intends to impose starting August 1. Sources said that the request was at the forefront of recent discussions between Brazilian officials and U.S. officials. This included three recent calls between Brazil's Vice-President and Trade Minister Geraldo Alckmin, and U.S. Secretary of Commerce Howard Lutnick. The request was first published in the newspaper Folha de So Paulo on Monday. The press office for the Brazilian Development and Trade Ministry headed by Alckmin denied the report and said that the government was working to suspend tariffs in all sectors. A Brazilian official who spoke on condition of anonymity in order to discuss this sensitive subject acknowledged that there were some government priorities which it was not able to make public due a confidentiality clause within the negotiations. The source also said that the company wanted to avoid the impression that it was trading some sectors in exchange for others. The same source added, however, that certain sectors should be given priority in the discussions due to their severity in some areas. Embraer is the No. The government is most concerned about Embraer, the world's No. The company has warned that a tariff of 50% could lead to cancellations of orders, delayed deliveries, and job losses, which would negatively impact its revenue, just as the pandemic had. Ports and Airports minister Silvio Costa Filho stated that the government would "do everything in its power" to assist Embraer, hinting towards the possibility of providing credit lines for the planemaker. The U.S. also buys a lot of Brazilian food, including coffee and orange juice. Trump's tariff plan could have a devastating effect on Brazil's citrus belt. Factory production is already being cut back and farmers are considering letting fruit rot because of low prices. Tariffs may also halt the flow Brazilian coffee into the U.S.
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United Airlines flight attendants reject tentative agreement
The union representing United Airlines flight attendants said that the flight attendants voted Tuesday to reject a tentative agreement on a new contract. The Association of Flight Attendants - CWA, which represents United's 28,000 flight attendants, reported that 92% of eligible voters had cast a vote, with 71% voting against the agreement. According to estimates, the agreement that the union and United reached in May would result in a 40% financial gain for flight attendants during the first year of their new contract. Ken Diaz, the president of United Airlines' chapter of AFA-CWA said that the agreement did not "go far enough" to address the demands of flight attendants. Diaz stated that "our union will survey our members as soon as possible in order to identify the main issues that Flight Attendants want to fight for to be included in an agreement." The union will return to United Airlines' negotiating table until a new deal is reached. United's flight crews filed for federal mediation with the Department of Justice in 2023. They are now seeking a new agreement that includes a two-digit base pay increase, better compensation for hours worked, including time spent on the ground, as well as retroactive payment, more flexible scheduling, and improved rules. Since 2020, they haven't been given a raise. (Reporting and editing by Alan Barona, Bengaluru)
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FAA failed to act prior to helicopter crash: US Transport chief
Sean Duffy, U.S. Secretary of Transportation, said that the Federal Aviation Administration did not act on dozens near-misses before a deadly January crash involving an American Airlines regional plane and an Army helicopter at Ronald Reagan Washington National Airport. The mistake was that it was not anticipated. Duffy told reporters that there were 84 near-misses within the D.C. area in the previous three years, but no one took any action. Someone was sleeping at the wheel. "Someone should have seen it." The crash on January 29, which claimed the lives of 67 people, happened just a few days after Donald Trump was inaugurated. Duffy stated that it was unclear whether the safety data were elevated to the then Transportation Secretary Pete Buttigieg, or the FAA Leadership under President Joe Biden. In March, the National Transportation Safety Board reported that between 2021 and 2021, there had been 15,200 incidents of air separation near Reagan involving commercial aircrafts and helicopters. This included 85 close calls. Duffy stated that the FAA is looking into other recent near miss incidents and possible hot spots. Recently, we've had some near misses. Duffy said that the FAA is not ignoring this, and was evaluating "what steps we need to take to ensure it won't happen again." Both parties of Congress have asked why the FAA has not acted for so many years in response to close calls with helicopters near Reagan. "Clearly, Something was missed " FAA Deputy Director Chris Rocheleau told Senators in March. Early in May, the FAA banned the Army from flying helicopters around the Pentagon After a close call on May 1, Two civilian aircraft were forced to abort their landings. A three-day investigation into the crash in January will begin on Wednesday by the NTSB. The NTSB is reviewing the Army helicopter altimeters and air data systems as well as FAA oversight over Washington airspace. On Tuesday, Senator Ted Cruz, along with several other Republican Senators, unveiled legislation that would require military helicopters to use ADS-B technology for tracking aircraft when they are near civilian aircraft, and all civilian aircraft must use ADS-B. At the time of the collision in January, the accident helicopter did not use ADS-B. Reporting by David Shepardson, Editing by Chizu nomiyama and Les Adler
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Union Pacific's purchase of US Rail rival is subject to lengthy review
Surface Transportation Board, an independent federal agency in Washington that oversees the rail industry's competition and important areas, will have to approve Union Pacific's proposal for the purchase of smaller rail operator Norfolk Southern. The $85 billion agreement announced on Tuesday will create the first coast-tocoast freight rail operator in the United States and transform the movement of goods, from grains to automobiles across the U.S. Here are the details about the board, and what they will be looking at in relation to the Union Pacific transaction. What is the Surface Transportation Board (STB)? The agency was created in 1996 and reviews rail mergers, rate issues, service concerns, and large construction projects. The Interstate Commerce Commission was founded in 1887 and it replaced this agency. Patrick Fuchs, STB Chairman, has stated that he would like the agency to update its regulatory framework in order to increase competition and lower regulatory barriers. In 2021, the board rejected Canadian National’s plan to put Kansas City Southern into a temporary “voting trust” that would have allowed Kansas City Southern's shareholders to get consideration for the deal without waiting for full regulatory approval. This, along with a higher offer from another Canadian railway, led to the end of Canadian National's bid. What is the procedure for a merger of railroads? It could take up to a year for approval. The applicant must first submit a notice stating that they plan to request merger approval. Three to six months later, the application for merger is filed. The STB will then decide whether the merger is complete. It will open for 90 days for public comment and response. The board could spend an additional year holding an hearing and receiving rebuttals or filings. The board usually takes 90 days after the evidence has been closed to write an opinion, which includes a period of oversight. The Attorney General can also weigh in on mergers of large railroads. This gives the Justice Department an opportunity to have a say in the merger. What is the typical recommendation of the board for a merger in rail? After a seven-day public hearing, the STB approved the acquisition of Kansas City Southern Railway Company, by Canadian Pacific Railway Limited. The approval included an unprecedented seven year period of oversight and many conditions, including those addressing environmental impacts, preserving competition, protecting railroad workers, as well as promoting efficient passenger rail. What will the Board consider when evaluating the Union Pacific merger? This is the first deal to be reviewed under the 2001 rules that "substantially increased the burden on applicants" to prove that a proposed deal would be in public interest. They would also be required to demonstrate how the deal would increase competition in certain key areas. The board will also examine how product shippers view the deal, and its impact on labor unions. The Surface Transportation Board will hear arguments on Tuesday from the largest U.S. railroad union, the International Association of Sheet Metal, Air, Rail and Transportation Workers. The company is concerned that the deal will reduce employee safety, job security and service quality.
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Freeport LNG Texas plant returns to operation on Tuesday, according to data
Freeport LNG announced on Tuesday that the three trains at their facility in Texas were operating after data from financial company LSEG indicated a reduced throughput since last Saturday. Freeport LNG's facility on Quintana Island, the third-largest LNG plant in the U.S., has experienced periodic outages ever since it began operating. Markets closely monitor its operations as in the past, they have influenced LNG price. According to LSEG data, Freeport's feedgas nominated increased to 1.9 bcf from 1.1 bcf Monday. LSEG data shows that when all three trains are running, Freeport pulls between 1.9 bcfd and 2.3 bcfd feedgas. The data shows that the number of nominations has decreased since Saturday. Freeport confirmed that the three trains are operating but refused to comment on the past three days. Curtis Williams, reporting from Houston
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The largest rail union in the United States intends to oppose Norfolk Southern's merger with Union Pacific
The largest rail union of the United States announced Tuesday that it will oppose Union Pacific’s proposed $85 billion buyout of smaller rival Norfolk Southern, citing concerns over how the largest ever buyout in this sector will impact U.S. infrastructure and workers. The Transportation Division of SMART, International Association of Sheet Metal, Air, Rail and Transportation Workers, has announced that it will oppose the merger at the Surface Transportation Board review. The union stated that it approached this development with a "measured skepticism" based on the impact such a consolidation could have in real life, including the effects of a merger on workers, safety and service quality as well as the health of the industry in the long term. If approved, this deal will create the first coast-tocoast freight rail operator in the United States, by combining Union Pacific’s strongholds in the western two thirds of the United States, with Norfolk’s 19,500 mile network, which primarily spans the 22 eastern states. Reporting by Jody Gooey in New York, editing by Chizu Nimiyama
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Greek ship manager is'relieved to see' Houthi video that shows missing seafarers still alive
The manager of the vessel in Greece that sank earlier this month after it was attacked by Houthi militants near Yemen expressed his relief after watching a video which showed 11 crew members still alive. The Houthis, allied with Iran, released the six-minute video on Monday. They claimed to have rescued seafarers aboard the Eternity C cargo vessel flying the Liberian flag. The Athens based ship management company issued a statement saying that efforts are being made to ensure "safe and rapid return of the sailors to their families". The company said that it was "deeply relieved" to see the video released by the Houthis, which showed that 10 of its missing crew members and one of the vessel’s security guards (11 total) were alive and appeared to be receiving treatment. The Philippine government confirmed Tuesday that nine of those rescued seafarers are Filipinos. Hans Cacdac, the minister for migrant workers, said that the sailors are in "good health" according to their family members and the government is working hard to ensure their release and return. Cosmoship said it hoped that the Houthis would "release our crew as soon as possible". Eternity C is the second vessel to sink in Yemen this month, following repeated attacks from Houthi militants using sea drones and rocket propelled grenades. The Magic Seas was another Greek-operated ship that had been lost a few days before. The Houthis have re-initiated their attacks against shipping. Between November 2023 to December 2024, they hit over 100 ships in a show that they claimed was in solidarity with Palestinians during the Gaza war. The attacks forced the crew of Eternity C and its three armed guards to abandon ship. A private mission rescued ten of them, and five others are believed dead. The Houthis released on Monday a video of six minutes showing images of missing seafarers. Some of them were talking on the phone to their families. The Houthis also presented testimony that crew members had not been aware of the Houthi's maritime ban on vessels heading to Israeli ports. The vessel was said to be heading to Israel's Eilat port to load fertilizers. Could not independently verify footage. Reporting by Renee Maltezou, Jonathan Saul and Helen Popper; editing by Helen Popper
UPS reports disappointing quarterly results due to shifting trade policies
United Parcel Service announced a drop in profit and revenue for the second quarter on Tuesday. The decline was due to new "de minimis tariffs" on low-value Chinese imports and rising risks from President Donald Trump’s trade policies.
In May, the White House began charging tariffs for shipments from China under $800 that were previously exempt. As part of the trade truce, these levies have been reduced from 120% to 54%. However, consumers are still expected to suffer a decline in demand.
Experts believe the removal of the exemption likely creates a greater-than-expected volume headwind for the company's international segment, as customers may cut back on discretionary online purchases, reducing shipments from bargain e-commerce sellers such as Temu and Shein on UPS's most profitable China-U.S. trade lines.
For the second quarter in a row, UPS did not update their full-year forecast due to macroeconomic uncertainties. UPS's last forecast from January projected revenue of $89.0 Billion by 2025.
It reported a net profit of $1.55 per common share for the three months ended June 30 compared to $1.79 per common share a year ago.
UPS and FedEx, which compete with it in the market, are seen as indicators of the health and prosperity of the global economy because they serve clients from all industries and geographical areas.
In premarket trading, UPS shares were down by 1.4%. The shares have dropped by more than 19% from the beginning of the year compared to a drop of about 14% in the shares of FedEx. Reporting by Abhinav Paramar in Bengaluru, Editing by Devika Syamnath
(source: Reuters)