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China Eastern Airlines resumes flights as China and India restore air connections
China Eastern Airlines, a state-owned airline, will resume Shanghai to Delhi flights on November 9, according to the website of the airline. This comes as China and India resume their direct air links after a five year diplomatic freeze. According to the airline's ticketing platform, flights will be operated three times per week, on Wednesdays. Saturdays and Sundays. China Eastern Airlines didn't immediately respond to a request for comment sent via email. The Indian Foreign Ministry announced earlier this month the resumption of commercial flights between India and its neighbours after a 5-year-long freeze. The announcement came after Indian Prime Minister Narendra Modi visited China for the first time in seven years to attend a regional security summit of the Shanghai Cooperation Organisation. Both sides discussed how to improve their trade relations, and Modi expressed concern about India's growing bilateral trade deficit. The Indian and Chinese foreign ministers did not respond immediately to requests for comments on the Shanghai-Delhi flight. IndiGo, India's largest airline, announced previously that it would begin daily non-stop flight between Kolkata and Guangzhou. Guangzhou Baiyun International Airport, a state-backed airport, said that when IndiGo announced its plans to expand direct flights between Guangzhou (China) and Delhi (India), it would encourage airlines like IndiGo to offer more routes. After deadly clashes on their Himalayan border, the two countries suspended direct flights in 2020. This led to a long-lasting military standoff. (Reporting and editing by Tom Hogue; Amy Lv and Colleen howe)
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Ship tracking data shows Sinopec diverts supertanker away from US-sanctioned ports
According to Chinese consultants and ship tracking data, the latest U.S. sanction on a major Chinese crude terminal has forced Sinopec to divert one supertanker from its route and to ask certain plants to reduce crude processing rates. LSEG data revealed that a supertanker transporting oil to the Chinese Port of Rizhao, in Shandong Province, changed its destination at the weekend after U.S. sanctions were imposed on Friday on an import terminal located there. JLC Consultancy estimated that Sinopec’s October runs could drop by 3.36% compared to earlier plans, and may be around 5.16 million barrels a day. Sinopec has not responded to comments immediately. LSEG data revealed that the supertanker New Vista chartered by Sinopec’s trading arm Unipec, originally scheduled to discharge in Rizhao, on Sunday, has changed its destination to Ningbo or Zhoushan, for arrival on 15 October. New Vista is capable of carrying 2 million barrels and currently carries Abu Dhabi's Upper Zakum crude. The U.S. Treasury listed the Rizhao Shihua crude oil terminal, which is half owned by a Sinopec logistic unit, in a series of sanctions, including ships that transport Iranian crude and liquefied petrol gas. The U.S. announced that the terminal in Lanshan, in Shandong Province, a major Chinese oil refinery hub, had been sanctioned because it received Iranian oil aboard vessels sanctioned by the U.S. According to analysts and industry executives, one-fifth (or a fifth) of Sinopec’s crude oil imports passes through the Rizhao Terminal.
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Aeromexico, backed by Apollo, seeks a valuation of up to $2.9 Billion in US IPO
Grupo Aeromexico announced on Friday that it was aiming for a valuation up to $2.92billion in its U.S. Initial Public Offering, as the Mexican airline looks to go back public after more than two years. Aeromexico, based in Mexico City, and its existing shareholders seek up to $234.5 millions by offering 11,7 million American depositary shares priced between $18 and 20 each. After a successful bankruptcy reorganization, mature companies are often looking to return to the public markets. Aeromexico filed Chapter 11 bankruptcy in 2020, with $2 billion of debt. The pandemic had a major impact on travel demand. Aeromexico, which emerged from bankruptcy in 2022, is now backed by the alternative asset manager Apollo Global as well as U.S. carrier Delta. PAR Investment Partners, a private investment fund, intends to buy $25 million worth of Aeromexico stock in a simultaneous private placement. The price per share will be 95% of the IPO. Aeromexico was one of the first names to be used in the United States. IPO pipeline Publicly File paperwork In May 2024, LATAM Airlines, based in Chile Return to the Homepage After a $456,000,000 IPO, the New York Stock Exchange will be open in July 2024. PUBLIC MARKETS RETURN The legacy airline, founded in 1934 under the name Aeronaves was nationalized in 1959 by the Mexican Government. In 1971, it began operating under the name "Aeromexico". Aeromexico had been owned by the state for many decades, until 2007 when an investor group led by Citigroup bought it for $250 million. Bidding war Saba Family - The full-service carrier first went public in 2011, and traded on the Mexican Stock Exchange until 2022. Delisted As part of its bankruptcy restructuring. Aeromexico is a low-cost carrier that competes with Volaris, a low-cost airline focused on leisure and business passengers. Barclays, Morgan Stanley J.P. Morgan, and Evercore are all joint book-running managers. Aeromexico intends to list at the New York Stock Exchange using the symbol "AERO." (Reporting and editing by Anuj T. in Bengaluru, Arasu Kanagi Basil; Shrey Biswas).
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FAA: Boeing can increase 737 MAX production up to 42 planes per monthly
Boeing and the Federal Aviation Administration announced on Friday that the Federal Aviation Administration has lifted the 38-plane-per-month limit in place since January 2024. The FAA set the record-breaking production cap after an Alaska Airlines 737 MAX 9 was involved in a mid-air incident that occurred in 2024. Four key bolts were missing. This announcement marks a major milestone for the U.S. aircraft manufacturer, which has been thrown into a safety emergency following a mid-air accident. The FAA announced on Friday that its safety inspectors had "conducted extensive review of Boeing's manufacturing lines to ensure this small increase in production rate will be done safely." A person with knowledge of the situation said that FAA Administrator Bryan Bedford spoke to Boeing CEO Kelly Ortberg Friday to confirm that the planemaker was able to increase the rate up to 42 aircraft. Boeing will begin production of planes as soon as possible, at the rate of 42 per monthly. Boeing expressed its appreciation for "the work done by our team, suppliers and the FAA in order to ensure that we are ready to increase production while safety and quality is at the forefront." David Shepardson, reporting;
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Trump Administration freezes an additional $11 billion infrastructure spending as part of the shutdown fight
Russell Vought, the White House Budget Director, said that due to the government shutdown the Trump Administration will freeze an additional $11 billion in infrastructure projects for Democratic states. Vought announced on social media that the U.S. Army Corps of Engineers would halt work on projects of "low priority" in cities like New York, San Francisco and Boston. He said that the projects may be cancelled in the future. The White House Office of Management and Budget stated that President Donald Trump wants to "reorient the federal government's priorities for Army Corps projects." The Trump administration already has frozen At least $28 billion for transportation and energy projects in Democratic-controlled cities and states, as the president pressures his opponents in Congress to end the shutdown, which began October 1. Trump also vowed that he would cut "Democrat Agencies", and he has sought to eliminate 4,100 jobs in the federal government as a way to hurt his political opponents. OMB reported that the Army Corps' projects include a waterfront in San Francisco, bridge extensions in Cape Cod (Massachusetts), and water and waste-water systems in New York City. New York's projects account for 7 billion dollars of the total. OMB also said that other affected projects include those in Illinois, Maryland and New Mexico as well as Massachusetts, New Jersey, Rhode Island, Massachusetts, New Hampshire and Delaware. These states all voted against Trump at the 2024 presidential elections. OMB stated that many of the projects are located in "sanctuary jurisdictions", which have been able to resist the Trump administration’s immigration crackdown. The Army Corps didn't immediately respond to our request for comment. Reporting by Christian Martinez, David Shepardson and Andy Sullivan; editing by Cynthia Osterman and Andy Sullivan
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Sources say that FiberCop, a company backed by KKR, has filed a complaint with the EU regarding alleged Italian aid to KKR's rival.
Three sources familiar with the matter have confirmed that KKR-backed FiberCop, a telecom network company, has filed a complaint at the European Commission alleging Italy gave state aid to Open Fiber, in violation of EU competition laws. The complaint, in which it is alleged that Italy has altered the competition in the ultra-broadband sector, escalates a dispute between KKR, the U.S. Fund, and the Rome Government, Fibercop's co-shareholder. FiberCop sent an email to and confirmed that it had lodged a complaint at the EU. However, they did not provide any details. "FiberCop has brought to the European Commission's attention a number circumstances that it feels warrant scrutiny from the perspective of competition." All three companies, KKR, Open Fiber and the Italian Treasury declined to make any comments. The EU Commission didn't immediately respond to an inquiry for comment. KKR has a 37.5% stake in FiberCop which is Italy's largest telecom network. The government owns a 16.1% stake. The complaint filed by FiberCop on Monday targets a number of measures Italy took in 2024-2025 with regards to Open Fiber. Sources said that FiberCop's complaint estimated the value of the measures at up to 4.5 Billion Euros ($5.3 Billion). People said that the measures included direct grants, the extension and strengthening of concessions already in place, guarantees by the state on credit lines, as well as the suspension or reduction of fines for delays with state-sponsored fiber rollout plans. FiberCop claimed that the measures transferred economic and financial risk from Open Fiber to the state, in violation of EU competition laws. The EU was not informed about the measures. KKR is at odds with Italy over the future of FiberCop. FiberCop was sold to a KKR led consortium last year in a deal worth 19 billion euros. Sources told us earlier this week that the U.S. Fund is opposing Italy's efforts to combine FiberCop and Open Fiber, a smaller competitor controlled by CDP, a state investor, and Macquarie Australia, whose fund is Australian. CDP declined comment. Macquarie didn't immediately respond to an inquiry for comment. As part of the network-spin-off deal, a tie-up between FiberCop & Open Fiber could trigger an extra payment up to $2.55 billion from KKR. Open Fiber, the Italian company that was tasked almost a decade earlier with laying fibre optic cables throughout Italy, reported a loss of 364 million euros last year. It expects to reach a positive cashflow by 2028.
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Envoy Air is targeted by hacking campaign linked to Oracle
Envoy Air is the largest regional airline of American Airlines. The company confirmed that Envoy Air was hacked in the last few days, as part of a wave of extortion attacks by hackers who exploited Oracle E-Business Suite software, according to the company. In an email, a spokesperson for Irving, Texas based company that operates over 160 aircraft and 875 daily flights said that they are aware of the incident and have contacted the law enforcement authorities. The spokesperson stated that "we have reviewed the data in question and confirmed that no sensitive data or customer information was affected." A limited number of commercial and business contact details could have been compromised. This is the second company to confirm that it has been hacked. The hacking was a result from a campaign against Oracle E-Business Suite software, which was claimed by "CL0P," a group of cybercriminals who have a long history of extortion attacks on third-party software and service providers. CL0P posted American Airlines as a victim on its website late Thursday. It was unclear when the attack took place. CL0P failed to respond immediately to an email sent to the group's address. A spokesperson for American Airlines referred all questions regarding the hacking incident to Envoy Air. Google experts, an Alphabet unit, stated on October 9th that "massive amounts of customer data were stolen" in a hacking operation that began as long ago as three months. According to the Record, a cybersecurity news outlet, Harvard University confirmed that it was attacked in a similar manner earlier this week. (Reporting from AJ Vicens, Detroit; Editing and proofreading by Matthew Lewis.)
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Interfax reports that Russian Railways will cut managerial jobs due to the slowdown in the economy.
Interfax reported Friday that Russian Railways, the state-owned railway company in Russia, plans to cut management positions as it faces lower freight volumes, and a general slowdown of the Russian economy. The Russian industrial giants - from automakers and railways to producers of metals, coal and cement - are suffering due to a weakening demand at home, low cost Chinese imports, rising interest rates, and shrinking markets. Sources say that Russian Railways (which employs 700,000 people) has already asked its central office staff to take 3 unpaid days per month. Other Russian companies such as carmaker Avtovaz and cement maker Cemros, have reduced their working hours and terminated staff. Interfax reported that the company stated "the optimization of its management structure" aimed to improve efficiency in a context of declining work volume and a challenging economic situation. Russian Railways has not responded to a comment request. Interfax also stated that the first step will be to freeze hiring and eliminate existing vacancies.
Brazil lifts coal imports to record as hydro struck lingers: Maguire
Brazil is set to import almost 900,000 metric tons of thermal coal this month, the highest regular monthly tally on record and 3 times the monthly average for 2024 so far, according to data from shiptracking firm Kpler.
The coal buying binge comes as a long-lasting dry spell has slashed hydropower output to three-year lows, leaving power manufacturers short on power-generating fuels heading into the hottest months of the year when electricity need peaks.
Power firms have actually also raised imports of liquefied natural gas (LNG) to their greatest because late 2021, showing that a. high rise in fossil fuel-fired generation is looming in South. America's largest economy.
Greater usage of nonrenewable fuel sources will in turn lift Brazil's power. sector emissions, which are currently at their greatest because 2021.
HYDRO DISAPPOINTMENT
Hydro power generally represents around 65% of Brazil's. utility-scale electrical energy production, with hydro-electricity. generation balancing simply under 40 terawatt hours (TWh) a month. throughout the first half of 2024, Cinder data programs.
However, in September hydro output was up to simply 28.7 TWh as. a drop in rainfall from the year before hit dam output.
Cumulative rainfall in Brazil's southeast - home to many of. the nation's greatest dam systems - was just 584mm (23 inches). over the very first 10 months of the year, according to LSEG.
That was 10% less than the average from 2019 through 2023,. and marks the 2nd straight year of less than 600mm of rain. over the opening 10 months of the year.
The drop in real hydro output likewise cut hydro's share of. Brazil's generation mix to simply 50% in September, requiring power. providers to enhance output from alternate sources in order to. satisfy system demands.
TIDY CUT
While Brazil has one of the world's cleanest power systems,. utilities will likely rely on nonrenewable fuel sources to generate much of. the lost hydropower as output from gas and coal-fired power. plants can be quickly adjusted to stabilize system needs.
Up until now this year, hydro dams have actually created around 63% of. total electricity supplies, wind farms have represented around. 15%, while solar farms have actually produced around 10%.
Nuclear plants have actually represented an extra 2.5% share,. while bioenergy plants - which mainly burn sugar walking stick pulp -. have actually produced an extra 1.5%.
The cumulative share of power generation from clean sources. up until now in 2024 is 92%, which stays among the highest. internationally.
Nevertheless, the staying 8% share of generation has come from. nonrenewable fuel sources, which look primed to be used in even greater. volumes over the coming months if hydro output stays impeded.
Natural gas has actually generated around 6% of Brazil's electrical energy. up until now in 2024, while coal and oil-fired plants produced an. extra 2.2%.
PEAK NEED
A high climb in total power consumption is also putting. Brazil's power companies under pressure to lift output.
Brazil's electricity demand over the first nine months of. 2024 is up nearly 7% from the exact same months in 2023, which is the. strongest growth pace for that duration given that 2021 when the. nation's economy recovered from COVID-19-related restrictions.
However total power need is likely to climb higher still. heading into 2025 as homes, factories and offices all dial up. the use of power-hungry cooling systems throughout summer.
Average temperatures in Sao Paolo - Brazil's most populous. city - can balance over 10 degrees Fahrenheit (5.6 degrees. Celsius) more during November through February than throughout the. other months of the year, according to Weatherbase.
Those greater summer season temperature levels - which can top 30C (86F) -. tend to increase making use of air conditioning system all the time, and. stress power networks.
To satisfy those higher demand levels, energies look set to. lift output from the country's coal and gas-fired power plants,. which will be well stocked from the arranged imports of both. coal and LNG that are en path.
A sharp rebound in rainfall levels could assist bring back. output from dam networks and restrict the total usage of fossil. fuels in 2025.
But for the rest of 2024 a minimum of, considerably higher. generation from coal and gas looks imminent, and suggests a flare. up in local power emissions will follow. << The opinions revealed here are those of the author, a. writer .>
(source: Reuters)