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Experts say that Air Force One’s Qatari aircraft needs to be upgraded for security, but they wonder if one month is sufficient.
Experts said that the newly announced grounding by President Donald Trump of his Qatari-gifted 'Air Force One' jet was likely due to security upgrades, but questioned whether one month would be enough time to improve the aircraft's defences. Trump announced on Sunday that the Boeing 747 that began flying him in July would be "maxed-out" with new capabilities. He said this process would take around a month. Trump's decision to switch to an older Air Force One on his flight from Turkey to the United Kingdom in July?8 as tensions between the United States and Iran grew brought the plane's readiness for security under new scrutiny. The Boeing 747 with the red, white and dark blue livery selected by Trump is a Boeing gifted to the United States last year by Qatar and refitted L3Harris Technologies LHX.N. The plane was intended to be a temporary replacement for the Air Force Ones that Boeing?BA.N has been struggling to deliver. Douglas Birkey is the executive director of the Mitchell Institute for Aerospace Studies. He said that the standard Air Force One fleet has a suite of sophisticated protections including anti-missile system. However, the White House seems to have "accepted" a lower level of protection for this Qatari jet to get it up and running quickly. Birkey?said that the aircraft is likely configured for "neutral" or low-level threat environments, and officials are working on adding additional defenses. He said that any work completed in a month will likely be limited to non-kinetic defenses such as electronic jammers and "dazzlers" designed to confuse heat seeking missiles. Birkey stated that infrared guided missiles are a growing concern for military planners. They are more difficult to detect than traditional radar-guided weapons and can "come out of nowhere." The Air Force declined to comment. The new Air Force One will be upgraded and enhanced in the fall, which will take about a month. During this time, President Obama will be flying on the older?Air Force One", White?House spokesperson Karoline Leavitt stated on Monday. Mark Cancian is a senior advisor at the Center for Strategic and International Studies. He said that there's not much they can accomplish in a month. He agreed that the work could be limited to software updates, or adding flares or chaff. Cancian stated that 'the decision to change aircraft in Turkey was likely based on updated intelligence about threats from Iran. This led officials to conclude that the threat level was greater than what the Qatari Jet could handle. Democrats have questioned the speed at which the aircraft was brought into service. They argue that more time is needed to complete the security upgrades. Senator Jeanne Shaheen stated at the Farnborough Airshow, that Congress must examine the safety of the plane. We knew that there were security issues with the plane. "We've known this from the beginning." (Reporting and editing by Chris Sanders, Sanjeev Mirlani and Chris Sanders in Washington. Additional reporting by David Shepardson and Trevor Hunnicutt from Washington and Farnborough.
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IndiGo and CFM sign major jet engine repair shop deal
IndiGo, India’s largest airline, has signed a preliminary deal with?CFM International to purchase over 1,000 LEAP-1A engine. This is a record order for this French-U.S. engine maker, which is currently battling a repair backlog. The Memorandum of Understanding at the Farnborough Airshow will provide engines for the same airline’s massive order to purchase 500 Airbus A320neo family aircraft by 2023, at the Paris Airshow. Paris alternates with Farnborough each year as the industry’s annual showcase. This deal includes plans to have the airline open a maintenance, repair, and overhaul center as well as an agreement for parts. CFM is the largest engine manufacturer in the world by the number of engines sold. It makes engines for the Airbus A320neo and competes with Pratt & Whitney. It is co-owned by GE Aerospace, France's Safran and CFM. Long maintenance 'waiting' times and shortages in spare parts have caused the engine industry to be?disrupted for many years. This has forced airlines to temporarily keep their planes idle. CFM announced at the weekend that it has reduced the number planes grounded due to LEAP engines related issues to "near zero". Pratt & Whitney has also seen improvements. The rival company, which was the main cause of groundings, due to a?shortage of maintenance capacity, and metal contamination problems, has reported similar results. Sources in the industry said that two of the largest budget airlines in the world decided to build repair shops partly to protect themselves from a'scarce capacity for repair. Both airlines will only use their own engines and not outsource their internal resources to others. Even though engine manufacturers are gradually easing the delays, a sharp increase?in planes being constructed means that access to repairs will become a strategic issue for airlines in the future. Boeing warned last week that a lack of skilled?technicians, repair times and supply chain problems would put engine services under strain for the rest of this decade. The U.S. aircraft manufacturer predicted that the total annual MRO market would grow by 88% to $215 billion in 2045. (Editing by Tomasz Janowski and Deepa Babington).
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A northern city lost trains to London on the day Andy Burnham became UK PM
The day Andy Burnham was elected prime minister, the region suffered a blow when a major train operator cut off many direct trains to London. Burnham, former Greater Manchester Mayor, has pledged to take greater control over key privatised services, such as trains, in order to boost connectivity and productivity and improve living conditions. East Midlands Railway's reduced timetable?took place on Monday and disrupted services from Sheffield, Nottingham, to London. The company did not specify a date by which services would resume. Cutbacks are an example of the frustration Burnham promised to address. Britain struggles to build and operate infrastructure in a reliable manner, and many services are provided by companies that are not accountable to local politicians. Oliver Coppard is the mayor of South Yorkshire Mayoral Combined Authority, which oversees Sheffield and the surrounding towns. He said it was a test case to see if Burnham's promise that the regions would be empowered could fix these problems. Coppard stated that he was now reduced to saying to private companies, "Do better". It's not enough. "I want to bring back the power and control in South Yorkshire so that we can make these decisions and change these systems, so they work well for people." EMR stated that the reduced timetable was due to delays in the rollout new Hitachi trains. EMR data showed that on a weekly basis, one out of five scheduled services between Sheffield or Nottingham to London would be either cut or run using fewer carriages. EMR's spokesperson stated that "this temporary?timetable" will be reviewed regularly and services will be increased as soon as they are confident of their ability to do so. A spokesperson for the Department of Transport said that it had asked EMR do everything they could to minimize the impact of timetable changes. Sheffield is a city of nearly 600,000 people, and it's known for its steel industry. Boeing and McLaren Automotive are major employers. Henri Murison is the head of the Northern Powerhouse Partnership. This business-backed group lobbies to attract investment in Northern England. He was worried that the news would permanently damage the attractiveness. (Reporting and editing by Hugh Lawson; Reporting by Andy Bruce)
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Ten bodies found after ferry capsizes near Guyana coastline
Guyana's government announced on Monday that 10 bodies were recovered from a ferry capsized over the weekend off the coast with 133 passengers on board. The ship flipped late Saturday night. Authorities have suggested that an incorrect 'passenger manifest' and drug use by the crew could have been a contributing factor to this?disaster. The MV Barima capsized as it traveled from the capital, 'Georgetown' to the village of Port Kaituma in the northwest. Although 67 survivors, including 15 children, were rescued Sunday morning, dozens of people remain unaccounted for. Search teams expanded their area of search to 1,040 sq km (401 sq miles) with the help of private energy sector vessels and divers. Officials said that the vessel's captain, and at least one other crewmember are in police custody after testing positive for marijuana. Mark Phillips, Prime Minister of Canada, has ordered an investigation into possible institutional failures. Phillips promised that anyone found guilty will be prosecuted. Reporting by Kemol King
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Red Sea war insurance rates rise after Houthi Blockade, say sources
Insurance industry sources say that the cost of insurance for shipping goods through the Red Sea increased 'on Monday, after Yemeni Houthis, who are Iran-aligned, announced a naval blockade against Saudi Arabia. This increased risks to merchant shipping. The Houthis' move opens up a new front in the war against Iran waged by the United States and increases the danger to energy supplies and global trade outside the Gulf. Sources who declined to identify themselves due to the sensitive nature of the issue said that the indicative war risk premiums increased to around 0.75%, up from 0.3%, the day before the Houthi announcement. A seven-day trip can cost hundreds of thousands more dollars for even a minor change. It is unclear how the Houthis will 'carry out' a naval blockade against Saudi Arabia, their northern neighbour along the Red Sea coast, or if it would include a return of attacks on shipping. Since the U.S. and Israel's conflict with Iran started on February 28, Saudi Aramco has increased its use of the Yanbu Terminal in the Red Sea. Ambrey, a British maritime security firm, said that vessels flying the Saudi Arabian flag, those owned or operated by Saudi Arabia, and vessels on their way to or from Saudi Arabia, as well as vessels in Saudi Arabian ports or en route, were all deemed 'at high risk' of being attacked by Houthis. The Houthis committed a mistake during the Red Sea Crisis of 2024 by targeting ships with outdated affiliations to firms. Ambrey stated that it is possible for vessels to be targeted because of a mistaken identity. Saudi oil exports could be halted to Asia if the Bab el-Mandeb strait is closed. This would also reduce the global supply of oil by 7%. Red 'Sea traffic is still not back to normal since Houthi attacks on Yemeni coasts began in November 2023, in what they called a'solidarity war with Palestinians. The Gaza ceasefire of October 2013 was the only time that all Houthi attacks ceased. In recent months, there have been more suspected Somali piratery and hijackings of ships in the Gulf of Aden. This has increased the dangers to shipping. (Reporting and editing by Susan Fenton; Jonathan Saul)
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Senators from the US at an airshow reassure foreign defense companies and urge tariff-free trading
Nine?U.S. senators from both parties have formed a bipartisan group. Senators sought on Monday to reassure defense contractors of?American allies about the growing demand for their product and asked?the Trump Administration not to impose tariffs on aerospace products. At the Farnborough Airshow, Republican Senator Jerry Moran said: "Our message is to encourage them to improve their capability to send a message that the signal of demand is real." "We're doing things in Congress to suggest that demand will only grow." Moran said, "We must increase the demand for our country's protection." He added that the event would allow lawmakers to talk with Europeans, "to'reiterate and commit ourselves to the United States wanting to participate in global economy and national security. Senator Jeanne Shaheen, a Democrat from the United States, said that the senators represented a wide swath in the country where aerospace was important. She said that the U.S. was exhibiting at Farnborough in its largest ever presence. She pointed out that last year China was more visible at the Paris airshow. Shaheen stated that "the fact?that America has such a large?presence is important, not only for America's industry, but also the partnerships we need around the globe to improve not only our economic security, but our national safety." Shaheen stated that the U.S., European Union and other countries need to collaborate in order to meet the?needs of defense and the backlog. The U.S. Commerce Department announced earlier this month that it had finished a probe of imported commercial aircrafts, jet engines, and parts. It found foreign goods raised U.S. National Security concerns, but the Trump Administration is not?immediately seeking new tariffs. After a brief tariff on aviation in 2018, the Trump administration bowed to pressure from the U.S. Aviation sector and agreed to exempt aircrafts and parts as part of trade deals. Moran, Shaheen, and others oppose tariffs. Eric Fanning CEO of the Aerospace Industries Association noted that the U.S. Aerospace and Defense industry saw a 25% increase in exports over the past?year, with more than two million U.S. employees. Fanning stated that "we are by far the world leaders." Airplanes, parts and accessories have been exempt from tariffs since 1979 under the Civil Aircraft Agreement. The U.S. sector has enjoyed an annual surplus of $75 billion. (Reporting and editing by Alexandra Hudson; Reporting by David Shepardson)
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Aircraft orders are up at the Farnborough airshow, as Boeing and Airbus compete for deals
As the 'Farnborough International Airshow' opened on Monday, more aircraft orders are expected to be announced this week. The?British show is one of the largest gatherings in the sector. Sources in the industry said that despite expectations of 800 or more aircraft, 'dealmaking' is expected to fall short. This is because?Airbus &?Boeing are still struggling with production bottlenecks and supply-chain constraints. Here are some of the most important deals that have been made so far. SMBC AVIATION CAPITALS Boeing and SMBC Aviation Capital have announced that they have ordered 100 737-MAX aircraft, including 60 737-10 jets and 40 737-8 jets. The 737-10 is SMBC Aviation Capital’s first order for the highest-capacity variant of the 737?MAX. SMBC announced that it had placed a firm 100 Airbus A320neo family aircraft order. Airbus'?order includes 65 A321neos and 35 A320neos, and deliveries are expected to start in the first half decade of the?decade. INDIGO India’s largest airline signed a memorandum with CFM International for the purchase of over 1,000 LEAP-1A engine. This would be a record-breaking deal?for an engine manufacturer that has been criticized by industry due to maintenance delays. RIYADH AIR The 'Saudi carrier exercised its options on 28 'Boeing 787 Dreamliners, from an order placed in the year 2023. 20 of these aircraft were converted to the 787-10 variant. The firm has also confirmed a further six Airbus A350 1000 aircraft orders, bringing its total A350 1000 order book up to 31 aircraft. PHILIPPINE Airlines announced that it had placed a new order with Boeing for 20 Dreamliner 787-10 widebody twinjets. The order is composed of 15 firm orders, and five options. Philippine Airlines, which has operated Boeing aircraft for many years, including the 777-300ERs it currently operates, has never before operated Boeing's Dreamliner 787-10. Other Deals Japan's Skymark Airlines and Aviation Capital Group have agreed to lease seven Boeing 737 MAX 10 narrowbody twinjets. Deliveries will begin in 2028. Airbus' first order at the show was a commitment from UK's National Police Air Service to purchase two more H135 helicopters, bringing their fleet renewal program up to nine H135s. Delivery is expected to begin in 2028. British Airways has announced that it will be ordering Pratt & Whitney GTF engine for up to 63 Airbus A320neo jets, 33 'firm orders' and 30 options. Singapore-based BOC Aviation has placed its largest ever engine order. It will purchase and option 300 CFM International engines in support of its growing Airbus and Boeing narrow body fleet.
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EU wheat is flattened on signs that Russian/Ukrainian attacks at ports are not escalating
The European wheat futures were unchanged in Paris on Monday, traders said. They were relieved that the attacks by Russia and Ukraine on grain terminals and?shipping of grains? had not increased. The European wheat market posted its largest weekly gain in more than four decades on Friday, after Russia and Ukraine repeatedly struck each other's grain terminals and grain shipping facilities. Both sides had left them largely unaffected during their war. The benchmark September milling grain on the Paris-based Euronext ended the daytime sessions unchanged at EUR234.75 (USD267.97) per metric ton. It gained 8.4% on fears that the attacks on grain shipments could reduce Black Sea wheat exports. One German trader stated that despite the continued attacks against grain ships, they did not appear to be worsening. Ukraine seems to be concentrating their attacks on tankers. He said it was a relief that Ukraine did not strike the massive grain terminals in Russia's Novorossiysk Port, which could have caused major disruptions to the grains markets. One French trader stated that the market seemed to be taking a break despite the events of last weekend. I think the trend shouldn't change much in the absence of visibility regarding a possible?agreement. I've heard that Black -Sea FOB wheat values are still quite firm. This also limits the downside of the market. Euronext declined despite more bad news about French crops. Argus Media reported on Monday that France's soft 'wheat' crop will fall to 30,80 million metric tonnes this year, down 7.6% compared to '2025. This is after hot and dry weather 'hit yields' in the 'European Union's largest producer of the cereal.
Maguire: ROI-America’s power grid chokes on expensive congestion
The congestion on the U.S. electric grid is becoming a costly bottleneck. It drives up power prices, delays new generation projects, and undermines reliability.
But the attention of the electricity industry is still largely focused on generation. Politicians debate?solar panel, natural gas turbines, and nuclear reactors, while utilities boast of billions of dollars in planned investments.
PJM Interconnection is the largest U.S. electricity market, spanning 13 states. It provides a stark example. According to Gridraven, transmission congestion cost market players $777.8 in June.
This was a drop from the?record-breaking $1 billion congestion bill during a heatwave in May, but it remains high.
In just two months, the combined congestion charges amounted to $1.8 billion.
GROWTH TREND
It is the direction of travel, not the headline figure. The direction in which things are going is what's most worrying.
In the coming years, congestion costs will likely become a greater burden for electricity producers and consumers if current trends continue.
This is important because congestion acts as a tax against economic growth.
Grid operators can't just dispatch the cheapest electricity available when transmission lines are overloaded.
They are forced to use generators that are more expensive and located nearer to the demand centers. These costs are eventually passed on to customers through wholesale markets.
Customers rarely see "congestion surcharges" on their electric bills. But they still pay.
The problem becomes more acute as the demand increases at exactly the wrong time.
Years ago, the U.S. demand for electricity was virtually flat. This allowed policymakers and utilities alike to put off difficult transmission decisions. This era is over.
Construction of data centers is on the rise. The number of manufacturers expanding their domestic production is on the rise. State and utility companies continue to promote electrification in transport and heating.
All of these trends are increasing demand for electricity and, more importantly, for the movement of it throughout the country.
MISMATCH IN SUPPLY AND DEMAND
Even more difficult is the geography of today's electricity system.
The cheapest new generation is often located away from the major population centers. In rural areas, wind resources are most abundant. Solar power is often more efficient in areas where there is plenty of land than in places where electricity is consumed.
The U.S. needs transmission infrastructure as much as they need generation infrastructure.
Transmission development is notoriously slow. Permitting and building new high-voltage lines can take up to a decade. Projects are often delayed by local opposition, disputes over permits and battles about cost allocation.
The demand for goods and services is growing, but it does not wait.
PJM PAINPOINTS
PJM is already experiencing the?consequences.
Congestion in June was concentrated primarily in Pennsylvania, Maryland and Northern Virginia. These regions are at the intersection between rising electricity demand and transmission bottlenecks.
Northern Virginia has been a major hub for the U.S. Data-center boom.
It is clear that the billion-dollar event in May was not an anomaly. It may instead offer a glimpse at what the future of electricity markets will look like.
This presents challenges to consumers and power producers alike.
Even when the electricity demand is high, generators behind transmission restrictions may not be able to access all lucrative markets.
Congestion can reduce revenues, distort signals of investment and reduce the value new generation projects.
Many renewable developers are vulnerable, as they are far away from urban demand centers and rely heavily on transmission.
DYNAMIC PROSPECTS FOR GROWTH
Ironically, America is investing heavily in power generation but failing to make the most of it due to grid bottlenecks.
This explains the interest in technologies which can extract more capacity from existing transmission infrastructure.
Gridraven estimates Dynamic Line Rate technology could have?increased the available transmission capacity in PJM on average by 13% in June, resulting in savings of approximately $88.3 millions in congestion.
The company, which models future transmission capacity using weather forecasts and AI, suggests that the most costly constraint in June was the?Graceton Manor 230-kilovolt Corridor, could have seen costs for congestion reduced by almost $36 million.
It is not as important whether these estimates are accurate or not, but rather the message. Because it is so difficult to build new infrastructure, the industry is looking for ways to maximize existing grid capacity.
Other firms have also developed hardware to increase capacity on existing transmission lines. These include Linevision which models transmission capacity using sensors and digital twins.
These technologies could be helpful. They are unlikely to eliminate the problem completely.
It's a sad fact that America's electric ambitions are growing faster then its transmission network.
The country is aiming for AI leadership, increased domestic manufacturing, cleaner energie, a wider electrification, and stronger economic growth. Each of these goals will require more electricity to be flowing through the grid.
Congestion costs will continue to rise until transmission expansion catches up. If PJM is any guide, then electricity consumers will soon find out that the most costly part of energy transition isn't producing power.
It's moving.
These are the opinions of the columnist, who is also an author. This column is great! Open Interest (ROI) is your new essential source of 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 7 days a weeks.
(source: Reuters)