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FAA issues directive on Boeing 737 circuit breaker problem
Federal Aviation Administration announced on Wednesday that it has issued an airworthiness Directive for all Boeing 737 MAX 8 and 8200 aircraft to address a "circuit breaker" issue which could cause a malfunction leading to excessively high cabin temperatures. The directive calls for the revision of the aircraft flight manual in 30 days so that the crew is aware of the?operational procedures' if an air conditioner malfunctions due to a circuit breaker trip. The FAA stated that the directive applies to 2,119 aircraft worldwide, including 771 U.S. registered airplanes. Boeing said it supported the directive it issued last week that mandated guidance. Boeing said that it was working on an engineering solution to eliminate this possibility. FAA reported that two incidents in flight where temperatures onboard the aircraft increased dramatically were recently reported. Boeing has said that the fault is in the ground wire of the air conditioning system. The FAA stated that the malfunctioning air conditioning system could lead to an "uncontrollable" excessively high temperature. This could result in injury or incapacitation to flight crew and passengers. Boeing stated that it expects a fix for the 737 MAX 7 or 10 to be available before certification. Southwest Airlines, the airline that was involved in one of the reported incidents said they are in close contact with the FAA and Boeing regarding the issue. They have also informed their flight crews on the correct steps to take to address the electrical fault.
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Qantas' first-half profits beat estimates due to strong travel demand
Qantas Airways, Australia's flagship airline and its budget offering both reported a?better-than-expected underlying profit? on Thursday. Qantas' first half was supported by a robust demand for its services across the domestic and international market, new overseas routes and the introduction of new aircraft. The company said that bookings will remain resilient in its network throughout the remainder of the year. Qantas’s domestic?unit reported a 5% increase in revenue, largely due to a higher capacity. Jetstar’s domestic division, a budget airline, posted a 38% rise in operating earnings. This helped the flag carrier of the country?report a first-half underlying loss before tax of A$1.46?billion ($1.04?billion), which was ahead of the Visible Alpha consensus of A$1.42 billion and the A$1.39?billion it posted in the previous corresponding period. Qantas also announced a'share-buyback of up A$150m and a interim 'dividend' of 19.8 Australian cents per share. ($1 = 1.4047 Australian dollars; Reporting by Sameer M. Manekar in Bengaluru, Editing by Shinjini G. Ganguli).
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Air New Zealand suffers a larger-than-expected loss and undertakes a strategic review
Air New Zealand announced?on Thursday that it would be conducting a strategic review of its business after reporting a?worse than expected first-half loss owing to engine maintenance delays and lower travel demand. Over the last few years, earnings for the flag carrier have been significantly reduced as global engine maintenance issues forced its aircraft to be grounded. The 'weaker recovery of travel demand, higher costs and a weaker recovery of the airline industry led to the first half-year loss in four years. Nikhil Ravishankar, Chief Executive Officer of Air India, said in his first result announcement since assuming the role in October: "We are undertaking a comprehensive business review to return the airline back to sustainable profitability." Air New Zealand's loss for the six-month period ended December 31 was NZ$59.38 ($35.38) million, a significant?amount?more than Visible Alpha's consensus estimate of a NZ$21.38 million loss. This compares to a profit of NZ$144million a year ago. The airline has not declared a?interim dividend and expects second-half earnings will be flat or 'weaker' than the first, as a result of?continued cost pressures from avionics and supply chains.
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FedEx must explain to consumers how they will receive tariff rebates, says US Treasury chief
FedEx must explain to the public how it plans to 'pass on any tariff rebates,' said U.S. Treasury Sec.?Scott Bessent after the global shipping firm sued for a refunded of emergency import duties ruled illegitimate by the U.S.?Supreme?Court. Bessent also questioned FedEx Chief Raj Subramaniam in an interview with NBC News on Tuesday evening, but provided no evidence that any wrongdoing had occurred. FedEx is a member of this business group, as are scores of other U.S. firms. FedEx filed suit in the U.S. Court of International Trade on Monday seeking a refund following a ruling by the Supreme Court last week that President Donald Trump exceeded his authority when he imposed sweeping emergency tariffs. French beauty group L'Oreal and British vacuum manufacturer Dyson, as well as contact lens manufacturer Bausch + Lomb, have all sued for refunds. Bessent, NBC's reporter, said that Subramaniam "should explain how he will get the money back to the consumers if he has passed on those costs," according to a transcribed version of the interview. Bessent said that the role of the company in the council was "very interesting" because China is the biggest payer of U.S. Tariffs, without going into detail. This statement contradicted an earlier report by the New York Federal Reserve that said Americans were paying almost all of Trump’s new tariffs. FedEx posted a?alert' at the top of their website to inform customers about the impact the court ruling could have on them. A spokeswoman from the company, when asked about Bessent’s comments, said: "If FedEx receives refunds, we will refund?the shippers who paid for those charges and to consumers." The exact timing of this and the process to request and issue refunds depends 'in part' on the future guidance provided by the government and court. Over $175 billion of U.S. tax collections could be refunded. Bessent told CNN on Sunday that lower courts would be responsible for any refunds following the Supreme Court's ruling. Bessent responded to NBC's question Tuesday night, "We will obey the lower court's ruling." Reporting by Susan Heavey and Lisa Baertlein, Los Angeles. Editing by Paul Simao.
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Profits of Spanish hotel chain Melia rise by 24% due to higher luxury rates
Melia, Spain's largest hotel chain, announced a 24 percent increase in profit for the full year on Wednesday, thanks to higher prices at its luxury resorts. Melia's yearly net income of?200.2 millions euros ($236million) exceeded analyst expectations by 151.23million euros, as predicted by LSEG. Melia reported that revenue per room increased by 5.4% in the past year. This is down from an 11% increase in 2024. However, room rate increases were more important to Melia's revenue than occupancy. Melia has been focusing on opening luxury hotels and expects the room rates in its Spanish resorts will rise by about 5%, according to CEO Gabriel Escarrer, last month. Spain, the company's main market, will help offset the weaker sales in the Caribbean. The world's second most visited country after France is on track to receive nearly 100 million visitors by 2026. Melia reported that bookings were up 11% compared to a year earlier, despite the fact that Spanish airport operator Aena stated on Wednesday it expected the number of passengers using its airports in Spain will grow at a lower pace than last. Melia's hotels in Cuba and Mexico may be affected by the economic?and?political?crises that are affecting those countries. Melia, Cuba's largest hotel chain, has closed three of the 30 hotels it operates in order to concentrate on more modern properties. The company stated that operations in Mexico have not been affected at all by the violence that broke out after the death of Mexican drug lord Nemesio seguera. However, it added that the outlook for the year 2026 may be affected short-term.
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Google will test new search results, a source claims as EU fines loom
Alphabet’s Google will soon begin testing changes to its search results in order to give competitors more prominence. A person with first-hand knowledge of the situation said this on Wednesday. The company is trying to avoid a fine from the EU for allegedly favoring their own services when searching for hotels, flights, and restaurants. Since it was accused of violating the Digital Markets Act in March last year, Google has made a number of proposals to appease rivals and EU regulators. After rivals complained about the insufficiency of these measures, Google has not implemented any of its proposals. Google is pitted against vertical search engines (VSSs) that are linked to specific sectors, such as airlines, hotels and restaurants. Source: Top-ranked RIVALS to be?displayed by default, source says Source: The previously unreported changes will display both VSS results and Google results by default. The list of vertical search engines will include hotels, airlines, restaurants, and transport services, all with data in real-time. Source: The changes are soon to be rolled out throughout Europe. Initially, they will focus on lodging searches, but later, flights and other services will also be added, she said, without giving further details. The European Commission refused to comment. These changes may help appease the European Commission, who enforces EU competition. The fines for Digital Markets Act violations can reach up to 10% of the company's annual global revenue. Google has been fined 9.71 billion Euros ($11.5 billion), or $9.71 billion, for antitrust violations in Europe. The EU's crackdown on Big Tech, which squeezes out competitors, has heightened tensions with the United States. A former European Commission official spearheaded a landmark digital services law that required online platforms to do much more to combat illegal and harmful content. Reporting by Foo Yeon Chee, Editing by Adam Jourdan & David Goodman
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Zelenskiy: Druzhba Pipeline repairs 'not so fast'
Ukraine's president?Volodymyr?Zelenskiy stated on Wednesday that despite the requests of the?European Union? and the protests from Hungary, repairs to the Druzhba Pipeline, which transports Russian oil to Eastern Europe?cannot be completed quickly. Since January 27, Ukraine has said that a Russian strike on pipeline equipment in western Ukraine was responsible for the suspension of Russian oil shipments to Hungary and Slovakia. Slovakia and Hungary blame Ukraine for the extended outage. Zelenskiy, a reporter, said that the Russians had destroyed the pipeline connecting the Black Sea port Odesa to Druzhba. "This isn't their first strike. They continue to attack the energy sector." The European Commission's Ursula von der Leyen stated that during her visit to Kyiv to mark the fourth anniversary since the beginning of the conflict between Russia and Ukraine, the EU is asking Ukraine to accelerate repairs. Zelenskiy stated, "They tell us to fix it but they know there has already been an attack on Druzhba." "Our people were hurt so that the system would work." ORBAN'S ACCUSATIONS Ukraine has continued to ship Russian oil across its borders despite the war. However, it stopped the transit of Russian Gas at the beginning of last year. Hungary accused Kyiv of intentionally delaying the restarting of the pipeline. The main route used to deliver Russian oil from Russia to Hungary and Slovakia has been since the 1960s. Hungarian Prime Minster Viktor Orban stated on Wednesday that the suspension was only political and Ukraine "prepared further actions". He said, "The Ukrainian government is exerting pressure on Hungary and Slovakia through an oil blockade." Ukraine did not respond immediately to his remarks. Orban and the EU have been at odds for many years over Ukraine. Orban has always maintained cordial relations with Moscow and refused to send arms to Ukraine. He also says that Kyiv shouldn't join the 27-nation EU. Attacks on NAFTOGAZ In recent months, Russia has intensified its attacks against Ukrainian power plants and the gas sector, causing severe power shortages. It also deprived Ukraine of nearly half its gas production capacity, forcing it to increase its imports from Europe. Hungary and Slovakia have threatened to stop emergency electricity exports into Ukraine due to the Druzhba conflict. On the request of U.S. president Donald Trump earlier this month, Russia agreed to take a temporary pause from its attacks. Zelenskiy stated that "Hungarians should appeal to Russians for an energy truce". Kyiv has repeatedly targeted Russian oil installations, including the Druzhba Pipeline section that runs through Russian territory. But it has also proposed a energy truce to Moscow. Ukraine's Naftogaz, the national oil and natural gas company, said on Wednesday that?60 Russian drones attacked its facilities to the north and east. Naftogaz released a statement saying that the strikes against gas storage and production facilities have been ongoing for two days. (Reporting and editing by Daniel Flynn and Aidan Lewis; Additional reporting by Anita Komuves, Budapest)
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Greer: US tariff rates could reach 15% or higher for some countries
U.S. trade representative Jamieson Greer said on Wednesday that the U.S. tariff rates for certain countries would rise from the newly imposed 10% to 15% or more, but did not name specific trading partners. Greer told Fox Business Network’s "Mornings with Maria” program that the Trump Administration does not plan to increase tariffs on Chinese products above current levels, as President Donald Trump is planning to visit China in the coming weeks. "Right Now, we have a 10% tariff. Greer stated that the tariffs would increase to 15% for some, then higher for others. "I think this will be in line" with other tariffs. Greer told Bloomberg TV that the White House is preparing a proclamation to raise temporary tariffs up to 15% "where necessary." Greer said that the White House was preparing a proclamation to raise temporary tariffs up to 15% "where appropriate." He added that foreign interests would want to lower the tariffs whenever the government increased them. People?are going sue us." NEW TARIFFS COMPATIBLE WITH EXISTING TRADE DEALS Greer said that the plan of the Obama administration to replace the emergency tariffs, which were struck down by the Supreme Court, with new duties and temporary tariffs, such as those under Section 122 of the Trade Act of 1974 (which went into effect Tuesday at 10%), is compatible with current trade agreements. He said that investigations into 'unfair trade practices' under Section 301 would be at the center of the replacement efforts, focusing on countries that have excess industrial capacity, employ forced labor in their supply chains, discriminate towards U.S. tech firms, or subsidize goods like rice, seafood, and other items. Greer stated that he, along with Treasury Secretary Scott Bessent, have raised the issue of excessive industrial capacity repeatedly with Chinese officials. He added that government-supported Chinese firms that are not profitable can continue to produce. He said: "I don't believe they will solve that problem completely, and that is part of the reason we need tariffs on China, Vietnam, and other countries with this problem." Greer responded that the administration does not intend to increase tariffs beyond those currently in effect. "We will stick to our agreement with them." Greer said Section 301 investigation can be used as an enforcement tool for the trade agreements that have been struck by the administration in recent'months. This includes a deal made with 'Indonesia which agreed to accept a tariff of 19% and open their markets to U.S. products. He said USTR will open a Section 301 inquiry into Indonesia's trading practices, to examine its industrial capacity and subsidies in the fisheries sector. The findings?would then be compared to the steps Indonesia takes to address U.S. concern and to meet its commitments as part of the deal. Then we will decide what tariffs should be applied. "We expect continuity in our trade deals," said Greer. Greer told Fox Business a nearly 100-year-old law, Section 338 from?the Tariff act of 1930, is "still a good law" that could be useful when countries discriminate the U.S. in trade with other countries. Tariffs up to 50 percent can be imposed on certain imports. He said that the focus of his investigation was on Section 301 national security investigations and Section 232 strategic industry-based Section 301 national security inquiries, where tariffs had proven to be "very durable." Greer stated, "They have stood up to scrutiny before and will do so again." Reporting by Susan Heavey, David Lawder. (Editing by Daphne Psaledakis Mark Potter and Paul Simao.
Senator calls on US House to vote again on Aviation Safety Bill
The top Democrat in the U.S. 'Senate Commerce Committee urged House of Representatives on Wednesday to reconsider aviation legislation which 'failed by a single vote - after 'Pentagon resistance.
The House passed the ROTOR Act 264-133, unanimously approved by the Senate in December. This was to address concerns raised after a collision between an American Airlines regional plane and an Army Black Hawk aircraft in the crowded airspace above the nation's capital a year earlier, in which 67 people were killed.
The fast-track rules required that the bill be passed by two-thirds of the votes cast. It fell short by one vote.
On Wednesday, Senator Maria 'Cantwell, top Democrat of the Senate Commerce Committee, urged House Speaker Mike Johnson, to call a new vote.
Johnson's office refused to comment on Cantwell’s action, but he did say that Congressional?leadership is committed to enacting this bill.
Cantwell stated that the passage of legislation in the House was complicated because 26 members did not vote, partly due to a major storm.
This act requires the military to use ADS-B (advanced surveillance technology) on routine training flights, but not on sensitive missions.
Jennifer Homendy, Chair of the National Transportation Safety Board, said that ADS-B could have prevented the collision in 2025 and stated that the agency has been calling for its mandate for more than 20 years.
The Pentagon had said in December that it supported the bill. However, on Monday, they said the bill would create "significant unresolved budgetary burdens" and operational security threats to national defense activities.
Sam Graves, Chair of the House Transportation Committee, said that his committee would be taking up a competing?aviation bill as early as next week.
Homendy said that relatives of those killed met with Johnson's team on Wednesday in order to express their frustration at the military's opposition to the bill.
(source: Reuters)