Latest News
-
Airbus targets 10% savings on costs due to global uncertainty and supply problems
Airbus Europe has cut back on non-industrial spending by 10% as supply chain issues and global uncertainty continue to affect its core business. They said that the clampdown will only affect activities related to the headquarters and planemaking division, but not production. The clampdown has been in place for several weeks, and is part of the LEAD project launched in 2024 to reduce costs. Sources said that the new "cost-containment" measure aims to reduce the use of outside contractors, which are traditionally a major resource for the largest planemaker in the world. Airbus, based in Toulouse, declined to comment. This previously unknown move is in line with efforts made by Western companies in order to reduce spending due to the economic uncertainty?and costs associated with the Iran war, and other trade tensions. Review of company statements from the United States and Europe, published on Monday, revealed that companies are facing a bill at least of $25 billion due to soaring energy costs and fracturing supply chains. Airbus CEO Guillaume Faury said last month to analysts that the war had not caused any immediate disruptions, but the group was concerned about the impact that higher oil prices could have on the price of derivative products. A problem with fuselage panel for A320 series planes had already disrupted financial planning late last year. 'BUILDING STRESS' Airbus has also been involved in a dispute with Pratt & Whitney over the delivery of engines. Sources said that the concerns over the integration and supply of parts of defunct aerostructures by Spirit AeroSystems continue to affect A350 part production. Aircraft deliveries - which drive profits - fell 16% in the quarter, as seasonal patterns were amplified by supply pressures. Airbus's new cost-reduction initiative, according to industry sources, has highlighted the challenge ahead of catching up with deliveries. Airbus aims to increase deliveries by 10% this year, to 870 aircraft. Cirium data shows that Airbus has delivered 27 aircraft this month. Rob Morris, an aviation analyst, said: "I don't see any acceleration. That's the problem." "They're building stress in the system, if they want to make 870 delivery." Faury informed analysts in April the vast majority A320 family aircraft that were affected by defective panels from a Spanish manufacturer would be delivered before the end of the month. (Reporting and editing by Emelia Sithole Matarise; Reporting by Tim Hepher)
-
Smaller European airlines push back on passenger compensation reforms
Smaller European airlines have urged EU officials to reconsider planned reforms of passenger compensation rights on Tuesday, arguing that the spike in jet fuel costs due to war with Iran has left them unable to bear additional financial burdens. EU institutions are currently negotiating the reform of EU261, a decades-old regulation on passenger rights. Air passengers are entitled to compensation for delays of more than three-hours, under the existing rules. The amount is determined by flight length and can range from 250 euros (US$292.95) up to more. Next round of discussions is scheduled for June 2. In a letter sent to EU officials, executives of 35 airlines, including Air Serbia and SkyExpress, Luxair and Atlantic Airways, said: "We urge European policymakers to pause, reassess and reconsider." KLM Cityhopper, Air Corsica and other airlines also signed the letter. The European Parliament, and the?EU member states are in disagreement over the increase of the threshold for flight delay compensation as well as?the maximum refund. The European Parliament wants the threshold for short-haul flight delays to remain at three hours, while EU member states want to raise it to four hours. The smaller European carriers are asking for a higher threshold or even no compensation, but have not made any explicit demands. Co-legislators also disagree over a proposal by the Parliament to include a right to a complimentary cabin bag up to 7 kg (15lb) as part of the new rules. The airlines are also against this proposal. In a letter, airline executives said: "Conduct an impact assessment in the new geopolitical situation, acknowledge the unique role regional aviation plays, adjust the compensation system to reflect operational reality, discourage flight cancellations, and avoid destroying essential air links." The report said that smaller?European airlines have been particularly affected by the increase in jet fuel prices. They are also more vulnerable because they operate thin routes with "very low profit margins", which makes it difficult for them to pay out when disruptions happen. Jet fuel prices have nearly doubled in the last few years, and some airlines are warning about long-term effects on their profits. "The strength of Europe lies in its connectivity. Not only between the major?capitals but also across all regions and communities. This connectivity is made possible by regional?aviation. "Do not let this be your last straw", the letter stated. The free seating of an accompanying adult adjacent to a child, or a person with reduced mobility, is another rule that is not disputed. (Reporting and editing by Susan Fenton; Joanna Plucinska)
-
NTSB examines reports of cracks on key part during hearing on fatal Kentucky cargo accident
The National Transportation?Board is reviewing Tuesday reports of cracks in a key part during a two-day hearing into the fatal crash in Kentucky of a UPS MD-11 freight plane that killed 15 people including 3 crew members and 12 passengers. The NTSB reported in January that a part of the?jet's cracked wing was mentioned in a Boeing report from 2011 which stated?that there had been three previous failures. The NTSB reported that its 'investigation' had revealed fatigue cracks on a pylon connecting the left wing to the plane engine, known as the bearing races. The NTSB reported that there had been a number of reports in the previous decade of cracks on race parts of MD-11?planes. The hearing will review the requirements for?components and the Federal Aviation Administration’s oversight of the issue in the past two decades. FedEx announced last week that it has begun to'resume use of MD-11 aircrafts after the FAA lifted the order which had barred flights in the wake of the fatal UPS cargo crash. UPS retired its MD-11 fleet of over two dozen cargo planes at the end last year. (Reporting and editing by Hugh Lawson, David Shepardson).
-
Minister says cost of UK's rail HS2 project could soar to $138 Billion
Transport Minister Heidi Alexander revealed on Tuesday that the bill for Britain's high-speed rail line, HS2, could reach a staggering?103 billion pounds ($138billion). This is?the latest in a series of cost overruns for?the beleaguered project. HS2 was originally designed to increase capacity and catch up Britain with other European countries that have extensive high-speed network. The spiraling budget and delays in the project meant that successive governments had to drastically reduce the length of this new line. This put the future of the entire?project' at risk. Alexander stated on Tuesday that a new analysis shows cancelling the order now would cost the same as continuing. She said that the cost of the line connecting central London to Birmingham is now estimated between 87.7 and 102.7 billion pounds. Services will not begin until 2036 or 2039, a decade later than originally planned. Alexander stated that "taxpayers, passengers, and communities along the route have been let down for years by mismanagement of HS2". She added that she is confident in a team who had delivered London's Elizabeth Line. NO STOP IN CENTRAL LONDON UNTIL 2040 AT LEAST The first trains into Euston Station in central London will not operate until 2040-2043. Trains that run before then will terminate at Old Oak Common, west London. Alexander blamed the previous government for their decision to build the "world's fastest train" with a highly engineered and bespoke railway. He also said that inflation, inefficient delivery and underestimation were the reasons behind the cost increases. HS2 was intended to modernize Britain's mostly Victorian era?railway system and improve connections between London and northern England. The cost was estimated to be 32 billion pounds by 2011. As the cost of the bill grew, the connections to northern cities like Leeds and Manchester had to be cut off in the early 2020s. The bill was estimated to be 56 billion pounds by 2018, but multiple reports have since put it at closer to 100 billion.
-
Portuguese Cabin Crew Union to Join June 3 National Strike
A union spokesperson announced on Tuesday that members of the Portuguese 'cabin crew' union SNPVAC had voted to join an upcoming?June 3,?nationwide?strike which will disrupt flights operated TAP, Ryanair, and EasyJet. Portugal's largest umbrella union, CGTP called the general'strike' in protest of the government's 'labour reforms'. SNPVAC stated that it could not be indifferent to what it called a "unprecedented assault on fundamental rights and established rights" by the Government. TAP, the largest airline in Portugal, operates about 300 flights a day between the airports and the base. Ryanair?and easyJet are the next two airlines, then smaller carriers like?Azores Airlines. One of the most controversial measures in the labour reform is that it makes it easier for employers to dismiss their employees with a good reason. Another is the lifting of limits on outsourcing. Reporting by Sergio Goncalves, Editing by Charlie Devereux and Aislinn laing, and David Goodman
-
British Airways extends Middle East flights to August 1,
British Airways delayed the resumption of flights to Dubai, Doha and Tel Aviv for a month to August 1, according to its website. Since the U.S. and Israeli war against Iran began late in February, a number of airlines have cancelled flights to or from?the area. British Airways spokesperson said that due to the current situation in the Middle East, they have altered their flight schedule to give more clarity to 'our customers. IAG's long-haul carrier plans to cut flights to the Middle East once?services return, and permanently drop Jeddah from its list of destinations, as it announced in April. The airline also plans to reduce services to Dubai and Doha to one daily flight. The spokesperson stated that "we are keeping the situation under constant review, and we're directly in touch with affected customers to offer them a variety of options." (Reporting by Prerna Bedi in Bengaluru; Editing by Mrigank Dhaniwala)
-
WHO official: Test shortages hinder the fight against Ebola virus in Congo
A World Health Organization official stated that limited testing capacity is slowing the response to the Ebola outbreak. According to the WHO, there are at least 500 suspected Ebola cases and 130 suspected Ebola deaths. The disease has spread into Uganda. We have shipped 12 tons of supplies. Six more are expected to arrive today. Anne Ancia said that the samples included personal protective equipment (and) for frontline healthcare workers. Ancia stated that there is "great uncertainty" about the scope and scale of the Bundibugyo Ebola outbreak, and increased surveillance, testing, and contact tracing are underway. She stated that testing for the Bundibugyo was limited, with only six possible tests per hour. She said it took weeks for the outbreak to be detected, in part because the tests used at the outbreak site were designed for the Zaire strain. She added, "The capacity for surveillance and investigation is very limited in the region as a whole." Ancia stated that funding shortages had a huge impact on WHO's capability to fight Ebola. Ancia?said that the United States officially left the WHO at the end of January, and President Donald Trump has cut global health spending. However, the U.S.'s cooperation in fighting the outbreak is working "very well". She said, "We understand we can't receive funding. It's okay. But we want to continue talking, exchanging information and collaborating." OCHA, the U.N.'s humanitarian office, said it had received only 34% of the $1.4 billion funding requested for its appeal in the Democratic Republic of Congo for this year. It added that more than half of that money came from Washington.
-
Mexico City Races to Finish Metro and Airport Upgrades for World Cup
Mexico City has less than a month left before the World Cup begins. The city is scrambling for key renovations, such as those to its metro stations and main airport. Locals have expressed frustration at the construction works that they feel are more aimed at tourists than Chilangos (as the residents of the city are called). Work crews are currently building a pedestrian-and-bicycle corridor on Calzada de Tlalpan. The two-kilometer long, or a little over one mile, route is expected to be open by the end of May. Construction has caused lane closures, congestion and a number of lane closures along one the busiest routes in the capital. Blanca Abascal is a local teacher who lives in the neighborhood. "But the situation has been chaotic. At night, we cannot sleep due to the noise." Mexico, Canada and the United States will co-host this year's World Cup. Mexico City will host 5 games starting with the Mexico group match against South Africa on 11 June. Renovation work is currently underway at metro stations such as San Antonio Abad, Auditorio and other locations in the central and western parts of the city to upgrade stained-glass, entrances and platforms. Halim Castro, 22, a student at a university said that the projects are more focused on aesthetics rather than structural maintenance. "Resources can be used for more important improvements, like maintaining the metro, which is very old." Mexico City officials, who claim that the metro system transported more than 1.2 billion passengers last year describe the upgrades as necessary. Metro director Adrian Rubalcava stated that preparations for World Cup helped to accelerate necessary work. He said that the opportunity would allow for deeper work to be done at stations in need of urgent attention, and will improve their condition over time. Some residents also expressed concern about the distribution and allocation of public investments. Arturo Castro is a retired retiree who has called for "broader urban planning". Renovations at the Benito Juarez International Airport have caused some parts to be closed, causing delays for passengers arriving in the capital. "The situation is unsustainable at the airport:?the constant renovations, disorganization and flight delays. Total chaos," said Francisco Ramos a 42-year old architect who visited the airport last week. The President Claudia Sheinbaum said that the project is progressing according to schedule, including upgrades at Benito Juarez Airport and Felipe Angeles, the other airport in the city. She said that they would be finished on time for millions of visitors, including athletes. (Additional reporting by Diego Ore. Editing by Rosalba o'Brien.)
Four US LNG ships sailing to China following Trump-Xi Summit
According to data provided by financial firm LSEG four liquefied gas (LNG),?vessels are sailing from the U.S. to China and should arrive in June. This is the first U.S. cargo of LNG to depart the U.S. for China directly during President Donald Trump's 2nd term. Trump visited Beijing last week for a meeting with Chinese President Xi Jinping. Trump said to Fox News in May 2014 that China wanted to buy oil, LNG, and other goods from United States.
China, in the past, was the largest gas importer. The U.S. is the biggest gas producer, consumer, and exporter. China still imposes a 25% tariff to U.S. LNG after levies were imposed on Chinese goods by the U.S., and this is the biggest obstacle to a revival in LNG trade between China and the U.S., according to S&P Global's May 15 report and May 12 factbox.
Four vessels are currently heading from the U.S., to China. It is possible that one of them will arrive in China.
According to LSEG, the Umm Al Hanaya ship left Cheniere Energy's Sabine Pass Export Plant in Louisiana on 5 May. The Id'Asah vessel, Al Sene vessel and Lamail vessel all left Venture Global's Plaquemines Plant in Louisiana from 8-18 May.
The four vessels are expected to arrive at China's Tianjin Port between June 15-28. Cheniere and Venture Global are the largest and second-largest U.S. producers of LNG, respectively.
GAS PRICES ARE RISING AROUND WORLD
In 2023, the U.S. will surpass Australia and Qatar as the largest LNG exporters in the world, as rising global prices have fueled demand for cheaper U.S. Gas. Gas prices in the world have risen in recent years because of supply disruptions linked to Russia's invasion of Ukraine in 2022 and Iran's war in 2026.
Iran, in response to U.S. bombings and Israeli attacks, effectively closed the Strait of Hormuz, and attacked Qatar's LNG facilities. This resulted in the loss of around 10 billion cubic foot per day (bcfd), or about 20% of the world's LNG supply. Comparatively, the U.S. is able to convert about 19 bcfd per day of gas into LNG.
Gas prices have reached a six-week-high near $17 for a million British thermal units (mmBtu), at the Dutch Title Transfer Facility (TTF) in Europe, and a four week-high near $19 at the Japan-Korea Marker.
Gas in the U.S. is cheaper, as it produces enough fuel to meet both domestic and international demand. The Henry Hub benchmark price in Louisiana was trading at a high of $3 per mmBtu, a record for the past seven weeks. (Reporting and editing by Nick Zieminski, Scott DiSavino)
(source: Reuters)