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Boeing ordered to pay $28 million more to the family of a 737 MAX crash victims
A federal court jury in Chicago on Wednesday ordered Boeing to pay over $28 million to a family of a United Nations environment worker who died in the crash of a 737 MAX in Ethiopia in 2019. The verdict given to the Garg family is the first of dozens of lawsuits that were filed following the crash in India and the one in Indonesia in 2018 which killed 346 people. According to the attorneys representing the family, a deal was reached between the parties on Wednesday morning. Garg's parents will receive 35.85 million dollars - the total verdict plus 26% in interest - while Boeing will not be appealing. Boeing did not respond immediately to a comment request. In a joint statement, Shanin Specter, Elizabeth Crawford and the family's attorneys said that the verdict "provides accountability to the public for Boeing's wrongdoing." Her lawyers claim that Garg was only 32 years old when Ethiopian Airlines Flight 302 crashed shortly after takeoff from Addis Ababa in Ethiopia to Nairobi in Kenya. The lawsuit alleged that the 737 MAX was defectively engineered and that Boeing did not warn the public and passengers about its dangers. Ethiopian Airlines Flight 610 crashed in the Java Sea, Indonesia, five months after Lion Air Flight 610. Both crashes were caused by an automated flight control system. According to the company, more than 90% civil lawsuits relating to the two accidents have been settled. This includes lawsuits, deferred prosecution agreements and other payments. According to their lawyer, Boeing settled three lawsuits filed by families of victims who also died in the Ethiopian Airlines crash. Terms of the settlements have not been released. Reporting by Diana Novak Jones, Editing by Jamie Freed
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US court temporarily blocks USDOT's order to disband Delta and Aeromexico joint-venture
The U.S. Court of Appeals temporarily stopped an order issued by a government agency to Delta Air Lines, Aeromexico and other companies to dissolve a joint venture before January 1, 2019. The airlines sued the Transportation Department to stop the order to cancel the joint venture, which has been in place for nearly nine years and allows the carriers to coordinate flight schedules, pricing, and capacity between the U.S. USDOT issued the order in September as part of a series of U.S. actions against Mexican aviation, citing concerns about competition. Carriers said that they would be unable to recover substantial costs even if the court upheld this arrangement. The three-judge panel's brief order cited an earlier court decision regarding the standard to temporarily block administrative actions. Delta, Aeromexico, and USDOT declined to comment immediately. The Justice and Transportation Departments referred to the joint venture as "legalized collusion," which controls "almost 60 percent of operations at the 4th largest international gateway into and out of the United States," citing Mexico City flight. Delta, which owns a 20% stake Aeromexico has also argued President Donald Trump’s administration holds the joint venture to a higher standard than other ventures such as United Airlines opens a new tab and ANA. According to the government, problems that could arise from this venture include increased fares on some markets, reduced capacities and difficulties for U.S. airlines due to insufficient competition. Separately, last month the Trump Administration revoked the approval of 13 routes for Mexican carriers to enter the U.S. It also canceled all passenger and cargo flights from Mexico City’s Felipe Angeles International Airport bound for the United States. Transportation Secretary Sean Duffy stated that Mexico "illegally cancelled and frozen U.S. carrier flight for three years, without consequence." Claudia Sheinbaum, the Mexican president, said that she was not in agreement with the U.S.'s decision to revoke the approval of 13 routes. (Reporting and editing by David Shepardson)
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US Senate holds hearing on impact of government shutdown on aviation safety
Next Wednesday, a U.S. Senate Subcommittee is holding a hearing on the impact the shutdown has had on aviation safety. This comes after disruptions to thousands of domestic flights affecting millions of passengers. The committee confirmed a report that the hearing will be held on November 19, and include testimony by Nick Daniels, President of the National Air Traffic Controllers Association, as well as Chris Sununu. Chris Sununu is the chief executive officer of Airlines for America. This trade group represents major airlines. Last week, the Federal Aviation Administration took an unprecedented step by requiring that flights be cut by 4% at 40 of the busiest airports due to safety concerns relating to the increasing absence of air traffic controllers. Flight cuts will increase to 8% Thursday and 10% Friday. Some airlines believe the FAA is going to reduce the planned flight cuts on Thursday by 6%, and then phase out the order once the air traffic staffing increases. The shutdown of the federal government is expected to be over by Wednesday evening. Sununu stated that airlines would like Congress to make sure air traffic controllers get paid in the event of a government shutdown, "to ensure this does not happen again." The head of General Aviation Manufacturers Association will also testify. Since October 1, when the shutdown started, tens thousands of flights have been cancelled or delayed. This has affected more than 5.2 millions passengers. Due to the absence of air traffic controllers, 1.2 millions passengers had their flights delayed or cancelled last weekend. Moran, the chair of the subcommittee for aviation, stated that "the shutdown has had a severe impact on our already fragile industry and it will take some time to recover from its effects." He said it was important to "address the damage done and examine the long-term impacts of the shutdown." Ted Cruz, the chair of the Senate Commerce Committee, said that the FAA and Transportation secretary Sean Duffy ordered the flight cancellations "because the FAA relies upon safety data to keep the system secure was blinking in red." The longest shutdown in U.S. History, 43 days, forced 13,000 air traffic control agents and 50,000 Transportation Security Administration (TSA) agents to work for free. There are about 3,500 fewer air traffic controllers than the FAA's target staffing level. Before the shutdown, many had already been working six-day work weeks and mandatory overtime. Congress also approved $12.5 billion for the rehabilitation of the U.S. Air Traffic Control System which has experienced numerous technical failures. (Reporting and editing by Chris Reese, Jamie Freed, and David Shepardson)
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Novo Nordisk CEO shows new appetite for taking on risk in obesity deals
Mike Doustdar, CEO of Novo Nordisk, was not yet ready to give up on his company's portfolio of obesity drugs. Doustdar, under pressure to deliver results since taking over the Danish drugmaker's leadership in August, had made five offers that were getting more expensive for Metsera. This is according to U.S. Securities filings and Court documents. Three sources familiar with the process said that he chose to go ahead and sign a deal worth $10 billion. This is five times more than what Doustdar’s predecessor was willing to pay back in January. If antitrust regulators had rejected the offer, Novo would have been left without control of Metsera's new obesity drug pipeline. Pfizer was compelled to increase its offer to complete the deal. Kerry Holford, Berenberg analyst, said Novo's attempts to secure the deal were always going to be difficult. NEW TOLERANCE FOR RISK Doustdar was willing to take risks in order to be more competitive than Eli Lilly, according to two sources. This included being more aggressive and faster. Lilly has surpassed Novo in the once dominant position it held on the lucrative U.S. market for weight loss. Investors and analysts have welcomed the new tone. Erik Berg-Johnsen is the portfolio manager of Storebrand Asset Management's Novo shareholders. He said that the company showed "a clear sense" of urgency to improve its fortunes. Henrik Hallengreen Laustsen of Jyske Bank, who rates Novo as "buy", said that Doustdar’s decision to acquire Metsera is an "important sign" that it will not be passive. He said, "They attack the markets rather than have to defend themselves." Some questioned if Doustdar had gone too far. The bidding battle coincided with increased governance concerns and a shake-up of the board of directors that would give unprecedented control to Doustdar's largest shareholder. Evan Seigerman of BMO Capital Markets, who rates Novo as a Hold, said that the company still has many other problems to resolve. You have anticipated pricing headwinds. Lilly is grabbing market share and Novo feels like it has strayed so far from its course that it's difficult to correct. Holford, a Berenberg analyst, said that Novo must look to acquire deals to boost its drug pipeline, given the relative inaction of mergers and acquisitions in recent years, and looming expirations for patents on semaglutide, an active ingredient found in Wegovy, Ozempic, and other drugs. Novo has not responded to our request for comment. Metsera declined comment. NOVO'S CEO WAS CONFIDENT IN FTC'S CERTIFICATION Doustdar has defended Novo’s pipeline of experimental drugs for weight loss, but stated that an aggressive acquisition strategy is critical to keep pace with a market some analysts estimate will reach $150 billion in the early part of next decade. The CEO told industry analysts in a recent call that "no pipeline is wide enough" if you want to treat hundreds of millions. According to securities filings, the final Novo bid structure included higher payments upfront in exchange for 50% of the company, but it delayed the time for gaining control over the business. Doustdar believed the proposed deal could withstand scrutiny by the U.S. Federal Trade Commission. It didn't work out as planned. Metsera announced in a press release on November 7, that it had accepted an offer sweetened by Pfizer. The FTC warned Metsera of the antitrust risk associated with the Novo deal. Novo pulled out of this race. "Every transaction comes with a cost," said Marcus Morris Eyton, portfolio manager at Alliance Bernstein for European and Global Growth Equities. "We are happy to see the management exercise financial discipline when they feel that the price has become too high." (Reporting from Sabrina Valle and Maggie Fick, in New York; Additional reporting by Louise Breusch Rasmussen, in Copenhagen; Editing done by Adam Jourdan and Michele Gershberg; Bill Berkrot).
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Saade Family becomes second largest shareholder in Carrefour
Carrefour, Europe's biggest food retailer, announced on Wednesday that the family of Rodolphe Saade (owner of French shipping company CMA CGM) has purchased a stake in Carrefour of around 4%, making it its second largest shareholder. Carrefour announced that the purchase marks a new chapter in the history of major shareholders at Carrefour, since Peninsula, the family-owned business of Abilio Dniz, sold its 8% share. The financial details of the transaction were not revealed. Saade will replace Peninsula (represented by Eduardo Rossi) in the board of Carrefour for the rest of the term, up until the 2028 annual meeting. The switch will be effective from December 1. Saade stated in a statement that "Carrefour’s transformation, which combines innovative, operational discipline, and environmental responsibility is aligned to the values that guide the commitment we have made." He added, "By joining the board of directors I hope to support this long-term growth and contribute to its momentum." Galfa, the holding company of the French family that owns the department store Galeries Lafayette in France, is the largest shareholder in Carrefour with a stake of 9.46%. (Reporting from Mathias de Rozario, Gdansk; Dominique Vidalon, Paris. Mark Potter is the editor.
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Delta sees strong current quarter despite flight disruptions
Delta Air Lines is expecting a solid fourth quarter, despite the flight disruptions due to the shutdown of the federal government, CEO Ed Bastian said on CNBC Wednesday. Bastian stated that, while disruptions to Delta's business would be costly for the airline industry and economy as a whole, they wouldn't "wipe" out its quarterly profits. His comments come after a recent wave of cancellations caused by the absence of air traffic controllers. Delta Airlines said that its operations recovered after the weekend disruptions caused by staffing issues with air traffic controllers and seasonal weather conditions in Atlanta, among other places. The longest shutdown in U.S. History has forced 13,000 air-traffic controllers and 50,000 Transportation Security Administration (TSA) agents to work for free. The number of flight cancellations dropped sharply on Wednesday just hours before the House of Representatives voted on a measure to end an unprecedented government shutdown. (Reporting from Nathan Gomes, Bengaluru. Editing by Shailesh Kumar and Alan Barona.)
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Einride, a self-driving truck company, will go public through a SPAC deal valued at $1.8 billion.
The Swedish autonomous trucking firm Einride announced on Wednesday that it had agreed to become public in the U.S. via a merger between Legato Merger Corp III and a blank-check company. This deal valued the company at approximately $1.8 billion. Listing comes after a surge of electric-vehicle startup companies went public during pandemic boom SPAC with the goal of capitalizing on huge demand for clean energy vehicles and government incentives to purchase battery-powered automobiles. Some of these firms, including Nikola, Lordstown Motors, and Proterra, have since gone bankrupt due to high costs, strong competition and operational challenges that eroded cash reserves. As the demand for faster freight delivery increases, autonomous trucking companies are seeking to automate logistics and shipping in order to meet this increased demand. They also want to commercialize their self-driving technologies while dealing with tariff pressures. "We have implemented a multi-sourcing policy for all our key input goods." "I think we understand the situation pretty well," Einride CEO RoozbehCharli said. Einride wants to increase its growth by attracting up to $100,000,000 in private equity investment. The deal was also boosted by the $100m it raised from investors, including EQT Ventures in October. Charli stated that Einride was founded in 2016 and has an annual revenue of $65 million, of which $45 million are deployed. The company has also negotiated scaling plans worth around $800,000,000 with its customers. After the closing of the deal, existing shareholders such as EQT, Ericsson and others will own approximately 83% equity and the current management team will continue leading the firm. SPACs are shell companies that use an IPO as a way to raise money to merge with a business, and then take it public. This is a faster route to the market than a conventional IPO. (Reporting and editing by Shailesh Kuber in Bengaluru)
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Arequipa bus crash kills 37
Local authorities reported on Wednesday that at least 37 people died and dozens were injured when a bus crashed into a ravine near the mountains of Arequipa in southern Peru. Walther Oporto is the regional health chief for Arequipa. He cited firefighters who were at the accident site. The number of deaths was one of the highest recorded in Latin America in recent years, and it was also the deadliest in Peru. According to the list provided by local authorities, an eight-month old baby and two more children were among those injured. Llamosas bus company did not respond immediately to a comment request. The authorities said that the bus had been traveling from the coastal town Chala towards the region of Arequipa on the highway when it hit a van. It was thrown into a 200 meter (656 foot) deep ravine by the impact. The local government published photos showing the bus lying on its side at the bottom of a gully, surrounded by car parts and other passenger belongings. Arequipa's government reported that 26 people are being treated in Arequipa for injuries. Three of those patients were in a serious condition. (Reporting and Additional Reporting by Aida Pelaez-Fernandez, Editing by Daina Beth Sool and Mark Heinrich; Marco Aquino)
Sources say that GE Vernova and Siemens Energy are in discussions to provide gas turbines to Syria for reconstruction.
Three people with knowledge of the situation said that U.S. company GE Vernova is in talks with Germany's Siemens Energy to supply gas-turbines for a $7 billion project aimed at rebuilding Syria's war damaged power sector.
In May, Syria signed an agreement with a subsidiary company of Qatar's Power International Holding to build four combined cycle gas turbine power stations with a capacity totaling 4,000 megawatts. The agreement includes a solar component of 1,000 MW.
One person said that Siemens Energy and GE Vernova might both win contracts for the project. However, it is too early to predict when agreements may be finalized.
The amount allocated for the turbines in the project was not disclosed. None of the sources could estimate the value of the turbine contracts.
Another source said that the talks could lead to other agreements, such as the supply of critical infrastructure for the power grid, in addition to turbines.
WESTERN COMPANIES SEEK TO BENEFIT from RECONSTRUCTION
After President Donald Trump's lifting of most of the sanctions against Damascus in early 2018, Siemens Energy and GE Vernova would be among the first Western firms to benefit from the reconstruction Syria's energy sector.
Siemens Energy said that "a local delegatio met with Syrian officials to discuss how power supply in the country could be improved on a short-term basis."
A spokesperson for the company stated that "while no specific agreements or contract have been made, our technical expertise is ready to be contributed if this can help stabilise and establish a reliable supply of energy and support the populace."
GE Vernova, and PIH have not responded to requests for comments. Syria's Information Ministry did not respond immediately to a comment request.
REVIVING AN ENERGY INDUSTRY RIPPLED BY THE WAR
After the ouster by rebels of President Bashar al-Assad, Syria's new leader, President Ahmed al-Sharaa met with Trump this week in Washington.
Baker Hughes, Hunt Energy, and Argent LNG are U.S. companies that announced in July their plans to support post-war reconstruction by creating a masterplan for exploring and extracting oil and gas as well as producing power.
Syria produces only a fraction (of the electricity needed) of what it requires today due to the destruction caused by its 14-year civil conflict. However, the power supply has significantly improved in recent months, thanks to gas imported from Azerbaijan, and Qatar.
Dana Gas of the UAE announced on Wednesday that it had reached a preliminary agreement with Syria's oil company for a study to evaluate the redevelopment of natural gas fields damaged during war.
The war is believed to be the reason for the decline in Syria's natural gas production to 3 billion cubic meters in 2023, from 8.7 bcm back in 2011.
(source: Reuters)