Tag Archives: INDG

Russian cosmonauts give video tour of module that jolted space station

MOSCOW, Aug 1 (Reuters) – Russian cosmonauts have given a video tour of the interior of a research module which briefly threw the International Space Station out of control on Thursday a few hours after docking.

Russian space officials said a software glitch and possible lapse in human attention were to blame for the mishap that caused the entire space station to pitch out of its normal flight position 250 miles above the Earth with seven crew members aboard. read more

Footage published late on Saturday showed cosmonauts Oleg Novitsky and Pyotr Dubrov opening the hatches and giving a short tour inside the Nauka module, the Russian space agency Roscosmos said.

According to NASA’s account of Thursday’s incident, the mission flight director immediately declared a spaceflight emergency as engineers on the ground struggled to restore stability to the sprawling research satellite.

NASA and Roscosmos each said that the seven crew members – two Russian cosmonauts, three U.S. astronauts and two others from Japan and France – were never in any immediate danger.

Roscosmos, which this week spoke of plans to launch another Russian module to the station in November, has suffered a series of mishaps and corruption scandals, including during the construction of the Vostochny Cosmodrome in the country’s far east where contractors were accused of embezzling state funds.

Writing by Alexander Marrow; Editing by Giles Elgood

Our Standards: The Thomson Reuters Trust Principles.

Read original article here

Russia reports pressure drop in space station service module

The Nauka (Science) Multipurpose Laboratory Module is seen during its docking to the International Space Station (ISS) on July 29, 2021 in this still image taken from video. Image taken July 29, 2021. Roscosmos/Handout via REUTERS

MOSCOW, July 31 (Reuters) – The head of Russia’s Roscosmos space agency said on Saturday that pressure in a Russian service module on the International Space Station had dropped as a result of an air leak.

Pressure had fallen over a two-week period before a Russian research module, the Nauka, threw the station out of control when its engines fired shortly after docking on Thursday, but Roscosmos head Dmitry Rogozin said the two events were not linked.

The fall in pressure was a result of a known minor air leak in an isolated transfer chamber of the Zvezda service module and pressure will be raised in the next 24 hours, Roscosmos said in a statement.

“It was an expected and not a ‘sharp’ drop in the still problematic Zvezda and it is not linked to the research module,” Rogozin tweeted in response to media reports.

Pressure in the service module dropped on July 29, the day the Nauka research module docked, to about one third of its level on July 14 but would be increased, Rogozin tweeted.

The air leak in the Zvezda module, which provides living quarters for crew members and life support systems, was detected last year. It poses no danger to the crew but persists despite attempts to fix it by sealing cracks.

Russia said on Friday that a software glitch, and possible lapse in human attention, were to blame for an emergency caused by inadvertently reignited jet thrusters of the Nauka research module. read more

On Saturday, Russian crew entered the research module after the air was tested and cleaned, Rogozin tweeted.

Russia held a scientific council meeting on Saturday to discuss the future use of the Russian segment of the space station, which was sent into orbit in 1998 and is supposed to work until 2028.

“The chief constructors council noted after considering the current condition of the Russian ISS segment that the use of the Russian ISS segment after 2024 creates additional risks due to the ageing of equipment,” Roscosmos said.

Reporting by Maria Tsvetkova; Editing by Giles Elgood

Our Standards: The Thomson Reuters Trust Principles.

Read original article here

SpaceX lands NASA launch contract for mission to Jupiter’s moon Europa

SpaceX’s Elon Musk gives an update on the company’s Mars rocket Starship in Boca Chica, Texas U.S. September 28, 2019. REUTERS/Callaghan O’Hare

LOS ANGELES, July 23 (Reuters) – Elon Musk’s private rocket company SpaceX was awarded a $178 million launch services contract for NASA’s first mission focusing on Jupiter’s icy moon Europa and whether it may host conditions suitable for life, the space agency said on Friday.

The Europa Clipper mission is due for blastoff in October 2024 on a Falcon Heavy rocket owned by Musk’s company, Space Exploration Technologies Corp, from NASA’s Kennedy Space Center in Florida, NASA said in a statement posted online.

The contract marked NASA’s latest vote of confidence in the Hawthorne, California-based company, which has carried several cargo payloads and astronauts to the International Space Station for NASA in recent years.

In April, SpaceX was awarded a $2.9 billion contract to build the lunar lander spacecraft for the planned Artemis program that would carry NASA astronauts back to the moon for the first time since 1972.

But that contract was suspended after two rival space companies, Jeff Bezos’s Blue Origin and defense contractor Dynetics Inc, protested against the SpaceX selection.

The company’s partly reusable 23-story Falcon Heavy, currently the most powerful operational space launch vehicle in the world, flew its first commercial payload into orbit in 2019.

NASA did not say what other companies may have bid on the Europa Clipper launch contract.

The probe is to conduct a detailed survey of the ice-covered Jovian satellite, which is a bit smaller than Earth’s moon and is a leading candidate in the search for life elsewhere in the solar system.

A bend in Europa’s magnetic field observed by NASA’s Galileo spacecraft in 1997 appeared to have been caused by a geyser gushing through the moon’s frozen crust from a vast subsurface ocean, researchers concluded in 2018. Those findings supported other evidence of Europa plumes.

Among the Clipper mission’s objectives are to produce high-resolution images of Europa’s surface, determine its composition, look for signs of geologic activity, measure the thickness of its icy shell and determine the depth and salinity of its ocean, NASA said.

Reporting by Steve Gorman in Los Angeles; Editing by Edmund Klamann

Our Standards: The Thomson Reuters Trust Principles.

Read original article here

Walmart’s Flipkart says Indian probe shouldn’t treat it the same as Amazon

A mobile phone showing an image of Indian online retailer Flipkart is seen in front of a Walmart Inc logo displayed in this illustration picture taken July 14, 2021. REUTERS/Florence Lo/Illustration

NEW DELHI, July 18 (Reuters) – Walmart’s (WMT.N) Flipkart should not be treated the same as rival Amazon (AMZN.O) in an Indian antitrust probe as the evidence against the two firms was “qualitatively different”, Flipkart argued in a court filing seen by Reuters.

Both Amazon and Flipkart have challenged the Competition Commission of India (CCI) in court as they seek revocation of an Indian court’s June decision to allow an antitrust probe against them to continue. The companies deny any wrongdoing. read more

India’s government has called the U.S. firms arrogant and accused them of using legal routes to stall the investigation.

In final submissions made to a court in southern India’s Karnataka state, the Walmart unit argued that CCI and the court “confuse the facts” between the case of Amazon and Flipkart, and overlooked that they were “fierce competitors”.

To back its arguments, it said that a business agreement examined by the CCI before ordering its probe was only between Amazon and its sellers, and there was no such evidence against the Walmart unit.

“The allegations and the evidence before the CCI against the Appellant were qualitatively different from those relating to Amazon … The CCI should have independently examined the case against each of the two platforms,” Flipkart said in its 46-page submission, which was not public.

The Indian court is likely to pass a written order on the appeals in coming days.

Flipkart and Amazon did not immediately respond to a request for comment. The CCI didn’t respond outside regular business hours on Sunday.

For years, Amazon and Flipkart have denied allegations from brick-and-mortar retailers about circumventing Indian law by creating complex business structures.

Trade minister Piyush Goyal last month lashed out on U.S. e-commerce giants for filing legal challenges and failing to comply with the CCI’s probe, saying “if they have nothing to hide … why don’t they respond to the CCI?”

In February, a Reuters investigation based on internal Amazon documents showed the U.S. firm for years had helped a small number of sellers prosper on its platform in India, using them to bypass foreign investment laws. Amazon also has indirect equity stakes in two of its big online sellers, Cloudtail and Appario, which get “subsidized fees”, Reuters reported.

The Walmart unit argued in its submission that “unlike in the case of Amazon”, there were no structural links of any kind between Flipkart and its sellers.

Flipkart “ought to have been treated differently from Amazon,” it said.

Amazon and Flipkart are leading players in an e-retail market India forecasts will be worth $200 billion by 2026.

Reporting by Aditya Kalra in New Delhi and Abhirup Roy in Mumbai;

Our Standards: The Thomson Reuters Trust Principles.

Read original article here

Taiwan’s Foxconn, TSMC confirm $350 mln COVID-19 vaccine deal

Syringes are seen in front of a displayed Biontech logo in this illustration taken November 10, 2020. REUTERS/Dado Ruvic/Illustration/File Photo

TAIPEI, July 12 (Reuters) – Taiwan’s Foxconn (2317.TW) and TSMC (2330.TW) said on Monday they had reached deals to buy 10 million doses of Germany’s BioNTech SE’s (22UAy.DE) COVID-19 vaccine, putting the total cost of the highly politicised deal at around $350 million.

Taiwan’s government has tried for months to buy the vaccine directly from BioNTech and has blamed China, which claims the self-ruled island as its own territory, for nixing an agreement the two sides were due to sign earlier this year. China denies the accusations.

Last month, facing public pressure about the slow pace of Taiwan’s inoculation programme, the government agreed to allow Foxconn’s founder Terry Gou, as well as Taiwan Semiconductor Manufacturing Co (TSMC), to negotiate on its behalf for the vaccines.

BioNTech’s Chinese sales agent Shanghai Fosun Pharmaceutical Group Co Ltd (600196.SS) said on Sunday that an agreement had been signed, though no details of a delivery timeframe have been revealed yet.

Gou wrote on his Facebook page that he was “gratified” the deal had been completed, which will see Foxconn and TSMC each buy 5 million doses, to be donated to the government for distribution.

“But we can’t relax, because we will continue to work hard to push for the delivery time and quantity,” he said, adding the vaccines will come directly from Germany.

“However, this batch of vaccines delivered directly from the German factory I believe will help Taiwanese society to increase confidence and offer respite in the face of the epidemic.”

TSMC and Foxconn are major Apple Inc (AAPL.O) suppliers.

Taiwan’s government said it would comment later on Monday.

Gou said Beijing did not interfere in the talks.

“During the negotiation period after my donation was proposed, there was no guidance or interference from the Beijing authorities in the mainland on the vaccine procurement process.”

A person familiar with the negotiations said the first batch of vaccine is expected in September at the earliest, but it was not immediately clear how many doses could be delivered.

The German firm has yet to comment, and Fosun deleted an earlier statement from its WeChat account citing BioNTech Chief Executive Ugur Sahin as saying the company was “very grateful” to be able to supply the vaccine to Taiwan.

Fosun did not immediately respond to a request for comment on why those comments were removed.

The BioNTech vaccine drama has transfixed Taiwan and dominated headlines. A major Taiwanese Buddhist group, the Tzu Chi Foundation, is also trying to buy the shots.

Taiwan has millions of vaccines on order, mainly from AstraZeneca Plc (AZN.L) and Moderna Inc (MRNA.O), while the United States and Japan have together donated almost five million doses to the island to help speed up vaccinations.

The person familiar with the talks said the involvement of TSMC and the unconditional U.S. and Japanese vaccine donations had created a global environment that was favourable to Taiwan and made it hard for China to obstruct the deal.

Around one-tenth of Taiwan’s 23.5 million people have received at least one of the two-shot regimen, though Taiwan’s own relatively small domestic coronavirus outbreak is now largely under control.

Reporting by Ben Blanchard and Yimou Lee; Additional reporting by Beijing newsroom; Editing by Muralikumar Anantharaman and Kim Coghill

Our Standards: The Thomson Reuters Trust Principles.

Read original article here

TSMC, Foxconn say they are in process of signing deal for BioNTech COVID-19 vaccines

Syringes with the Pfizer-BioNTech vaccines to be administered against the coronavirus disease (COVID-19) lie on a tray during a program without an appointment in Sant Vicenc de Casteller, north of Barcelona, Spain, July 6, 2021. REUTERS/ Albert Gea

TAIPEI, July 11 (Reuters) – Taiwan’s TSMC (2330.TW)and Foxconn said on Sunday they were in the middle of the contract signing process to buy COVID-19 vaccines from Germany’s BioNTech SE (22UAy.DE), part of a drawn out and highly politicised process for Taiwan to access the shot.

Taiwan’s government has tried for months to buy the vaccine directly from BioNTech and has blamed China, which claims the self-ruled island as its own territory, for nixing a deal the two sides were due to sign earlier this year. China denies the accusations.

Last month, facing public pressure about the slow pace of Taiwan’s inoculation programme, the government agreed to allow Terry Gou, the billionaire founder of Taiwan’s Foxconn (2317.TW), as well as Taiwan Semiconductor Manufacturing Co (TSMC) to negotiate on its behalf for the vaccines, which would be donated to Taiwan’s government for distribution.

“There are multiple parties. We are in the middle of the contract signing process. We will make announcements once the process is completed,” TSMC said a statement.

Foxconn used almost exactly the same wording in a separate statement. Neither elaborated.

Both companies are major Apple Inc (AAPL.O) suppliers.

BioNTech and Fosun did not immediately respond to requests for comment.

Gou’s spokesperson said: “When there is further news, we will formally explain it to the outside world”. She gave no details.

Speaking to reporters on Sunday, Premier Su Tseng-chang would only say that talks for the vaccine were ongoing.

“Once there is an definite outcome, we’ll naturally report it to everyone.”

A source briefed on the matter told Reuters that contract talks were “not yet 100% complete”, while another source said while they were close to finalising the deal, uncertainties remained.

“It has become increasingly clear that it is not the Taiwan side who is complicating the signing of the contract,” the second source said, referring to extra “obstacles” set up by Beijing.

China’s Taiwan Affairs Office did not answer calls seeking comment outside of business hours on Sunday.

FOSUN CONTRACT

Gou and TSMC this month reached an initial agreement with a subsidiary of Shanghai Fosun Pharmaceutical Group Co Ltd (600196.SS), which has a contract with BioNTech to sell the COVID-19 vaccines in China, Hong Kong, Macau and Taiwan, sources told Reuters previously. read more

Both Gou and TSMC are seeking 5 million doses each.

The BioNTech vaccine drama has transfixed Taiwan and dominated headlines. A major Taiwanese Buddhist group, the Tzu Chi Foundation, is also trying to buy the shots, which were developed jointly with Pfizer (PFE.N). read more

China’s government has repeatedly said that if Taiwan wants the vaccine, it has to respect commercial rules and do it through Fosun.

Germany’s government has also been involved, saying it has been helping in the direct talks between Taiwan and BioNTech.

Taiwan has millions of vaccines on order, mainly from AstraZeneca Plc (AZN.L) and Moderna Inc (MRNA.O), while the United States and Japan have together donated almost five million doses to the island to help speed up vaccinations.

Around one-tenth of Taiwan’s 23.5 million people have received at least one of the two-shot regimen, though Taiwan’s own relatively small domestic coronavirus outbreak is now largely under control.

Reporting by Ben Blanchard and Yimou Lee; Additional reporting by Taipei newsroom, and Andrew Galbraith in Shanghai; Editing by Lincoln Feast and William Mallard

Our Standards: The Thomson Reuters Trust Principles.

Read original article here

Billionaire Branson set to fly to space aboard Virgin Galactic rocket plane

Sir Richard Branson stands on the floor of the New York Stock Exchange (NYSE) ahead of Virgin Galactic (SPCE) trading in New York, U.S., October 28, 2019. REUTERS/Brendan McDermid

July 9 (Reuters) – Decades after burnishing his reputation as a wealthy daredevil mogul in a series of boating and hot-air balloon expeditions, Richard Branson is poised to promote his burgeoning astro-tourism venture by launching himself to the final frontier.

Branson’s Virgin Galactic Holding Inc (SPCE.N) is due on Sunday to send the company’s passenger rocket plane, the VSS Unity, on its first fully crewed test flight to the edge of space, with the British billionaire founder among the six individuals strapping in for the ride.

The gleaming white spaceplane will be borne by a twin-fuselage carrier jet dubbed VMS Eve (named for Branson’s mother) to an altitude of 50,000 feet, where Unity will be released and soar by rocket power in an almost vertical climb through the outer fringe of Earth’s atmosphere.

At the apex of its flight some 55 miles (89 km) above the New Mexico desert, the crew will experience a few minutes of weightlessness before making a gliding descent back to Earth.

If all goes according to plan, the flight will last about 90 minutes and end where it began – on a runway at Spaceport America near the aptly named town of Truth or Consequences.

Virgin’s Unity 22 mission marks the 22nd test flight of the spacecraft, and the company’s fourth crewed mission beyond Earth’s atmosphere.

But it will be the first to carry a full complement of space travelers – two pilots and four “mission specialists,” Branson among them.

MILESTONE AND PUBLICITY

Although the mission is seen as a potential milestone in helping transform citizen rocket travel into a mainstream commercial venture, spaceflight remains an inherently hazardous endeavor.

An earlier prototype of the Virgin Galactic rocket plane crashed during a test flight over California’s Mojave Desert in 2014, killing one pilot and seriously injuring another.

If successful, Sunday’s flight will also give Branson bragging rights to besting rival Jeff Bezos and his space company, Blue Origin, in what has been popularized as a “billionaire space race.” Bezos, founder of online retail giant Amazon.com, is slated to fly aboard Blue Origin’s suborbital rocketship, the New Shepard, later this month.

Branson’s official job on his flight is to “evaluate the private astronaut experience,” and his observations will be used to “enhance the journey for all future astronaut customers,” according to Virgin’s press materials.

But Marco Caceres, a senior space analyst for the Virginia-based consulting firm Teal Group, said the Branson and Bezos ride-alongs were each “a bit of a publicity stunt.”

“If they succeed, their ventures will be taken more seriously,” Caceres said. “There’s plenty of multimillionaires in the world that would like to go up on an adventure, so long as they see it as relatively safe.”

Virgin Galactic and Blue Origin, along with fellow billionaire entrepreneur Elon Musk’s SpaceX, are competing head-to-head in the emerging business of space tourism, though Musk has a big head start.

SpaceX, which plans to send its first all-civilian crew (without Musk) into orbit in September, has already launched numerous cargo payloads and astronauts to the International Space Station.

Branson, 70, insists there is plenty of demand from wealthy would-be citizen astronauts to go around, and that he had no intention of trying to upstage Bezos.

‘NOT A RACE’

“It’s honestly not a race,” Branson told Reuters in an interview earlier this week. “If it’s a race, it’s a race to produce wonderful spaceships that can make many more people be able to access space. And I think that’s both of our aims.”

The spaceplane’s two pilots, Dave Mackay and Michael Masucci, will control the ignition and shutoff of the ship’s rocket engine, and activate the vehicle’s “feathered” tail maneuver for re-entry.

The three other mission specialists are Beth Moses, the company’s chief astronaut instructor; Virgin Galactic’s lead operations engineer Colin Bennett; and Sirisha Bandla, a research operations and government affairs vice president.

The Virgin brand, including Branson’s airline and former record label, has long been associated with exploits of derring-do by its flamboyant founder. Branson set a new record for the fastest boat crossing of the Atlantic in 1986, a year after his initial attempt ended with a Royal Air Force helicopter rescue when his vessel capsized.

In 1987 he made a record-breaking Atlantic crossing by hot-air balloon, though again he had to be rescued from the sea. He went on to break at least two other air-balloon speed records but failed to complete any of three bids to circumnavigate the globe by balloon.

As for Sunday’s flight, Branson said this week that he is excited, “and I really don’t think there’s anything there to be scared about.”

Assuming the mission goes well, Virgin has said it plans two further test flights of the spaceplane before beginning commercial service next year.

The company has said it has received more than 600 flight reservations, priced at around $250,000 per ticket, but hopes eventually to slash the cost of each seat to $40,000.

Reporting by Steve Gorman in Los Angeles; Additional reporting by Kevin Fogarty in Washington; Editing by Daniel Wallis

Our Standards: The Thomson Reuters Trust Principles.

Read original article here

Nine found dead in Swedish airplane crash -police

STOCKHOLM, July 8 (Reuters) – All nine people onboard were found dead in the crash of an airplane outside Orebro, Sweden, on Thursday, Swedish police said.

“It’s a very severe accident,” Swedish police said on their website. “Everyone on board the crashed plane has died.”

Police said the plane, a DHC-2 Turbo Beaver, was carrying eight skydivers and one pilot. It crashed close to the runway at Orebro airport shortly after takeoff and caught fire at impact.

“It is with great sadness and sorrow that I have received the tragic information about the plane crash in Orebro,” Prime Minister Stefan Lofven wrote on Twitter. “My thoughts are with the victims, their families and loved ones in this very difficult time.”

In a similar accident, nine people died in northern Sweden in 2019 when a plane carrying skydivers crashed shortly after takeoff. The crash investigation showed the plane had been improperly loaded.

Reporting by Johan Ahlander
Editing by Howard Goller and Chris Reese

Our Standards: The Thomson Reuters Trust Principles.

Read original article here

Chinese researchers propose deflecting ‘Armageddon’ asteroids with rockets

A model of the Long March-5 Y5 rocket from China’s lunar exploration program Chang’e-5 Mission is displayed at an exhibition inside the National Museum in Beijing, China March 3, 2021. REUTERS/Tingshu Wang/File Photo

BEIJING, July 7 (Reuters) – Chinese researchers want to send more than 20 of China’s largest rockets to practice turning away a sizable asteroid – a technique that may eventually be crucial if a killer rock is on a collision course with Earth.

The idea is more than science fiction. Sometime between late 2021 to early 2022, the United States will launch a robotic spacecraft to intercept two asteroids relatively close to Earth.

When it arrives a year later, the NASA spacecraft will crash-land on the smaller of the two rocky bodies to see how much the asteroid’s trajectory changes. It will be humanity’s first try at changing the course of a celestial body.

At China’s National Space Science Center, researchers found in simulations that 23 Long March 5 rockets hitting simultaneously could deflect a large asteroid from its original path by a distance 1.4 times the Earth’s radius.

Their calculations are based on an asteroid dubbed Bennu, orbiting the sun, which is as wide as the Empire State Building is tall. It belongs to a class of rocks with the potential to cause regional or continental damage. Asteroids spanning more than 1 km would have global consequences.

The science center cited a recently published study in Icarus, a journal on planetary science.

Long March 5 rockets are key to China’s near-term space ambitions – from delivering space station modules to launching probes to the Moon and Mars. China has successfully launched six Long March 5 rockets since 2016, with the last one causing some safety concerns as its remnants reentered the atmosphere in May.

“The proposal of keeping the upper stage of the launch rocket to a guiding spacecraft, making one large ‘kinetic impactor’ to deflect an asteroid, is a rather nice concept,” said Professor Alan Fitzsimmons from the Astrophysics Research Centre at Queen’s University Belfast.

“By increasing the mass hitting the asteroid, simple physics should ensure a much greater effect,” Fitzsimmons told Reuters, although, he added, the actual operation of such a mission needs to be studied in greater detail.

Current estimates show there is roughly a 1% chance a 100-metre-wide asteroid would strike Earth in the next 100 years, said Professor Gareth Collins at Imperial College London.

“Something the size of Bennu colliding is about 10 times less likely,” Collins said.

Altering an asteroid’s path presents a lower risk than blasting the rock with nuclear explosives, which may create smaller fragments without changing their course, scientists say.

Reporting by Ryan Woo; Additional reporting by Liangping Gao. Editing by Gerry Doyle

Our Standards: The Thomson Reuters Trust Principles.

Read original article here

EXCLUSIVE New Saudi airline plan takes aim at Emirates, Qatar Airways

DUBAI, July 2 (Reuters) – Saudi Arabia plans to target international transit passenger traffic with its new national airline, going head-to-head with Gulf giants Emirates and Qatar Airways and opening up a new front in simmering regional competition.

Crown Prince Mohammed bin Salman, who is pushing economic diversification to wean Saudi Arabia off oil revenues and create jobs, announced a transportation and logistics drive on Tuesday aimed at making the kingdom the fifth-biggest air transit hub.

Two people familiar with the matter said the new airline would boost international routes and echo existing Gulf carriers by carrying people from one country to another via connections in the kingdom, known in the industry as sixth-freedom traffic.

The transport ministry, which has not released details of the plans, did not respond to a Reuters request for comment.

The strategy marks a shift for Saudi Arabia whose other airlines, like state-owned Saudia and its low cost subsidiary flyadeal, mostly operate domestic services and point-to-point flights to and from the country of 35 million people.

The Saudi expansion threatens to sharpen a battle for passengers at a time when travel has been hit by the coronavirus pandemic. Long-haul flights like those operated by Emirates and Qatar Airways are forecast to take the longest to recover.

Riyadh has already moved to compete with the UAE, the region’s business, trade and tourism hub. The Saudi government has said that from 2024 it would stop giving contracts to firms that do not set up regional headquarters in the kingdom.

“Commercial competition in the aviation industry has always been fierce, and regional competition is heating up. Some turbulence in regional relations is on the horizon,” said Robert Mogielnicki, resident scholar at the Arab Gulf States Institute.

Dubai, the world’s largest international air travel hub, has announced a five-year plan to grow air and shipping routes by 50% and double tourism capacity over the next two decades.

Riyadh has already moved to compete with the UAE, the region’s business, trade and tourism hub. The Saudi government has said that starting 2024 it would stop giving contracts to firms that do not set up regional headquarters in the kingdom.

Saudi Crown Prince Mohammed bin Salman attends a session of the Shura Council in Riyadh, Saudi Arabia, November 20, 2019. Bandar Algaloud/Courtesy of Saudi Royal Court/Handout via REUTERS

Read More

Prince Mohammed is trying to lure foreign capital to create new industries including tourism, with ambitions to increase overall visitors to 100 million by 2030 from 40 million in 2019.

“Saudi Arabia has the ability to push forward with its aviation and tourism strategy when others will be retreating and retracting,” aviation consultant Brendan Sobie said.

“It is a risky strategy, but also sensible given its position and overall diversification objective.”

TOURISM PUSH

However, any airline requires substantial start-up capital and experts warn that if Saudi Arabia’s ambition is to compete on transit flights it may have to contend with years of losses.

Saudi Arabia’s large population generates direct traffic that could cushion losses as a new airline targets international transit traffic, aviation consultant John Strickland said.

Emirates reported a record $5.5 billion annual loss last month with the pandemic forcing Dubai to step in with $3.1 billion in state support.

Etihad Airways has scaled back its ambitions after it spent billions of dollars to ultimately unsuccessfully compete in building a major hub in United Arab Emirates capital Abu Dhabi.

People familiar with the matter said the new airline could be based in the capital Riyadh, and that sovereign wealth fund PIF is helping set it up.

PIF did not respond to a request for comment.

Saudi Arabia is developing non-religious tourism with mega projects backed by PIF. It has launched social reforms to open up the country, the birthplace of Islam, including allowing public entertainment.

Reporting by Alexander Cornwell; Editing by Tim Hepher and Alexander Smith

Our Standards: The Thomson Reuters Trust Principles.

Read original article here