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Valor reports that Azul, a Brazilian airline, will file for Chapter 11 bankruptcy protection.
The newspaper Valor Economico, citing reliable sources, reported that the Brazilian airline Azul will file for Chapter 11 bankruptcy in the United States on Tuesday. This move will make the airline the latest Latin American carrier to declare bankruptcy following the depressed state of the industry in the first months of the COVID-19 epidemic. Azul would be following in the footsteps Aeromexico and Colombia's Avianca, as well as its two biggest rivals Gol and LATAM Airlines. All of these companies have filed for bankruptcy in recent times. Azul struck deals with bondholders and lessors last year to raise more financing. However, its balance sheet was still severely strained. Azul's net loan debt increased by 50% in the first quarter of this year, reaching 31.35 billion reals ($5.56 billion). Its leverage ratio also increased to 5.2 from 3.7.
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SpaceX Starship launches on ninth test after two previous flights blew up
Starship, Elon Musk's futuristic SpaceX rocket, which is aimed at multi-planet travel, was launched from Texas Tuesday for its ninth test flight without crew. The mission was to achieve a successful launch after two previous attempts had ended in an explosive failure. The SpaceX Super Heavy rocket booster atop the Starship vessel, which is a two-stage spacecraft consisting of a Starship vessel, was launched at approximately 7:36 pm EDT (2330 GMT) from Starbase, the launch site of the company on the Gulf Coast of Texas, near Brownsville. SpaceX's live webcast showed the rocketship rising into the evening sky from the launch tower as its cluster of powerful Raptor engine roared to life, accompanied by a ball or flames and clouds of exhaust gas and water vapor. SpaceX has launched its Starship system using a Super Heavy booster that had previously been flown. The goal was to demonstrate the reusability of the booster. The first-stage booster, measuring 232 feet (71 meters), will not return to the launch pad. Instead, it will splash down in the Gulf of Mexico. SpaceX received a license from federal regulators for Starship’s latest flight attempt only four days ago. This capped an investigation into a mishap that grounded Starship for almost two months. The vehicle's ascent caused it to break apart, causing debris to rain down over the Caribbean region and disrupting commercial flights. The Federal Aviation Administration has expanded debris hazards zones around the launch path of Tuesday's launch. This is the ninth full-scale test flight in the Starship campaign. SpaceX has suffered a series of failures in the early stages of test flights, which it had previously achieved with ease. This is a major setback for Musk, the billionaire who founded SpaceX in 2002 and had hoped to accelerate the program this year. Musk, the wealthiest person in the world and a major supporter of U.S. president Donald Trump, is eager to see his SpaceX venture succeed after pledging recently to focus his attention back on his business, especially following his turbulent forays into national politics and attempts to cut government bureaucracy. Musk expects Starship to help him achieve his goal to produce a large multipurpose spacecraft that can carry people and cargo on the moon in this decade, and eventually fly to Mars. Musk sees Starship eventually replacing SpaceX Falcon 9 as the main workhorse of its commercial launch business. The company already launches most of the world’s satellites into low-Earth orbit. Musk was to give an update on his ambitions for space exploration in a Starbase speech following the test flight. The speech would be streamed live under the slogan "The Road to Making Life Multiplanetary." He was expected by many to announce new timelines and plans for the voyages of Starship to Mars. Mars is a future destination that's tantalizing, but far away. It poses a number of technical challenges for SpaceX and NASA. The speech may also provide clues as to the future of NASA's strategy for human spaceflight. Musk is known for making overly optimistic projections regarding SpaceX's timelines. However, he now has a much greater influence over the Trump administration’s space agenda. Musk has a vision of launching humans to Mars on the 400-foot (122-meter) tall Starship rocket. This system will also expand SpaceX's global leadership in the satellite launch industry, which it gained with the reusable Falcon 9 rocket. Starship, which NASA selected in 2021 to be the vehicle that will return humans to the surface of the moon this decade for more than 50 years - is expected to play a bigger role in U.S. Space Program. Trump has promoted Musk's Mars vision and attended a Starship launch test in November. Musk and SpaceX continue to have a significant influence on U.S. Space Policy despite recent signals of reducing political spending and his shift away from the government. Trump's pick to lead NASA is Jared Isaacman. A billionaire astronaut and SpaceX client for whom Musk advocated in April, Isaacman testified before an U.S. Senate Committee but hasn't advanced through the confirmation process. Meanwhile, significant changes are looming at the U.S. Space Agency. The White House budget plan released earlier this year proposed $6 billion of cuts to NASA. This would have strengthened the agency's focus on Mars and threatened programs that Musk, Isaacman and others had criticized. Musk, who was born in South Africa, was one of the cabinet members Trump had present at a May 22 event that drew tension between him and the South African president Cyril Ramaphosa. The U.S. President pointed Musk out as he stood among the Trump officials. Trump stated that "he actually came here to discuss a different topic: sending rockets on Mars." "He prefers this subject." Steve Gorman, Los Angeles, wrote and reported on the story, with additional reporting from Joe Skipper in Starbase, Texas; Joe Brock, Matthew Lewis, and Cynthia Osterday edited it.
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US Judge temporarily blocks Trump Administration from cutting funding over New York congestion programme
New York officials reported that a U.S. Judge issued an order on Tuesday temporarily prohibiting the U.S. Transportation Department to withhold federal funding for New York, as the Trump Administration seeks the end of Manhattan's congestion-pricing program. U.S. District Court Judge Lewis Liman conducted the hearing one day before the possible start date for the federal government withholding approvals of New York projects. This was according to a warning from U.S. Transport Secretary Sean Duffy. New York Governor Kathy Hochul stated that the decision was "a massive victory for New York commuters and vindicating our State's right to make decisions about what is best for our streets." New Yorkers should be able to make their own decisions about traffic, and keep our streets free of gridlock. Janno Lieber, the chief executive of the Metropolitan Transportation Authority, said that after the hearing the judge's orders will be extended until June 9. Liman "wants to see no more coercive threat" from the Trump administration, said Lieber. He also wants a quick resolution of the lawsuit. USDOT's spokesperson declined to comment immediately. New York's first-in the-nation program was launched in January. It charged most passenger cars a $9 toll during peak hours to enter Manhattan south from 60th Street in an attempt to reduce congestion and raise money for mass transit. New York City, the state of New York and the MTA filed a request to stop the Trump administration's action to ban Manhattan's congestion pricing. Duffy told Hochul in April that USDOT could withhold funding or environmental approvals if the state didn't end congestion pricing on Wednesday. The state declined. New York cited a February social media post by President Donald Trump that praised his efforts to end congestion pricing. The phrase was: "LONG LIFE THE KING!" The White House shared a mock image of Trump wearing a crown on social media. New York questioned the legitimacy of Trump's comparison to a monarch. The MTA stated that the decision was taken "for blatantly partisan reasons" to keep a Trump election promise. New York City claims that the program has reduced congestion by a significant amount. Between January and March there were about 5,8 million cars fewer than expected. This is a drop of between 8% and 13%. The city also reported that data shows a 12% decrease in traffic, and travel times into Manhattan are also significantly improved. Hotel stays, retail sales, and pedestrian traffic all have increased. Hochul said that the funds raised through this program will be used to finance $15 billion of debt for capital improvements in mass transit. In November, the USDOT, under former Democratic president Joe Biden approved the congestion program. It is monitored by electronic license plate readers. The US approval is required because the program involves tolls for federal highways.
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Algeria announces new tender for corn up to 120,000 t, traders claim
On Tuesday, European traders reported that the Algerian state agency ONAB had issued a tender for a new international purchase of up to 120,000 tons of animal feed grain sourced from optional sources. They said that the deadline for submitting price offers to the tender is May 28. According to the report, it is believed that this new announcement indicates that Algeria did not make any significant purchases in its previous tender for 80,000 tonnes of corn which ended on May 21. Algeria issued corn tenders every week in May, but the participation was low. The traders claimed that delays in the unloading of ships in Algerian port had caused financial hardships for previous sellers. Traders said that the terms of the latest tender were changed to include Argentina or Brazil as optional origins, and only as a source in recent tenders. This was done after recent negotiations failed to result in significant purchases. Traders said that this change was also made in the last week's bid. One trader stated that there is a debate on the market as to whether these tenders are considered real demand or price checking. According to traders, the latest tender is for three consignments ranging from 30,000-40,000 tons of grain. The shipment dates are between June 15-30. (Reporting from Gus Trompiz, Paris; additional reporting by Michael Hogan, Hamburg; Editing by Tasimzahid)
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Eni and GIP in negotiations for the sale of 49.99% carbon capture unit
Eni announced on Tuesday that it has begun exclusive negotiations to sell a 49.99% share of its Carbon Capture, Utilisation and Storage (CCUS), business to BlackRock Infrastructure Fund GIP. Eni has a broader strategy that includes developing dedicated units, or satellites, and selling minority stakes to fund growth. Francesco Gattei, Eni's Chief Transition and Finance Officer, said recently that this allows Eni to grow its low-carbon businesses and still maintain its ability to invest in oil & gas activities. Eni CCUS Holding comprises the Hynet and Bacton project in Britain, L10 in the Netherlands and future rights to purchase Italy's Carbon Capture Project in Ravenna. Eni stated that the GIP agreement will allow it to not only purchase a stake in the CCUS project but also to support investment to further develop them. The Italian group claimed that the agreement was reached after a selection of several bidders. Sources said in March that GIP and HitecVision had submitted non-binding offers for the business. Also, Macquarie and Italy's Snam, as well as Thailand's PTT Exploration and Production Public Company, were also mentioned. The CCUS technology captures CO2 at the point of emissions and stores it underground. International Energy Agency (IEA) says that the technology could play a crucial role in meeting global climate goals. Critics say that it could prolong the use of fossils fuels, and they question its commercial viability. (Reporting and editing by Gavin Jones, Jan Harvey and Francesca Landini)
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Ukraine aims to import gas via Transbalkan Pipeline at lower transit fees
The Ukrainian energy ministry announced on Tuesday that the Ukraine's energy regulator had approved a mechanism for importing gas from Greece through the Transbalkan Pipeline. This will allow the gas to be delivered without paying high transit fees. Since a series devastating Russian missile attacks this year that significantly reduced the domestic gas production, Ukraine has been facing a severe gas shortage. Ukraine imports gas through Slovakia and Hungary but not via the southern route due to its higher transit fees, since gas from LNG Terminals in Greece passes also through Bulgaria, Romania, and Moldova. The Transbalkan route is a viable option to meet Ukraine's immediate transportation needs. However, it passes through five different countries and its direct tariff application makes it less attractive to commercial interests than other options. The ministry stated that gas transit operators from five countries "developed an optimized solution which will allow, in particular, the use of currently unused capacities of the Transbalkan pipe to import gas into Ukraine at a very competitive tariff." The ministry did not give any further details but stated that they hoped for positive decisions on the route from all countries participating. Analysts and former officials estimate that the imports will be around 6.3 billion cubic meters (bcm). Ukraine's Naftogaz, the state-owned firm, has begun buying U.S. LNG. It purchased 300 million cubic meters (mcms) from Poland's Orlen. Orlen's supplies are delivered through Poland. The Polish and Lithuanian routes are the cheapest. However, Ukraine will also need to use another pipeline as the Polish interconnector only allows imports of up to 7 mcm a day, while the demand is at least 25 mcm. Ukraine will import approximately 20 mcm gas from Slovakia and Poland on Tuesday. As our EU partners, Ukraine is actively searching for alternative routes to supply gas after abandoning Russian energy. German Galushchenko, Ukraine's Energy Minister, said that the Transbalkan route was important in this context. (Reporting and editing by David Goodman, David Evans and Yuliia Polityuk)
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Singapore Airlines turbulence investigations not complete yet, Ministry says
Singapore authorities announced on Tuesday that the weather radar system of a Singapore Airlines plane that was hit by turbulence last year, causing dozens of injuries and one death, is still being analyzed. The incident occurred after the flight SQ321 between London and Singapore experienced what the airline called sudden, extreme turbulence over Myanmar. Seatbelts were put in the spotlight after this first civil aviation death in 25 years. The airline industry also called for better turbulence prediction as experts warned that severe weather patterns caused by climate change may lead to more incidents. A preliminary update on the investigation released on Tuesday revealed that 79 other people were injured, along with the 211 passengers, 18 crew members, and the deceased, on the flight which diverted to Bangkok. The brief update from Singapore's Transport Safety Investigation Bureau (part of the Transport Ministry) was released one week after the anniversary of the incident on May 21, 2024. A final report will be released by the ministry once the investigation has been completed. The interim update stated that "Components from the aircraft's radar weather system have been sent to the U.S. for testing and examination." The global aviation guidelines require an initial report to be submitted within 30 days after an accident, and a final report ideally within one year. Investigators can issue interim reports on each anniversary if they fail to do so. According to a preliminary report from last year, rapid changes in gravity forces over 4.6 second resulting in 178 foot (54 m), caused passengers and crew members to become airborne, and then fall. This is what led the injuries. After the incident, passengers on the flight said that the crew and those who were not strapped in left their seats or the floor and slammed the ceiling of the cabin, which cracked in some places. Bangkok Hospital treated the passengers and reported spinal cord, skull and brain injuries. (Reporting and editing by Lisa Barrington, Joe Bavier).
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Saudi Aramco announces indicative prices for benchmark dollar bonds
Fixed income news service IFR announced on Tuesday that Saudi oil giant Aramco had launched the sale a three-part dollar-denominated debt, with tranches maturing in five, ten, and thirty years. IFR reported that the oil giant set an indicative price of 115 basis points for the 5-year tranche, and the 10-year and 30 year tranches have initial price guidance at 130 bps and 182 bps, respectively, over U.S. Treasuries. The price is expected to be set later on Tuesday, and the deal will be a benchmark size. This is usually at least $500m. Citi, Goldman Sachs International and JPMorgan lead the transaction. Abu Dhabi Commercial Bank and Bank of China are acting as passive bookrunners. (Reporting and editing by Kirby Donovan; Mohammad Edrees)
Polish Power Grid Gets $348 Million EU Grant for Network Upgrades, Minister says
Paulina Hennig Kloska, the Climate Minister, announced on Monday that PSE, a Polish operator of power grids has received an EU grant for network upgrades worth 1.3 billion Zlotys (348 million dollars).
PSE said that its plan to develop the transmission network for 2025-2034 assumed an investment of more than 64 billion zlotys in 2034.
Hennig-Kloska informed reporters that the grant announced Monday would come from the EU’s post-pandemic recovery facility. This provides Poland with almost 60 billion euro ($68 billion) of grants and low-interest loans, to be spent between 2026.
Grzegorz Onichimowski, PSE's CEO, said that the company was expecting to sign a contract with the Polish Development Bank BGK for refundable financing as part of the EU plan. He added that PSE had to be flexible because costs were rapidly rising.
(source: Reuters)