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• Brazil planemaker Embraer hopeful about fresh US sales despite tariffs

  The CEO of Embraer believes that the planemaker can sell its E2 regional aircraft to a U.S. airline, but acknowledges tariffs on Brazilian products may complicate efforts in securing a first order. Last week, President Donald Trump lifted a tariff of 50% on Brazilian aircraft imported to the United States. However, a 10% tax was imposed by April. Embraer tried for years to convince U.S. carriers that its E195E2 was a "small narrow body" aircraft which could complement larger single-aisle planes. However, it has not been able to secure an order from its No. 1 market. Embraer has been trying to sell its E195-E2 as a "small narrow-body" that could complement the operation of larger single aisle jets, but it has failed to score an order in its No. Francisco Gomes Neto, CEO of the company, said on Tuesday: "We think it's (possible)." The additional cost makes it more difficult. We have been speaking to potential clients, but a zero-rate would certainly make things easier. Tariffs are added to the difficulties Embraer faces already in cracking this part of the U.S. Market due to a mismatch in the weight of aircraft and restrictions within pilot union agreements. Embraer’s first-generation E175E1 smaller jet is essential for regional routes in the United States and there is no substitute. The E2 family is in direct competition with the Airbus A220, which is flown by airlines such as Delta or JetBlue. Airbus has an Alabama assembly line for this plane. The Brazilian company has advocated for a return of zero-tariff regulations for the aviation and aeronautics industries, particularly after a provisional agreement between the U.S. "If Boeing’s archrival will have a zero-rate, why do we, who are not even in competition with them, face 10%?" Gomes Neto referred to the competition between Airbus, which is based in the United States, and Boeing. "It's not very logical." Embraer's pitch for tariff relief includes a $500 million U.S. assembly line for its KC-390 airlifter, should the country decide to purchase the military jet, which competes with Lockheed Martin's C-130 Hercules. Embraer's pitch included a $500-million U.S. Assembly Line for its KC-390 Airlifter, if the country decided to purchase the military aircraft, which competes against Lockheed Martin's C-130 Hercules. Gomes Neto told reporters that he had recently made the case for his "business opportunity" to senior U.S. government officials. The executive said that Embraer was working with a partner "relevant" to introduce KC-390 to the country but refused to identify it. (Reporting and editing by Christian Plumb, Rod Nickel and Gabriel Araujo)

• Cathay Pacific orders another 14 777X jets; half-year profits tick higher

  Hong Kong-based Cathay Pacific Airways ordered 14 additional Boeing 777-9 aircraft on Wednesday and reported a 1% rise in its first-half profits on the backs of increasing passenger numbers, lower gasoline prices and a stable cargo performance. The order for the planes exercises options that were secured by Cathay Pacific Airways as part of its 2013 order of 21 next-generation wide body jets. It also adds the option to buy another seven aircraft in the future. Cathay stated that the 14 jets were listed at $8.1 billion but had received significant discounts as is standard for major airlines. Boeing's long-delayed 777-9 - the latest version of Boeing's 777 – hasn't yet been certified by U.S. Federal Aviation Administration. Boeing CEO Kelly Ortberg stated last month that the model was undergoing flight tests and the planemaker hopes deliveries will begin next year. Cathay announced in March that it expects to deliver its first 777-9 in early 2027. The airline reported a profit of HK$3,65 billion ($465m) for the first half of 2018. However, it warned that there was uncertainty in the cargo market as well as continued challenges with its low-cost carrier HK Express. Reporting by Lisa Barrington from Seoul, Sameer Manekar from Bengaluru and Jamie Freed and Sonia Cheema editing.

• New York Times Business News - August 6, 2018

  These are the most popular stories from the New York Times' business pages. These stories have not been verified and we cannot vouch for the accuracy of these reports. ESPN, a Walt Disney company, and the NFL have struck a deal that gives the NFL a 10% stake in the network. ESPN will also acquire the NFL Network as well as certain RedZone Channel Rights. Rupert Murdoch and U.S. president Donald Trump agreed to delay the deposition of the media mogul in Trump's $10 Billion defamation suit against The Wall Street Journal, until a judge rules upon the newspaper's motion for dismissal. Spirit Airlines pilot Dominic Cipolla (40) was arrested in July at the Louis Armstrong New Orleans International Airport and accused of stalking two minors. He was removed from duty. After the termination of a Moderna bird-flu vaccine contract worth $600 million in May, U.S. Secretary of Health Robert F. Kennedy Jr. cancelled nearly $500 million dollars in grants and contracts for mRNA vaccines.

• Air Canada flight attendants have approved a strike order

  Air Canada flight attendants voted 99.7% for strike action, their union announced on Tuesday. This could mean that they can walk off the job this month. In a statement, the Canadian Union of Public Employees announced that it may give a 72 hour strike notice as soon as 16 August after negotiations with the airline reached an impasse in July. Strike votes are a precursor to legal job actions, but they do not mean that flight attendants must go on strike. The union represents more than 10,000 flight attendants working for Air Canada, including its leisure service Air Canada Rouge. Air Canada did not respond to a request for comment immediately. Wesley Lesosky said in a press release that "Flight attendants had a chance weigh in and tell company it's now time to negotiate seriously." Flight attendants from Canada and the United States want higher pay and compensation for their entire time on the job. They are challenging contracts which only pay for the time spent in the air, but not for the time they spend arriving before boarding. Flight attendants with United Airlines rejected an agreement tentative for a new contract in late July, arguing that it didn't go far enough.

• US wants to rename UN Aviation Program over 'gender.'

  As the Trump administration focuses on diversity policies in advance of a gathering of high-level aerospace regulators this fall, it wants to rename a UN Aviation Agency's "gender program" that encourages women's participation in aviation and defund it. In a paper published ahead of the U.N. agency’s triennial meeting, which begins on September 23, the U.S. suggested that the International Civil Aviation Organization's Gender Equality Programme be renamed the Empowerment Program for Women. "In order to remove ideological term 'gender ,'",," the U.S. stated. The agency also requested confirmation from the secretariat that "no regular contributions budget" will be used to fund the program with the current name. The Gender Equality Programme of ICAO aims to promote equality in a sector where, for example the vast majority pilots and aeronautical mechanics are men. The paper of July 30 states that "the United States acknowledges future personnel shortages, including future needs for highly-trained professionals" in the aviation industry. "However we do not support any programs that give preference based on gender or other characteristics, other than individual merit." In addition to the aviation industry, the Republican president's administration has now made it a priority to eliminate any policy that supports diversity. The newspaper comes at a time when Trump has nominated former Delta Air Lines pilot Jeffrey Anderson as the U.S. Ambassador to the Montreal-based organization, a move that is opposed by a large airline pilots union. Trump released an executive memo earlier this year directing his administration assess and undo diversification initiatives in aviation safety roles. The Federal Aviation Administration reinstated "Notice to Airmen", reversing a decision made by the former president Joe Biden, who renamed NOTAM to include "all aviators". The paper reported that the Trump administration wants to rename ICAO "to focus on the perspectives and needs of women." The Federal Aviation Administration sent requests for comments to the U.S. Department of State which did not respond immediately. ICAO refused to comment. The agency was formed in 1944 after the United States invited over 50 allies to create a common air navigational system. (Allison Lampert, Montreal; David Shepardson, Washington; David Holmes' editing)

• Frontier Group reports bigger than expected Q3 loss due to soft domestic demand

  Frontier Group, the parent company of discount airline Frontier Airlines, announced a larger-than-expected third-quarter loss on Tuesday due to a softening domestic travel market. This caused its shares in early trading to drop 9%. In April, several major U.S. airlines, including Frontier Airlines, revised their financial projections, citing the uncertainty caused by President Donald Trump's tariffs and cuts to government spending, which prompted consumers to reduce travel plans. Budget-conscious travelers are still cautious despite the fact that airline executives and analysts claim there is a stabilization in demand. This year's summer season, which is traditionally the most profitable for the industry, has been underwhelming. The low demand for economy seats forced airlines to cut fares. LSEG data shows that the carrier's third-quarter adjusted loss will be between 26 and 42 cents per share, compared to analysts' estimates of 11 cents. The executives are betting on the fact that the capacity reductions this year will improve airfare and pricing power. Frontier expects that its third quarter capacity will fall between 3% and 5% compared to the same period last year. Barry Biffle, CEO of Frontier Markets, said that the balance between domestic supply and demand is expected to improve over the next few months. It reported a loss of 31 cents for each share during the quarter ending in June. This compares to a profit of 14 cents per shares a year ago. Analysts predicted a loss between 27 and 30 cents. The total revenue dropped 4.5%, to $929.12 million. This was lower than the $946.12 millions expected by Wall Street. Reporting by Shivansh Tiwary from Bengaluru, and Doyinsola Oladipo from New York. Editing by Shilpa Majumdar.

• Frontier Group reports bigger than expected Q3 loss due to soft domestic demand

  Frontier Group, the parent company of discount airline Frontier Airlines, announced a larger-than-expected third-quarter loss on Tuesday due to a softening domestic travel market. This caused its shares in premarket trading to drop 3%. In April, several major U.S. airlines, including Frontier Airlines, revised their financial projections, citing the uncertainty caused by President Donald Trump's tariffs and cuts to government spending, which prompted consumers to reduce travel plans. Budget-conscious travelers are still cautious despite the fact that airline executives and analysts claim there is a stabilization in demand. This year's summer season, which is traditionally the most profitable for the industry, has been underwhelming. The low demand for economy seats forced airlines to cut fares. LSEG data shows that the carrier's third-quarter adjusted loss will be between 26 and 42 cents per share, compared to analysts' estimates of 11 cents. The executives are betting on the fact that the capacity reductions this year will improve airfare and pricing power. Frontier expects to see a 3%-5% decline in its third quarter capacity compared to the same period last year. Barry Biffle, CEO of Frontier Markets, said that the balance between domestic supply and demand is expected to improve over the next few months. It reported a loss of 31 cents for each share during the quarter ending in June. This compares to a profit of 14 cents per shares a year ago. Analysts predicted a loss between 27 and 30 cents. The total revenue dropped 4.5%, to $929.12 million. This was lower than the $946.12 millions expected by Wall Street. Reporting by Shivansh Tiwary from Bengaluru, and Doyinsola Oladipo from New York. Editing by Shilpa Majumdar.

• Jamco, a Japanese airline cabin manufacturer owned by Bain, targets acquisitions of premium seats

  Executives at the company said that under Bain Capital's new ownership, Japanese aircraft interiors maker Jamco Corporation wants to take advantage of a global shortage in new plane seats. The U.S. private-equity firm that bought Jamco for $700m this year also plans to make acquisitions worldwide, including premium cabin products for Airbus and Boeing widebody aircraft, which it supplies. As commercial aviation recovered from the pandemic, suppliers such as Jamco, who make galleys and lavatories primarily for twin-aisle aircraft, faced shortages of parts, labour and costs. Nick Gattas is a managing Director in Bain’s Asia Pacific Private Equity team. Gattas said that Bain sees potential to integrate Japanese suppliers into Jamco further down the supply chains. Jamco delisted from Tokyo Stock Exchange on July. Bain's acquisition of the company is expected to close fully in September. ANA Holdings, Itochu and ANA Holdings were Jamco's largest shareholders. The company also announced on Tuesday a new management team, headed by Kate Schaefer. She is currently a senior advisor at Bain Capital, and was previously a senior vice president of Boeing Global Services. Jamco is interested in premium seats at a time when planemakers struggle to produce airliners quickly enough to meet the demand. The delays in installing new seats is a major bottleneck that has many airlines impatiently waiting for new jets. Bain wants Jamco to resume selling business class seats in 2023, after the company stopped accepting new orders due to high demand. Schaefer stated that the interest shown by airlines was overwhelming. Bain sees an opportunity with the growing need for airlines to upgrade their ageing aircraft that they are unable to retire because of a global jet shortage. We see billions being spent retrofitting planes 10 years or older with first class, premium economy and business class. Gattas stated that this is a great opportunity for companies like Jamco. The global trade war has affected the aerospace industry, causing decades of duty-free civil aircraft trading to be thrown into disarray. Last month, the United States and Japan agreed to a trade agreement that imposed a 15% tariff for exports of Japan into the United States. Gattas stated that Jamco products going to Boeing will be subject to a tariff. As Boeing exports many aircraft, they are eligible for duty drawbacks. This is a mechanism that allows duties paid on imported products to be refunded when those goods are exported. Gattas stated that the issue of who should be responsible for the tariffs' impact on the U.S. airline industry is "currently a hot topic" of discussion among Boeing suppliers. Bain is involved in a number aviation investments. Virgin Australia, for example, was rescued from administration by the private equity company in 2020. (Reporting and editing by Lisa Barrington, Miyoung Kim, and Jamie Freed).

• New pilot program could see the US require bonds of up to $15,000 for certain tourist visas

  A U.S. notice on Monday said that the U.S. may require bonds of up to $15,000 for certain tourist and business visas as part of a pilot program starting in two weeks. The new program is intended to crackdown on visa overstayers. According to a Federal Register announcement, the program allows U.S. consular officials to decide whether to charge bonds to visitors from countries that have high rates of visa-overstays. The notice stated that the bonds could also be applied to those coming from countries with insufficient screening and vetting data. Donald Trump, the U.S. president, has made illegal immigration the central focus of his administration. He has increased resources to secure the border as well as arresting those who are in the U.S. without authorization. In June, the Republican president issued a ban on travel that prevents citizens of 12 countries from entering the U.S. for national security reasons. The government's notice stated that the new visa program will be in effect from August 20 and last approximately one year. The U.S. launched a pilot program similar to this in November 2020, during the last few months of Trump’s first term, but the program was not fully implemented because the global travel drop associated with the COVID-19 epidemic, according to the notice. (Reporting and editing by Franklin Paul, Toby Chopra, Ted Hesson)

• Joby, an electric air taxi company, acquires Blade Air's passenger service

  Joby Aviation announced Monday that it will purchase Blade Air Mobility's helicopter ride-share business, which includes passenger services, for up to $125 Million. Joby is working to accelerate the deployment of commercial air taxis. Blade's medical transplant division will not be part of the deal. It will remain a public company rebranded Strata Critical Medical. However, Joby will partner with Blade on medical transport. Joby is working hard to get its electric vertical takeoff-and-landing aircraft, or eVTOLs, certified by the Federal Aviation Administration. Joby CEO JoeBen Bevirt stated that the company was on track to start FAA Type Inspection Flight Testing early next year. This is a crucial step before it could begin commercial service. Bevirt said the Blade deal provides Joby with existing customers, takeoffs and landings locations, and a decade's worth of operating experience. This is "a launchpad, a catalyst for really growing the experience" Blade has built. Bevirt stated that "clean, quiet aircraft will unlock a large number of new takeoffs and landings locations." Blade carried more than 50,000 passengers from 12 urban terminals in 2024, including JFK Airport New York, Newark Liberty Airport and various Manhattan locations. Blade's passenger operations, led by Blade CEO Rob Wiesenthal, will continue as a fully-owned subsidiary of Joby. "We fly people by helicopter, vertical transportation, than any other company around the globe. "With the combination of infrastructure, flyers, routes, and a globally-recognized brand, it's really to the customer...more of an asset exchange," Wiesenthal stated in an interview. Wiesenthal said that there will be a phase of transition where the combined company operates helicopters and Joby planes. It will eventually transition to only operating Joby electric air cabs. The deal includes the entire passenger business of Blade, including its U.S. operations and European operations. Joby agreed to pay Blade $125 million under the agreement. This includes $35 million linked to certain performance benchmarks and the retention of key employees. Reporting by David Shepardson, Editing by David Goodman, Mark Potter

• PostNL confirms guidance after posting surprise operating profit for Q2

  Dutch postal company PostNL announced a surprise operating income for the second quarter on Monday and confirmed its full year guidance, citing progress made in strategic initiatives as well as benefits from targeted yield-measures. PostNL, a company that delivers letters and parcels across the Netherlands and Belgium, reported a normalised operating loss of 11 million euros (12.74 million dollars) for the third quarter. This is down from 18 million euros a year ago. Five analysts polled by the company had predicted a loss on average of 3 million euro. In a press release, CEO Pim Berendsen stated that "other measures to adapt our operation have resulted into efficiency improvements and planned cost savings at both Parcels and Mail and the Netherlands." PostNL, which is active in Belgium, The Netherlands, and Luxembourg, has confirmed that it expects its normalised annual operating profit to remain the same as last year. It did, however, flag a goodwill impairment of 40 million euros on its Dutch Mail business after the Dutch Government rejected its request for a financial contributions for 2025-2026. The impairment is excluded in the normalised results. PostNL announced that it would not be paying an interim dividend, but will still pay one over the course of the year. Reporting by Olivier Cherfan, Gdansk. Editing by Milla Nissi.

• Wall Street Journal, August 4,

  These are the most popular stories from the Wall Street Journal. These stories have not been verified and we cannot vouch their accuracy. China has limited the flow of minerals critical to Western defense companies, delaying production. This is forcing the companies to search the globe for the stockpiles needed to manufacture everything from bullets and jet fighters. Amphenol is close to a deal worth approximately $10.5 billion including debt for the broadband connectivity and cable division of CommScope Holdings. Boeing defense workers will strike on Monday after the union representing 3,200 workers in the St. Louis area rejected the latest contract offer from the company. Delta faces criticism for using AI in setting airfares. However, the airline insists that it does not use personal information to target offers. This is after lawmakers expressed concerns over the technology. (Compiled by Bengaluru Newsroom)