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Wizz Air and Ryanair demand NATS overhaul following UK flight disruption
Budget airlines 'Wizz Air' and 'Ryanair, both European carriers, called for a restructure of Britain’s air traffic controller NATS on Tuesday after a?new technical issue that caused?hundreds? of flights to be disrupted at key airports across the country. "A vital national infrastructure provider shouldn't repeatedly stop the aviation system." NATS in its current state is not suitable for the purpose it was intended for," said a Wizz Air spokesperson. Rival airline Ryanair has also criticised this agency and demanded the resignation of its CEO, Martin Rolfe. We were told that lessons would be learned after the collapse of 2023. "Resilience will improve" was the message. We were told that the systems had been repaired. "Yet here we are again", said Ryanair Chief Operating Officer Neal McMahon. NATS said it had implemented "a fix" to the latest problem and was working closely with airlines and airports in order to restore normalcy. We continue to work closely together with our airport and airline customers on recovery. "We sincerely apologize for the disruption of people's travels today and encourage them to continue to contact their airline," said a spokesperson in a press release. The British aviation regulator said that in 2024 NATS would need to revise its contingency plan for 'outages' after the automatic processing of flight schedules malfunctioned one year prior, causing chaos at Britain's airports. The Civil Aviation Authority announced on Tuesday that it has been in touch with NATS regarding the incident, and is expecting the latter to provide a complete report. A CAA spokesperson stated that "we will then determine if?any additional steps are needed to ensure the safety and reliability of the UK air traffic control system."
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Kansas Republicans support Bombardier after Trump's threat
Trump's threat to ban Bombardier aircraft from the United States began to backfire Tuesday, after Republicans in Kansas, which employs 1,500?Bombardier? employees, pledged to protect these jobs before a crucial November election. Some Republican legislators reached out to the White House over their fears that Bombardier would lose access to a large market, which accounts for half of its sales. Meanwhile, Democratic opponents in the predominantly red state jumped into the debate. Roger Marshall, Republican U.S. Senator for Kansas, who is running for election, has said that he will fight to keep Bombardier's jobs in Kansas. He said, "I have already brought this concern to the Oval Office." Bombardier employs 3,500 people in the U.S.; more than 40% are located in Wichita. Jerry Moran, a Republican senator from Kansas who will not be re-elected this year, told reporters on Monday he had contacted the Trump administration to "ensure that the president was aware of Bombardier's significant contribution to Kansas." The threat to Bombardier could escalate an already escalating U.S.-Canada trade war that is a growing election issue in the run up to the November midterm elections. Adam Hamilton, a Democrat who is running to replace Marshall in the Senate race, said on X Monday that Bombardier provides good-paying employment for 1,500 Kansas families. "Now, the president tries to take this away." The highly integrated aerospace industry has been largely spared from Trump's wider tariff war, which has imposed?duties in other industries such as autos. Three aviation lawyers who were interviewed by said that it wasn't immediately clear as to how Trump could prevent Bombardier private planes from being delivered in the United States, since they had been approved by U.S. Federal Aviation Administration. The White House is yet to comment. Trump's threats to decertify Bombardier planes in February over a certification spat with U.S. rival Gulfstream Aerospace did not materialize. Transport Canada approved the American-made aircraft. The IAM, North America's largest aerospace union, has said that it opposes Trump banning the jets. David Hernandez, an associate at Vedder-Price in Washington, said that the situation is causing a great deal of anxiety on both sides. This makes no sense. Hernandez told a client who was planning to fly Bombardier at the end October, that he asked him Tuesday if the threat posed a problem. Although the administration hasn't yet banned any planes from flying, lawyers should still take this threat seriously. Ehsan M. Monfared is an attorney at YYZlaw in Toronto. He said that there was no sign of any resistance from Americans who wanted to buy used Bombardier business aircraft from his Canadian customers. Monfared stated that the sentiment among the business aviation community is that Trump would alienate supporters and wealthy donors by banning deliveries of Bombardier aircraft. He said that a policy like this would affect too many orders from supporters of the government. "And its legal basis is in any case questionable." Bombardier shares fell 3.6% at midday after opening the day down 6.4%. Trump's threat was made in a Monday post as the trade dispute between Washington and Ottawa intensified, with Canada introducing counter-tariffs on U.S. goods worth $20 billion. On Monday night, Congressman Ron Estes of the Republican Party, who represents Kansas' 4th District, stated on the social networking site X, that he opposed tariffs on aerospace and defended Canadian planemaker Bombardier's contribution to Kansas. Bombardier is trusted by the U.S. military to perform critical missions in national security.
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French energy unions are threatening strikes in the next week due to a proposal to reduce benefits and pay
Three union members told us that French energy sector 'unions' are planning to strike on Tuesday, August 8, over a recomendation made by the French Court of Auditors in July to curb wage growth and employee perks such as cheaper power and gas. The Belgian Gas Terminal Operator Fluxys, the French Gas Terminal Operator Elengy and state-owned EDF have all filed strike notices. The unions of French energy workers and retirees pay reduced rates for electricity and gas. This is a key part of their compensation package. This court determined that EDF would lose over EUR700 millions in revenue by 2024. EDF spokesperson said that this type of preferential access is common in major companies. Employees value the energy-related benefits while encouraging responsible consumption. The spokesperson stated that it was "perfectly appropriate" for the company, whose success in the industry relies on the commitment of its employees. Gas deliveries could be disrupted if a strike occurs in Europe, as the continent works to fill up its storage before winter. Power cuts may also occur if wholesale electricity prices remain high. France is Europe's biggest LNG importer. These cargoes are transported throughout the continent. Around 70% of the country's electricity is generated by nuclear power. A union source said that further strikes could be possible following Tuesday's 24 hour action. An official from the government said that 'discussions are being held and some changes are being considered, such as moving away from a flat-rate for cheaper energy, to an allowance based upon consumption.' But the government must follow the Court of Auditors guidance. The court recommended that EDF limit annual wage increases and phase out energy benefits. EDF faces significant investment costs in upgrading its nuclear fleet, and planning new reactors. A CGT member in the gas industry said that a large turnout is expected due to opposition of the auditors' reports. Fluxys stated that it was too soon to determine the impact on operations, but terminals located outside France were not affected. Elengy confirmed all the unions in the energy sector had called for strike action, but was unable to indicate any potential impact.
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EasyJet is facing a $72 million lawsuit for stranded Airbus aircraft, reports FT
The Financial Times reported that a unit of the Russian state-owned aircraft?lessor GTLK is suing 'easyJet' for $72 million over claims it illegally abandoned six Airbus airplanes after ending their leases due to sanctions. STLC - Europe Eight, a division of GTLK Europe filed the lawsuit in London's High Court. It alleges that easyJet leased 'Airbus jets at Madrid and Cyprus without maintenance in 2022 while airport storage charges continued to accumulate. According to the claim the carrier leased 'aircraft from STLC, and informed the lessor 'April 2022 it was terminating leases due to EU sanctions that prevented them from maintaining or repairing jets. The report said that STLC maintains the sanctions do not apply since the aircraft was outside of Russia and the leasing company is based in Ireland. The poor condition of three jets that were parked at Cyprus' Larnaca International Airport led to a sale for $32,5 million less than anticipated. According to the report, three more aircraft are still parked in Madrid. EasyJet's spokesperson said that the airline will defend the claim fully and refused to comment further. GTLK has not responded to the request for comment.
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MISO launches fifth Fast-Track Study Cycle for 7.3 GW Power Projects
Midcontinent Independent System Operator said that on Tuesday it had started a fifth round of expedited study covering about 7.3 gigawatts worth of 'new power generation and storage projects,' as the electricity demand in its U.S. territory increases. The portfolio proposed by MISO includes solar and wind farms as well as battery storage facilities in the North, Central and South MISO regions. These projects will be in service by 2029. They include gas plants in Louisiana, Indiana and Kentucky, as well as battery storage developments. The U.S. electricity demand is increasing as power-hungry data centers, new manufacturing facilities and wider electrification are driving consumption higher. According to the Energy Information Administration, after reaching a second consecutive record for U.S. electricity use in 2025, it is expected that consumption will increase in 2026-2027. MISO reported that the ERAS program was launched to expedite studies of projects deemed important to grid reliability. The program has already studied 58 projects, with a total capacity of nearly 29 GW, or is'set to study' them. Five more projects, totaling 3 GW, are nearing completion. The program has a?cap of 68 projects, and will end in 2027.
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Wizz Air and Ryanair demand NATS overhaul following UK flight disruption
Budget airlines Wizz Air and Ryanair called on Tuesday for a restructure of Britain's air-traffic control provider NATS after a new technical issue disrupted hundreds of flights at major airports across the country. "A national infrastructure provider that is critical to the aviation industry should not bring it to a standstill repeatedly." NATS in its current form is not suitable for the purpose it was intended for," said a Wizz Air spokesperson in a statement. Rival airline Ryanair has also criticised this agency and demanded the resignation of its CEO Martin Rolfe. We were told that lessons would be learned from the collapse of 2023. "Resilience will improve" was the message. We were told that the systems had been repaired. "Yet here we are once again," Ryanair Chief Operating Officer Neal McMahon stated. NATS didn't immediately respond to an inquiry for comment. The British aviation regulator stated that in 2024 NATS would need to review its contingency plan for outages, after automatic processing of flight schedules had failed a year before, causing chaos at Britain's airports. The UK's civil aviation body said on Tuesday that it had been in contact with NATS regarding the?incident. It expects NATS to provide a complete report about the incident. Civil Aviation Authority spokesperson: "We will consider if any additional?steps are needed?to ensure the?safereliability of the UK's Air Traffic Control System."
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Treasury website shows that the US has issued new sanctions against Iran.
The United States issued 36 new'sanctions' on Tuesday, targeting Iran’s aviation sector and other companies. This is part of an effort to increase economic pressure on Tehran at a time when the Middle East war has entered its seventh month. The U.S. Treasury Department stated that the action was taken to 'ground Iran's Mahan Air, and other Iranian airlines, as well as covert?front companies, foreign intermédiaires, and deceptive?trans-shipment routes?, which Iran relies upon?to acquire U.S. origin aircraft and sensitive technology? The Treasury issued an alert to financial institutions asking them to report networks of procurement supporting Iran's aerospace industry. It also targeted companies based in Turkey, the United Arab Emirates and other countries that they claimed helped Tehran purchase U.S. aircraft and sensitive technology. "This is a warning to anyone doing business with Iran's airlines that we have sanctioned today: you are at risk of being cut off from global financial system," said?U.S. Treasury Secretary Scott Bessent made a statement.
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Germany warns that Russian winter attacks will intensify after it sends more Patriot missiles into Ukraine
Boris Pistorius, Minister of Defence, said on Tuesday that Germany will be sending Patriot air defence missiles from its own national stock to Ukraine. He warned that Russia would likely 'intensify' their air campaign against Ukrainian infrastructure in the coming winter. Pistorius, speaking at a videoconference with nations that support Ukraine, said he decided to "deliver immediately" more PAC-2 missiles. Officials say that Patriot missiles are the only effective defense against Russian ballistic missile attacks in Ukraine. Pistorius stated that "since Russia is only making a very slow advance at the frontline, it is trying to destroy Ukraine's critical infrastructure and economic base by air raids on port installations, power stations, and other civilians targets." He said that the damage would be "even worse" if the temperatures dropped. Pistorius has not stated how many missiles Germany will provide. He also said that Germany would continue to supply drones, long-range ammunition and air-to-air weapons. Yevhenii Khmara, Ukrainian Minister of Defence, said that Kyiv has signed a contract to purchase around?1,000 Patriots. However, the majority will only be delivered in the next few years. He called on allies to use their stockpiles 'for Ukraine now', on the assumption that Kyiv will replace those missiles in future deliveries. NATO Secretary General Mark Rutte urged allies to increase their support, saying that civilian casualties in the war had reached their highest level since may 2022. "Nations ?must dig deeper. He said, "We do not have any choice." Before the meeting, Rutte and European Commission President Ursula von der Leyen announced that EU member states had agreed to utilize part of an EUR90 billion ($105 billion), EU loan in order to allow Ukraine purchase crucial supplies for Patriot system.
Smart trucks and tugs that never sleep. Automation rewires US transport: Maguire
U.S. Transportation has become increasingly efficient with advances in engine technologies, infrastructure upgrades and more sophisticated logistic networks.
The next wave will be different. The automation of transportation networks is transforming them into continually optimizing systems. These systems consume less energy for each unit moved, work longer, and reduce labor bottlenecks. They also reshape the demand for fuels, electricity, and other resources.
Software increasingly dictates the way energy is consumed in the United States and how goods are transported.
In Texas, driverless trucks haul commercial loads while AI is deployed on Mississippi River tugboats. Rails are increasingly relying on automated inspection and machine vision systems. Aviation regulators prepare for a world where cargo flights will operate with less human intervention.
Viewed separately, ?these developments may appear incremental. They point to an increasingly autonomous, constantly?optimized, and more productive freight economy.
According to the Energy Information Administration (EIA), transportation is the biggest source of energy in the U.S. It accounts for 37% of the total energy consumption. Around 70% of the total U.S. petroleum product demand is accounted for by transportation.
A major overhaul in the transportation sector will have a far-reaching impact on the U.S. as well as global energy markets for the next decade.
THE MISSISSIPPI GOES DIGITAL
The Mississippi River, the oldest freight artery of North America, is one of the latest adopters.
America's inland waters move hundreds of millions tons of commodities each year, including fertilizer and grain, as well as biofuel feedstocks.
Waterborne transportation accounts for just 4% of U.S. fuel consumption.
In the past, river navigation was a human-experienced activity. To navigate the changing river conditions, captains relied on their local knowledge, visual observations and accumulated judgement. This is changing. The situation is changing.
The technology can monitor hazards, track vessels, calculate stopping distances and analyze river conditions. It also identifies strategies to save fuel.
It goes beyond navigation.
The river transportation has an energy efficiency advantage over trucking. Towboats use buoyancy to do the majority of the work, while the water flow does the rest.
According to the U.S. Army Corps of Engineers, one?gallon of diesel fuel can move a cargo of one ton more than 500 miles by barge. This compares to 60 miles for a truck.
Automating barge traffic will increase this advantage by reducing fuel consumption, improving planning and minimizing delays.
It is important because many of the commodities that travel on these waterways have energy content, from fuels, crude oil, and coal to biofuels. Transport costs that are lower can have a ripple effect on commodity markets and ultimately result in lower prices for energy-intensive goods.
TRUCKS THAT NEVER SLEEEP
American highways are likely to see the most noticeable automation revolution. The trucking industry, which accounts for more than 60% of the total fuel used in U.S. transport, is on the verge of a major overhaul.
Trucking has improved over the years due to better aerodynamics and logistics software, as well as new engines. One constraint, however, remained the same: trucks would stop when drivers stopped. This limitation is removed by autonomous trucking.
Aurora Innovation, along with other self-driving tech developers, have shown that driverless freight operations are commercially viable in Texas. They are working on a model where trucks will be used almost continuously.
Theoretically, autonomous trucks could operate around the clock and not just during federally mandated driving times.
This is a very different type of productivity improvement from previous transport advancements.
The Industrial Revolution largely improved transportation by enhancing the power of machines. Automation increases asset utilization.
The productivity of a truck that can move freight 20 hours a day, instead of 10, is doubled. This reduces the need for idle equipment across the network.
Energy implications are complex. Automated systems can optimize speed, brake and acceleration to reduce fuel consumption per mile. Improved routing and platooning - where trucks move in close convoys for reduced drag - could reduce diesel consumption.
A reduction in freight costs may stimulate demand. The history shows that efficiency improvements have often led to an increase in overall activity. If driverless systems dramatically lower shipping costs, freight volume could increase enough to offset fuel saving.
Over time, however, autonomous fleets may also be able to accelerate the electric trucking industry through centralized fleet management and optimized charging schedules. It would not only reduce costs, but also shift the energy demand away from diesel.
RAIL'S QUIET REVOLUTION
The railroads are one of the most mature examples of automation, but they're also the least talked about. Rail automation, unlike the autonomous truck story, is happening behind the scenes, through sensors, digital maps and predictive analytics.
Freight railroads deploy automated track inspection systems more and more while trains are still in motion. Lasers, cameras, and machine-learning system continuously monitor track condition, wheel integrity, and equipment performance.
This is a major shift in the way we monitor our systems.
In the past, maintenance of rails was based on visual inspections. Defects are usually discovered after they become significant problems. Automated systems are increasingly able to identify problems before they pose a risk.
Wabtec is a major rail technology company and locomotive manufacturer. They have developed Pathfinder, an easy-to-use device.
Pathfinder equips standard locomotives using hardware and sensors with digital capabilities, cameras and autonomous?operation.
Pathfinder, and other digital upgrade systems, could enable smaller railroad operators to upgrade their train lines using advanced autonomous technologies such as Positive Train Control and trip Optimizer.
Benefits go beyond safety. A more reliable infrastructure allows trains to move faster, reduces bottlenecks, and increases asset utilization.
Rail is the most efficient land transportation mode, accounting for only 2% of all transportation fuel used in the U.S. Any shift from trucks to rails could reduce energy intensity across the economy.
This may be one of the most underrated energy contributions of automation: it allows for greater use of modes of transport that consume less fuel per tonne-mile.
AVIATION'S NEXT FUTURE
Aviation is the least automated sector of transport, but this may change soon. The Federal Aviation Administration has started developing regulatory frameworks to support increasingly automated operations.
Reliable Robotics, for example, is developing FAA-certified autonomous cargo aircraft that can operate from gate to door under remote supervision. The U.S. Air Force also invests in pilotless cargo planes that can be integrated into civil airspace.
Aviation automation is about increasing operational flexibility. Remote or autonomous cargo planes could connect smaller towns, improve logistics resilience, and create new freight network that is currently uneconomical.
Initial energy savings could be modest. Aviation fuel consumption in the United States is only 9%, but aircraft are heavily optimized. Automation could open up new transport models, especially in regional cargo, advanced air mobility, and electric-powered flight.
Aviation automation could be compared to the early days on the Internet: the biggest impact may not come from making current activities cheaper, but by creating new options that were previously unavailable.
What this means for energy markets
The narrative that is most commonly heard about transport automation is that machines will replace people. This is a narrow view. Software is replacing inefficiency.
Backhauls that are empty. Backhauls that are empty. River delays. Fuel waste. Preventable rail slowdowns. Unutilized aircraft. This inefficiency represents hidden energy consumption throughout the economy. Automating these losses is a direct way to reduce them.
Maintenance can be more proactive than reactive, and as transportation systems become smarter, they can smoothen freight movements, increase asset life, and improve logistics networks.
This could lead to an economy that is able to move significantly more goods, without having to increase?energy consumption proportionally.
NON-STOP LOGISTICS?
Fuel transitions is often referred to as energy transitions. History shows that productivity shifts are often the most important economic transformative factors.
Steam power was important because it multiplied human effort. Electricity increased productivity in factories and homes. Computing has reduced the cost to obtain information.
Transportation automation is part of that lineage. AI-assisted boats on the Mississippi and autonomous trucks in Texas are part of the U.S.'s freight system, which is designed to save time, reduce fuel consumption, and maximize output.
It may not matter whether trucks run on batteries, diesel or hydrogen. The question is whether trucks ever have to stop.
The opinions expressed are those of the columnist, author. This column is a great read! Open Interest (ROI) is your new essential source of global financial commentary. Follow ROI on LinkedIn, X and X. Listen to the Morning Bid podcast daily on Apple, Spotify or the app. Subscribe to the Morning Bid podcast and hear journalists discussing the latest news in finance and markets seven days a weeks.
(source: Reuters)