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Boeing ordered to pay $28 million more to the family of a 737 MAX crash victims
A federal court jury in Chicago on Wednesday ordered Boeing to pay over $28 million to a family of a United Nations environment worker who died in the crash of a 737 MAX in Ethiopia in 2019. The verdict given to the Garg family is the first of dozens of lawsuits that were filed following the crash in India and the one in Indonesia in 2018 which killed 346 people. According to the attorneys representing the family, a deal was reached between the parties on Wednesday morning. Garg's parents will receive 35.85 million dollars - the total verdict plus 26% in interest - while Boeing will not be appealing. Boeing did not respond immediately to a comment request. In a joint statement, Shanin Specter, Elizabeth Crawford and the family's attorneys said that the verdict "provides accountability to the public for Boeing's wrongdoing." Her lawyers claim that Garg was only 32 years old when Ethiopian Airlines Flight 302 crashed shortly after takeoff from Addis Ababa in Ethiopia to Nairobi in Kenya. The lawsuit alleged that the 737 MAX was defectively engineered and that Boeing did not warn the public and passengers about its dangers. Ethiopian Airlines Flight 610 crashed in the Java Sea, Indonesia, five months after Lion Air Flight 610. Both crashes were caused by an automated flight control system. According to the company, more than 90% civil lawsuits relating to the two accidents have been settled. This includes lawsuits, deferred prosecution agreements and other payments. According to their lawyer, Boeing settled three lawsuits filed by families of victims who also died in the Ethiopian Airlines crash. Terms of the settlements have not been released. Reporting by Diana Novak Jones, Editing by Jamie Freed
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US court temporarily blocks USDOT's order to disband Delta and Aeromexico joint-venture
The U.S. Court of Appeals temporarily stopped an order issued by a government agency to Delta Air Lines, Aeromexico and other companies to dissolve a joint venture before January 1, 2019. The airlines sued the Transportation Department to stop the order to cancel the joint venture, which has been in place for nearly nine years and allows the carriers to coordinate flight schedules, pricing, and capacity between the U.S. USDOT issued the order in September as part of a series of U.S. actions against Mexican aviation, citing concerns about competition. Carriers said that they would be unable to recover substantial costs even if the court upheld this arrangement. The three-judge panel's brief order cited an earlier court decision regarding the standard to temporarily block administrative actions. Delta, Aeromexico, and USDOT declined to comment immediately. The Justice and Transportation Departments referred to the joint venture as "legalized collusion," which controls "almost 60 percent of operations at the 4th largest international gateway into and out of the United States," citing Mexico City flight. Delta, which owns a 20% stake Aeromexico has also argued President Donald Trump’s administration holds the joint venture to a higher standard than other ventures such as United Airlines opens a new tab and ANA. According to the government, problems that could arise from this venture include increased fares on some markets, reduced capacities and difficulties for U.S. airlines due to insufficient competition. Separately, last month the Trump Administration revoked the approval of 13 routes for Mexican carriers to enter the U.S. It also canceled all passenger and cargo flights from Mexico City’s Felipe Angeles International Airport bound for the United States. Transportation Secretary Sean Duffy stated that Mexico "illegally cancelled and frozen U.S. carrier flight for three years, without consequence." Claudia Sheinbaum, the Mexican president, said that she was not in agreement with the U.S.'s decision to revoke the approval of 13 routes. (Reporting and editing by David Shepardson)
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US Senate holds hearing on impact of government shutdown on aviation safety
Next Wednesday, a U.S. Senate Subcommittee is holding a hearing on the impact the shutdown has had on aviation safety. This comes after disruptions to thousands of domestic flights affecting millions of passengers. The committee confirmed a report that the hearing will be held on November 19, and include testimony by Nick Daniels, President of the National Air Traffic Controllers Association, as well as Chris Sununu. Chris Sununu is the chief executive officer of Airlines for America. This trade group represents major airlines. Last week, the Federal Aviation Administration took an unprecedented step by requiring that flights be cut by 4% at 40 of the busiest airports due to safety concerns relating to the increasing absence of air traffic controllers. Flight cuts will increase to 8% Thursday and 10% Friday. Some airlines believe the FAA is going to reduce the planned flight cuts on Thursday by 6%, and then phase out the order once the air traffic staffing increases. The shutdown of the federal government is expected to be over by Wednesday evening. Sununu stated that airlines would like Congress to make sure air traffic controllers get paid in the event of a government shutdown, "to ensure this does not happen again." The head of General Aviation Manufacturers Association will also testify. Since October 1, when the shutdown started, tens thousands of flights have been cancelled or delayed. This has affected more than 5.2 millions passengers. Due to the absence of air traffic controllers, 1.2 millions passengers had their flights delayed or cancelled last weekend. Moran, the chair of the subcommittee for aviation, stated that "the shutdown has had a severe impact on our already fragile industry and it will take some time to recover from its effects." He said it was important to "address the damage done and examine the long-term impacts of the shutdown." Ted Cruz, the chair of the Senate Commerce Committee, said that the FAA and Transportation secretary Sean Duffy ordered the flight cancellations "because the FAA relies upon safety data to keep the system secure was blinking in red." The longest shutdown in U.S. History, 43 days, forced 13,000 air traffic control agents and 50,000 Transportation Security Administration (TSA) agents to work for free. There are about 3,500 fewer air traffic controllers than the FAA's target staffing level. Before the shutdown, many had already been working six-day work weeks and mandatory overtime. Congress also approved $12.5 billion for the rehabilitation of the U.S. Air Traffic Control System which has experienced numerous technical failures. (Reporting and editing by Chris Reese, Jamie Freed, and David Shepardson)
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Novo Nordisk CEO shows new appetite for taking on risk in obesity deals
Mike Doustdar, CEO of Novo Nordisk, was not yet ready to give up on his company's portfolio of obesity drugs. Doustdar, under pressure to deliver results since taking over the Danish drugmaker's leadership in August, had made five offers that were getting more expensive for Metsera. This is according to U.S. Securities filings and Court documents. Three sources familiar with the process said that he chose to go ahead and sign a deal worth $10 billion. This is five times more than what Doustdar’s predecessor was willing to pay back in January. If antitrust regulators had rejected the offer, Novo would have been left without control of Metsera's new obesity drug pipeline. Pfizer was compelled to increase its offer to complete the deal. Kerry Holford, Berenberg analyst, said Novo's attempts to secure the deal were always going to be difficult. NEW TOLERANCE FOR RISK Doustdar was willing to take risks in order to be more competitive than Eli Lilly, according to two sources. This included being more aggressive and faster. Lilly has surpassed Novo in the once dominant position it held on the lucrative U.S. market for weight loss. Investors and analysts have welcomed the new tone. Erik Berg-Johnsen is the portfolio manager of Storebrand Asset Management's Novo shareholders. He said that the company showed "a clear sense" of urgency to improve its fortunes. Henrik Hallengreen Laustsen of Jyske Bank, who rates Novo as "buy", said that Doustdar’s decision to acquire Metsera is an "important sign" that it will not be passive. He said, "They attack the markets rather than have to defend themselves." Some questioned if Doustdar had gone too far. The bidding battle coincided with increased governance concerns and a shake-up of the board of directors that would give unprecedented control to Doustdar's largest shareholder. Evan Seigerman of BMO Capital Markets, who rates Novo as a Hold, said that the company still has many other problems to resolve. You have anticipated pricing headwinds. Lilly is grabbing market share and Novo feels like it has strayed so far from its course that it's difficult to correct. Holford, a Berenberg analyst, said that Novo must look to acquire deals to boost its drug pipeline, given the relative inaction of mergers and acquisitions in recent years, and looming expirations for patents on semaglutide, an active ingredient found in Wegovy, Ozempic, and other drugs. Novo has not responded to our request for comment. Metsera declined comment. NOVO'S CEO WAS CONFIDENT IN FTC'S CERTIFICATION Doustdar has defended Novo’s pipeline of experimental drugs for weight loss, but stated that an aggressive acquisition strategy is critical to keep pace with a market some analysts estimate will reach $150 billion in the early part of next decade. The CEO told industry analysts in a recent call that "no pipeline is wide enough" if you want to treat hundreds of millions. According to securities filings, the final Novo bid structure included higher payments upfront in exchange for 50% of the company, but it delayed the time for gaining control over the business. Doustdar believed the proposed deal could withstand scrutiny by the U.S. Federal Trade Commission. It didn't work out as planned. Metsera announced in a press release on November 7, that it had accepted an offer sweetened by Pfizer. The FTC warned Metsera of the antitrust risk associated with the Novo deal. Novo pulled out of this race. "Every transaction comes with a cost," said Marcus Morris Eyton, portfolio manager at Alliance Bernstein for European and Global Growth Equities. "We are happy to see the management exercise financial discipline when they feel that the price has become too high." (Reporting from Sabrina Valle and Maggie Fick, in New York; Additional reporting by Louise Breusch Rasmussen, in Copenhagen; Editing done by Adam Jourdan and Michele Gershberg; Bill Berkrot).
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Saade Family becomes second largest shareholder in Carrefour
Carrefour, Europe's biggest food retailer, announced on Wednesday that the family of Rodolphe Saade (owner of French shipping company CMA CGM) has purchased a stake in Carrefour of around 4%, making it its second largest shareholder. Carrefour announced that the purchase marks a new chapter in the history of major shareholders at Carrefour, since Peninsula, the family-owned business of Abilio Dniz, sold its 8% share. The financial details of the transaction were not revealed. Saade will replace Peninsula (represented by Eduardo Rossi) in the board of Carrefour for the rest of the term, up until the 2028 annual meeting. The switch will be effective from December 1. Saade stated in a statement that "Carrefour’s transformation, which combines innovative, operational discipline, and environmental responsibility is aligned to the values that guide the commitment we have made." He added, "By joining the board of directors I hope to support this long-term growth and contribute to its momentum." Galfa, the holding company of the French family that owns the department store Galeries Lafayette in France, is the largest shareholder in Carrefour with a stake of 9.46%. (Reporting from Mathias de Rozario, Gdansk; Dominique Vidalon, Paris. Mark Potter is the editor.
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Delta sees strong current quarter despite flight disruptions
Delta Air Lines is expecting a solid fourth quarter, despite the flight disruptions due to the shutdown of the federal government, CEO Ed Bastian said on CNBC Wednesday. Bastian stated that, while disruptions to Delta's business would be costly for the airline industry and economy as a whole, they wouldn't "wipe" out its quarterly profits. His comments come after a recent wave of cancellations caused by the absence of air traffic controllers. Delta Airlines said that its operations recovered after the weekend disruptions caused by staffing issues with air traffic controllers and seasonal weather conditions in Atlanta, among other places. The longest shutdown in U.S. History has forced 13,000 air-traffic controllers and 50,000 Transportation Security Administration (TSA) agents to work for free. The number of flight cancellations dropped sharply on Wednesday just hours before the House of Representatives voted on a measure to end an unprecedented government shutdown. (Reporting from Nathan Gomes, Bengaluru. Editing by Shailesh Kumar and Alan Barona.)
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Einride, a self-driving truck company, will go public through a SPAC deal valued at $1.8 billion.
The Swedish autonomous trucking firm Einride announced on Wednesday that it had agreed to become public in the U.S. via a merger between Legato Merger Corp III and a blank-check company. This deal valued the company at approximately $1.8 billion. Listing comes after a surge of electric-vehicle startup companies went public during pandemic boom SPAC with the goal of capitalizing on huge demand for clean energy vehicles and government incentives to purchase battery-powered automobiles. Some of these firms, including Nikola, Lordstown Motors, and Proterra, have since gone bankrupt due to high costs, strong competition and operational challenges that eroded cash reserves. As the demand for faster freight delivery increases, autonomous trucking companies are seeking to automate logistics and shipping in order to meet this increased demand. They also want to commercialize their self-driving technologies while dealing with tariff pressures. "We have implemented a multi-sourcing policy for all our key input goods." "I think we understand the situation pretty well," Einride CEO RoozbehCharli said. Einride wants to increase its growth by attracting up to $100,000,000 in private equity investment. The deal was also boosted by the $100m it raised from investors, including EQT Ventures in October. Charli stated that Einride was founded in 2016 and has an annual revenue of $65 million, of which $45 million are deployed. The company has also negotiated scaling plans worth around $800,000,000 with its customers. After the closing of the deal, existing shareholders such as EQT, Ericsson and others will own approximately 83% equity and the current management team will continue leading the firm. SPACs are shell companies that use an IPO as a way to raise money to merge with a business, and then take it public. This is a faster route to the market than a conventional IPO. (Reporting and editing by Shailesh Kuber in Bengaluru)
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Arequipa bus crash kills 37
Local authorities reported on Wednesday that at least 37 people died and dozens were injured when a bus crashed into a ravine near the mountains of Arequipa in southern Peru. Walther Oporto is the regional health chief for Arequipa. He cited firefighters who were at the accident site. The number of deaths was one of the highest recorded in Latin America in recent years, and it was also the deadliest in Peru. According to the list provided by local authorities, an eight-month old baby and two more children were among those injured. Llamosas bus company did not respond immediately to a comment request. The authorities said that the bus had been traveling from the coastal town Chala towards the region of Arequipa on the highway when it hit a van. It was thrown into a 200 meter (656 foot) deep ravine by the impact. The local government published photos showing the bus lying on its side at the bottom of a gully, surrounded by car parts and other passenger belongings. Arequipa's government reported that 26 people are being treated in Arequipa for injuries. Three of those patients were in a serious condition. (Reporting and Additional Reporting by Aida Pelaez-Fernandez, Editing by Daina Beth Sool and Mark Heinrich; Marco Aquino)
Airline company pilots, crews voice concerns about Middle East routes
In late September, an experienced pilot at lowcost European airline Wizz Air felt distressed after learning his plane would fly over Iraq at night amid mounting tensions in between nearby Iran and Israel.
He chose to query the decision given that just a week previously the airline company had deemed the route hazardous. In reaction, Wizz Air's. flight operations group told him the airway was now. considered safe and he needed to fly it, without providing even more. explanation, the pilot said.
I wasn't truly happy with it, the pilot, who asked for. privacy from worry he might lose his task, informed Reuters. Days. later, Iraq closed its airspace when Iran fired missiles on Oct. 1 at Israel. It validated my suspicion that it wasn't safe.
In response to Reuters' inquiries, Wizz Air said safety is its. top priority and it had actually carried out detailed danger assessments. before resuming flights over Iraq and other Middle Eastern. countries.
Reuters talked to four pilots, 3 cabin crew members,. 3 flight security professionals and 2 airline company executives about. growing safety issues in the European air market due to. intensifying stress in the Middle East following Hamas' attack. on Israel in October 2023, that triggered the war in Gaza.
The Middle East is a key air passage for airplanes heading to. India, South-East Asia and Australia and in 2015 was. criss-crossed everyday by 1,400 flights to and from Europe,. Eurocontrol data show.
The safety debate about flying over the region is playing. out in Europe mainly because pilots there are protected by. unions, unlike other parts of the world.
Reuters evaluated nine unpublished letters from 4 European. unions representing pilots and teams that expressed worries. about air safety over Middle Eastern nations. The letters were. sent to Wizz Air, Ryanair, airBaltic, the European. Commission and the European Union Air Travel Safety Agency (EASA). between June and August.
Nobody should be forced to operate in such a harmful. environment and no business interests should outweigh the. safety and well-being of those on board, checked out a letter,. dealt with to EASA and the European Commission from Romanian. flight crew union FPU Romania, dated Aug. 26.
In other letters, staff gotten in touch with airlines to be more. transparent about their decisions on routes and required the. right to refuse to fly a hazardous route.
There have been no casualties or accidents impacting. industrial air travel connected to the escalation of stress in the. Middle East because the war in Gaza emerged in 2015.
Air France opened an internal investigation after among its. business airplanes flew over Iraq on Oct. 1 during Tehran's. rocket attack on Israel. On that event, airline companies rushed. to divert lots of aircrafts heading towards the impacted areas in. the Middle East.
The ongoing stress in between Israel and Iran and the abrupt. ousting of President Bashar al-Assad by Syrian rebels at the. weekend have raised issues of further insecurity in the. region.
The use of missiles in the region has actually restored memories of. the downing of Malaysian Airlines Flight MH17 over eastern. Ukraine in 2014 and of Ukraine International Airlines flight. PS752 en path from Tehran in 2020.
Being inadvertently shot-down in the mayhem of war is the top. worry, 3 pilots and two air travel security professionals told. Reuters, in addition to the threat of an emergency situation landing.
While airlines consisting of Lufthansa and KLM. no longer fly over Iran, carriers consisting of Etihad,. flydubai, Aeroflot and Wizz Air were still crossing. the nation's airspace as just recently as Dec. 2, data from tracking. service FlightRadar24 show.
Some European airlines consisting of Lufthansa and KLM allow. crew to opt-out of paths they don't feel are safe, but others. such as Wizz Air, Ryanair and airBaltic don't.
AirBaltic CEO Martin Gauss said his airline satisfies an. global safety requirement that does not need to be adjusted.
If we begin a right of rejection, then where do we stop? the next person feels dissatisfied overflying Iraqi airspace. since there's tension there? he informed Reuters on Dec. 2 in. reaction to questions about airBaltic flight safety talks with. unions.
Ryanair, which periodically flew to Jordan and Israel. until September, stated it makes security choices based on EASA. guidance.
If EASA states it's safe, then, honestly, thank you, we're not. thinking about what the unions or some pilot believe, Ryanair CEO. Michael O'Leary informed Reuters in October, when inquired about staff. security issues.
EASA said it has actually been associated with a number of exchanges with. pilots and airline companies on route safety in recent months worrying. the Middle East, including that disciplining staff for raising. safety concerns would run counter to a just culture where. employees can voice concerns.
INSUFFICIENT REASSURANCES
One Abu Dhabi-based Wizz Air pilot told Reuters he was. comfortable flying over the conflict-torn region as he believes. the market has an extremely high security standard.
But for some pilots and team members operating at budget plan. airlines, the peace of minds of the companies are insufficient.
They told Reuters pilots should have more choice in refusing. flights over possibly hazardous airspace and asked for more. info about airline security evaluations.
The fact that Wizz Air sends e-mails asserting that it's. safe is unimportant to business workers, read a letter from. FPU Romania to Chief Operating Officer Diarmuid O'Conghaile,. dated Aug. 12. Flights into these conflict locations, even if they. are rescue objectives, ought to be carried out by military personnel. and airplane, not by business teams.
Mircea Constantin, a previous cabin crew member who represents. FPU Romania, stated Wizz Air never ever provided an official response to this. letter and comparable ones sent previously this year, however did send out. security assistance and updates to personnel.
A pilot and a cabin team member, who decreased to be named. for worry of retaliatory action, said they got warnings from. their employers for declining to fly on Middle Eastern routes or. calling in sick.
CONGESTED SKIES
Last month, 165 rockets were released in Middle Eastern. conflict zones versus simply 33 in November 2023, according to the. most current offered information from Osprey Flight Solutions.
However airspace can just be enforcably limited if a nation. chooses to shut it down, as when it comes to Ukraine after. Russia's full-scale invasion in 2022.
Several airline companies have decided to briefly suspend flights to. locations like Israel when tension increases. Lufthansa and British. Airways did so after Iran bombarded Israel on April 13.
However this limits the airspace in usage in the already crowded. Middle Eastern skies.
Choosing to fly over Central Asia or Egypt and Saudi Arabia. to avoid Middle Eastern locations is also more pricey as aircrafts. burn more fuel and some nations charge higher overflight charges.
Flying an industrial aircraft from Singapore to London-Heathrow. through Afghanistan and Central Asia, for example, cost an. airline $4,760 in overflight costs, about 50% more than a route. through the Middle East, according to two Aug. 31 flight plans. examined .
Reuters might not name the airline as the flight strategies are. not public.
Some private jets are preventing the most crucial locations.
At the minute, my no-go areas would be the hotspot points:. Libya, Israel, Iran, just due to the fact that they're sort of captured up in. it all, stated Andy Spencer, a Singapore-based pilot who flies. personal jets and who formerly worked as an airline pilot.
Spencer, who has twenty years of experience and flies through. the Middle East regularly, said that on a current flight from. Manila to Cuba, he flew from Dubai over Egypt and north through. Malta before refuelling in Morocco to prevent Libyan and. Israeli airspace.
EASA, regarded by market professionals as the strictest local. security regulator, issues public bulletins on how to fly safely. over conflict zones.
However these aren't obligatory and every airline chooses where. to take a trip based on a patchwork of federal government notifications,. third-party security consultants, internal security teams and. details sharing between carriers, leading to divergent. policies.
Such intelligence is not normally shown staff.
The opacity has sown fear and skepticism amongst pilots, cabin. crew and passengers as they question whether their airline has. missed something providers in other countries know, said. Otjan de Bruijn, a previous head of European pilots union the. European Cockpit Association and a pilot for KLM.
The more information you offer to pilots, the more. notified a decision they can make, stated Spencer, who is likewise an. operations expert at flight advisory body OPSGROUP, which. offers independent functional guidance to the air travel market.
When Gulf players like Etihad, Emirates or flydubai suddenly. stop flying over Iran or Iraq, the industry sees it as a. reliable indicator of danger, pilots and security sources said, as. these airline companies can have access to comprehensive intelligence from. their governments.
Flydubai informed Reuters it operates within airspace and. airways in the region that are authorized by Dubai's General Civil. Air travel Authority. Emirates said it constantly monitors all. routings, changing as needed and would never run a flight. unless it was safe to do so. Etihad said it only runs. through authorized airspace.
Guest rights groups are also requesting for travellers to. receive more info.
If travelers decrease to take flights over dispute zones,. airlines would be disinclined to continue such flights, stated. Paul Hudson, the head of U.S.-based passenger group Flyers. Rights. And travelers who take such flights would do so. notified of the dangers.
(source: Reuters)