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Lufthansa wants to change its reputation as Europe's worst airline
Last year, the CEO of Lufthansa described its flagship airline as a "problem kid". This label has been difficult to remove, even with a turnaround plan. Carsten Spohr, who is trying to make things better by cutting costs, centralising operations, and simplifying a complex fleet has fallen further behind Air France KLM and British Airways' owner IAG. Lufthansa's stock is up a little, but IAG and Air France KLM are up 92% and 15% respectively. The group's operating margin shrank to just 4.4% in 2018, down from 7.6% a year earlier, and analysts predict 4.8% by 2025. Spohr stated last month that "we definitely lagged some of our competitors in terms of financial performance and, also, we lagged behind the operational performance until this summer." Lufthansa's changes, including a 20% reduction in administrative jobs and the retirement of old planes, will help it achieve an operating margin of 8% to 10% between 2028 to 2030. Ingo Speich is the head of corporate governance for Lufthansa's investor Deka Investment. He added: "It has to prove that it can reach its goals." 'LUFTHANSA FOCUSES ON THE RIGHT THINGS.' Analysts and investors said that Lufthansa is trying to make the right moves. Alex Irving, Bernstein analyst, said: "Lufthansa is focusing on the right things, namely driving productivity up and cutting costs." Boeing's long-delayed delivery of the new format with its plusher Allegris cabin will allow it to maximize sales and revenue from premium seats and products. The market also welcomed the decision to reduce 4,000 administrative posts over the next five-year period. Lufthansa could be forced to abandon its plans as it deals with more pressing and urgent issues, such as supply chain problems on the long-awaited Boeing planes or difficult union negotiations. Lufthansa issued two profit warnings in the past year, as strikes pushed costs spiraling out of control and hampered plans to increase its margin. The company has not reached a deal with the pilots' union, and strike talks are still possible. Jarrod Castle, UBS analyst, said: "We believe (the) outlook is going to dominate the results due to the possibility of a pilot's strike." GOOD LONG-TERM STRATAGE; WEAKNESSES IN EXECUTION Lufthansa wants to simplify its complicated structure that includes six hubs, nine airline brands ranging between ITA Airways and Eurowings. Hendrik Schmidt is a corporate governance specialist at German asset manager DWS. He said: "This variety of brands are confusing for customers, and it appears to be hard for management control." The global economy is also facing a number of challenges, including a costly U.S. shutdown that has affected the airline industry and softer transatlantic travel. Speich, Deka's Speich, is unsure about the future. "Lufthansa has contradictory business practices." Speich stated that the long-term strategic plan is correct, but added: "On one hand, execution has been weak in the past".
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US cancels 13 routes of Mexican Airlines citing issues with competition
The U.S. announced on Tuesday that it had revoked approval of 13 routes for Mexican carriers to enter the United States. It also canceled all passenger and cargo flights from Mexico City’s Felipe Angeles International Airport bound for the United States. Sean Duffy, Secretary of Transportation, said that Mexico had "illegally cancelled and frozen U.S. carrier flight for three years without any consequences." Duffy's orders also cancels or freezes flights by Aeromexico Volaris Viva Aerobus, and stops the growth of Mexican carriers combined passenger and freight services - called "belly-cargo" - that connects Mexico City to Benito Juarez International Airport (the older and primary airport in Mexico City). Duffy also proposes to ban Mexican passenger airlines from transporting cargo between Juarez, Mexico and the United States. This would go into effect within three months of a finalized agreement. "Until Mexico ends the games and honors their commitments, will continue to hold Mexico accountable." Duffy stated that no country should be allowed to exploit our carriers, market and flyers without consequences. Mexico was not in compliance with the Transportation Department, according to the department. Bilateral aviation agreement from 2022 When it cancelled the slots of U.S. passenger airlines and forced U.S. cargo carriers to relocate their operations. Aeromexico and Viva Aerobus, as well as the Mexican transportation ministry, did not respond immediately to comments. Aeromexico flights between Mexico City Juarez, and San Juan, Volaris services between Juarez, and Newark in New Jersey, Viva Aerobus proposed flights between Felipe Angeles, New York City, Chicago, Dallas and Denver, Houston, Los Angeles and Miami, and Aeromexico current service between Felipe Angeles, Houston and McAllen. According to the Department of Transportation, Mexico's continued infraction of international agreements "may affect travel plans of American citizens." Contact your airline for more information on re-accommodation. The Transportation Department last month ordered Delta Air Lines to dissolve a joint venture with Aeromexico that allowed the carriers to coordinate flight schedules, pricing, and capacity between the U.S. and Mexico. This was part of a series of actions taken by the Department in response Mexican aviation. The Department of Transportation announced in August that the joint venture must be terminated because it has "continuing anticompetitive impacts on U.S. - Mexico City markets which provide unfair advantages to Delta and Aeromexico." The department had previously ordered Mexican carriers file their flight schedules. Duffy said that Washington was prepared to enforce agreements made by the international community. This position is echoed in recent actions taken against Mexico for similar reasons. David Shepardson reported from Washington, Kylie Madry from Mexico City and Christopher Cushing edited the story.
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Quiet supersonic X-59 jet soars over California in unofficial first test flight
NASA's X-59 quiet supersonic jet plane flew over the Southern California Desert on Tuesday, the first flight of a new experimental aircraft that is designed to break through the sound barrier while minimizing noise. The sleek aircraft measuring less than 100 feet (30 meters), from nose to tail took off an hour after sunrise at Plant 42, a Lockheed Martin Skunk Works facility located in Palmdale. Palmdale is about 60 miles (100 kilometers) north of Los Angeles. After a steep ascent over fields of sod just east the runway, it was observed that the plane banked to the north, on a trajectory towards Edwards Air Force Base about 12 miles away, which is where the landing was expected. A NASA chase plane was accompanying it. As expected, the single-engine X-59 flew at subsonic speed during its first test flight. About 200 aerospace workers, their families and friends gathered along the highway to watch the takeoff. Candis Roussel from Lockheed Martin, in a short email, said that "the X-59 successfully finished its first flight today" and hailed this as a "significant milestone for aviation." She added that the company will provide more details later. The X-59 is a unique experimental aircraft that can reach a cruising velocity of 925 mph (1 490 kph), also known as Mach 1.4. This speed is achieved at an altitude 55,000 feet (16 764 meters), which makes it twice as high, and 60% faster, than most airliners. The shape of the plane is specifically designed to reduce the sonic boom that normally occurs when an aircraft breaks through the sound barrier. Instead, the plane produces a muffled'sonic thump' no louder than the slamming of a car door. The development of low-decibel technology for supersonic flight could improve the commercial aviation service in populated areas, particularly. Concorde supersonic aircraft started transatlantic scheduled flights in 1976 with British Airways and Air France. The plane was retired from service in 2003 because of high operating costs, limited seats and low passenger numbers after a fatal accident in July 2000 and September 11th attacks in 2001. NASA's press materials published online last month stated that the X-59 would make its first flight as a "lower-altitude, low-speed loop of about 240 mph to check the system integration. This will kick off a phase focused on flight testing aimed at verifying the aircraft’s airworthiness, safety, and reliability." During future test flights, the X-59 is expected to travel faster and higher, ultimately exceeding the sound speed - 761 mph (1.225 kph), at sea level. California Manufacturers & Technology Association announced the X-59 was 2025's coolest thing made in California in their annual statewide contest earlier this month. Reporting by David Swanson, Palmdale, California. Writing and additional reporting done by Steve Gorman, Los Angeles. Editing by Howard Goller.
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Polish retailer Zabka beats the market's expectations for its third-quarter profits
Zabka, a Polish convenience store chain, reported on Tuesday better-than expected third-quarter earnings. This was due to an expanded store network and increased sales. Why it's important Zabka, one of Poland's largest convenience store chains, has a market cap of approximately 21,75 billion zlotys (5.98 billion dollars). The retailer has recently increased its forecast of new store openings by 200 stores to 1,300 in 2025. This is an increase from its previous target. It cited better access to prime retailing locations than anticipated and steady consumer demand. CONTEXT Zabka’s growth strategy relies on a franchise-based model, which allows for rapid expansion. In the first nine-month period of 2025, the company opened 1127 new stores. Zabka has also expanded beyond its domestic market by introducing its "Froo' brand in Romania. The company was listed on the Warsaw Stock Exchange for the first time in October 2024, and then joined the Polish blue chip index WIG20. By the Numbers The company's adjusted third quarter earnings before interest tax, depreciation, and amortization (EBITDA), of 1.28 billion Zlotys ($351.99 millions), exceeded a polled estimate of 1,25 billion Zlotys. Zabka’s net profit grew 45.2% in the third quarter to 463 millions zlotys, while revenue increased 13.1% in the same time period to 7.44 billion. $1 = 3.6365 Zlotys (reporting and editing by Milla Nissi-Prussak, Matt Scuffham and Marta Maciag)
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Temasek-backed group to buy China's ANE at $1.84b valuation
ANE (Cayman), a Chinese-based transport and delivery services company, said Tuesday that a consortium including its largest shareholder Centurium Capital and Temasek, had offered to buy it out. The deal valued the group at HK$14.33bn ($1.84bn). Shareholders can choose between a cash payment of HK$12.18 for each ANE share, an alternative share, or a mix of both. The cash consideration represents a premium to the last closing price of the company on October 24, which was 29.6%. Centurium Capital owns around 24.32% ANE shares. Temasek, True Light and other investors do not hold any ANE shares. ANE had earlier this month Receive a 10% discount A conditional offer from the consortium, but the indicative price of the offer was not disclosed. ANE shares were halted on Monday, and the company announced that it had filed a request with the stock exchange for the resume of trading on 30 October. ANE is one of China's biggest less-than truckload logistics networks. It serves e-commerce clients and industrial customers. The company will be listed in Hong Kong by 2021 and operates thousands of line haul trucks and trailers throughout China.
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Senators urge Trump reconsider dropping Biden's airline compensation plan
A group of Democratic Senators has urged the Trump Administration to reconsider its decision to scrap a plan from the previous administration that would have required airlines to compensate passengers in cash when carriers cause flight disruptions. In December, under the then-President Joe Biden's administration, the U.S. Department of Transportation sought public comments in a regulatory process about whether airlines should have to pay up $775 per passenger to compensate for delays they cause. USDOT announced in December that it would be dropping the compensation plan and considering revoking Biden regulations that required airlines and ticket agents disclose service fees along with airfares. The letter was signed by Maria Cantwell (D-WA), Ed Markey (D-OR), Ron Wyden (D-OR), Kirsten Gillibrand (D) and Jack Reed. Sean Duffy's spokesperson did not comment immediately on Tuesday, but stated that some rules adopted or proposed under Biden had "gone beyond what Congress required by statute" and we plan to revisit these extra-statutory requirements. A spokesperson for Transportation Secretary Sean Duffy did not immediately comment on Tuesday, but said that previously some rules proposed or adopted under Biden "went beyond what Congress has required by statute and we intend to reconsider those extra-statutory requirements." Airlines have pushed for the Trump administration to do more and praised their decision to cancel the Biden Plan. USDOT has also taken steps to reverse Biden’s airline consumer initiatives. In May, Justice Department dropped the lawsuit filed by Biden's administration against Southwest Airlines in its final days. The suit accused Southwest Airlines of operating flights that were chronically delayed.
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Minister: Canada will work with G7 partners in order to secure vital mineral supply agreements
In an interview with The Toronto Star on Tuesday, Tim Hodgson, Minister of Natural Resources for Canada, said that the country will be focusing on securing critical minerals supplies when it hosts Group of Seven partners at a meeting of Energy and Environment ministers this week in Toronto. Except for Japan, all G7 countries are heavily or solely reliant upon China to supply a wide range of materials, from rare earth magnets and battery metals. Hodgson stated, "This week we will see many examples where we move beyond talking to firm commitments (to fund various types of tools to secure critical minerals)." The G7 will meet from October 30 through October 31. In Chicago, G7 officials discussed the price floor supported by government subsidies that the U.S. introduced recently to encourage domestic mineral production. Canada also aims to secure offtake agreements or financing deals, where a buyer agrees that they will purchase the output of a producer in the future at a fixed price. Hodgson stated that "you will see on the Friday a number concrete announcements showing how a multilateral approach works to secure supply chains and energy sources." He stated that Canada wanted to be the leader in securing supply chain for all its key allies to reduce dependence on China. Canada is a producer of several important metals, including nickel, cobalt and copper. Hodgson stated that some of the announcements to be made this week at the G7 will concern stockpiling critical minerals, and investing in new mining and production operations. Donald Trump, the U.S. president, called off this week trade talks between Canada and the U.S. that were centered around U.S. steel, aluminum and automobile tariffs. Hodgson stated that Canada and the U.S. were also in talks about the revival of Keystone XL as part of a future deal. However, he said it was not clear when both countries will reengage on this issue. He said, "We are ready to speak when the Americans are." Reporting by Divyarajagopal. Caroline Stauffer, Mark Potter and Caroline Stauffer edited the story.
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Tusk: Poland could open new border crossings to Belarus next month
Donald Tusk, the Prime Minister of Poland, said that Poland would be prepared to reopen another two border crossings in Belarus by November. Poland closed its border to Belarus on September 12, due to military exercises conducted by Russia in Belarus, and the entry of 21 Russian drones into its airspace during the night of 9-10 September. On September 23, the Polish government announced that it would reopen a number of rail crossings as well as one road crossing. Tusk announced at a Bialystok business event that "we will be ready to open two border crossings this year in November" in Bobrowniki, and Kuznica. Let's say we open the two crossings for a test in November after I have settled this issue with Lithuanians. I will not hesitate to close the border again if it is necessary. Lithuania, a neighboring country, closed Vilnius Airport on four occasions last week as a result of balloons entering its airspace. It also temporarily closed its Belarus border crossings. Alexander Lukashenko, the Belarusian president, said that the Lithuanian border closure was a "crazy swindle" on Tuesday. He also accused the West that it was fighting a hybrid conflict against Belarus and Russia which was ushering in an era of barbed wire division. (Reporting and writing by Alan Charlish, Pawel Florkiewicz and Timothy Heritage. Editing by Timothy Heritage.)
United States judge to hear objections to Boeing plea handle deadly crashes
A federal judge is set to hold a hearing on Friday to consider objections from loved ones of individuals eliminated in two Boeing 737 MAX crashes to the U.S. planemaker's contract to plead guilty to conspiring to defraud regulators. U.S. District Judge Reed O'Connor in Fort Worth, Texas, is slated to hear arguments from Boeing and federal district attorneys arguing he needs to accept the plea deal, and legal representatives for the relatives urging him to decline it. The judge may choose on Friday whether to accept the plea offer or rule on it later.
The judge has actually fielded hundreds of pages of legal briefs from the celebrations over the previous several weeks. The households of the 346 people who died in the airplane crashes, which occurred in 2018 and 2019, compete the plea contract is a sweetheart offer that doesn't go far enough in holding Boeing or its executives accountable for the deaths of their liked ones.
Boeing and the U.S. Department of Justice declined to remark. The Justice Department has actually defended the agreement, explaining it in a court filing as fair and simply, in addition to a. strong resolution of this matter that serves the public. interest.. District attorneys got to the plea contract after a comprehensive. investigation and a series of conferences with the families, they. said. Yet in the end, the district attorneys stated in an August court. filing, DOJ officials have actually not discovered the one thing that. underlies the families' most enthusiastic objections to the. proposed resolution: proof that might prove beyond a. reasonable doubt that Boeing's fraud caused the deaths of their. enjoyed ones.. Boeing exceptionally is sorry for the mishaps and the unspeakable. losses the households suffered, the company stated in its own. August court filing. Boeing is prepared to plead guilty and. therefore accept supreme duty for the crime of. conspiring to defraud regulators, the company said. The. planemaker has substantially reinforced, and increased. financial investment in, its safety and compliance practices, Boeing said.
Boeing in July settled the contract with prosecutors. needing the planemaker to plead guilty to scams in connection. with the two deadly plane crashes. The planemaker consented to pay up to a $487.2 million fine and. invest at least $455 million on enhancing safety and compliance. practices over three years of court-supervised probation as part. of the plea offer. The agreement enables the judge to cut the fine. in half by crediting Boeing for money it previously paid in the. case. Justice Department authorities pressed Boeing to take the plea offer. after finding the business had violated the terms of a 2021. arrangement that had shielded it from prosecution over the. crashes, which efficiently resumed the case. That finding followed a different January in-flight blowout that. exposed ongoing security and quality concerns at Boeing. A panel. blew off a new Boeing 737 MAX 9 jet during a Jan. 5 Alaska. Airlines flight, just 2 days before the 2021 agreement. protecting Boeing from prosecution over the previous deadly. crashes ended.
In the criminal case over the fatal crashes, prosecutors. compete they have extracted an arrangement from Boeing to plead. guilty to the most severe charge they could prove, in addition to. payment of the maximum lawfully enabled penalty.
The 2 crashes at the center of the criminal case against. Boeing occurred in Indonesia and Ethiopia over a five-month. period.
A guilty plea, needs to the judge accept it, would brand. Boeing a convicted felon for conspiring to defraud the U.S. Federal Air Travel Administration (FAA) about problematic software application. impacting the flight-control systems in the planes.
On top of the plea offer's monetary ramifications, the. agreement also imposes a monitor to investigate Boeing's safety and. compliance efforts and permits the judge at sentencing to require. the business to pay extra payment to families whose. relatives died in the crashes.
Polish nationwide airline company LOT likewise opposes the plea offer and. has actually argued it ought to have the very same rights as the crash victims'. households.
Victims' loved ones desire Boeing and its executives charged. with crimes holding them responsible for the deaths of their. loved ones and any proof of misdeed provided in a public. trial. They have actually likewise argued Boeing needs to have to pay up to. $ 24.78 billion in connection with the crashes.
Judge O'Connor, considered among the most conservative. judges in the country, has previously revealed strong sympathy. for the families of the 737 MAX crash victims and called the. Boeing case the deadliest business crime in U.S. history..
(source: Reuters)