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AFR reports that Westpac will cut 1,500 jobs and simplify its operations.
The Australian Financial Review reported that Westpac Banking Corp plans to reduce its workforce by more than 1,500 employees to achieve its cost-reduction goals and streamline operations. According to an AFR article, Westpac's job reductions are part of the 2023 UNITE program, which is designed to streamline technology by reducing core platforms and modernizing infrastructure while lowering operational and maintenance long-term costs. Westpac had 35,240 employees worldwide as of September 30th 2024, according its annual report for 2024. In an email response, the company said that it adjusts its workforce regularly based on changing investment priorities but did not confirm how many jobs were being cut. Westpac stated that while it continues to invest in additional bankers and roles with customer contact, some programs and initiatives might require fewer resources. The Finance Sector Union expressed concern on Wednesday about these reports. It added that it had reached out to Westpac to ask for an explanation, while calling for the immediate suspension of any plans for job cuts and for talks to take place. The union stated that "Our members worked hard over the years to make massive profits for Westpac, and they deserve to receive a reward and not be brutally fired for the sakes of cost-savings or even greater profits."
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US court approves Brazilian airline Gol’s restructuring plan
The Brazilian airline Gol announced on Tuesday that a U.S. Court had approved its Chapter 11 restructuring plan, clearing the way for them to emerge from bankruptcy protection on 6 June. The Brazilian carrier filed for bankruptcy in the United States early in 2024, as it was struggling with high debt, a drop in traffic caused by the COVID-19 epidemic, and delays in Boeing aircraft delivery. Gol's Sao Paulo traded shares closed Tuesday's session up over 12%. They outperformed the Bovespa index which rose 0.3%. The airline said that it will convene a meeting of shareholders at the end the month in order to approve the planned capital increase. Abra Group will continue to be the largest indirect shareholder in Gol. It also controls Colombian carrier Avianca. Gol expects a substantial reduction in its debt burden through the conversion or extinguishment of up to $1.6 Billion of its pre Chapter 11 funded debt, and up to $850 Million of other obligations. This will improve its financial situation. The company stated on Tuesday that they expect to see sustainable growth after the Chapter 11 proceedings. It plans to upgrade its fleet by delivering five more Boeing 737 MAX aircraft this year. Gol's restructuring plans was approved as Azul, another Brazilian airline, faces financial challenges. According to a source familiar with the discussions, this could affect the timeline of the merger or hinder their ability to sign a non-binding agreement. The memo outlined the creation a combined company, while both companies maintained their operational independence. Azul stated in a press release that the company has been engaged in discussions with investors about ways to ensure its long-term viability. Luciana Magnalhaes, Gabriel Araujo, and Jamie Freed edited the article.
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US airport security agency is not ruling out privatization
The acting director of Transportation Security Administration stated on Tuesday that the agency had not ruled out the possibility of considering a plan for privatization, while defending the proposed reduction in screening officers. Why it's important Some Republican Senators want to privatize an agency created by Congress following the September 11th attacks. KEY QUOTE Ha McNeill, acting TSA administrator, said that "nothing is off-the-table" at a hearing of the U.S. House Appropriations Subcommittee. We're willing to discuss new privatization schemes if they make sense. Airports may choose to privatize, while others do not. She said that since the new rules went into effect two weeks ago, nearly 7% (or 7,000) of U.S. travellers are not complying to the enhanced ID requirements for entry at airport security checkpoints. CONTEXT The White House announced earlier this month that it wanted to reduce funding for TSA by $247,000,000, stating "TSA has consistently been found wanting in audits, while implementing intrusive and humiliating screening measures which violate Americans' dignity and privacy." McNeill stated that the budget cuts represented a 3-4 percent reduction in TSA staffing -- half of which was for exit lanes, and the remainder 2% of Transportation Security Officers spread out across 435 airports. In recent years, as air travel increased, the Biden administration expanded the TSA. It now has almost 60,000 employees. In 2024, the TSA screened 904 millions passengers. This was a new record and an increase of 5% over 2023. Homeland Security Secretary KristiNoem stated earlier this month that air travelers without "REAL ID cards" could face enhanced screening procedures, but they would not be denied entry to flights according to the rules which took effect on May 7.
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US to announce Newark flight reductions to reduce congestion
Sean Duffy, Transportation Secretary, said that the U.S. Department of Transportation would announce Tuesday it will be implementing temporary flight cuts at Newark following meetings with major U.S. Airlines to address the impact of congestion. Duffy, a CNBC reporter, said that the Federal Aviation Administration will announce a revised schedule for Newark in order to reduce congestion. The airport has had to deal with a series of chaotic equipment failures, runway construction issues and staffing problems. "We have a structure that determines how many flights we can depart per hour." Duffy explained that we have a schedule for delayed takeoffs. "You will see a reduction." Last week, the FAA held three one-on-one sessions with airlines to "find a balance between their airport operations and meeting the individual needs of each airline." The airlines said they expected that additional flight reductions would be needed on top of the voluntary flight reductions. Duffy responded: "They are the largest player at Newark. And... most (of the airlines) will agree to the cuts." You might need to push a bit harder at the FAA in order to get the numbers you require. United declined to comment. The FAA announced Friday that it would propose a maximum arrival at Newark rate of 28 aircraft an hour until runway construction is completed by June 15, except on Saturdays, until the end the year. Until October 25, the maximum rate of arrival outside the construction period is 34 aircraft per hour. United, Delta Air Lines and JetBlue Airways were present, as well as American Airlines, Alaska Airlines Spirit Airlines, Allegiant Air, Alaska Airlines and Alaska Airlines. United has drastically reduced flights at its Newark hub, and is asking the FAA for new restrictions on flights to reduce delays. Last year, the FAA relocated Newark's airspace from Philadelphia to Philadelphia due to staffing issues and congestion in New York City and surrounding areas. The facility also faced numerous technological problems. The FAA is short of its target staffing level. (Reporting and editing by Mark Porter, Aurora Ellis, and David Shepardson)
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Musk: Tesla is on track to start a robotaxi trial by the end of June in Austin, Texas.
Elon Musk, Tesla's CEO, said that the company will begin testing its robotaxi service in Austin, Texas by the end June. This is despite questions about safety from an American regulator. Musk, in an interview with CNBC said that the electric car maker would roll out 10 self-driving vehicles in certain parts of the city. He added that robotaxi deployment will scale up to around a thousand in a few month. "We will not deploy to the entire Austin area, but to only the areas that are safest." Musk said, "We will geofence the area." In afternoon trading, shares were down less than 1%. Musk's decision to shift the focus of the company from developing a cheaper EV platform in the face of waning demand, to launching its robotaxi service and Optimus humanoid robotics will be critical for Tesla. This bet is a major part of the company's value. Musk said to CNBC that the only thing that matters in the long run is autonomy and Optimus. Many companies have closed shop because of the high costs and regulations that are required to commercialize autonomous vehicles. Alphabet Waymo and the other companies in the race have been under increased scrutiny. Since October, the National Highway Traffic Safety Administration (NHTSA) has been investigating accidents involving Tesla's advanced driver assistance (ADAS) software that is fully self-driving in low visibility road conditions. Last week, the U.S. road regulator asked Tesla to answer some questions about its robotaxi service to see how they will perform under bad weather. Musk stated that Tesla is in discussions with major automakers about licensing the FSD software, which is expected to be used to power its robotaxis.
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Brazil's chicken exporters prepare for rejection of cargo amid bird flu outbreak
The Brazilian meat lobby ABPA (which represents large food processors) said that following the confirmation of Brazil's first outbreak of bird flu, countries including China will not accept chicken consignments being transported from Brazil. In an interview with ABPA President Ricardo Santin, he said that the refusal of cargoes can vary depending on the date of shipment prior to outbreak confirmation. This ranges from 14 to 28 day at the discretionary of the official veterinary services of the destination country. This puts BRF SA, JBS SA and other meat processors in a difficult position as they have to deal with increased logistics costs and the uncertainty of the ongoing trade embargoes caused by the public health emergency. Santin, citing new trade data, said that Brazil accounts for 39% the global poultry trade. Santin stated that the possibility of easing restrictions on cargos in transit exists, especially if they come from a far-off region from the outbreak in the state Rio Grande do Sul. Santin stated that negotiations would be required. He added that Mexico and Chile would also reject cargoes if they were to be affected by bird flu outbreaks. Santin stated that it is impossible to calculate the losses resulting from the export restrictions in place after the confirmation of a first bird flu outbreak at a Brazilian commercial poultry farm. Santin explained that the duration and scope of trade restrictions may differ depending on health protocols and negotiations between importing countries. Will Some health protocols call for regional or local export bans while others demand a suspension of all imports. Brazil has stopped issuing health certificates for all cargoes bound for China, the European Union, and South Africa under existing protocols. Other major importers, such as Japan, the United Arab Emirates, and Saudi Arabia, are less strict, and enforce regional restrictions under the existing protocol. Santin stated that it was up to exporting companies to handle returned cargoes. He added they have the option of redirecting certain consignments. (Reporting and editing by Alistair Bell; Ana Mano, Roberto Samora)
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Rubio: US hasn't discussed the deportation to Libya of Palestinians from Gaza
U.S. Secretary Marco Rubio stated on Tuesday that Washington has not discussed deporting Palestinians from Gaza into Libya. However, he did say that Washington asked other countries to the region if there would be an openness to accept Gazans that want to move voluntarily. "We have spoken to some nations to see if there are countries willing to accept someone for a period of time if they say that they want to leave because of illness, schooling for their children, or whatever else.," Rubio said. He added that he wasn't aware that Libya was included. Rubio told the Senate Foreign Relations Committee the United States were pleased with the resumption in food shipments into Gaza. He added that they understood that 100 more trucks would be crossing in behind the first ones and that there could be many more in the days to come.
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State media reports that Vietnam has approved the establishment of Sun PhuQuoc Airways
The official Vietnam News Agency announced on Tuesday that Pham Minh Chinh has approved the creation of Sun PhuQuoc Airways. VNA reported that the airline's parent company, real estate and hospitality developer Sun Group will invest an initial 2.5 trillion dong (96 million dollars) to begin operations and launch its first flight in the fourth quarter 2025. Vietnam's aviation market, which has a population of over 100 million people, has grown rapidly after recovering from the COVID epidemic, causing businesses to compete for market share. Sun PhuQuoc Airways will operate alongside the national flag carrier Vietnam Airlines as well as low-cost carrier VietJet and Bamboo Airways. The airline aims to increase its fleet size to 31 aircrafts by 2030. The new airline is expected to offer both commercial and chartered flights. According to the website of Sun Group, Sun Air is a premium airline that offers private jet services for wealthy clients. According to official statistics, Vietnam's first four months saw an increase of 23% in visitors compared to the same period last year. 7.7 million tourists visited the country. Sun Group is not available for comments outside of normal business hours. Reporting by Phuong nguyen. (Editing by David Goodman, Mark Potter and Mark Potter.)
FERC warns that hot weather and high demand will put pressure on the US grid this summer.
The Federal Energy Regulatory Commission (FERC) said that the projected searing temperatures in the U.S., and the proliferation data centers, will cause electricity consumption this summer to reach a record high, stressing the grid, and driving up prices.
FERC's annual assessment states that the electrical system will be further strained by the retirement of power plants around-the clock to make room for cleaner energy sources.
Why it Matters
Under normal weather conditions and power supply, the U.S. should have enough electricity to meet demand. FERC warned that New England, Midwest, Mid-Atlantic and Southwest states are at higher risk of experiencing power shortages in a variety of situations.
In its report, the regulator stated that "These include periods of high electricity demand, low solar and wind output, and large-area heat events which disrupt generator and transfer availability." If such conditions are present, operational mitigations may be required to avoid reliability issues.
Electricity shortages can cause power outages, which in turn can increase your bills.
DEMAND PUSHING
FERC, citing data from the National Oceanic and Atmospheric Administration, said that the western and southeastern U.S. regions are likely to experience temperatures higher than average this summer by 40% to 60%. The central U.S. and Northeast, however, have a chance of 30% to 50%.
Air conditioning systems that consume a lot of energy are used by homes and businesses in extreme heat. Hydropower can be affected by drought. Wildfires and Hurricanes, which are also a risk in the summer, can cause power to be disrupted.
FERC stated that the summer will see a rise in demand for power due to developments such as AI data centers.
FERC has said that power bills will be higher than last summer due to the rising cost of natural gas, rising electricity use and retirements of fossil-fired plants. (Reporting and editing by Leslie Adler; Laila Kearney)
(source: Reuters)