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New York Times Business News - August 25,
These are the top stories on the New York Times business pages for August 25, 2018. These stories have not been?verified and we cannot vouch for their accuracy. The Supreme Court, which was divided on Monday, allowed the administration of U.S. president Donald Trump to proceed with its executive order that directed?the U.S. Postal Service will help determine which voters should receive mail-in votes before midterm elections. The Trump administration proposed a steep new fee on Monday for visas granted to foreign skilled workers. This is the latest attempt by the Trump administration to fundamentally revamp the H-1B Visa program. The Trump administration plans to also revoke visas for foreign nationals who have come to the United States "temporarily" for business or tourism but sought to stay longer in the country by applying for asylum. The U.S. Securities and Exchange Commission (SEC) recently issued subpoenas for banks to provide information on the trading of Situational Awareness, a hedge fund that is based on artificial intelligence. A private arbitrator ordered The Washington Post to hire back?opinion writer Karen Attiah. She was fired in September for her social media posts regarding the assassination conservative activist Charlie Kirk. (Compiled by Bengaluru Newsroom)
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German investigators discover third drone and explosives after failed airport assault, say media
German investigators have discovered a third drone and suspected explosives linked to the attempted attack on the Leipzig/Halle Airport this month, according to the NDR and WDR radio stations and the Sueddeutsche Zeitung. Media reports stated that the drone was discovered on August 14, 10 day after the incident. It was located?towards the west of airport where investigators also?found about 50 grams (1.8oz) of what they suspected as the military explosive hexogen. The office of the?prosecutor general?didn't immediately respond to an inquiry for comment. The reports cite security sources who suspect Russian intelligence involvement. This accusation has been denied by Moscow. A drone containing explosives was found on August 4?near an Antonov cargo plane used for?military?supplies. Investigators suspect that a second drone 'collided' with a DHL cargo plane shortly after the airport was temporarily closed. The airport is used by NATO and Ukraine's Antonov Airlines to supply military supplies. (Written by Friederike?Heine, edited by Clarence Fernandez).
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Lockerbie Bombing Trial postponed days before its start by US Judge
The trial of the man accused by authorities of building the bomb that allegedly blew Pan Am Flight 103 out the sky over Lockerbie in Scotland and killed 270 people in 1988 was postponed on Monday by a federal judge. The jury selection was'scheduled' to begin on Wednesday for the trial of Abu Agila Mohammad Mas'ud Kheir Al-Marimi. Prosecutors claim that the Libyan intelligence agent confessed his involvement in the 1988 bombing. U.S. district judge Dabney Friedrich said that the defense attorneys wanted to review new evidence. She said that "the newly-discovered evidence, as well evidence found in other countries", and "the need for the defense determine the best way to defend this case", led her to make the decision. Friedrich didn't schedule a new date for the trial but instead set up a hearing in court on September 1, to discuss next steps. Mas'ud has now reached his mid-70s and has pleaded no contest to two criminal charges relating to the destruction of an aircraft that resulted in death. If convicted, he could face a maximum sentence of life imprisonment. The Boeing 747 that exploded in London minutes after takeoff on December 21, 1998 killed all 259 passengers, including 190 Americans and 11 people on ground in Scotland. The bombing turned former Libyan leader Muammar Gadafi - whose government had accepted responsibility for 2003's attack - into an international pariah. Mas'ud denies wrongdoing, and his lawyers question the credibility of evidence collected by prosecutors. This includes Mas'ud's supposed confession to a Libyan Police?Officer in 2012, one year after rebel forces overthrew Gaddafi's regime. The trial of Mas'ud in a 'Washington, D.C. Federal 'court has been delayed for years by legal wrangling about the alleged confession, and other issues, which have revealed the complexities of a U.S. prosecution of a decades-old British attack with key evidence gathered in Libya. Mas'ud was arrested in Libya in 2022 and brought to the U.S. He is accused of constructing a "time-delayed" bomb which was placed into a suitcase and checked luggage in Malta. The suitcase containing explosives eventually found its way to London Heathrow Airport where it was placed in the hold of Pan Am Flight 103.
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US Supreme Court gives Trump a victory over restrictions on mail-in voting
The?U.S. The?U.S. Supreme Court lifted on Monday a judicial ruling that had prevented President Donald Trump from implementing an executive order restricting the use of mail-in votes ahead of the November midterm elections, which will determine control of Congress. However, another judicial ruling remains. The Justice Department received an emergency request from the Justice Department to suspend an injunction issued by U.S. judge Indira Talwani in Boston in June, which prevented the Republican President from implementing his directive against a coalition consisting of 23 states, mostly governed by Democrats, and Washington, D.C., who had sued in order to stop him. The court is conservatively majority with a 6 to 3 margin. Three liberal justices were dissidents from the ruling. As the midterm elections approach, the Supreme Court's decision leaves the door open for states to sue again in the future. However, the court didn't act on a second injunction that Talwani issued on August 11, which blocked the U.S. Postal Service across the country is not enforcing stricter voting rules in accordance with the directive. The judge made this order as part of a separate lawsuit brought by voting rights groups. The Justice Department had asked the Supreme Court to clarify that it applied its decision to both of Talwani's?injunctions. However, the justices didn't do this on Monday. Both lawsuits challenged Trump's executive order as being unconstitutional. TRUMP'S MARK EXECUTIVE ORDDER Trump's March executive order directed the Department of Homeland Security?to compile and transmit to each state a list of U.S. Citizens eligible to vote, while the Justice Department prioritized investigating and prosecuting local and state election officials who issued ballots to people deemed "not qualified" to vote at federal elections. The order also mandated that the U.S. Postal Service will only deliver ballots to those voters who are on the approved list of mail-in votes for each state. Postal Service has recently implemented Trump's directive. Trump has promised to stop the use of mail in ballots before the midterm elections. He has also cast doubts on their security, even though evidence of voter fraud has been rare. Republicans want to keep control of Congress during the fiercely contested midterm elections. Republicans would benefit disproportionately from limiting mail-in votes, as Democratic voters are more likely to use them than Republican voters. JUDGE RULED TRUMP lacked authority Talwani ruled in June that the President lacked authority to order any changes in the way states administer federal election, noting that states are responsible for determining 'voter eligibility requirements' under the U.S. Constitution. The judge noted that federal agencies are unable to compile accurate lists of citizens for each state. The Justice Department had said that the lawsuit against Trump's directive was premature, and the states lacked the legal standing to sue at this point. The administration stated that the agencies haven't taken any concrete steps to impact the states, and any harm they claim is speculation. The states claim that their claims are real and that the "rushed effort to change the rules for mail voting just before the midterm elections in November risks disenfranchising substantial numbers of voters." The judge rejected administration arguments. He found that the lawsuit was not filed too "soon" and that states had a legal right to file the suit because they would be subjected to disruption of election administration, compliance costs, and the credible threat of criminal prosecution. Trump's executive orders is part of a larger effort to fundamentally change the U.S. election system. Trump, who has made false claims of widespread fraud in U.S. elections including his 2020 loss to Democrat Joe Biden, has pressed the Republican-controlled Congress to pass a contentious package of voting restrictions called the SAVE America Act. (Reporting from Andrew Chung, New York; Editing done by Will Dunham and Matthew Lewis.)
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WestJet cabin staff approves proposed deal following strike
WestJet's?flight attendants voted on Monday to accept a tentative deal that would?increase wages?"by a?more than 18%?over the next three years?, according to their union. This follows a strike earlier in the month that resulted in hundreds of cancellations. Flight attendants at the airline 'also received duty pay premiums as part of an 'overall shift in North America where cabin crews are challenging compensation structures based primarily on flying time, rather than each?hour worked. The Canadian Union of Public Employees (CUPE), which represents 4,400 WestJet Flight Attendants, sought compensation for the period from when members report to work until their clock-out. The 'tentative agreement' would offer a premium to compensate for time that was previously unpaid. Air Canada, Alaska Air, Delta Air Lines, United Airlines, and American Airlines have all introduced a pay-for-boarding system or specified ground time. This has increased the pressure on other carriers to recognize more of what attendants do on duty. On August 3, the?union announced that it had tentatively reached a?deal with Canada’s second largest?carrier which is owned by Onex Corp.
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Sources say that the derailment of Rusal in Guinea has stopped alumina exports.
Three sources said that a train owned by Russian aluminium producer?Rusal, derailed over the weekend in Guinea's Dubreka Prefecture, halting exports of alumina and slowing production. Two company officials reported that the train carrying alumina fell off the track near Kagbelen, on Saturday evening. The incident injured four people and forced the suspension of rail traffic. Senior Friguia refinery officials said that alumina production continued at a slower pace after the accident but they could not quantify its impact. Exports are at a standstill. "A team has been dispatched on the site to assess and repair the situation," said the official. They asked to remain anonymous because they were not authorized to speak on the subject publicly. Rusal didn't immediately respond to requests for comment. Guinean authorities have not yet released an official statement on the cause of the derailment. RUSAL FACE EXPORT DISRUPTIONS Guinea, the world's leading exporter of the bauxite ore that is used to produce aluminium, faces disruptions in its exports. Rusal runs the only alumina refining plant in the country, with a capacity of 600,000.00 metric tons annually. It supplies?alumina for the Russian aluminium smelters. The derailment of the Rusal ship in Guinea is a further challenge to Rusal's exports since the Iran War disrupted shipping lanes. According to a fourth source, the incident has disrupted the supply of key production inputs such as fuel and caustic soda, which are transported by rail between the port refinery. Rusal's second executive and a mining expert?said that the company had already cut alumina production before the derailment due to?fuel supply issues. Guinea's mining industry relies on a number of privately-operated rail corridors that connect bauxite, iron ore and alumina refineries with export terminals. The derailment, according to a senior official in the transport ministry, highlighted a 'chronic'?shortcoming of railway maintenance. According to the refinery's official, Friguia reopened in 2018 after closing in 2012. Since then, it has produced around 450,000 tons alumina per year. (Reporting and editing by Matthew Lewis; Maxwell Akalaare Adombila, Guinea newsroom)
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Putin gives Russia control over infrastructure that is vulnerable to drone attacks
On Monday, President Vladimir Putin 'granted the Russian state authority to seize control of critical infrastructure that is not adequately protected against Ukrainian drone attacks or other threats. A presidential decree outlines the special powers that will allow Ukraine to temporarily take over management of these facilities. This is at a time where drone attacks on oil refineries, retail warehouses and other critical infrastructure have increased. According to the decree, the state can take control of assets such as physical or financial and formal ownership rights when entities in charge of these?facilities fail to do their job to protect them. This applies to fuel, energy, communication, industrial and transport facilities, as well as other items deemed critical for the economic and security stability of both the state and its population. First Deputy Premier Denis Manturov stated that the measure would not be used on a large scale and should not be seen as a prelude to nationalisation. "This is not a nationalisation or change in ownership." Manturov, quoted by Interfax as saying that the decree allows for the state to be involved in managing an entity in order to "address certain?security concerns". Last week, Putin ordered the government launch a program to rebuild damaged or destroyed commercial warehouses caused by Ukraine in recent weeks. Kyiv has destroyed a significant portion of the storage capacity at Wildberries, Russia's largest online retailer. Since July 18, Kyiv has targeted more than two dozen warehouses. Russia's second largest online retailer Ozon said on Monday that four of its southern Russian logistics hubs had been attacked by Ukrainian forces. (Reporting by Editing by Andrew Osborn, Alexandra Hudson)
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UK's Burnham: 'Glorifying dangerous driving in social media is repugnant'
British Prime Minister Andy Burnham referred to the promotion of dangerous driving via social media as "truly repugnant" on Monday, while his government called for tech companies to remove videos after a weekend car crash that killed seven people. In the early morning hours of Saturday, a car that was driven in the wrong direction down a major highway crashed into a police vehicle with armed officers in Northeast England. All five passengers and two officers were killed. Police said that four of the five people in the car had prior convictions. The police said that they had arrested 12 people as part of an investigation into organized criminal activity related to the incident. The accident came after two recent head-on crashes near Dublin. One of them killed five people. This prompted Ireland's chief police officer to warn that some young people are driving wrong way on motorways "for social media". The police said that there is no evidence to suggest the events that led up to the accident were filmed for the purpose of appearing on the short-form video platform TikTok. Burnham described the incident as "devastating" but said that he couldn't say more at this point because an investigation is ongoing. He told Kyiv reporters on Monday that anyone who promotes dangerous driving does something truly reprehensible. Since the accident, the government has raised the issue with social media companies of videos of dangerous driving and asked that they be removed. The police said they had received reports of dangerous driving before the crash, including one vehicle seen ramming into a property in Middlesbrough in northeast England. Police said that both vehicles were operating with cloned plates in order to avoid detection. Nine men and three woman, aged between 19 and 60, were arrested by police in the Teesside region after inquiries conducted over the weekend. Police said that the suspects were detained on suspicion of crimes ranging from possessing a firearm to engaging in 'activities of organised crime groups'. In a press release, Assistant Chief Constable Wayne Fox stated that the investigation was fast-moving with significant connections to serious criminal activity.
Price hikes and outlook cuts are used by airlines to combat the fuel price surge.
The aviation industry was blindsided by the sudden increase in jet fuel costs from $85 to $100 to $150 to $200 per barrel during the U.S./Israeli war on Iran. Fuel accounts for as much as a quarter or more of the operating costs, which has forced airlines to increase fares and re-evaluate their financial forecasts.
Here is an alphabetical list of the ways airlines are responding to this issue:
AEGEAN AIRLINES
The Greek airline anticipates that the suspension of Middle East flights, as well as a spike in fuel costs will have "a significant impact" on its first-quarter results.
AIRASIA X A Malaysian airline said that it will suspend its services between Melbourne and Denpasar, and Adelaide and Denpasar on June 18, due to higher fuel prices.
Executives had previously stated that the airline has cut 10% of its flights and imposed a fuel surcharge of around 20%.
AIR CANADA
Fuel price volatility has caused Canada's largest carrier to suspend its full-year forecast.
The company had announced previously that it would reduce four of its daily flights from New York to just 38 due to rising fuel prices.
AIR CHINA, CHINA SOUTHERN AIRLINES, REGIONAL CHINESE CARRIER
Chinese airlines are increasing fuel surcharges on domestic flights starting May 16. Surcharges will range from 30 to 90 Yuan ($4-$13) for flights less than 800 km. Surcharges for longer routes will rise by up to 170 yuan.
AIR FRANCE-KLM
The airline group expects to pay $2.4 billion more in fuel this year. The airline group has downgraded the full-year forecast for capacity growth to an increase between 2% and 4%. Previously, it had guided to a 3% to 5 percent increase.
The airline announced earlier that it would be increasing the price of long-haul tickets to address rising fuel costs. Cabin fares will increase by 50 euros ($58).
KLM, the Dutch subsidiary of the group, announced on April 16 that it would cancel 160 flights across Europe in the next month due to increasing fuel prices.
AIR INDIA
Between June and August, the Indian carrier will temporarily reduce flights on several international destinations.
Bloomberg News reported that the airline was considering furloughing employees who are not technical and reducing flight capacity more than 20% over the next three month.
Air India said that it will also revise the fuel surcharge, moving from a flat surcharge for domestic flights to a grid based on distance. The company said that surcharges for international routes do not compensate the steep rise in fuel costs.
AIR NEW ZEALAND
The New Zealand airline said that it will review its capital expenditure plans and the timing for aircraft deliveries in order to better align themselves with market demand.
It was one of the first carriers to announce a large increase in ticket prices as the conflict began. The airline warned that further capacity consolidation could occur if fuel costs remain high.
AIR TRANSAT
Canadian Airlines said that it will reduce its planned capacity of 6% between May and October this year. The airline expects to make cuts on routes to Europe, the Caribbean and Cuba, while suspending service until October.
AKASA AIR
India's Akasa Airlines introduced a fuel charge ranging from 199 to 1,300 Indian Rupees ($2 - $14) for domestic and international flights.
ALASKA AIR
Fuel prices are rising sharply, putting pressure on airline margins.
The carrier had previously withdrawn its profit forecast for the full year and warned that earnings would be severely affected in the second quarter. The carrier has also reduced capacity in certain markets.
AMERICAN AIRLINES
The U.S. airline slashed their 2026 profit projection, pushing lower expectations to a deficit, and stated that it expected jet fuel costs to rise by more than 4 billion dollars this year.
The government has increased the fees for checked bags on domestic flights and short-haul international flight by $50 for the third bag and $10 for the second bag. It also reduced certain benefits for economy passengers.
According to the Japanese airline, higher fuel costs will increase its costs by approximately 140 billion yen (883,3 million dollars) this year. However, cost reductions, fares, and hedging are expected to reduce that impact to about 60 billion yen. The airline is also looking at a domestic fuel charge for the fiscal year beginning April 2027.
ASIANA AIRLINES
Newsis reported that the South Korean airline would cut 22 flights from April to July because of fuel price increases.
CATHAY PACIFIC
Hong Kong Airlines said it will reduce fuel surcharges on most flights starting May 16, as part of its "agile response" in response to the fluctuation of jet fuel prices.
CEBU AIR
In response to the rising fuel prices, the Philippine-based airline announced that it has implemented fare adjustments as well as surcharges in various parts of its network.
DELTA AIR LINES
Delta announced that it would reduce capacity by approximately 3.5 percentage points compared to its original plan, and increase fees for checked baggage in order to offset the costs of jet fuel. The increase will be $10 on the first and second bags and $50 on third bags. The U.S. carrier pulled back on all capacity increases for the second quarter, and forecast profits below Wall Street expectations.
EASYJET
EasyJet has warned that it will suffer a larger half-year loss before tax of 540-560 millions pounds ($721-748million), which includes 25 million pound in additional fuel costs for March.
FRONTIER Airlines According to The Wall Street Journal, a group of U.S. low-cost airlines, including Frontier Airlines has proposed a $2.5 billion plan for relief to the U.S. Government. The report stated that the figure was based on the amount of jet fuel the group is expecting to spend this year in comparison to previous forecasts.
Fuel prices have increased dramatically since the carrier's forecast, and it has stated that it will be reviewing it.
GREATER BAY Airlines
The Hong Kong based company said that it would increase fuel surcharges for most routes on April 1 and keep them the same on routes to mainland China and Japan.
HONG KONG Airlines
The airline announced that it would increase fuel surcharges up to 35% starting March 12. The biggest increases would be on flights between Hong Kong, Bangladesh, and Nepal where the charges would go from HK$284 to HK$384 (US$49).
IAG, the owner of British Airways, warned that its annual profit will be lower than anticipated due to rising jet fuel prices and supply disruptions.
It had previously stated that it would increase ticket prices in order to reflect the higher fuel costs. Despite fuel hedges, the company was "not immune" from the wider fallout of fuel price volatility.
INDIGO
India's largest airline announced that it will introduce fuel charges for domestic and international flights starting March 14. The charge for flights into the Middle East is 900 rupees and for flights into Europe, 2,300 rupees.
JETBLUE AERWAYS
JetBlue has suspended its full-year forecast and announced that it will slow hiring, reduce capacity and raise fares in order to mitigate the impact of rising fuel costs.
Sources with knowledge on the subject say that KOREAN Air entered emergency management mode in April as oil prices rose.
LATAM AIRLINES
Fuel prices have increased, causing the airline to cut its core earnings forecast for 2026.
LUFTHANSA
The German airline group has said that it will be hit by jet fuel prices of 1.7 billion euros in 2026.
ITA Airways, a member of the group, announced that it would increase ticket prices by between 5% to 10% in 2026, to compensate for rising fuel costs.
The Lufthansa Group announced in April a new low-cost "Economy Basic", which limits free carry-on luggage to a laptop bag or small backpack.
The airline had previously cut 20,000 short-haul flight from its schedule until October, claiming that it was the equivalent of 40,000 metric tonnes of jet fuel.
PAKISTAN INTERNATIONAL FLIGHTS
The airline said that it would raise domestic fares up to $20, and international fares up to $100. It cited higher fuel surcharges as the reason for this.
QANTAS AIRWAYS
Qantas, an Australian airline, said that it has delayed a planned A$150-million ($107-million) buyback. It also increased its fuel estimate for the second half 2026 from A$2.5 billion to A$3.1-3.33 billion.
RYANAIR
Michael O'Leary, CEO of Ryanair, warned that the airline's profits could be "a little under pressure" if oil prices continue to rise in the fiscal year that ends March 2027.
Scandinavian Airlines announced that it would cancel 1,00 flights in April due to high jet fuel and oil prices. In March, the airline had cancelled "couple hundred" of flights.
SPIRIT AIRLINES
Low-cost carriers in the United States have abruptly shut down after collapsing due to financial pressures. This includes the steep rise in fuel prices.
SPRING AIRLINES
Chinese budget airline, China Airlines, announced that it will increase fuel surcharges for domestic flights starting April 5.
SOUTHWEST SOUTHWEST SOUTHWEST SOUTHWEST SOUTHWEST SOUTHWEST SOUTHWAST AIRLINES
The U.S. airline forecast a second-quarter profit that was below the market's expectations. Its CEO also warned of a fuel price spike that would cost the airline billions in the quarter.
The previous increase in the cost of checked bags was $10.
The Portuguese airline claimed that price increases would partially offset the impact of fuel price changes on revenue.
THAI AIRASIA
Thai low-cost airline said that it would reduce its overall seat capacity by an average of 30 percent between May and July to offset the impact of rising fuel prices and a softening of demand.
THAI AIRWAYS
The Thailand-based airline said that it would increase fares between 10% and 15% in order to combat rising fuel prices.
The European airline, tour operator and travel agency cut their full-year profit forecast and suspended revenue guidance. They said they had incurred extra costs of about 40 million euro due to the March war, including repatriation and operational disruptions.
TURKISH AIRLINES LUFTHANSA
SunExpress, the joint venture between Turkish Airlines, Lufthansa and Lufthansa announced that it would charge a temporary fuel fee of 10 euros for each passenger on routes connecting Turkey with mainland Europe. The fuel surcharge will apply to all bookings made after April 1, for departures after May 1.
Turkish Airlines announced on April 10, that it would not be distributing any dividends from its net profit for 2025, instead choosing to keep the earnings and preserve cash.
T'WAY AIR
South Korean low cost carrier, South Korean Low-cost Airlines, announced that it would furlough cabin crew in May and/or June without pay as part of measures to address the effects of war.
UNITED AIRLINES
Scott Kirby, CEO of the U.S. airline, said that ticket prices could need to increase by up to 15% or 20% in order to offset an increase in fuel costs. The company had already implemented five fare hikes late in the first-quarter, along with increased baggage fees that it claimed were helping to offset rising fuel prices.
The carrier forecasted second-quarter and annual profits that were below Wall Street expectations. It said it would recover only 40-50% through fares and revenue measures during the second quarter. This figure was expected to improve to 70-80% by the third quarter and up to 85-100% in the fourth.
VIETJET
A potential fuel shortage has led to the Vietnamese budget airline reducing flight frequencies on certain routes.
VIETNAM?AIRLINES
Vietnam's Aviation Authority announced that the carrier will cancel 23 flights per day on domestic routes starting in April after it requested assistance from the government to remove an environment tax on jet fuel.
VIRGIN ATLANTIC
Corneel Kster, the CEO of the airline, told The Financial Times that despite adding fuel surcharges on fares this year it will be difficult to achieve profitability.
VIRGIN AUSTRALIA
Virgin Australia has said that it expects fuel costs to increase by around A$30-40million in the second half of the fiscal year and a reduction of 1% in capacity for the fourth quarter.
VOLOTEA
The Spanish low cost airline has introduced a new pricing strategy that links ticket prices with fuel costs. This could add an additional surcharge after purchase of up to fourteen euros per passenger per flight.
WESTJET
Globe and Mail reports that the Canadian airline has reduced seat capacity in June. The Canadian Press reported previously that the airline would add C$60 ($44.50) to certain bookings, and combine flights due to rising costs.
WIZZ AIR
Low-cost carrier revised upwards its guidance, citing strong bookings in advance and quick action to offset rising fuel prices and flight cancelations by adding capacity on new and existing routes and using promotional rates. The company had warned of a possible profit drop at the beginning of the Iran War.
(source: Reuters)