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Aena, a Spanish airport operator, will invest $15 billion over the next five years in upgrading airports.
Aena, the Spanish airport operator, announced on Thursday that it will triple its investment to 12,88 billion euros (15.24 billion dollars) between 2027-2031. The aim is to upgrade terminals in order to accommodate an increase in passenger traffic. The company expects Spanish airports to handle 320 million passengers by 2025. This is a 3.4% rise from the previous year. Record 309 Million The Spanish economy has grown at a rapid pace, thanks to booming tourism. Aena shares dropped 4.7% after the announcement on Thursday. Airport operator anticipates that the volume of passengers will continue to grow in the future. The main airports of Spain Are set to become major hubs of intercontinental connectivity. In a speech delivered on Thursday, Chief Executive Maurici Lucena stated that "Madrid airports and Barcelona airports have reached capacity and require a new round of investment." "They are very busy," he said. In the first eight month of 2018, international arrivals to Spain grew by 5.9%, reaching 75.4 millions. Lucena said that Aena would face both technical and commercial challenges in the years to come, since the company would be undertaking multiple projects simultaneously at airports across Spain while ensuring uninterrupted operation. Aena, which is the largest airport operator worldwide in terms of passengers and has budgeted 3,54 billion euro of investment for the four-year period ending in 2026. According to the company, the Spanish cabinet will review the proposed investment plans on October 15.
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The key to the surprise Air Europa deal in Turkey was control
Turkish Airlines' surprising deal to buy a stake in Spanish airline Air Europa was largely due to the fact that it was willing to share control with Hidalgo's family, according to four sources. This deal is a rare non-European airline's stake in Europe. Airlines are trying to consolidate Europe's fragmented markets and buy smaller struggling operators such as Scandinavia's SAS or Italy's ITA Airways. Sources close to the deal have said that Air France-KLM, Lufthansa and others wanted more control over Air Europa. Turkish Airlines, with its deeper pockets and political support and a desire to expand globally, was willing to accept a smaller stake. Turkish Airlines Chairman Ahmet Bolat announced on Wednesday that the airline had agreed to invest $300 million in convertible debt. This is equivalent to 25-27% of Air Europa. The crux of the talks, previously unknown, is Turkish Airlines' willingness and ability to give up influence to get a foothold with Iberia. This opens up fast-growing and important routes to Latin America. Sources familiar with the deal said that both Air France-KLM and Lufthansa demanded a "path to control" in a few short years, something the Hidalgos refused to do. Source: The Turkish deal "fit better", added the source. Three other sources confirmed that the issue of controlling stake was the reason for both Air France-KLM & Lufthansa pulling out of the deal. Air Europa's estimated value of up to 1,2 billion euros was also deemed too high by one of the sources. Lufthansa has not responded to a comment request. A spokesperson for Air France-KLM said that the carrier pulled out of the deal because it could not reach an agreement with Air Europa's owners Globalia on certain key issues, without commenting if they wanted a majority share. Javier Hidalgo of Globalia, the son Juan Jose Hidalgo's chairman, refused to comment on this story when contacted by. Turkish Airlines' deal is unusual - non-European carriers rarely take stakes in European carriers. This is because European Union regulations prevent them from acquiring majority ownership of an EU airline. Analysts and executives have said that Air Europa has always been a difficult case to navigate from a competition perspective, given British Airways' 20% ownership. The benefits for Turkish Airlines, however, are less about financial gains and more about geopolitics, connectivity and other factors. Neil Glynn is an analyst with Alvarez and Marsal. He said that taking minority stakes can lead to a loss of control and a diminished ability to influence the strategy. Air France-KLM, Lufthansa and other airlines balked at having to balance out so many controlling parties. IAG had previously attempted to buy out Air Europa, but the plan was scrapped last year due to regulatory concerns. Business Strategy or State Plan? Turkish Airlines touts the deal as a chance to expand into its two least penetrated markets, Iberia and Latin America, and link them with their hub-and-spoke system. It also has political weight behind it. Turkish Transport Minister Abdulkadir Uraloglu, who appeared in Seville with the airline this week to promote the deal, said it would fit into a wider "strategy", to connect Turkey to the world. Ahmed Bolat, Turkish Airlines' Ahmed Bolat, told reporters the decision was made as a matter of business even though the Turkish government had the firm's attention. He said that "(Turkish listens and considers the strategies of the state, but its own strategies are developed privately." The Turkish carrier faces few financial obstacles that could threaten its relatively small share. The forecast net debt-to-EBITDAR ratio of the group for 2025 is 1,60. This ratio is similar to Lufthansa or Air France KLM, even though they have weaker balances and less support from their governments. Erdem Kayli is the research director for TEB Investment/BNP Paribas. $1 = 0.8448 euro (Reporting and editing by Adam Jourdan, Susan Fenton, Tim Hepher, Inti Landauro and Andres Gonzalez)
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The price of oil shipping has risen due to increased exports from the Middle East and tighter vessel availability
According to industry sources, and LSEG's data, freight rates for Very Large Crude Carriers have risen to their highest level in over two years. This is due to a tightening of tanker supplies, resulting from an increase in Middle East exports, and more arbitrage supplies into Asia. The key VLCC rate on the Middle East-China route, also known as TD3C LSEG data shows that, jumped up to W108 in the Worldscale Industry Measure, its highest level since November 20,22. According to industry sources, this is at least $6.6 Million. Since the beginning of this year, the rate has risen by almost 150%. A shipbroker said on Thursday that "we are seeing constant cargoes coming from ex-MEG loading (Middle East) and ex Atlantic while the vessel's tonnage list has been balanced very tightly." Shipping industry sources told the Asia Pacific Petroleum Conference, held in Singapore last week, that robust VLCC freight rates will yield attractive earnings to shipowners this coming year. Data from Kpler, an analytics firm, showed that crude exports from the Middle East will exceed 18 million barrels a day in September, for the first since April 2023. This is after the Organization of the Petroleum Exporting Countries and its allies, a collective known as OPEC+ agreed to increase oil production. The robust Asian demand will also force tankers to travel further distances due to the arbitrage supply. Indian refiners, for example, increased their U.S. crude purchase in October and November while Chinese independent refiners buy oil from Brazil and West Africa. Sentosa Shipbrokers said that the main reason for the September surge was the arbitrage between U.S. Gulf and East Asia flows, as well as the tightness caused by the vessels' commitment to these long-haul journeys. Anoop Singh, global director of shipping research for Oil Brokerage, says Saudi Arabia exports more oil because the demand for burning crude for electricity generation in summer has ceased, while arbitrage opportunities are wide open due to high Dubai crude prices. He said that the short-term forecast is for the momentum in Dubai prices to continue through the end of this year and into the first quarter of next year. The strength could be amplified further if the medium-quality crude supplies, like those from Russia, are reduced due to geopolitical tensions. U.S. president Donald Trump stated on Saturday that he was willing to impose new energy sanctions against Russia if NATO nations stopped purchasing Russian oil.
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The price of oil shipping has risen due to increased exports from the Middle East and tighter vessel availability
According to industry sources, and LSEG's data, freight rates for Very Large Crude Carriers have risen to their highest level in over two years. This is due to a tightening of tanker supplies, resulting from an increase in Middle East exports, and an increase in arbitrage supplies into Asia. The Middle East to China VLCC Spot Rate, also known as TD3C. LSEG data shows that jumped up to W108, the highest since November 2022. According to industry sources, this is at least $6.6 Million. Since the beginning of this year, the rate has increased nearly 150%. A shipbroker said on Thursday that "we are seeing constant cargoes coming from ex-MEG loading (Middle East) and ex Atlantic while the vessel's tonnage list has been balanced very tightly." Shipping industry sources told the Asia Pacific Petroleum Conference, held in Singapore last week, that robust VLCC freight rates will yield attractive earnings to shipowners this coming year. Data from Kpler, an analytics firm, showed that crude exports from the Middle East will exceed 18 million barrels a day in September, for the first since April 2023. This is after the Organization of the Petroleum Exporting Countries and its allies, a collective known as OPEC+ agreed to increase oil production. The robust Asian demand will also force tankers to travel further distances due to the arbitrage supply. Indian refiners, for example, increased their U.S. crude purchase in October and November while Chinese independent refiners buy oil from Brazil and West Africa. Sentosa Shipbrokers said that the main reason for the September surge was the arbitrage between U.S. Gulf and East Asia flows, as well as the tightness caused by the vessels' commitment to these long-haul journeys. Anoop Singh, global director of shipping research for Oil Brokerage, says Saudi Arabia exports more oil because the demand for burning crude for electricity generation in summer has ceased, while arbitrage opportunities are wide open due to high Dubai crude prices. He said that the short-term forecast is for the momentum in Dubai prices to continue through the end of this year and into the first quarter of next year. The strength could be amplified further if the medium-quality crude supplies, like those from Russia, are reduced due to geopolitical tensions. U.S. president Donald Trump stated on Saturday that he was willing to impose new energy sanctions against Russia, provided all NATO countries stopped purchasing Russian oil.
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Egypt's billboard explosion strains the eyes, but increases profits
Cairo's roads are not for the weak-hearted. They have potholes and obstacles like donkey carts. Now, drivers are faced with a new hazard - a proliferation of mismatched and flashy billboards that compete for their attention. According to AdMazad a media and advertising analytics company, the number of billboards that line Cairo's streets has increased by more than twofold in six years. This is more than 30 ads per square kilometre, and that's without counting the digital flashing ads which have increased more than ten-fold in the past decade to reach more than 300. Ahmed Adel, a resident of Cairo, said that there was no place on the streets without ads as he drove past one of the high-end commercial and residential districts. Advertising is booming in Egypt, largely due to the rapid expansion and modernization of Egypt's transportation network. Since Abdel Fattah al-Sisi took power in 2014, he has invested billions of dollars to build new roads and bridges that now criss-cross Cairo. These ads, which line the roads, promote a variety of products, including detergents, fast foods, and real estate developments. They are often accompanied by bright LED displays, which, according to Adel, strain drivers' eyes at night. Ahmed Afify is the head of MOT Investment and Development (a Transport Ministry investment firm), and he says that this industry has become an important source of revenue for the state. AdMazad's data indicates that revenues from "out of home" advertising (billboards, transit ads and other outdoor media) will grow by over 50% between now and 2024 to reach about 6.3 billion Egyptian Pounds ($130 million). Afify stated that the money is largely transferred to the state's treasury by the Transport Ministry and its affiliate entities. He said that ad prices are affected by the location, and can increase when competing brands compete for prime spots. Those stuck in traffic may find them amusing or a marketing tool. Others find the billboards a stress-inducing addition to their commute. Khaled Salaheldin, a psychotherapist in Egypt, has pointed out the mental toll that people can take when they are under financial stress. This is a reality Egypt is increasingly experiencing after years of inflation. He said: "When I'm constantly exposed to advertisements and idealized lifestyles it leads to comparisons that make me feel inadequate and insecure." Egypt's prime minister Mostafa Mahbouly convened a meeting on Wednesday to discuss standards for ads and billboards. He said there should be stricter regulations to ensure that ads "preserve urban fabric," "uphold societal norms" and "uphold aesthetic value." Reporting by Jaidaa TAHA and Heba FOUAD in Cairo. Editing by Alexander Dziadosz & Andrew Heavens
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French unions strike against austerity, pressuring Macron
Teachers, train driver, pharmacists, and hospital staff all went on strike in France, and teenagers blocked high schools as part of a protest day against budget cuts. The unions want the fiscal plans of the previous government scrapped. They also want more public spending, higher taxes for the wealthy and an end to the unpopular rule that made people work longer for a pension. Many metro lines in Paris were scheduled to be suspended throughout the day, except during morning and afternoon rush hours. Some students gathered at the entrance of some schools to block them. A student raised a placard in front of Lycee Maurice Ravel in Paris, France. The message read: "Block Your High School Against Austerity." Social unrest occurs as President Emmanuel Macron, and newly appointed Sebastien lecornu, face a political crisis in order to control finances and bring the second largest economy of the eurozone under control. Workers Angry Over Fiscal Plans According to a source in the Interior Ministry, 800 000 people are expected to participate in protests and strikes. The main unions in the country said that "the workers we represent are furious" in a statement where they rejected the fiscal plans of the previous government, which were "brutal" as well as "unfair". Lecornu, who relies on other parties for legislation to pass, will have to fight a political battle in order to get a budget approved by the parliament for 2026. Francois Bayrou was Lecornu’s predecessor. He was voted out of office by the parliament for his plan to squeeze the budget by 44 billion euros. Lecornu hasn't yet stated what he plans to do with Bayrou’s plans. However, he has said that he is open to compromises. Sophie Binet, the CGT union's chief after meeting Lecornu in early this week, said: "We will continue mobilising as long as there are no adequate responses." "The budget decision will be made on the streets." PROtests Hit Schools, Trains The FSU-SNUipp trade union reported that one in three primary school educators were on strike. Officials said that the strike had a major impact on regional trains, but the majority of high-speed TGV lines in the country will be operating. Protesters blocked traffic near Toulon, a city in the south-east of France. Data from EDF showed that nuclear production was down by 1.1 gigawatts on Thursday morning, after workers reduced power output at Flamanville 1. Confederation Paysanne, the farmers' union has also called for mobilization. Pharmacists have been angry about changes that affect their businesses. The USPO pharmacists union conducted a survey among pharmacies and found 98% of them could close the next day. Early on Thursday, Interior Minister Bruno Retailleau informed reporters that some blockades had been removed by police in the Paris area. He said that up to 8,000 people could "sow chaos" and fight with the police. He said that 80,000 police officers and gendarmes would be on duty throughout the day. There will also be riot units, drones, and armoured cars. Reporting by Zhifan LIu, Makini BRICE, Dominique Vidalon Mathias de Rozario Juliette Jabkhiro Gus Trompiz Writing and editing by Ingrid Melander
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Memo says Spirit will cut flight capacity and jobs by 25%.
Spirit Airlines will cut jobs in November as it plans to reduce its capacity by 25% compared to the previous year, according to an internal memo. This is a further blow to the low-cost carrier. In a memo to employees, CEO Dave Davis explained that the cutbacks are intended to "optimize [our] network in order to focus on our most important markets". The memo stated that "These evaluations are bound to affect the size our teams, as we become an efficient airline." Uncertain is the number of roles which could be affected. According to the memo, the low-cost airline continues to evaluate its fleet size and plans to meet the leaders of the airlines' unions in the next few weeks. CNBC reported earlier on the restructuring plan. Spirit filed for bankruptcy last month, the second time within a year. A previous reorganization had failed to give it a more stable financial foundation. Spirit's financial troubles, along with a rush by U.S. carriers in pursuit of premium travelers, has raised fears that the cheap flight era might be coming to an end for budget-conscious travelers. United Airlines had earlier on Tuesday ruled out the possibility of bidding for Spirit's assets if and when they became available. This is expected to happen as part of Spirit's restructuring. Reporting by Gursimran K. Kaur in Bengaluru and Angela Christy; Editing by Alan Barona, Rashmi Aich
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France prepares for protests and strikes against budget cuts
Teachers, pharmacists, and train drivers are among the workers who will be striking in France on Friday as part of a protest against budget cuts. The unions want more public spending, higher taxes on the rich and the scrapping an unpopular pension change. Social unrest occurs as President Emmanuel Macron, and newly appointed Sebastien lecornu, face a political crisis in order to control finances and bring the second largest economy of the eurozone under control. According to a source in the Interior Ministry, 800 000 people are expected to participate in protests and strikes. Workers Angry Over Fiscal Plans The main unions in the country said that "the workers we represent are furious" in a statement where they rejected the fiscal plans of the previous government, which were "brutal" as well as "unfair". Lecornu, who relies on other parties for legislation to pass, will have to fight a political battle in order to get a budget approved by the parliament for 2026. Lecornu became prime minister after Francois Bayrou was ousted by the parliament last week over his plan to squeeze the budget by 44 billion euros. Lecornu hasn't yet stated what he plans to do with Bayrou’s plans but has said that he is open to compromise. Sophie Binet, the CGT union's chief after meeting Lecornu in early this week, said: "We will continue mobilising as long as there are no adequate responses." "The budget decision will be made on the streets." PROTESTS TO HIT SCHOOL, TRAIN The FSU-SNUipp said that one in three primary teachers will be on strike. The power company EDF announced that some of its employees would be on strike. Officials said that the Metro network in Paris will experience widespread disruptions, and regional trains as well. However, the majority of high-speed TGV lines will continue to operate. Confederation Paysanne, the farmers' union has also called for mobilization. Pharmacists have been angry about changes that affect their businesses. The USPO pharmacists union conducted a survey among pharmacies and found 98% of them could close the next day. BFM TV reported that Interior Minister Bruno Retailleau said 80,000 police officers and gendarmes would be deployed. Retailleau stated that riot units, drones and armored vehicles would be present to combat what he described as possible sabotage or attempts to block different sites in the early morning. He also said that he expected violent troublemakers to attempt to clash with the police. (Reporting by Dominique Vidalon, Mathias de Rozario, Juliette Jabkhiro Writing by Ingrid Melander Editing by Frances Kerry)
Libya's first oil company to be owned by a private firm is growing in the shadow of eastern commander
According to U.N. experts and shipping records, a Libyan company that is linked to a powerful faction in eastern Libya has exported at least $600,000,000 worth of oil since May. This marks the end of the National Oil Corporation’s monopoly over exports.
The little-known Arkenu Oil Company was established in 2023 and is the first private Libyan oil company to ship. This means that some of the oil revenue of Libya will likely be diverted away from the Central Bank of Libya.
Since the fall of Muammar Gaddafi, Libya has been divided by armed groups. It is now largely split between an internationally recognized government in Tripoli, located in the west, and a rival administration, controlled by Khalifa Hastar's forces, in the east.
The central bank of Tripoli has been at the center of many disputes, mainly over the distribution and use by that institution of the oil revenues. Haftar's troops, who control the majority of Libya's fields, have shut down production and exports periodically, most recently last August, to make sure money flows east.
Arkenu's ownership could not be determined. In a report submitted to the Security Council on Dec. 13, a U.N. expert panel said that Arkenu is indirectly controlled by Saddam Haftar. He is one of Khalifa Haftar’s sons.
Charles Cater is the director of investigations for The Sentry, a global investigative and policy organization.
For this article, we also interviewed Libyan experts, diplomats, traders, and reviewed over two dozen documents including letters from oil companies, government decisions, and bills of lading.
Arkenu's website and LinkedIn profile indicate that the company is headquartered in Benghazi. This city, located in eastern Libya, has a Mediterranean port with a terminal of oil under Haftar’s control.
Two sources claim that the company was founded in early 2023, by former employees of state-owned National Oil Corporation.
Arkenu website, but never received a response. A spokesman of the Libyan National Army (which Haftar commands) was also contacted without a response.
OPEC MEMBER
According to a U.N. Report, Saddam Haftar became chief of staff for the army's ground force in May of last year. This gave him control over the country's relations with its neighbouring countries, as well as its economic interests.
Arkenu's first connection to oil exports was when the Arabian Gulf Oil Company, a subsidiary of NOC awarded it ownership of a cargo in May. A letter dated 11 July seen by was the proof.
Arkenu exported seven more oil cargoes since then. Its total exports from May to December 2024 will be 7.6 million barrels based on shipping records and worth approximately $600 million if Brent crude average monthly prices are used.
Exxon Mobil, the U.S. oil giant, bought one of the cargoes destined to Italy on October 28, according documents and data reviewed by LSEG and Kpler.
According to a person with knowledge of the situation, Exxon purchased the cargo not directly from Arkenu but from another trader.
Unipec is the trading arm for China's Sinopec - the largest refiner in the world. At least two of these were destined for Britain or Italy.
Sinopec didn't respond to a comment request. It wasn't immediately clear whether Sinopec purchased the cargoes from Arkenu or another trader.
Requests for comments from the NOC, AGOCO, and central bank were not answered. The oil ministry refused to comment.
Libya, Africa's second largest oil producer, and a member of the Organization of the Petroleum Exporting Countries, has been in chaos since Gaddafi was overthrown, but oil exports remained under the control of the central government.
The NOC still accounts for a large part of Libyan exports. It has operated independently in this volatile country and maintained political neutrality.
Based on Kpler's data and calculations, it shipped 264 million barrels worth $21 billion in the same time period for Arkenu’s eight shipments.
SARIR AND MESSLA FIELD
Payments are made for NOC crude cargoes in dollars at the Libyan Foreign Bank, New York. Then they are transferred to the Tripoli Government's central bank account.
Shipping documents indicated that payments for Arkenu cargoes were to be made into accounts at the Dubai-linked state bank Emirates NBD, and Banque de Commerce et de Placements SA, both in Geneva. The documents did not indicate whether payments had been made to these accounts or where the money might have been deposited.
Emirates NBD stated that it could not confirm or deny client relationships because of internal policies and regulatory requirements. Banque de Placement confirmed or denied any client relationships in accordance with its policy.
U.N. experts say Haftar has the support of Egypt, Russia and United Arab Emirates.
He spent 20 years in the U.S. before returning to help rebels overthrow Gaddafi. He launched the Battle of Benghazi in 2014 and it has been his stronghold since then. His forces have a tight hold on the east of Libya where the majority of the main oilfields of the country are located.
Arkenu, in addition to being allowed to export crude oil, was also made a part-owner of the Sarir and Messla major oilfields. This is according to a letter from the NOC dated 10 July, during the tenure then NOC chairman Farhat Bengdara who resigned last week.
The letter didn't give any details about the partnership. AGOCO, a subsidiary of NOC, runs the two fields. They account for around 300,000. barrels of high-quality crude per day - same grade that Arkenu exports.
Cater, of The Sentry, said that there was no evidence to suggest that Arkenu had performed any development or services at the Mesla oil fields. Arkenu’s claims of hundreds of millions in NOC payments, made as oil export cargoes to Arkenu, raise serious suspicions of corruption.
Arkenu became a partner in the development of three smaller oilfields, Sultan and Latif (in Libya's east) and Tahara (in the west), according to an November 2023 cabinet resolution.
According to the U.N. Report, members of armed groups were appointed to different posts at the NOC as part of a reshuffle. This included setting up a separate office responsible for service contracts with private companies.
The U.N. report stated that "among them was an arrangement with the first privately owned oil company in Libya, Arkenu Oil Company."
(source: Reuters)