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Portugal is awaiting binding bids from Air France-KLM and Lufthansa for TAP
Portugal will?receive binding offers on Wednesday from 'Air - France-KLM and Lufthansa to acquire a minority stake of TAP. This is the beginning of the final battle over one Europe's last remaining independent flag carriers. Lisbon has relaunched the long-delayed TAP privatisation, with a view to selling a 44.9% share to a strategic partner that can boost TAP's global reach and competitiveness. TAP should be part of an airline group. The government says that EU rules on state aid prevent the company from receiving further public funding, leaving it vulnerable to global shocks in future. Air France-KLM and Lufthansa were the only contenders in the April non-binding bids. The government described both offers as "largely equal?and extremely ambitious" from a strategic, industrial, and financial perspective. Wednesday,?5 pm (1600 GMT), is the deadline for binding offers. The latest target of Europe's airline merger drive is TAP's 'CONSOLIDATION WINDS'. This year, Lufthansa acquired a stake of 41% in Italy's flag airline ITA Airways. It joins a stable which includes SWISS Austrian Airlines, Brussels Airlines, and SWISS. Air France-KLM expanded its investment portfolio to include Scandinavian airline SAS. Both groups said that they were interested in buying TAP, and their experience of integrating airlines and preserving brands and hubs will help secure TAP’s future. Beyond the highest bidder TAP's main attraction is the lucrative and prized slots that link its Lisbon hub to?Brazil and Portuguese-speaking African Countries?and U.S.A., which are key routes for Portugal’s diaspora and tourism, as well as investment. In contrast to a traditional privatisation, Infrastructure minister Miguel Pinto Luz stated this?month "this is a strategy decision that shouldn't be reduced merely?to the price". The Government wants TAP to be the next partner in supporting growth in Portugal. This includes Porto, Faro, Azores, and Madeira. Bernstein analysts valued TAP's stake of 44.9% at approximately EUR700 million ($798m), based upon a valuation for the airline of EUR1.5billion. The government hasn't disclosed the values of non-binding offers.
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Martin Vladimirov: The race for economic security is driving Europe's energy transformation.
Europe is less vulnerable to disruptions in energy supplies since the Russia crisis of 2022, but the region still faces a new threat: high energy costs that are destroying the industrial base on the continent. Europe has fared relatively well so far in the global energy crunch caused by the Iran War that began on 28 February. This is largely due to massive investments made in LNG terminals, mandatory storage, and an increased reliance on U.S. Liquefied Natural Gas. The price of?gas in Europe has risen but the region is not yet in crisis mode, like it was after Russia invaded Ukraine. The conflict in Iran has shown that Europe is vulnerable to geopolitical instability, shipping disruptions and the competition from Asian LNG buyers. Since imported fossil fuels are the main factor in determining electricity prices, any external shock could lead to higher costs for European consumers and industry. By the end of 2025, European electricity and natural gas prices had fallen by 34% and 14 %, respectively, compared to their averages in 2022. But they were still about 50% and 38% higher than pre-war prices. The impact of higher energy prices on the European economy has already been significant. Between 2019 and 2023, the continent lost over one million industrial jobs. According to Handelsblatt, Germany, which was once considered "Europe's growth motor", will lose another 143,000 jobs in 2025. The reasons for this include pandemic-related disruptions and higher inflation, as well as increased competition in advanced manufacturing from China. However, the high energy prices played a significant role because they made it harder for European manufacturers compete. If electricity is not affordable, Europe risks a faster deindustrialisation. AFFORDABILITY CRISIS The Center for the Study of Democracy's 2026 Energy and Climate Security Risk Index shows that affordability is now the biggest source of energy security risks for most European economies. The affordability risk fell 13% on an annual basis in 2025, but was still much higher than it was in 2021. Over the long term, countries that are most dependent on fossil energy sources, such as Poland, Bulgaria and Romania, will face higher energy costs, and a lower level of industrial competitiveness. Sweden, Finland and France are among the most resilient energy-producing countries in Europe. These countries combine low-carbon energy, such as nuclear and hydropower with rapidly growing solar and wind power and high levels of electrification. According to Electricity Maps, when the Iran War disrupted LNG flow through the Strait of Hormuz, in March, the average wholesale electricity price in Germany was higher than that in Finland, Sweden, and France, by EUR61 per megawatt-hour, EUR33 per megawatt-hour, and EUR35 for each, respectively. Gas is rarely the main factor in setting power prices for these highly electrified systems. In Finland and Sweden electricity already makes up around 30% of the final energy consumption, which is far higher than in most of Europe. France's electric system receives over 70% of it from nuclear power. The long-standing debate in Europe over nuclear energy versus renewables may not be the right one. Combining both produces the best-performing electricity system. GROWING PAINS Unfortunately, Europe lacks the necessary institutional framework to quickly and reliably deploy a more efficient energy system across the continent. It is true that Europe's electric system is changing with unprecedented speed. According to Eurostat, the installed solar capacity of several Central and Eastern European nations almost quadrupled from 2021-2025. The EU battery storage also increased by 10 times. The rapid growth of renewables that are intermittent puts increasing pressure on the electricity grids and storage systems. Last year's Iberian Blackout highlighted these vulnerabilities. Countries that combine renewables with reliable, low-carbon generation, stronger interconnections and greater investment ?in grid infrastructure appear to be significantly more resilient than their more fossil-fuel-dependent peers. The new nuclear project is also plagued by fragmented regulations, long permitting processes, financial constraints, and supply-chain bottlenecks, which drive up construction costs and cause delays. What can you do? Instead of treating each project as an individual national undertaking, the EU should develop common deployment programs based on standard procedures and commercially viable funding models, which would allow for successful designs and delivery methods to be quickly replicated across multiple countries. Keep up in the?AI Race This race for energy security is being accelerated by the race to create a competitive AI eco-system. AI data centres and advanced semi-conductor manufacturing require huge quantities of reliable low-carbon energy. Also, they rely on a secure supply chain for raw materials such as batteries, semiconductors, and advanced grid equipment. These are areas in which Europe is heavily dependent on Chinese manufacturers. If Europe does not diversify these supply chains, then it runs the risk of replacing one strategic dependence with another. Energy security in the AI era is not just about supplying energy. It is about whether or not the continent has enough clean, affordable and reliable electricity to maintain industrial competitiveness, technology leadership, and economic sovereignty. The countries who understand this shift will define Europe's future decade. Those who do not understand this shift will be left behind. You like this column? Check out Open Interest, your new essential source for global financial commentary. Follow ROI on LinkedIn and X. Listen to the Morning Bid podcast daily on Apple, Spotify or the app. Subscribe to the Morning Bid podcast and hear journalists discussing the latest news in finance and markets seven days a weeks. (By Martin Vladimirov, Edited by Margueritachoy and Anna Szymanski).
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AI race replaces e-commerce growth engine in Asian air cargo
As cross-border ecommerce loses steam, the global race to develop artificial intelligence is changing Asia's air freight map. Airlines are redesigning their networks to focus on growing semiconductor manufacturing centers. Airlines and logistics companies claim that unlike the parcel boom following the pandemic, the 'demand for AI infrastructure' is backed by multi-year orders of advanced memory chips and processing units and hundreds of millions of dollars in?planned? investment into data centres. Moreover, the tighter import regulations in the U.S.A. and Europe that have been affecting the recent growth of the e-commerce industry are dampening it. When Xeneta's freight analytics company released its mid-year forecast this month, Niall van de Wouw said that e-commerce used to be the single largest growth pillar for air freight. Korean Air Lines is one of the most obvious examples of this transition. Cargo revenue grew 46% to 1.54 trillion won ($1.07billion) in the second quarter, driven by AI chips and server racks. The airline said that these items had replaced ecommerce from China as their primary growth engine. Jaedong Eum is the executive vice president of Korean Air and head its cargo division. He said that high-tech advanced cargo has "rapidly expanded" as a key growth driver. He said that the demand is unusually obvious, as orders for high-bandwidth processors and memory chips are already two to three year out, even though supply continues to be insufficient. According to Xeneta, global semiconductor sales in April more than doubled from the previous year. This is the strongest growth in records dating back to 1986. China's low value and ecommerce exports, on the other hand, fell 7% in may, marking its sixth consecutive month of decline. Last year, the U.S. stopped granting duty-free treatment to low-value imports coming from China. This month, the European Union also eliminated its own threshold for duty-free goods. Shein, a fast-fashion retailer, said that the changes have hurt its U.S. operations and are expected to cause further headwinds in Europe. Japan's ANA ?Holdings said in a statement that the EU move was ?a downside risk for the broader cargo market even as semiconductor-related shipments remained strong. REDRAWING TRADE ROUTES Changes in the cargo mix are also changing trade routes throughout Asia. Japan exports semiconductor production equipment, South Korea makes advanced memory chips, and Taiwan is the center of cutting-edge chip manufacturing. Vietnam, Malaysia and Thailand are becoming increasingly important hubs of manufacturing and assembly for AI servers that will be shipped to North America and Europe. The first-half freight throughput at Singapore Changi Airport increased 8.7% on an annual basis, mainly due to the strong demand for semiconductors in the world, according to Lim Ching Kiat. He is the executive vice president of the airport group responsible for air hubs and cargo development. The airlines are reorganizing themselves around these flows. Japan Airlines reported that technology products accounted?for about 80% of a rise in air exports out of Asia, excluding China during the last year. This highlights how semiconductors and AI-related equipment are reshaping the regional cargo flow. It has increased freighter services connecting semiconductor hubs like Taipei and Bangkok with Tokyo Narita Airport. ANA announced that it would be integrating Nippon Cargo Airlines in order to move more large freighters - on to trans-Pacific and European route while using its Asian Network to funnel semiconductor cargo out of manufacturing hubs throughout the region. China Airlines, a Taiwanese carrier, has increased its Southeast Asia freighter flights as manufacturers diversify their production. The demand for AI-related cargo helped to increase cargo volumes by 8.1% during the first half year. EVA Airways reported that AI-related shipments account for as much as half of their cargo revenue. AI hardware, according to airlines, requires different handling than traditional air freight, because it often includes high-value semiconductor manufacturing gear, graphics processors, and complete server racks. IATA, the airline group, estimates that AI-related cargo will account for 53.5% in value of all goods transported by air in 2025. However, it will only make up 7% of total cargo volume. AI hardware, unlike much of the e-commerce goods, is small, valuable, and can be time-critical for data centres to stay on schedule. This makes air transportation worth it. Cathay Pacific Airways has announced that it has introduced a software program to automatically determine how sensitive semiconductor equipment and AI Hardware should be loaded into aircraft. This surge is also straining the cargo infrastructure. Dimerco Express Group reported that AI and semiconductor shipments filled Taiwan's Taipei airport cargo hub in July to capacity, causing freight space to be tight on routes into the U.S. Eum, Korean Air's CEO, said that the demand for cargo would continue to be strong through 2026. Reporting by Julie Zhu and Lisa Baertlein, Los Angeles. Editing by Jamie Freed.
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Sources say Iran will receive shoulder-launched Chinese missile systems within weeks.
Three sources with knowledge of the deal said that Iran will receive a first shipment within weeks out of 400 shoulder-fired air defence missile launchers made by China, as they rebuild their defenses in the midst of war with the United States. The purchase is valued between $60 and 70 million and represents one of Tehran's most visible efforts to improve its short-range defences following the start of the 'war' with Israel and the U.S., which revealed gaps in Iran’s ability to defend military sites and strategic assets. Sources said that the contract includes the purchase of 300 to 400 man-portable Air Defence Systems (MANPADS), which include QW-12 and FN-16 Chinese missiles. Sources say that Zhongqing Baoshang International Investment in Hong Kong acted as an intermediary for the Iranians and the Chinese supplier. IRAN MUST REARM AFTER WAR FOR MONTHS Sources spoke under condition of anonymity due to the sensitive nature of the subject. The Iranian Foreign Ministry did not respond immediately to a request for comment. The Chinese Foreign Ministry stated: "The reports in question are totally unfounded." China has always played an important role in ending conflict and promoting peace. The parent company of Zhongqing Baoshang International Investment, Zhong Qing Bao Shang Group based in Beijing, did not respond immediately to an email on Tuesday. After months of conflict in which the U.S., Israel and other countries have attacked Iran's missile, drone, and air-defence programs, Tehran has responded with a barrage of ballistic missiles, drones, and other weapons. The conflict has brought to light the difficulty of defending strategic and military sites from advanced aircraft and precision guided weapons. Washington suspended its bombardment of Syria for two weeks on Saturday. But President Donald Trump said that if the conflict was not resolved through negotiations, then strikes would resume. The five-month conflict has been in a ceasefire in theory since April. The delivery of hundreds?MANPADS will significantly increase Iran's short-range air defence weapons and highlight the deepening military ties between China and Iran. Sources warned that even though the agreement was signed, details such as delivery schedules and quantities could change. According to sources, the parties have agreed that deliveries will be made by air, first from Urumqi, in western China. Then, the delivery will transit through Pakistan and then to Iran. ISPR, Pakistan's military-affiliated public relations arm, said that the rumours about Pakistan supplying Air Defence arms to Iran via China were "absolutely concocted" and "false." The Pakistani Foreign Ministry spokesperson did not respond when asked for comment. Sources say that China and Iran should explore land routes for delivery. Military experts claim that Iran has made significant investments in missiles, radars and drones over the last two decades. However, they also say that portable air defence systems are more important than fixed batteries because they can easily be moved, operate by small teams, and be relocated. A?European source of security said that authorities in his country knew of several contracts being discussed involving possible sales of QW-series MANPADS systems to Iran. These included?QW-12 QW-18 QW-19. Second security source in the Middle East said Iran was seeking to buy QW-12 and QW-18 rockets but were unaware of a deal already being concluded. QW-12 and FN-16 surface-to-air missiles with infrared guidance are shoulder fired, designed to target low-flying aircraft such as helicopters, drones, etc. They can be quickly deployed around sensitive sites, such as energy infrastructure or military installations. Defence analysts consider the QW-12 to be 'less capable' than the newer QW versions, such as the QW-18 or QW-19. However, they say that the system can still provide a layer of protection at short range against drones and low flying targets. Iranian officials and two Western intelligence sources said that Tehran was also exploring the use of overland route to move Chinese military supply and dual-use components in a more discrete manner and with less disruption risk. The purchase highlights the Islamic Republic's continued reliance on domestic weapons production as well as foreign suppliers, despite sanctions and restrictions imposed on defence imports for years. According to sources familiar with the negotiations, it was reported previously that Iran and China were close to signing a separate deal to purchase anti-ship cruise weapons. Could not determine if the agreement was completed.
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American Airlines resumes nationwide flights after IT issue caused a brief halt
American Airlines and its regional carriers resumed flights on Tuesday evening after a short nationwide suspension of departures due to an IT problem, the airline announced. Federal Aviation Administration (FAA) issued a ground-stop for American Airlines flight due to an IT outage which began around 6:30 pm. ET (2230 GMT), and was cancelled at 7:18 pm. The issue caused hundreds of delays as planes couldn't leave until it was resolved. This happened at a time when many U.S. East Coast airports were experiencing major delays and ground stoppages due to thunderstorms. American Airlines said in a press release that "systems are now back online and flights are once again departing." "We temporarily halted flights while our teams resolved the problem. We apologize to our customers for any inconvenience. FlightAware, an 'airline tracking site', reported that American delayed or cancelled 1,100 flights on Tuesday, which is 30% of all flights. Flightradar24 is another aviation website that reported as of 7:15 p.m. There were '130 less flights? in the air at ET than there were last week. (Reporting and editing by Jacqueline Wong, Jamie Freed, and David Shepardson)
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Travel companies in the US are resilient enough to absorb Middle East shock.
Early earnings reports show how travel companies, from hotel chains and cruise operators, have relied upon resilient business demand from Americans as well as a short-term boost provided by the World Cup to offset the effects of the Middle East war. Fuel costs have increased and international travel has been disrupted by the conflict. However, earnings reports released on Tuesday indicate that many consumers are not deterred by economic uncertainty or higher travel costs. The founder of GetCruiseInfo.com, Brian Rooney, said that "JetBlue Hilton and Royal Caribbean have all shown continued strength with higher-valued products. This suggests that travelers still prioritize experiences, even though they are becoming more selective in their discretionary spending." These results confirm that we are still experiencing a K-shaped economy. Value-conscious travelers adjust their travel plans and schedules, but higher-income travelers book premium experiences. Hilton Worldwide Holdings increased its forecast for room revenue growth in the full year, driven by strong demand at its luxury properties, and the expected benefits of the World Cup during the third quarter. However, the U.S. hotelier's revenue from the Middle East and Africa region fell 29.5% compared to the previous period. Hilton CEO Christopher Nassetta stated in an earnings conference that the World Cup helped boost earnings. However, the mid-scale hotels saw the greatest turnaround, as they benefited from the business and group travel demands. Hilton's RevPAR (room revenues) grew by about 1.7% in the second quarter due to the soccer event. Royal Caribbean, the cruise operator, raised its profit forecast for this year but cut its revenue growth projection as it factored a slight hit in bookings due to prolonged geopolitical tensions. The Miami-based company reported an increase of 27% in its quarterly fuel costs to $355 millions from the previous year. However, it slightly reduced its forecast for full-year fuel expenses from $1.35 to $1.34 billion. Naftali Hoetz, Royal Caribbean's chief of finance, said: "Consumer interest in our vacation experiences continues to be strong. Guests continue to show a willingness to spend money on unforgettable experiences." Airline companies have been hit the hardest by the war in Iran. Although most U.S. In the second quarter, carriers recovered close to half the fuel costs that have increased since the beginning of the war. However, the impact on their profits is still mixed. The prices of air travel are expected to remain high. JetBlue Airways reported that higher demand and higher fares allowed it to recover more fuel costs than anticipated, even though its quarterly fuel bill ballooned by nearly 81% or approximately $407 million. JetBlue's President Marty St. George stated during an earnings conference that "nobody likes fare increases but, at the end of the day, we need to cover our costs." As a result of stabilizing fuel prices due to the war, the airline's?visibility? into the second half of the year?improved. Travel is the most resilient part of luxury. Adam Sebba is the CEO of The Luminaire, a luxury travel agency based in London. (Reporting and editing by Arpan Varghese, Sahal Muhammed and Anshuman Jain in Bengaluru)
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Iran proposes temporary Hormuz Plan giving it greater control over transit routes
Iran has proposed to Oman an arrangement that would temporarily reopen the Strait of Hormuz. Under this arrangement, one direction of traffic will pass through Iranian waters and part of the other route will also be in Iranian water. This was revealed by Kazem Gharibabadi on state television. Gharibabadi stated that Tehran rejected the Omani proposal of an equal division between transit routes in both countries. He said such a plan would not address Tehran's concerns about security until regional stability was achieved. He added that Tehran had never recognized the southern route along Oman’s coast. Gharibabadi said that Tehran had also?made it very clear to Muscat, that it does not recognise the Traffic Separation Scheme. This is because the path roughly in the middle lies mostly in Omani waters. It also runs counter to Iran's desire to?monitor the transiting vessels following the attack by the U.S. Due to a 'risk' of mines, the TSS adopted by IMO is not currently usable. Instead, Iran's northern and Oman's south routes have been substituted. Gharibabadi stated that "this is for national security, not for bullying. Because when the TSS spent 60 years in Omani water we did not say anything." The Iranian diplomat also warned that Tehran would not allow any country to demine the Strait of Hormuz, even if Oman invited them.
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Erdogan: Turkey wants to sign an energy deal with Iraq
After he met with Iraqi Prime Minister Ali al-Zaidi, President Tayyip 'Erdogan' said on Tuesday that Turkey wanted to sign a comprehensive deal for energy cooperation as soon as possible. Erdogan, speaking at a press conference held after a signing event that was expected to include a deal keeping the Kirkuk-Ceyhan oil pipeline open 'for another year', said the state-owned Turkish oil and gas firm TPAO - would operate the Kirkuk oilfield currently used by BP. The deal to extend a decades-old agreement that governs the exports via the?pipeline, and which officially expired on Monday, was not signed by the sides. After signing three agreements?on collaboration in various fields?,?Erdogan stated that more agreements would be expected. However, his ministers abruptly briefed him on stage, and the two leaders then proceeded to their remarks, without any further signatures. The Iraq-Turkey crude petroleum pipeline agreement came to an end yesterday. Erdogan stated that the goal was to sign an energy agreement which would benefit both parties as soon as possible. In a press release on X, Turkish?Energy?Minister?Alparslan Bayraktar stated that TPAO acquired a 15 percent stake in BP Energy Company of Kirkuk?Limited. He added that this would enable the Turkish?company? to operate in the area. Bayraktar stated that "it will work with BPECKL to bring the 3 billion barrel reserve potential into production." BP has confirmed the agreement and welcomed the partnership between TPAO and BP.
Fiji cops investigating supposed rape, theft of Virgin Australia team members
Fiji authorities stated on Thursday they were investigating an incident involving 2 team members of Australian airline company Virgin Australia << IPOVIR.AX > who were apparently victims of rape and theft in Nadi in the early hours of New Year's Day.
The team members were in the popular tourist destination on a layover before they were supposed to fly off the following day, Performing Commissioner of Police Juki Fong Chew stated in a. statement.
Virgin, which said it was aware of the incident, has sent. people to Fiji to provide support. It did not provide further. details of the occurrence in a declaration to Reuters.
Fiji authorities said the examination up until now had actually discovered some. Virgin crew members had gone to a bar in Nadi.
Sadly, two of the crew members were victims of an. declared theft and rape after exiting the nite club trying to. find their way back to the hotel, said Chew, adding that the. examination is continuing.
The South Pacific island nation of Fiji is a popular traveler. location and received 76,845 visitors in the month of. November, mainly from Australia, New Zealand and The United States And Canada,. according to the nation's tourist site.
Australia's Department of Foreign Affairs and Trade did not. immediately respond to a Reuters ask for remark.
(source: Reuters)