Latest News
-
US FAA to close satellite offices Washington
The U.S. Federal Aviation Administration (FAA) plans to cancel the leases of its satellite offices located in the Washington, D.C. area. It will consolidate operations and move headquarters staff into the building housing the U.S. Transportation Department. FAA Administrator Bryan Bedford stated in an email previously unseen by staff that this move would improve the collaboration. Bedford wrote, "We'll work more efficiently together than if we were spread out over six different offices." This will reduce operating costs significantly and improve collaboration. Bedford announced that the dates of the office moves will be finalized soon. USDOT announced on Tuesday that it would relocate thousands of FAA workers from its headquarters in Washington to the main office of the department. It also plans to consolidate other agency systems and IT. USDOT is a group of agencies that includes the FAA. The Department plans to relocate several thousand employees who work in the Orville and Wilbur Wright Headquarters buildings to its department headquarters located southeast Washington. The question remains as to how many FAA departments -- possibly purchasing, IT and human resources -- will be merged into USDOT, and whether the consolidation will lead to workforce reductions. Nearly 53,000 employees work for USDOT. The FAA is the largest department. This week, Transportation Secretary Sean Duffy informed employees that the department would begin retiring legacy systems in order to embrace advanced technologies and "streamline processes, consolidate administration functions, and modernize infrastructure" as part of its efforts to "modernize our infrastructure, streamline our processes, and consolidate our administrative functions." Duffy stated that the FAA building was in a serious state of disrepair. Employees were unable to drink the water. Duffy told reporters that it was important to have all the employees working together under one roof. He suggested that some FAA employees may not want to move and "become an entity unto themselves, not responsive to anyone in government." The Trump administration is consolidating office space and reducing the federal workforce. (Reporting and editing by David Shepardson)
-
Trump officials confirm that the end of US low-value packages tariff exemption is permanent.
Officials from the Trump administration said that on Friday, the U.S. tariff-free package shipment exemption will end permanently. However, there is a six month transition period during which shippers of postal services can choose to pay a flat rate of $80 - $200 per package, depending on their country of origin. After 12:01 am EDT (0401 GMT), the U.S. Customs and Border Protection Agency will begin collecting normal duties on all parcel imports from around the world, regardless of their value. This move expands on the cancellation by the Trump administration of the de minimis exception for shipments coming from China and Hong Kong. Peter Navarro, White House trade advisor, told reporters that President Trump's closing of the deadly de minimis loophole would save thousands of American life by limiting the flow of narcotics. (Reporting and editing by Leslie Adler; Andrea Shalal and David Lawder)
-
BNSF faces a lawsuit from the US EEOC alleging hostile treatment of women at Nebraska railroad yard
On Thursday, a federal appeals court revived an U.S. Equal Employment Opportunity Commission filed a lawsuit against BNSF Railway accusing them of allowing a severe, pervasive and hostile work environment towards women in a western Nebraska railroad yard. The 8th U.S. The 8th U.S. Circuit Court of Appeals, Omaha, said a judge dismissed wrongly claims that BNSF sexually harassed Rena Merker, a train conductor, and other female employees at the Alliance Railyard from 2011 until 2022. The allegations include sexual advances, derogatory remarks about women's body, sexually explicit graffiti on locomotives and at the railyard, the soiling of bathrooms for unisex, and the placement of a dead bird on the toilet of a female train conductor. The EEOC accused BNSF of Title VII of Civil Rights Act of 1965, which prohibits discrimination in the workplace based on sex. BNSF belongs to Warren Buffett and his conglomerate Berkshire Hathaway. Railroads and lawyers in Fort Worth, Texas did not respond immediately to comments. Circuit Judge Lavenski Smith, writing for a panel of three judges, said that the EEOC claims were plausible and the trial judge shouldn't have required the agency show that the same harassment was experienced by female workers at the same time. The appeals court rejected the judge’s conclusion that the sexist remarks were "sporadic", and the graffiti was excused because of its "social context", which is a railyard where there are mainly male workers, not a professional office. Smith wrote that "viewing the evidence most favorably for the EEOC," "we conclude that a jury could reasonably find that Merker had been subjected to harassment which was objectively severe, pervasive and widespread." The EEOC has not responded to comments immediately. Merker died on January 20, 2024, but the case continues. The appeals court sent it back to U.S. district judge Brian Buescher of Omaha. Berkshire wasn't a defendant and Buffett’s Omaha-based conglomerate is minimally involved in the day-today operations of its businesses. The case is EEOC v BNSF Railroad Co, 8th U.S. Circuit Court of Appeals No. 24-2082.
-
FAA: Arriving flights at Newark Airport were halted by a telecom issue
The Federal Aviation Administration halted arriving flights for over an hour at Newark Liberty International Airport on Thursday due to a telecom frequency issue. This is the latest technical problem to cause delays at the airport in New York City. Flightradar24 is a flight-tracking site that reports flights to Newark, the hub of United Airlines, are currently suspended. Flights already in the air are held, but the departures are unaffected. The FAA reported that delays are increasing as flights resume following a 75-minute pause. In April and May, there were two major communications failures for the air traffic controllers in Newark. This caused hundreds of flights to be disrupted. The FAA cut flights at Newark in May after a series major disruptions. Has proposed to extend these through Late October Last year, the FAA moved control of Newark's airspace from Newark to Philadelphia in order to deal with staffing issues and congestion in New York City. The FAA has since upgraded its communications technology in order to prevent similar incidents, but is still working on adding air traffic controllers. (Reporting and editing by Diane Craft; David Shepardson)
-
India extends IndiGo's leasing agreement with Turkish Airlines
India has allowed IndiGo, India's biggest airline, to continue leasing from Turkish Airlines two planes for another six-month period. This is a change from a May decision when New Delhi had told IndiGo that the agreement must be terminated by August 31, 2015. A source with knowledge of the situation said that the new extension will expire on February 28. IndiGo said that the extension would help it cut costs caused by geopolitical constraints. The airline was referring to a ban on airspace imposed earlier this year by Pakistan against Indian airlines, which led to longer routes as well as higher costs. IndiGo said that the extension would be subject to the conditions set by India's aviation regulator Directorate General of Civil Aviation, which was not available outside of regular business hours. IndiGo confirmed that it had requested an extension. IndiGo's spokesperson stated in a press release that "this extension will provide much-needed stability and continuity in operations." IndiGo's partnership Turkish Airlines with Turkish Airlines has been criticised in India since Turkey supported Pakistan in the recent conflict between two South Asian neighbours. In May, it was reported that rival Air India had also been irritated by the tie-up and lobbied for the Indian government's halting of the partnership. In May, the DGCA announced that it had rejected IndiGo's request to extend its contract by six months and only approved three. IndiGo's new extension comes after the airline reported a slower revenue growth in its first quarter, due to border tensions with Pakistan and an Air India crash that killed a pilot. Turkish Airlines has leased two Boeing 777 wide-body aircraft to IndiGo since 2023. The aircraft are equipped with crew and pilots. IndiGo can now carry more passengers on its narrow-body aircraft than it did before, as the aircraft are currently operating on Delhi-Istanbul or Mumbai-Istanbul routes. Reporting by Abhijith Ganahapavaram Editing Mark Potter
-
Druzhba restarts as the end of driving season approaches
The oil prices fell on Thursday due to the lower demand for fuel in the United States at the end the summer travel period and the restarting of Russian oil supplies through the Druzhba Pipeline. Brent crude futures dropped 46 cents or 0.7% to $67.59 at 12:04 pm. ET . U.S. West Texas Intermediate crude futures (WTI) were down 57c, or 0.9% at $63.58 per barrel. The long Labor Day weekend in the United States ends summer driving. The U.S. gasoline demand is expected to fall, even though crude oil supplies are rising due to OPEC+'s plan to increase September output by 547,000 bpd. Ritterbusch and Associates stated in a report that the mismatch would cause oil inventories rise. They said that as the summer fades into the fall and the gasoline demand drops, refiners will switch to the cheaper winter grade product. After a disruption caused by an attack on Russia by the Ukrainians last week, Russian crude oil supplies to Hungary have resumed through the Druzhba Pipeline. This was announced Thursday by MOL (Hungarian Oil Company) and Slovakia's Economy Minister. After President Donald Trump doubled the tariffs on Indian imports, they could reach 50%. Tony Sycamore, IG's market analyst, said that India is likely to continue buying crude oil from Russia in the near future. This should help limit the impact of new tariffs on the global supply. Official data released on Wednesday showed that U.S. crude inventory levels fell more than anticipated last week. This was a sign of a strong demand and helped to support prices. The data released on Wednesday led to a 1% increase in both crude benchmarks. Russia and Ukraine also intensified their attacks on the energy infrastructure of each other. Ukraine officials reported that Russia had launched a massive drone strike on the energy and gas transportation infrastructure in six Ukrainian regions over night, Wednesday. The attack left more than 100,000 Ukrainians without electricity. (Additional reporting from Sam Li in Beijing, Siyi Liu and David Gregorio in Singapore. Editing by Louise Heavens and Ros Russell)
-
Sources say that the Ust-Luga port in Russia will operate at only half its capacity this September due to pipeline damage.
Two industry sources said that the Ust-Luga oil terminal in Russia will only be able to export 350,000 barrels of oil per day, which is about half its normal capacity, due to damage caused by Ukrainian drones on pipeline infrastructure. This disruption shows that recent Ukrainian attacks on key energy facilities have caused Russian exports to be affected and could lead to supply disruptions. Drone strikes in Russia's Bryansk Region earlier in August caused problems at the Unecha pumping stations. Unecha is an important transit point for crude oil heading to Ust-Luga. The Druzhba Pipeline, which supplies Belarus to Slovakia and Hungary, was also affected by the strikes. Slovakia announced on Thursday that the first supplies through the pipeline had resumed. Sources did not specify the pipeline that was damaged, but confirmed that repairs were underway. However, there is no timeline set for complete restoration. Sources said that the fall in Ust-Luga's capacity would result in a diversion of oil to Russia's Primorsk & Novorossiisk port. This could help limit export losses. The Russian authorities have not commented publicly on the extent of damage or the impact on export plans. Transneft declined to comment. Mark Potter, Editor (Reporting)
-
White House dismisses Surface Transportation Board member who regulates railroads
A White House spokesman confirmed that Robert Primus was fired as a Surface Transportation Board member. He did not agree with the agenda of U.S. president Donald Trump, the spokesman added. White House spokesperson Kush Desai stated that Robert Primus was fired from his post because he did not agree with President Donald Trump's America First agenda. The Administration plans to nominate in a short time new members who are more qualified to the Surface Transportation Board. Trump is purging bureaucrats from agencies that are not in line with his agenda. The railway regulators are evaluating the proposed $85 billion merger between Union Pacific and Norfolk Southern. Primus said earlier that he had rejected an email sent by the White House that terminated his position. He deemed it to be "legally invalid", and that "it would weaken the Board, and adversely impact the freight rail system in a manner that could ultimately harm consumers and the economy." In a social media post, he stated, "With all this in mind, my plan is to continue to discharge the duties I have as a Board member and, if prevented from doing so I will explore my options in court." The White House statement didn't address the proposed merger, or the legal questions surrounding termination. Surface Transportation Board has not responded to an earlier request for comments. Trevor Hunnicutt, Harshita Menaktshi and Mark Porter edited the article.
Boeing's CEO brought the company out of a nosedive but there are new challenges ahead
After taking over the company during Boeing's worst crisis in decades one year ago, Kelly Ortberg stopped its freefall. He faces new challenges, including ramping up jet manufacturing, revitalizing the struggling Defense and Space division, and returning profitability to the legendary planemaker. Ortberg had retired to Florida and was enjoying a comfortable retirement when Boeing's Board offered him the job of CEO at a company that was losing money and suffering from a damaged reputation.
After a midair panel blowout in January 2024 on a new MAX, the crisis deepened. This prompted his predecessor to leave and brought back memories of two deadly MAX crashes in 2018 and 2019. These crashes killed 346 people.
Ortberg promised to restore trust and stay close to the factories, as well as ensure Boeing met their commitments to quality, safety, and transparency. Boeing has had a series of successes since then: It has improved the efficiency and quality of the 737 line; it has navigated the trade policies of President Donald Trump; it has reached an agreement with the U.S. Department of Justice, to drop prosecutions over the crashes; and signed blockbuster deals for airplanes.
The stock of the company is up 39% compared to a year earlier, and has seen its biggest gains in recent months due to an increase in 737 production.
Boeing, however, is still losing money. It trails Airbus on the single-aisle aircraft market. It struggles to fix its space programs and its defense programs. Ortberg's first challenge is to increase production of the 737 MAX back to levels seen before the crisis, and then beyond. This will allow Boeing to replace this model with a future model.
The biggest risk that Boeing faces in the future is whether they become a great company or a mediocre one. Ron Epstein is an aerospace analyst at Bank of America.
Boeing refused to allow Ortberg to be interviewed.
CULTURE CHANGE
Ortberg is an Iowa native who spent years climbing the ranks of avionics company Rockwell Collins. He became CEO, and led it through a number of deals that resulted in aerospace firm RTX.
He retired in 2021.
Jans Timmers who worked directly for Ortberg at Rockwell Collins recalled Ortberg telling him, when dealing with an expensive program, "Put everything on the table and we'll deal with it."
"And that is what he does at Boeing right now," he said. Boeing, once hailed for its role in winning World War II and putting men on the Moon, had been associated with cutting corners, prioritizing profit over quality and misleading regulators.
Ortberg focused on fixing the basics, reducing defects, eliminating work that was out of sequence, and improving the overall build quality, rather than just pushing out more jets. "Give it a damn!" "Give a damn!" became one of Boeing’s core values under Ortberg. He introduced it to the employees in April. Alaska Airlines CEO Ben Minicucci said Ortberg was a great example of a leader who chose to be physically present in the factory, where he lived.
Minicucci stated, "They are walking on the floor and they feel what is going on." "That's a different experience than in the past."
TRUMP TURBULENCE
Ortberg had to deal with one of the most difficult challenges facing any CEO in the United States this year: managing Donald Trump. In February, the U.S. President publicly criticized Boeing for delays and cost overruns in the Air Force One Replacement Program. Trump and Ortberg celebrated a record-breaking widebody order with Qatar Airways in May, despite the tension. Ortberg, along with other aerospace leaders, worked behind the scenes to manage Trump's volatile policies on trade, which has largely spared new tariffs for the industry. Jeff Shockey is Ortberg's biggest hire. He was brought in to be Boeing's top advocate. Shockey has a long history as a political operative with experience in aerospace. Boeing requires Federal Aviation Administration (FAA) support to increase production and certify the new jets. It also needs continued federal funding to develop the F-47, named for Trump as the 47th President.
Richard Aboulafia, managing director of AeroDynamic Advisory, said: "It is impossible to imagine doing any of this without an experienced head at Boeing's Washington operation."
Ortberg's struggles have not been easy. Last year, he struggled to bring an end to a seven-week strike by 33,000 union workers who assemble Boeing jetliners along the West Coast. The strike deepened divisions within the company. Separately, 3,200 workers from a union that builds fighter jets began a strike on Monday. The company continues losing money - $643 millions through the first half year - and Ortberg pushed back certifications for the 777-9, and the 737 MAX smallest and biggest variants - the MAX 7 & 10 - to next year.
Ortberg now must prepare Boeing for a new plane launch this decade to reclaim market share lost by Airbus. Or risk being relegated as an after-runner for another decade.
Ortberg played down the importance of the upcoming year when asked during a recent earnings conference.
He said, "It is just one day at the time. Improve our performance, address issues we have, rebuild trust with our customers and end users of our product," he added. (Reporting from Seattle by Dan Catchpole; Editing by Joe Brock & Rod Nickel)
(source: Reuters)