Airlines blast UK’s travel restart plan

British airlines and travel companies are desperate for a bumper summer. (Reuters/File)
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Updated 10 April 2021
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Airlines blast UK’s travel restart plan

  • Jet2 says it is canceling holidays until late June, blaming uncertainty in govt's plans for restarting international travel

LONDON:  British travel company Jet2 said it was canceling holidays until late June, blaming uncertainty in UK government plans for restarting international travel, which were condemned by airlines.

Flight operators had been counting on government proposals published on Friday to allow planning for a summer getaway season, but the industry criticized the release for not including a start date for travel or listing which countries would be open for holidaymakers.

“We are extremely disappointed at the lack of clarity and detail,” said Jet2 CEO Steve Heapy. “The framework lacks any rigorous detail about how to get international travel going again.”

Jet2, the UK’s third largest carrier by passenger numbers, said it had no choice but to cancel flights and holidays to June 23, over a month later than the May 17 date the government has said is the earliest for international travel to resume.

The country’s largest airline, easyJet, also criticized the government’s plans, saying the requirement for an expensive PCR COVID-19 test for trips to low-risk countries would mean that only wealthy people could take holidays abroad.

Airlines and travel companies are desperate for a bumper summer after a year of restrictions. Without a high level of unrestricted travel, some could be left struggling to survive or needing fresh funds.

The government has proposed a traffic light system, with countries falling into red, amber or green categories based on COVID-19 risks. Green countries will require a PCR test which costs about 100 pounds ($135) for travelers once they arrive back in the UK.

Airlines will need to wait until early May to hear when international travel can restart, said the government.

“This does not represent a reopening of travel as promised by ministers,” said Airlines UK, an industry body which represents British Airways, easyJet, Ryanair , Virgin Atlantic and others. “It is a further setback for an industry on its knees.”

EasyJet said the PCR test cost is higher than some of its fares, and called on the government to reassess its plan.

“This risks reversing the clock and making flying only for the wealthy,” said easyJet CEO Johan Lundgren.

Britons have embraced the era of low cost travel over the last 20 years and are among Europe’s highest spending tourists. In 2019, more than six in ten Britons took a foreign holiday.

Transport Minister Grant Shapps said that the government wanted to make testing for travel cheaper and suggested that in time, the PCR test could be changed for a more affordable lateral flow test.

“We are committed as a government to work to drive those costs down, and also in time of course review potentially the type of test,” he told the BBC.

The framework for travel will be reviewed at the end of June, July and again in October, the government has said.

“I’m not telling people that they shouldn’t book some holidays now,” Shapps said. “It’s the first time I’ve been able to say that for many months.”

Case numbers in Britain have dropped dramatically since a January peak under a strict lockdown which banned holidays, but a government priority is to avoid undermining the success of its vaccination program by importing vaccine-resistant variants from overseas.

Under the traffic light system, restrictions such as hotel quarantine, home quarantine and compulsory COVID tests will apply differently depending on which category of country a passenger arrives from.

A digital travel certification system would also be part of the plan but the proposals gave few details beyond saying that Britain wanted to play a leading role in developing standards.


Minister affirms Riyadh as global solutions hub ahead of special meeting of World Economic Forum

Updated 13 sec ago
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Minister affirms Riyadh as global solutions hub ahead of special meeting of World Economic Forum

RIYADH: Riyadh has emerged as a beacon of “thought leadership, action, and solutions,” stated one of Saudi Arabia’s top officials as the Kingdom’s capital prepares to host the World Economic Forum.

Faisal Al-Ibrahim, the minister of economy and planning, made the comments ahead of the summit on global collaboration, growth, and energy for development, slated for April 28 to 29, which aims to empower leaders from both public and private sectors to tackle mutual global challenges.

According to the WEF website, the meeting will also advance key forum initiatives in the region and beyond as it aims to bridge the growing North-South global divide, which has further widened on issues such as emerging economic policies, the energy transition and geopolitical shocks.

“The Crown Prince’s patronage of the World Economic Forum Special Meeting in Riyadh is a testament to our leadership’s determination to convene the world to take action and expand global collaboration on the critical topics of our time,” said Al-Ibrahim in a post on X.

He welcomed global leaders to this pivotal moment for social, economic, and human development, urging them to “build bridges toward a secure, stable and sustainable future.”


Saudi Arabia’s Diriyah Co. unveils its mixed-use commercial office and retail offering Zallal

Updated 51 min 2 sec ago
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Saudi Arabia’s Diriyah Co. unveils its mixed-use commercial office and retail offering Zallal

RIYADH: Saudi Arabia’s Diriyah Co. has shared plans for its inaugural mixed-use commercial office and retail development Zallal, set to launch in the Bujairi district during the first half of 2025.

This project will feature two low-rise office buildings with a combined leasable space of around 6,000 sq. m. Additionally, there will be 12 mixed retail and food and beverage outlets spread across about 8,000 sq. m.

Located next to the popular Bujairi Terrace, Zallal will benefit from proximity to a venue that attracts thousands of visitors daily.

The development is also located close to the recently completed Diriyah Art Futures and the soon-to-open Bab Samhan Hotel.

Jerry Inzerillo, group CEO of Diriyah Co, said: “We have been delighted with the hugely positive reception that Zallal has had from the commercial sector, and we are in advanced negotiations with international and local companies eager to benefit from the central location in the heart of Diriyah and the diverse range of accessible retail, F&B and office space available.” 

He added: “With construction well underway, Zallal maintains the exciting momentum at Diriyah, and when open, will benefit from the thousands of daily visitors to Bujairi Terrace becoming the latest completed precinct in our rapidly developing masterplan.”


Mitsui to join with ADNOC and others in LNG project in UAE, Nikkei reports 

Updated 23 April 2024
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Mitsui to join with ADNOC and others in LNG project in UAE, Nikkei reports 

TOKYO: Japan’s Mitsui & Co plans to participate in a $7 billion liquefied natural gas project in the UAE, teaming up with Abu Dhabi National Oil Co. and others, the Nikkei reported on Tuesday. 

ADNOC will participate with a stake of around 60 percent and Mitsui with 10 percent of the project, the Nikkei said, adding Mitsui’s investment is estimated to be several tens of billions of yen. 

Other oil majors Shell, BP and Total Energies are also expected to invest, the report said. 

The companies aim to produce about 10 million metric tons of LNG per year, the report said. 


Pakistan eyes new IMF loan by early July, finance minister says

Updated 23 April 2024
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Pakistan eyes new IMF loan by early July, finance minister says

ISLAMABAD: Pakistan could secure a staff-level agreement on a new long-term larger loan with the International Monetary Fund by early July, its finance minister said on Tuesday, according to Reuters. 

The country’s current $3 billion arrangement with the fund — which it secured last summer to avert a sovereign default — runs out in late April.

The $350 billion South Asian economy faces a chronic balance of payment crisis. The government is seeking a larger, long-term loan to help stabilize economic activity and financial markets so it can execute long-due, painful structural reforms.

If secured, it would be the 24th IMF bailout for Pakistan.

“We are still hoping that we get a staff-level agreement by June or early July,” Finance Minister Muhammad Aurangzeb told a conference in Islamabad.

He returned from Washington last week after leading a team to attend the IMF and World Bank’s spring meetings.

“We had very good discussions in Washington,” he said.

He said he did not know at this stage the volume and tenure of the longer program, although he has previously said that he was looking for at least a three-year bailout plan.

Both sides have said they were already in discussions for the new loan. A formal request, however, will be made once the current facility expires, with the IMF board likely to meet late this month to approve the second and last tranche of the current support scheme.

The economy is expected to grow by 2.6 percent in the fiscal year 2024, the finance minister said, adding that the inflation was projected at 24 percent, down from 29.2 percent in fiscal 2023. It touched a record high of 38 percent last May.

Aurangzeb said structural reforms would include increasing the government’s tax revenue-to-GDP ratio to 13 percent to 14 percent in next two or three years from the current level of around 9 percent, reducing losses of state-owned enterprises through their privatization, and better management of the debt-laden energy sector.


 


Oil Updates – prices stabilize, Middle East tensions remain in focus

Updated 23 April 2024
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Oil Updates – prices stabilize, Middle East tensions remain in focus

NEW DELHI: Oil prices edged higher on Tuesday, after falling in the previous session, as investors continued to assess the risk from geopolitical concerns in the Middle East, according to Reuters.

Global benchmark Brent crude oil futures traded 18 cents higher at $87.18 a barrel by 9:34 a.m. Saudi time, and US West Texas Intermediate crude futures also gained 16 cents to $82.06 a barrel.

Both benchmarks fell 29 cents in the previous session on signs that a recent escalation of tensions between Israel and Iran had little near-term impact on oil supplies from the region.

“The unwinding of geo-political risk premium has dented crude oil prices recently as supply was not disrupted meaningfully,” said Sugandha Sachdeva, founder of Delhi-based research firm SS WealthStreet.

But the evolving geopolitical landscape remains critical in steering crude oil prices, she said.

“While there are no indications of an imminent full-scale war between the countries involved, any escalation in tensions could quickly reverse the current trend,” Sachdeva added.

ANZ analysts echoed the sentiment and highlighted US approval of new sanctions on Iran’s oil sector that broaden current sanctions to include foreign ports, vessels and refineries that knowingly process or ship Iranian crude.

Also, EU foreign ministers agreed in principle on Monday to expand sanctions on Iran after Tehran’s missile and drone attack on Israel, the bloc’s foreign policy chief Josep Borrell said.

“The geopolitical backdrop is still very fraught with so many risks at the moment, so clearly we’re going to see a lot of volatility until there’s a lot more clarity around it,” the ANZ analysts said in a podcast.

Israeli troops fought their way back into an eastern section of Khan Younis in a surprise raid, residents said on Monday, sending people who had returned to abandoned homes in the ruins of the southern Gaza Strip’s main city fleeing once more.

Investors are waiting for the release of the US gross domestic product figures and the March personal consumption expenditure data — the Fed’s preferred inflation gauge — later this week to assess the trajectory of monetary policy.

US crude oil inventories are expected to have increased last week while refined product stockpiles likely fell, according to a preliminary Reuters poll of analysts.

“Sticky US inflation figures, hawkish statements from key Fed officials, and rising US inventories are all acting as constraints on crude oil price growth,” Sachdeva said.