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German airshow opens in shadow of Iran War, fighter project collapse
The ILA airshow in Germany opened on Wednesday, under the shadow of the?Iran war and the failure of a flagship Franco German fighter?jet program this week. Berlin's event, which dates from 1909, showcases a large part of Europe's defense industry as companies present new technologies to governments and military purchasers. The article also highlights European manufacturers' efforts to close the gap between them and their U.S. competitors, as well as persuading governments to support them at a time when the region is ramping up its defence spending. The build-up was dominated, however, by the cancellation of the Franco-German Future Combat Air System. This project had been hailed as Europe's "most ambitious" defence project for years but was ultimately ruined by rivalry between industries. The failure of the FCAS has highlighted Europe's difficulty in building military capability at scale. The decision comes at a time when Western officials are warning of an increasing threat from Russia, and the U.S. is pressing Europe to rearm more quickly. RESHAPING ALLIANCES Three people familiar with the situation said that Airbus, who represented Germany and Spain at FCAS, is increasingly looking towards Sweden's Saab to be a preferred partner as companies jockey to reshape their industrial alliances. The?Iran War has increased the feeling of unease by exposing tensions in transatlantic relations and raising questions about NATO’s future. It also affects airlines, as more flights are being cancelled and fuel prices have risen. The show will be addressed by Chancellor Friedrich Merz on Wednesday. He has publicly questioned if a manned fighter jet of the sixth generation still makes sense for Germany’s air force. Ottmar Pfaender, MTU Aero Engines' Head of Programs, said that decisions about how to proceed must be made in the next few weeks. He added that the engine manufacturer was open to working together with other companies. Stephanie Lingemann is a senior executive with the defence startup Helsing. She said that technologies like software-driven defense systems and autonomy in war could be incorporated into what follows FCAS. She said, "There is always a chance with these kinds of endings." Walking to the Venue A380 jets from the Gulf carrier will be on display at the air show, giving Emirates President Tim Clark the opportunity to lobby the German government in favor of landing rights in Berlin. Protesters?blocked the roads leading to the venue, chanting slogans such as "Free Palestine". Witnesses reported that dozens of police officers were on the scene, and that buses couldn't reach the site, forcing hundreds?of people to walk into the venue. Some complained about the disruption. From June 10 to 14?the ILA will be hosting more than 750 exhibitor from 37 different countries. In conjunction with the opening of the new facility, Germany's Cabinet approved a 15-year strategy for aviation aimed at cutting expenses and increasing research in order to combat rising costs and increase foreign competition. (Additional reporting by Maria Rugamer. Matthias Williams is the author. (Editing by Thomas Seythal, Mark Potter and Mark Potter).
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There are some flights to the Middle East that have resumed but there is still disruption.
Middle East airlines are slowly resuming some flights as they rebuild their schedules following the war's disruption. However, the conflict is still disrupting wider traffic flows. Middle-East airlines have increased capacity following the severe disruption caused by the Iran War, but many carriers outside of the Gulf are still diverting Europe to Asia flights. The latest flight information is listed below alphabetically: AEGEAN AIRLINES Greece's biggest carrier has cancelled flights from Thessaloniki, Greece to Tel Aviv. Flights to Dubai have been cancelled until August 31 and flights to Erbil?and?Baghdad?until July 2. AIRBALTIC AirBaltic, a Latvian airline, has cancelled all flights to Tel Aviv and Dubai until the 28th of June. AIR CANADA Canadian Airlines has cancelled all flights to Tel Aviv, Dubai and Abu Dhabi until October 24. AIR EUROPA Spanish Airlines has canceled flights to Tel Aviv from June 28 until now. AIR FRANCE-KLM Air France suspends Tel Aviv flights through June 21 and Beirut and Dubai flights through June 24. KLM has suspended flights from Dubai to Riyadh until August 2, and until July 26 to Dammam and Riyadh. CATHAY PACIFIC Hong Kong Airlines has suspended its flights to Dubai and Riyadh till?August 31, 2008. The U.S. carrier suspended service for the Atlanta-Tel Aviv routes through December 18, 2018. The airline plans to resume New York JFK-Tel Aviv flights starting September 6. Meanwhile, the launch of its Boston-Tel Aviv flight, scheduled for late October, was delayed. FINNAIR It has cancelled all Doha flights up to October 2 and continues to avoid the airspace over Iraq, Iran Syria, and Israel. The airline will resume its Dubai flights in October, which are only operated during the winter. British Airways, owned by IAG, delayed the return of its flights from Doha to Riyadh to August 8 and until August 1. Flights from Amman, Tel Aviv and Dubai will be paused for the rest of the summer and resumed on October 25. The airline plans to reduce flights to Dubai, Doha, Riyadh, Tel Aviv and Amman to just one flight per day when they resume. Jeddah will be dropped as a destination. JAPAN AIRLINES Japan Airlines has suspended its scheduled Tokyo-Doha and Doha-Tokyo flight until July 31, and until August 1. Polish Airlines has cancelled all flights to Riyadh and Beirut until 30 June. LOT will begin operating its winter route from Dubai in October. LUFTHANSA GROUP Lufthansa has announced that it will resume Tel Aviv flights as soon as July 1, whereas ITA Airways confirmed they would begin on July 1. SWISS delayed the return of flights to August, while Brussels Airlines suspended its operations until October 24. The suspension of Dubai flights by Lufthansa SWISS and ITA Airways continues until September 13th. Lufthansa and SWISS have suspended flights until October 24 to Abu Dhabi, Amman Beirut, Dammam Riyadh Erbil Muscat and Tehran. Eurowings, a low-cost carrier, has suspended its flights to Tel Aviv and Beirut until July 9, Erbil and Dubai until June 22, and Abu Dhabi and Amman until October 24. ITA Airways also extended its suspension of flights to Riyadh through June 30. MALAYSIA AIRLINES From July 2, the Malaysian carrier will resume limited services to Doha. NORWEGIAN AIR The low-cost carrier has delayed the launch of its Tel Aviv, Beirut and other services indefinitely. No new dates have been set. QANTAS Australia's flag-carrier has added flights to Rome, Paris and London to meet the increased demand for European routes. The number of flights to Paris will rise from three to five weekly return flights, and the Perth to Singapore service will go from daily to 10 per week. A new schedule will be implemented gradually for flights starting in mid-April. It will run through late July. ROYAL MAROC Moroccan airline announced that flights to Doha have been cancelled until 30 June. SINGAPORE Airlines In response to a 'higher demand,' the carrier has extended the Singapore-Dubai flight suspension until August 2. It also added services for Singapore-London Gatwick (late March) and Singapore-Melbourne (October 24). TURKISH AIRLINES SunExpress, Turkish Airlines’ joint venture with Lufthansa has cancelled flights from Dubai to Bahrain, Beirut, and Erbil up until July 14. WIZZ AIR Low-cost airlines have suspended flights from Europe to Dubai, Abu Dhabi, and Amman until mid-September. (Compiled by Josephine Mason and Jamie Freed. Elviira Lioma, Tiago Branao, Agnieszka Olesska, Bernadette HOG, Alexander Klyve Gudbrandsen, Romolo TOSIANI, Boleslaw LaSocki). Matt Scuffham and Alexander Smith edited by Milla Nissi -Prussak. Jonathan Ananda, Joe Bavier, and Joe Bavier.
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Taliban: Pakistani air strikes in Afghanistan kill at least 13, Taliban claims
The Afghan Taliban government reported that Pakistani air strikes on Wednesday killed at least thirteen people, including 11 children. This is a resurgence of the conflict which has claimed hundreds of lives in this year. Taliban spokesperson Zabihullah Mojahid stated that at least?14 other people - including children and women – were injured by strikes that violated Afghanistan’s airspace, and bombed homes of civilians in the provinces Kunar, Khost, and Paktika. The Pakistani government said that the "calibrated attacks" along the Pakistan-Afghanistan frontier killed 26 militants. They were in response to recent attacks on the country's northwestern region. Attaullah tarar, Pakistan's Information Minister, said that based on reliable intelligence, the targeted camps and hideouts were carried out with "precision and accuracy". Four targets, including a training center, a hideout, and an ammunition stash, were destroyed. Islamabad accuses Kabul of harbouring militants who it claims plot attacks against Pakistan. According to Armed Conflict Location & Event Data, militant attacks in Pakistan 'have risen by fourfold since the year 2022. This was the year 'after the Taliban retook power in Afghanistan. The Taliban denied these allegations, and claimed that militancy is a problem within Pakistan. 'WE'LL TAKE REVENGE!' A renewed violence between former allies could disrupt a long-lasting truce between Islamabad, Afghanistan and their most intense battle for years that took place in February. In March, the two countries started a dialogue to reduce tensions. China was tasked with mediating a solution to the conflict. Fighting has ceased since then but there have been sporadic clashes along the 2,600 km (1,600 mile) border. Haji Ali Khan is a tribal elder in Khost. He said that one of the airstrikes killed 10 people in a village, including women and kids, after midnight. The family whose home was bombed is a local villager. "They have no connection to the TTP nor do they know them," said he, referring the Pakistani Taliban. "People want the authorities to provide security in this area, or, if that is not possible, they should allow people to defend themselves.... Either we all sacrifice ourselves or we take revenge on our own." Reporting by Mohammad Yunus Yawar, Mushtaq Ali in Peshawar and Hritam Mukherjee, Saad Sayeed, and Himani Sarkar; editing by Himani Sarkar and Lincoln Feast.
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Airbus leans toward Saab while Franco-German fighters unravel
Airbus has been looking at Saab, a Swedish company as its preferred future partner. This is because the failure of the Franco-German fighter program has reshaped European defense alliances. Airbus, the company that represents Germany and Spain on the 'fighter market', has other options besides collaborating with the manufacturer of Gripen combat aircraft. High-level contacts have been made on a separate project that involves Britain, Italy and Japan. Airbus and Saab are in exploratory discussions with each other since at least six months, boosted by the improved defence relations between Germany, Sweden and Germany, according to sources. Saab stated that any collaboration would be a decision made by a politician. A spokesperson stated that Saab has an "open-door" policy and is open to collaboration with various players in the defence industry. Airbus had no immediate comment. Sources said that until now, the talks were largely conceptual in order to avoid a premature breakdown of the FCAS Fighter project. The upcoming divorce between Airbus and Dassault Aviation, which is expected to become official at the Berlin Airshow, could give Airbus more freedom to pursue a Nordic Partnership. Michael Schoellhorn, CEO of Airbus Defence and?Space in Berlin, confirmed that Saab is a potential partner but added that it was still too early to exclude other options. There are many potential partners. Saab. Saab. Leonardo has opened the door for Airbus, and its paymaster Germany, to join the separate GCAP project, between Britain, Italy, and Japan. Lorenzo Mariani, CEO of Lorenzo Mariani said that Berlin was a "particularly valuable partner". Analysts claim that the collapse of FCAS, after nine years, is a blow for European defence co-operation. The decisions made about what happens next will have a lasting impact on European air power. Douglas Barrie is a senior fellow at IISS for military aerospace. He said, "It shows how difficult it is to align the military, industrial and political priorities." POTENTIAL HURDS Sweden remained independent in the last round of fighter aircraft development. It built the Gripen, while France developed the Rafale, and Britain, Germany Spain and Italy jointly developed the Eurofighter. It has not yet revealed its plans for the next generation. Initially, it partnered with Britain, and is now conducting research into a Gripen replacement, with decisions expected in 2030. According to people familiar with the situation, Sweden is willing and has the technology necessary to work with Airbus. Since months, the two sides have been gaining ground. When visiting Germany in September last year, Swedish Defense Minister Pal Jonson stated that industrial cooperation was "blossoming". Saab and Airbus began discussing collaboration on unmanned technologies in?December. Sources said that although the talks were primarily focused on the support of existing crewed aircraft such as Eurofighter and Gripen, they could be a springboard to deeper cooperation. Berlin's path or not, there are still obstacles to overcome. It is unclear to what extent German and Swedish needs are similar to those of France. GCAP, according to insiders, is limited by the 2035 deadline that Japan and Germany agreed upon. This makes it difficult for Germany to be offered anything more than a minor role. There are also questions about whether a country can do it alone. Dassault - the only European company to have built a fighter using domestic engines - says it's ready to do it again, even though "French finances are stretched." Sources denied that this was the beginning of a new project. However, Airbus will be lobbying for German companies at the air show. Schoellhorn downplayed the possibility of going solo. He said that Germany has repeatedly made it clear, including on the 'political side', that they continue to be European. Analysts say that despite fiscal pressures and a limited domestic demand to keep costs low, European nations producing fighters other than France are likely to continue to pursue alliances. This could extend to the Middle East. "It does not make the product cheaper but it makes it more affordable." Barrie stated that some of these things are really hard to do by yourself, except for Americans or Chinese. (Additional reporting from Johan Ahlander. Ludwig Burger. Angelo Amante. Sarah Young. Joanna Plucinska. Michel Rose. Mark Potter is the editor.
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Two crew members missing following suspected US strike on tanker near Oman
Officials from the maritime industry said that two crew members are missing and another is injured after a suspected U.S. missile strike on a fuel tanker near Oman's coast. Ambrey believes that the 'blockade of Iranian ports by U.S. Ambrey, a British maritime security organization, said that the blockade of Iranian ports was likely to be responsible. In the past, crews were warned to gather at the bow of the vessel before an attack. Another maritime security source said that the ship was also likely to have been?hit by a U.S. rocket. The United Kingdom's Maritime Trade Operations agency reported that a Palau-flagged chemical/oil product tanker reported a?engine room fire? 20 nautical miles northeast from Oman's Port of Sohar. According to British maritime risk-management group?Vanguard, the Omani Navy responded immediately to the distress call of the Settebello. According to MarineTraffic, the?tanker? was partially loaded? and last located near Oman's coastline on June 1st. The operator listed in the databases as being based in India could not be reached to comment. The United States launched a blockade of Iran related shipping on the 13th of April after Iran severely restricted shipping through Strait of Hormuz - a major global oil & gas route. U.S. Central Command reported that as of 8 June, U.S. Forces had disabled seven noncompliant?vessels and redirected 134 other vessels which were compliant, while allowing 42 vessels to pass supporting humanitarian aid. The U.S. military reported that U.S. forces disabled an unladen Marivex tanker on Monday in the Gulf of Oman after it tried to sail to an Iranian port, in violation of a 'ongoing blockade of Iran. The ships being targeted are Iranian vessels and so-called'shadow fleet tankers', which are 'older vessels with no Western insurance, used to transport sanctioned crude oil, and sailing under various flags in order to conceal their true ownership, the cargo they carry, and whereabouts. Reporting by Jonathan Saul, Ahmed Elimam and Alex Richardson; editing by Jason Neely and Alex Richardson
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Trump: Iran's negotiations with Trump have been delayed too long, and they will pay the price
Donald Trump, the U.S. president, said on Wednesday that Tehran had taken too long to reach a deal. It would now have to "pay the price", after Iran and the United States exchanged attacks in the region amid reports of efforts to continue negotiations. Trump said in a post on social media that Iran is "all talk and no action." They've taken too long to negotiate an agreement that would have been good for them. Now they will pay the price !!!" Trump's remarks?come after an official who knows the situation revealed that Qatari negotiators travelled to Tehran on Wednesday morning in an attempt to finalize an accord, following consultations with the United States. White House representatives could not be reached immediately for comment about?Trump’s post or'reported' negotiators' travel and consultations. (Reporting and editing by Katharine Jacks Russell and Susan Heavey)
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Protesters disrupt the start of German Air Industry Showcase
On Wednesday, protesters blocking roads to 'Berlin’s ILA airshow and shouting slogans like "Free Palestine" forced many delegates to walk. Witnesses reported that dozens of police officers were on the scene. A couple of them were seen carrying away a protester. Buses couldn't reach the venue and hundreds of people had to walk to the event. This year, the ILA airshow, which dates back to 1909, will host 750 exhibitors from 37 countries. The build-up to the show saw the cancellation of a Franco-German flagship fighter jet project, which 'became bogged-down in industrial rivalries. This underlined 'the struggles Europe has in building its military capability. (Written by Matthias Williams and edited by Thomas Seythal).
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Maguire: Germany's industrial growth could be re-ignited by the power of Germany.
Germany's electrical output will grow by more than 10 percent in 2026. This could be a lifeline for the industrial sector, which has been near stagnation over the past few years. According to the energy think tank Ember, total utility-supplied electric output has increased by more than 10 years. It now stands at 209 terawatts hours (TWh). This surge in power production?has coincided?with tentative signs of stabilisation?in parts of the manufacturing sector of the country,?including?some energy-intensive sectors such as chemicals. The total output and activity levels of Germany's vital industrial base are still well below their previous peaks. And the total electricity produced by utilities is around 19% lower than its all-time high set in 2017. Germany's clean energy supplies are nearing multi-year highs, and the annual growth of total electricity is expected to be the highest in many years. POWERING A TUNNAROUND This shift is important because the availability of energy and its affordability has been a major constraint for German industry ever since the energy crisis in 2022, which was triggered by Russia’s invasion of Ukraine. In response, several major European energy importers have cut their purchases of Russian gas and oil. This has led to a sharp tightening on local energy markets. Fuel and power prices surged, causing German businesses to lose money, forcing them to cut back on production and trigger a contraction in energy-intensive industries that are the basis of Germany's manufacturing model. The reverse dynamic is now beginning to emerge. Wind and solar power are increasing, and they inject large amounts of electricity at low cost into the grid. This helps to stabilize supply and cap wholesale prices. The average wholesale spot power price in Germany has been around 96.4 Euros per Megawatt Hour so far in 2026. This is a relatively flat rate compared to a year ago and the lowest in the last two years. Even a modest reduction in electricity costs can have a disproportionate impact on industrial users' profitability and production decisions. Early signs indicate that there may be some ease in the air. The producers of energy-intensive chemicals and goods are among those who have been hit the hardest in recent years. They show tentative signs of stabilisation along with the increase in power supply. A STRUCTURAL?SHIFT in Supply This time, the key difference is the source of expansion. Germany does not depend on fossil fuels, nor imports for supply. Instead, it relies on renewable energy produced domestically. The system is dominated by wind, but solar energy has been gaining ground, and it's setting records. This is important for two reasons. The first is that renewable energy has near-zero marginal cost, so increases in production tend to lower overall electricity prices. Second, electricity generated domestically reduces the exposure to volatile fuel markets globally, improving supply security, predictability, and reliability for industrial users. These dynamics together create an operating environment that is more favorable for manufacturers today than it was before the energy crises. LIMITATIONS ON THE REBOUND This does not guarantee a complete industrial revival. German manufacturing continues to struggle with a weak global demand, increased competition from abroad and structural changes, especially in sectors like autos and chemicals. The recovery will likely be slow. The power system itself is not without its own constraints. Grid bottlenecks and intermittent renewable energy, as well as the need for increased storage capacity, could all be limiting factors in how quickly a rise in generation can translate into a consistent drop in prices. While electricity production is on the rise, total demand still hasn't recovered, reflecting the cautious attitude of industrial users. The Energy-Industrial Feedback Loop The direction is still becoming more clear. The industrial sector in Germany does not require a return of ultra-cheap electricity to stabilize -- it requires predictability, scale, and gradual cost relief. Expansion of electricity supply has begun to achieve this. The availability of more power can?support higher industrial production, which, in turn, increases electricity demand and encourages further investment in generator capacity. This feedback loop can help to rebuild the competitiveness and scale of Germany's industrial base. A NEW POWER CHAPTER Germany's economy has long been linked to its factories. After the energy shock, however, this link may have been broken and the road to recovery could be in the opposite direction. The current surge in supply of electricity will not only light up homes and charge cars, but it will also reset the economics for manufacturing in one of the leading manufacturing hubs in the world. The next chapter in Germany's industrial history may not start on the factory floor but on the grid. The opinions expressed are those of the columnist, author. This column is a great read! Check out Open Interest, your new essential source for global financial commentary. Follow ROI on LinkedIn, X and X. Listen to the Morning Bid podcast daily on Apple, Spotify or the app. Subscribe to the Morning Bid podcast and hear journalists discussing the latest news in finance and markets seven days a weeks.
Think tank: Ukraine will experience summer power shortages following Russian attacks
The DiXi Group, a think tank, predicts that Ukraine's energy system, which has been under constant Russian assault, will face power shortages in the summer months, and consumers may be affected by outages, despite the strong output of solar power plants and the imports.
Russia has been attacking Ukraine's energy generation and transmission system throughout the war. This has caused severe damage to thermal power plants, forcing Kyiv to import more and to resort to massive power cuts for consumers.
DiXi stated in a press release that, under moderate temperatures and with no further damage done to the energy grid, the power shortage could reach 0.7 gigawatts during peak consumption. However, it could rise to 2.4 gigawatts if temperatures are significantly higher.
The situation will be further complicated by the annual maintenance of nuclear power units, which are crucial to the energy system.
It stated that "as the average daily temperature rises, hourly power cut will be 'unavoidable. A shortage could even occur at night when demand is?lowest", it said.
If the system is damaged by high temperatures and further damages, the shortfall could reach 6.2?GW compared to 15.8 GW of demand, or about 40%.
Blackouts in Kyiv, the capital, lasted up to 14-16 hours during the winter of 2025-2026 when Russian missiles damaged more than half of Ukraine's capacity for power generation. (Reporting and editing by Jan Harvey; Pavel Polityuk)
(source: Reuters)