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Business

Adani’s $2.5 billion share sale faces crucial day after rout

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NEW DELHI, Jan 29 (Reuters) – Gautam Adani faces a critical day on Monday with his flagship company’s $2.5 billion share sale’s second day of bidding overshadowed by a $48 billion rout in the Indian billionaire’s stocks which was sparked by a U.S. short seller’s report.

Seven listed companies belonging to the Adani conglomerate, which is led by Asia’s richest man, saw sharp falls in their values after Hindenburg Research report last week flagged concerns about high debt levels and the use of tax havens.

Adani Group issued a detailed response late on Sunday, saying it complies with all local laws and had made necessary regulatory disclosures. It has called the report baseless and said it was considering taking action against Hindenburg.

For 60-year-old Adani, the stock market meltdown has been a dramatic setback for a school-dropout who rose swiftly in recent years to become the world’s third richest man, before slipping to rank seventh on the Forbes list last week.

The secondary share sale by Adani Enterprises (ADEL.NS) opened for retail and institutional investors on Friday, but saw only 1% subscriptions as the company’s stock fell 11% below the minimum offer price.

Adani Group told Reuters in a statement on Saturday that the sale remains on schedule at the planned issue price, even as sources said bankers on the country’s largest secondary share sale were considering extending the timeline beyond Jan. 31, or tweaking the price due to the fall in its share price.

“It is important for the Adani Group to ensure the share sale goes through — If they stick to the price and don’t reduce it, and the stock doesn’t bounce back, nobody will be keen to apply,” said Mumbai-based market analyst, Ambareesh Baliga, who advises various family offices.

“Monday’s trade will be critical.”

In a separate statement on Sunday, Adani Group’s chief financial officer Jugeshinder Singh said it is focused on the share sale and is confident it will sail through. He also said its anchor investors have shown faith and remain invested.

‘FREE FALL’

Some Adani Group stocks have surged more than 1,500% in the last three years amid aggressive expansion in businesses that include ports, power generation, airports and mining.

Adani Enterprises has set a floor price of 3,112 rupees per share and a cap of 3,276 rupees for the secondary share sale – well above their close of 2,761.45 rupees on Friday.

Arun Kejriwal, founder of Kejriwal Research & Investment, said investors were likely to wait until the last day of the share sale to see if the price band is tweaked.

“I expect that the free fall seen of Friday may abate but recovery back towards a level prior to this fall may be difficult,” he added.

Indian regulations say the share offering must receive minimum subscription of 90%, and if it does not the issuer must refund the entire amount.

Maybank Securities and Abu Dhabi Investment Authority are among investors who bid for the anchor portion of the issue.

On Saturday, index provider MSCI said it was seeking feedback from market participants on Adani and was monitoring the factors that “may impact the eligibility of those relevant securities” in MSCI indexes.

There are at least six Adani Group companies in the MSCI India Index, with a cumulative weight of 4.31%.

Reporting by Aditya Kalra, Ira Dugal, Jayshree P Upadhyay and Chris Thomas; Editing by Alexander Smith

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Peru bus plunges off cliff, killing at least 24

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Jan 28 (Reuters) – At least 24 people died in northern Peru after a bus carrying 60 passengers plunged off a cliff in early on Saturday, police told local media.

Peru’s transportation supervisory agency (SUTRAN) confirmed the crash in a statement, without providing a number of fatalities or injuries.

Bodies of victims are transported on the back of a pick-up truck, after a bus carrying 60 passengers plunged off a cliff, in the district of El Alto, Peru January 28, 2023. Piura Government/Handout via REUTERS

The tragedy, involving a bus for the company Q’Orianka Tours Aguila Dorada, occurred in the district of El Alto in the far north of Peru, SUTRAN said.

SUTRAN said early investigations showed the bus appeared to have an up-to-date safety inspection and accident insurance.

Road accidents are relatively common in Peru, with many drivers operating vehicles on precarious roads and without proper training. In 2021, 29 people died when a bus plunged off a highway in the Andes mountains.

Reporting by Brendan O’Boyle; Editing by Cynthia Osterman

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Business

Hindenburg shorts India’s Adani Group, flags debt and accounting concerns

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BENGALURU, Jan 25 (Reuters) – Hindenburg Research said on Wednesday it held short positions in India’s Adani Group, accusing the conglomerate of improper extensive use of entities set up in offshore tax havens and expressing concern about high debt levels.

The report, which comes days ahead of a $2.5 billion share offering by flagship firm Adani Enterprises (ADEL.NS), sent shares in Adani group firms sliding.

Hindenburg, a well known U.S. short-seller, said key listed companies in the group controlled by billionaire Gautam Adani had “substantial debt” which has put the entire group on a “precarious financial footing”.

It also said that seven Adani listed companies have an 85% downside on a fundamental basis due to what it called “sky-high valuations”.

An Adani spokesperson did not immediately respond to Reuters request for comment on the report, which Hindenburg said was based on research that involved speaking with dozens of individuals, including former Adani Group executives as well as a review of documents.

Hindenburg said it held its short positions through U.S.-traded bonds and non-Indian-traded derivative instruments.

Adani has repeatedly dismissed debt concerns. Adani Chief Financial Officer Jugeshinder Singh told media on Jan. 21 “Nobody has raised debt concerns to us. No single investor has.”

In the wake of the Hindenburg report, Adani Ports And Special Economic Zone (APSE.NS) slid 7.3% to its lowest level since early July, while Adani Enterprises dropped 3.7% to a near three-month low.

Reuters Graphics Reuters Graphics

Adani-owned cement firms ACC (ACC.NS) and Ambuja Cements (ABUJ.NS) fell 6.7% and 9.7% respectively.

Hindenburg’s report said that five of seven key listed Adani companies have reported current ratios – a measure of liquid assets minus near-term liabilities – below 1. This, the short-seller said, suggested “a heightened short-term liquidity risk.”

Adani Group’s total gross debt in the financial year ending March 31, 2022, rose 40% to 2.2 trillion rupees.

Refinitiv data shows that debt at all the Adani Group’s seven key listed Adani companies exceeds equity, with debt at Adani Green Energy Ltd (ADNA.NS) exceeding equity by more than 2,000%.

CreditSights, part of the Fitch Group, described the group last September as “overleveraged” and said it had concerns over its debt. While the report later corrected some calculation errors, CreditSights said it maintained its concerns over leverage.

Hindenburg is known for shorting electric truck maker Nikola Corp (NKLA.O) and Twitter though it later reversed its position in Twitter.

Shares in Adani Enterprises surged 125% in 2022, while other group companies, including power and gas units, rose more than 100%.

Reporting by Mrinmay Dey, Chris Thomas and Aditya Kalra; Additional reporting by Miyoung Kim; Editing by Dhanya Ann Thoppil and Edwina Gibbs

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Exclusive: Geely plans to turn maker of London black cabs into EV powerhouse

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COVENTRY, England, Jan 23 (Reuters) – China’s Geely (0175.HK) is planning a big investment to turn the maker of London’s iconic black taxis into a high-volume, all-electric brand with a range of commercial and passenger vehicles, executives at the unit told Reuters.

London Electric Vehicle Company (LEVC) also aims to expand its suite of services, which include cars arranging their own maintenance and recognising their owner’s interests to help them book activities.

“We need a developed product portfolio. We need to make big investments in terms of the technology and infrastructure,” LEVC Chief Executive Alex Nan said at the taxi maker’s headquarters in Coventry, central England. “Geely will make consistent investments into LEVC because this is a very unique project.”

LEVC builds a hybrid taxi model that starts at around 66,000 pounds ($81,500), which has a battery providing 64 miles (103 km) of range and a petrol range-extender giving it a total range of over 300 miles. The company’s business was hit hard by the pandemic and it laid off 140 staff in October.

Nan said LEVC and Geely would seek to attract other investors to its zero-emission portfolio and would look to partner with other carmakers to develop new technology.

Executives said the size of Geely’s investment would be disclosed later. So far the Chinese group, which took full control of LEVC in 2013, has invested 500 million pounds in it.

“Geely fully supports the new transition strategy laid out by LEVC’s board and executive team,” Geely said in a statement.

In 2021, Geely launched a 2 billion pound investment in another unit, niche British luxury sports carmaker Lotus, to massively expand production of its sports cars and build high-end SUVs and sedans in Britain and China. Geely is following a similar path in its plans to grow LEVC, executives said.

Britain’s EV ambitions were dealt a blow last week when startup Britishvolt, which had planned to build a major battery factory in northeast England, filed for administration.

“We need to make sure the UK environment as a whole is competitive and has its position on the world stage,” said LEVC managing director Chris Allen.

READY TO ACCELERATE

Geely owns multiple brands including Volvo (VOLCARb.ST) and – via a joint venture with Volvo – Polestar . Zeekr, another brand in the group, filed for a U.S. initial public offering last month.

As such, Geely faces a complexity that larger EV makers BYD (002594.SZ) and Tesla (TSLA.O) have avoided.

Allen said LEVC was exploring a range of commercial and passenger car models on a common electric platform. It can lean on other group brands that already have EVs to “move forward in a fast, agile way”.

The company already uses an infotainment system and software developed by Volvo and a steering wheel from the Swedish carmaker, allowing it to cut costs, Allen said.

“There’s nothing we couldn’t deliver in a very short time period if we needed to, but it’s just a question of timing,” he said, adding LEVC could easily have a full range of EVs on the road within five years.

“But in two years time, is the industry going to be ready, is the charging infrastructure going to be there, is consumer confidence going to be there?”

LEVC currently has the capacity to build 3,000 taxis a year running on a single shift at its Coventry factory. Allen said that could easily be increased to 20,000 and the plant had room to expand. It could also lean on production in China as Lotus has, Allen said. A major car plant produces on average around 300,000 vehicles per year.

“There’s a huge amount of value in our product that hasn’t ever really been maximised,” Allen said. “This is about growing LEVC into a much more recognizable brand on a global scale and expanding our product offering into as many spaces as we can.”

($1 = 0.8095 pounds)

Reporting by Nick Carey, Additional reporting by Zoey Zhange in Shanghai and Norihiko Shirouzu in Beijing
Editing by Mark Potter

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Chinese pray for health in Lunar New Year as COVID death toll rises

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BEIJING, Jan 22 (Reuters) – China rang in the Lunar New Year on Sunday with its people praying for health after three years of stress and financial hardship under the pandemic, as officials reported almost 13,000 new deaths caused by the virus between January 13 and 19.

Queues stretched for about one kilometre (a half-mile) outside the iconic Lama temple in Beijing, which had been repeatedly shut before COVID-19 restrictions ended in early December, with thousands of people waiting for their turn to pray for their loved ones.

One Beijing resident said she wished the year of the rabbit will bring “health to everyone”.

“I think this wave of the pandemic is gone,” said the 57-year-old, who only gave her last name, Fang. “I didn’t get the virus, but my husband and everyone in my family did. I still think it’s important to protect ourselves.”

Earlier, officials reported almost 13,000 deaths related to COVID in hospitals between January 13 and 19, adding to the nearly 60,000 in the month or so before that. Chinese health experts say the wave of infections across the country has already peaked.

The death toll update, from China’s Center for Disease Control and Prevention, comes amid doubts over Beijing’s data transparency and remains extremely low by global standards.

Hospitals and funeral homes were overwhelmed after China abandoned the world’s strictest regime of COVID controls and mass testing on Dec. 7 in an abrupt policy U-turn, which followed historic protests against the curbs.

The death count reported by Chinese authorities excludes those who died at home, and some doctors have said they are discouraged from putting COVID on death certificates.

China on Jan. 14 reported nearly 60,000 COVID-related deaths in hospitals between Dec. 8 and Jan. 12, a huge increase from the 5,000-plus deaths reported previously over the entire pandemic period.

Spending by funeral homes on items from body bags to cremation ovens has risen in many provinces, documents show, one of several indications of COVID’s deadly impact in China.

Some health experts expect that more than one million people will die from the disease in China this year, with British-based health data firm Airfinity forecasting COVID fatalities could hit 36,000 a day this week.

As millions of migrant workers return home for Lunar New Year celebrations, health experts are particularly concerned about people living in China’s vast countryside, where medical facilities are poor compared with those in the affluent coastal areas.

About 110 million railway passenger trips are estimated to have been made during Jan. 7-21, the first 15 days of the 40-day Lunar New Year travel rush, up 28% year-on-year, People’s Daily, the Communist Party’s official newspaper, reported.

A total of 26.23 million trips were made on the Lunar New Year eve via railway, highway, ships and airplanes, half the pre-pandemic levels, but up 50.8% from last year, state-run CCTV reported.

The mass movement of people during the holiday period may spread the pandemic, boosting infections in some areas, but a second COVID wave is unlikely in the near term, Wu Zunyou, chief epidemiologist at the China Center for Disease Control and Prevention, said on Saturday on the Weibo social media platform.

The possibility of a big COVID rebound in China over the next two or three months is remote as 80% of people have been infected, Wu said.

After China re-opened its borders on Jan. 8, some Chinese also booked trips abroad. Asia’s tourist hotspots have been bracing for the return of Chinese tourists, who spent $255 billion a year globally before the pandemic.

“Because of the pandemic, we hadn’t been out of China for three years,” said tourist and business owner Kiki Hu, 28, in Krabi on Thailand’s southwest coast. “Now that we can leave and come here for holiday, I feel so happy and emotional”.

Additional reporting by Beijing newsroom; Writing by Marius Zaharia
Editing by Shri Navaratnam

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Over 50 injured in Peru as protests cause ‘nationwide chaos’

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LIMA, Jan 20 (Reuters) – Dozens of Peruvians were injured after tensions flared again on Friday night as police clashed with protesters in anti-government demonstrations that are spreading across the country.

In the capital Lima, police officers used tear gas to repel demonstrators throwing glass bottles and stones, as fires burned in the streets, local TV footage showed.

In the country’s southern Puno region, some 1,500 protesters attacked a police station in the town of Ilave, Interior Minister Vicente Romero said in a statement to news media.

A police station in Zepita, Puno, was also on fire, Romero said.

Health authorities in Ilave reported eight patients hospitalized with injuries, including broken arms and legs, eye contusions and punctured abdomens.

By late afternoon, 58 people had been injured nationwide in demonstrations, according to a report from Peru’s ombudsman.

The unrest followed a day of turmoil in Thursday, when one of Lima’s most historic buildings burned to the ground, as President Dina Boluarte vowed to get tougher on “vandals.”

The destruction of the building, a near-century-old mansion in central Lima, was described by officials as the loss of a “monumental asset.” Authorities are investigating the causes.

Romero on Friday claimed the blaze was “duly planned and arranged.”

Thousands of protesters descended on Lima this week calling for change and angered by the protests’ mounting death toll, which officially stood at 45 on Friday.

[1/6] A riot police officer points with a weapon during the ‘Take over Lima’ march to demonstrate against Peru’s President Dina Boluarte, following the ousting and arrest of former President Pedro Castillo, in Lima, Peru January 20, 2023. REUTERS/Sebastian Castaneda

Protests have rocked Peru since President Pedro Castillo was ousted in December after he attempted to dissolve the legislature to prevent an impeachment vote.

The unrest has until this week been concentrated in Peru’s south.

In the Cusco region, Glencore’s (GLEN.L) major Antapaccay copper mine suspended operations on Friday after protesters attacked the premises – one of the largest in the country – for the third time this month.

Airports in Arequipa, Cusco and the southern city of Juliaca were also attacked by demonstrators, delivering a fresh blow to Peru’s tourism industry.

“It’s nationwide chaos, you can’t live like this. We are in a terrible uncertainty – the economy, vandalism,” said Lima resident Leonardo Rojas.

The government has extended a state of emergency to six regions, curtailing some civil rights.

But Boluarte has dismissed calls for her to resign and hold snap elections, instead calling for dialogue and promising to punish those involved in the unrest.

“All the rigor of the law will fall on those people who have acted with vandalism,” Boluarte said on Thursday.

Some locals pointed the finger at Boluarte, accusing her of not taking action to quell the protests, which began on Dec. 7 in response to the ouster and arrest of Castillo.

Human rights groups have accused the police and army of using deadly firearms. The police say protesters have used weapons and homemade explosives.

Reporting by Marco Aquino; Writing by Isabel Woodford; Editing by Bill Berkrot, Leslie Adler and William Mallard

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Davos 2023: Greta Thunberg accuses energy firms of throwing people ‘under the bus’

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DAVOS, Switzerland, Jan 19 (Reuters) – Greta Thunberg called on the global energy industry and its financiers to end all fossil fuel investments on Thursday at a high-profile meeting in Davos with the head of the International Energy Agency (IEA).

During a round-table discussion with Fatih Birol on the sidelines of the World Economic Forum (WEF) annual meeting, activists said they had presented a “cease and desist” letter to CEOs calling for a stop to new oil, gas and coal extraction.

“As long as they can get away with it they will continue to invest in fossil fuels, they will continue to throw people under the bus,” Thunberg warned.

The oil and gas industry, which has been accused by activists of hijacking the climate change debate in the Swiss ski resort, has said that it needs to be part of the energy transition as fossil fuels will continue to play a major role in the energy mix as the world shift to a low-carbon economy.

Thunberg, who was detained by police in Germany earlier this week during a demonstration at a coal mine, joined with fellow activists Helena Gualinga from Ecuador, Vanessa Nakate from Uganda and Luisa Neubauer from Germany to discuss the tackle the big issues with Birol.

Birol, whose agency makes policy recommendations on energy, thanked the activists for meeting him, but insisted that the transition had to include a mix of stakeholders, especially in the face of the global energy security crisis.

The IEA chief, who earlier on Thursday met with some of the biggest names in the oil and gas industry in Davos, said there was no reason to justify investments in new oil fields because of the energy crunch, saying by the time these became operational the climate crisis would be worse.

He also said he was less pessimistic than the climate activists about the shift to clean energy.

“We can have slight legitimate optimism,” he said, adding: “Last year the amount of renewables coming to the market was record high.”

But he admitted that the transition was not happening fast enough and warned that emerging and developing countries risked being left behind if advanced economies did not support the transition.

Youth climate activist Greta Thunberg takes part in a discussion on “Treating the climate crisis like a crisis” with International Energy Agency head Fatih Birol (not pictured) on the sidelines of the World Economic Forum in Davos (WEF) in Davos, Switzerland January 19, 2023. REUTERS/Arnd Wiegmann

‘REAL MONEY’

The United Nation’s climate conference, held in Egypt last year, established a loss and damage fund to compensate countries most impacted by climate change events.

Nakate, who held a solitary protest outside the Ugandan parliament for several months in 2019, said the fund “is still an empty bucket with no money at all.”

“There is a need for real money for loss and damage”.

In 2019, the then 16-year-old Thunberg took part in the main WEF meeting, famously telling leaders that “our house is on fire”. She returned to Davos the following year.

But she refused to participate as an official delegate this year as the event returned to its usual January slot.

Asked why she did not want to advocate for change from the inside, Thunberg said there were already activists doing that.

“I think it should be people on the frontlines and not privileged people like me,” she said. “I don’t think the changes we need are very likely to come from the inside. They are more likely to come from the bottom up.”

The activists later walked together through the snowy streets of Davos, where many of the shops have temporarily been turned into “pavilions” sponsored by companies or countries.

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Writing by Leela de Kretser; Editing by Alexander Smith

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Nepal plane crash searchers rappel, fly drones to find last two people

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KATHMANDU, Jan 17 (Reuters) – Searchers used drones and rappelled down a 200 metres (656 feet) deep gorge in Nepal’s second-biggest city on Tuesday to search for two people unaccounted for after the country’s deadliest plane crash in 30 years killed at least 70 people.

Difficult terrain and inclement weather was hampering rescue efforts near the tourist city of Pokhara, where the Yeti Airlines ATR 72 turboprop carrying 72 people crashed in clear weather on Sunday just before landing.

“There is thick fog here now. We are sending search and rescue personnel using ropes into the gorge where parts of the plane fell and was in flames,” Ajay K.C., a police official in Pokhara who is part of the rescue efforts, told Reuters.

Searchers found two more bodies on Monday before the search was called off because of fading light.

“There were small children among the passengers. Some might have been burnt and died, and may not be found out. We will continue to look for them,” K.C. said.

An airport official said 48 bodies were brought to the capital Kathmandu on Tuesday and sent to a hospital for autopsies, while 22 bodies were being handed over to families in Pokhara.

Medical personnel in personal protective equipment and masks helped transport shrouded bodies from stretchers to a vehicle before they were flown to Kathmandu, Reuters pictures showed.

Television channels showed weeping relatives waiting for the bodies of their loved ones outside a hospital in Pokhara.

On Monday, searchers found the cockpit voice recorder and flight data recorder from the flight, both in good condition, a discovery that is likely to help investigators determine what caused the crash.

Reuters Graphics

Under international aviation rules, the crash investigation agencies of the countries where the plane and engines were designed and built are automatically part of the inquiry.

ATR is based in France and the plane’s engines were manufactured in Canada by Pratt & Whitney Canada (RTX.N).

French and Canadian air accident investigators have said they plan to participate in the probe.

Reporting by Gopal Sharma, writing by Shilpa Jamkhandikar; Editing by Jamie Freed

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Nepal finds black boxes of aircraft after deadliest crash in 30 years

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  • Searchers find bodies of two of four missing passengers
  • Rescue efforts paused after poor weather hampers operation
  • Cockpit voice, flight data recorders found in good shape
  • Nepal observes day of national mourning, launches probe

KATHMANDU, Jan 16 (Reuters) – Searchers found the cockpit voice recorder and flight data recorder on Monday from a passenger flight that crashed, killing at least 70 people in Nepal’s worst plane accident for 30 years, officials said.

The data on the recorders may help investigators determine what caused the Yeti Airlines ATR 72 aircraft, carrying 72 people, to go down in clear weather on Sunday just before landing in the tourist city of Pokhara.

Reuters Graphics

Both recorders were in good shape and will be sent for analysis based on the recommendation of the manufacturer, Teknath Sitaula, a Kathmandu airport official, told Reuters.

Under international aviation rules, the crash investigation agency of the country where the plane was designed and built is automatically part of the inquiry.

ATR is based in France and the plane’s engines were manufactured in Canada by Pratt & Whitney Canada (RTX.N).

Nepal’s Civil Aviation Authority has inspected all ATR 72 and ATR 42 aircraft operating in the country since the crash and found no technical faults in them, it said in a statement on Monday.

There are currently 16 ATR 72 aircraft and three ATR 42s with multiple airlines in the country, an aviation authority official said.

Rescuers battled cloudy weather and poor visibility on Monday as they scoured a river gorge for passengers who are unaccounted for, more than 24 hours after the crash.

Two more bodies were recovered on Monday, taking the death toll to 70, said Navin Acharya, an official at the rescue coordination centre at Kathmandu airport. The search was called off for the remaining two missing people as darkness descended and will resume on Tuesday, he said.

Pokhara police official Ajay K.C. said all bodies had been sent to a hospital.

In the capital Kathmandu around 100 people lit candles at a gathering in memory of the crash victims and called on the government to ensure proper safety standards, witnesses said.

Condolences poured in from around the world, including the Vatican.

“His Holiness Pope Francis sends his condolences to you and to all affected by this tragedy, together with his prayers for those involved in the recovery efforts,” Cardinal Secretary of State Pietro Parolin said in a message to Nepal’s president.

[1/7] A rescue team recovers the body of a victim from the site of the plane crash of a Yeti Airlines operated aircraft, in Pokhara, Nepal January 16, 2023. REUTERS/Rohit Giri

Reuters footage from the crash site showed rescuers looking at the charred remains of the plane near a mountain gorge.

The plane, on a scheduled flight from Kathmandu to Pokhara, gateway to the scenic Annapurna mountain range, was carrying 57 Nepalis, five Indians, four Russians, two South Koreans, and one person each from Argentina, Ireland, Australia and France.

The aircraft had flown more than 1,700 times in the past one year.

Minutes before the aircraft was to land on Sunday, the pilot asked for a change of runway, a spokesperson for Pokhara airport said on Monday. “The permission was granted. “We don’t ask (why), whenever a pilot asks we give permission to change approach,” spokesperson Anup Joshi said.

Sunday’s crash underlined the need for the government to break up the Civil Aviation Authority of Nepal (CAAN), which both regulates airlines and manages airports, experts said.

“The government must immediately separate the regulatory body and service provider by splitting the Civil Aviation Authority of Nepal (CAAN) which is doing both works now,” K.B. Limbu, an aviation expert and a retired pilot, told Reuters.

“This leads to a conflict of interests.”

Asked for comment, Sitaula, the Kathmandu airport official, denied there was any such conflict in the functioning of CAAN.

“The regulatory and service provider (airport management) officials are separate and there is no cross-movement between the two bodies operating under the same organisation,” he said, referring to the CAAN.

There are nine domestic airlines in Nepal, including Yeti Airlines and its unit Tara Air. Yeti and Tara plane crashes have killed at least 165 people in Nepal since 2000 out of a total of 359 dead from aviation accidents, according to data from CAAN.

Reuters Graphics

An additional 75 people have died in helicopter crashes this century in Nepal, which is home to eight of the world’s 14 highest mountains, including Everest, and where sudden weather changes can make for hazardous conditions.

Experts say air accidents are usually caused by a combination of factors, and investigations can take months or longer.

Anju Khatiwada, the co-pilot of Sunday’s ill-fated aircraft, lost her husband Dipak Pokhrel in a similar crash in 2006. Khatiwada’s remains have not been identified but she is feared dead.

Nepal observed a day of national mourning on Monday and set up a panel to investigate the disaster and suggest measures to avoid such incidents in future.

Reporting by Gopal Sharma, writing by Shilpa Jamkhandikar and Shivam Patel; Editing by Gerry Doyle, Raju Gopalakrishnan and Mark Heinrich

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

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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.

Reuters Graphics

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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