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The operator of the vessel says that a crew member of the attacked Dutch cargo ship died of injuries.
Spliethoff, the Amsterdam-based operator of the Dutch cargo vessel that was attacked last week by Houthis on the Gulf of Aden, announced in a Monday evening statement that a crew member of the ship had died from his injuries. The company didn't release any further information about the deceased crewmember, but a Dutch radio station reported that they were Filipino. A bomb exploded on Minervagracht in international waters of the Gulf of Aden, causing substantial damage to the vessel and a fire. Rescue of 19 crew members, including Russians, Filipinos, and Sri Lankans, was done by helicopter. The Houthis of Yemen claimed responsibility for the attack. Since 2023, the Iran-aligned group launched multiple attacks on ships in the Red Sea. They targeted vessels they believed were linked with Israel as a show of solidarity with Palestinians in response to Israel's Gaza war. Spliethoff also said that another crew member was still receiving medical treatment in Djibouti. His condition is stable and we anticipate that he will return to his home by the end of this week." (Reporting and editing by Raju Gopikrishnan; Charlotte Van Campenhout)
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Tesla is expected to launch a lower-cost Model Y to reignite the sales
Tesla will unveil a cheaper version of the Model Y SUV on Tuesday, as it tries to reverse declining sales and waning share in a world where competition is increasing. Elon Musk, the CEO of Tesla, has been promising mass-market vehicles for years. However, last year, he cancelled plans to build a brand new $25,000 electric vehicle, according to first reported. The car that will be delivered this week is a "affordable vehicle" based on existing manufacturing and design platforms. Tesla posted two videos on X at the weekend to ignite excitement among Tesla enthusiasts. The first video features headlights peeking out from the darkness, while the second shows a spinning wheel for a short time before displaying "10/7", which is the U.S. format of October 7. Contrary to the previous Tesla launches, neither Tesla nor its influencers have confirmed that a live event will be held. Analysts, investors, and Tesla fans still expect some sort of announcement. The car's cost, range and attempts to reduce costs are all major questions. Musk announced late last year that the car would be priced under the "key threshold", which is $30,000, including U.S. electric vehicle tax credits. The credit expired at the end last month in the United States. Prices jumped by about $7,500. This helped boost quarterly sales, which reached a record. However, it is expected that the pace of sales will drop for the remainder of the year unless an affordable car can be found. The desire to purchase the car is high. Musk stated in July that people simply don't have the money to purchase it. The more affordable the car is, the better. Musk originally promised that the production of the car would begin by the end June. Tesla said that they only produced "first builds" in July and added that the vehicle would be available to customers in the final three months of this year. Tesla is already struggling with the slowing of sales for its older lineup, as competition has increased rapidly, particularly in China and Europe. Musk's extreme right-wing political views have also undermined brand loyalty. Tesla released a new version of its Model Y earlier this year with improvements such as new light bars and a touchscreen on the rear. Musk is directing the company's focus towards artificial intelligence and robotaxis, with a particular emphasis on humanoid robotics. Tesla has announced that it will introduce more affordable vehicles to its lineup, but hasn't provided any details. The EV maker is also said to be planning to release a stripped down version of its Model 3 midsize car. Tesla will need affordable cars to deliver 20 million vehicles in the next decade. This is one of several operational and valuation benchmarks set by the board of directors as part of their proposed $1 trillion compensation package for Musk. (Reporting and editing by Peter Henderson, Richard Chang, and Abhirup Roy from San Francisco)
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As the shutdown continues, staffing issues are causing delays at US airports.
Staffing issues caused delays at Newark and Denver airports on Monday. This comes just hours after the U.S. Transportation Secretary said that the number of air traffic controllers who called in sick has increased since the shutdown began. The shutdown will not affect the 13,000 air traffic control officers and the 50,000 Transportation Security Administration agents who must continue to work. The controllers will miss their first pay on October 14 because they are not paid. Sean Duffy, Transportation Secretary, said that the staffing of air traffic has sometimes been reduced by 50% since last week's shutdown. According to the FAA, staffing problems at air traffic control are affecting flights in many airports, including Newark and Phoenix. Also, Denver, Las Vegas, Burbank, and Las Vegas have been affected. FlightAware reported that more than 4,00 U.S. flights were delayed on Monday, including 29% of arriving flights in Denver, 19% at Newark, and 15% at Las Vegas. Flights are also affected by weather issues. Donald Trump made transportation the focal point of a battle between him and the Democrats over a government shut down. He cut off $28 billion in aid to climate programs, subways and tunnels, and mass transit, in states that lean Democratic, including New York and Illinois. Duffy added that the reduction in staffing will cause delays. If sick calls rise, air traffic will flow at a pace that maintains safety. Duffy and the President of the National Air Traffic Controllers Association addressed a press event at Newark Liberty International Airport in order to discuss the impact of the shutdown. This airport, one of three in the heavily Democratic New York metro area, is also a major hub for United Airlines. Duffy said controllers are concerned. Duffy noted that controllers are worried. The union reminded employees on Monday that "participating" in a protest could lead to removal from federal employment and is illegal. The union reminded its members that it was more important than ever to continue providing the high level of service and consistency we offer every day. We cannot emphasize enough how important it is to avoid actions that may reflect badly on you, your union or our professions. The number of controllers and Transportation Security Administration (TSA) officers absent during the 35-day shutdown in 2019 increased as employees missed paychecks. This led to longer waits at checkpoints. The authorities were forced to reduce air traffic in New York to put pressure on legislators to end the standoff. Nancy Pelosi (a Democrat who was then the Speaker of the House) said that the shutdown "pushed our airspace to breaking point." Airlines for America, the airline trade group that represents United Airlines, Delta Air Lines and American Airlines, has warned of the possibility that, during a funding gap, "the system could slow down and reduce efficiency", which would impact travelers. Flights are being delayed due to a persistent shortage of controllers. Many are also working six-day work weeks and mandatory overtime. About 3,500 air traffic control positions are not enough to meet the FAA's target staffing level. Reporting by David Shepardson, Editing by Bill Berkrot and Nick Zieminski; Chris Reese, Lincoln Feast, Lincoln Feast, Chris Reese, Lincoln Feast, Lincoln Feast, Lincoln Feast, Lincoln Feast, Nick Zieminski.
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Turkish Airlines expects Pratt engine problems to last until mid-2027
Turkish Airlines (THY), its chief financial officer said on Monday, expects the bottlenecks that have caused dozens of Airbus jets to be grounded for months or longer will continue another two years. Due to Pratt & Whitney's unusually long repair wait times, the Turkish state carrier expects 45 Airbus aircraft will be grounded by 2025. The Turkish state carrier started the year with only 35 jets idle. "Next year it will be the same," Murat Seker, CFO of the International Society of Transport Aircraft Trading told a European Aircraft Conference hosted by ISTAT. He added that, in the last year, an average of 40 Airbus A320neo family jets were grounded because of maintenance backlogs. I think this will last at least until mid-2027. "We will have to ground a large number of aircraft." THY is not the only carrier affected by longer than usual repair turnaround times. Wizz Air in Hungary has also been affected. Seker stated that the average turnaround time was 200 days. He added that THY received "reasonable compensation" from Pratt & Whitney (part of U.S. aerospace company RTX Corp.). RTX didn't immediately respond to a comment request. RTX Corp's CEO Chris Calio said at a September conference that the number of aircraft grounded due to Pratt engine problems has stabilized and is expected to decrease, but "clearly, we have more to do". The company expects its maintenance, repair, and overhaul services to increase 30% over last year. According to industry sources, the jet shortages are causing a rise in air fares and prices for engine spares, which has led to difficult negotiations on maintenance contracts. Last month, THY announced a deal to buy 225 Boeing jets, including 150 of the 737 MAX. However, it said that this deal was contingent on a deal involving engines from French-US CFM. (Additional reporting from Allison Lampert, editing by Edward Tobin.)
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Urals differs stable, OPEC+ opts for modest production increase
Urals crude differentials remained unchanged on Monday after OPEC+’s planned production increases for November appeared to be less modest than expected. OPEC+ said that it will increase oil production by 137,000 barrels a day (bpd) from November, opting for a similar modest monthly rise as in October amid persistent concerns about a looming glut of supply. The oil price rose about $1 on Sunday, easing some supply concerns, but a weak outlook for the near term is likely to limit gains. Two industry sources reported on Monday that the Kirishi oil refining plant, one of Russia’s largest, had halted its most productive crude distillation unit (CDU-6), following a drone strike and fire on October 4. The unit’s recovery is expected to take a little over a month. A government official said on Monday that there is sufficient supply of Russian crude oil on the market for Indian refiners, as Ukraine's attack on Russia's energy infrastructure has reduced its refining capability and made more crude readily available. PLATTS WINDOW On Monday, there were no bids or offers made on Urals, Azeri BTC Blend or CPC blend in the Platts Window. Authorities in the region said that a drone from Ukraine targeted the Rosneft controlled Tuapse refinery, located in southern Russia's Krasnodar Region, overnight. The drones caused a fire to break out at a building used by security personnel, but it was quickly put out. (Reporting and Editing by Matthew Lewis).
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Citigroup prefers Banamex's IPO plan despite new offer from Grupo Mexico
Citigroup said it still intends to pursue an IPO of its Mexican retail division, despite receiving a fresh offer from mining and transportation conglomerate Grupo México. Citi Last month, Banamex sold a 25% stake to Fernando Chico Pardo - a local billionaire who is the chairman of airport operator ASUR - for 0.8 times its book value. The bank stated that "we remain committed to realizing Banamex's full value for our shareholders and that the agreement with Fernando Chico Pardo, as well as the proposed IPO, continues to be our preferred way to achieve this outcome." "We will, of course, review Grupo Mexico’s offer responsibly and take into account, among other factors, the ability to receive required regulatory approvals, and the certainty that a proposed transaction can be closed." Citi will also be contacting top Mexican investors over the next few months. Buy minority stakes It said that its size was smaller than Pardo’s last month. German Larrea's Grupo Mexico has offered to purchase Citi's retail division more than two years since it scrapped its previous plans. Larrea retracted the offer at the time due to tensions between the administrations of Andres Lopez Obrador and the then-president. Grupo Mexico said that under its offer it would buy 25% of Banamex for 0.85x its book value and the remaining 75% for 0.80x its book value. This would be a slightly higher price than the Pardo offer. In late morning trading, Grupo Mexico's shares dropped more than 15 percent. According to a source familiar with previous negotiations who declined to identify themselves, even before the tensions with government, Larrea's talks had been delayed repeatedly. Source: Citi is aiming for a higher IPO than the valuation set by Pardo. This is seen as a minimum price of the shares. The slightly higher price offered Grupo Mexico will not be a deciding element. Citi paid $12.5 Billion for Banamex back in 2001. Bradesco analyst Rodolfo RAMOS wrote in a Bradesco report that the offer could spark a bidding battle. Ramos writes that "Larrea’s size of wallet reduces the likelihood Chico will have to counter-offer, perhaps with other business groups. But Citi's next step will likely determine how we move forward from here." The media perception of the two billionaires has been clear. Both have avoided public scrutiny and were less visible. However, Larrea never gave up a legal battle, while Chico is only known to those who closely follow Mexico's aviation industry. Ramos said that if Larrea increases its bid for Grupo Mexico, the shares could become volatile. (Reporting and editing by Lananh Nguyen, Nick Zieminski, Diego Ore, Mexico City)
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Embraer completes sale of military cargo aircraft to Sweden as part of NATO's latest push
The Brazilian planemaker Embraer signed a deal with Sweden on Monday for the sale of four military cargo aircraft to replace Sweden's aged aircraft. This is the latest in a program to procure planes jointly with other countries from the region. Sweden has decided to purchase Embraer C-390 Millennium aircraft, after choosing the model in 2011. The Netherlands is leading the agreement as the agent and representative of the other countries involved in the strategic partnership. Bosco da Costa junior, Embraer's head of defense, said in an exclusive interview: "Under this contract the Netherlands added seven additional aircraft for allies." "This government-to-government process speeds up the purchasing process here in Europe." The shares of the Brazilian planemaker rose by around 3% during the afternoon trade, making it among the top gainers in Brazil's Bovespa Index. Analysts at BTG Pactual called the Swedish order a "positive shock" because it included an option to purchase seven more aircraft. Brazil, meanwhile, is increasing its fleet of Gripen jet fighters made by Swedish planemaker Saab. Since 2023, Saab has been working with Embraer to produce Gripens in Brazil. Costa said that the first made in Brazil Gripen will be delivered early next year. Embraer is working to expand the defense market abroad, mostly through C-390 sales. Costa stated that he hoped to make new announcements very soon. Brazilian Defense Minister Jose Mucio suggested that Finland and Turkey may purchase Embraer aircraft. Costa commented, "Minister Mucio says always wise things." "I hope that he's right again this time." U.S. INTENTIONS Embraer is longing to break into the U.S. Market, but tariffs on its planes imports could derail those plans. Although U.S. president Donald Trump exempted Brazilian aircraft from a tariff of 50%, the 10% previously imposed on them still stands. The planemaker lobbied for tariff relief after a U.S. and European Union aircraft deal. Embraer, as part of its bid to be exempted from the tax, has proposed building a $500 million U.S. Assembly Line for the KC-390 if the country decides to buy the military jet. The KC-390 is in direct competition with the C-130 Hercules, which is manufactured by Lockheed Martin. Costa stated that "we have been very vocal in expressing our interest in assembling and manufacturing the KC-390 here in the U.S." Northrop Grumman has the ability to assist Embraer in developing the aircraft here in the U.S., as the executive previously stated. Maybe we can announce the partner to the market before the end of the calendar year. Costa stated that this is what they are working towards. (Reporting and Additional Reporting by Isabel Teles, Writing by Kylie Madry, Editing by Richard Chang).
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US announces that subsidies for rural airlines service will expire on Sunday
A partial government shutdown is causing the Trump administration to announce that funding for a U.S. Government program that subsidises commercial air service at rural airports will expire on Sunday. The U.S. Transportation Department has said that the subsidies under the Essential Air Service Program are set to expire on Sunday, after it transferred funding unrelated from the Federal Aviation Administration in advance. The Department is currently in the process to notify carriers of the shortfall, and alert communities of potential impacts. About $350 million is allocated to the government annually. In May, the White House cut funding for Essential Air Service by $308 millions. This service is very popular among Republican legislators because it offers services in rural areas, which are largely Republican. The White House had proposed to kill the Essential Air Service Program during the first Trump Administration, but Congress chose to increase funding. The program usually subsidises two round-trips a day on aircraft with 30 to 50 seats, or more frequent flights with smaller aircraft. According to the department, under the program, approximately 65 Alaskan communities receive service as well as 112 other communities in the 49 states and Puerto Rico who would not otherwise receive airline service. At a recent press conference, Transportation Secretary Sean Duffy stated that "every state in the nation will be affected." He also noted bipartisan support. "We do not have the funds to continue this program." (Reporting and editing by David Shepardson)
CBS News reports that three people were injured in a helicopter crash on the Sacramento Freeway.
CBS News, citing Sacramento Fire Department, reported that three people were seriously injured when a helicopter crashed onto a freeway on Monday night in Sacramento, California.
Sacramento Fire Department and Federal Aviation Administration didn't immediately respond to our request for comment.
The report stated that the helicopter was an air medical helicopter and that it crashed on the eastbound lanes near Howe Avenue.
The report said it was still unclear if the helicopter had been traveling to or away from a local hospital.
CBS reported that the cause of this crash is still under investigation.
Sacramento Mayor Kevin McCarty posted on X that a helicopter crashed on 50 eastbound, west of 59th Street. He added that the survivors were being treated in local hospitals.
(source: Reuters)