Latest News
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India fines IndiGo $2.45Million for December cancellations
IndiGo was fined a record amount of?222 millions Indian rupees (2.45 million dollars) by India's aviation regulator on Saturday for "poor roster planning" that resulted in mass cancellations of flights in December. The regulator issued warnings for senior staff, including Chief Operating Officer Isidre?Porqueras, and Jason Herter, Senior Vice?President of Operations Control Centre, with instructions to IndiGo to relieve Herter?of "current operational responsibilities". According to a government source, the fine was the highest ever. IndiGo has been ordered to provide a $5.51m bank guarantee in favor of the Directorate General of Civil Aviation. This is "to ensure compliance with the directives, and long-term correction of the system," according to the regulator. IndiGo stated in a press release that the board and management are "committed to taking full cognisance and will take appropriate measures, 'in a thoughtful manner and on time. India's biggest airline, Air India, canceled 4,500 flights in the first weeks of December. This left tens of thousand of passengers stranded across the country. It also caused chaos at airports. Reporting by Abhijith Gaapavaram and Rajveer Pardesi, Editing by Toby Chopra & Barbara Lewis
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Indonesia searches for missing surveillance aircraft with 11 onboard
Officials?said that Indonesian rescuers searched on Saturday for a missing ATR 42500 fisheries monitoring aircraft with 11 people aboard. Andi Sultan, a local rescue official, said that the Indonesia Air Transport plane had lost contact with air traffic control at around 1:30 pm (0530 GMT), in the Maros area of South Sulawesi Province. Sultan stated that the aircraft was heading towards Makassar (the capital of South Sulawesi) after leaving?Yogyakarta Province before contact was lost. He added that there were eight crew members and three passengers aboard. Sultan stated that around 400 personnel including military and law enforcement units were deployed to search for the aircraft and its passengers, but the effort was hampered by bad weather. Sultan declined to make any comments on the 'possible cause' of -the incident. We suspect that the plane crashed near the summit of Mount Bulusaraung. He said that our personnel had been deployed there. Pung Nugroho Sasono, a ministry official who works for the Indonesian Ministry of Marine Affairs and Fisheries (MoMAF), told the state news agency Antara that this plane was chartered. The three passengers, according to Marine Affairs and Fisheries minister Sakti Wahyu Trnggono, were staff of the ministry conducting air surveillance for?fisheries. The ATR 42 500 is a regional turboprop capable of carrying 42 to 50 passengers. Flightradar24 has unconfirmed data that an aircraft matching this description flew eastward at 11,000 feet over the Java Sea before rapidly losing altitude and dropping tracking systems. ATR, a Franco-Italian aircraft manufacturer in France, said that it was notified of an accident occurring in Indonesia. Its specialists are assisting the local authorities with their investigations. Reporting by Ananda Teresia from Jakarta, Tim Hepher from Paris and Rajveer S. Pardesi from Bengaluru. Toby Chopra, Mark Potter and Toby Chopra edited the story.
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US rail regulator finds merger application between Union Pacific and Norfolk Southern incomplete
The U.S. Surface Transportation Board sent Union Pacific's $85 billion merger proposal with Norfolk Southern back to be revised on Friday, saying that it was missing required information. This is part of an ongoing review by the U.S. The STB rejected the application in December, citing a lack of projections on market share and competition impacts. The board denied the application without prejudice and allowed the railroads to re-file once they addressed the deficiencies. Donald Trump publicly supported the merger proposal. The administration tends to 'approve large transactions or impose remedy rather than blocking them outright. A merger of this magnitude was considered unthinkable during the Biden administration's broader crackdown against consolidation. This is the first major proposed?merger of railroads to be reviewed using the more stringent framework that was put in place over?two decades ago. The stricter framework?requires applicants?to prove their transaction will enhance competition, not just preserve it?while delivering demonstrable benefits to the public?interest? The board stated that the railroads had projected growth in traffic and divertions from the proposed coast to coast railroad, but only provided data for 2023, not the projections required showing how the combined carrier’s?share could evolve several years after the merger. The decision follows a filing in January by Canadian National. It argued that there were critical 'competitive disclosures' missing from the application, including a methodology to identify routes where two rails feed into one another and complete lists of 'potentially affected shippers'. Union Pacific and Norfolk Southern submitted their nearly 7,000-page application to the Federal Communications Commission on December 19. They claimed that this combination would increase?service reliability?, divert truck freight onto rails, maintain shipper options, and provide broad public benefits, while protecting union jobs. The STB stated that the ruling it issued should not be interpreted as a guideline for how it would ultimately determine whether a revised application was admissible.
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PJM announces plan to combat AI-driven surge in power demand
Grid operator PJM Interconnection unveiled a plan on Friday to manage'surging power 'demand from data centres that are required for Big Tech’s artificial intelligence expansion. This comes after the White House urged immediate action to avoid potential blackouts. PJM Interconnection announced that it plans to require large power users?to either bring their own generation or?enter a connect-and-manage framework subject to an early curtailment. The White House had earlier in the day urged the largest U.S. power grid to conduct an emergency auction to prevent rolling blackouts, as the energy demand for data centers is growing faster than the nation can build new generation facilities. PJM controls a large part of the 'power flow' in 13 states, mainly in the Mid-Atlantic region, including the 'largest concentration in data centers, in Virginia. Other?states are also becoming hubs for server storage. PJM’s board stated that its plan 'would focus on bringing a new?power generator online quickly, and would be coupled to options for new load customers whose energy demand can be curtailed if necessary. Reporting by Laila Mukherjee and Anushree Mokherjee from New York; Editing by Leroy Leo, Lisa Shumaker
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White House wants to auction off the largest US electric grid in an emergency
The White House urged on Friday the largest 'U.S. The electric grid should conduct an auction for emergency power to prevent rolling blackouts, as the energy demand from?data centres? is growing faster than new generation plants can be built. The Trump Administration initiative calls for PJM Interconnection, a company that serves 67,000,000 customers across 13 states, including Washington, D.C., and conducts an emergency auction to address escalating prices of electricity and increasing reliability risks in the mid-Atlantic area of the United States. PJM announced its own plan on Friday, urging big data centers that they bring in their own generation to avoid having their power supply curtailed at peak demand times. Grid operator PJM also called for a faster interconnection track to be created for state-sponsored projects. At a White House meeting, U.S. Secretary of Energy Chris Wright, and Secretary of Interior Doug Burgum, joined by several state governors, discussed initiatives to accelerate the construction of new?power generators worth more than $15 billion on PJM. PJM has been criticized as being too slow in building a cushion to prevent rotating blackouts when demand increases. The rapid expansion of data centres to power artificial intelligence and other things has stretched PJM's resources, as well as those of other regional U.S. electrical grids. Donald Trump wants to fight consumer price inflation, which could undermine Republican support ahead of the November midterm elections. The White House wants to cap the amount that existing power plants are allowed to charge on the PJM market. The recent PJM auction for the capacity market set new records for power generators, with prices more than 800% above those of last year. This increased electricity prices in homes and businesses. Data centers would be required to pay for new power generation, whether or not they use it. This agreement would require them to do this regardless of whether the data center shows up. BYOG is the concept, which stands for "bring you own generation." PJM said it was reviewing the principles laid out by the White House, and the governors. A PJM spokesperson confirmed that PJM had not been invited to the event. PJM forecasts that grid peak usage during the summer will increase by?about?70 gigawatts up to 220 gigawatts in the next 15years. PJM's record summer peak was 165 Gigawatts. PJM claims that it has?processed more than 170 gigawatts in new generation requests since 2023. Nearly 60 gigawatts have been completed by PJM and either signed generation interconnection agreements or have been offered. RISE IN POWER BILLS HAS?LED TO BACKLASH The rising cost of electricity in PJM region has led to a political backlash and threats from some governors that they will abandon the regional grid. Nine state governors sent an open letter last summer to the PJM Board of Managers criticizing the grid operators for not doing enough 'to address the escalating energy affordability crisis. Pennsylvania Governor Josh Shapiro told the White House on Friday that PJM had been "too damn slow" to allow new generation onto their grid, at a time when energy demand was increasing. Burgum said PJM was lucky to have avoided widespread blackouts so far. Reporting by Jarrett Renshaw, Tim McLaughlin and Timothy Gardner from Philadelphia; editing by Liz Hampton and Matthew Lewis
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Florida road added to Trump's list
The U.S. president Donald Trump renamed a road near his private club in Palm Beach in Florida. This is the latest addition to the 'growing list' of programs, initiatives, and buildings that bear?his? name since he took office in January. The state legislature approved a new honorific name for a part of Southern Boulevard. This road connects Palm Beach International Airport with Mar-a-Lago - Trump's residence and private club. The president's motorcade frequently uses this road to travel between the airport, and Trump's property. Trump described himself as "tremendously honoured" by the recognition. He said: "I will remember this amazing gesture forever." County commissioners have told local media that the name change will not affect official addresses, emergency response system, or government maps. Since re-entering office a year ago, his name has appeared on high-profile Washington structures, a new proposed class of Navy warships and a website for prescription drugs run by the government. Washington is home to many monuments and buildings named after presidents. These honors are often national tributes and authorized by Congress. Trump received the Nobel Peace Prize Medal from Venezuelan opposition leader Maria Corina Machado at a White House Meeting on Thursday. The White House said that Trump intends to keep his medal. However, the Norwegian Nobel Committee stated that the prize could not be transferred, shared or revoked. Some historians see it as an?overficial attempt of the president to cement a legacy that could prove short-lived. Several performers have withdrawn in protest over the renaming Washington's premier performing arts venue to the Donald J. Trump Memorial Center for the Performing Arts and John F. Kennedy Memorial Center for the Performing Arts.
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FAA warns airlines flying to Central and South America about possible military actions
The U.S. Federal Aviation Administration issued a series warnings on Friday to airlines to be cautious when flying over Central America and parts of South America. It cited the risk of possible military activities and GPS interferance. The FAA has issued Notices to Airmen for Mexico, Central America, Ecuador, Colombia, and certain portions of the eastern Pacific Ocean. The agency said that the warnings will begin on Friday and last for 60 days. These warnings are coming amid increased tensions in the region between the United States, and other regional leaders, after the Trump administration?mounted a large-scale buildup of military forces in the southern Caribbean and attacked Venezuela, and captured the country's President, Nicolas Maduro, in a military action. Donald Trump raised the 'possibility of other military action? in the region, including against Colombia. Trump warned last week that drug cartels controlled Mexico, and that the U.S. would strike land targets in order to combat them. This was part of a series threats to use military force to fight against cartels. The FAA curbed flight throughout the Caribbean after the attack on Venezuela. This forced major airlines to cancel hundreds of flights. FAA Administrator Bryan Bedford said earlier this week that there was good coordination between the FAA and the U.S. Military before the Venezuela operation. Last month, JetBlue's (JBLU.O), a passenger jet headed for New York, took evasive action to avoid colliding with a U.S. military plane in mid-air. Air Force tanker plane near Venezuela. JetBlue Flight 1112 was departing Curacao and flying approximately 40 miles (64km) off the coast Venezuela when an Airbus plane, (AIR.PA), reported that it had encountered the Air Force jet. The Air Force jet's transponder wasn't activated.
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European regulator warns airlines against flying in Iranian airspace
After simmering tensions arose over the 'deadly crackdown' on Iranian protests, and U.S. threats of 'intervention', the European Union's aviation regulator recommended that airlines in its bloc'stay out' of Iran's 'airspace'. In a bulletin, the European Union Aviation Safety Agency stated that "the presence and potential use of a variety of weapons and air defence systems combined with unpredictable responses from states... creates high risks for civil flights at all levels and altitudes." The protests began in Iran on December 28 due to economic hardships. They grew into large demonstrations demanding the end of the clerical regime, which culminated in violence last week. Crackdown on the crackdown It is a verb that means to have Residents said that the protests have been largely quelled for the time being, while state media reported more arrests, in light of the repeated U.S. threat to intervene should the killings continue. EASA's warning said that due to the ongoing tensions, and the possibility of U.S. military intervention, Iranian air defence forces are on high alert. This has increased the likelihood of misidentification in Iranian airspace. Reopened After a nearly five-hour-long closure due to fears of military action, airlines were forced to cancel or delay flights. According to flight tracking data, European airlines such as Wizz Air and British Airways, Lufthansa, and British Airways, continued to avoid Iran and Iraq despite the re-opening of airspace on Thursday. A surface-to air missile fired by Iran in January 2020 brought down a plane. Ukrainian passenger plane All 176 victims were killed abroad. The Iranian authorities blamed human error for the incident, which occurred amid tensions between Iran's military and that of the United States. Reporting by Gursimran K. Kaur, Editing by Mark Potter & Cynthia Osterman
Germany working to ward off UniCredit's bid for Commerzbank, sources say
Germany is working to annoy a possible takeover of one of its greatest banks by an Italian competitor, a stance that pits Berlin versus Rome and Europe's regulators, a number of people acquainted with federal government and regulators' thinking informed Reuters.
Berlin was surprised by UniCredit's swoop to construct a big stake in state-backed Commerzbank, a. relocation the Italian bank says might lead to a merger.
Officials are now bracing for a potential hostile quote that. might connect Berlin's fortunes to those of Italy, whose debt load. overshadows Germany's.
Integrating the banks poses a possible danger to monetary. stability, they say, as UniCredit owns 10s of billions of euros. of Italian government bonds.
A number of individuals in the German government are now pinning. their hopes on a regulatory evaluation by the country's manager. BaFin, and are lobbying the regulator versus a deal.
One key argument is that Berlin may end up footing the. expense if UniCredit were to be dragged into an Italian debt. crisis.
BaFin, which plays a crucial function in whether UniCredit can. try to acquire control of Commerzbank, has actually begun to analyse. UniCredit's request to permit it to develop its approximately 9.9%. shareholding to practically 30%.
The guard dog will make a proposal to the European Central. Bank, the lenders' regulator, which has the last word, based on. a handful of criteria such as the monetary strength of the. buyer and the reputation of supervisors.
While Rome carefully supports the offer, Berlin hopes its. concerns may prevent or at least delay the approval of. UniCredit's plan by the ECB.
BaFin has a delicate balancing act. While it is duty-bound. to deal with UniCredit's application even-handedly, it needs to likewise. consider the issues of the German federal government, as the. company reports to the finance ministry.
Numerous sources with understanding of the ECB's thinking, stated. there was prevalent difference with Germany's opposition,. although the nation stays prominent and can depend on. effective figures within the organization.
The ECB has said large, European banks can much better support. the economy and take on bigger rivals in the United States.
Even though the 20 countries of the euro zone share a. currency, banking remains primarily national.
For the ECB, its handling of UniCredit's interest in. Commerzbank, balancing the interests of two of the bloc's. biggest countries, will be one of its most significant tests because. ending up being the area's main watchdog a years ago.
BaFin and the European Reserve bank work closely together,. stated a spokesperson for BaFin, including that BaFin had a right to. advise to the ECB whether a deal need to be approved, leaving. the final say with the ECB.
This treatment makes an essential contribution to financial. stability, he stated. BaFin declined to talk about the particular. case.
A spokesperson for the ECB stated it was in consistent. interaction with national authorities on such matters,. describing choices as collective.
The ECB's chief supervisor Claudia Buch stated recently the. organization would do anything to get rid of hurdles to. cross-border bank mergers, after president Christine Lagarde. explained such deals as desirable.
Italy's Treasury, Germany's finance ministry, Commerzbank,. and UniCredit decreased to comment.
Italy's main banking union FABI, warned on Friday that a. successful bid by UniCredit would usher in an age in which. governments would be unable to stop foreign takeovers.
DANGER
BaFin has a seat on the ECB's supervisory board along with. authorities from the 20 other nations that form the banking. union plus a smattering of ECB agents. The ECB has. roughly 90 days to review the case.
At the heart of Germany's issue is UniCredit's 40 billion. euros ($ 44 billion) of Italian government bonds.
This is seen as a possible threat since Italy is greatly. indebted. Commerzbank, which is smaller and financially weaker. than UniCredit, likewise has billions of euros of Italian bonds.
If Italy were to run into problem after a merger, authorities. fear Germany might need to action in.
However some ECB officials see a service. Commerzbank could. became a subsidiary within UniCredit, with clear plans on how to. deal with it individually in a crisis.
In the sovereign debt crisis of the early 2010s, some. European nations had to bail out their banks, which were also. deteriorated by their sovereign, illustrating how intertwined they. were in a crisis that nearly reduced the euro.
Berlin's reaction signals an absence of faith in the European. architecture put in place to prevent a repeat of the 2010-11. debt crisis, as well as a deep-seated scepticism over Italy.
The German government thinks UniCredit's move on. Commerzbank was aggressive and anticipate a hostile bid within. months, 3 sources acquainted with federal government thinking informed. Reuters.
Individuals near the government likewise stated trust between. Berlin and UniCredit CEO Andrea Orcel had almost collapsed.
They indicated Orcel's surprise proceed Commerzbank,. consisting of utilizing derivatives that offer him an option to get more. shares, despite earlier recommending he was acting in line with. Berlin's wishes.
Orcel just recently informed an audience he had actually spoken consistently. with stakeholders in Commerzbank and was eager to resume. dialogue.
2 of the people with knowledge of the federal government's. believing stated Berlin and Commerzbank's working assumption was. that UniCredit could try to buy the bank within months.
(source: Reuters)