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Sources say that ADQ is among the potential bidders for Italy's Catania Airport.
Two sources familiar with this matter have confirmed that Abu Dhabi's sovereign fund ADQ is a possible suitor for the sale of Catania Airport's operator, in Sicily. The fund has also expressed an initial interest in the asset. Sources, who spoke on condition of anonymity, said that the sale process had not yet begun. However, interest is growing in the asset ahead of any potential launch. Catania, Sicily's principal airport, is Italy's fifth-busiest airport in terms of passenger traffic. The airport is operated under a long-term concession by SAC. This company is owned by the local authorities and chambers. SAC manages Comiso Airport, a smaller airport in southern Sicily. One person said that the proposed terms of sale would sell between 51% to 66% of SAC. LONG-RUNNING PROCESS OF PRIVATISATION People said that the asset's value could range between 500 and 600 millions euros ($580.60 - $696.72 Million). According to one person, the valuation is based on sector multipliers and core earnings expected of more than 30 million euros in this year. This reflects its concessions-based model which, typically, trades below airport freehold assets. The sources say that the Italian civil aviation authority ENAC has been reviewing the draft of the tender for sale. One of the sources added that a green signal is expected by the end of October. This would allow the process to begin in formally. ADQ declined comment. SAC and ENAC didn't immediately respond to our request for comment. In a letter to, Antonino Bellcuore (special commissioner of the Chamber of Commerce of South and East Sicily), which owns a 60.6% share in SAC, expressed his appreciation for ADQ's investment, stating that it demonstrated the value of the asset, and that the path towards privatisation was "the right thing to pursue." Since 2022, the privatisation of Catania Airport has been planned. Italian investment bank Mediobanca is the advisor to guide the sale. Since taking office as Italian Prime Minister in 2022, Giorgia Mello has pursued stronger relations with Gulf nations. Rome signed a strategic partnership this year with the United Arab Emirates. The UAE has committed to invest $40 billion in Italy, across key sectors. ADQ's total assets were $251 billion at the end of 2012, which included energy, transport, and logistics such as Abu Dhabi Airports, and state carrier Etihad Airways.
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Airbus' fleets continue to grow, and the company is seeing a sharp increase in its aircraft services.
Airbus predicts a 3.6% growth in aircraft service over the next twenty years. This will create jobs for 2,35 million pilots as well as mechanics and other workers. In recent years, the European planemaker has been one of many aerospace companies to have diversified into services in addition to their traditional manufacturing roles. This is done so that they can compete with independent aftermarket providers who offer higher margins. Airbus expects the value of services to total $311 billion per year by 2044. The value of the demand for off-wing maintenance and repair shop visits is expected to more than double to $218 billion in the next five years, while on-wing inspections or light maintenance will increase to $34 billion. Airbus executives stated that global supply chains which feed repair networks and factories for new aircraft are still recovering following the COVID-19 epidemic but are improving. Airbus' core planemaking business will generate 10% of its revenue from services by 2024. Boeing predicted in June that the demand for commercial services would total $4.7 trillion over the next twenty years, based on a 3.8% annual growth rate.
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After China tightened export controls, shares of rare earths mining companies rose.
Stocks of rare-earths miners rose on Thursday morning after China tightened its export controls for metals vital to the electronics and weapons industries. The goal was to limit shipments overseas to defense firms and semiconductor consumers. This announcement comes after U.S. legislators called for more restrictions on chipmaking equipment exports to China. It also expands upon the sweeping controls Beijing implemented in April that caused shortages all over the world. The U.S. Government has increased its efforts to reduce the reliance on China, by investing in companies that it considers to be essential to national safety. These include critical minerals and semiconductor firms. Ramaco Resources shares jumped 11% and Critical Metals shares soared 18%. Shares of NioCorp Developments rose 5.5% while Trilogy Metals and MP Materials, as well as USA Rare Earth, all gained over 4%. VanEck Rare Earth and Strategic Metals ETF grew 1%. The VanEck Rare Earth and Strategic Metals ETF has risen by 1%. China is the only country in the world that has a rare earth mine. Neha Mukherjee is a research manager for Benchmark Mineral Intelligence. She said, "The message was clear." If the U.S., and its allies, want supply chain safety, they must create independent value chains from magnet to mine. Mukherjee anticipates increased efforts to reduce reliance on China. This will include more investments, U.S. support for the development of a mine-to magnet supply chain and more agreements and collaborations. Mukherjee said, "This is a great opportunity for new producers and processors to establish themselves as credible alternative." (Reporting from Vallari Srivastava, Bengaluru. Editing by Vijay Kishore.)
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Khatri, the co-founder of India's Akasa Airlines, will leave the airline due to expansion problems
Neelu Khtri, cofounder and head international operations of India's Akasa Airlines, will leave the airline in order to pursue new opportunities. This is at a moment when delayed Boeing jet delivery has hindered Akasa's expansion plans. Khatri is among the nine cofounders of Akasa. The company began commercial operations in the year 2022, and it is backed both by the investment arm of Indian billionaire Azim Premji and the family members of Rakesh Jhunjhunwala. The airline has not named a successor for Khatri. Khatri is a former Indian Air Force Wing Commander. Vinay Dube, CEO of the Mumbai-based airline, said in an email that Khatri’s transition had been planned with top executives. The international plans for the Mumbai-based carrier were not changed. In March, it was reported that Akasa Air executives privately criticized Boeing for the delayed delivery of planes as hundreds were left unemployed. The airline placed 226 Boeing 737 MAXs on order, but the delays in delivery are due to regulatory oversight and supply chain issues. Ankur Goel, the finance chief at the time, told reporters that he expects jet deliveries to increase in coming years. The airline launched its international operations in 2024, and added a sixth international route in the first half of this year. (Reporting and editing by Kirsty Donovan; Abhijith Ganahapavaram)
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ARM Energy invests $2.3 billion on Mustang Express pipeline in Texas
ARM Energy Holdings announced on Thursday that it and its partner Pacific Investment Management Company have reached a final decision regarding their $2.3 billion Mustang Express Pipeline Project in Texas. ARM, a marketing company for energy, stated that the project is benefited by a long-term contract with Sempra to ship natural gas for Port Arthur LNG Phase 2 Project, which has recently reached its final investment decision. Sempra announced earlier this month that it would sell a stake of 45% in its infrastructure division for $10 billion and approved a $14 billion expansion to the Port Arthur LNG Project in Texas. According to the Energy Information Administration, the U.S. will be the top LNG exporter in the world this year with a total capacity of 115 million MTPA. Donald Trump returned to office as President in January, promising to unleash U.S. Energy. The industry enjoyed a strong global demand. He reversed the freeze on new export licenses. The pipelines will be built and operated by ARM and will have a capacity of 2,5 billion cubic feet (bcf/d). They are expected to be finished in late 2028, or early 2029. The pipeline is divided into three segments: Mustang Mainline (also known as the Golden Triangle), Cougar Lateral, and Golden Triangle where the mainline connects Katy Hub with Port Arthur. (Reporting and editing by Leroy Leo in Bengaluru, Katha Kalia is based in Bengaluru)
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India's Akasa Airlines says that co-founder Khatri will leave the airline amid expansion problems
Neelu Khtri, cofounder and head international operations of India's Akasa Airlines, will leave the airline in order to pursue new opportunities. This is at a moment when delayed Boeing jet delivery has hindered Akasa's expansion plans. Khatri is among the nine cofounders of Akasa. The company began commercial operations in the year 2022, and it is backed both by the investment arm of Indian billionaire Azim Premji and the family members of Rakesh Jhunjhunwala. The airline has not named a successor for Khatri. Khatri is a former Indian Air Force Wing Commander. Vinay Dube, CEO of the Mumbai-based airline, said in an email that Khatri’s transition had been planned with top executives. The international plans for the Mumbai-based carrier were not changed. In March, it was reported that Akasa Air executives privately criticized Boeing for the delayed delivery of planes as hundreds were left unemployed. The airline placed 226 Boeing 737 MAX orders, but the delays in delivery are due to regulatory oversight and supply chain issues. Ankur Goel, the finance chief at the time, told reporters that he expects jet deliveries to increase in coming years. The airline launched its international operations in 2024, and added a sixth international route in the first half of this year. (Reporting and editing by Kirsty Donovan; Abhijith Ganahapavaram)
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Transnet gets control of Chinese spares disputed by S.African court
Transnet's CEO announced on Thursday that a South African court had ordered China's CRRC E-Loco, which has been in a long-running dispute with Transnet, to release locomotive parts it had refused to provide. This decision is a boost to the plans of Transnet to improve its performance. Both parties are involved in a legal battle after Transnet halted 1,064 locomotives supplied by four original equipment manufacturers, including CRRC E-Loco. Transnet claimed that contracts for 2014 worth $54.4 billion rand (3.18 billion dollars) were illegally awarded by previous company leadership. Transnet reported that in 2023 161 locomotives provided by CRRC E-Loco did not run due to the Chinese firm withholding spares or maintenance support. This had a negative impact on Transnet's rail freight operations. Transnet, who insists that it paid for parts under the disputed agreement before it was terminated won a separate order from a court last July, stopping CRRC E-Loco's ability to sell or relocate parts already in South Africa. Transnet CEO Michelle Phillips said, at a mining convention in Johannesburg, that Transnet recently won another court decision related to the handover of spares which were stored in warehouses across the country. "I would not pay for my parts again." Phillips explained that after going back to court the CRRC was given five days to deliver these parts to Transnet. We've been checking out those parts for the last few days. She added, "We are doing a full inventory of these parts." CRRC E-Loco did not respond to a request for comment. Transnet's dispute over CRRC E-Loco has exacerbated its equipment shortages. This includes locomotives not delivered under the contract that was terminated. Cable theft and vandalism have also affected the company's performance. The company's freight volume has fallen from 226 million tons in 2017/18, to 160 millions tons in 2024/25.
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Putin explains to Aliyev of Azerbaijan how Russian air defences brought down a passenger aircraft
Azerbaijani leader was told by Russian President Vladimir Putin that two Russian missiles were detonated next to an Azerbaijan Airlines aircraft last year, after Ukrainian drones invaded Russian airspace. Putin promised compensation for those who had been affected. Flight J2-8243 was diverted from southern Russia where Ukrainian drones had been reported to have attacked several targets. The flight crashed-landed near Aktau, Kazakhstan, on December 25, after it diverted from the Chechen capital Grozny. At least 38 people have been killed. On Thursday, video footage showed Putin and Aliyev smiling and shaking hands before a bilateral meet-up in Tajikistan where Putin discussed the plane crash. Putin issued a statement last year stating that he would be releasing a rare public apology Aliyev was criticized by the Kremlin for what it called a 'tragic incident' over Russia, in which a plane crashed after Russian air defenses were deployed to stop Ukrainian drones. He went even further on Thursday. Putin said to Aliyev, "Ofcourse, all that is needed in such tragic situations will be done on the Russian side with regards to compensation and legal assessments of all official matters will be given." It is our duty to provide an objective assessment and identify the real causes. Putin informed Aliyev of the fact that two Russian missiles were launched several metres from the aircraft after Ukrainian drones crossed into Russian airspace. The Embraer jet flew from Baku, the capital of Azerbaijan, to Grozny in the southern Russian republic of Chechnya where the accident occurred. It then traveled, with severe damage, a further 450 miles (280 miles) across the Caspian Sea. Aliyev has been vocal about his anger at the crash. Initial reactions He said that the Russian government was trying to conceal the truth about the incident. Reporting by Guy Faulconbridge; Writing by Andrew Osborn Editing by Andrew Osborn
Shipping companies pull out of Hong Kong to avoid US-China risks
Some shipping companies move their operations discreetly out of Hong Kong, and remove vessels from its registry. Some shipping companies are making contingency planning to do this.
Six shipping executives have said that these low-profile actions are motivated by a fear that their vessels could be seized by Chinese authorities, or face U.S. sanction in the event of a clash between Beijing and Washington. The people said that the growing U.S. scrutiny over the importance of China’s commercial fleet to a potential military conflict, such as one over Taiwan, and Beijing's emphasis of Hong Kong's role in serving Chinese interests is causing concern in the shipping industry. Last month, the U.S. Trade Representative proposed imposing steep U.S. fees on Chinese shipping firms and other companies that operate Chinese-built ships to counter China's "targeted dominant" in shipbuilding and maritime logistic. Washington warned American companies in September about the growing risks associated with operating in Hong Kong. The U.S. has already imposed sanctions on officials who are involved in a crackdown.
Hong Kong has been the hub of shipowners for over a century, as well as brokers, financiers underwriters, and lawyers who support them. Official data shows that its maritime and port industries accounted for 4,2% of the GDP in 2022.
VesselsValue - a subsidiary company of Veson Nautical, a maritime data group - reports that the city's flag was flown on eight out of ten ships in the world.
Interviews with two dozen people familiar with Hong Kong including shipping executives and lawyers revealed a growing concern about the possibility that commercial maritime operations in Hong Kong could be caught up by forces outside their control if a U.S. - China military conflict occurs.
Many pointed out China's increased focus on national security goals, trade frictions, and Hong Kong's leader's broad powers to take control of shipping if necessary, as he is accountable to Beijing.
One executive who, like many others, was allowed to remain anonymous to discuss this sensitive subject said: "We do not want to be in the position where China is knocking on our door, requesting our ships, while the U.S. targets us from the other side."
Previously, the concerns of shipowners as well as their efforts to limit exposure to Hong Kong were not reported. In recent years the perception of risk has increased, in line with the tightening security environment in the Chinese-ruled area and the tensions between two of the largest economies in the world.
Turning Tide
To comply with safety and environment rules, commercial ships must be registered or flagged with a specific country or jurisdiction.
VesselsValue, an independent research firm, found that despite the influx of Chinese ships on Hong Kong's register, the number oceangoing vessels registered in the city dropped by more than 8% in January, from 2,580 in January 2004. Government data show a similar drop.
In 2023 and 2024 74 ships, mostly dry-bulk carriers, were re-flagged for Singapore and Marshall Islands. These vessels transport commodities like coal, iron ore, and grain. VesselsValue reports that 15 tankers and 7 container ships left Hong Kong's registry to fly these flags.
Hong Kong's ship registry has seen a dramatic decline in the last two years. Official data shows that it grew by 400% over the past 20 years.
Hong Kong's Government responded to questions by saying that it is normal for shipping companies, given the changing geopolitical, trade and economic circumstances, to review their operations. It is also normal for the numbers of ships registered to fluctuate over the short-term.
A spokesperson stated that Hong Kong will "continue to excel" as an international shipping center, highlighting a variety of incentives, such as profits tax breaks and environmental subsidies, for shipowners.
The spokesperson stated that neither the laws governing registry nor the emergency provisions empower Hong Kong's leader in commandeering ships to serve as part of a Chinese merchant navy.
When asked to comment on the concerns of industry players about how emergency powers from colonial times might be used during a conflict between the U.S. and China, the spokesperson declined. The provisions give the leader of the city "any regulation whatsoever", which includes taking control over vessels and property.
China's commerce and defence ministries did not respond to questions regarding the role of the merchant fleet in Beijing’s warfighting plan, the possible involvement of Hong Kong flagged vessels, or the concerns of commercial shipowners.
The U.S. Treasury declined to comment on potential sanctions, concerns of shipping executives, or the role played by Hong Kong-registered ships in a Chinese commercial fleet.
Lawyers and executives agree that ships can be reflagged in a variety of ways, including through the sale, chartering or redeployment on different routes.
Basil Karatzas of Karatzas Marine Advisors & Co in the U.S. said that Singapore was becoming the preferred domicile for businesses with less exposure to Chinese shipping or cargo trade. It offered many efficiencies including its legal system but also a lower risk than Hong Kong.
Singapore's Maritime and Port Authority stated that decisions regarding domiciles and flags were based on business considerations. The Maritime and Port Authority of Singapore said it had not noticed any "significant changes" in the number Hong Kong shipping companies moving operations or reflagging vessels to Singapore.
MERCHANT FLEEET
Executives and lawyers agree that Hong Kong's registry for shipping is highly regarded by the industry because of its high safety and regulatory standards. This allows its ships to easily pass through foreign ports. Many of China's international state-owned vessels now fly Hong Kong's banner.
According to PLA military studies and four security analysts, in a conflict these tankers and bulk carriers would be the backbone of the merchant fleet that supplies China's oil and food needs.
The U.S., on the other hand, has a very small shipbuilding industry. It also has far fewer vessels under its flag. Three analysts say that while China's growing state-owned fleet would be a target of the U.S. during a military conflict, Beijing would need other vessels in order to supply its needs, given its reliance on international shipping lanes and vast needs.
Donald Trump has been keeping a close eye on strategic maritime operations. Trump said in his January inauguration address that he would "take back" control of the Panama Canal from China. Trump did not provide specifics but his remarks focused on two Panama port operated by a Hong Kong conglomerate CK Hutchison Holdings subsidiary. The group did not respond to any questions regarding Trump's remarks, but agreed to sell the majority of the subsidiary's shares to a consortium led by BlackRock this week, giving U.S. interest control over the port. Trump said to Congress that his administration would create a shipbuilding office in the White House, and provide new tax incentives.
In a study conducted by the U.S. Congress in November 2023, it was stated that "cargo vessels typically transport 90% of military equipment required in overseas conflicts". The report noted that Chinese shipyards ordered 1,794 ocean-going large ships in 2022 compared to five in the U.S.
Merchant vessels played a crucial role in Britain's 1982 long-range operation to retake Argentina's Falkland Islands. Declassified CIA files show that UK-flagged ships operated out of Hong Kong, many of which were owned or controlled by Chinese firms, supplied communist Hanoi in the Vietnam War.
In 2013, President Xi Jinping outlined the need for a Chinese merchant fleet that would help to build China's maritime strength in a Politburo session.
In the past decade, Chinese military and government documents and studies have emphasized the dual-use value of China’s merchant ships.
According to state media, regulations enacted in 2014 required Chinese builders to build five types of commercial ships, including tankers and container ships, to be able to serve military requirements.
Since then, COSCO has seen a significant increase in its line.
Documents from COSCO show that China places political commissars, officers who make sure Communist Party goals are served, on nominally civil ships.
The U.S. banned COSCO subsidiaries in January for what they said were links with the Chinese military.
COSCO has not responded to any questions regarding its deployment of commissars, U.S. restrictions, or what role COSCO's ships -- including those with Hong Kong flags -- might play in wartime.
'REALLY DE-RISKED'
Hong Kong is still an important shipowners' base, despite geopolitical issues. Some shipowners are quietly hedging.
Taylor Maritime (London-listed) a company that was founded in Hong Kong, in 2014, has a much smaller presence in Hong Kong now after several strategic moves in the last few years.
It has been flagging its ships in Singapore and the Marshall Islands since 2021. The company has offices in London, Guernsey and Singapore.
A person with knowledge of the matter said that the firm "really reduced the risk of Hong Kong". This was due to investors' fears of a Chinese invasion in Taiwan and the Communist Party taking control of Hong Kong.
Taylor Maritime's spokesperson stated that the company initially moved its Asia-based teams from Hong Kong to Singapore to be closer to their clients.
Taylor Maritime, after acquiring Grindrod, a shipping company with an Asia office in Singapore and expanding its operations there, relocated certain functions from Hong Kong to Singapore, where it became the primary Asia hub.
Two people with knowledge of the situation said that Pacific Basin Shipping, a Hong Kong listed company, has always flagged its 110 bulk carrier fleet in Hong Kong. However, it is now preparing contingency plans for them to be registered elsewhere while it assesses possible risks.
Pacific Basin's spokesperson stated that the company constantly evaluated geopolitical risk but its fleet still flew the Hong Kong flag "which, at least for the moment, outweighs the challenges".
The spokesperson stated that "Being located in Hong Kong places us near China's 40% share of the global dry bulk export/import activity as well as close to Asia's strong industrial and economic growth regions."
Angad Banga said that shipping firms adjust contingency plans based upon risk assessments, but he has not heard of concerns regarding the commandeering vessels.
Banga said that although some organizations may be re-evaluating their operational strategies, they do not see a widespread exodus from Hong Kong or a loss of confidence. The city, he added, remained attractive to maritime commerce.
Some industry figures have described a general unease in Hong Kong, which has affected their planning.
Three lawyers have said that, until recently, contracts for the increasing number of ships constructed in China that are financed by Chinese banks stipulated that the ship must fly the Hong Kong Flag.
Lawyers said that in the past two years some companies have added a disclaimer to their contracts, stating that they are willing to consider other flags as an alternative. Could not independently verify these changes. Beijing officials have stressed that Hong Kong is important in achieving national security goals. They also referred to China's modernisation of its military and refusal to abandon the use of force against Taiwan.
Three executives and lawyers said that the sweeping security laws, which were first implemented in Hong Kong in July 2021 and then strengthened in March 2020, have increased dangers.
Lawyers said that any attempt by Hong Kong’s leader to commandeer ships in an emergency could prove difficult, since locally registered vessels often travel routes far away from Hong Kong. They said that such powers, which have been in place for a long time, now needed to be seen through the lens of national security.
One lawyer stated that some shipowners would not object to a request from the government to hand over their vessels. This could be due to patriotism, or because they might profit by a crisis.
Another veteran lawyer said that it is "better to avoid being in a situation where you could be asked".
It was not an issue a few short years ago. The national security map has been redrawn. (Reporting and editing by David Crawshaw; Additional reporting by Andrea Shalal, Idrees, and Idrees in Washington and Beijing, Shanghai, and Hong Kong;
(source: Reuters)