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How Volkswagen's flying car dream crashed in China
Volkswagen, China's leading automaker for years, looked beyond the streets it dominated in 2019, and set out to take a piece of space. VW had a vision of a battery powered airborne vehicle. The 82-year old manufacturer needed Chinese technology and design to make it a reality. The German automaker wanted to work quickly with a startup team in Beijing in order to create a?flying car, a challenge that Porsche and Audi had failed to meet. VW was to deliver what they called a "luxury, futuristic drone" that could transport four rich passengers in style. It was intended to sell them vehicles that could fly between cities such as Beijing and Tianjin with a noise level half that of a helicopter. (Read the full story at?.com) In a video for 2022 posted on the Volkswagen website, VW project leader Zhou Jin stated that this segment has a strong potential to be a major market segment. Volkswagen is still grounded, even though local startups are preparing to launch flying cars in China. Volkswagen's flying car effort could not match China's low altitude economy. This is the aviation industry's term to describe an emerging market that includes drones, air-taxis and other aviation service aimed at airspace under 1,000 meters. Local rivals, government and supply chains have moved more quickly in China than VW. VW is a legacy company with a culture that values deliberation and compliance. VW's stumbling is another example of how older automakers are losing business rapidly to Chinese competitors. The project's failure also highlights the shifting legal risks that foreign companies face in China. VW faced a 5-year legal battle with a Chinese partner who claimed that VW had violated trade secrets when developing flying cars. Western companies have accused Chinese firms for years of stealing their technology. There is also a criminal investigation into?Zhou, the Chinese manager who VW promoted as its face of innovation. Emerson Xu is the CEO of NexAvian, and former China director of air-taxi manufacturer Volocopter. He said that Volkswagen's experience shows just how "brutally select" China's mobile industry has become. "If you are not Chinese enough, or faster, or both, then you will not stand a shot." Volkswagen's spokesperson stated that the automaker would not comment publicly on its development of flying cars or the case brought against Zhou, its employee. The spokesperson stated that "we are convinced the allegations brought against us have no substance." Zhou said, "I can't understand why I was left to deal with a criminal matter I was innocently involved in by simply carrying out my job duties." I have repeatedly asked the company to intervene and resolve the commercial dispute fully. Volkswagen's battle to bring a flying vehicle to market, and how the company ended up killing the project in 2024, has never been reported before. This report includes hundreds of pages from Volkswagen documents relating to its plans for flying cars, including planning papers, legal documents, and corporate communications. The reporters also interviewed five individuals with knowledge about the project and reviewed disclosures made by former VW partners regarding flying-car development. VW is still partnering with Chinese companies, such as automaker Xpeng to help with electric cars and Horizon Robotics for autonomous driving. The company has made such agreements because it has been losing sales and market share in the largest auto market to Chinese brands. VW's sales in China peaked in 2019 at 4.2m but dropped to 2.7m last year. This has pushed the automaker down to third position behind rivals BYD & Geely. VW's profits have been hammered by these struggles, as well as mounting pressure from its German manufacturing network and U.S. Tariff costs. In recent weeks, the company announced plans to cut vehicle models and up to 100,000 positions as it scrambled to stabilize its business. Early, then overtaken Volkswagen joined the rush of automakers to adopt electric vertical takeoff-and-landing (eVTOL). The term "flying cars" is often used by automakers to describe the new sector, alongside eVTOL. The idea was simple. Electric flying cars would reduce travel times in crowded cities, and car manufacturers could reinvent themselves to investors as "mobility companies". Toyota, for instance, invested in Joby Aviation, an air taxi startup in New York that has recently tested air cabs. Porsche Consulting, a VW management-consulting arm, promoted an industry it estimated could be worth $32 billion by 2035. VW's Porsche brand partnered with U.S. aerospace giant Boeing, while Audi's sister brand teamed up with Europe's Airbus to develop flying cars. Both ventures failed to produce a product that was commercially viable, so Volkswagen executives turned their attention to China, the auto market in which they dominated at the time. The market for flying cars was relatively open when VW started its China project in 2019. The race was tightening dramatically by the time the project closed in 2024. China's government made the "low altitude economy" a strategic national priority in those five years. This attracted a flood of local competitors. According to CCID Consulting (a Chinese think tank affiliated with the Chinese government), at least seven Chinese firms are expected to provide eVTOL cars by the year 2026. Guangdong Province opened China's first flying car testing center in March. Xpeng is a key partner in VW's China turnaround plan for the EV market. It has begun to deliver its own flying vehicle: a futuristic, extended-range EV or "mothership", built to launch a drone with two passengers from its cargo bay. In recent years, the eVTOL industry has seen many failures, as startups in Europe and America have filed for bankruptcy before launching a vehicle into commercial operation. The flying car concept has not been a sustainable business. 'ESTABLISHED LIFESTYLE ENJOYERS" Volkswagen's original goal was to build a V.MO full-scale model in two years. VW's planning materials target wealthy Chinese individuals who are looking for exclusivity and status. Marketing and product plans indicate that the cabin would have to be big enough to accommodate four passengers with their luggage and include screens for entertainment. The team consisted of fewer than ten members, led by Zhou (the 39-year old director of Volkswagen Beijing's innovation center). VW promoted the team in press releases and videos as a "young Chinese expert" who had "started at scratch." VW concluded that it needed a Chinese partnership because its local market "was ahead of European R&D," Zhou stated in a promotional film. VW was unable to find a partner who could offer technical capabilities without the political risk associated with government ties, which one internal presentation warned would "trigger scrutiny beyond China." Volkswagen considered working with EHang based in Guangzhou, China's only eVTOL startup that has listed shares. VW concluded that the company had a gap to close in order to meet VW standards for automotive engineering, according to an internal assessment from August 2020. EHang did not respond to a comment request. Sichuan Tengden, a Chinese manufacturer of military drones, also resigned from consideration. The company cited "capacity constraints" that an internal VW memo linked to the “China-U.S. Arms Race." Tengden did not respond to a comment request. VW's legal department also highlighted another risk associated with working with the firm: its role as a supplier of military equipment. Tengden is founded by a former employee of Aviation Industry Corporation of China, a state-run defence contractor that has been targeted by U.S. restrictions on trade because of its role developing killer drones. AVIC is the manufacturer of China's J-20 Stealth Fighter, as well as other major weapons. Records reviewed by us show that VW instead approved a contract for AVIC General Huanan Aircraft Industry Company, AVIC GA, to provide consulting services on its flying vehicle. When the arrangement was signed in 2021, AVIC faced U.S. Export restrictions but wasn't a completely blocked entity. AVIC did not respond to any questions regarding its involvement. STAR WARS VIRTUALITY, "UNCONTROLABLE" RISKS VW chose Pantuo Aviation - a Shanghai-based startup that had been operating for two years - to carry out a feasibility report on a flying luxury car that would bear the VW badge. Pantuo Aviation was owned by Zhang Qiong. Zhang Qiong is a Chinese entrepreneur with a successful business in supplying aviation fuel to private planes. Two people have said that the design of the startup - an elegant craft with rotating wings – impressed Volkswagen managers. Pantala was a sleek craft that looked more like an aircraft than a Star Wars vessel. Zhang Pantuo thought VW's team was full of imagination, but had no plan concrete for the future. She said, "At first they had absolutely nothing." They had never done it before. Zhang said that VW approached the project with a traditional auto mindset. Zhang felt that while Pantuo viewed itself as developing an innovative, complex aircraft that required tolerance for uncertainty and step-by-step design, the automaker approached the project as a simple assembly project. She said, "They appeared to think that it should be similar to assembling a vehicle - all the pieces are there and you can just put them together." VW has not commented on Zhang's story. A person involved in the project said that VW had returned to Pantuo at one point to inform them that its focus group found potential V.MO drivers were uncomfortable with boarding or disembarking near to the rotating blades of their vehicle. The person involved said that the automaker asked for a redesign of the rotors to protect them 60 days prior to the project deadline. VW and AVIC GA evaluated Pantuo’s design, finding it to be "uncontrollable." VW's project status document from September 2021 states that the concept did not show "convincing viability" because of poor aerodynamic performance, which left the projected range far below the target. The technical teams warned that the vehicle could not be made lighter enough. In the same report, Pantuo's collaboration was called a "mistake." The VW team was blamed for not having "in-house experience in aviation" and Pantuo's "too ambitious design" had a "limited budget and development period." VW decided that the project would need to be re-drawn. VW's presentation stated that the automaker had offered to cancel the contract worth $590,000. This would cost about $414,000. Pantuo, however, refused to accept the offer. Pantuo argued that Volkswagen shared incorrect concept details with AVIC GA in a subsequent arbitration. The arbitrator found in favor of VW and ordered Pantuo, Inc. to pay damages and costs totaling more than $120,000. VW's legal department hailed the ruling in an email as "an outstanding outcome". The arbitration commission did not respond to our request for a comment. The matter was not over. According to Zhang and other witnesses, Shanghai Police opened an investigation in late 2015 into a criminal case that Pantuo filed against VW 2021, for alleged violation of trade secrets. The automaker's internal correspondence from December 2023, reviewed by reveals that it regarded the criminal complaint against Pantuo as "baseless". It also viewed the tactic as a way to exert pressure on Pantuo for a favorable settlement in civil litigation. The dispute escalated in September 2025, when Pantuo filed a $30 million lawsuit in a Guangdong court against VW and AVIC GA for intellectual-property theft. Pantuo alleged that Volkswagen, by sharing its designs and research with AVIC, had transferred the startup's intellectual property to an entity they considered an established rival. AVIC did not respond to any questions regarding Pantuo's lawsuit against its unit. Shanghai police and Guangdong Court did not respond to requests for comments. China's Supreme People's Court dismissed Pantuo's suit against Volkswagen in June, saying that the claim should have resolved through arbitration. The ruling allowed the suit to continue against AVIC GA and left the possibility open that Pantuo might return to the arbitrator to present its VW claim. Zhang, now based out of Singapore, said she would be evaluating her legal options. The shoe on the other foot Some market observers say that VW's dispute against Pantuo is indicative of a wider shift in the way Western companies operate in China. Since decades, foreign firms entering the Chinese marketplace have been worried that local partners will copy technology and pass it on to other domestic players. Chinese firms are more likely to defend novel technologies developed by them, especially in areas where the government has set national priorities like the low altitude economy. Mark Cohen, a former senior IP attache with the U.S. Embassy in Beijing, said: "The shoe is on the opposite foot." China will become more litigious as it acquires more desirable technology. Businesses and law firms report that Chinese prosecutors are becoming more aggressive when it comes to pursuing cases of intellectual property, particularly in areas identified as national priority. The national agency overseeing prosecutions announced in February that it would be stepping up enforcement of IP theft claims due to "intensifying risks of technology leakage". Chinese courts accepted 11,066 intellectual-property cases involving foreign parties in 2025, up 34% from 2024, according to a report by the Supreme People's Court. These figures do not indicate how many cases involved Chinese plaintiffs. The court reported in April that the number of foreign-related cases handled by the Intellectual Property Court of China grew at a rate of 19% per year between 2019 and 2025. This equates to 2,546 cases or one-tenth the total. China's State council?Information office referred 'questions about flying-car developments and IP legal questions to the National Development and Reform Commission (the country's leading economic planner). The National Development and Reform Commission did not respond. 'FLYING TIGER' VW partnered with Hunan, a manufacturer of drones, light aircraft, and flying cars, in 2022. The partnership developed the first full-scale model, dubbed "Flying Tiger" after the Chinese zodiac year. The Flying Tiger's basic configuration was eight rotors to lift the aircraft and two for forward flight. VW and Sunward developed two full-scale prototypes on the basis of that?model. The "Sky Garden" model, which featured a luxurious, spacious cabin, was the showcase for this project. The mock-up was occupied by the Chinese Premier Li Qiang in March 2023. This served as a sign of approval for the project, which aligned with China's increasing ambitions within the sector. Sunward did not respond to any questions regarding its involvement. The model was sent to Volkswagen's Wolfsburg headquarters for a review of the project by Arno Antlitz, CFO, and CEO Oliver Blume. Antlitz encouraged the team to move forward, citing a need to learn from made-in China efforts. The people reported that a third prototype was tested in Inner Mongolia at remote sites where engineers lived in and converted shipping containers. VW will launch its new car in October 2023. Wanfeng Auto Holding Group, which already has a well-established aviation division, is helping VW prepare. Wanfeng is a Chinese car wheel manufacturer that acquired Austrian aerospace company Diamond Aircraft. Volkswagen's top management committee for group operations held a meeting in March 2024 to discuss the possibility of bringing the flying cars to market. The legal, compliance, financial and strategy teams expressed concerns. One risk was the long time to profitability. Competitiveness was another risk. VW's strategy paper warned that "established Chinese players have already captured the momentum in China," naming rival automakers such as Xpeng, and Geely. Ralf Brandstaetter, VW's China director, was the one who made the final decision. Brandstaetter decided that VW had to concentrate on its core business, at a moment when passenger car sales were declining. Two people said that he killed the project by telling the team in June 2024 that it had been disbanded. According to documents, he broke the news in a WeChat Message to Wanfeng. The Chinese partner. Brandstaetter did not respond to any questions regarding the decision to abandon the flying car, which was later confirmed by the board at VW China. Wanfeng did not respond to the request for comment either. In a regulatory filing from November 2024, one of its units stated that the joint venture agreement with VW was over. The COPS Investigate After the failure of Volkswagen's flying car project, Zhou's legal troubles continued. Documents in the case show that when the criminal investigation into an alleged violation of trade secrets began in December 2023 the police identified Zhou as the suspect - and not VW. Shanghai prosecutors began investigating the case in 2024. Zhang, Pantuo, claimed that she filed her criminal complaint not against Zhou but VW. Zhou was subjected to travel restrictions while the investigation proceeded. This is according to records from police that were seen by. She called it "shocking" and "heartbreaking" that Volkswagen treated the case against Zhou as an individual matter. Top executives told her this just a month ago. The criminal investigation was not addressed in the Supreme People's Court's decision of June on the civil case. Shanghai prosecutors did not respond to an inquiry about the case of Zhou. During the ongoing dispute over the flying cars, Wanfeng - the company VW once selected to bring its vehicle to the market - swooped into the fray to rescue German aerospace startup Volocopter from bankruptcy. Reporting by Ju-min Park in Beijing and Kevin Krolicki, Zhang Yan in Shanghai, and Claire Fu from Singapore. Kevin Krolicki, David Dolan and Kevin Krolicki wrote the article. (Editing by Brian Thevenot, David Crawshaw and David Thevenot.)
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Bousso: The future of Mideast oil is bleak as Iran tightens its grip on Hormuz.
Energy markets are stuck in a limbo of uncertainty that is not easy to get out. Buyers are increasingly worried about the reliability and security of Gulf supply, which is creating a new alarming norm for producers in the region. The energy sector in the Middle East is more vulnerable and weaker than ever before, five months after Israel and the United States launched their military strikes against Iran. Energy infrastructure is under attack, and shipping routes are becoming increasingly restricted. Importers are starting to avoid supplying a region which accounted for a fifth of the world's oil and LNG exports prior to the war. The conflict has spread from the Strait of Hormuz, which was the main front of this war, to the Red Sea in recent weeks. Yemen's Iran backed Houthi militia declared last week an embargo against Saudi exports. The attacks on oil tankers and energy assets have made it difficult to ship goods from the west coast of Saudi Arabia, which was a vital alternative route for shipments after Hormuz effectively closed earlier this year. The security situation has continued to deteriorate since the breakdown of the U.S. Iran interim ceasefire agreement on June 17th. After a short hiatus of a few days, the U.S. Military resumed Tuesday its strikes on Iranian targets in the area after Tehran and its militias in Yemen, Iraq, and Kuwait targeted oil tankers, energy infrastructure and two major refineries that had to be shut down. Once again, the result is a dramatic drop in Middle East exports. The combined exports of the Gulf and Saudi Arabia’s west coast fell this week to approximately 6.2 million barrels a day. This is less than half of the peak wartime exports of 13.4m bpd, which were reached in late June. It's also far below the 20m bpd average that used to leave the region prior to the conflict. What is most alarming is that this volatility isn't the only thing on the energy market. It is also a sign that complex and opaque trading patterns, created by "this stop-and start conflict", may be here to remain. AN ACT IN DEPRAVED DESPERATION The first question is whether Iran has control over the Strait of Hormuz. Gulf states are desperate to resume energy exports after months of conflict to replenish their state revenues. Many are willing to consider an idea which was 'almost unthinkable just weeks ago.' This is granting Iran a role in managing the traffic through this critical waterway. Oman had presented Tehran with an Oman-backed proposal earlier this week under which Iran was to help administer the Strait and collect voluntary fees from vessels using the route. Iran rejected the proposal and insisted that "the entire inbound shipping route as well as part of the outbound routes should be under its control," according to an Iranian official. Washington has consistently rejected the idea that ships would have to pay tolls to cross the Strait. But military realities are narrowing the options. U.S. Air Strikes have failed to stop Tehran from disrupting shipping, and President Donald Trump seems reluctant to engage in a regional war. In these circumstances, it is becoming more likely that a compromise will be reached which gives Iran some authority over the Strait of Hormuz. Tehran would see an agreement formalising Iran's influence on the world's largest energy chokepoint as a major victory and it could have far-reaching implications. RISK PREMIUM It is easy to see the immediate impact on finances. The cost of oil and gas exports from the Gulf would be increased by a toll system. However, the psychological impact would be more significant. Gulf energy has been a reliable source of energy for decades. This reputation allowed the producers to charge a premium price from Asian buyers. The war showed that Iran could disrupt one of the most important trade routes in the world using inexpensive means such as missiles and drones. The threat will remain even if diplomatic agreements are reached and shipping resumes. This sword is not cheap. Gulf exporters may be forced to discount their products to retain customers, even after today's physical disruptions are resolved. Already, signs are emerging that this will happen. Mangalore Refinery, India's state owned refinery, issued a crude procurement tender this week that explicitly requested suppliers to avoid the Strait of Hormuz and the Red Sea. In effect, this means that suppliers will have to continue to use more expensive and less efficient routes, regardless of what happens in the next few months between the U.S.A. and Iran. Asian and European importers are looking for lower prices and more reliable supply guarantees from Qatar and the United Arab Emirates. Insurance premiums that are higher, shipping costs that are more expensive and concerns about supply security will likely become the new cost of doing business. The energy market will become more opaque as a result of this new reality. Gulf producers may be forced to agree on more direct, bespoke supply deals with importers outside the highly liquid and efficient market today. The Middle East is drifting towards a new balance in which energy flows but always under the shadow of coercion. The immediate crisis may pass, but damage to the reputation of the region could be far more lasting. You like this column? Open Interest (ROI) is your new essential source of global financial commentary. Follow ROI on LinkedIn and X. Listen to the Morning Bid podcast daily on Apple, Spotify or the app. Subscribe to the Morning Bid podcast and hear journalists discussing the latest news in finance and markets seven days a weeks.
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London insurers expand high-risk Red Sea zone following Houthi attacks
According to an advisory dated July 29, London's'marine insurance' market has expanded 'the area it deems as high risk' in the Red Sea after attacks by Yemen's Houthi group on ships. However, Egyptian waters have been excluded. The Joint War Committee, made up of members from the London Insurance Company?Market and syndicate members, has a significant influence on insurance premiums. The advisory stated that the?high risk zone has been extended to include more of the coast along the Red Sea, adjacent to Saudi Arabian port cities. It also reaches as close as the Saudi port city of Jizan. The Iran-aligned Houthis declared on July 20, a "maritime embargo" against Saudi Arabia. This opened a new front in the Iran War against the U.S. The JWC reported that "two (Saudi-linked?vessels?) were attacked within the first few days following the announcement of the Houthi?s." The?JWC adjusted the?Red Sea notification line to northwards in order to reflect this change." (Reporting and Editing by Louise Heavens, Jonathan Saul)
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Businesses affected by the Kumamoto earthquake in Japan
The following companies have suspended their operations in Japan's Kumamoto prefecture and surrounding areas after a magnitude-7.1 earthquake struck the area on Tuesday, killing at least 17. AEON KYUSHU 17 of Aeon Kyushu’s 40 stores located in Kumamoto Prefecture temporarily halted operations. The shopping mall in Kumamoto was badly damaged by a post-quake blast. Rescue workers are working around the clock to find people who may be trapped or missing. AISIN Aisin has halted operations at its Kumamoto City plant, which is one of Japan's biggest automotive parts suppliers. It is also a member of the Toyota Group. The company is inspecting the damage and working to restore operation. EBARA CORP. The pump manufacturer halted production at a Nankan town factory that produces semiconductor production equipment. HONDA MOTOR Japan’s second largest automaker will suspend operations at its Kumamoto Motorcycle Factory through Friday in order to repair damaged parts of the factory. HORIBA The manufacturer of measurement systems said that its unit related to chipmaking equipment at?Horiba Stec’s factory in Aso Kumamoto, partially resumed production Thursday after it confirmed there was no damage to the facilities. MITSUBISHI, ELECTRIC: The company reported that its two factories in Kumamoto producing power semiconductor devices had partially resumed operations after a temporary interruption on Thursday. MITSUBISHI MOTORS While there is no assembly line for the carmaker in Kyushu prefecture, they will halt production at their factory in Okayama from Thursday night due to disruptions in supply caused by the earthquake. NIPPON - PAPER INDUSTRIES A chimney collapsed at the company's Yatsushiro paper mill, causing a disruption in operations and leaving some workers injured or missing. NISSAN MOTOR Nissan Motor Kyushu in Fukuoka Prefecture and Nissan Shatai Kyushu in Fukuoka Prefecture will suspend part of their production this week because the delays in parts supply caused by the earthquake. RENESAS ELECTRONICS has suspended operations in its Kawajiri Plant in Kumamoto City, and Nishiki Plant in Nishiki Town. On Wednesday morning, the semiconductor manufacturer began inspecting clean-room facilities to assess damage. Sony Semiconductor Solutions, the parent company of Sony Semiconductor Manufacturing, announced that operations at its Kumamoto Technology Centre were suspended on Wednesday. It said that it was evaluating the damage to building and manufacturing lines at the site. TOKAI CARBONS The carbon products manufacturer and one of the largest graphite electrodes manufacturers in the world?partially re-started production on Thursday at its plant in Ashikita Kumamoto after a brief halt. The company's products are used to make solar panels and semiconductors. TOKYO ELECTRON This semiconductor equipment manufacturer halted its operations at two 'Kumamoto' facilities. The company is getting ready to resume full production at the beginning of next week. TOPPAN The major ?printing firm partially resumed operations at its plant in Tamana, Kumamoto on Wednesday, but manufacturing of semiconductor-related electronic components there has yet to restart, a company spokesperson said. TOYOTA?MOTOR Operations will be suspended at Toyota Motor Kyushu’s Miyata?, Kanda?and Kokura? plants in Fukuoka Prefecture from late Wednesday until late Friday. This is to ensure safety and logistics. Daihatsu, the unit of Toyota Motor Kyushu, will also stop operations at a Kyushu small car factory as well as an engine factory later this week. The reason given is supplier issues. Reporting by Mariko Catsumura and Hina Suzuki; Editing and production by Raju Gopalakrishnan, Edwina Gibbs
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Egypt confirms that drone caused fire to two gas vessels in Damietta
The Egyptian cabinet confirmed on Thursday that a 'drone' was responsible for the fire which engulfed the two gas ships at Egypt’s Mediterranean port of Damietta. This is the first confirmation that the blaze that broke out a day before was not an accident. The cabinet said that no party had claimed responsibility and authorities continued their investigations, taking the?necessary steps to protect Egypt's security. Ambrey, a British maritime security company, said that on Wednesday a "drone" had struck a U.S. owned gas storage tanker in the port. This was an initial assessment which raised concerns over a possible 'further spreading of conflict throughout the Middle East. Three sources in the trading industry familiar with the incident claim that the drone struck the floating storage tanker Energos Winter and caused a fire which spread to another vessel Gaslog Salem. Vanguard, a British maritime risk management company, reported that the Energos Winter had been struck by an 'unidentified projectile' on its starboard side, which caused a fire, which was put out. The incident occurred after the U.S. and Saudi Arabia attacked Iran-backed paramilitary forces in Iraq and Iran launched a missile at U.S. troops in Jordan. Donald Trump, the U.S. president, threatened to retaliate by launching a military?blockade against Saudi Arabia. This is the most extensive conflict since the U.S. began bombing Iran back in February. A video on social media was able to confirm the location of the port infrastructure and storage tanks, and the ship tracking data that matched the archive and satellite images. Energos Winter, a floating storage unit and regasification (FSRU), has a storage capacity of 138.250 cubic meters. Energos Infrastructure, a U.S. firm, owns the vessel. The company's technical, commercial and safety operations are managed by Wilhelmsen Ship Management. This Singapore-based subsidiary is owned by the Norwegian Wilhelmsen Group. In a statement issued on Wednesday, Egypt's Petroleum Ministry said that fires in the port of?Damietta were immediately dealt with?by security and firefighting teams. There were no injuries or deaths. It was reported that Karim Badawi, Egypt's petroleum minister, went to the scene to supervise response efforts. Reporting by Jonathan Saul and Marwa Rashad; Additional reporting by Nathan Chiang and Monica Naime; Editing and production by Alex Richardson and David Gregorio; Tala Ramadan.
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Russia claims that its overnight attacks on Ukraine have hit three military factories and a ship
Russia said on Thursday that it had launched a series of 'overnight strikes' on Ukrainian military factories, including in Kyiv, the capital, and Lviv in western Ukraine. It also claimed to have hit three cargo ships at sea in the Black Sea. The Defence Ministry claimed that it used missiles launched from land, sea, and air, along with strike drones to 'hit the Mayak Factory in Kyiv, which was said to be involved in the production of Ukrainian FP-1 & FP-2 strike robots. In the same statement, it claimed that it had hit Kyiv’s Electrical Technical Plant where it was said to manufacture strike and surveillance drones. It said that Russia struck the LORTA Aviation Factory in Lviv (western Ukraine), which it claimed manufactured and serviced engines for Ukraine's Flamingo Cruise missiles, as well as drones. The Russian Defence Ministry announced that its forces have struck two factories in Ukraine's western Ivano-Frankivsk Region, which manufacture or store various Ukrainian missiles including Flamingos missiles and Neptunes missiles. It said that its forces struck the Akvaplast plant in Kryvyi Rih in?the Dnipropetrovsk Region. The factory, according to the report, was involved in designing and assembling strikes drones as well as repairing self propelled howitzers. It also said that its forces had struck a cargo vessel in the port of Yuzhnyi, which is also known as Pivdennyi in the Odesa area. The ship was said to have delivered military goods. It also said that two cargo ships were struck to the east and south of Odesa, which it claimed had been delivering military goods and arms to the ports in Odesa and Chornomorsk. Could not independently confirm the report. Reporting by the Moscow Buro, Editing by Andrew Osborn
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Polish police discover debris and a crater of an unidentified object after Russia attacks Ukraine
Authorities said that on Thursday, Polish police discovered a crater in a field and scattered debris left by an unidentified object which disappeared from army radars while it was being tracked?in domestic airspace?during Russian attacks on Ukraine. Poland sent fighter jets into its airspace to protect it after Russian airstrikes killed at least thirteen people in Ukraine's neighbouring country, including in the capital Kyiv. The attacks spread to the western city of Lviv. The operational command of the armed services said on X that "an unidentified object" was detected moving westward in Polish?airspace. It added that the object disappeared?from the radars shortly after it was sighted at 3:40 a.m. It was reported that a Mi-24 helicopter went to the last location of the object to "verify and confirm" the radar data. The helicopter crew found the probable crash site in an area that was not developed near the village of Tarnawa-Kolonia, in the Lublin Province. The interior ministry said on X. Local authorities said that it was situated in farmland, about 2 km away from residential buildings. The police in the Lublin area received a report about a loud bang between the villages of Tarnawa Kolonia, and Biskupice in the county of Bilgoraj. The police said that "Officers found a crater, and scattered debris from an unknown object" in a field about 2km (1.2miles) away from the nearest building between villages. Media reported that sirens were heard in Lublin, Poland for a short time to warn of possible Russian attacks. The media reported that Prime Minister Donald Tusk had travelled to the area and announced that he had established a special coordination group. Wladyslaw KOSINIAK-KAMYSZ, Minister of Defence wrote in X that "an investigation is currently under way to determine the type of object which fell near Tarnawa/Kolonia." Reporting by Alan Charlish and Pawel Florkiewicz; Editing and editing by Clarence Fernandez, Hugh Lawson and Clarence Fernandez
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Air France-KLM exceeds its quarterly profit forecasts but reduces capacity estimates
Air France-KLM lowered its full-year guidance on capacity on?Thursday, despite a?drop that was lower than expected in the second quarter profit after revenue increases?from premium and long-haul flights. The airline group has increased ticket prices and its premium offerings to maintain profits during a downturn in the industry. However, KLM (Dutch arm) said that improvements weren't enough to improve its financial base. The Iran War has pushed up jet fuel prices and caused a reduction in capacity, so global carriers are racing to take advantage of the lucrative summer season to avoid financial problems later in the year. The Franco-Dutch Group posted a second-quarter adjusted profit of EUR484million ($552.5million), down from EUR736million?in the same time period last year, but higher than EUR327million consensus polled from the company. Benjamin Smith, the CEO of the group, said that the company had delivered a strong commercial performance, thanks to the steady demand for luxury travel, particularly in the Asian and North American market. IRAN WAR WEIGHS FORECASTS Marjan Rintel, KLM's Chief Executive Officer, said in an independent statement that global uncertainty, rising costs and intense competition will continue to "pose structural problems". Iran's war is the latest challenge to KLM's finances, which are already struggling at Amsterdam Schiphol. Rintel stated, "We need to be realistic. One good half-year will not make KLM structurally robust and strong." Air France-KLM has lowered its full-year expectations. It now expects a 1% decrease in short- and medium-haul flight numbers and an increase between 2%-3% for group flights. This is a second cut from the forecast of 3% to 5 percent made in February, before the conflict in the Middle East erupted. Steven Zaat, the finance chief at the Ministry of Finance, told reporters that the reductions will be mainly seen in the fourth quarter. AIR FRANCE-KLM BIDS FOR ?TAP STAKE Fuel bill estimates for 2026 were lowered by 4%, to $8.9 Billion. The company said that the fuel costs would be lower due to newer, more efficient aircraft and jet fuel hedges. The airline group could benefit from cheap consolidation after the Middle East conflict reduced the sector's profit forecast for 2026 by nearly half and forced weaker carriers to restructuring or buyouts. The group made a binding bid on Wednesday for a stake in Portugal's TAP of at least 44.9% for an undisclosed amount. They were competing with Lufthansa to secure a strategic alliance and gain access to lucrative TAP slots connecting its Lisbon hub with Brazil and Portuguese-speaking African nations and the United States.
Singapore grants new LNG bunkering licences
Singapore has granted 'eight new licenses for the supply of liquefied 'natural gas to be used as a marine lubricant in Singapore starting?September 1, -2026, Maritime and Port Authority of Singapore announced on Thursday.
The new licenses will increase Singapore's LNG bundling capacity in order to meet the growing demand and support a multi-fuel hub.
Licenses were granted to a number of companies, including Aramco Trading Singapore and Equatorial Marine Fuel?Management?Services. Other recipients include PetroChina International Singapore and Shell Eastern Trading.
The licenses are valid for a period of five years, from September 1, 2026 until August 31, 2031.
LNG bunkering services will include fuel supply, storage and cargo transfer.
The?latest licenses were awarded after an earlier call for applications in January of this year.
There were only three LNG-bunker suppliers before this in Singapore, including FuelLNG, Pavilion Gas, and TotalEnergies Marine Fuels.
In the first half of 2026, Singapore's LNG bunker sales grew by about 30% over the same period in 2015.
(source: Reuters)