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Jazeera Airways taps Saudi hubs as Kuwait airspace remains shut
Executives said that Kuwait's?Jazeera Airways will offer 200,000?seats this April, which is about 40% of its pre-war network. The airline plans to?rebuild the operations?disrupted?by the U.S./Israeli war against Iran. In its fourth week of fighting, the war has claimed more than 2,000 lives, shattered global markets and led to Iranian strikes which have effectively'shut down' the Strait of Hormuz, disrupting global air traffic. Kuwait's airspace was closed when the conflict started on February 28. Its international airport and surrounding areas were targeted multiple times, prompting Jazeera?to shift its operations to Saudi Arabia. On March 11, the airline began transporting passengers across the border via land from Al Qaisumah Airport. Now, it is also operating out of Dammam. Barathan Pasupathi, the Chief Executive of Jazeera, told media via remote that he had no idea when Kuwaiti airspace would reopen. The airline will be able to bring in almost two million metric tonnes of freight by using Saudi hubs, according to the official. Jazeera's Chief Commercial Officer, Paul?Carroll, said that the company operated 11 or 12 aircraft out of its 23-strong fleet. We have 22 destinations available for sale tonight. He said that the main goal was to keep Kuwait connected in terms of cargo and passenger movements. He added, "We are looking at increasing frequency where the demand warrants it." Reporting by. Mark Potter (Editing by Mark Potter).
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Austrian lower house opens the door to measures to combat rising fuel prices
Austria's lower chamber of parliament approved a draft law?on Wednesday, paving the way for implementing?measures against rising petrol prices caused by the war in the Gulf. The?military strike? by Israel and the U.S. on Iran, and Iran's threat to block shipping through the Strait of Hormuz - through which a fifth of all global oil and gas is delivered - have pushed up oil prices, and Western governments are scrambling to cushion the blow for consumers. Austria's ruling coalition of three parties plans to return to motorists the extra revenue from higher petrol prices, in the form of a tax cut on diesel and petrol. The coalition also wants to limit 'profit margins of refiners and fuel retailers. The government stated that the measures would initially reduce fuel costs by approximately 10 eurocents (12 cents per litre) starting next month. The Greens, an opposition party, voted in favor of the draft legislation to give the government a two-thirds majority. "This government must accept full responsibility for the success or failure of its policies," said?Greens Leader Leonore Gewessler at a press briefing shortly before her party voted in favor of the legislation. Gewessler, however, also stated that she believes the'measures will be ineffective. She said fuel retailers will'simply increase their prices even further. And urged the Government to improve the plans. She explained her party's voting by saying, "We Greens won't let ourselves be used as an?excuse for this government failing to act and bring down prices."
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Maersk Shipping says Middle East urgently needs food imports
A.P., the Danish container shipping?group's chairperson, said that the Middle East has a?pressing need? for food imports which have been disrupted? by the Gulf War. Moller-Maersk stated on Wednesday. According to the World Economic Forum (WEF), Gulf Cooperation Council nations - including Saudi Arabia, Qatar, and the United Arab Emirates -- import up to 85 percent of their food. The conflict that started?with U.S. and Israeli strikes on Iran, followed by Iranian attacks in?the region, and its closure of the Strait of Hormuz has brought'shipping to a standstill, rippling through global supply chains. Maersk temporarily suspended cargo bookings in many ports of the Gulf Region and introduced emergency bunker fuel surcharges throughout the world as compensation for rising fuel prices. Robert Maersk Uggla, Maersk Chairperson, said that the company employs more than 6,000 people in the region who provide essential logistic and transportation services to customers and communities. He told the annual general meeting of the shareholders of the group that there was a "pressing need" for food imports, which are often handled using cold chain solutions, such as Maersk reefer containers. He added that "as the Strait of Hormuz has been closed, we are now trying to find alternative ways to bring the cargo to the Gulf", without providing any further details. Hapag-Lloyd, the rival container shipping company, said earlier on Wednesday that it would incur 'additional costs' of $40 to $50 million per week as a result of the Iran crisis. It cited higher fuel prices, insurance premiums, and storage fees for containers. (Reporting and editing by Jan Harvey; Terje Solsvik)
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Some private investors are unsure of what shares they have purchased in the SpaceX IPO
Tejpaul Bhatia, an entrepreneur from India, is certain that he has a piece of Elon Musk?s 'SpaceX. He can't be sure. SpaceX, which was valued at $75 billion when the former Google executive joined the industry in 2021 had already become one of the most sought-after private firms. Early backers and institutions associated with Musk held the majority of shares. Bhatia was unable to buy shares directly so he turned towards the secondary market, where a loose group of brokers trades privately held company shares. Bhatia's shares, which were purchased through brokers, are difficult to verify. Bhatia said, "I hope I wasn't duped," the former CEO of Axiom space. "I'm not sure, but there's still no way to tell." He refused to reveal the amount of his investment or the name of the broker. Many are willing to pay more for the chance to own SpaceX shares prior its public offering. They will also live with any uncertainty. He said, "This is the hottest IPO in history." Bhatia has joined a growing number of investors who are pouring money into SpaceX via the opaque market that exists for private company shares. These deals are often made through special-purpose vehicles (SPVs), which do not own shares of the company. Investors pool their money to buy rights to purchase shares at a future date. Mitchell Littman is a New York attorney who advises SPV managers, secondary market investors and other parties involved in the transactions. He said, "Everytime there is a lot of hype about these types of things, fraudsters will come out because they see an opportunity." SpaceX, Securities and Exchange Commission and Department of Justice did not respond to requests for comment. TECH GIANTS ARE GETTING A HUGE HIT WITH THEIR APPETITE SpaceX, as well as other private companies such OpenAI that are gaining traction, have reshaped how initial public offerings work. Many of the most valuable companies in the world are still private, building their brand and creating intense investor demand. This is unlike years ago when fast-growing technology companies were more likely to go public. Investors who don't want to miss out on the IPO have flocked to secondary markets where shares are traded before the IPO. The use of multiple investment vehicles has also increased as demand has risen. According to two brokers, shares can go through up to five intermediaries with their own layers of fees. Namek Zu'bi said, "It is getting a bit loosey-goosey," who manages an asset fund of more than $500,000,000. He claimed he declined requests from his investors to invest in SpaceX because he was concerned about fraud. Zu'bi stated that "a lot of people will make a lot money." "But there will also be a lot people who are shocked or surprised" to find out that they do not own any shares. Investors can only see the SPV directly above them in many deals. They cannot tell if the shares on top are real. One senior executive from the secondary market industry said, "That is not enough to ensure that the shares are real." The increased layering of costs can reduce the profit margins for the IPO and the upside potential for investors. The greater dangers are paying too much and adding multiple layers of fees, said Jay Ritter. He is a University of Florida professor emeritus, who studies IPOs. Ritter added that investors have limited upside when starting with a high valuation. History shows that even companies that have a large revenue multiple tend to lag behind the market. FEAR OF FRAUD GROWING Some investors are worried that they may only have paper when SpaceX goes public. SPVs are under closer scrutiny in recent years after a series of high-profile 'pre-IPO fraud cases. Giovanni Pennetta, a financier from New York, was arrested in December at the JFK Airport on charges that he had set up a phony investment vehicle for the sale of non-existent shares in Anduril. Pennetta pleaded to charges of wire fraud earlier this month. A financier in 2023 was sentenced eight years in prison for defrauding over 50 investors, who gave him $6 million in order to purchase pre-IPO shares of multiple companies including SpaceX. Since then, the Department of Justice did not announce a pre-IPO case involving SpaceX. Investors and executives in the industry said that the company's popularity had increased risks. The Fear of Missing Out Fuels Risk-Taking Peter Wright, a broker who acts for Emirati Sheikhs, received a message via text last month from another broker. The sheikh wanted to buy a large amount of SpaceX. The message read: "We are looking for a buyer of SpaceX shares. We have a family-owned business interested in buying $1.2 billion worth of stock. Even an offer that large did not "open the door" to a possible deal. Wright and the broker for the sheikh told the client that he couldn't purchase shares directly. The transaction did not close. Wright stated that his firm will not work on deals where there are more than one intermediary. He cited the difficulty in determining ownership. He said that diligence was impossible at this point. Zu'bi says that fear of missing out is more important than the fundamentals when it comes to driving demand. They want to tell their yacht friend: "Hey, I am in SpaceX." "Are you also in SpaceX?" he asked. (Reporting and editing by Joe Brock and Dawn Kopecki in Washington and Echo Wang in New York; and Joey Roulette and David Jeans, in New York)
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Cheniere CEO: Maximum capacity already reached as Asia demands more LNG
Jack Fusco, CEO of U.S.-based LNG exporter Cheniere Energy, said that the company's Asian customers have asked for more liquefied gas due to the ongoing conflict in the Middle East, which has caused Qatari supplies to be cut. He also stated that the company was already operating at full capacity. Fusco hopes that Cheniere will be able to start commercial operations on its Train?5 expansion in Corpus Christi (Louisiana) by Friday, so as to send more cargoes from Asia. QatarEnergy used to?produce 20% of the world’s LNG. However, its plants were shut down as a result of?the U.S./Israeli war against Iran. They also sustained damage due to airstrikes. The company warned that it could lose up to 17% of current?supply in the next five years. Fusco stated that the last cargo from QatarEnergy had arrived in Asia and it was unclear when Qatar would resume its operations. Qatar is the second largest LNG exporter in the world. Meanwhile, customers are looking for more supplies in the U.S. "We're doing everything we can to help." We are looking closely at our maintenance schedules, but ultimately, we must be reliable and safe. Fusco stated that they would not sacrifice anything in order to remove the last "drop". Fusco stated that Europe is still the preferred market for Cheniere. 1,600 cargoes have been landed on the continent, since the beginning of Russia's invasion in Ukraine, 2022. However, Fusco expects LNG to grow primarily from Asia. Fusco added that the recent conflict has emphasized the need for a diverse supply. Cheniere is America's largest LNG exporter. The company expects to sell 52 million tons of supercooled gas by 2026. Curtis Williams reported; Nathan Crooks and Nia Williams edited in Houston.
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Libyan coast guards tow away damaged Russian LNG tanker from its shores
The Government of National Unity in Tripoli (GNU), said that Libya's coast guard has started towing a damaged liquefied gas?tanker, which several Mediterranean countries had warned posed a?risk? for the environment after drifting without manned for weeks. The Russian-flagged Arctic Metagaz has been drifting since early March when the Russian Transport Ministry claimed that it had been hit by Ukrainian drones. It drifted near the coast of Zuwara, a western Libyan port. Last week, Italy, France and Spain, as well as six other EU southern members, wrote to the European Commission warning that the tanker presented "an imminent and severe risk of a serious ecological disaster". In a video, GNU Transport Minister Mohamed Al-Shahoubi stated that the National Oil Corporation of Libya has been given the task of unloading cargo from the Russian tanker. The Ministry of Foreign Affairs is working with Russian and Maltese officials to ensure the safety of the maritime navigation on the Mediterranean Basin. The Tripoli-based GNU’s Hakomitna platform posted a video on Tuesday showing a frigate pulling a tanker through the water with a thick cord. Omar Mohamed Omar Al-Tuwair is the commander of the central sector for?the coastguard and ports security. He said in the video that the abandoned tanker had been towed from Zuwara shores. Tuwair said: "We assure the people of Libya, in general, and in the western coastal regions, in particular, namely Zuwara and Sabratha that the relevant authorities will do everything possible to address the situation." The authorities haven't yet revealed the final destination for the?tanker. According to the Russian Transport ministry, the drones which hit the tanker were launched by Libya. The incident has not been commented upon by either Ukraine or Libya. (Reporting and Editing by William Maclean, Ahmed Elumami)
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Carney criticizes Air Canada CEO's English-only comments after crash
Mark Carney, the Prime Minister of Canada, criticized Air Canada CEO Michael Rousseau on Wednesday for not expressing his condolences in French after a fatal crash. Carney told reporters he thought?Rousseau showed a 'lack of judgment' and that the airline board would make a statement. Air Canada's jet crashed into a firetruck on Sunday evening as it was landing at New York LaGuardia Airport, killing the two pilots. Air Canada is bilingual but?Rousseau, an English native speaker, released a 4-minute video with only two words in French. The language committee of Parliament voted to summon him on Tuesday to Ottawa to talk about the issue. Carney stated, "I am?very dissatisfied - as are others, and rightly so – by this unilingual statement of Air Canada's CEO... it (shows) a loss of judgment, lack of compassion." He continued, "I will follow closely his remarks (to the?committee), and any comments that I expect from the board in due time." Air Canada did not respond to a request for comment immediately. The issue of language is sensitive in Canada, especially in Quebec, which has the largest population and speaks a majority French. In the 1970s, the Parti Quebecois was born out of discontent with the dominance of English. The party now has a strong lead in polls ahead of an upcoming provincial election. If it wins, the party has promised to hold another referendum on independence. The PQ government held two similar votes in 1995 and 1980. Rousseau is not the first to have a problem with language. Canada's government told him to improve his French in 2021 as part of the?his board review. He vowed to do better. Ottawa acquired a 6% stake of the airline as part of the COVID-19 pandemic rescue package in 2021. The holding was sold in December last year. David Ljunggren, Paul Simao and David Ljunggren (Reporting)
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Trans Mountain begins bidding for capacity expansion
Trans Mountain, a Canadian company, launched a?bidding process? on Wednesday to secure firm transportation contracts for its pipeline system. The "Open Season", a process to gauge interest from the commercial community in possible projects to increase system capacity, runs from April 7 through June 2. The company stated that the Open Season will result in 80 to 90 percent of its 890 000?barrels a day (bpd), pipeline system, being contracted. This includes shipments between Edmonton, Alberta, and delivery locations in British Columbia. The Canadian government owns the 'Trans Mountain Pipeline,' which transports oil from Alberta to British Columbia on the west coast. From there, it can be exported to other markets, including China. The company plans to submit an application with the Canada Energy Regulator in order to obtain the necessary approvals. Trans Mountain plans to implement a number of similar projects over the coming year. These 'future' projects are expected to boost throughput by 90,000 bpd in early 2027. The company said that its 'Mainline Optimization Project' is expected to add 210,000 bpd before the end of 2028. Trans Mountain stated that the projects would increase?total capacity of pipelines to?about?1,190,000 BPD from approximately 890,000 BPD currently.
JetBlue taps advisers for potential sale, Semafor reports
JetBlue Airways hired advisers to evaluate the viability of a possible sale to a competitor carrier, according to Semafor, which reported on Wednesday.
The shares of the low-cost carrier rose by?14%.
According to a report, JetBlue had 'various scenarios' on how Washington policymakers would view potential combinations with United Airlines or Alaska Airlines.
According to LSEG, JetBlue's market value was approximately $1.55 billion at Tuesday's closing.
Could not confirm independently Semafor’s report.
JetBlue said in an email that it had made "meaningful progress" on its multi-year JetForward strategy. It was referring to the long-term financial plan.
We're confident JetForward will restore profitability and create value for our investors, as well as opportunities for our crewmembers.
The airline announced earlier this month that it was on track to achieve $850-$950 million in additional operating profits by 2027 thanks to its JetForward Plan, which aims to reduce costs, increase its network, and improve service for travelers.
JetBlue canceled its $3.8 billion merger with Spirit Airlines in 2024 after an American judge blocked it on the grounds of anti-competition.
JetBlue announced last year a partnership with United that allows travelers to book flights using both carriers' websites, and earn and use frequent flyer points interchangeably.
JetBlue has also agreed to give United access to up to seven round-trip daily flights at New York's congested JFK International Airport starting in 2027.
JetBlue could still be in the preliminary stages and decide to not pursue deal talks with rivals. The report added that it was not possible to determine if JetBlue had been in discussions or received any indications of interest. Reporting by Aishwarya Jain, Bengaluru. Editing by Leroy Leo.
(source: Reuters)