TOMORROWS TRANSPORTATION NEWS TODAY!
Swiss Federal Railways (SBB) reports after the severe storms that hit the La Chaux-de-Fonds region on Monday, July 24, 2023, the repair work is still ongoing. Since Saturday morning, July 29, 2023, the trains between La Chaux-de-Fonds and St-Imier have been running according to the timetable again.
The forecast for traffic to be restored between La Chaux-de-Fonds and Le Locle is now set for Saturday morning 19 August.
(Reuters) – Air New Zealand <AIR.NZ> said on Tuesday nearly a third of its employees, about 3,500, will be laid off in the coming months, as it grapples with severe global travel curbs due to the coronavirus that has forced it to cancel nearly all flights.
The national carrier, which employs 12,500 people, said the announced number of layoffs was a “conservative” assumption, and that it could rise if the domestic lockdown and border restrictions were extended.
Large scale layoffs of its global staff will start this week, the company said.
“Unfortunately, COVID-19 has seen us go from having revenue of NZ$5.8 billion to what is shaping up to be less than NZ$500 million annually based on the current booking patterns we are seeing,” Chief Executive Officer Greg Foran said in an email to staff and customers.
“This has the potential to be catastrophic for our business unless we take some decisive action.”
Air New Zealand is an example of the dire situation facing airlines across the world due to curbs on travel to control the spread of the virus.
“We have had to cut more than 95 percent of our flights here in New Zealand and around the world. The only flights remaining are in place to keep supply lines open and transport options for essential services personnel,” Foran added.
Earlier in March, the New Zealand government offered the airline a NZ$900 million ($540.99 million) lifeline to keep it in the air.
The company also noted that “every dollar we use from this loan facility comes with interest (more than double current interest rates for a household mortgage) and must be re-paid.”
“Burdening our airline with massive debt would significantly lessen our ability to compete with airlines emerging from COVID-19,” said Foran.
He also said that in a year’s time he expects staffing levels to be 30% smaller than it is currently.
($1 = 1.6636 New Zealand dollars)
(Reporting by Nikhil Kurian Nainan in Bengaluru; Editing by Shinjini Ganguli)
WASHINGTON (Reuters) – The U.S. Federal Aviation Administration (FAA) needs to improve its oversight to address maintenance issues at Allegiant Air, the 11th largest U.S. carrier, according to a report seen by Reuters on Tuesday.
The U.S. Transportation Department’s Inspector General, in a 31-page report sent to Capitol Hill on Tuesday but not yet made public, said FAA inspectors since 2011 have not “consistently documented risks associated with 36 Allegiant Air in-flight engine shutdowns for its MD-80 fleet or correctly assessed the root cause of maintenance issues.”
Ultra-low cost Allegiant, a unit of Allegiant Travel Co, said it had not yet see the report and did not have an immediate comment.
The FAA said in a letter attached to the report that it agreed with eight of the nine recommendations made by the inspector general and partially agreed with the remaining one.
Allegiant carried about 14 million passengers last year, serving 122 U.S. cities and Puerto Rico on 450 flight routes.
The inspector general opened the probe in May 2018 after a “series of in-flight engine shutdowns, aborted takeoffs, and unscheduled landings” raised concerns about maintenance practices.
The report said in-flight shutdowns at Allegiant “continued until July 2018 and were only resolved four months later when Allegiant Air retired the last of its MD-80 fleet.” Allegiant now flies an all Airbus fleet.
The report found in-flight engine shutdowns forced 21 Allegiant aircraft to return or divert to other airports between 2014 and 2018, but that regulators did not properly track engine shutdown risks.
A 2015 maintenance provider failure at Allegiant Air demonstrated “severe violations that represent unacceptable safety risks or could result in catastrophic outcomes should also warrant a more stringent oversight approach,” the report said.
The inspector general said the airline’s maintenance provider failed to insert a cotter pin on a critical flight control component that put some 30,000 passengers at risk.
The report said in August 2015, a pilot “almost lost control of this aircraft during takeoff when it unexpectedly tried to lift off prematurely” but was able to abort takeoff and land safely.
After inspectors proposed a 30-day suspension for Allegiant Air’s maintenance provider, FAA regional officials reduced the suspension to a compliance action. FAA inspectors closed out six of eight compliance actions before ensuring Allegiant Air actually took any corrective actions, the report found.
It also found that FAA does not provide inspectors with guidance and comprehensive training to ensure Allegiant Air takes appropriate corrective actions.
The FAA said it had “initiated compliance actions at Allegiant Air that have improved safety for the flying public.”
(Reporting by David Shepardson; Editing by Richard Chang and Bill Berkrot)
MONTREAL/WINNIPEG, Nov 19 (Reuters) – Thousands of workers at Canada’s largest railway went on strike for the first time in a decade on Tuesday, disrupting the shipping of commodities and sparking calls for Prime Minister Justin Trudeau’s Liberal government to intervene.
About 3,000 unionized workers of Canadian National Railway, including conductors and yardmen, hit picket lines after both sides failed to resolve contract issues at a time of softening demand for freight service. They continued talks on Tuesday in Montreal amid union concerns over fatigue, safety and ensuring that workers’ breaks are not reduced.
Canada, one of the world’s biggest exporters of farm products, relies on CN and Canadian Pacific Railway to move canola, wheat and other commodities over vast distances from western farms to ports. Crude oil shippers and the mining industry also depend on the railways.
The strike comes at an awkward time for Trudeau’s government, which relies on smaller parties to pass legislation and faces criticism from western provinces about its failures to get new oil pipelines built. Trudeau has said he is not reconvening Parliament until Dec. 5, and the government cannot start the process to force workers back on the job until then.
Andrew Scheer, leader of the Conservatives, the second-largest party in Parliament, and Alberta Energy Minister Sonya Savage each separately urged Trudeau on Twitter to recall Parliament immediately.
The Canadian mining industry, which accounts for more than half of annual rail freight revenues, depends on CN to transport supplies to company sites and products from their operations.
“This strike will result in a severe reduction or elimination of railway capacity and will trigger the closure of mines with concurrent layoffs of thousands of employees beginning in a matter of days,” said Pierre Gratton, president and CEO of the Mining Association of Canada.
“SCREECHING HALT”
Industry groups ranging from the Canadian Manufacturers and Exporters to propane and fertilizer groups said Ottawa needed to step in to limit damage to the economy.
The BC Council of Forest Industries, which represents the sector in British Columbia, expressed concerns about the disruptions caused by the strike for rail transport.
“Ninety percent of the forest products we produce are sent to export markets in North America and around the world,” Susan Yurkovich, the body’s president, said.
“A disruption of this critical transportation network will adversely impact BC forest companies at a time when we are already facing significant challenges and increasing competition from around the globe”, Yurkovich added.
CN and CP also collectively handle nearly all grain movement in Western Canada, the country’s crop belt, split roughly evenly between the railways.
The stoppage “has an impact before it even begins because companies pull back sales in anticipation of a strike,” said Wade Sobkowich, executive director of the Western Grain Elevator Association, whose members include Cargill Ltd, Richardson International and Viterra Inc.
CN’s shipments of hazardous goods such as crude are likely to come to a “screeching halt” even if the railroad’s management steps in to limit freight volumes, said Kent McDougall, chief commercial officer at Torq Energy, which loads crude oil in Western Canada onto trains operated by both CN and CP.
A strike may temporarily constrain CN’s volumes, but will not likely have a meaningful long-term impact on the company’s earnings, Credit Suisse analysts said in a research note on Monday, adding that Ottawa has historically been quick to intervene.
Shares of Montreal-based CN were down 1%, while the benchmark Canadian share index was up slightly.
Canadian Labour Minister Patty Hajdu and Transport Minister Marc Garneau said they are monitoring the CN strike situation closely after meeting with the two sides on Monday.
CN said in a statement that it was “disappointed” at the strike action. CN’s service in the United States will continue operating despite the strike.
The company said on Friday it would cut management and union jobs as it grapples with an economic slowdown.
Rail workers with the Teamsters held their last strike in 2009, when locomotive engineers walked off the job for five days, the union said.
(Reporting by Allison Lampert in Montreal and Rod Nickel in Winnipeg Additional reporting by Kelsey Johnson, David Ljunggren and Steve Scherer in Ottawa and Kanishka Singh in Bengaluru Editing by Chizu Nomiyama, Sandra Maler and Leslie Adler)
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