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Air Canada reports a surge in overseas business travel after U.S. Trade Tensions
Air Canada is seeing a 30% increase in corporate travel as it seeks to diversify its trade away from the United States. This has fueled demand for international 'travel', according to a company executive. Analysts reported that "we're seeing a lot of growth in corporate demand on the North Atlantic. We are seeing almost a 30 percent increase in corporate traffic to Europe and the Pacific, and we attribute a part of that to Canada being able to diversify trade routes." Canada's largest airline, in its results announcement for the fourth quarter of 2018, forecast a core profit slightly above Wall Street expectations by 2026, betting on a strong demand on international routes outside of the U.S., and an increase in premium travel. Canadian officials are working to create a new global trade order by working closely with China and signing smaller trade agreements, but the country is still constrained by its economic dependence on the United States. CANADIANS VOIDING TRAVEL IN THE US Air Canada, based in Montreal, expects to have higher revenues by 2026 due to the addition of seats and the surging demand for premium travel. However, it faces costs pressures as a result of labor agreements reached with unions. According to the carrier, premium travel accounts for approximately 30% of its total revenue. The carrier said that strong premium cabin demand, and long-haul bookings, helped offset the softness in U.S. to Canada routes due to trade tensions between the two countries. U.S. Airlines have also identified premium travel as an area of revenue growth. Canadians are choosing to avoid traveling to the United States and instead book?holidays in international destinations such as Europe and Latin America. Air Canada does not expect much change in the market conditions for transborder travel. The carrier expects that its available seat mile?capacity - a key measure for passenger carrying capacity - will rise between 3.5% to 5.5% by 2026.
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Analysts say that PJM's plan could speed up data center power deals
Analysts said that a plan by PJM Interconnection - the largest power grid operator of the U.S. - to manage the?burgeoning demand for power from data centers may accelerate the deal-making process between data-center operators and independent?power providers. The plan released last month outlines a framework in which large power users could either?bring their own generation to the grid or operate within a "connect and manage" framework, that would allow them to reduce their energy usage before other emergency measures are taken when the system becomes overloaded. The proposal would also expedite a backstop capacity auction in order to prevent shortages throughout PJM’s footprint. While parts of the proposal will need regulatory approval, analysts said the "bring-your-own-generation" element could particularly boost deals between data-center owners and power producers. James West, Melius Research's managing director, said: "I expect to see a flurry major data center/power deals announced in the coming months by independent power producers and data center owners, as well as big tech companies." The Power to Demand New Records PJM has made its proposal as the U.S. demand for electricity continues to rise. According to the Energy Information Administration’s January outlook, power consumption will rise again in 2026 and 2027 after reaching a record for a second consecutive year in 2025. This is due in part to rapid growth of artificial intelligence. This surge in demand has already forced data-center operators into securing long-term power supplies. Talen Energy and Amazon Web Services expanded their partnership last year to provide data centers up to 1,920 Megawatts of nuclear power. Constellation Energy also struck a deal with Meta Platforms for the operation of one of its reactors for another 20 years. Anthropic, Microsoft and others have announced initiatives to reduce the impact of data centres on consumer electricity prices. PJM announced last month that it had started discussions about creating a backstop to help meet the growing demand for power in its area. President Donald Trump's administration has separately asked the grid operator for an emergency auction to boost supply. Analysts say the possibility of being dragged into the proposed backstop system gives data centers an increased incentive to seek?bilateral agreements with power producers. Andrew Rocco is a stock strategist with Zacks Investment Research. He said that data centers without their own energy may still end up paying to generate new?energy. He added that the "pay-or play" dynamic made direct deals with IPPs attractive and hedgeable than exposures to volatile PJM capacities prices. Several analysts expect the proposal to also spur consolidation in power sector as smaller developers might lack the capital required to?navigate PJM’s potential new requirements. Rocco stated that "we expect larger IPPs like Vistra, Constellation, or Talen to acquire smaller developers in order to create "mega sites" that package land and power, as well as fiber." Constellation Energy refused to comment while Vistra, Talen Energy and Talen Energy didn't respond to comments. Analysts warned, however, of potential obstacles to implementing the plan, such as state level approvals and challenges with permits. Rick Pederson is the chief strategy officer of Bow River Capital. He said that a "flurry" of deals will be limited by obstacles in getting IPP infrastructure approved and operational, as well as a queue for interconnects. Reporting by Kavya Baliaraman and Sumit Saha, editing by Nathan Crooks & Saumyadeb Chkrabarty
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Bpost avoids fine in Belgian newspaper distribution procurement case
Belgian postal operator Bpost, publishers DPG Media, Mediahuis and distributor PPP were 'held liable' for rigging public procurements for newspaper distribution, said the Belgian Competition Watchdog on Friday. Bpost, who had notified the authorities following an internal audit in 2022 that revealed signs of malpractice, would receive full immunity from any fines as part of a leniency program, said the regulator. The investigation cost Dirk Tirez, the then-CEO of the postal group, his job. In a press release, the regulator stated that the common goal of the companies was to make sure that bpost would receive the newspaper distribution concession for 2023-2027. "Together they agreed that PPP, bpost's main competitor, would not make an offer. This left bpost the sole bidder." Mediahuis and DPG Media, who together control the most widely circulated newspapers in the Benelux region, received fines of 7.79?million euro ($9.36m) and 3.79m euros respectively. These fines were reduced as part of the same leniency program. Bpost stated in an email that the findings of the watchdog were aligned with their own internal review for 2022. The company said that it has since implemented corrective measures, and strengthened its compliance procedures. DPG Media has said it accepted the decision, and that they have strengthened their internal procedures. They also introduced new training programs to avoid any repeat issues. PPP stated that it had reached a settlement with the Competition Authority and welcomed the elimination of the concession. It argued this would allow for "fair and competitive markets". Mediahuis stated in a press release that they had "made a judicial mistake and accepted their responsibility." After the investigation the Belgian government?abandoned the concession, forcing the companies to negotiate separately with PPP and bpost. Damien Gerard, prosecutor general in Belgium, said that the increase in the cost of distribution services had a huge impact on the profitability and viability of the printed press.
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Slovakia reports Druzhba oil supply interruption, but expects it to resume soon
The 'Slovak Economy Ministry' said that the Druzhba oil pipeline has been interrupted in Slovakia. However, it expects the flow to resume within the next few days. The Ministry said that the interruption would not have any impact on Slovakia's energy supply and did not provide further details about the duration of the suspension. The Ukrainian foreign ministry announced on Thursday that the Russian oil transit via the Ukrainian portion of the Druzhba pipeline to Eastern Europe has been suspended since January 27 due to an attack by Russia. The suspension affects Hungary as well, since MOL's oil and gas group operates refineries both in Hungary and Slovakia. Slovnaft, the Slovak refiner, could not be immediately reached for comment. UKRAINE? Accused of holding up flow Both Hungary and Slovakia still rely on Russian energy supplies. They have fought European Union attempts to stop these flows and deny Moscow the oil and gas revenues it needs to fund its war in Ukraine. Hungarian Foreign minister Peter Szijjarto accused Ukraine on Friday of blocking the resumption flows. "President Zelenskiy decided to continue to not permit the resumption crude oil deliveries into Hungary via the Druzhba pipe, even though it is technically capable of doing so," he stated on Facebook. Ukraine has lost nearly?all its thermal power stations due to Russian attacks. Energy restrictions are now in place for the entire country. The Kremlin declined to comment Friday on the Ukrainian claim that Russia struck the Soviet-built Druzhba pipeline and stopped oil flows?to Eastern Europe. Dmitry Peskov, Kremlin spokesperson, told reporters that he did not have precise information on the issue. He referred a reporter's question to Russia’s Energy Ministry. Reporting by Jason Hovet and Anita Komuves, Budapest; editing by David Holmes
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TSX Futures fall ahead of US inflation data
Investors awaited the?U.S. The Federal Reserve will be looking at the January inflation figures to determine its policy. As of 5:48 a.m., March futures for the?S&P/TSX 'composite index? were down 0.07%. ET. Toronto's benchmark index fell more than 2% Thursday, mirroring Wall Street's moves as AI disruption fears and the potential for fewer Fed rates cuts following Wednesday's stronger job data dampened sentiment. U.S. Consumer Price Data for January are due at 8:30 am ET on Friday. ET on Friday. According to a survey of economists, prices are expected to rise by?0.3% for the entire month. Spot gold recovered from a near-weeklow in the previous session by gaining 1%. Silver climbed 4%. Both metals appeared to be on track for a modest gain over the week. After slipping earlier, oil prices rose again after U.S. media outlets reported late Thursday that Washington was sending a second plane carrier to the Middle East due to tensions with Iran. Brent crude futures and U.S. West Texas Intermediate crude was up by 0.25%, on course for a second straight week of declines. Agnico Eagle's quarterly results showed a profit that was higher than expected due to the increase in gold prices. Air Canada's?forecast core profit for 2026 is marginally above estimates. CLICK CODES TO GET CANADIAN MARKET NEWS TSX Market Report Canadian Dollar and Bond Report Global Stocks Poll for Canada Canadian Markets Directory (Reporting by Utkarsh T. Hathi)
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India fines Air India $101,350 for Airbus incident. The country says the lapse in public confidence eroded trust.
A confidential order shows that India's civil Aviation Watchdog fined Air India $110 350 for flying an Airbus plane eight times without an Airworthiness Permit. The lapse, the watchdog said, had 'further undermined the public's trust in the country's second-largest airline. On November 24 and 25, an Airbus A320 carried passengers from New Delhi to Bengaluru, Mumbai, and Hyderabad without the mandatory Airworthiness Review Certificate (ARC), a permit issued by the regulator annually after a plane has passed safety and compliance tests. Air India's internal investigation of the incident, published in December, revealed "systemic failings" with the airline. The report also acknowledged the urgent need to improve the compliance culture within the carrier. According to a confidential penalty order issued by Indian authorities, Air India CEO Campbell Wilson stated that the incident "further undermined public trust and adversely affected the safety compliance of Air India." Maneesh Kumra, Joint Director General for Civil Aviation, wrote that Wilson was to blame. Air India has not responded to any queries. The airline was asked to deposit $103,339 (or 10 million Indian Rupees) within 30 days. Air India's worst disaster occurred in June of last year when a Boeing Dreamliner crash-landed moments after takeoff, killing 260 passengers. Reports say that the Airbus investigation by 'Air India' also blames pilots. They claim those who 'flew eight flights didn’t comply with standard operating procedure before taking off. Air India, owned by India's Tata Group as well as Singapore Airlines, received warnings for not checking emergency equipment and other audit lapses.
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EBRD: Romania to purchase Moldova's Giurgiulesti port on the Danube River
It said that the European Bank for Reconstruction and Development will sell a Danube River Port in Moldova called Giurgiulesti to a neighboring Romania, as the Black Sea State seeks to increase its logistics role 'in central and southeast europe. The port of Giurgiulesti lies near Moldova's borders to Romania and Ukraine. The port is located 134 km (83 miles), away from the Black Sea, and can be reached by both river and sea vessels. Romania, a member of NATO and the European Union, is one of Moldova's closest allies. It also supports its?admission to the EU. The Black Sea port of Constanta, which will replace Giurgiulesti as Moldova's main port, is a gateway into Central Asia. It also provides access to Western Europe and the Danube River. In 2021, the EBRD purchased Danube Logistics SRL (the operator of Giurgiulesti port), from Danube Logistics SRL. EBRD said it was "set to complete the sale of Danube Logistics" in a late-night statement on Thursday. The transaction is expected close soon. The bank said that the board of the port in Constanta approved the agreement to purchase shares on Thursday. The bank did not reveal the value of sale. However, a minority shareholder at Constanta port stated last year that it was approximately $62 million. In the wake of Russia's invasion of Ukraine in 2022, investment in infrastructure and exports from Ukraine of grain boosted Constanta port. It could become a logistic hub for rebuilding Ukraine as companies move operations to Eastern Europe’s low-cost manufacturing centers?to reduce supply chains. The port of Constanta has been Ukraine's primary alternative route for grain exports. The port said that although Ukrainian grain exports fell sharply last year to 330,000 metric tons from 6.2 millions in 2024, Constanta had facilitated over 30 million tonnes of shipment since 2022. (Reporting and editing by Elaine Hardcastle; Luiza Ilie)
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FOCUS - GE Aerospace uses robots and a 'Lean" approach to solve jet engine repair crunch
Suresh Sinaiyan, a GE Aerospace technician, has spent over a decade repairing compressor blades on jet engines by guiding them with precision across a sanding band. At the new automation lab of?the aerospace company in Singapore, he teaches a robot how to do the exact same thing. The switch is part GE's effort to prepare 'the next wave of Industrial Development' and ease a 'aviation's most significant bottleneck: overloaded repair workshops and scarce parts. The industry's newest jet engines are prone to unexpected wear and tear, which has caused many airlines to idle older jets for longer and stretched maintenance lines. This pressure has now become a public battle. The airlines have complained about engine makers raising prices to take advantage of shortages, while the manufacturers claim they are investing money in expanding support because they incurred huge development costs. Tony Fernandes is the co-founder and CEO of Malaysian low cost airline AirAsia. He said it bluntly: "They must remember that airlines are their future, so treat us as partners." SINGAPORE as the Pressure Valve GE claims that Singapore is a critical part of its solution. The company is upgrading its 2,000-employee service center with digital tools, AI and more automation as part of a $300 million investment plan. The company wants to increase repair volume by?33% in Singapore without expanding the footprint of the site -- by reorganising, reshaping and automating tasks when it's efficient. The factory is leading the way in GE's "Flight Deck" recipe for continuous improvement, eliminating waste and reducing costs. This was pioneered by Japanese automakers and promoted by CEO Larry Culp. It's not about sprinting to the end of a quarter in order to produce a Wall Street Guide. Culp said in an interview that it is about making every minute and day count. GE, along with rivals like Pratt & Whitney, has been trying to find a balance between supplying new-airplane assembly line engines and parts and keeping the fleet flying. By repairing more worn parts, you can reduce the pressure on your engine by reducing the need for replacements with new components. GE claims that repairs can halve 'the time required for key processes and also halve costs to airlines. Faster turns, tighter floor space Iain Rodger of GE Aerospace Component Repair Singapore told me during a tour that "repair can improve turnaround times... the shorter the time the engine has to be off the wing the better." A reorganized repair area is overhauling CFM56 turbo nozzles that have been scorched by extreme heat in one of the most popular engines on earth. Workers claim that turnaround times have improved since 2021 when they were 40 days. GE targets 21 days by the year 2028. The area will lose about a third its floor space in order to meet the next challenge, which is to develop repair capabilities for newer LEAP engine models that are starting to enter overhaul cycles. If the airline does not approve repairs, it may be forced to replace worn out parts with newer, more expensive, and limited-supply replacements. Han Hui Min, Nozzles' Business Leader, said of the new layout: "Now we can identify issues and see where they are." TEACHING ROBOTS the HUMAN TOUCH Repairs that require a technician to touch them are among the most difficult?to automate. Take these compressor blades out of a CFM56 motor. The spinning blades squeezing the air as it rushes in the engine core create pressure. After years of use, the blade?tips will deform. This must be repaired by a process known as blending. It's really difficult to do. Sinnaiyan said that (until now) the process was 100% manual. The blades must be filed down to a few thousandths, using eye, feel and coordination. GE is betting that if they can capture this skill and turn it into a robotic process that can be repeated, then it will reduce the need for specialized labour at a lower cost. Analysts have noted that engine manufacturers make some of their largest profits by servicing used parts, and licensing certain repairs to shops in exchange for lucrative royalties. The process of each repair is the "secret sauce" for an increasingly important part of the business. Scaling repairs have limits. The work must adhere to approved procedures and strict standards of quality. Nick Cunningham, an analyst at Agency Partners, said that the slowdown in plane production - which increased demand for older jets and subsequently for repairs – is nearing its end. If GE's Singapore changes are successful, they can help the industry overcome its bottlenecks. They could also ease fares. Airlines executives and others have warned that the supply crunch is not likely to disappear quickly. Culp explained that the goal was to move away from heroics and firefighting, in favor of a more preferred type of performance. Reporting by Tim Hepher and Rajesh K Singh in Singapore; Editing and production by Joe Brock, Matthew Lewis
India fines Air India $101,350 for Airbus incident. The country says the lapse in public confidence eroded trust.
A confidential order shows that India's civil aviation watchdog fined Air India $103,350 for flying an Airbus plane without a permit eight times. The watchdog said the lapse had further eroded public confidence in 'the country's second-largest airline'.
On November 24 and 25, an Airbus A320 carried passengers from New Delhi to Bengaluru, Mumbai, and Hyderabad without the mandatory Airworthiness Review Certificate (ARC), a permit issued by the regulator annually after a plane passes safety and compliance tests.
Air India's internal investigation, which was?reported on in December, revealed "systemic failings" with the airline. It also acknowledged that there was a?urgent requirement to improve compliance culture within the carrier.
In a confidential penalty order, Indian authorities issued on February 5,?to Air India's CEO Campbell Wilson. The order stated that the incident "further undermined the?public trust and adversely affected the safety compliance of this organisation."
Maneesh Kumra, Joint Director General for Civil Aviation, wrote that Wilson was to blame in his order.
In a press release, Air India acknowledged that it was bound by the regulatory order regarding?the incident which it reported voluntarily to authorities last year. It said that "all identified gaps have been satisfactorily resolved and shared with the authority."
The airline was asked to pay the fine within 30 days.
Air India's worst disaster occurred in June of last year when a Boeing Dreamliner crash-landed moments after takeoff, killing 260 passengers.
Air India's investigation into the Airbus incident blames pilots as well, saying that those who flew eight flights didn't comply with standard operating procedure?before takeoff, according to reports.
The watchdog has also issued warnings to Air 'India, owned by the?Indian Tata Group and Singapore Airlines for operating planes without checking emergency gear as well as other audit failures.
(source: Reuters)