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Travel along the U.S. Eastern Seaboard is disrupted by heavy downpours and flash flooding
On Thursday, New York Governor Kathy Hochul declared a state of emergency in areas that were threatened by flash floods due to heavy rains. This was a result of the disruption of rail and air travel on the Eastern Seaboard. The National Weather Service issued flash flood warnings in parts of the Northeast urban area stretching from Washington-Baltimore to Philadelphia, Wilmington and Newark (New Jersey) and New York City. The Interstate-95 corridor was also under severe thunderstorm warnings. Stormy weather was a major factor in disrupting commercial flights across the Northeast Thursday. The eight major airports serving the region - Washington Dulles, Baltimore-Washington, Ronald Reagan Washington National, Philadelphia, Newark Liberty, LaGuardia, John F. Kennedy International and Boston Logan - accounted for the cancellation of at least 1,170 airline flights into, out of or within the U.S., according to online flight tracking service FlightAware. Amtrak reported that passenger rail travel between Philadelphia and Wilmington was also affected by severe storms, which caused high water levels to flood the track. The Weather Prediction Center's daily rainfall forecast map shows that the risk of "excessive showers" capable of triggering a flash flood is 40% or more for an area of the mid-Atlantic region and Northeast, which has 37 million residents. Hochul said that the most intense bands of showers could bring up to 5 inches (12 cm) of rainfall across New York City and Long Island, as well as the Hudson River Valley. The rainfall rate may exceed 2 inches an hour. Hochul said, "I urge all New Yorkers stay vigilant, be informed and exercise caution, as we are expecting excessive rain with the possibility of flash flooding." In a statement, Tahesha Wad, the acting Governor of New Jersey, said that New Jersey should expect rainfall totals between 1 and 3 inches in general, but localized downpours could reach 5 to 7 inches. She warned that extreme rainfall in New Jersey could cause landslides and rock slides, as well as flash flooding on roadways. The damaging winds of thunderstorms would also pose additional dangers. Way, lieutenant-governor, issued a statement saying that residents should stay off the roads, and inside, unless it is absolutely necessary. She temporarily serves as the chief executive of the state while Governor Phil Murphy is on vacation. The Weather Service said that the storm threat was due to a frontal cold system bringing an unstable air mass, as well as a large amount of atmospheric moisture. Reporting by Joseph Ax, Los Angeles; Additional reporting by Steve Gorman; Editing by Sandra Maler & David Gregorio
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Southwest Airlines names Doug Brooks board chairman
Southwest Airlines announced on Thursday that Doug Brooks, an insider, will be the new independent chairman of its board. This appointment takes effect August 1. Rakesh Giangwal, who was previously the chairman, resigned due to other commitments, unrelated to Southwest Airlines, but remained on board. He became board chair last November. Southwest announced the formation of a "Fleet Oversight Committee", which will assist the board with its oversight of the airline's fleet acquisition strategy. Gangwal will serve as the chair of this committee. The company announced that Gangwal would continue to serve as a member of the Finance and Nomination & Corporate Governance committees. Brooks was previously the chief executive of Brinker international. He has been a director with the airline since 2010. Southwest is still struggling to get its bearings after the COVID-19 Pandemic. The company's poor earnings have increased pressure on it to change its business model. Southwest Airlines has made a number of changes. It ended the open-seating policy that had been central to the brand image of Southwest for over 50 years. They also introduced a new basic economy fares and in the last quarter began charging for checked baggage, ending an exclusive free policy. The trade war of Donald Trump has only exacerbated the challenges. Southwest Airlines, the biggest U.S. domestic airline, reduced its profit forecast for the year last week by up to $1.1 billion. Reporting by Rajesh Kumar Singh and AnshumanTripathy in Chicago; editing by Alan Barona
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FAA audit finds that SkyWest maintenance issues are not resolved by FAA
A government report on Thursday said that the Federal Aviation Administration failed to address persistent problems with SkyWest Airlines maintenance practices, which its inspectors feared could lead to an accident. SkyWest, the largest regional airline in the United States, operates flights for United Airlines as well as Delta Air Lines and American Airlines. A report by the Transportation Department Office of Inspector General found that FAA safety inspectors had been unable to resolve issues related to SkyWest's remote maintenance practices over a period of more than four year. The report stated that under this practice, which was introduced in 2018, SkyWest or contracted mechanics who perform maintenance at an aircraft's location are overseen by centrally located maintenance control at SkyWest headquarters in Utah. According to the audit, FAA inspectors discovered that SkyWest "inappropriately delayed maintenance for items on SkyWest's minimum equipment list, dispatched aircraft for flights without requiring inspections, used pilots for maintenance tasks not authorized in SkyWest’s maintenance manuals." SkyWest stated that it is committed to maintaining high standards of safety and conformity in all areas of its operation. It also said that it had taken a number of actions to assist the FAA in "identifying and resolving any issues with either our processes or SkyWest's Safety efforts." The FAA has worked to resolve 32 issues with SkyWest since 2021. According to the report, at the time the inspector general conducted its analysis in 2010, the FAA had already resolved 26 issues. However, non-compliance with SkyWest's practices for remote return-to service maintenance remained. Despite the fact that several FAA inspectors had identified similar systemic hazards, it was not until two years later that an agency-wide review of systemic risks began. The report stated that FAA inspectors are frustrated by the delay in their work and "concerned about how remote maintenance practices of the airline could lead to an accident." The FAA stated that it agrees with six out of seven recommendations, and plans to implement them before July 2026. The FAA also acknowledged that delays in submitting submissions can affect safety assessments. A report stated that an accident occurred in New York on March 20, 2020. The accident revealed pilots performing unauthorized maintenance procedures. The report said that in 2023, the remote return-to service maintenance actions could have led to flights not meeting FAA safety standards. The report mentioned an aircraft that was released for flight with no required operational altimeter, and another flight which included a fuel fault warning message improperly delayed. (Reporting and editing by Alexandra Hudson, Jamie Freed and David Shepardson)
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Uber claims some sexual assault accusers presented fake receipts
Uber found that in more than 100 cases, passengers who accused its drivers of sexual assault or harassment provided phony or doctored receipts as proof or failed to explain why they could not provide receipts. Uber filed a court document on Wednesday urging U.S. district judge Charles Breyer to order that 21 plaintiffs who have receipts they are not sure of should justify their claims, and 90 plaintiffs without receipts provide them, or give "non boilerplate" reasons as to why they were absent. Court documents show that at least 11 law firms are representing the plaintiffs. The plaintiffs were not charged with any wrongdoing. Uber is trying its best to limit its liability in the nationwide federal litigation, which includes more than 2,450 lawsuits alleging misconduct by drivers. San Francisco's company is facing several hundred more lawsuits at San Francisco Superior Court. In a joint press release, lawyers Rachel Abrams (lead federal litigation for plaintiffs), Sarah London, and Roopal Luhana said that they take Uber's claims seriously. Uber has said that it knows that some victims of sexual assault may not have receipts, because they ordered their ride from someone else. The increased risk that guests face when assaulted makes Uber's emphasis on documentation "more disturbing." Uber maintains that it is not liable for the criminal acts of drivers who connect with its passengers and that background checks and disclosures are sufficient. Breyer dismissed on July 8 some claims of fraud and liability based upon ads that promoted Uber's ridesharing service as an alternative to drunken driving. Uber's Wednesday filing revealed that some fake receipts appeared to have been generated by third-party websites. Uber claimed that some receipts had math errors, bogus surcharges or were timestamped before the ride occurred. They also said they contained stray marks or did not match their own formatting. The company stated that one plaintiff had submitted two receipts, and two plaintiffs had submitted different versions of a receipt. Uber stated that honesty is the most important factor in maintaining the integrity of our court system. It is hard to imagine a more grave act of misconduct than the fabrication of evidence by plaintiffs in this case. In re Uber Technologies Inc. Passenger Sexual Assault Case, U.S. District Court Northern District of California No. 23-03084. Reporting by Jonathan Stempel, New York Editing Rod Nickel
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Embraer escaped Trump's tariff blitz with flying colors
E mbraer avoided a major revenue hit on Wednesday, when U.S. president Donald Trump exempted aircraft from the higher tariffs he imposed against many Brazilian products. Embraer, along with its U.S. partner companies, argued that Trump's 50% tariffs would disrupt local businesses and deliveries. They also argued that Embraer's Brazilian jets were essential for regional flights within the United States. Four airline officials said that U.S. carriers privately asked the Trump administration to exempt Brazilian aircraft exports from higher tariffs. Envoy Air Piedmont Airlines Republic Airways and regional carriers Envoy Air and Piedmont Airlines wrote to the Commerce Department expressing concerns. Francisco Gomes Neto, CEO of Embraer, rushed to meet several high-ranking officials in the Trump administration. He told Valor Economico that among those officials were Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick. The main argument was simple: Embraer is a major employer in the U.S. and the largest aviation market in the world has no substitute for the E175 jetliner. This is the only jet produced today that meets the clause in labor agreements which prohibits planes with a weight of more than 86,000 pounds or 76 seats to be flown on regional routes. Embraer is awaiting the delivery of 200 E175 aircraft to U.S. carriers including American Airlines Group SkyWest Alaska Air Group Republic. U.S. customers also purchase 70% of its executive aircraft. SkyWest warned analysts in a conference call last week that they were not willing to pay for a tariff of 50% on new aircraft deliveries. They planned to work together with Embraer, and other partners, to delay the deliveries until the situation is resolved. Alaska said that it may also consider delaying deliveries. Analysts labelled Embraer as the main beneficiary of Trump’s exemptions after relief was received on Wednesday. This decision pushed Embraer's Sao Paulo traded shares up by more than 20% since their Wednesday lows. JPMorgan wrote in a client note that "given this news, JPMorgan expects Embraer to reach new highs." US TIES Gomes Neto stated earlier in the month that the impact of tariffs on Embraer could be similar to the COVID-19 Crisis, where Embraer saw its revenues fall by 30% and reduced its workforce around 20%. As Trump threatened levies, the Brazilian government was most concerned about the planemaker. Sources familiar with the situation said that Brazilian officials asked Washington to exempt Embraer aircraft from the tariffs. Embraer tried to convince Trump that the United States would also benefit from a reprieve. The company emphasized that it had approximately 3,000 employees in Brazil and its final assembly lines of executive jets are located there. 1 market. Embraer's aircraft are equipped with a large number of parts from the United States, including General Electric engines. The company estimated in a report earlier this month that it could purchase up to $21 billion of U.S.-made products between now and 2030. In a Wednesday statement, Embraer praised Trump's decision. It said that the decision confirmed the positive impact of the Brazilian economy and the strategic importance to the U.S. The 10% tariff will remain in place for Brazilian products. The firm stated that the tariffs were harmful but manageable and pledged to continue advocating for zero-tariff policies. SkyWest stated that due to the E175's U.S.-made components, the actual levies would be between one third and half of 10%. Last week, American Airlines, one of its major clients, expressed optimism about the resolution of the situation. In an interview conducted last week, CFO Devon May said that a tariff rate of 50% did not make any sense. He said: "I believe the administration understands Embraer's importance to North American carriers, and to our economy. So hopefully we can get to a more favorable position there." Robert Isom, CEO of Embraer, told analysts in a conference call that he had made sure the company and its administration were aware of their interests. Reporting by Gabriel Araujo, in Sao Paulo; David Shepardson, in Washington; Lisandra Paraguassu, in Brasilia; Tim Hepher, in Paris and Rajesh Kumar Singh, in Chicago. Editing by Manuela andreoni, Rosalba o'Brien.
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Britain looks at Heathrow expansion plans to increase growth
The British government is considering two competing multi-billion pound plans for a new runway at Heathrow, the country's largest airport. It hopes that this will help to kickstart economic development. In January, Finance Minister Rachel Reeves backed Heathrow's expansion in an effort to end years of indecision over environmental concerns. According to the government, airport expansions are not likely to derail net-zero targets because of the increased use by airlines of sustainable aviation fuel. Heathrow Airport, located west of London is Europe's busiest hub. It operates at maximum capacity and has a negative impact on the British economy. Heathrow's two runways are compared to four at Charles de Gaulle Airport in Paris, Frankfurt Airport and six at Schiphol Airport in Amsterdam. Heathrow Airport presented a proposal to the Government on Thursday for a new runway with an estimated price tag of 65 billion pounds (49 billion pounds). It said that it would be privately funded. The Arora Group which owns hotels and land around Heathrow said that its plan to build a new runway will cost less than 25 billion pounds, but this does not include the full development costs. Heathrow’s plan would see the infrastructure of the runway and airfield costing 21 billion pounds. The balance would be used to fund a new terminal and modernise existing infrastructure, as well as move a motorway. The government, which had indicated in February that it was inclined to expand Gatwick (the country's second-largest airport), will make its final decision by October 27. Both projects at Heathrow aim to have the new runway operational by 2035. Heathrow's plan involves a 3,500-metre-long runway (11,483 feet) and the construction of a tunnel for a section London's M25 autobahn. Arora plans to build a runway that is slightly shorter without moving the motorway. However, at 2,800 meters in length, the longest widebody jets would not be able to land on it. Heathrow, according to British Airways owner IAG, is currently one of the most costly airports in the entire world. They are worried that expansion will lead to higher fees. A spokesperson for IAG said that the airline supports a shorter runway. The spokesperson stated that avoiding the M25 crossing would reduce complexity, costs and provide better value to passengers. Department for Transport has said that the government will now review the submissions over the summer.
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NTSB questions the failure of controllers to alert jets before the January crash in Washington DC
On Thursday, the National Transportation Safety Board questioned why an air traffic controller failed to warn of a possible collision moments before the crash between an Army helicopter with an American Airlines regional plane that killed 67. The National Transportation Safety Board held a second hearing day on Thursday to examine issues at Ronald Reagan Washington National Airport prior to the collision that occurred over the Potomac River on January 29, 2018. The accident was the worst U.S. aviation disaster in over 20 years. NTSB and Federal Aviation Administration (FAA) officials stated that the controller should have issued a traffic warning to the passenger plane before the crash, but only gave it to the Army Black Hawk helicopter. Michael Graham, a member of the NTSB Board, said that the controller "should have warned the plane (American Airlines) about the traffic". Nick Fuller, a FAA official, said that the controller should've informed the American Airlines crew of the helicopter in the vicinity. In an interview with NTSB investigators published on Wednesday, the controller said that when asked why he didn't issue the alert to jet, he replied "I honestly did not think it would have made any difference." The NTSB cited an employee's memo from 2023, in which he questioned whether more flights should be added at the already overcrowded Reagan National Airport. FAA officials questioned if the arrival flight rate during certain 30-minute intervals was too high. You're telling that they still fly more operations today than you predicted in 2023? Todd Inman, a member of the NTSB Board, asked FAA Manager Bryan Lehman if he agreed. In April, the FAA announced that it was reviewing Reagan National’s arrival rate. This is concentrated disproportionately in the last 30 minutes each hour. Investigators from the NTSB also questioned the FAA about why they failed to test the alcohol levels of controllers at the time the accident occurred. On the first day, Wednesday, of the hearings, Jennifer Homendy, the NTSB chairperson criticized the FAA's failure to act. Homendy stated that "every sign was there" that there was a risk to safety, and the tower told you. "You moved people instead of accepting responsibility for the fact that everyone in FAA at the tower said there was a safety risk... Fix it. "Do better" The main runway of Reagan Airport is the busiest in the United States. The NTSB revealed that in 2022, members of the FAA's air traffic working group had recommended moving helicopter traffic from Reagan National Airport to other airborne "hotspots" but the idea was rejected as it was "too politically charged."
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Bloomberg News reported that CSX is working with Goldman Sachs in order to explore possible strategic options.
Bloomberg News reported Thursday that railroad operator CSX was working with Goldman Sachs in order to explore possible strategic options after a merger of its two main rivals. The report was based on people who were familiar with the situation. Union Pacific announced on Tuesday that it will buy the smaller rival Norfolk Southern for $85 billion. This deal will create the United States' first coast-to-coast rail freight operator, and transform the movement of goods across the nation from grains to automobiles. reported Last week, CSX announced that it was in discussions to hire financial advisors. CSX CEO Joe Hirichs stated on a call following the company's earnings last week that "we welcome any opportunity to provide value for our investors, drive progrowth and better serve our customers." Goldman Sachs didn't immediately respond to an inquiry for comment. CSX declined comment. (Reporting and editing by Tasim D'Silva and Anil D'Silva in Bengaluru)
Sources say that key Asian fuel exporters increased jet fuel sales in Europe to Europe during July.
According to data from shiptracking and industry sources, jet fuel exports to Europe from South Korea and China, as well as Southeast Asia, likely reached a record high for a number of years in July, when traders sold excess regional supplies to take advantage of higher European prices.
Three trade and shipping sources, including Vortexa, showed that the Asian exporters will ship between 600,000 and 775,000 metric tonnes (4.728-6.107 millions barrels) in aviation fuel into Europe this month. The majority of these are from China and South Korea.
Vortexa says the volume is at a nearly three-year high, while sources in the trade say it's highest since five years.
Exports from northeast Asia to Europe reached nearly 500,000 tonnes last month.
Exports to the West will continue to reduce Asia's glut of supply and help to limit price declines in Asia.
Ivan Mathews is Vortexa's Head of APAC Analysis. He expects that exports will ease up in August, as the arbitrage margins are narrowing.
Prices of jet fuel in Northwest Europe
After the Iran-Israel conflict, shipbroker SSY reported that the cost of shipping 90,000 tonnes of jet fuel via LR2 tanks fell from $4.4 millions in June to $3.75million in July.
Eurocontrol data showed that the number of flights in Europe is up 4% on a year-over-year basis and 3% above levels for 2019. This shows a robust demand.
Stockpiles of aviation fuel independently held in the Amsterdam-Rotterdam-Antwerp (ARA) refining and storage hub were at 745,000 tons last week, the lowest since February this year, data from Dutch consultancy Insights Global showed.
This level is lower than the average weekly volume for 2024, which is 881,000 tonnes.
Exports from China were also a big help. Industry estimates show that the world's largest refiner will ship more than 2.3 millions tons of aviation fuel in August, which is similar to what it did in July.
Analysts from FGE consultancy said that China's jet fuel and kerosene overall exports will remain high in the next few months, as top refiner Sinopec increases output at a time when domestic flight demand is plateauing.
Two China-based sources stated that jet fuel exports were the most profitable product for Chinese refiners, compared to other products.
(source: Reuters)