Latest News
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Air India is in negotiations for a major new narrow-body aircraft order, according to sources
Air India, a Tata Group company, is in negotiations with Airbus or Boeing to place a large order for new aircraft, including 200 additional single-aisle jets. This deal will be a massive one in 2023, as the former national carrier pursues an ambitious multi-billion dollar revamp. Two sources told us that the order discussions could include hundreds of aircraft in various sizes. They said this was an expansion of previously reported discussions about a new batch of large wide body aircraft. Air India, Boeing, and Airbus have all declined to comment. As global airline chiefs gathered for a summit on the fastest-growing aviation industry in the world, Narendra Modi, Indian Prime Minister, was scheduled to address them on Monday. Air India ordered 470 aircraft from both suppliers by 2023, a record order. It also purchased another 100 Airbus planes in the same year. The simultaneous orders for two planes come at a moment when aircraft manufacturers are scrambling to resolve supply chain problems, which have led to delays in aircraft deliveries and an upcoming jet shortage. Air India needs new planes to regain market share that has been lost due to rivals. The airline, owned by the government for years, is embarking on an ambitious modernisation program to reclaim this market share. It was not immediately known how many narrowbody jets were included in the new order, but two sources said that it would be hundreds. Another source stated that it would include 200 narrow-body aircrafts which are the backbone of the aviation fleets around the world. Reporting by Tim Hepher; Editing by Elaine Hardcastle, Sophie Walker and Aditi Singh.
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IATA anticipates that sustainable aviation fuel production will double by 2025
The International Air Transport Association announced on Sunday that it expects sustainable aviation fuel production to double by 2025, reaching 2 million tonnes. This represents 0.7% of airline fuel consumption. IATA, a powerful industry group, has warned that airlines may struggle to achieve their sustainability goals and described the production rate of SAF (which is more expensive than conventional Jet Fuel) as disappointingly slow. Willie Walsh, Director general of IATA, said that although the increase in production was encouraging it would add $4.4 billion to the global aviation fuel bill. Walsh stated in a press release that "the pace of progress must accelerate" in terms of ramping up production, and improving efficiencies in order to reduce costs. In 2021, the aviation industry as a whole agreed to aim for net-zero emission in 2050. This was based on a gradual shift to SAF (which is made of waste oil and biomass). The airlines are in conflict with the energy companies about SAF shortages, and also point fingers at Airbus and Boeing for delays delivering fuel-efficient aircraft. (Reporting and editing by Elaine Hardcastle, Sophie Walker, and Lisa Barrington from Seoul)
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IndiGo to expand network with Virgin Atlantic, Air France-KLM and Delta deals
The airlines announced on Sunday that IndiGo, India's largest carrier, had reached an agreement with Air France KLM, Virgin Atlantic, and Delta in order to expand long-haul flights to North America, Europe, and Britain. IndiGo is expanding internationally and has a large domestic network within India, which is the third largest air passenger market in the world. IndiGo, once the partnership is completed, will be able sell flights operated by partners outside of India under its name, as well as select flights from Amsterdam or Manchester to Europe and North America. IndiGo is hosting the International Air Transport Association (IATA) Annual Meeting in New Delhi starting Sunday. It already has relationships with Air France-KLM, Virgin Atlantic and Delta, while its Delta partnership is a new one. Since the pandemic, Delta Airlines has not flown into India. Ed Bastian, CEO of Delta Airlines, told the media in New Delhi at an airline summit that Delta would resume direct flights from the United States into India within the next two years. A joint statement stated that Delta plans nonstop flights from Atlanta to Delhi, subjected to approval by the government. IndiGo aims to expand its fleet from 400 aircraft today to 600 by 2030. It has been leasing planes to cover the delays in aircraft deliveries and to expand internationally. Norse Atlantic Airways has announced that it will lease six Boeing wide-body 787 jets to the airline by early next year. The Indian aviation regulator announced this week that it will only extend the existing leasing agreement IndiGo has with Turkish Airlines until August. India has publicly criticised the arrangement after Turkey supported Pakistan in the recent conflict between two South Asian neighbours. Reporting by Abhijith, Writing by Lisa Barrington, Editing by Kirby Donovan
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IndiGo to expand network with Virgin Atlantic, Air France-KLM and Delta deals
The airlines announced on Sunday that IndiGo, India's largest airline, had reached an agreement with Air France KLM, Virgin Atlantic, and Delta in order to expand long-haul flights to North America, Europe, and Britain. Indigo is expanding internationally and has a large domestic network. IndiGo, once the partnership has been completed, will be able sell flights operated by partners outside of India under its name. It will also be able offer select flights from Amsterdam and Manchester to Europe and North America. IndiGo's partnership with Delta is new. It already has relationships with Air France-KLM, Virgin Atlantic and Air France. Since the pandemic, Delta Airlines has not flown into India. Ed Bastian, CEO of Delta Airlines, told the media in New Delhi at a summit on airline services that Delta would resume direct flights from the United States into India within the next two years. A joint statement stated that Delta plans nonstop flights from Atlanta to Delhi, subjected to government approval. India has the third largest air passenger market in the world and is expanding its aviation sector rapidly.
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Emirates boss criticises "hand-wringing", over supply chain problems, by planemaker
On Sunday, the head of Dubai's Emirates Airlines, the largest international airline in the world, expressed frustration over persistent aerospace supply problems. He challenged planemakers to accept responsibility for late suppliers. Boeing and Airbus, the two largest plane manufacturers, are behind in delivering new planes by months and even years. This frustrates airlines who want to launch new services and upgrade to fuel-efficient aircraft or introduce new services. Emirates President Tim Clark stated at a press briefing held on the sidelines an airline industry summit, "I'm tired of hearing the finger-pointing about the supply chains: you (manufacturers), are the supply chains." Emirates has ordered 205 Boeing 777X jets that have not been certified by the U.S. Federal Aviation Administration. The 777X is set to begin deliveries in 2026. This is six years late. Clark said that he saw "a glimmer" of hope in the certification of new aircraft, and that Boeing had expressed cautious optimism about its recovery during top-level meetings. Airbus warned airlines last week that it would take another three years to clear up the backlog in supply-chain issues. Clark said that Emirates hasn't yet noticed a change in demand as a consequence of President Donald Trump’s recent tariffs. (Reporting and writing by Tim Hepher, Editing by Kirsten Doovan and Clarence Fernandez).
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Seven killed after bridge collapse, train derailment in Russia's Bryansk region bordering Ukraine
Russian authorities announced early Sunday that at least seven people had died and 30 others were hospitalized after "illegal intervention" caused a collapsed bridge and train derailment in the Bryansk region of Russia, which borders Ukraine. Russian Railways announced on Telegram that the train's locomotive, along with several cars, had derailed due to "the collapse of a span-structure of the road bridge in response to an illegal interference with the operation of transportation." Alexander Bogomaz said that two children, including one in a critical condition, were hospitalized. The state-run Russian news agencies cited medics to report that the driver of the locomotive was among those who died. The Russian ministry for emergency situations announced on Telegram that the main focus of its efforts was to find and rescue victims. Around 180 people were involved in this operation. Baza Telegram, a Russian channel that often publishes news from law enforcement and security sources, claimed, without any evidence, preliminary information had indicated the bridge was destroyed. The Baza report could not be independently verified. Ukraine has not yet commented. Since the beginning of the war, which Russia started more than three year ago, there has been continued cross border shelling, drone attacks, and covert operations from Ukraine in the Bryansk region, Kursk region, and Belgorod region that borders Ukraine. Russian Railways reported that the train was heading from Klimovo towards Moscow. Bogomaz reported that the train collided with a collapsed bridge near a federal highway, in the Vygonichskyi District of the Bryansk Region. The district is located about 100 km (62miles) from the Ukrainian border. U.S. president Donald Trump has urged Moscow to work with Kyiv on an agreement to end the conflict, and Russia proposed a second face-to-face round of talks with Ukrainian officials in Istanbul next week. Ukraine has not yet committed to attend the Monday talks, stating that it must first see Russian proposals. A leading U.S. Senator warned Moscow it will be "hit heavily" by new U.S. Sanctions. (Reporting and editing by Daniel Wallis in Melbourne)
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Hamas insists that Witkoff’s Gaza ceasefire plan must lead to an end to the war
Hamas announced on Saturday that it had responded in kind to a ceasefire offer made by Steve Witkoff, the Middle East envoy for U.S. president Donald Trump. The proposal included a call for an end to war which was previously a redline for Israel. In a press release, the Palestinian group stated that it would release 10 living hostages in exchange for Israel releasing a number Palestinian prisoners. This is in line with Witkoff’s proposal. Hamas' statement continued: "This proposal is aimed at achieving a permanent ceasefire and a complete withdrawal from Gaza Strip. It also aims to ensure that aid reaches our people and families in Gaza Strip." The response was given "after a series of national consultations". Hamas did not make any mention of its desire to amend the proposal in the statement, but an official Palestinian familiar with the discussions said that Hamas requested some changes while responding positively. The office of the Israeli Prime Minister did not respond immediately to a comment request. Israeli media reported that Benjamin Netanyahu had told the families held hostage in Gaza by Israel that Israel accepted the Witkoff deal. The office of the prime minister declined to comment. Previous attempts to restore the ceasefire, which broke down in March, have been stymied by Hamas's deep differences with Israel. Israel demanded that Hamas completely disarm, dismantle itself as a military force and governement and release all 58 of the hostages who are still in Gaza. Hamas rejects the demand that Israel give up its arms and insists on pulling its troops out from Gaza to end the war. Israel's campaign in Gaza was launched in response to Hamas' attack on its southern border in October 2023 that resulted in the death of 1,200 people, and 251 Israelis being taken as hostages in Gaza. Gaza's health officials claim that the subsequent Israeli military operation has resulted in more than 54,000 Palestinian deaths and left Gaza in ruin. (Reporting and editing by Nidal al-Mughrabi, Menna Alaa el-Din)
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Harvard's US funded defense projects have totaled $180 Million in recent years.
According to an analysis by a defense software firm, when the Trump administration cut federal funds to Harvard University it ended abruptly an estimated $180 millions that the federal government poured into U.S. Military projects at Harvard over the past few years. In April, the Trump administration announced that it would freeze $2.2 billion worth of grants and $60 millions in contracts for Harvard University. Donald Trump stated that he wanted to make changes at Harvard and other universities in the U.S. because, according to him, they had been taken over by "woke" leftist thinking and have become bastions for antisemitism. Among many other topics, the study found that some of the grants were paid to research into lasers and counter-weapons of mass destruction, as well as medical research. This abrupt stop ended projects that had been running for years and halted programs at several universities. Not just Harvard. According to an analysis done by Govini defense software, in 2025, approximately 103 grants worth $14 million will come to a grinding halt. U.S. officials, for example, ended a $6 million Pentagon-funded research project by Professor Katia Bertoldi at the Harvard School of Engineering and Applied Sciences, which developed shape-changing structures that could be used in military applications, two weeks ago. This was despite it being a critical point in its research cycle. Bertoldi explained, "We are now in the third year, we have all our tools set up, we're gaining momentum and it has stopped." She was funded through the Multidisciplinary University Research Initiative of the Department of Defense to develop technology based on origami, which would eventually lead to reconfigurable radio antennas and deployable shelters similar in function to field hospitals. According to an analysis by Govini, since 2020, the Pentagon, Defense Advanced Research Projects Agency, and all branches of the U.S. Military have awarded Harvard 418 grants worth $180 million. A Pentagon spokesperson said that Secretary of Defense Pete Hegseth had "directed the termination" of a number of programs, contracts, and grants which were not in line with the Department priorities. This was to reduce wasteful spending, to implement President Obama's orders, to reallocate the savings to mission critical priorities. Govini's findings revealed that the Army provided the majority of funding for military medical research as well as basic and applied scientific research. Trump complained on Truth Social about the federal grant freeze. He said that Harvard had hired "Democrats" and "radical left idiots". Trump announced on Monday that he was considering redirecting billions in grants for scientific and engineering research from Harvard to trade school. Harvard sued for the restoration of funding. It called the cuts unconstitutional attacks on its right to free speech. Research cancellations have a negative impact on extensive networks of collaboration. Bertoldi's research project involved researchers from Georgia Tech and the University of Pennsylvania. Scientists warn that these cuts could have strategic implications, as China has invested heavily in research. Bertoldi stated, "In China as far as I'm aware, this type of research is supported by colleagues who moved back to China." (Reporting from Mike Stone in Washington, Editing by Matthew Lewis.)
Exclusive: Canada's Trans Mountain Pipeline lowers its forecasts of the amount of oil that it will ship
Documents filed by Trans Mountain Oil Pipeline's operator reveal that the company has revised its forecasts of how much oil will flow through the system in the next three-year period, due to the fact that the pipeline is being used less than anticipated.
Trans Mountain's lower forecasts filed with Canada Energy Regulator by Trans Mountain last month were not previously reported. Analysts said that the lower forecasts show oil companies' unwillingness to pay the higher tolls Trans Mountain, owned by the government, has charged customers to transport oil via the newly expanded pipeline.
The pipeline is not using 20% of its capacity, reserved for spot shipments, because the shipping costs are much higher than those on the Enbridge Mainline, North America's largest crude pipeline, which transports oil from Western Canada to Eastern Canada and U.S. Midwest markets.
These lower estimates raise doubts about the Trans Mountain Pipeline's ability generate revenue and attract private sector buyers. Ottawa has stated that it will eventually sell the pipeline.
The lower expected usage is also a sign of the difficulty in diversifying Canadian oil imports from the U.S. which purchases 90% of Canadian crude. Trans Mountain is Canada’s only east-west operating pipeline, and its only outlet for Asia and markets outside the U.S. Analysts and Trans Mountain themselves have stated that business could quickly improve if U.S. president Donald Trump slaps a tariff on Canadian oil.
In May 2024, the expanded pipeline of 890,000 barrels per day (bpd), which runs from Alberta up to Canada's Pacific Coast coast, will begin service. Trans Mountain predicted that the pipeline would be used 96% of the time in 2025, which is its first year of operation, and this was as recent as November.
The latest documents don't show the pickup the pipeline operator anticipated. Trans Mountain shipped only 18,500 barrels per day (bpd) of spot cargoes in its first eight-month period, as opposed to the forecast 30,600. Total utilization for 2024 was 77%, far below the forecasted 83%.
According to the new forecasts, pipelines will be 84% full by this year, 88% in 2026, and 92% in 2027. It is now expected that the pipeline will not reach 96% utilization before 2028.
Trans Mountain's spokesperson told an email sent to Tuesday that spot shipments are dependent on factors such as Canadian crude production, differentials in crude oil prices at global hub markets, and rates for marine freight.
Analysts pointed to massive budget overruns in construction and the fact that Trans Mountain raised its tolls for customers last spring. The total construction cost was C$34 billion. This is nearly five times the 2017 estimate.
Trans Mountain will bear approximately 70% of the cost overruns, but the remaining third - more than $9 billion - is considered to be "uncapped costs", which increases tolls according to a formula that was agreed upon by shippers and approved more than 10 years ago by the Canada Energy Regulator.
Trans Mountain estimated that contracted shippers would pay more than twice as much in 2017. Spot shippers are charged even higher toll rates.
Canadian Natural Resources Ltd. and Cenovus Energy, two of the largest contracted shippers, have resisted. This year, a regulatory hearing will be held to determine if the toll increases are fair.
'PROBLEM with Pipelines'
Trans Mountain's main competitor, Enbridge Mainline, which transports crude oil to the U.S. Midwest, and eastern Canada offers 100% spot-capacity. The tolls on this line are about half of Trans Mountain's.
In an email sent on Tuesday, Enbridge's spokesperson stated that the demand for space along the Mainline from shippers has been greater than the supply "for the majority of months" since Trans Mountain opened.
Rory Johnston is an energy analyst who founded the Commodity Context Newsletter. He said that Trans Mountain's revised estimates show that shipping via the pipeline has become "too costly" for certain oil producers.
Johnston stated that "this is the fundamental issue with pipelines and why it is so hard to get private actors into this space any more."
Richard Masson is a former CEO of Alberta Petroleum Marketing Commission and executive fellow at University of Calgary School of Public Policy.
Uncertainty remained about whether oil would be included as part of President Donald Trump’s announcements on tariffs, expected to take place Wednesday.
Masson stated that Trans Mountain volumes could change at a moment's notice if conditions in the U.S. change.
Trans Mountain has also reduced its revenue forecasts for the next three year as a result. Trans Mountain's revenue forecasts for 2025 have been reduced from an earlier estimate of $3.0 Billion to $2.7 Billion, $2.9 Billion from an estimate of $3.1Billion for 2026 and $3.0Billion for 2027. (Reporting and editing by Caroline Stauffer, David Gregorio, and Amanda Stephenson)
(source: Reuters)