Latest News
-
Airlines are under pressure due to the threat of missiles and closures of airspace.
Executives say that the proliferation of conflict zones is a growing burden for airline operations and profits. They are dealing with drones and missiles, as well as airspace closures and location spoofing. The airlines are incurring costs and losing share of the market due to expensive reroutings and cancelled flights, which often happen at short notice. Aviation, which is proud of its safety record, invests more in data planning and security. Guy Murray, the head of aviation security for TUI Airline, said that flight planning is difficult in such an environment. Airlines have fewer options for routes due to the increasing number of airspace closures in Russia, Ukraine, the Middle East, India, Pakistan, and parts of Africa. Mark Zee is the founder of OPSGROUP. This membership-based organization shares flight risk data. Since October 2023, the Israeli-Palestinian Conflict in the Middle East has led to the commercial aviation being forced to share the skies with drones and missiles that were launched on short notice. Some of these weapons were reported to have been close enough for pilots and passengers to see. Drone activity has forced Russian airports to close for short periods of time, including Moscow. GPS jamming and spoofing are also a growing problem around the world. Last month, when hostilities erupted between India and Pakistan, both neighbours blocked the other's aircraft in their respective airspace. Nick Careen said that the airspace is being used for retaliation, but this is not what it should be. Nick Careen was speaking to reporters on Tuesday at IATA's annual conference in New Delhi. Isidre Poqueras is the chief operating officer of IndiGo in India. She said that recent divertions were undermining efforts to reduce emission and increase airline efficiency. WORST CASE SCENARIO A plane being accidentally or deliberately hit by weapons is the worst case scenario for civil aviation, putting finances aside. Azerbaijan Airlines Flight 38 crashed in Kazakhstan on December 12, killing 38 people. According to Azerbaijani sources and the president of Azerbaijan, the plane was shot down accidentally by Russian air defences. Five people were killed when a cargo aircraft was shot down by Sudanese gunmen in October. According to Osprey Flight Solutions, aviation risk consultants, six commercial aircraft have been shot at, and three others have come close, since 2001. Willie Walsh, IATA director general, said that governments need to share more information to ensure civil aviation security as conflict zones continue to proliferate. Commercial aviation safety statistics show that accidents have steadily declined over the last two decades. However, these statistics do not include security incidents like being struck by weapons. IATA stated in February that aviation safety was a major concern due to accidents and incidents involving conflict zones. This required urgent global coordination. Tough Choices As a result, each airline has a different policy on where it will fly. This is based on the information shared between states and carriers, government advisors and a patchwork system of government notifications. Since the start of the war in Ukraine, in 2022, the Russian airspace has been closed to Western carriers. This puts them at a disadvantage in comparison to airlines like those from China and India that fly shorter routes in the north that require less fuel and crew. Flightradar24 data show that Singapore Airlines flight SQ326 has taken three different routes to Europe since just over a month, due to a change in risk calculations. In April 2024, Israel and Iran began a series of missile and drone attacks that had previously been avoided. As tensions between India and Pakistan escalated, the flight's route was again changed last month to avoid Pakistani airspace. Flight SQ326 reaches Europe now via the Persian Gulf, Iraq and Afghanistan. Singapore Airlines didn't respond to our request for comment immediately. The safety of pilots and flight attendants is also a concern for them. IATA states that airlines, and not regulators, should determine if it is safe to fly above conflict zones. History shows that commercial pressures may cloud these decisions, said Paul Reuter. He is vice president of European Cockpit Association which represents pilots. IATA Security Head Careen explained that flight crews have the right to refuse to take a trip if they are concerned about airspace. This could be due to weather conditions or conflicts zones. He said that "most airlines, and I'd say the vast majority, don't want crews on aircraft who aren't comfortable flying."
-
Financial Times - Friday, June 4,
These are the most popular stories from the Financial Times. These stories have not been verified and we cannot vouch for the accuracy of these reports. Headlines - KKR feared a political risk in the Thames Water Rescue deal UK Serious Fraud Office investigates company who sold solar farms Thurrock Council British Industry Exempted From Trump's Doubling of Steel Tariffs Rachel Reeves, British Finance Minister, will support the Manchester-Liverpool railway link as part of a boost to transport spending Andrew Bailey, Governor of the Bank of England defends UK rules on ringfencing for lenders View the full article Thames Water has suffered a major blow in its battle to avoid nationalisation. The U.S. private-equity firm KKR withdrew from a multi-billion-pound rescue plan partly because of concerns over political interference. The Serious Fraud Office in Britain (SFO), has announced that it has launched an investigation against Rockfire Investment Finance. This company sold a bond scheme that was linked to solar farms, which led to a council in England being declared bankrupt by 2022. The U.S. President Donald Trump exempted the UK from doubling steel and aluminum tariffs in the United States, while British bosses urged British Prime Minister Keir starmer to act quickly on a deal that would completely eliminate these levies As part of the Whitehall Spending Review next week, UK Chancellor Rachel Reeves approved plans to spend billions of dollars on a new rail line between Manchester and Liverpool as well as other transport schemes. Andrew Bailey, governor of the Bank of England, has defended ringfencing regulations that force UK lenders separate their retail activities from other activities. He said that removing these rules would increase mortgages and other loan costs. (Compiled by Bengaluru Newsroom)
-
Reeves, UK's Reeves, approves $21 billion in transport projects outside London
The British Finance Minister Rachel Reeves announced on Wednesday that she would commit 21.1 billion pounds (15.6 billion pounds) to transport projects outside London. These cities have been plagued by years of unfulfilled promises and underinvestment. Reeves will announce her first investment commitments in a speech to be delivered in Manchester, north-west England. Her June 11 Spending Review sets budgets for all government departments during the remainder of this parliamentary term. The Labour government of Prime Minister Keir starmer, which has suffered heavy losses in local elections, is being pressed to demonstrate that it is improving public services and infrastructure. Organisations like the OECD have identified outdated and insufficient transport links as a major factor. Reeves stated in an excerpt of her speech, provided by the Finance Ministry. She said that the growth of too few regions and large gaps in between them was the result of this type thinking. The former Conservative government led by Rishi Sunak, who cancelled a part of a north-south high-speed rail line in order to reallocate cash to local projects, had earmarked the majority of the 15,6 billion pounds. London has yet to give the green light for many cities. The budget announcement made on Wednesday represents an agreement to fund transportation projects between 2027/28 - 2031/32. These include investments in metro systems in the West Midlands and Greater Manchester as well as the North East, South Yorkshire and the North East. West Yorkshire – a city region with a population of 2.3 millions – will also have its first mass transit system. Jonny Haseldine is the head of the British Chambers of Commerce's business environment department. Since 1998, Britain has conducted periodic reviews of government spending, but this one is the first to cover several years since 2015. The only other review in 2021, which focused on the COVID epidemic, covered a single year. The Institute for Fiscal Studies, a non-partisan organization, said that this review of spending could be "one the most important domestic policy events" for Labour.
-
Virgin Australia is seeking to raise $442.8 Million in IPO term sheet.
Virgin Australia, owned by Bain Capital According to a termsheet seen on Wednesday, is hoping to raise A$685 (442,78) million in an initial public offer. Virgin has set its offer price at A$2.90 a share. The offer size is 30% of Virgin's issued capital. Bain Capital didn't immediately respond to our request for a comment. The term sheet stated that the airline, Australia's 2nd largest after Qantas, would sell 236.2 millions shares to value the company A$2.32 Billion on a fully diluted base. Virgin's enterprise value will be A$3.6 billion after subtracting its A$1.31billion net debt. According to the terms sheet, Bain's stake will drop from 70% to 39.4% after the IPO. Qatar Airways will keep a 23% share.
-
CANADA-CRUDE-Discount on Western Canada Select heavy crude widens; wildfires reduce Canadian output
The discount between the benchmark North American West Texas Intermediate (WTI) futures and Western Canada Select (WCS), widened Tuesday, but was still in historically tight territory due to wildfires that continue to disrupt Canadian oil output. WCS for Hardisty, Alberta delivery in July settled at $9 per barrel below the U.S. benchmark WTI according to brokerage CalRock. It had settled at $8.80 per barrel under the U.S. standard on Monday. Calculations show that wildfires in Canada's oil producing province of Alberta reduced Canada's daily crude output by about 7%. Although no significant infrastructure was damaged, companies shut down production of 344,000 barrels a day and evacuated some workers as a precaution. * The fires occur at a moment when Canadian heavy crude is already trading at an historically low discount, in part because of the Trans Mountain Pipeline expansion that was opened one year ago. This increased the country's capacity to export oil. Canadian crude also benefits from U.S. Sanctions on Venezuela and other nations, which boosts demand for heavy crude producers who are not sanctioned. * Oil prices rose about 2% globally on Tuesday, reaching a two-week peak as geopolitical tensions persist between Russia and Ukraine, and the U.S.
-
ONEOK purchases remaining Delaware Basin Joint Venture stake for $940 Million
U.S. Pipeline Operator ONEOK announced on Tuesday that it has purchased the remaining stake in Delaware Basin Joint Venture from NGP XI Midstream Holdings for $940 million in cash and stock. By acquiring the remaining interest of 49.9%, ONEOK gained the sole ownership of this basin. It operates natural gas gathering, processing, and storage facilities in West Texas, and New Mexico’s Delaware Basin. The total processing capacity is over 700 million cubic feet a day. In the last two years, the operator of the pipeline has diversified its portfolio through acquisitions. These include a Gulf Coast NGL system from Easton Energy, and the purchase of Medallion Midstream, and EnLink Midstream. These moves are part a larger effort to increase its presence in Permian basin amid the growing consolidation of the U.S. Energy sector. The deal is worth $530 million cash and $410 millions in ONEOK common shares, according to the company. ONEOK has a pipeline network of 60,000 miles that transports crude oil, refined products and natural gas liquids. (Reporting and editing by Mohammed Safi Shamsi in Bengaluru. Katha Kalia is based in Bengaluru.
-
US Airlines seeks 2-year delay in secondary cockpit barrier rule
The Federal Aviation Administration said that major U.S. carriers want to delay for two years, by August of this year, the requirement to install a secondary barrier in the cockpit to prevent intrusions. Airlines for America, a trade group that represents American Airlines, United Airlines and Delta Air Lines as well as other major carriers, argued in a petition to the FAA that it should delay the finalization of the 2023 requirement because the FAA has yet to approve a secondary cockpit barricade and there are no approved manuals, training programs or procedures. The FAA announced that it would be accepting public comments on the airline's request until June 23. The FAA adopted security standards for the flight deck after the September 11 hijackings of four U.S. planes. These standards are designed to prevent forcible entry and unauthorized access. In the petition, the airlines said that they expected the FAA would certify the barriers by June or July. The FAA declined to comment immediately. This rule requires aircraft manufactures to install a physical second barrier on all planes that are used for commercial passenger services in the United States. In 2023, the FAA stated that the additional barrier would protect the flight deck from intrusions when the flightdeck door is opened. Air Line Pilots Association president Jason Ambrosi criticised the industry's request. He said: "We urge FAA to reject the latest stalling tactics and implement the secondary barrier requirement, as Congress mandated, without delay." Boeing, Airbus and Airlines for America argued for three years, but unions in 2023 wanted the rule to take effect immediately after publication. According to a federal law passed in 2018, the FAA had to adopt rules by 2019. However, it has stated that it must follow certain procedural rules to be able to impose new rules. The FAA does not require retrofitting of existing aircraft. The FAA set up rules in 2007 to address the security of the flight deck when the cockpit doors were opened. These included requiring that the door must be locked while the aircraft is in operation unless it was necessary to unlock it for authorized personnel. (Reporting and editing by Leslie Adler, Marguerita Choy and David Shepardson)
-
Bayer executive: Airlines need to sign long-term agreements on greener fuels in order to increase volumes.
MONTREAL (Rtrs), June 3, 2008 - If airlines want to increase global volumes of lower-emission fuel needed for industry climate goals, they need to sign long-term agreements that will allow them to purchase larger quantities of sustainable aviation. The International Air Transport Association's airline members are committed to the goal of zero net emissions by 2050, despite warnings from experts that they will have difficulty meeting such sustainability goals because of low production of SAF - which is more costly than conventional jet fuel. IATA, who concluded a summit in India Tuesday, expects sustainable aviation fuel production to double by 2025, reaching 2 million tons, or 0.7% of airline fuel consumption. In Montreal, Matthias Berninger said that while airlines have asked for more action from energy companies and partners to increase SAF volume, there should be more long-term purchasing of the fuel. This is similar to certain commitments made in the renewable energy industry. Bayer's Monsanto division sells seeds and insecticides to farmers that grow crops used as biomass feedstocks for biofuels. Berninger said that if airlines commit to buying a certain quantity over a period of time we can guarantee farmers will grow the crop and processors will process the crop. Berninger spoke on the sidelines the International Civil Aviation Organization’s aviation climate week. "And whether or not this supply meets the demand (market) depends on the long-term buying contracts of the airline sector sending a very clearly defined demand signal similar to what we currently have in the renewables space." SAF is made from plants, waste, cooking oil, and other products. (Allison Lampert, Montreal; Editing and proofreading by David Gregorio).
Lufthansa gets EU nod for $350 mln stake in Italy's ITA
Lufthansa won EU antitrust approval to purchase 41% of ITA Airways for 325 million euros ($ 350 million) on Wednesday after delivering paths and slots, with the news boosting rival IAG's shares and wish for its takeover of Air Europa.
The deal will enhance Lufthansa's existence in the lucrative southern European market and is one of 3 prominent sector transactions in Europe, highlighting efforts by its airline companies to increase scale to offset increasing operating expense.
Lufthansa CEO Carsten Spohr informed a press conference in Rome that ITA's Fiumicino airport hub gave the group better access to Africa and Latin America which it had much space for development.
Shares in Lufthansa were up 3.27% at 1339 GMT after the statement, with IAG shares up by 4.6% on anticipation that the approval made its takeover of Air Europa more likely to be okayed.
IAG said it was grateful that the Commission recognised the benefits of airline combination.
Regulative scrutiny remains high, however the deal has likely increased self-confidence that airline company M&A can acquire approval, topic to treatments worked out with competitors authorities, stated Ruairi Cullinane, an expert at RBC.
ITA also uses crucial long-haul paths to Lufthansa, which has an option to take full ownership if the Italian airline company's. financial efficiency enhances.
Lufthansa and ITA accepted deliver Italian short-haul paths. to one or two competitors, the European Commission said, verifying a. report. The German airline company has stated it is in talks with. Easyjet and Spanish low-cost provider Volotea.
The combined group will also carry out interlining. arrangements or slot swaps for long-haul routes to increase. frequencies and enhance connections for one-stop flights.
Interlining deals allow private airlines to manage. travelers travelling on schedules needing numerous flights. on multiple carriers.
Lufthansa and ITA will likewise move some of the state-owned. airline's slots for short-haul paths at Milan's Linate airport. to rivals, allowing them to establish a sustainable base.
A Lufthansa representative said the airlines would distribute. 204 slots each week at Linate Airport in Milan in the summer, and. 192 in the winter. That suggests that under the new offer, ITA and. Lufthansa will have less slots than before.
It would also provide better connections for its rivals. at key hubs in North America, specifically Washington, San Francisco. and Toronto, the spokesperson stated.
The bundle of remedies proposed by Lufthansa and the MEF. ( Italy's ministry of economy) on this cross-border offer completely. addresses our competition concerns by guaranteeing that a sufficient. level of competitive pressure stays on all appropriate routes,. EU antitrust chief Margrethe Vestager said in a statement.
NEXT STEPS
It was not an easy negotiation, with Italy's Economy. Minister Giancarlo Giorgetti saying in Rome that he argued with. Spohr over details till the last minute. ITA would no longer. need state aid as part of the deal, he added.
This is the very best option right now for ITA and for Italy, a. privatisation that goes through Lufthansa which has a multi-hub. technique and wishes to focus on Fiumicino ... this is likewise excellent. for the Italian taxpayer, said Andrea Giuricin, a transportation. analyst at TRA consulting.
The offer can only close as soon as competitors, authorized by the EU. antitrust guard dog, begin running the paths. EU regulators. had been annoyed with its previous accepted offers during. which competitors declined to use up paths and slots since they. said they might not take on Lufthansa.
Lufthansa has actually faced increasing labour costs tied to strikes. previously this year, triggering it to release a profit caution.
Analysts state it will not be simple to restore ITA, whose. predecessor Alitalia faced decades of monetary struggles and. bailouts, and Lufthansa will likely require to make a significant. investment.
Regulators in Europe likewise fret the region's three largest. airline groups - IAG, Air France KLM and. Lufthansa - are ending up being too dominant, potentially hurting. consumer choice and making flying less affordable.
The Commission is taking a look at British Airways-owner IAG's bid. to purchase Air Europa and is likewise set to examine Air France-KLM's. offer to take a 19.9% stake in Scandinavia's SAS.
(source: Reuters)