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Spirit Airlines urges US not to accept JetBlue and United partnership
Spirit Airlines urged Tuesday the Transportation Department not to approve a JetBlue Airways-United Airlines partnership. Spirit Airlines said that it would be anticompetitive, and encourage other large airlines to do similar deals. United and JetBlue announced in May that their "Blue Sky," tie-up will allow travelers to earn and use points from their frequent flyer program interchangeably on the websites of both carriers. Spirit, a budget carrier, said that the JetBlue deal would make the smaller airline a "de facto vassal" of United. Spirit stated that "this anti-competitive tie up involving a legacy carrier dominant in the market will neutralize any competitive advantage of a low-fare competitor." JetBlue claimed that the filing "misrepresents Blue Sky, and twists facts about JetBlue's and United's plans to deliver services for customers." JetBlue stated that the agreement "doesn't include revenue sharing or schedule coordination." JetBlue and United are still competitors, as each company will continue to price and market flights under its own brand, using their own flight numbers. United declined to make a comment. In March 2024 JetBlue and Spirit are no more After a U.S. Judge blocked the deal due to anti-competition fears, a $3.8 billion merger was agreed. Spirit said that American Airlines and Delta Air Lines would "almost certainly" seek similar agreements if the partnership was approved. Smaller carriers could feel forced to join, creating a more concentrated industry. American and Delta have not yet commented. JetBlue has agreed to provide United with slots at New York’s John F. Kennedy International Airport, for up to seven round-trip daily flights beginning in 2027. JetBlue and United, the six largest U.S. carriers, will exchange eight flight times at Newark in New Jersey. United will move certain holiday and travel services over to JetBlue Paisley. JetBlue is seeking partners after a federal court judge blocked its Northeast Alliance American Airlines will be launching in 2023. JetBlue is struggling to achieve sustained profitability following the COVID-19 epidemic. In the last nine quarters, it has only managed to make a profit twice. (Reporting and editing by Franklin Paul, Leslie Adler and David Shepardson)
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Black box of crashed Air India Jet still in India: ANI
The black box from the Air India plane that crashed in India, killing 271 people, is still there and being examined by an aircraft accident investigation team, according to ANI, citing Ram Mohan Naidu, the civil aviation minister. Naidu made his comments after a report in the media that the flight data recorder would be sent to the United States of America for analysis. According to a post by ANI on the social media platform X, Naidu stated that the black box of the crashed AI 171 plane is still in India. It is being examined and analyzed by the Aircraft Accident Investigation Bureau. The crash on June 12, in Ahmedabad in India, was the worst aviation accident in a decade. The Indian government announced on Thursday that the AAIB would make a "due evaluation" of technical, safety and other security concerns before deciding where to decode the recorders. Jennifer Homendy, chair of the U.S. National Transportation Safety Board, told Washington reporters on Tuesday that "excellent communication" had been established with the Indian Government, Ministry of Civil Aviation and our counterparts at the AAIB. Homendy refused to comment when asked where or when they will be read, if the recorders would be coming to the United States, or if officials have any concerns. Homendy explained that this is something to be resolved. When it comes to aviation, learning and obtaining information quickly after an incident is a crucial part of the investigation process. So, clearly, that's going help us glean additional information to ensure that, "Is there a security issue or safety defect that needs to addressed?" Homendy declined to comment whether either recorder was damaged. Reporting by Abhijith Gaapavaram, New Delhi; and David Shepardson, Washington. Editing by Andrew Heavens & Matthew Lewis.
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Senate Democrats reject Trump's nominee for head of Federal Aviation Administration
The Senate committee that oversees aviation, which is composed of senior Democrats, said on Tuesday that they would oppose the nomination to the Federal Aviation Administration of Bryan Bedford as CEO of Republic Airways. The top Democrat in the Commerce Committee and the ranking member of its aviation subcommittee Senator Tammy Duckworth have both said that they will vote against Bedford’s nomination at the Wednesday committee meeting. Bedford's refusal of to adhere to the 1,500 hour training rule for copilots was cited by both. Bedford refused to commit earlier this month to not change the rule on flight training. Bedford criticised the FAA in 2022 for rejecting Republic's petition because it only allowed 750 hours instead of 1,500. Bedford, a former administrator, said in a statement earlier this month: "I will never compromise safety." Bedford's spokesperson did not immediately respond to a request for comment. After a midair collision between an American Airlines jet and a U.S. Army chopper near Washington Reagan National Airport on January 29, calls to modernize our nation's air-traffic control system increased. The 67 passengers and crew aboard the aircraft were all killed. In part, the regulations to increase flight hours for copilots were a result of the February 2009 crash in Upstate New York of Colgan Air Flight 3404 that killed 50 people. This was the last fatal U.S. passenger airline crash until the mid-air collision of January. Bedford has strongly criticized the FAA for serious issues with leadership, culture and trust. Maintain strict oversight of Boeing Mike Whitaker was unanimously elected as FAA Administrator. Confirmed to a 5-year term by October 2023 When Trump became president, on January 20, he resigned. The Trump administration Wants at least $20 billion Redesigning air traffic control The FAA has facilities that are at least 50 years old. Aging systems have caused delays on numerous occasions. Flights have been delayed by a persistent controller shortage. Many controllers work six-day weekends and mandatory overtime. (Reporting and editing by Deepa Babyington, Deepa Shepardson)
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US envoy plays down Africa tariff, visa concerns, reaffirms Lobito rail commitment
The top U.S. Diplomat for Africa dismissed Tuesday allegations of unfair U.S. Trade Practices and said that delays in funding would not derail an important railway project connecting Angola with Zambia and the Democratic Republic of Congo. African Union officials questioned on Monday how Africa could strengthen trade ties with America under what they called abusive tariff proposals and tightening of visa conditions that primarily target travellers from Africa. "There is not a visitation ban," said Ambassador Troy Fitrell during a Luanda Business Summit press conference. He stated that the U.S. Consulates continue to issue visas, though some have shorter validity periods because of concerns about overstays. Since late 2023, several African business and political leaders are concerned about the sharp decline in visa approvals. This is especially true for travelers from West Africa. Washington's tariff plans also contributed to the cooling of diplomatic relations with African countries. Some economies, including Lesotho Madagascar, warned that even an initial 10% tax could threaten vital exports like apparel and minerals. Fitrell, however, said that the proposed U.S. tariffs on imports had not yet been implemented and that negotiations were underway to create a more mutually beneficial trading environment, such as through the renewal the African Growth and Opportunity Act. The initiative, which grants duty-free access for African countries to the U.S. Market and expires in September, will grant qualifying African nations duty free access. Fitrell reaffirmed the commitment of his country to the Lobito Corridor Railway Project, which connects the coast of Angola to Zambia's copper-rich region and the Democratic Republic of Congo. He said that the initiative was not in danger, calling it a "win-win situation" for U.S. Investors and African economies. He also highlighted its importance for regional integration. The Trump administration is cutting back on U.S. aid to Africa as part of its plan to cut down on wasteful spending. Joao Lourenco said that U.S. businesses should move away from aid and instead focus on partnerships based on investment, while addressing over 2,000 leaders in government and business at the summit. Lourenco stated that it was time to replace aid logic with investment and trade logic. He urged diversification in sectors like automotive manufacturing, shipbuilding and tourism as well as cement and steel production. Reporting by Miguel Gomes. Colleen Goko wrote the article. (Editing by Alessandro Parodi, Mark Potter and Mark Potter).
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Official: 400 passengers left Israel via US-assisted flights
A senior State Department official stated on Tuesday that the United States had helped around 400 U.S. Citizens and others fly out of Israel amid conflict with Iran since Saturday. They hope to accommodate even more in the days to come. "We are very aware that there is still capacity and that U.S. citizens still want to leave Israel. The airspace has not been reliably opened. The official stated that the situation is "extremely dynamic". An official stated that the State Department now shares information with 27,000 people about safety and security in the region, as well as leaving it. This is up from the 25,000 who received the same information last week. On Saturday, the U.S. began limited assisted departure flights for U.S. Citizens, Lawful Permanent Residents and their immediate families. Officials said that thousands of Israelis had left Israel by land for Jordan and several hundred others had left via Egypt in the last two days. A few thousand Americans have travelled to Cyprus by ship, mostly through Birthright and other private groups. The official confirmed that hundreds of Iranians have left through Azerbaijan. Turkmenistan had been preventing U.S. citizens from entering the country, but has now allowed them to enter after diplomatic efforts over the weekend. The State Department has heard reports that a few Americans have been detained by Iranian authorities in this case, but the official did not provide any additional information. Donald Trump, the U.S. president, announced on Monday Israel and Iran reached a ceasefire agreement despite violations being reported. Israel launched a surprise strike on Iran's nuclear sites on June 13 and killed the top military commander. In Israel, 28 people have been killed by retaliatory rocket strikes. Reporting by Daphne Psaledakis, Editing by Kevin Liffey
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US safety board criticizes Boeing and FAA for 737 MAX panel blowout
Officials said that a U.S. National Transportation Safety Board (NTSB) investigation found that Boeing's ineffective actions and the Federal Aviation Administration's ineffective oversight led to a midair cabin panel explosion of a new 737 MAX 9 in January 2024, which spun the planemaker in a major crisis. The board criticised Boeing's safety culture, and its failure to properly install four bolts on a new Alaska Airlines MAX 9 plane. The NTSB chair Jennifer Homendy stated at a Tuesday meeting to determine the probable causes that the accident was completely avoidable. She said that Boeing should have addressed the unauthorized production work that was identified by numerous Boeing internal audits reports, quality alerts, and regulatory compliance issues long ago. Homendy stated that "the safety deficiencies which led to this incident should have been obvious to Boeing and the FAA." It's a miracle no one was killed or suffered serious injuries. The accident led the Justice Department (JD) to launch a criminal probe and declare Boeing in violation of a deferred prosecution 2021 agreement. Dave Calhoun, the CEO of Boeing, announced that he would resign within a few month after the mid-air panels blew out. Homendy praised the new Boeing CEO Kelly Ortberg, but added that "he's got his work cut out, there are a lot challenges to be addressed, and it will take time." The incident severely damaged Boeing's image and resulted in the MAX 9 being grounded for two weeks. In addition, the FAA imposed a monthly production limit of 38 aircraft by the FAA. This cap is still in place. Boeing did not create any paperwork to document the removal or reinstallation of the 737 MAX 9 emergency exit door plug – a metal piece shaped like a small door – during production. The NTSB also stated that Boeing was unaware of which employees were involved. Boeing has not commented on the meeting. Michael Whitaker, the then FAA administrator in June 2024, said the agency had been "too hands-off" with Boeing oversight. It has increased the number of inspections at Spirit AeroSystems and Boeing factories. Boeing agreed to plead guilty last July to a criminal conspiracy charge following two fatal 737 MAX crash in Indonesia and Ethiopia. Last month, it struck a deal to avoid a plea of guilty with the Justice Department. The Justice Department asked a court to approve the agreement, which would allow Boeing to avoid having to plead guilty or face oversight by an external monitor. However, it will also require that Boeing pay an extra $444.5 in a fund for crash victims to be split equally between each crash victim. (Reporting and editing by Jamie Freed, Margueritachoy and David Shepardson)
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El Al increases flights to bring back stranded passengers following the Iran-Israel ceasefire
El Al Israel Airlines has announced that it is working to organize an airlift for tens and thousands of passengers who have been stranded in Israel due to widespread flight cancellations since the beginning of the Israel-Iran War on June 13. El Al, Israel’s flag carrier, announced that following a 12-day ceasefire, and the gradual opening up of Ben Gurion Airport in Tel Aviv, the airline would increase its schedule and use its entire fleet, and add thousands of additional seats within the next 24 hour. The airline, which cancelled all regular flights until June 27, said that it would offer one-way flights to and from New York City, Los Angeles (Bangkok), London (Paris), Rome, Athens (Bucharest), Bucharest, Tbilisi, Bangkok, Bucharest, Bucharest, Bucharest, Bucharest, Bucharest, Bucharest, Bucharest, Bucharest, Tbilisi. Israel's airspace was largely closed for nearly two weeks as Israel and Iran exchanged air attacks. However, Israeli carriers began rescuing passengers in the last few days. Flight frequencies increased Tuesday, after U.S. president Donald Trump announced an agreement between Israel and Iran on a ceasefire. Israel has not yet fully opened its airspace. El Al's fleet consists of Boeing 787 Dreamliner aircraft and 737 aircraft. Israel's Airports Authority said earlier that day it was working to return to normal operations in the next few hours and was working with all airlines and partners in Israel's airports, "to ensure a safe and orderly process for passengers." Other smaller Israeli carriers also operated rescue flights. Arkia Airlines reported that it was returning passengers from Milan, Athens and Vienna, as well as Larnaca, Cyprus. Israir will operate flights on Wednesday from Varna in Bulgaria and on Friday from Baku. Israel is also working to allow nearly 40,000 tourists leave Israel. Many left Israel via the border crossings to Egypt and Jordan as well as by boat to Cyprus.
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US and European airline shares rise amid hopes for an Israel-Iran truce
On Tuesday, shares of U.S. airlines and European airlines increased while oil prices fell on the expectation that a ceasefire would be maintained between Israel and Iran. Air France KLM and British Airways' owner, Lufthansa, all saw gains between 6-10%, while Wizz Air grew by 3.2%. In the morning, Delta Air Lines, American Airlines and United Airlines all saw gains of about 4%. The U.S. president said that Israel has stopped its attack after his order to maintain a ceasefire of several hours. Iranian and Israeli media both reported that Israel had launched new airstrikes on Iran just minutes after Trump's comments, before he left for The Hague to attend a NATO summit. Susannah Streeter is the head of money markets and currency at Hargreaves-Lansdown. As several countries shut down their airspace following the attack on Al Udeid U.S. base in Qatar by Iran, airlines worldwide have cancelled flights to many Middle Eastern destinations including major international hubs like Dubai and Doha. Qatar and the United Arab Emirates reopened since their airspace. Russ Mould, investment director at AJ Bell, said: "Travel stocks have moved higher both because of the implications on fuel costs as well as because the potential impact to foreign travel that could have been caused by any further escalation in Middle East tensions has seemed to be swerved." The Energy Stocks Take a Hit The oil majors were hit hard after crude prices dropped to their lowest level in two weeks. In the last seven days, oil has lost 10% of its value. In a recent note, Mukesh SAHDEV, Rystad's global head of commodities markets, stated that a de-escalation of tensions was more likely to occur than a complete blockade of Strait of Hormuz, which would have caused a spike in oil price. Assuming the ceasefire is maintained, we expect the oil price to remain near $70 per barrel until a US-Iran agreement becomes clear. European energy stocks fell 3%. BP and Shell were down around 5% each, while Equinor in Norway was down around 7%. Exxon shares were down about 1%, and Chevron's as well.
Angola, Zambia push Lobito Corridor rail project as financing talks advance
Frank Tayali, Minister of Transport in Zambia, said that Zambia hopes to begin work on the Lobito Corridor Railway connecting its copperbelt to Angola’s Atlantic coast before the third quarter 2026. The project is moving forward amid ongoing financing negotiations.
The corridor will connect Zambia's Chingola to Angola Benguela Railway Line at Luacano. It is expected to stretch over 530 km, and it will serve as an important export route for agricultural products and copper.
Tayali, speaking on the sidelines the U.S. - Africa summit in Luanda expressed optimism regarding the multilateral project. He noted the interest of regional stakeholders, the United States and the European Union.
Tayali said, "We've got a developer working with the Africa Finance Corporation to resolve the financial issues and things look very promising." "This is a monumental project, and we are confident in its ability to reduce global food insecurity as well as unlock Africa's arid lands for agriculture."
Jose Massano, Angola’s Minister of state for Economic Coordination, said that the government is committed to facilitating investment like the Lobito Corridor via private sector negotiations. However he ruled out government funding directly for the project. The talks have been focused on clauses in concession contracts, such as potential guarantees requested by financiers.
Massano explained that "we may need to adjust one or two clauses in order to improve the relationship between financiers and operators." Massano said that although these processes are lengthy, the commitment to see them through is strong.
Massano confirmed that Angola has made progress on the planned World Bank funding of $500 million, and the requirements are expected to be met by the end the year.
Massano spoke about Angola's fiscal outlook in the face of volatile oil prices. Massano noted at the Monday summit that oil prices over $70 per barrel, which aligned Angola's budget forecast for 2025, had provided temporary relief to implement economic and social programs.
The oil price fell dramatically on Tuesday, causing Angola to be uncertain about its fiscal projections. Oil prices fell to a two-week minimum on Tuesday, after Israel accepted the proposal of U.S. president Donald Trump for a ceasefire between Iran and Israel. This eased concerns over disruptions to supply in the Middle East.
Brent crude futures fell $2.48 or 3.5% to $69 per barrel at 0927 GMT. U.S. West Texas Intermediate Crude fell $2.37 or 3.5% to $66.14. Massano responded that Angola is open to dialogue, including with the International Monetary Fund to consolidate the public finances, if needed. (Reporting and writing by Miguel Gomes; editing by David Evans).
(source: Reuters)