Tag Archives: COMAIR

Airbus and Qatar Airways settle bitter A350 jet row

PARIS, Feb 1 (Reuters) – Airbus (AIR.PA) and Qatar Airways have settled a dispute over grounded A350 jets, the companies said on Wednesday, averting a potentially damaging UK court trial after a blistering 18-month feud that tore the lid off the global jet market.

The “amicable and mutually agreeable settlement” ends a $2 billion row over surface damage on the long-haul jets. The spat led to the withdrawal of billions of dollars’ worth of jet deals by Airbus and prompted Qatar to increase purchases from Boeing.

The cancelled orders for 23 undelivered A350s and 50 smaller A321neos have been restored under the new deal, which is also expected to see Airbus pay several hundred million dollars to the Gulf carrier, while winning a reprieve from other claims.

Financial details were not publicly disclosed.

The companies said neither admitted liability. Both pledged to drop claims and “move forward and work together as partners”.

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The deal heads off what amounted to an unprecedented public divorce trial between heavyweights in the normally tight-knit and secretive $150 billion jet industry.

The two sides had piled up combined claims and counter-claims worth about $2 billion ahead of the June trial.

French Finance Minister Bruno Le Maire welcomed the deal, which came in the wake of increasing political involvement amid close ties between France, where Airbus is based, and Qatar.

“It is the culmination of significant joint efforts. It is excellent news for the French aerospace industry,” he said.

Airbus shares closed up 1% before the announcement.

Qatar Airways had taken the unusual step of publicly challenging the world’s largest planemaker over safety after paint cracks exposed gaps in a sub-layer of lightning protection on its new-generation A350 carbon-composite jets.

Airbus had acknowledged quality flaws but, backed by European regulators, had insisted that the jets were safe and accused the airline of exaggerating flaws to win compensation.

DAMAGES

Supported by a growing army of lawyers, both sides repeatedly bickered in preliminary hearings over access to documents, to the growing frustration of a judge forced to order co-operation.

Analysts said the deal would allow both sides to feel vindicated, with Qatar Airways winning damages and recognition that the problem lay outside the manual and therefore required a new repair, and Airbus standing its ground on safety and spared the difficult task of finding a home for cancelled A350s.

Qatar will get the in-demand A321neos needed to plan its growth, albeit three years later than expected, in 2026. Airbus’ decision to revoke that order, separate from the disputed A350 contract, had been criticised by global airlines group IATA.

Airbus said it had done its best to avoid pushing Qatar too far back in the queue, though some experts question whether it could have met the earlier schedule because of supply problems.

The settlement is also expected to stop the clock ticking on a claim for grounding compensation that had been growing by $6 million a day, triggered by a clause agreed upon after the repainting of a jet for the World Cup revealed significant surface damage.

Originally valued at $200,000 per day per plane, Airbus’ theoretical liability was ratcheting upwards by a total of $250,000 an hour for 30 jets – or $2 billion a year – by the time the deal was struck, based on court filings. Neither side commented on settlement details.

Airbus said it would now work with the airline and regulators to provide the necessary “repair solution” and return Qatar’s 30 grounded planes to the air.

Confirmation of a settlement came after Reuters reported a deal could arrive as early as Wednesday. In 2021, a Reuters investigation revealed other airlines had been affected by A350 skin degradation, all of whom said it was “cosmetic”.

The dispute has focused attention on the design of modern carbon-fibre jets, which do not interact as smoothly with paint as traditional metal ones, and shed light on industrial methods.

Additional reporting by Leigh Thomas, Michel Rose
Editing by David Goodman, Diane Craft and Gerry Doyle

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Ukraine raids home of billionaire in war-time anti-corruption crackdown

  • Security services make sweeping raids before EU summit
  • Homes of billionaire, former interior minster searched
  • New U.S. weapons would nearly double Ukraine’s range
  • Ukrainian soldier says fighting Russian forces in Bakhmut

KYIV, Feb 1 (Reuters) – Security services searched the home of one of Ukraine’s most prominent billionaires on Wednesday, moving against a figure once seen as President Volodymyr Zelenskiy’s sponsor in what the authorities called a war-time anti-corruption purge.

The action, days before a summit with the European Union, appears to reflect determination by Kyiv to demonstrate that it can be a steward of billions of dollars in Western aid and shed a reputation as one of the world’s most corrupt states.

It came as Kyiv has secured huge pledges of weapons from the West in recent weeks offering new capabilities – the latest expected this week to include rockets from the United States that would nearly double the firing range of Ukrainian forces.

Photographs circulating on social media appeared to show Ihor Kolomoiskiy dressed in a sweatsuit and looking on in the presence of an SBU security service officer at his home.

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The SBU said it had uncovered the embezzlement of more than $1 billion at Ukraine’s biggest oil company, Ukrnafta, and its biggest refiner, Ukrtatnafta. Kolomoiskiy, who has long denied wrongdoing, once held stakes in both firms, which Zelenskiy ordered seized by the state in November under martial law.

Separate raids were carried out at the tax office, and the home of Arsen Avakov, who led Ukraine’s police force as interior minister from 2014-2021. The SBU said it was cracking down on “people whose actions harm the security of the state in various spheres” and promised more details in coming days.

“Every criminal who has the audacity to harm Ukraine, especially in the conditions of war, must clearly understand that we will put handcuffs on his hands,” Ukraine’s security service chief Vasyl Malyuk was quoted as saying on the SBU Telegram channel.

The prosecutor general’s office said the top management of Ukrtatnafta had been notified it was under suspicion, as were a former energy minister, a former deputy defence minister and other officials.

Kolomoiskiy, who faces a fraud case in the United States, has been at the centre of corruption allegations and court disputes for years that Western donors have said must be resolved for Kyiv to win aid.

Zelenskiy, who first came to fame as the star of a sitcom on Kolomoiskiy’s TV station, has long promised to rid Ukraine of so-called oligarchs, but had faced accusations that he was unable to move decisively against his former sponsor.

In an address overnight before the raids, he alluded to new anti-corruption measures in time for Friday’s summit, at which Ukraine is expected to seek firm steps towards joining the EU.

“We are preparing new reforms in Ukraine. Reforms that will change the social, legal and political reality in many ways, making it more human, transparent and effective,” he said, promising to reveal the details soon.

LONGER RANGE MISSILES

Ukrainian forces which recaptured swathes of territory from Russian troops in the second half of 2022 have seen their advance stall since November. Kyiv says the key to regaining the initiative is securing advanced Western weaponry.

Two U.S. officials said a new $2 billion package of military aid to be announced as soon as this week would for the first time include Ground Launched Small Diameter Bombs (GLSDB), a new weapon designed by Boeing. (BA.N)

The cheap gliding missiles can strike targets more than 150 km (90 miles) away, a dramatic increase over the 80 km range of the rockets fired by HIMARS systems which changed the face of the war when Washington sent them last summer.

That would put all of the Russian-occupied territory on Ukraine’s mainland, as well as parts of the Crimea peninsula seized by Moscow in 2014, within range of Kyiv’s forces.

Kremlin spokesman Dmitry Peskov said the arrival of longer range U.S. weapons would escalate the conflict.

Western countries pledged scores of advanced main battle tanks for the first time last week, a breakthrough in support aimed at giving Kyiv the capability to recapture occupied territory this year.

But the arrival of the new weapons is still months away, and in the meantime, Russia has gained momentum on the battlefield, announcing advances north and south of the city of Bakhmut, its main target for months.

Kyiv disputes many of those claims and Reuters could not independently verify the full situation, but the locations of reported fighting clearly indicate incremental Russian advances.

Troops were fighting building to building in Bakhmut for gains of barely 100 metres (yards) a night, and the city was coming under constant Russian shelling, a soldier in a Ukrainian unit of Belarusian volunteers told Reuters from inside the city.

Ukraine’s general staff said late on Tuesday its forces had come under fire in Bakhmut and the villages of Klishchiivka and Kurdyumivka on its southern approaches.

South of Bakhmut, Russia has also launched a major new offensive this week on Vuhledar, a longstanding Ukrainian-held bastion at the junction of the southern and eastern front lines. Kyiv says its forces have so far held there.

PURGE

The infusion of Western military and financial aid creates new pressure on Zelenskiy to demonstrate his government can clean up Ukraine.

Last week, he purged more than a dozen senior officials following a series of scandals and graft allegations in the biggest shakeup of Ukraine’s leadership since the invasion.

Following Wednesday’s raids, the parliamentary leader of Zelenskiy’s Servant of the People party, David Arakhamia, wrote on Telegram: “The country will change during the war. If someone is not ready for change, then the state itself will come and help them change.”

Reporting by Reuters bureaux
Writing by Peter Graff
Editing by Philippa Fletcher

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Ukraine in talks with allies about getting long-range missiles, Zelenskiy aide says

Jan 28 (Reuters) – Expedited talks are under way among Kyiv and its allies about Ukraine’s requests for long-range missiles that it says are needed to prevent Russia from destroying Ukrainian cities, a top aide to President Volodymyr Zelenskiy said on Saturday.

Ukraine has won promises of Western battle tanks and is seeking fighter jets to push back against Russian and pro-Moscow forces, which are slowly advancing along part of the front line.

“To drastically reduce the Russian army’s key weapon – the artillery they use today on the front lines – we need missiles that will destroy their depots,” presidential adviser Mykhailo Podolyak told Ukraine’s Freedom television network. He said on the Russian-occupied Crimean Peninsula there were more than 100 artillery warehouses.

“Therefore, firstly, negotiations are already under way. Secondly, negotiations are proceeding at an accelerated pace,” he said without giving details.

Zelenskiy, speaking separately, said Ukraine wanted to preempt Russian attacks on Ukrainian urban areas and civilians.

“Ukraine needs long-range missiles … to deprive the occupier of the opportunity to place its missile launchers somewhere far from the front line and destroy Ukrainian cities,” he said in an evening video address.

Zelenskiy said Ukraine needed the U.S.-made ATACMS missile, which has a range of 185 miles (297km). Washington has so far declined to provide the weapon.

Earlier in the day, the Ukrainian air force denied a newspaper report that it intended to get 24 fighter jets from allies, saying talks were continuing, Ukraine’s Babel online outlet said.

Spain’s El Pais newspaper, citing Ukrainian air force spokesperson Yuri Ihnat, said Ukraine initially wanted two squadrons of 12 planes each, preferably Boeing F-16 jets.

But in a statement to Babel, Ihnat said his comments to a media briefing on Friday had been misinterpreted.

“Ukraine is only at the stage of negotiations regarding aircraft. Aircraft models and their number are currently being determined,” he said.

Ihnat told the Friday briefing that F-16s might be the best option for a multi-role fighter to replace the country’s current fleet of ageing Soviet-era warplanes.

He also told Ukrainian national television that allied nations did not like public speculation about jets, Interfax Ukraine news agency said.

Deputy White House national security adviser Jon Finer on Thursday said United States would be discussing the idea of supplying jets “very carefully” with Kyiv and its allies.

Germany’s defence minister this week ruled out the idea of sending jets to Ukraine.

Reporting by David Ljunggren; Editing by Daniel Wallis and Cynthia Osterman

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David Ljunggren

Thomson Reuters

Covers Canadian political, economic and general news as well as breaking news across North America, previously based in London and Moscow and a winner of Reuters’ Treasury scoop of the year.

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At least 64 killed in Nepal’s worst air crash in 30 years

KATHMANDU, Jan 15 (Reuters) – At least 64 people were killed on Sunday when a domestic flight crashed in Pokhara in Nepal, the small Himalayan country’s worst air crash in three decades.

Hundreds of rescue workers were scouring the hillside where the Yeti Airlines flight, carrying 72 people from the capital Kathmandu, went down.

Local TV showed rescue workers scrambling around broken sections of the aircraft. Some of the ground near the crash site was scorched, with licks of flames visible.

“We have sent 31 bodies to the hospital and are still taking out 33 bodies from the gorge,” said police official Ajay K.C., adding that rescue workers were having difficulty reaching the site in a gorge between two hills near the tourist town’s airport.

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The crash is Nepal’s deadliest since 1992, the Aviation Safety Network database showed, when a Pakistan International Airlines Airbus A300 crashed into a hillside upon approach to Kathmandu, killing all 167 people on board.

The plane made contact with the airport from Seti Gorge at 10:50 a.m. (0505 GMT), the aviation authority said in a statement. “Then it crashed.”

“Half of the plane is on the hillside,” said Arun Tamu, a local resident, who told Reuters he reached the site minutes after the plane went down. “The other half has fallen into the gorge of the Seti river.”

Khum Bahadur Chhetri said he watched from the roof of his house as the flight approached.

“I saw the plane trembling, moving left and right, and then suddenly its nose dived and it went into the gorge,” Chhetri told Reuters, adding that local residents took two passengers to a hospital.

The government has set up a panel to investigate the cause of the crash and it is expected to report within 45 days, the finance minister, Bishnu Paudel, told reporters.

SERIES OF CRASHES

At least 309 people have died since 2000 in plane or helicopter crashes in Nepal – home to eight of the world’s 14 highest mountains, including Everest – where sudden weather changes can make for hazardous conditions.

The European Union has banned Nepali airlines from its airspace since 2013, citing safety concerns.

Those on the twin-engine ATR 72 aircraft included two infants and four crew members, said airline spokesman Sudarshan Bartaula.

The journey to Pokhara, Nepal’s second largest city tucked under the picturesque Annapurna mountain range, from the capital Kathmandu is one of the Himalayan country’s most popular tourist routes, with many preferring a short flight instead of a six-hour-long drive through hilly roads.

The weather on Sunday was clear, said Jagannath Niroula, spokesman for Nepal’s Civil Aviation Authority.

Passengers included five Indians, four Russians and one Irish, two South Korean, one Australian, one French and one Argentine national.

The ATR72 of European planemaker ATR is a widely used twin engine turboprop plane manufactured by a joint venture of Airbus (AIR.PA) and Italy’s Leonardo (LDOF.MI). Yeti Airlines has a fleet of six ATR72-500 planes, according to its website.

“ATR specialists are fully engaged to support both the investigation and the customer,” the company said on Twitter, adding that its first thoughts were for those affected, after having been informed of the accident.

Airbus and Leonardo did not immediately respond to requests for comment.

Flight tracking website FlightRadar24 said on Twitter the Yeti Airlines aircraft was 15 years old and equipped with an old transponder with unreliable data.

“We are downloading high-resolution data and verifying the data quality,” it said.

On its website, Yeti describes itself as a leading domestic carrier. Its fleet consists of six ATR 72-500s, including the one that crashed. It also owns Tara Air, and the two together offer the “widest network” in Nepal, the company says.

Reporting by Gopal Sharma; Additional reporting by Jamie Freed; Writing by Devjyot Ghoshal and Aditya Kalra; Editing by William Mallard and Susan Fenton

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U.S. airports rumble back to life after FAA computer outage

WASHINGTON, Jan 11 (Reuters) – U.S. flights were slowly beginning to resume departures and a ground stop was lifted after the Federal Aviation Administration (FAA) scrambled to fix a system outage overnight that had forced a halt to all U.S. departing flights.

The cause of the problem, which delayed thousands of flights in the United States, was unclear, but U.S. officials said they had so far found no evidence of a cyberattack.

“Normal air traffic operations are resuming gradually across the U.S. following an overnight outage to the Notice to Air Missions system that provides safety info to flight crews. The ground stop has been lifted. We continue to look into the cause of the initial problem” the FAA said in a Tweet.

More than 4,300 flights had been delayed and 700 canceled as officials said it will take hours to recover from the halt to flights.

The FAA had earlier ordered airlines to pause all domestic departures after its pilot alerting system crashed and the agency had to perform a hard reset around 2 a.m., officials said.

The FAA said shortly before 8:30 a.m. departures were resuming at Newark and Atlanta airports.

The FAA is expected to implement a ground delay program in order to address the backlog of flights halted for hours. Flights already in the air had been allowed to continue to their destinations during the ground stop.

U.S. President Joe Biden ordered the Transportation Department to investigate the outage and said the cause of the failure was unknown at this time. Asked if a cyber attack was behind the outage, Biden told reporters at the White House, “We don’t know.”

Transportation Secretary Pete Buttigieg pledged “an after-action process to determine root causes and recommend next steps.”

The FAA said it was working to restore the Notice to Air Missions system that alerts pilots to hazards and changes to airport facilities and procedures that had stopped processing updated information.

A total of 4,314 U.S. flights were delayed as of 9:04 a.m. ET, flight tracking website FlightAware showed. Another 737 were canceled.

MODERNIZATION NEEDED

United said it has resumed operations. The Chicago-based carrier, however, warned that customers might continue to see some delays and cancellations.

Shares of U.S. carriers fell in Wednesday’s premarket trading. Southwest Airlines (LUV.N) was down 2.4%, while Delta Air Lines Inc (DAL.N), United Airlines (UAL.O) and American Airlines (AAL.O) were down about 1%.

“America’s transportation network desperately needs significant upgrades … We call on federal policymakers to modernize our vital air travel infrastructure.” said Geoff Freeman, President and CEO of the U.S. Travel Association, a group representing U.S. airlines, hotels, car rental companies, and theme parks.

FAA’s system outage comes weeks after an operational meltdown at Southwest at the end of last year left thousands of passengers stranded.

A severe winter storm right before Christmas coupled with the Texas-based carrier’s dated technology led to over 16,000 flight cancellations last month.

The DOT, FAA’s parent agency, heavily criticized Southwest’s failures and pressured the airline to compensate passengers for missed flights and other related costs. There is no legal requirement that the FAA must compensate passengers for flight delays caused by agency computer issues.

ESSENTIAL INFORMATION

A NOTAM is a notice containing information essential to personnel concerned with flight operations, but not known far enough in advance to be publicized by other means.

Information can go up to 200 pages for long-haul international flights and may include items such as runway closures, bird hazard warnings and construction obstacles.

United Airlines (UAL.O) said it had temporarily delayed all domestic flights and would issue an update when it learned more from the FAA.

Germany’s Lufthansa and Air France both said they were continuing to operate flights to and from the United States, while the French airline said it was monitoring the situation.

The operator of Paris international airports – Paris Charles de Gaulle airport and Orly airport – said it expects delays to flights.

Austin-Bergstrom International Airport said on Twitter that ground stops across the country were causing delays. A ground stop is an air traffic control measure that slows or halts aircraft at a given airport.

In an earlier advisory on its website, the FAA said its NOTAM system had “failed”, although NOTAMs issued before the outage were still viewable. Earlier this month, a problem with a different airline computer control system delayed dozens of flights in Florida.

A total of 21,464 flights are scheduled to depart airports in the United States on Wednesday with a carrying capacity of nearly 2.9 million passengers, data from Cirium shows.

American Airlines has the most departures from U.S. airports with 4,819 flights scheduled, followed by Delta and Southwest, Cirium data showed.

Reporting by Doina Chiacu and David Shepardson in Washington, Abhijith Ganapavaram in Bengaluru, Jamie Freed in Sydney and Rajesh Kumar Singh in Chicago; Additional reporting by Nathan Gomes and Steve Holland in Washington
Writing by Shailesh Kuber and Alexander Smith Editing by Edmund Blair and Nick Zieminski

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Exclusive: Air India nears historic order for up to 500 jets

PARIS/NEW DELHI, Dec 11 (Reuters) – Air India is close to placing landmark orders for as many as 500 jetliners worth tens of billions of dollars from both Airbus and Boeing as it carves out an ambitious renaissance under the Tata Group conglomerate, industry sources said on Sunday.

The orders include as many as 400 narrow-body jets and 100 or more wide-bodies, including dozens of Airbus A350s and Boeing 787s and 777s, they said, speaking on condition of anonymity as finishing touches are placed on the mammoth deal in coming days.

Such a deal could top $100 billion dollars at list prices, including any options, and rank among the biggest by a single airline in volume terms, overshadowing a combined order for 460 Airbus and Boeing jets from American Airlines over a decade ago.

Even after significant expected discounts, the deal would be worth tens of billions of dollars and cap a volatile year for an industry whose jets are back in demand after the pandemic but which is facing mounting industrial and environmental pressures.

Airbus (AIR.PA) and Boeing declined to comment. Tata Group-owned Air India did not immediately respond to a request for comment.

The potential order comes days after Tata announced the merger of Air India with Vistara, a joint-venture with Singapore Airlines, to create a bigger full-service carrier and strengthen its presence in domestic and international skies.

That deal gives Tata a fleet of 218 aircraft, cementing Air India as the country’s largest international carrier and second largest in the domestic market after leader IndiGo (INGL.NS)

Air India, with its maharajah mascot, was once known for its lavishly decorated planes and stellar service but its reputation declined in the mid-2000s as financial troubles mounted.

Founded by JRD Tata in 1932, Air India was nationalised in 1953. Tata regained control in January and has since been working to revive its reputation as a world-class airline.

The planned order reflects a deliberate strategy to win back a solid share of traffic flows to and from India, which are currently dominated by foreign carriers such as Emirates.

Air India also wants to win a bigger share of regional international traffic and the domestic market, setting up a battle on both fronts with IndiGo.

Delivered over at least a decade, the 500 jets would both replace and expand fleets in the world’s fastest-growing airline market, while contributing to Prime Minister Narendra Modi’s goal of expanding the economy to $5 trillion.

But experts warn many hurdles stand in the way of Air India’s ambition to recover a strong global position, including frail domestic infrastructure, pilot shortages and the threat of tough competition with established Gulf and other carriers.

Reporting by Tim Hepher, Aditi Shah; Editing by Jane Merriman

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S&P, Nasdaq extend losing streaks amid rising recession worries

  • Apple down after Morgan Stanley cuts Dec shipment target
  • Tesla falls on production loss worries
  • Carvana records worst-ever daily drop
  • Indexes: Dow flat, S&P down 0.19%, Nasdaq 0.51%

Dec 7 (Reuters) – The S&P 500 and Nasdaq closed down on Wednesday after a choppy session on Wall Street, as investors struggled to grasp a clear direction as they weighed how the Federal Reserve’s monetary policy tightening might feed through into corporate America.

For the benchmark S&P 500 (.SPX), it was the fifth straight session that it has declined, while the Nasdaq (.IXIC) finished down for the fourth time in a row. The Dow snapped a two-session losing streak, as it ended unchanged from the previous day.

The Nasdaq was dragged down by a 1.4% drop in Apple Inc (AAPL.O) on Morgan Stanley’s iPhone shipment target cut and a 3.2% fall in Tesla Inc (.IXIC) over production loss worries.

Markets have also been rattled by downbeat comments from top executives at Goldman Sachs Group Inc (GS.N), JPMorgan Chase & Co (JPM.N) and Bank of America Corp (BAC.N) on Tuesday that a mild to more pronounced recession was likely ahead.

Fears that the U.S. central bank might stick to a longer rate-hike cycle have intensified recently in the wake of strong jobs and service-sector reports.

More economic data, including weekly jobless claims, producer price index and the University of Michigan’s consumer sentiment survey this week, will be on the watch list for clues on what to expect from the Fed on Dec. 14.

“It feels like we’re in this very uncertain period where investors are trying to ascertain what’s more important, as policymakers are slowing down on rates but the data is not playing ball,” said Craig Erlam, senior market analyst at OANDA.

“The market is trying to balance the headwinds and the tailwinds and this is causing some confusion.”

The CBOE volatility index (.VIX), also known as Wall Street’s fear gauge, closed at 22.68, its highest finish since Nov. 18.

Money market participants see a 91% chance that the Fed will increase its key benchmark rate by 50 basis points in December to 4.25%-4.50%, with rates peaking in May 2023 at 4.93%.

The S&P 500 (.SPX) lost 7.34 points, or 0.19%, to close at 3,933.92 and the Nasdaq Composite (.IXIC) dropped 56.34 points, or 0.51%, to finish at 10,958.55. The Dow Jones Industrial Average (.DJI) was flat, ending on 33,597.92.

Concerns about a steep rise in borrowing costs have boosted the dollar, but dented demand for risk assets such as equities this year. The S&P 500 is on track to snap a three-year winning streak.

Three of the 11 major S&P sector indexes were higher, with healthcare (.SPXHC) one of them. Technology (.SPLRCT) and communication services (.SPLRCL), down 0.5 and 0.9% respectively, were the worst performers.

Energy (.SPNY) fell for its fifth straight session. The sector’s performance was weighed by U.S. crude prices falling again, settling at the lowest level in 2022, as concerns over the outlook for global growth wiped out all of the gains since Russia’s invasion of Ukraine exacerbated the worst global energy supply crisis in decades.

Carvana Co (CVNA.N) had its worst day as a public company, losing nearly half its stock value, after Wedbush downgraded the used-car retailer’s stock to “underperform” from “neutral” and slashed its price target to $1.

Meanwhile, United Airlines (UAL.O) traded 4.1% lower. Unions representing various workers at the airline said they would join forces on contract negotiations.

Travel-related stocks were generally down. Delta Air Lines (DAL.N) and American Airlines Group (AAL.O) were 4.4% and 5.4% lower respectively, with cruise line operators Carnival Corp (CCL.N) and Norwegian Cruise Line Holdings (NCLH.N) and accommodation-linked Airbnb Inc (ABNB.O) and Booking Holdings (BKNG.O) all falling between 1.7% and 4.4%.

Volume on U.S. exchanges was 10.29 billion shares, compared with the 10.98 billion average for the full session over the last 20 trading days.

The S&P 500 posted seven new 52-week highs and seven new lows; the Nasdaq Composite recorded 61 new highs and 307 new lows.

Reporting by Shubham Batra, Ankika Biswas, Johann M Cherian and Shashwat Chauhan in Bengaluru and David French in New York; Editing by Vinay Dwivedi, Shounak Dasgupta and Lisa Shumaker

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U.S. Army awards Black Hawk replacement contract to Textron’s Bell

WASHINGTON, Dec 5 (Reuters) – The U.S. Army on Monday awarded the contract for its next-generation helicopter to Textron Inc’s (TXT.N) Bell unit, ending a years-long competition for the technology that will replace the Black Hawk utility helicopter.

The Army’s “Future Vertical Lift” competition aimed at finding a replacement as the Army looks to retire more than 2,000 medium-class UH-60 Black Hawk utility helicopters built by Sikorsky since the 1970s.

The Army was looking for an aircraft capable of moving about a dozen troops 400 nautical miles. “We are ready to equip soldiers with the speed and range they need to compete and win using the most mature, reliable, and affordable high-performance long-range assault weapon system,” Mitch Snyder, CEO of Bell said in a statement.

The Army said the initial award was for $232 million, but the first batch of helicopters in low rate production will be worth $7.1 billion. Ultimately, the contract is potentially worth around $70 billion – over decades – depending on how many the Army and U.S. allies order, the Army told reporters on Monday evening.

“The thoughtful and disciplined execution of the FLRAA (Future Long Range Assault Aircraft) program strategy will deliver the transformational capabilities we need to support the Joint force, strengthen deterrence and win in multi-domain operations,” said Doug Bush, assistant secretary of the army for acquisition, logistics, and technology.

In the FLARAA competition was Bell’s V-280 “Valor,” a tiltrotor aircraft that has reached speeds in excess of 340 mph (547 km) according to the Army. It beat out the entrant from Lockheed Martin’s (LMT.N) Sikorsky and Boeing Co’s (BA.N) SB-1 “Defiant” which has two coaxial rotors and a single pusher propeller and has reached speeds of 265 mph, according to the Army.

Often defense procurement awards of this magnitude are protested. Bush said “we planned for that contingency, but that is completely up to the vendor.” It is likely that if a protest were to be filed it would be in several weeks once administrative meetings occurred.

Textron’s shares rose about 8.5% in trading after the bell on the news.

Reporting by Mike Stone and Idrees Ali; Editing by Marguerita Choy and Stephen Coates

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Idrees Ali

Thomson Reuters

National security correspondent focusing on the Pentagon in Washington D.C. Reports on U.S. military activity and operations throughout the world and the impact that they have. Has reported from over two dozen countries to include Iraq, Afghanistan, and much of the Middle East, Asia and Europe. From Karachi, Pakistan.

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France, Germany, Spain agree on moving on with FCAS warplane development – Berlin

BERLIN/PARIS, Nov 18 (Reuters) – France, Germany and Spain have reached agreement on starting the next phase of development of a new fighter jet dubbed FCAS, Europe’s largest defence project at an estimated cost of more than 100 billion euros($103.4 billion), the German government said on Friday.

The Defence Ministry said in a statement that an industrial agreement was achieved after intense negotiations, confirming an earlier Reuters story saying the three countries and their respective industries had struck a deal.

The ministry said it was agreed at the highest government level that a cooperative approach on an equal footing would be pursued in the project, which is under overall French responsibility.

The Spanish Defence Ministry said Madrid would spend 2.5 billion euros ($2.58 billion) on the project, of which 525 million euros ($542 million) would be paid in 2023. The ministry said that the cabinet agreed to this expenditure but did not give other details.

“The political agreement on FCAS is a great step and – especially in these times – an important sign of the excellent Franco-German-Spanish cooperation,” German Defence Minister Christine Lambrecht said.

“It strengthens Europe’s military capabilities and secures important know-how not only for our, but also for the European industry.”

Previously, sources had said that the next development phase for the Future Combat Air System (FCAS) was expected to cost about 3.5 billion euros, to be shared equally by the three countries.

France’s Dassault (AM.PA), Airbus (AIR.PA) and Indra (IDR.MC) – the latter two representing Germany and Spain, respectively – are involved in the scheme to start replacing French Rafale and German and Spanish Eurofighters from 2040.

“Now, a number of formal steps in the respective countries have to be taken in order to allow a speedy contract signature which we will have to adhere to,” Airbus said in e-mailed comments.

French President Emmanuel Macron and then German Chancellor Angela Merkel first announced plans in July 2017 for FCAS, which will include a fighter jet and a range of associated weapons, including drones.

Lately, the project – originally meant to unify Europeans after the migration crisis and Britain’s decision to leave the European Union – has been a source of tension between the two countries.

Last month, Macron cancelled a joint Franco-German ministerial meeting over disagreements with Berlin on a wide range of issues including defence and energy projects.

Both sides had been struggling for more than a year to agree the next stage of FCAS’s development, although the French and German government broadly agreed on the project.

Some sources saw the blame lying with Dassault, as the company had refused to budge in a long-running row over intellectual property rights.

Other sources blamed Airbus for pushing for a bigger workshare of the Dassault-led project, insisting it should be given “equal footing” with the French company.

($1 = 0.9675 euros)

Writing by Sabine Siebold; Editing by Kirsti Knolle, Christoph Steitz, Louise Heavens and Emelia Sithole-Matarise

Our Standards: The Thomson Reuters Trust Principles.

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China Southern cancels planned return of Boeing 737 MAX flights

Oct 30 (Reuters) – China Southern Airlines Co Ltd (600029.SS) has cancelled plans for two Boeing Co (BA.N) 737 MAX flights on Sunday that would have represented the model’s return to passenger flying in China after more than three years, according to the airline’s website.

The 737 MAX was grounded in March 2019 following fatal crashes in Indonesia and Ethiopia but has returned to service around the world with the exception of China and Russia after modifications to the aircraft and pilot training.

China Southern had scheduled flights from its Guangzhou hub to Zhengzhou and Wuhan, Reuters reported on Thursday.

The airline’s website and flight tracking website FlightRadar24 showed the flights had been cancelled. China Southern did not respond immediately to a request for comment.

On Wednesday, Boeing said it had another 138 planes manufactured for Chinese carriers that were in the United States waiting to be delivered, though it had begun remarketing the jets to other carriers given there were no concrete signs that Chinese airlines would accept the planes in the near term.

Earlier this month, a 737 MAX flight by MIAT Mongolian Airlines landed in Guangzhou, marking the first commercial flight by the model in China since 2019.

Reporting by Jamie Freed in Sydney
Editing by Chris Reese

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