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Sources say that Amazon paid 180 million Euros to Italy to end the tax and labour probe
Sources with knowledge of this matter confirmed on Friday that an Italian unit of the e-commerce giant Amazon had paid compensation to delivery staff and removed a monitoring system, putting an end to a probe of alleged tax fraud, and illegal labor practices. In July 2024, the logistics services unit of the group was accused by the authorities of circumventing tax and labour laws. It relied on limited liability companies or cooperatives to supply it with workers. The unit also avoided VAT tax, and reduced social security payments. Milan's prosecutors confiscated 121 million Euros from the unit at the time. The group, which has paid the Italian tax agency around 180 million Euros ($210 million), joins more than 30 companies that have settled similar investigations in the last two years. According to a document seen by the. Amazon released a statement saying, "We have clarified with the authorities our position and they have acknowledged the high standards that our collaboration model has with our delivery partners." The company said that "our engagement with Italian institutions, and other stakeholders, has improved compliance throughout the industry." Milan's prosecutor's office has conducted investigations into the hiring practices of several large companies, including Italian DHL, FedEx, UPS and Italian supermarket chain Esselunga. Il Sole 24 Ore was the first to report on Amazon's settlement. (1 dollar = 0.8579 euro) (Reporting and writing by Emilio Parodi; editing by Alvise Armilini, Elaine Hardcastle).
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Airbus confirms November deliveries dip after industrial glitch
Airbus said that it delivered 72 planes to bring the total number of planes this year up to 657. Airbus CEO Guillaume Faury cited the figure as a sign of a poor November following an industrial glitch. The world's biggest planemaker will have to deliver a record-breaking 133 planes to reach a revised 790 goal for 2025. The November tally is down from 78 the month before and 84 last November, according to a report released this week. The company's lower delivery data comes after a difficult week, in which it announced that there was a quality problem with some metal fuselage panels in its most popular A320 family jets. This came just days after an unexpected recall to fix a bug in a computer. The planemaker reduced its commercial deliveries for the full year by 4%, to "around 790", down from 820. However, it maintained its financial targets. Airbus previously stated that it takes "around" as a 20 aircraft margin of error. Airbus said Friday it had also booked 75 new orders for November. This brings the total of this year's orders to 797 or a net 700, after cancellations. Airbus remains ahead of Boeing in deliveries, even after the fuselage issue linked to a Spanish manufacturer, as Boeing recovers from a long-running crisis. However, Airbus is behind on new orders. Boeing reported net orders of 782 for the period January-October, which is the most recent data available. (Reporting and editing by David Goodman.)
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Sources say that Amazon paid 180 million Euros to Italy to end the tax and labour probe
Sources with knowledge of this matter confirmed on Friday that an Italian unit of the e-commerce giant Amazon had paid compensation to delivery staff and removed a monitoring system, ending an investigation into alleged tax fraud. In July 2024, the logistics services unit of the group was accused by the authorities of circumventing tax and labour laws. It relied on limited liability companies or cooperatives to supply it with workers. The group also avoided VAT tax, and reduced social security payments. Milan's prosecutors confiscated 121 million Euros from the unit at the time. Two sources confirmed that the group had paid the Italian tax agency around 180 million euro ($209.83m) as part of an overall settlement worth 1 billion euros involving 33 companies which were targeted by similar investigations conducted in Milan. They added that these include Italian units DHL, FedEx and Ups as well as the Italian supermarket chain Esselunga. Il Sole 24 Ore was the first to report on this settlement. The paper and sources reported that under the agreement, the companies which were being investigated also agreed to hire directly more than 50,000 employees who had previously been hired indirectly via the cooperatives. $1 = 0.8579 Euros (Reporting and writing by Emilio Parodi; editing by Alvise Armilini)
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India's IndiGo cancels 500 flights. New Delhi and Mumbai are hard-hit as the crisis worsens
IndiGo, India's largest carrier, will cancel 500 flights in India on Friday, and all departures out of New Delhi will be grounded. The crisis has deepened at the airline, which admitted that it had not planned for new flight duty times imposed by pilots. In its fourth day of crisis, the airline has lost over 60% of market share, and thousands passengers are stranded in various parts across the country. This is the largest challenge the airline has ever faced. Airport sources informed that IndiGo intends to cancel 104 flights from Mumbai, 102 from Bengaluru and 92 from Hyderabad. Airport sources familiar with the development declined to name them because they weren't authorised to disclose information. Delhi airport has announced that all IndiGo flights have been cancelled for today. A source estimated this number at 235. IndiGo informed the regulator that its operations will be fully restored on February 10th. IndiGo asked for an exemption from certain provisions that limit the number of hours a pilot can work at night. Indigo stated that the disruptions were primarily due to "misjudgments and planning gaps" when implementing new pilot duty regulations which increased the mandatory amount of rest per week by pilots from 12 hours to 48, starting November 1. The old rule allowed six night landings per week. IndiGo shares fell nearly 3% Friday, bringing their weekly decline to 10.3%. IndiGo's performance in terms of on-time delivery dropped further to 8.5% Thursday, from 19.7% Wednesday. The airline cancelled more than 250 flights on Thursday and around 150 on Wednesday. (Editing Aditya Kahra, Kate Mayberry and Michael Perry; Editing Michael Perry).
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FT reports that Visa will be moving its European headquarters from London to Canary Wharf.
The Financial Times reported Friday that Visa's European headquarters will be moving to London Canary Wharf. The report stated that Visa will lease 300,000 square foot at One Canada Square over a period of 15 years. It also added that the company would rent 11 floors in the building it plans to occupy by 2028. Visa and Canary Wharf Group have not responded to our requests for comment. Canary Wharf struggled to keep tenants after the COVID-19 epidemic. Now, the area is enjoying a recovery as more companies encourage their staff to return to work. JPMorgan Chase announced last week a plan to construct a tower at the Canary Wharf Financial District, which will contribute 9.9 billion pounds (13.2 billion dollars) to the local economy over the next six years - this includes the construction costs - as well as create 7,800 new jobs.
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Sources say that India's IOC and BPCL purchases Russian oil in Jan-loads which is compliant with sanctions
Trade sources familiar with the situation said that Indian Oil Corp. and Bharat Petrol Corp. placed orders in January for the loading Russian oil from nonsanctioned providers due to the widening discount. BPCL said it had purchased four cargoes: two of Russian Urals, and one of CPC. Urals were sold at a discounted price of $6 to $7 per barrel compared to Brent. They said that India's largest refiner IOC has also purchased some cargoes from Russia for loading in January. IOC has consistently purchased Russian oil cargoes that comply with sanctions since Washington imposed sanctions against top Russian oil producers Rosneft Lukoil and in October. BPCL, however, skipped the December-loading purchases of Russian oil. Kazakhstan supplies the majority of oil sold through the Caspian Pipeline Consortium system (CPC). Russia also sells oil through CPC. BPCL and IOC didn't immediately respond to a comment request. The other state refiners, including Hindustan Petroleum Corp, Mangalore Refinery & Petrochemicals Ltd and HPCL-Mittal Energy Ltd have also stopped purchasing Russian oil. Nayara Energy, a company owned in part by Rosneft and exclusively processing Russian crude oil, has been the sole supplier of Russian oil since other suppliers withdrew following British sanctions and EU sanctions. Reliance Industries Ltd., the operator of the largest refining complex in the world, said that it would process any parcels arriving after November 20, under its agreement with Roneft, at its Indian-focused refinery. (Reporting and editing by Tom Hogue, Michael Perry, and Nidhi verma)
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Noem: US travel ban now includes more than 30 countries
U.S. plan to increase the number of countries that are covered by their travel ban from 30 to more than 30. Homeland Security Secretary Kristie Noem told reporters on Thursday that the U.S. plans to expand its travel ban beyond 30 countries. Noem was asked in an interview with Fox News "The Ingraham Angle" if the Trump administration would increase the number of countries listed on the travel ban to 32. She said, "I will not be specific about the number but it is over 30 and the president continues to evaluate countries." In June, the President signed a proclamation The bans apply to both immigrants and non-immigrants, such as tourists, students and business travelers. Bans are imposed on both immigrants and nonimmigrants such as students, tourists and business travelers. Noem didn't specify which countries will be added to the new list. Why should we let people from this country come to the United States if there is no stable government, if their country cannot sustain itself, and unless they can tell us about these individuals and help us vetting them? Noem said. Previously, it was reported that the Trump Administration is considering Ban on citizens from 36 additional countries According to a cable from the State Department, this is preventing certain peoples from entering the United States. The administration's migration measures have escalated since the introduction of the list. Shooting of two National Guard Members Washington, D.C., was the scene of a protest last week. Investigators have determined that the shooter was an Afghani national who entered the U.S. through a resettlement programme in 2021, under which officials of the Trump administration have claimed there was not enough vetting. Trump promised to " Permanent pause He did not name any or define the term "third world countries" but he said that "migration from all Third World Countries". Before that, officials at the Department of Homeland Security claimed Trump had ordered an Widespread review of asylum claims Green Cards were issued to citizens from 19 countries under the presidency of Democratic President Joe Biden. Since taking office again in January, Trump prioritizes immigration enforcement. He has sent federal agents to the major U.S. Cities and turned away asylum seekers on the U.S. Mexico border. His administration has often highlighted its deportation drive, but has not placed as much emphasis on efforts that would reshape the legal immigration. (Reporting and editing by Jasper Ward in Toronto, Leslie Adler, and Ryan Patrick Jones)
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US FAA selects Peraton as the new head of air traffic control
The Federal Aviation Administration announced on Thursday that it had selected Peraton, owned by Veritas Capital and a national-security company, to be the project manager for a $12.5 billion effort to revamp the U.S. aging air traffic control system. After decades of complaining about airport congestion, technological failures, and flight delays, Congress approved in July a plan worth $12.5 billion to overhaul the system and increase controller hiring. Peraton is the only integrator that will manage this massive project, and it will deliver it on schedule without causing any disruptions to air traffic, according to the FAA. The FAA chose Peraton over IBM and Parsons, a joint bid, as one of two firms it had confirmed in September. In a press release, FAA Administrator Bryan Bedford stated that "we are taking bold actions to ensure our system of air traffic is the envy around the globe." This month, he will update the House and Senate Committees on air traffic control reform. The FAA stated that the contract, which is a first of its kind, was structured to reward performance and encourage smart funding. Sean Duffy, Transportation Secretary, has stated that he would like an additional $19 to $20 billion in funding from Congress to reform air traffic control. According to a report from 2023, the FAA's communication system has been out of date for years and it is difficult for the agency to get spare parts for some systems. The report outlined aging FAA facilities that have leaking roofs and heating and air-conditioning systems, as well as outdated surveillance radars. These must be replaced soon at a cost in the billions of dollars. A separate report last year said that 51 of the 138 FAA air traffic control telecommunications systems were not sustainable. The FAA announced that Peraton would begin working on initial priorities, such as setting up of a new digital control center and transitioning from copper to modern fiber infrastructure. Chris Sununu (CEO of Airlines for America) praised this effort in a press release. Sununu stated that it was time to replace antiquated equipment such as floppy discs, copper cables and paper strips with 21st century technology and equipment. The Transportation Department announced that the system upgrade will be completed within three years. Its goal is to "reduce downtime, improve efficiency, strengthen safety, and support the future growth of national airspace", the department said. A report released in October showed that the FAA's 15-billion dollar "Next Gen" overhaul of air traffic control project, which began more than 20 years ago, had been plagued by delays and cost overruns, as well as being less ambitious than originally envisioned. (Reporting and editing by Leslie Adler, Clarence Fernandez, and David Shepardson)
Boeing to plead guilty in United States probe of fatal 737 MAX crashes, states DOJ official
Boeing has actually consented to plead guilty to a criminal scams conspiracy charge to solve a U.S. Justice Department examination linked to two 737 MAX deadly crashes, a federal government authorities stated on Sunday.
The plea, which needs a federal judge's approval, would brand the planemaker a founded guilty felon. Boeing will also pay a. criminal fine of $243.6 million, a Justice Department official. said.
The charge associates with two 737 MAX crashes in Indonesia and. Ethiopia over a five-month duration in 2018 and 2019 that killed. 346 individuals and prompted the families of the victims to require. that Boeing face prosecution.
A guilty plea possibly threatens the company's ability to. protected rewarding government agreements with the similarity the U.S. Defense Department and NASA, although it could look for waivers. Boeing ended up being exposed to criminal prosecution after the Justice. Department in May found the business breached a 2021 settlement. involving the fatal crashes.
Still, the plea spares Boeing a controversial trial that could. have exposed much of the company's decisions leading up to the. deadly MAX plane crashes to even higher public examination. It. would also make it much easier for the company, which will have a brand-new. CEO later this year, to try to progress as it seeks approval. for its planned acquisition of Spirit AeroSystems.
Boeing decreased to comment.
Boeing has likewise agreed to invest at least $455 million over. the next three years to enhance its safety and compliance. programs, the official said. DOJ will select a third-party. screen to manage the company's compliance. The screen will have. to publicly submit with the court yearly reports on the company's. progress.
The Justice Department on June 30 used a plea agreement. to Boeing and gave the company up until the end of the week to take. the deal or face a trial on a charge of conspiring to defraud. the Federal Air travel Administration in connection with a key. software application feature tied to the fatal crashes.
After being briefed last week on the DOJ's offer, an attorney. for some of the families slammed it as a sweetheart offer. They have actually sworn to oppose the handle court.
The Justice Department's push to charge Boeing has deepened. an ongoing crisis swallowing up Boeing since a separate January. in-flight blowout exposed continuing security and quality problems. at the planemaker.
A panel blew off a new Boeing 737 MAX 9 jet during a Jan. 5. Alaska Airlines flight, just 2 days before the 2021 postponed. prosecution arrangement that had shielded the business from. prosecution over the previous fatal crashes expired. The. arrangement just covers Boeing's conduct before the deadly crashes. and does not protect the planemaker from any other potential. examinations or charges associated with the January event or. other conduct.
Boeing is pleading guilty to making purposefully false. representations to the Federal Air Travel Administration about. having broadened a key software feature used on the MAX to. run at low speeds. The new software conserved Boeing money by. requiring less intensive training for pilots.
The Maneuvering Qualities Enhancement System (MCAS). is a software feature developed to instantly press the. plane's nose down in certain conditions. It was tied to the. two crashes that resulted in the FAA's grounding the airplane for 20. months, an action that cost Boeing $20 billion, and the. federal government lifted in November 2020.
As part of the deal, Boeing's board of directors will satisfy. with family members of those eliminated in the MAX crashes, the official. stated.
The contract does not shield any executives, the DOJ. official said, though charges against individuals are seen as. not likely due to the statute of limitations.
The concurred charge will be Boeing's second fine of $243.6. million related to the deadly crashes-- bringing the complete fine to. the maximum enabled. The company paid the great previously as. part of 2021's $2.5 billion settlement. The $243.6 million fine. represented the quantity Boeing conserved by not executing. full-flight simulator training.
Households of the victims of those crashes slammed the. previous agreement and previously this year pushed the Justice. Department to seek as much as $25 billion from Boeing.
This year, the DOJ has actually held several meetings to hear from. the victims' families as they investigated Boeing's breach of. the 2021 offer.
(source: Reuters)