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Portugal announces that the sale of TAP Airlines has cross-party support
The government of Portugal expects that the partial privatisation process for flag carrier TAP will proceed smoothly. This is due to a rare political consensus across parties and interest shown by Europe's biggest airlines, Infrastructure Minister Miguel Pinto Luz stated on Friday. He stated that the centre-right minority government initially wanted to offer 100% of TAP but settled for 49.9% when the two major opposition parties threatened to stop any larger sale. This led to a “broad consensus” in parliament with the extreme right Chega and Socialist parties. He told a committee of parliament that "dialogue and mutual respect is always the best way for politics." To ensure transparency, the sale of the property will be reviewed and monitored by an independent commission as well as a working group within the parliament. Portugal has relaunched its long-delayed TAP privatisation in July. The aim is to sell a stake of 44.9% to a carrier that can bring global scale and competition, plus an additional 5% for TAP staff. Airlines interested in TAP are required to submit a formal "manifestation" of interest by November 21, and non-binding bids by the end the year. Lufthansa and Air France-KLM have expressed interest in purchasing TAP. British Airways and IAG, the owner of British Airways, also met with the government last year.
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KLM signs two-year contract with unions of ground staff
Dutch airline KLM announced on Friday it had reached a deal with five unions that represent ground staff in The Netherlands for a two-year agreement that included pay increases, bonuses and improved retirement options. The Collective Labor Agreement (CLA), which is retroactive to March 1, this year and ends on February 28, 2027, will be in effect. This includes a salary increase of 3.25 percent in total as well as a one-time payment of 500 euros ($583) net in December 2025, and 250 euros in January 2026. KLM has also agreed to permanentize the 80-90-100% scheme, which allows older workers to work 90% of their working hours and still accrue full pension. "We are happy that we reached an agreement with all five unions. We have reached solid agreements with KLM on remunerations, career development and productivity. The agreement came amid ongoing labor unrest in KLM. Two major unions, FNV and CNV, had rejected the September deal with other unions and continued to organize strikes.
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Tanzania opposition claims hundreds of deaths in protests against voting
Tanzania's main Opposition Party said that hundreds of people were killed this week in protests against elections throughout the country, while the government claimed it was restoring the order following "isolated" incidents. The United Nations has confirmed credible reports that at least ten people have been killed in protests across three cities. This is the first estimate of fatalities made public by any international body since the vote on Wednesday. The government hasn't responded to any requests for comment or released any estimates of casualties. Could not independently verify these figures. Since Wednesday, protesters have been taking to the streets in anger over the exclusion of the two main challengers to President Samia Hassan from the race. They also criticized what they called widespread repression. Police have been accused of using tear gas and firearms to disperse some protests, according to witnesses. The police have imposed a curfew overnight in Dar es Salaam's commercial capital over the last two nights, after burning down government offices and other structures. Since Wednesday, internet access has been interrupted. HIGH SECURITY PRESENCE On Friday, the military and police patrolled Dar es Salaam's streets to prevent people from moving without a valid excuse. The government has extended the order for civil servants to work from home. John Kitoka, a spokesperson of the CHADEMA Party which was banned from the elections for refusing to adhere to a code and whose leader was arrested in April for treason, said that the party has documented 700 deaths based on the accounts of health workers. He said that protests were still ongoing in several cities on Friday, but they had diminished in others due to heavy security deployment. He said: "We want the protests continue until we get our electoral reforms." Hassan faces a challenge in the unrest. He was praised for his easing of repression after taking office 2021, but has faced criticism more recently from opposition parties and activists following a series arrests and allegations of abductions. Hassan denies allegations of widespread human rights abuses. She claimed that she ordered an investigation last year into reports of abductions. However, no official findings were released. Thursday, the electoral commission announced provisional results of the election. Hassan won a majority in several constituencies. GOVERNMENT : "NORMALICY WILL RETURN" The first direct comments from her government on the unrest were made on Friday by the Foreign Affairs Ministry in a broadcasted message to diplomatic missions on state television. In the message, it was stated that "due to isolated incidents where law and order were violated, the government has increased security and taken other precautionary steps." The statement added that the security measures are temporary, but necessary. Normalcy is expected to return soon. Seif Magango, spokesperson for the U.N. Human rights office, told reporters in Geneva that there are credible reports of 10 deaths in Dar es Salaam and Shinyanga. He urged the protesters to remain peaceful and called for security forces to "refrain from excessive or unnecessary force". A Dar es Salaam local, who requested anonymity for safety, said that a family had lost a member when a protester was mistakenly shot outside a hospital. No one from the police department responded to our requests for comment. In a joint statement released on Thursday, two members of the European Parliament’s foreign affairs committee called the election a fraud, saying that it "took place in an atmosphere of intimidation and fear". The article was written by Vincent Mumo Nzilani, George Obulutsa and edited by Aaron Ross. Ros Russell and Andrew Heavens.
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ITA Airways will resume flights from and to Tel Aviv on January 1, 2019.
Italy's ITA Airways has announced that it will resume direct flights to Tel Aviv on January 1. This will restore connections with Rome's Fiumicino airport, the main airport. According to the statement, the company, which is part of the Lufthansa Group, will operate at first two daily routes between Tel Aviv and the rest of Europe. The route is "of strategic importance to ITA Airways, and it represents a significant move for Italy. It further strengthens the commercial, cultural, and social ties between Italy and the United States." Hamas has reached a fragile truce with Israel this month, brokered by U.S. president Donald Trump. The deal is being tested periodically by violent outbreaks, as part of the conflict that was sparked by the October 7, 2020 attack by the militants group. As a result, several airlines have suspended flights in the past two years.
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Asia spot prices stable on ample stocks and tepid Demand
The Asian spot price of liquefied gas held steady in this week's market, despite a tepid global demand and healthy stocks. Average LNG price for delivery to North-east Asia in December Industry sources estimate that the price per million British Thermal Units (mmBtu) was $11.10, a slight drop from $11.20/mmBtu in the previous week. Arturo Regalado is Kpler's senior LNG analyst. He said that while Asian LNG prices were supported by higher European prices last week, this week's gains were limited by weaker Asian fundamentals. He said that he expects Asian LNG prices to remain stable next week due to the fact that weaker industrial gas demand and lower gas-fired usage in China combined with higher than average Japanese LNG inventories for December will cap any upside. The data from the Ministry of Industry shows that the LNG stocks of the major Japanese electric utilities increased to 1.97 million tonnes for the week ending October 26 compared with 1.84 million tons in October last year. Martin Senior, Argus' head of LNG prices, added that supply expectations were also confirmed this week by the cooling-down cargo declaration at the Golden Pass U.S. export terminal and Shell's announcement of the impending start of the second LNG Canada train. In Europe, S&P Global Commodity Insights estimated its daily Northwest Europe LNG Marker for cargoes to be delivered in December ex-ship at $10.126/mmBtu. This is a $0.53/mmBtu reduction from the December price at Dutch TTF hub. Spark Commodities estimated the November price to be $9.907/mmBtu. Regalado said that the abundance of LNG and pipeline supply helped to keep prices down, while the warmer weather and increased wind output also kept gas-fired generators in check. Last week, hedge funds and institutional investors began selling TTF futures, reinforcing that the bullish sentiment in the EU Gas market has collapsed, according to independent gas analyst Seb Knastle. The U.S. arbitrage for the front month to Northeast Asia via Cape of Good Hope has now been closed, and is marginally pointing towards Europe rather than Asia. However, the arbitrage through Panama remains open, according to Spark Commodities analyst Qasim Afghanistan. He added that LNG freight rates have risen to $61,250/day in the Atlantic, and to $41,250/day in Pacific. Harikrishnan Nair, Harikrishnan Chow and Emily Chow contributed to this report.
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China Aviation Fuel giant to undergo restructuring, says unit
China National Aviation Fuel Group (CNAFG), the dominant jet fuel distributor in China, will be restructured with another conglomerate. This was revealed by its Singapore listed subsidiary. China Aviation Oil (Singapore), CNAF Singapore's unit responsible for importing jet fuel into China, announced in a late-night statement on Thursday that the parent company CNAF will "undergo a corporate restructuring" with another corporate conglomerate. CAO did not provide any further details. China's demand is decreasing for gasoline and diesel due to the electrification of trucks and the use cheaper natural gas. However, demand for aviation fuel has grown significantly as a result of passenger and cargo traffic. Sinochem Group and China National Chemical Corp merged in 2021 to create the world's largest industrial chemicals company.
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Maguire: Taiwan's record gas consumption bucked Asia's clean energy drive
Taiwan's utilities have increased the amount of electricity generated by natural gas this year. This is in contrast to regional and global trends towards increasing clean energy. Data from the energy think tank Ember revealed that in the first eight month of this year, over 87% (the highest ever fossil fuel share) of Taiwan's power supply was generated by fossil fuels. This is the largest fossil fuel percentage for Asia's eighth largest economy. Taiwan's fossil fuel production share is also higher than the average for Asia (62%), and the average global (57%). This means that Taiwan stands out from other major economies when it comes to energy transition momentum, despite its lack of it. TAIWAN'S TERRAIN ILL-SUITED FOR RENEWABLE FARMS Taiwan imports more than 90% its energy, including all the coal, oil and natural gas that it consumes, due to a lack of raw materials. Rooftop solar systems are rapidly being adopted in many areas of the island, despite its mountainous terrain and dense population. Last year, the share of renewable energy in utility-scale electricity production was about 11%. This could rise to 15% by 2025, thanks to the offshore wind projects which began operation in 2018. Taiwan generated up to 25% of its electricity in early 2000's from nuclear reactors, but shut down its last nuclear plant in May because of political pressures and public concerns about safety. Due to the closure of the Maanshan Nuclear Plant and the limited generation capacity from renewable sources, utilities are still heavily reliant on fossil fuels for most of their power generation. UTILITIES BOOST GAS-FIRED GENERATION TO OFFSET COAL DECLINE Despite the fact that fossil fuel electricity production reached new heights in 2018, output from coal-fired plants has been steadily declining since 2019. This year's output is at its lowest level for more than a decade. The closure of old plants has been prompted by public pressure to improve the air quality. For the first time, coal-fired power has provided less than 40% electricity so far this year. In the last five years, utilities have increased the amount of natural gas generated to offset the reduced output from coal and the closure of nuclear power plants. Ember data revealed that the electricity produced by gas-fired power plants from January to August was 89.2 Terawatt Hours. This was a 12% jump from the same time period in 2019 and a 52% increase from 2018. The share of electricity generated by gas-fired power plants has reached a record high this year. TAIWAN'S LNG imports have soared the most among peers Taiwan increased its LNG imports by 35% between 2019 and 2024 to meet the country's ever-increasing needs for gas. This was the highest percentage increase of the five largest LNG importers during that time period. Kpler, a commodities intelligence company, reported that LNG imports reached a new record of 18,000,000 metric tons in the first three-quarters of 2018. This total represents a 7% increase from the same time period last year. China and Japan are the two largest LNG importers, but they have seen a decline in their import volumes so far this season. Taiwan's LNG exports in the three-month period through August reached a record 6.6 million tonnes, a positive sign for LNG markets. Nearly all major importers had reduced their imports. Due to the higher demand for cooling systems that use energy intensive cooling systems in summer, LNG imports could slow down in the next few weeks. Taiwan will continue to be a large LNG purchaser for the foreseeable, given its high dependence on gas during the winter heating seasons. Taiwan's constant need for fossil energy - for both imports and to power its own domestic network - sets it apart from other countries as a laggard in the energy transition. The continued construction of wind farms will eventually push renewable energy sources steadily upwards. Taiwan is likely to remain heavily dependent on fossil fuels and will continue to be a major customer of gas exporters in the future. These are the opinions of the columnist, an author for. You like this article? Check it out Open Interest The new global financial commentary source (ROI) is your go-to for all the latest news and analysis. ROI provides data-driven, thought-provoking analysis on everything from soybeans to swap rates. The markets are changing faster than ever. ROI can help you keep up. Follow ROI on You can find us on LinkedIn.
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Brazil blasts Amazon tributary as soy frontier advances
The Tocantins river is awash with catfish, peacock bass and other fish during the waxing of the moon. Welton de Franca, like his father and grandfather before him, has spent most of his adult life fishing among the rocks of one of the biggest tributaries of the Amazon Basin. Now, the Brazilian government wants to blow up these missiles. The Brazilian government has given approval to blast through 35 km (22 miles) of rapids and turn this sleepy section of Amazon rainforest into a tropical farm belt expressway. The opening of the Araguaia - Tocantins Riverway to barges all year round could pave the way for the exportation of soy and corn through the Amazon Basin that rivals the Mississippi River. This would reduce freight costs, and solidify Brazil's dominance in the global grain trade. Federal prosecutors are, however, trying to stop the $7.3 billion dollar project, which includes another 110 miles of dredging. They urge courts to take into consideration impacts on riverside community. We can't leave the house without our boats. "We live off the fish", said Franca whose family settled in a river island overlooking rocks when he turned 12. In late September, during a legal hearing on the site, his father and neighbours told three visiting magistrates that they were worried about dangerous boat traffic replacing their fishing. Franca's dad ferry his two grandchildren to school every day. Tauiry neighbors cross the river daily to harvest babassu cocoas. Alberto Akama from the Emilio Goeldi Museum (funded by the government) warns that the biodiversity of the river would suffer as well if the blasting destroys the rare rapids where endangered fish gather and turtles breed, while river dolphins feed. The Brazilian environmental agency Ibama has authorized blasting during the non-sensitive reproductive and migration seasons. The Transport Infrastructure Agency DNIT has said that teams will try to scare away animals from rocks before blasting. The benefits of cleaner and cheaper freight are far greater than any disadvantages, according to advocates such as Governor Helder Barbalho from Para state. He said that the state of Para believed it was possible to reconcile economic development with environmental preservation. The Brazilian government forecasts that the Araguaia Tocantins Riverway will be able to transport 20 million metric tonnes of corn and soya beans each year from northern river ports, reducing long, pollution-filled truck trips. The impact of emissions is however not as simple. Delegations will discuss the issue in Belem, 500 km (300 miles) downstream, during the United Nations COP30 Climate Summit in November. Brazil's primary source of greenhouse gas emissions is deforestation. Each year, vast tracts of Amazon rainforest and Cerrado savannah adjacent to the Amazon are cleared for farms and ranches. The Matopiba area around the Araguaia River and Tocantins River is the fastest-growing farm frontier. This trend can only be encouraged by cheaper shipping. Maria de Sousa is one of many women who work in Tauiry to harvest babassu palms, crack them open, and make flour and cooking oil from the coconut meat. She said that their way of living has already been threatened by farms that are encroaching on their land. She said that neighbors have poisoned the coconut palms in the area as they expand their farms and ranches. This has forced the women to go across the river to fill bags with small coconuts. Sousa said, "If they open up the waterway we won't have the ability to collect coconuts." "They call the babassu a plague, but to us coconut crackers it's survival." The Matopiba grain boom is largely due to new infrastructure built in Brazil's northern rivers ports during the last decade. Thiago pera, a logistics expert, says that river barges can be 60% cheaper than road freight when it comes to medium and long distance shipping. Researchers from the Climate Policy Initiative in Brazil, a think-tank, found that investments in less polluting transport infrastructure, such as rails and waterways, can lead to indirect emissions, by encouraging deforestation for farmland. CPI, for example, found that a proposed grain-export railway, the Ferrograo would reduce about 1 million tonnes of direct emissions, by taking trucks off of the road, but also add 60 million tons in indirect emissions, by expanding Brazil's agricultural frontier. The fear of displacement for the communities who are trying to stop the proposed blasting along the Tocantins river is palpable. Ademar De Souza, a community leader, said: "We will lose space on river to barges carrying iron ore & agricultural goods." "We are not certain about the future." (Reporting and editing by Brad Haynes, Diane Craft and Adriano Machado)
Argentina's state airline company cuts staff, paths, passenger advantages ahead of possible sale
Argentina's state airline company, Aerolineas Argentinas, is slimming down for a capacity sale, shedding 13% of its staff, cutting moneylosing domestic paths and even removing snacks formerly readily available to guests, according to sources and documents seen . The cutbacks, a lot of whose information were previously unreported, become part of a backdoor effort to cut the airline company's problem on the state and lure personal financial investment. The drive is progressing, despite the fact that libertarian President Javier Milei's strategies to privatize the company have actually generated pushback. The provider, with Argentina's blue and white colors, is a major test case of Milei's promarket reforms, which are yanking South America's secondlargest economy in a sharply various instructions after years of huge federal government. They have actually enhanced the state's finances, but stunted financial growth and pushed up hardship.
Reuters spoke to 10 company executives, authorities, pilots, airline company workers and union members, and saw a memo on the strategies to simplify the airline company for sale.
The drive brought in hit operating results for Aerolineas in 2024, a senior business source stated ahead of the airline's release of full-year outcomes next week. Part of that shows the double-digit decrease in personnel targeted in the earlier document seen .
Our task is to get (Aerolineas) in order, the senior source stated, adding that the carrier intended to operate more like its personal counterparts.
That method, when the time comes and the federal government allows its sale, the company is more appealing.
In July, Aerolineas made a profit for the very first time in seven years, information shown Reuters revealed. Milei, a brash financial expert, took workplace in late 2023, pledging to shake up Argentina's subsidy-heavy economy with chainsaw cuts. He has faced pushback in Congress from privatizing Aerolineas outright, however is figured out to press his strategies through. His government has actually threatened to close the airline if it can not be privatized.
Either it is shut, to cut the deficit, or it is privatized, but it will not stay in the hands of the federal government, Milei informed local radio in November. The administration claims the airline has depleted federal government coffers by $8 billion since 2008 when it was put back in the hands of the state after a previous privatization in the early 1990s under Milei's idol, then-President Carlos Menem.
The transportation secretariat delayed remark to Aerolineas, which did not respond to requests for comment.
' LABOR IS OUR ONLY WEAPON'
The procedure to simplify the company involves cutting loss-making paths, freezing wages, using buyout programs and shedding agreement employees, six airline staff members informed Reuters. Even a modest food offering for guests dealt with the chopping block.
The airline company has actually cut its in-flight snack alternatives, conserving the firm more than $500,000 a year, the senior airline source stated, as the company took a cue from American Airlines which notoriously cut an olive from each salad served in very first class in the 1980s to lower expenses.
Aerolineas now provides just one dessert in executive class and has actually cut a cereal bar for economy guests, the senior business source added.
Unions and Milei's political opponents have actually fought back, with protests at significant airports damaging flight in current months, causing flight cancellations and delays. In December, Buenos Aires province's opposition guv said he would oppose any attempt at privatization.
Our labor is the only weapon we have, stated veteran Aerolineas pilot Juan Pablo Mazzieri, who sports a tattoo of the airline company's logo design, an Andean condor, on his shoulder. We don't. like doing it, but we're going to cause delays and. cancellations.. Milei argues that the carrier needs to end up being more competitive. His administration looked to deregulate the sector, enabling. inexpensive providers to increase operations and press an open skies. policy to enable foreign competitors to enter the market.
COURTING SUITORS
Milei has actually promoted selling off Aerolineas in one go. Undoubtedly, the company's CEO, Fabian Lombardo, told local radio that. a number of international airline companies had expressed interest. So far. those talks have remained informal, sources stated.
The only competitor to openly state interest is holding. business Abra Group, which manages Colombia's Avianca and. Brazil's Gol.
Abra is still conducting due diligence, and it stays. uncertain what an acquisition of Aerolineas would appear like,. Abra's chief industrial officer, Joe Mohan, informed an industry. conference in Dallas in November.
Aerolineas could be a tough sell, analysts cautioned. It would be much easier for someone to accompany a percentage. ( stake), the Aerolineas senior source said, pointing out the strategies of. German airline company Lufthansa to acquire a 41% stake in. Italian state provider ITA.
Still, Aerolineas has yet to bring banks and advisers on. board, according to the source, due to the fact that it requires more clearness on. the federal government's strategy.
Milei's Plan B might be offering the airline to its. employees, ridding him of both the firm's monetary headache and. its employees, whom he thinks about combative. Aerolineas states the. labor conflicts have actually cost the carrier millions of dollars.
The company has cancelled worker perks, such as payment. for commuting time, complimentary flights, dollar-based bonus offers and additional. vacations - which were all coming at the expenditure of poor. Argentines, according to the government.
A number of union leaders, however, state workers taking over the. firm was a non-starter.
The unions argue Aerolineas serves a social purpose beyond. its balance sheet, in a country that is 5 times the size of. France and which extends from the Antarctic to tropical jungle. in the north. Its cities are far-flung and transport links are. limited.
Since the start of the cuts, that included a government. aid on aircraft tickets, domestic travel in Argentina has. fallen 9%, information shows.
We're seeing nearly half the variety of flights we did a. year earlier, said Marcelo Austi, an Aerolineas gate representative at. Buenos Aires' regional Aeroparque airport. That's a massive. distinction..
(source: Reuters)