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US airlines claim it is "imperative" that FAA achieve quick wins in airspace overhaul
According to a Wednesday letter, a group of major U.S. airline representatives said that it was imperative the Federal Aviation Administration achieve some "quick victories" in the $12.5-billion overhaul of the outdated air traffic control system. Airlines for America CEO Chris Sununu, in an unreported previously letter to Transportation Secretary Sean Duffy, said that the FAA should implement airspace modernization plans, buy simulators for improved controller training, lay telecoms fiber, and buy new radios and radars. Sununu, the head of the group representing American Airlines, United Airlines Delta Air Lines, and Southwest Airlines wrote: "These initial successes will create tangible benefits to the traveling and shipping community, help coordinate messages on progress, and boost optimism about the prospects for moving the project forward." Duffy said that he wanted air passengers to be able to see improvements by the summer travel season of 2013. He wants Congress approve an additional $19 billion over the initial $12.5 million to overhaul the entire system. USDOT and FAA declined to comment. The FAA has been criticised Prior lagging efforts in modernization The U.S. Air Traffic Control System is in dire need of an overhaul. It suffers from frequent and serious technological failures. Duffy said that the FAA was forced to use eBay at times in order to obtain spare parts. According to a government report published last year, 51 out of 138 air traffic systems were not sustainable. In the letter, it was suggested that FAA reduce the training time for new controllers and accelerate plans. to eliminate paper strips To track planes, deploy the remote tower technology in several locations that are not currently towed, eliminate floppy discs faster and use new cloud-based displays for controllers. Sununu wrote: "Reducing controller training washout rates would increase the number controllers." Air traffic control problems have been brewing for years, but the public's alarm was sparked by a series of high-profile incidents, near misses and an air crash that claimed 67 lives in January. The lack of controllers has caused flight delays for over a decade. Many are forced to work six-day weekends and mandatory overtime. About 3,500 air traffic control positions are not filled by the FAA. USDOT interviewed two of the men last week. Candidates vying for the position of project manager The multi-billion-dollar effort.
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Source: Canada brought up Keystone XL revival during tariff discussions with Trump
CBC News reported on Wednesday that Canadian Prime Minister Mark Carney discussed the possibility of reviving Keystone XL, the oil pipeline connecting Alberta with the United States. A source familiar with these discussions confirmed this. Source: Carney, under pressure from Canadians to deal with the painful U.S. steel, auto, and other tariffs, asked Trump whether he was interested in a Keystone project that had Canadian support. The source stressed that discussions are in a very preliminary stage and refused to reveal whether or not the Canadian government is confident there will be a company willing build the pipeline. The source stated that Trump was open to the idea and that negotiators would consider it in future discussions. CBC News was the first to report that Carney spoke with Trump about Keystone. Carney's and the White House did not respond immediately to requests for comments. Keystone XL is a crude pipeline that was proposed. It would have been 1,181-kilometres long and carried approximately 830,000 barrels of oil per day from the oil sands in northern Alberta, to the U.S. major storage hub of Cushing, Oklahoma. The oil would then be sent to Gulf Coast refineries. TC Energy proposed the project for the first time in 2008. It quickly attracted environmental and Indigenous resistance. Trump revived the project during his first term after it was rejected by President Barack Obama. The pipeline, though construction had begun, was never finished after U.S. president Joe Biden revoked the key permit in 2021 for the U.S. segment of the project. Trump stated in February that the Keystone Expansion was something he wanted to see built. He promised easy approvals if the company building the pipeline would "come home to America." TC Energy spun off its oil-pipeline business in October last year into a brand new company called South Bow. The company lost billions of dollars on the Keystone Project when Biden canceled his permit. South Bow's spokesperson stated that the company was not privy to ongoing discussions between Canadian and U.S. government but supported efforts to increase transportation of Canadian crude. The company announced in February that it had "moved forward" with the Keystone project. (Reporting from Amanda Stephenson, Calgary; Additional reporting and editing by Jarrett Renshaw, Maria Cheng and Caroline Stauffer)
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Azeri BTC's daily oil exports for November are expected to increase by 3% m/m.
The differential between Brent and Urals crudes dated on Wednesday remained unchanged, but the Azeri BTC plan for exports from Turkey's Ceyhan Port in November was set at 15,3 million barrels compared to the 15.4 million barrels exported in October. Calculations showed that Azeri BTC crude exports would increase by approximately 3% per day in November compared to October. Alexander Novak, Deputy Premier of Russia, said that the country has gradually increased its oil production. It was very close to achieving the output quota set by OPEC+ last month. PLATTS WINDOW There were no bids or offerings reported on the Platts Window for Urals, Azeri BTC Blend or CPC blend crudes on Wednesday. According to sources, the U.S. delayed sanctions against Serbia's Russian owned NIS oil company that runs Serbia's sole oil refinery for a week, until October 15. The Nova Ekonomija portal in Belgrade reported this on Wednesday. (Reporting and editing by Kirsten Doovan)
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Brazil will not be introducing free public transportation soon, the chief of staff to the president says
Rui Costa said that the Brazilian president's chief of staff has no plans for the government to eliminate the public transport fares in Brazil this year or the next. This comes a day after Brazil's finance minister confirmed the results of studies assessing ways to fund the sector. Costa told a local radio station that there was no plan for this or next year. "I would like to be clear that the president has only asked for studies." A government source said that there were doubts about the logistical and the political feasibility of this proposal. Source: President Luiz inacio Lula da So has asked his economic team for an evaluation of the possible implementation of the measure. However, he is not in a hurry and doesn't intend to make it a part campaign promise. Costa said that the studies would be presented to President Obama so he could assess if the project was feasible and from where the money would come. If it is viable, the announcement will come at the right time. In an interview this week with Record TV, Finance Minister Fernando Haddad stated that the proposal will be included in Lula’s policy platform in Brazil next year when it holds its general elections. Haddad stated that "(Lula), knows this issue is very important for workers, environmental protection, and urban mobility." Investors' fears that the initiative might have negative fiscal consequences have caused the finance minister's comments to influence Brazilian markets. Reporting by Lisandra Parguassu, Writing by Fernando Cardoso, Editing by Rod Nickel
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ADNOC to pay out $43 billion as dividends to its subsidiaries by 2030
Abu Dhabi National Oil Company announced on Wednesday that six of its publicly listed subsidiaries would distribute 158 billion Dirhams ($43.02billion) in dividends between 2030 and 2035. ADNOC stated that the target amount is almost double the 86 billion dollars in dividends that the six subsidiaries collectively paid since ADNOC Distribution was listed in 2017 via an initial public offer. ADNOC has raised billions by selling stakes to its subsidiaries. It aims to be the top three petrochemical company in the world and top five gas company. Last year, it established the international investment arm XRG to help achieve these goals. ADNOC Gas and ADNOC Logistics & Services will also join ADNOC Drilling to pay quarterly dividends, providing more frequent returns for investors. ADNOC announced the news at an investor presentation of its listed subsidiaries. This was the first event that the group held. ADNOC Gas also announced that it had signed a 20 year gas supply contract with Ruwais LNG, valued at 147 billion Dirhams ($40 billion), to provide feedstock to the new LNG plant. The plant is expected to start production in 2028. It will more than double ADNOC’s LNG capacity. ADNOC said the merger between ADNOC and OMV, petrochemical companies Borouge and Borealis to create Borouge Group International is expected to be completed in the first quarter 2026. ADNOC and OMV have secured financing from global banks to finance the deal worth 56.6 billion Dirhams. This includes the acquisition of Nova Chemicals. ADNOC reported that BGI's deal with the companies will generate annual benefits worth 1.8 billion dirhams. The new entity will be the fourth largest polyolefins company in the world.
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Airbus delivered 507 jets during the first nine months
Airbus announced on Wednesday that it has delivered 507 aircraft in the first nine-month period. The fourth quarter will see 313 additional planes being delivered to meet the full-year goal of 820. In a sign that engine supply has improved, the world's biggest planemaker confirmed that it delivered 73 jets to customers in September. This was a record number for this month. Airbus' spokesperson confirmed that the number of gliders - or fully assembled aircraft waiting to be powered - had decreased from the peak of 60 reported earlier this year. However, the spokesperson did not provide a new estimate. The drop in gliders and the jump in September deliveries, from 50 last year to just 25 this month, suggest that the arrival of engines has accelerated in recent weeks after being affected by the recent strike at CFM supplier as well as the competing demand for spare engine from airlines. (Reporting and editing by Kirsten Doovan; Tim Hepher)
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Ryanair, a major Boeing customer, will see 737 production reach 48 units per month in April.
Ryanair, a major Boeing customer, said that it is confident that the U.S. aircraft manufacturer will be granted permission to increase the monthly production rate for its flagship 737 to 42 by October and to 48 by March orApril next year. Boeing, Boeing's biggest European customer, has repeatedly had to cut its growth forecasts because of delays. Boeing is currently working to stabilize production following a mid-air blowout panel on a new 737 MAX that occurred in January 2024. This exposed widespread quality and safety issues. Michael O'Leary is the Chief Executive Officer of Ryanair Group. His team regularly meets with Boeing management. He said he felt "fairly confident," that the U.S. Federal Aviation Administration will approve an increase in production monthly from 38 to 42 aircraft in October. RYANAIR - 'Pretty Confident' about progress at Boeing Will the FAA allow them to move to rating 48 next March or April? That would be a big jump. He said in an interview that he was "pretty confident" this would happen. After the panel explosion, the FAA capped 737 MAX output at 38 per months in early 2024. On September 26, it said that Boeing has not requested a rate hike, but if they did, FAA safety inspectors on site would do extensive reviews. Boeing stated earlier in the month that there were no supply chain issues that would prevent it from increasing monthly 737MAX production to 42 by the end of the year. Boeing's other major concern is when the MAX 7 and MAX 10 will be approved by regulators. Ryanair has placed 150 MAX 10 firm orders. Will they be able to get the MAX 7 or MAX 10 certified by 2026? Boeing tells us that they are now confident in the certification process. O'Leary, while praising recent achievements at Boeing and expressing his gratitude for them, said that there are no guarantees. He said, "We're confident but there is still a chance that it will be disrupted." Corina Pons is the reporter. Conor Humphries wrote the article. David Latona, Mark Potter and Mark Potter (Editing)
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As the shutdown continues, airlines prepare for a third day of flight delays
The major U.S. carriers are bracing themselves for a third consecutive day of delays as the U.S. Federal Aviation Administration continues to face staffing problems for air traffic control as the stalemate regarding funding for the government continues. Nearly 10,000 flights were delayed on Monday and Tuesday. Many of these delays were caused by the FAA slowing down flights due to air traffic controllers absences in facilities all over the country, as the shutdown entered its eighth day. The air traffic control shortages during the shutdown are more severe than during the last major government funding halt in 2019, which occurred during U.S. President Donald Trump's second term. Maryland Governor Wes Moore, along with congressional Democrats, called on Wednesday for an end to the airport shutdown at Baltimore-Washington International Airport. They noted that air traffic control officers and Transportation Security Administration agents are working without being paid. Moore, a Democrat from Maryland, stated that President Trump was unable to "close a deal" in order to keep the federal government open. Kwiesi mfume (Democrat) called for supplemental laws that would pay air traffic control during a shut down. He said that people are starting to be concerned about flying, and as a country we shouldn't get to this point. During a 35-day government shutdown in 2019, the number of controllers and TSA agents absent increased as they missed paychecks. This led to longer waits at checkpoints. The authorities were forced to reduce air traffic in New York. This put pressure on legislators to end the standoff quickly. They are not paid. During the shutdown of the federal government, 13,000 air traffic control officers and 50,000 Transportation Security Administration (TSA) officers still have to report for work. The controllers will receive a partial pay on October 14, for work done before the shutdown. Moore stated, "Our BWI employees are still here." Moore said, "They do it because they are patriots." They do it because they understand the importance of their work. Sean Duffy, Transportation Secretary, said that since the FAA shutdown began last week there has been a slight rise in sick leave. Staffing in certain areas of air traffic has also decreased by half. Air traffic control shortages have been a problem in the U.S. for over ten years. Many controllers were working six-day work weeks and mandatory overtime even before this shutdown. About 3,500 air traffic control positions are not enough to meet the FAA's target staffing levels.
Kurdish oil smuggling to Iran flourishes
Heading for Turkey to the north and Iran to the east, numerous oil tankers snake every day from near Kurdistan's capital Erbil, clogging the Iraqi region's typically winding and mountainous highways.
The tankers are the most noticeable element of a huge operation to truck oil from the semi-autonomous area of Iraq to Iran and Turkey in murky, off-the-books transactions that have actually grown since an official export pipeline closed last year.
pieced together the information of this thriving trade through conversations with over 20 individuals consisting of Iraqi and Kurdish oil engineers, traders and federal government authorities, politicians, diplomats and oil industry sources.
They painted a picture of a flourishing service in which more than 1,000 tankers bring at least 200,000 barrels of cut-price oil every day to Iran and, to a lower degree, Turkey - generating about $200 million a month.
The scale of the informal exports, which has not previously been reported, is one reason Iraq has actually been unable to stick to output cuts agreed with the OPEC oil cartel this year, Iraqi authorities stated.
Iranian and Turkish officials did not respond to requests for remark.
Iraqi oil ministry spokesperson Assim Jihad said the Kurdistan trade was not approved by the Iraqi federal government and state oil marketer SOMO was the only authorities entity permitted to offer Iraqi crude.
He said the government did not have accurate figures for how much oil was being smuggled into Iran and Turkey.
OPEC now has less perseverance for smuggling and has even been known to slap punitive measures on offending members. I question we'll see any retribution against Baghdad because it's well known that the Kurdish region lies outside central control, said Jim Krane at Rice University's Baker Institute in Houston.
Business might likewise put Kurdistan on a collision course with close ally Washington, as it evaluates whether the trade breaches any U.S. economic sanctions on Iran, according to a. U.S. official.
Up until in 2015, Kurdistan exported the majority of its crude via. the main Iraq-Turkey Pipeline (ITP) ranging from the Iraqi. oil city of Kirkuk to the Turkish port of Ceyhan.
However those exports of about 450,000 barrels per day (bpd). halted in March 2023 when a worldwide tribunal ruled in. favour of the Iraqi federal government's call for the shipments. to stop - leaving the pipeline in legal and monetary limbo.
The federal administration in Baghdad, which has long held. that it is the only celebration authorised to offer Iraqi oil,. effectively argued that Turkey organized the exports with the. Kurdistan local federal government without its authorization, in breach of. a 1973 treaty.
' NO TRACE'
Tankers soon began taking Kurdish oil to neighbouring. countries rather and business accelerated this year after. talk with resume the pipeline stalled, industry sources, oil. authorities and diplomats stated.
Regional officials said none of the proceeds are represented,. or signed up, in the coffers of the Kurdistan Regional. Government (KRG), which has been having a hard time to pay thousands of. public workers.
There is no trace of the oil revenues, said regional. legislator Ali Huma Saleh, who was chair of the oil committee in. Kurdistan's parliament until it was dissolved in 2023. He put. the trade at over 300,000 bpd, greater than the majority of other price quotes.
Hiwa Mohammed, a senior official in the Patriotic Union of. Kurdistan (PUK), one of Kurdistan's 2 judgment parties, said the. oil was going through border crossings with the knowledge of the. local and federal governments.
KRG Treasury authorities did not respond to ask for. comment. The KRG Ministry of Natural Resources, which oversees. oil trading in Kurdistan, does not have a spokesperson.
A U.S. authorities stated Washington was looking at the oil trade. to examine compliance with sanctions on Iran.
The U.S. Treasury Department declined to comment.
A State Department official stated: U.S. sanctions on Iran. stay in location, and we regularly engage with partners on. sanctions enforcement concerns, but we do not detail those. conversations.
A senior authorities at Kurdistan's natural deposits ministry. stated oil production in the region was running at 375,000 bpd, of. which 200,000 was trucked to Iran and Turkey, and the rest. refined locally.
No one knows what occurs to the incomes from the 200,000. smuggled abroad, or the oil derivatives offered to refineries in. the region, stated the authorities, who decreased to be called because. the sensitivity of the matter.
CUT-PRICE CRUDE
The crude is offered by oil companies in Kurdistan to local. purchasers at cut-price rates of $30 to $40 a barrel, or about half. the worldwide rate, which equates to at least $200 million. a month in revenue, industry and political sources said.
Kurdistan's oil production is bulk managed by 8. worldwide oil firms: DNO ASA, Genel Energy. , Gulf Keystone Petroleum, ShaMaran Petroleum. , HKN Energy, WesternZagros, MOL's Kalegran and. Hunt Oil Company.
Hunt Oil, based in the United States, declined to comment. The other seven business did not react to requests for. comment, nor did regional business KAR Group, a significant player in. Kurdistan.
While many oil production halted when the pipeline closed,. some companies including DNO, Keystone and ShaMaran have actually said in. declarations they have actually since begun producing crude for sale to. purchasers within Kurdistan.
ShaMaran stated the average rate of oil it offered in the very first. three months of 2024 was $36.49 per barrel while Keystone said. in June that sales of crude from the Shaikan Field this year. were bringing in about $28 a barrel.
The market sources stated approved local purchasers take the. crude from oil companies and sell it on through middlemen for. export, without the knowledge of the producers.
The large majority of the trucked oil goes to Iran, most of. the market and political sources said, by means of main Iraqi. border crossings consisting of Haji Omaran, or through Penjwen even more. south.
From there, it is packed onto ships at Iranian ports in the. Gulf at Bandar Imam Khomeini and Bandar Abbas - a trade path. utilized in the past for Kurdish oil exports - or moved by. roadway to Afghanistan and Pakistan, industry, political and. diplomatic sources said.
could not determine what Iran, which deals with. difficulties selling its own oil items since of sanctions,. gets out of the trade, nor who is receiving the oil in Iran.
The PUK's Mohammed said it was sent out to Iran to be improved. into gas.
Pakistan's petroleum ministry declined to comment. Afghan. officials did not react to ask for comment.
BLACK-MARKET LABYRINTH
The trade is the current model of a long-standing Iraqi. black-market oil business commonly viewed as benefiting political. elites who are carefully connected to business interests.
Twelve individuals said authorities in Kurdistan's two judgment. celebrations, the Kurdistan Democratic Celebration (KDP) of the Barzani. clan and the PUK of the Talabani clan, were the recipients.
There is a maze of black-market salesmen getting. paid, and individuals authorizing those sales. It's not that they are. just looking the other way. They're taking their share, an. industry source working in the Kurdish oil trade said.
A senior diplomat in Baghdad said political interests were. so vested in the trade that resuming main exports by means of the. pipeline, when seen as a priority, had dropped down the. diplomatic program.
I'm not going to be advocating for this while they're all. having a party, the person stated.
KDP authorities did not react to requests for remark about. the black-market trade. Mohammed, the PUK authorities, did not. comment on who may be behind it.
Kurdish authorities say the area was pushed into the trade. by the pipeline closure, which they view as part of a broader. effort by Iran-backed Shi'ite celebrations in Baghdad to curb the. relative autonomy they have actually delighted in given that the end of the first. Gulf war in 1991.
A senior Iraqi parliamentary authorities familiar with oil. matters stated Baghdad was aware of the details of the business. however was avoiding public criticism as officials look for to fix. outstanding disputes with Erbil.
Putting pressure on Erbil to stop oil smuggling would corner. the region and deprive it of all sources of financing, which could. lead to its collapse, stated the individual, who decreased to be. named due to the sensitivity of the problem.
The trade has actually been cited independently by Iraqi authorities as. lagging Baghdad's failure to stick to its OPEC production. quotas, a bone of contention with OPEC's de facto leader Saudi. Arabia.
Jihad, the oil ministry representative, said Iraq, which has. vowed to downsize output this year to offset the. overproduction, was committed to voluntary production cuts.
For now, the sheer volume of tankers snarling up highways,. and getting associated with accidents, is outraging homeowners along. major roads.
It's very agonizing, said Rashid Dalak, checking out the tomb. of his sibling Rouzkar, who was eliminated in a crash with a tanker. in May on the highway in between Erbil and Sulaimaniya that leads. to the Iranian border.
Despite travelling through and damaging our roadways and killing. our liked ones ... no-one here has actually seen a dollar.
(source: Reuters)