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Air China and Shenzhen Airlines purchase 55 Airbus jets at a list price of $12.4 Billion
Air China and Shenzhen Airlines, China's flag carrier, will purchase 55 -Airbus aircraft at a list price of $12,4?billion. The move is part of the Chinese flag holder's efforts to modernise and expand its fleet. Air China has agreed to purchase 15 A350-900 wide body jets. Shenzhen Airlines, on the other hand, will buy 40 narrow-body A320neo family aircraft. This is according to an Air China filing with the Shanghai Stock Exchange. Delivery of the A350-900 jets is scheduled between 2030 and 2032. The A350 900 jets are valued at about $6.09billion based on Airbus list prices for January 2025. The A320neo aircraft family, worth a total of $6.35 billion, based on the January 2024 list prices, is scheduled for delivery between 2029-2032. Air China stated in its filing that Airbus would offer significant discounts on large aircraft orders, which is a common practice. Both airlines will finance the purchase through a combination of their own funds and commercial bank loans, as well as other financing arrangements. Chinese carriers are re-building and expanding their fleets in response to the pandemic. Air China stated that the new aircraft would help 'optimise its fleet structure,?routes network, improve operational efficiencies and reduce costs. The A320neo competes with the medium-haul Boeing 737 MAX while?the A350 900 is largely?used for long-haul international flights. Reporting by Julie Zhu, Time Hepher, Ethan Wang, Ryan Woo, and Ethan Wang in Hong Kong; editing by Susan Fenton
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Greece warns that EU sanctions against Russia could lead to a loss of LNG market share by rivals
Two Greek government officials stated on Friday that Greece objected to a'sanctions package' against Russia and warned the EU about a possible loss of market share by non-EU competitors if a ban was imposed on the transfer of Russian 'gas' to third countries. Two sources claim that European Union envoys were unable to reach an agreement on Wednesday on the 21st package against Russia because a number of countries, including Greece and Austria, objected. Lithuanian Foreign Minister Kestutis Budrys said on Monday that EU countries are undecided about tightening restrictions against Russian liquefied gas. Greece dominates Europe's market for LNG carriers and is one of the largest players in the world, competing with Japan, China and United States. One of the officials said: "From Athens’ perspective, any new restrictive package must be carefully calibrated in order to maximise pressure on Moscow, while minimising unintended consequences for European consumers, businesses, and competitiveness." As a result of its sanctions policy, Europe should not be able to surrender entire economic sectors or market shares to non-EU actors. The official stated that sanctions should be designed to erode Russia's economic capability, not create strategic windfalls at the expense of Europe. Due to the sensitive nature of the issue, both?officials as well as the two sources spoke under the condition of anonymity. The EU has pushed the talks on the 21st package of sanctions to July 23. Until then, the price of Russian oil will remain at $44.10 per barrel.
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Sources: Assailants board a chemical products tanker near Yemen in suspected hijacking.
Sources from maritime security said that armed 'assailants' are believed to be in control of the chemical tanker Asana, which was seized by armed gangs on Friday off the southern coast of Yemen and in the Gulf of Aden. Ship tracking data revealed that the small tanker had not confirmed its flag and had named Bosaso, a port in Somalia, as its next destination. One of the maritime safety sources stated that based on initial assessments the incident seemed to be more related to Somali pirates than Yemen's Iran aligned Houthi militia. The British Navy agency UKMTO reported on Friday that an unauthorised person boarded a vessel while it was transiting east through the Gulf of Aden 65 nautical miles south of Yemen's Al Mukalla Port. Vanguard, a British maritime risk management company, said that details about the number of attackers, the circumstances surrounding the boarding and the condition of the vessel and its crew were still unclear. An official of the Greek maritime security company Diaplous confirmed that a South Korean warship was dispatched to the area. Ambrey, a British maritime security company, said that there was no armed security team on board the vessel when the incident took place. The attackers were believed to be members of a pirate group. Exon Energy of the Marshall Islands was listed as the vessel's operator in?shipping database, but it could not be contacted for comment. Sources told Reuters that Iran had asked Yemen's Houthis if the United States struck Iranian power infrastructure to be ready to shut down?the Red Sea Oil Route. This poses a new and potent threat to global energy supply. Reporting by Jonathan Saul and Renee Maltezou. Editing by William Maclean.
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There are some flights to the Middle East that have resumed but there is still disruption.
Some airlines have maintained their suspensions, while others are increasing the number of flights they offer to certain parts of the Middle East following the conflict caused by the U.S.-Israeli?strikes against Iran. Here is an alphabetical update on the status of flights. AEGEAN AIRLINES The largest airline in Greece has cancelled flights to Dubai and Erbil until September 30. AIRBALTIC The cancellation of flights to Dubai is effective until October 24. AIR CANADA Canadian Airlines has canceled flights to Tel Aviv, Dubai and Abu Dhabi until October 24. AIR FRANCE-KLM Air France suspends its Beirut flights from August 2 to August 2. KLM has suspended its flights to Riyadh and Dubai until the 15th of July, according to a website statement. CATHAY PACIFIC Hong Kong Airlines has delayed the return of passenger and freight services to Middle East. The resumption of passenger flights to Dubai and Riyadh has been pushed back until October 25 and 26. The original August 1 date for the Riyadh Freight service has been pushed back. The U.S. airline has suspended service for the Atlanta-Tel Aviv routes until December 18. The airline plans to resume New York JFK-Tel Aviv flights starting September 6. Meanwhile, the Boston-Tel Aviv flight, originally scheduled for late October, will now be delayed. FINNAIR It has canceled its Doha flights up to October 2 and continues to avoid the airspaces of 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?Riyadh to August 8 and from?Doha to August 1. Flights from Dubai, Tel Aviv and Bahrain to Amman and Amman will be suspended until the end the summer season. They are expected to resume on 25 October. When the airline resumes its services, it plans to reduce flights to Dubai, Doha and Riyadh to just one flight per day, while removing Jeddah from their list of destinations. JAPAN AIRLINES Japan Airlines has suspended its scheduled Tokyo-Doha and Doha-Tokyo flight until September 1; The Polish airline will begin operating its winter route from Dubai in October, and resume its operations to Beirut during the summer of 2027. LUFTHANSA GROUP SWISS delayed the return of flights to Tel Aviv till August and Brussels Airlines suspended its operations until 24 October. The suspension of Dubai flights by SWISS and Lufthansa will continue until September 13th. Lufthansa and?SWISS have suspended flights from Abu Dhabi to Amman, Beirut Dammam, Riyadh Erbil Muscat and Tehran. Eurowings, the low-cost airline, expects to resume flights to Tel Aviv, Beirut, Erbil and other Middle East destinations this autumn. ITA Airways also extended its suspension of flights to Riyadh to July 31 - and to Dubai to October 24 - for operational reasons. NORWEGIAN AIR Low-cost carrier has delayed the launch of its Tel Aviv and Beirut flights indefinitely. No new dates have been set. SINGAPORE Airlines In response to increased demand, the carrier has extended its Singapore-Dubai suspension until October 24. It also added services on Singapore-London Gatwick and Singapore-Melbourne routes between late March and October 24. TURKISH AIRLINES SunExpress, Turkish Airlines joint venture with Lufthansa plans to resume Antalya - Dubai route later on the 15th of July. WIZZ AIR Since mid-September, the low-cost carrier has suspended its flights from Europe to Dubai, Abu Dhabi, and Amman. (Compiled by Josephine Mason and Jamie Freed; edited by Louise Heavens, Jan Harvey, Philippe Fletcher, Matt Scuffham, Tiago Branao, Agnieszka Olesska, Bernadette HOG, Boleslaw LaSocki, Alexander Klyve Gudbrandsen, Romolo tosiani, and Julie Zhu)
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Five thousand French without electricity after two deaths in France due to violent storms
At least two people have died in violent thunderstorms that hit France overnight after a prolonged heatwave. French media and the local grid operator Enedis reported that 53,000 households had no power on Friday. * A woman was killed in Saint-Victurnien in central Haute-Vienne after a tree fell on her Thursday evening. In 'Dolomieu, to the east, a man died late Thursday night after a lightning strike ignited a fire in a workshop. Enedis, the grid operator, said that on Friday 53,000 households had lost?power. The cuts were mainly in the Auvergne-Rhone-Alpes region in the 'Southeast' and in Nouvelle Aquitaine to the 'Southwest. Meteo-France, the French weather service, lifted its orange alert on Friday for thunderstorms that had previously been reported in 'all departments' of Southeastern France.
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Families of the Pakistan cargo crash call for international assistance to find black boxes
Families of the five crew aboard a Boeing 737 cargo aircraft that crashed in the Arabian Sea near Pakistan last week are urging a global search to locate the flight recorders and determine the cause. The debris from the K2 Airways cargo plane was recovered shortly after the crash on July 7, but the depth of the water is approximately 3,000 meters (9,800 feet). Aviation experts who are familiar with deep-water crashes like Air France 447, in 2009, say that finding the "black boxes", would require an expensive underwater search. They may also need foreign assistance. The locator beacons of the plane, which is 27 years old, were only designed to send pings for 30 days. The recovery of the recorders may reveal if a navigation issue reported just before the crash is linked to a component that was replaced by relatives before the flight. Pakistan has not provided a public update for the last week. An industrial company that specializes in underwater search told them they had never heard from Pakistan about requests for help?from foreign companies and navies. Yashib Rizwan is the oldest son of Captain Rizwan. He said, "We need to continue our search and use all resources available, both locally and internationally." For us, a transparent investigation is essential. Abdur Rafay Siddiqui is the son of engineer Muhammad Arif Siddiqui. He has also requested international assistance, if necessary. After losing hope that the bodies will be recovered, both families held funeral prayers. The Pakistani government hasn't responded to questions about whether or not it would seek outside assistance to find the plane. K2, the company that lost its sole plane in the crash has not responded to any requests for comment. NAVIGATIONAL SYSTEM ISSUE Pakistan's airports authorities said that the pilots reported an issue with their navigational system at 9:18 pm Pakistan time, while flying from Sharjah to Karachi in the United Arab Emirates. The authority reported that local air traffic control attempted to guide the plane, but after three minutes, radar systems showed it descending quickly and communication had been lost. Flightradar24 showed that the plane plummeted about 5,000 feet within a minute. It then climbed about 6,500 feet in just 30 seconds, before entering a catastrophic dive at 36,550 feet. Ghulam Jatoi, the father-in law of the co-pilot, Faisal, revealed that the plane stayed in Sharjah for about 10 days before taking off while the pilots awaited the arrival of a replacement component from the U.S. Yashib Rizwan, son of the captain, said that one of the two inertial references units (IRUs) which feeds information about the aircraft's speed, position and orientation to cockpit displays was replaced in Sharjah. John Goglia said that if you are having a problem with your IRU you can't depend on the instruments. He added that pilots flying at night over oceans without visual references may have difficulty determining the orientation of the aircraft. It is unclear whether the IRU replacement was related to the crash. In the Adam Air crash of 2007, the inertial reference systems malfunctioned. The pilots were fixated on resolving erroneous data, and failed to notice the steep right bank. They lost control, the plane plunged into sea, killing the 102 passengers. The U.S. Navy assisted in the search for the black boxes of the Adam Air aircraft about three weeks following the crash. However, recovering the recorders after a month-long, multimillion-dollar operation using a remotely operated vehicle took months. Todd Curtis, a U.S. aviation specialist, said in the podcast "Flight Safety Detectives," that Pakistan would not mount a similar operation unless it had a compelling cause. The K2 aircraft was an old cargo jet and not a passenger model currently being produced. (Reporting from Akhtar Shahid and Ariba Shehid in Karachi, Additional reporting by Allison Lampert and Dan Catchpole in Seattle and Shilpa jamkhandikar in Montreal; Writing and editing by Jamie Freed.)
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Farnborough Airshow shifts focus to weapons and wars from jets
As security threats spiral, defence is expected to be at the forefront of Britain's Farnborough Airshow. Aerospace and arms makers are struggling to keep up with demand for weapons and cement a fragile recovery in civil jet and engine production. The Ukraine war is in its fifth year, and the Gulf ceasefire has been shattered. These risks are likely to push the annual competition between Boeing and Airbus over commercial jet orders in the July 20-24 trade show down the pecking-order. Air Chief Marshall Harv Smyth of the Royal Air Force told the International Air Chiefs Conference before the show that the global security environment was more volatile and complex than it had been in decades. We are also witnessing security threats evolving at an alarming rate. The biggest increase in European defence expenditure since the Cold War is witnessed by weapons makers at their biennial trade show, but there are still unanswered questions regarding where and how the money will be spent. Industry leaders say that drones and AI-powered software targeting systems could disrupt the defence industry, much like SpaceX did with the launch business. The wars in Ukraine and Iran have exposed the need for mass-produced and faster-developed systems. Tom Enders is the president of German Council on Foreign Relations, and also co-chair of German defence startup Helsing. "They spend their money." The procurement agencies and the armed forces are increasingly aware that this is the best way to create a dynamic, fast-moving sector," said Enders. He was the former CEO of Airbus who now chairs the tank manufacturer KNDS. While new budgeted funding will be spent on today's warplanes such as the Lockheed Martin F-35 or the Eurofighter, both of which are performing displays next year, startups like Helsing in the U.S. and Anduril in the U.K. are pushing AI-driven system like uncrewed pilot cohorts despite initial setbacks. Capital Alpha's managing partner, Byron Callan said that "values are tilting towards defence entrants" but most militaries still spend a large amount of resources on manned platform. The organizers said that defence companies will make up half of the 1,600 exhibitors, a record number, compared to 40% in the past. AI, deep tech and finance companies have also seen a significant increase. COMMERCIAL JET SALES, SUPPLY CHAINS Airbus and Boeing will announce commercially new orders, and reveal the customers behind previous deals. The usual flurry announcements will likely attract less attention, as investors are more focused on aircraft deliveries where manufacturers make the most profits. Although air shows are still capable of delivering surprises, industry sources say that the total number of aircraft sold may not exceed 300, which is well below pre-show predictions as high as 800. This could include already announced deals. "Winning orders" is not the issue. The Lundquist Group's managing director Jerrold Lundquist said that production capacity constraints have changed the way it is measured. Since COVID-19 Aerospace has been struggling with supply issues, particularly for parts such as castings and forgings. These are critical components made to exacting standards using molten metal or solid metal. Airbus's goal to increase single-aisle jet production by 25%, to 75 per month by 2027 has been repeatedly postponed. Boeing has announced that it will study?production levels above current targets in order to close the gap with its rival, and maintain a stable market share. Kevin Michaels of AeroDynamic?Advisory, a manufacturing expert and managing director, said that the supply chain has improved compared to a year ago. However it is still not at a point where Airbus will be able to achieve its 75-plane goal. He added: "And as Boeing increases rates, it will surely cause issues there as well." The aviation industry has been plagued by delays in engine deliveries, which frustrate aircraft manufacturers and airlines. GE Aerospace said that conditions are improving, but there is still more work to be done. Larry Culp, CEO of GE Aerospace, said: "I think that the supply chain is really turning the corner." "There's more work to be done." (Reporting and editing by Joe Brock, Jamie Freed, and Jamie Freed; Additional reporting and editing by Dan Catchpole; Additional reporting and editing by Allison Lampert; Shivansh Tiwary, David Shepardson, and Allison Lampert; Reporting and Editing by Tim Hepher and Cassell Byran Low; Editing and rewriting by Joe Brock, Jamie Freed, and Jamie Freed).
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China's oil exports plummeted during the Iran War. How much will the recover?
China imported 11.5 million barrels per day on average in the past five years. Since April, the average has been just 8 million barrels per day. China's rapid slashing of imports - shipments dropped to 40% below pre-Iran War levels in June - has helped keep a lid on global prices, and has freed up cargoes that could be used by other countries. Market observers want to know if the decline in demand will last. Michal Meidan is the head of China Energy Research for the Oxford Institute for Energy Studies. "There is a huge level of uncertainty, because we do not fully understand what happened." This uncertainty is due to the fact that China is not transparent: its oil companies have opaque data and the size of their stockpiles is a secret. Analysts predict that China's oil demand could drop by up to 2 million barrels per day (bpd) after the war, a dramatic decline for a nation that has driven global oil consumption for decades. Consider the following factors: WHY CHINESE FUEL DESIRE? The war revealed that the Chinese transport system can run on less fuel, than was thought possible. This has major implications for crude oil imports as roughly half of them are refined into transportation fuels. It's not clear whether the war will significantly accelerate electric car sales. Especially since petrol prices are now back at pre-war levels, after having risen by over a quarter. In June, electric and hybrid vehicles accounted for a record-breaking 62% of all new car sales. A weak Chinese economy and the slow electrification rate of an 87% petrol-powered fleet have led to hundreds of thousands of cars being sold less this year. The war is likely to accelerate the decline of diesel after the government announced a plan to electrify trucks in June, with the aim to have some popular short-haul routes electrified by 2030. Rystad, a consultancy, expects Chinese consumption of gasoline and diesel to fall 6.6% and 6.9% respectively, as opposed to their previous forecasts which were 3.5% and 3 % before the war. Ye Lin, a Rystad analyst, says that the crisis has been a catalyst. It helped consumers gain a greater confidence in electric vehicles and trucks. WHERE IS THE INDUSTRIAL DEMAND GOING? Meidan, from the Oxford Institute for Energy Studies, warns that if the Iran War slows China’s growth at home or on its export markets further, this will pose a risk to the country’s oil demand. China's construction industry has been hit by the property crisis, which has impacted diesel demand over several years. Property prices continue to fall. A structurally weaker economic system could also affect demand for plastics and petrochemicals. This would hurt refiners as well as reduce oil consumption. Meidan stated that we don't think enough about the bigger economic picture. "That's a big question, and it will have an impact on Chinese oil demand as well as industrial activity." What role does stockpiling play? Crude imports increased due to Beijing's campaign of reserve building last year. This was done in order for China to be able absorb the shock of a closed Strait of Hormuz. Analysts say that the stockpiling of China's reserves has ceased since the end of the war. However, it is difficult to determine when and how much China will resume building its reserves due to the uncertainty surrounding Beijing's goals and the size. Beijing does not disclose its reserve targets or how much it stores. Last year, it was reported that China had been building new storage tanks. Premier Li Qiang demanded even more capacity during a visit in?May to a reserve. According to June Goh senior analyst of Sparta Commodities, "despite the demand destruction, China will still import crude oil in incremental quantities to fill its strategic reserves." Goh believes that a stockpiling drive could bring them back up to the 9.5 to 11 million bpd range. Brent crude traded between $58-$83 per barrel during China's massive stockpiling last year, as opposed to the current price of around $85. Analysts believe it may resume if prices drop below $70. Will the Fuel Export Valve revive oil demand? Analysts say that, whatever the new "normal", it will require certainty regarding the Gulf's supply and the lifting of Beijing's restrictions on fuel exports during wartime. Chinese refiners are less likely to increase production if they don't have exports to absorb excess gasoline, jet fuel and diesel. Beijing may impose these restrictions again in August, now that the Gulf war has resumed. Exports can also determine the final destination of China's crude oil imports in the long term. Refineries could need to import more oil if overseas sales absorb excess fuels and petrochemicals. China closely manages fuel shipments through a fuel export system. (Reporting and editing by Lewis Jackson in Beijing, Sam Li)
Kuwait claims Iranian attack damages water desalination and power generation station
Kuwaiti authorities reported?on?Friday that an Iranian attack?hit one of Kuwait's power generating and?water -desalination stations, causing a fire, damage, and the interruption of a number of electricity generation units.
The Ministry of Electricity, Water and Renewable Energy reported that firefighters brought the fire under control, while technical teams assessed the damage, secured the station and worked to restore service as quickly as possible for the affected electricity generation units.
Iran claimed to have launched a new attack on U.S. military facilities in the Middle East on Friday. This included 'the first direct attack on Syria, following a sixth night of 'U.S. Attacks on Iranian military installations.
The?Irani military announced early on Friday that it had?attacked?U.S. Facilities in Bahrain and Kuwait. (Reporting and editing by William Maclean, Ahmed Elimam)
(source: Reuters)