HONG KONG, Aug 25 (Reuters) – The Chinese territory of Macau elected former legislature head Ho Iat Seng as its leader on Sunday – the sole approved candidate.
Ho, who has deep ties to China, is expected to cement Beijing’s control over the special administrative region and distance it from protests in neighbouring Hong Kong.
He secured 392 votes from a 400-member pro-Beijing committee to lead the world’s largest gambling hub for at least the next five years, public broadcaster TDM reported.
The 62-year-old’s highly scripted appointment comes as the former Portuguese colony tries to position itself as a beacon of stability and model for the Chinese government’s “one country, two systems” formula through which Beijing administers Macau and Hong Kong.
Although anti-government protests have roiled the former British colony of Hong Kong for nearly three months, Macau has seen little dissent to Beijing’s rule.
Ho said local youth could resist the influence of Hong Kong’s protesters and support measures to boost patriotism in Macau.
(Reporting by Farah Master; Editing by Raju Gopalakrishnan)
LONDON, Aug 23 (Reuters) – British Airways pilots are to go on strike for three days in September, their union said on Friday, in a dispute over pay that could disrupt the peak summer holiday season.
Last month, the pilots overwhelmingly voted for industrial action and the airline, which is part of IAG, failed in a court bid to stop them.
“The British Airline Pilots Association (BALPA) has today given notice to British Airways that it will call on its members to strike on 9th, 10th and 27th September 2019,” the union said in a statement.
“It is clear, following discussions with members over the last few days, that BA’s most recent offer will not gain the support of anywhere near a majority of its pilots.”
British Airways said the strike action was unjustifiable as their pay offer was fair and that the strikes would destroy the travel plans of tens of thousands of customers.
“We are now making changes to our schedule. We will do everything we can to get as many people away on their journeys as possible,” the airline said in a statement.
“However, it is likely that many of our customers will not be able to travel and we will be offering refunds and re-bookings for passengers booked on cancelled flights.”
The airline said it was exploring options to supplement its fleet with aircraft and crew from other airlines, known as wet-leasing, and working with partner airlines to schedule larger aircraft to take more customers.
(Reporting by Alistair Smout; editing by Stephen Addison)
DAR ES SALAAM/JOHANNESBURG, Aug 24 (Reuters) – South African authorities impounded an Airbus 220-300 aircraft leased by Tanzania’s national flag carrier following a court application by a retired farmer who is owed compensation by the Tanzanian government, the farmer’s lawyer said.
The plane had been scheduled to fly from the Oliver Tambo International Airport in Johannesburg, South Africa, to Dar es Salaam, Tanzania on Friday, but was seized on an order issued by the Gauteng High Court in Johannesburg, Tanzania’s transport ministry said in a statement on Friday.
Roger Wakefield, of Werksmans Attorneys, said his client, an elderly farmer who asked not to be named, was owed $33 million, including interest, in compensation from the Tanzanian government after his land in the country was expropriated several decades ago. The farmer was subsequently awarded the compensation in an arbitration, he said.
Wakefield said the only way Tanzania could secure the release of the plane was if it put up security or paid the debt.
A Tanzanian government spokesperson was not immediately available for comment.
Calls to the High Courts in Gauteng province went unanswered outside of usual business hours.
Speaking by phone to Reuters, Wakefield said the plane was impounded in line with South African and international laws allowing for an asset owned by a foreign entity to be attached to a case related to a foreign arbitration award.
The plane was chosen because there is evidence it is owned directly by the Tanzanian government and its value is commensurate with the amount owed to the farmer, who was born in Namibia, he said.
While the Tanzanian government has acknowledged it owes the farmer money, has previously made some payments and promised to pay the rest, it has not made a payment since around 2014, Wakefield said.
The plane is leased by loss-making state carrier Air Tanzania Company Limited (ATCL).
President John Magufuli has personally taken charge of the revival of the airline, spending hundreds of millions of dollars purchasing eight new planes since 2016.
The airline’s existing fleet, which is leased from the state-run Tanzania Government Flight Agency (TGFA), includes one Boeing 787-8 Dreamliner, two Airbus A220-300 jets and three DHC Dash 8-400 aircraft, formerly known as the Bombardier Q400 turboprop.
ACTL managing director Ladislaus Matindi told Reuters earlier on Saturday that the impounded plane was an Airbus 220-300, and arrangements had been made for its passengers to use another plane for their planned flight.
Tanzania has pinned hopes on the revival of the national airline to turn the country into a regional transport hub and boost the tourism sector, its biggest foreign exchange earner.
In 2017, a Canadian construction firm seized one of Tanzania’s new Q400 turbo-prop planes in Canada over a $38 million lawsuit related to a compensation ruling by the International Court of Arbitration.
The Q400 was released in March 2018 after Magufuli sent the country’s prime minister and attorney general to Canada to negotiate its release. Aviation sources said the government reached a financial settlement to secure the aircraft.
(Reporting by Fumbuka Ng’wanakilala in Dar es Salaam and Emma Rumney in Johannesburg Writing by Hereward Holland and Emma Rumney Editing by Angus MacSwan and Frances Kerry)
MEXICO CITY, Aug 22 (Reuters) – Mexico’s competition regulator said on Thursday it fined the airport at tourist hot spot Cancun $3.7 million for blocking new taxi operators, which it said reduced competition and effectively overcharged millions of passengers.
Grupo Aeroportuario del Sureste (ASUR) , the Mexican company that runs the Cancun airport along with 15 others across Latin America, said it will challenge the ruling and the 72.5 million pesos fine.
The Federal Economic Competition Commission (Cofece) said that from 2010 to at least 2018, the airport gave mostly negative assessments to taxis wishing to operate at the Cancun airport, preventing them from receiving federal permits.
“By being the only entity that can lease and grant spaces for taxi access… (the airport) took various actions to prevent new participants from offering said service,” Cofece said in a statement.
As a result of the airport’s moves to limit the market, fares were marked up about 8% on average for several million trips.
The regulator did not name any of the taxi operators that were blocked from the Cancun airport.
($1 = 19.8203 Mexican pesos)
(Reporting by Daina Beth Solomon Editing by Leslie Adler)
CHICAGO/WASHINGTON, Aug 22 (Reuters) – The U.S. Federal Aviation Administration said on Thursday it would invite Boeing 737 MAX pilots from across the world to participate in simulator tests as part of the process to recertify the aircraft for flight following two fatal crashes.
Earlier, Reuters reported that the agency had asked the three U.S. airlines that operate the MAX to provide the names of some pilots who had only flown the 737 for around a year, including at least one MAX flight.
In a statement, the FAA said it had not specified the number of required hours of flight experience, but said the candidates would be a cross-section of line pilots and must have experience at the controls of the MAX.
Boeing Co’s latest 737 narrow-body model, the MAX, was grounded worldwide in March after two crashes within five months in Indonesia and Ethiopia that killed 346 people.
Boeing has been reprogramming software for a stall-prevention system at the center of both crashes, which the FAA must approve before the plane flies again commercially.
The FAA said it had not yet specified a firm schedule for the tests.
Boeing has said it is working toward getting the 737 MAX flying again commercially in the early fourth quarter. Reuters reported on Thursday that it had told suppliers it planned to ramp 737 production back up in February, sending its shares 4% higher.
The world’s largest planemaker slowed its 737 production rate in April because deliveries of the MAX, which makes up the bulk of its single-aisle production, were frozen under the grounding, hitting its supply chain and airline customers.
In the United States, MAX operators Southwest Airlines Co , American Airlines and United Airlines have had to cancel hundreds of daily flights as they wrestle with slimmer fleets at a time of strong domestic air travel demand.
The MAX is Boeing’s fastest-selling aircraft, with about 5,000 pending orders.
As part of its own testing process, Boeing has invited senior airline pilots to experiment with the software fix and use simulators to run scenarios similar to the ones that led to the two crashes.
But sources told Reuters that the FAA also wanted to observe newer 737 pilots. One source said the simulator tests were supposed to be conducted during the first week of September but had been pushed back to the middle of the month.
The FAA, which is working alongside global regulators, has said repeatedly it does not have a fixed time line to approve the grounded jets to fly commercially again.
(Reporting by Tracy Rucinski in Chicago and David Shepardson in Washington; Additional reporting by Eric M. Johnson in Seattle; Editing by Matthew Lewis and Peter Cooney)
LONDON, Aug 21 (Reuters) – Investigators probing an engine explosion on an Air France A380 in 2017 are studying a possible manufacturing flaw in a recently salvaged cracked part in a move likely to trigger urgent checks on dozens of Airbus superjumbos, people familiar with the matter said.
The focus of a two-year-old investigation into the mid-air explosion over Greenland, which left the plane carrying more than 500 passengers with the front of one engine missing, has switched to the recently recovered “fan hub,” the people said.
The titanium alloy part is the centrepiece of a 3-metre-wide fan on engines built for the world’s largest airliner by U.S.-based Engine Alliance, co-owned by General Electric and United Technologies unit Pratt & Whitney.
It had sat buried in Greenland’s ice sheet since September 2017 when one of four engines on Air France flight 66 abruptly disintegrated en route from Paris to Los Angeles. It was prised from the ice in June after a high-tech aerial radar search.
Confirming the focus of the probe after Reuters reported the plans for inspections, France’s BEA air accident agency said it had discovered a “sub-surface fatigue crack” on the recovered part and the engine maker was preparing checks.
The people familiar with the matter linked the crack to a suspected manufacturing flaw and said the checks – to be carried out urgently on engines that have conducted a certain number of flights – would affect dozens of the double-decker jets.
The people said the suspect part was fabricated on behalf of consortium member Pratt & Whitney, which declined to comment.
Engine Alliance is one of two engine suppliers for the Airbus A380 in competition with Britain’s Rolls-Royce.
Its engines power a total of 152 aircraft or just over 60 percent of the 237 A380s in service.
Besides Air France, other airlines operating the A380 with Engine Alliance powerplants include Dubai’s Emirates, Qatar Airways, Abu Dhabi-based Etihad and Korean Air.
The checks will involve taking some planes out of service outside their usual maintenance schedules, one source said.
Investigations are not complete and are likely to tackle other features such as the loads or physical forces at play. Experts say air accidents are rarely caused by isolated factors.
Europe’s Airbus declined to comment.
SIOUX CITY REMEMBERED
Nobody was hurt in the September 2017 incident, in which the Air France superjumbo diverted safely to Goose Bay in Canada.
Although rare, uncontained engine failures, in which shrapnel capable of puncturing the fuselage exits an engine at extremely high speeds, automatically raise alarm.
The checks come weeks after relatives marked 30 years since an engine failure left a United Airlines DC-10 with almost no control, culminating in the death of 111 out of the 296 people on board during an attempted landing at Sioux City, Iowa.
U.S. investigators cited a defective titanium alloy part and weak inspection procedures, although they also praised the “highly commendable” performance of the crew of flight 232.
The July 1989 crash sped up improvements in manufacturing methods for titanium alloy. Experts say hidden internal defects in such parts are unusual but remain difficult to detect.
Titanium alloy is used widely in aerospace, which is the metal’s biggest customer due to its strength compared to the weight of each part and its ability to handle high temperatures.
(Reporting by Tim Hepher; Editing by Sudip Kar-Gupta and Elaine Hardcastle)
SHANGHAI (Reuters) – German auto maker Daimler AG <DAIGn.DE> plans to build Mercedes Benz-branded heavy trucks in China by revamping truck plants owned by its local joint venture, according to a document seen by Reuters and two sources familiar with the matter.
The plan will deepen the alliance between Daimler and its Chinese truck JV partner, Beiqi Foton Co Ltd <600166.SS>, and comes after the purchase of a 5% stake in Daimler last month by its Mercedes Benz passenger car partner, Beijing Automotive Group Co Ltd (BAIC), Foton’s parent group.
“Localization of Mercedes Benz-branded trucks had been planned years before, so it has nothing to do with BAIC Group’s recent stake purchase in Daimler,” one source said.
In 2016, Daimler’s then head of its truck business told German media that it planned to make Mercedes Benz-branded Actros heavy trucks in China by the end of the decade. No details of the plan has since been reported or announced.
Under the plan, Beijing Foton Daimler Automotive (BFDA) will add Actros to its production lines which are mainly used to make Auman trucks, the joint venture’s sole truck brand, the sources said.
The JV plans to revamp its No.3 plant, which will have an annual capacity of 60,000 heavy trucks, and expand capacity at its No.2 plant to 100,000 units from 60,000 now, according to a document on the JV’s website. The value of the investment was not known.
The No.3 plant will build both Actros and Auman trucks, said the sources, who declined to be identified because the plan had not been made public.
Daimler’s office in China did not immediately respond to phone calls seeking comment. Foton declined to comment.
All Mercedes Benz trucks currently sold in China are imported and priced significantly higher than domestically made Auman trucks.
Founded in 2012, the truck joint venture sold just over 100,000 units in China last year. Daimler is seeking to further develop its truck business with Foton, but the lack of a solid supply chain in China remains an obstacle, the sources said.
“One of the biggest challenges is to build up a good local supply chain, as many heavy truck components for Mercedes Benz trucks cannot be locally sourced for now,” the second source said.
China’s heavy truck market has fared better than the overall auto market this year, thanks to a growing e-commerce industry and improvements in traffic and logistics infrastructure.
China sold 732,000 heavy trucks in the first seven months this year, down 1.4% from the same period a year earlier, while the overall auto market dropped 13.5%.
Other major heavy truck makers in China include FAW, Dongfeng and Sinotruk.
(Reporting by Yilei Sun and Brenda Goh in Shanghai; Editing by Miyoung Kim and Darren Schuettler)
PEBBLE BEACH, Calif. (Reuters) – Italian premium sports car maker Ferrari NV will expand sales of easier-driving grand touring cars, but will not try to chase rival Porsche’s annual sales volume, Ferrari Chairman John Elkann told an audience of classic car enthusiasts gathered at this storied golf resort on the Pacific coast.
Elkann also reiterated that Fiat Chrysler Automobiles NV, of which he is chairman, remains open to opportunities to combine with other automakers, but is positioned to remain independent. Fiat Chrysler in May proposed a merger with French automaker Renault SA, but the deal fell apart after the French government intervened and Elkann withdrew the proposed merger.
Fiat Chrysler Chief Executive Mike Manley sent the same message to Renault and other would-be partners earlier this month.
Elkann visited Pebble Beach during the annual Concours d’Elegance, during which wealthy collectors bring some of the world’s rarest vintage automobiles to be admired — and sold — and premium manufacturers showcase exotic new models.
Ferrari is best known for flashy, high performance sports cars. Among fans of vintage Ferraris, more understated GT, or grand touring, cars from the 1960s, some with seating for four people, are among the most popular models on auction blocks and at enthusiast events. GT cars were designed to be comfortable on longer road trips.
Elkann hinted Ferrari will unveil a new GT type car in November. Ferrari has said previously that about 40% of its total sales could come from GT cars by 2022, up from 32% now.
Ferrari has outlined plans to expand revenue to 5 billion euros ($5.54 billion) by 2022 from 3.4 billion euros in 2017. The company has said it plans to add a model called the Purosangue to compete with a growing stable of sport utility vehicles wearing premium sports car brands, such as the Lamborghini Urus.
Rival Porsche AG, a unit of Volkswagen AG, has expanded its sales to more than 250,000 sports cars and sport utility vehicles annually. Elkann said Ferrari is not aiming for Porsche’s level of sales.
HONG KONG (Reuters) – Shares of Cathay Pacific Airways rose more than 2 percent early on Monday after CEO Rupert Hogg resigned in a shock move, as the carrier grapples with the involvement of some of its employees in the city’s anti-government protests.
Cathay’s shares rose as much as 2.3 percent to HK$10.84, their highest in two weeks. The carrier has emerged as the highest-profile corporate target as Beijing looks to quell protests in the territory that have gone on for 11 straight weeks.
Cathay Pacific was blindsided this month when China’s aviation regulator demanded it suspend staff supporting the anti-government protest movement.
(Reporting By Anne Marie Roantree and Donny Kwok; editing by Richard Pullin)
SINGAPORE (Reuters) – Aircraft lessor BOC Aviation Ltd said on Tuesday it expected up to 30 Boeing Co <BA> and Airbus SE <EADSY> jets that had been scheduled to arrive this year could be delayed, primarily due to the Boeing 737 MAX grounding.
BOC said 18 jets that had been due in the first half had been delayed, including 12 A320neo’s due primarily to industrial constraints and 6 737 MAX’s as a result of the grounding.
For the full year, up to 7 A320neo’s and 23 737 MAX’s could be delayed, including three for which an airline customer has the right to acquire upon delivery, Asia’s second-biggest aircraft lessor said in a statement.
BOC said it was working with Boeing on a revised delivery timeframe.
Boeing last week estimated a return to service for the jet would begin early in the fourth quarter, but it did not rule out further reducing or temporarily shutting down production of the plane if that forecast needed to be revised.
U.S. carrier Southwest Airlines Co <LUV> last week removed the 737 MAX from its schedules until Jan. 5, 2020, saying it would need one to two months following regulatory approval to train pilots and prepare the jets for fresh commercial service.
(Reporting by Jamie Freed; Editing by Stephen Coates)
