2025-12-05 07:00
Around 500 flights cancelled, Delhi airport cancels all IndiGo departures Aviation regulator provide relaxation on night-time duty rules At airports, stranded passengers vent fury, some stage protests Airline says disruptions due to misjudgment and planning gaps MUMBAI/DELHI, Dec 5 (Reuters) - Air travel across India was in turmoil for a fourth day on Friday after IndiGo cancelled around 500 flights, including all departures from New Delhi, prompting the government to announce special relief measures for the country's largest airline. In a bid to improve air travel safety, Indian authorities have introduced new stricter regulations limiting pilot flying times and placing tighter restrictions on their operation of night-time flights. Sign up here. But IndiGo (INGL.NS) , opens new tab admitted it failed to plan properly ahead of a November 1 deadline for the measures' introduction. And with air travel now approaching its December peak, that has forced widespread flight cancellations this week that have stranded thousands of travellers. On Friday, the airline, which accounts for over 60% of domestic air travel in the world's most populous nation, apologised to its customers. "These last few days we have a serious operational crisis," it said in a statement. "While this will not get resolved overnight, we assure you we will do everything in our capacity to help you in the meantime." Following a request by IndiGo, India's civil aviation authorities granted it a temporary exemption from some of the new rules on Friday to help it deal with the crisis. IndiGo had earlier flagged that it did not expect to fully restore operations until February 10, though on Friday it said there should be "progressive improvement" from Saturday. Other major Indian airlines, including Air India and Akasa, have not had to cancel flights due to the new rules. HUNDREDS OF FLIGHTS CANCELLED, PASSENGERS VENT ANGER On Friday, Delhi airport announced all IndiGo departures were canceled for the day, a number that a source put at 235 flights. Chennai airport also announced all departing IndiGo flights were annulled. The airline cancelled 165 flights in Mumbai, 102 in Bengaluru, 92 in Hyderabad, airport sources, who declined to be named, said. Other major metro airports saw IndiGo flights up to 6 p.m. (1230 GMT) cancelled on Friday. At many airports across the country, crowds of stranded passengers voiced their frustrations, aggressively arguing with staff. Social media platforms and local media were flooded with videos of angry travellers. "Down with IndiGo! Down with IndiGo!" a group of passengers at Bengaluru airport shouted in protest, a video post on X showed. Another video showed a father shouting at IndiGo crew members, demanding a sanitary pad for his daughter. A post on X from earlier Friday morning showed dozens of young children sitting inside a Delhi airport terminal. "Kids waiting since 4am for their IndiGo (flight) ... hungry, tired, sleepy," read the post's caption. INDIGO RECEIVES EXEMPTIONS FROM NEW PILOT DUTY RULES Shares of IndiGo dropped nearly 3% on Friday, taking their weekly slump to 10.3%. India's main opposition party has demanded a discussion on the issue in parliament. The new pilot duty rules mandate that pilots can only make two night-time landings per week, down from six previously. That provision was put on hold for IndiGo until February 10 by India's civil aviation regulator. The airline was also temporarily exempted from a rule specifying maximum flight duty periods for pilots doing some night flying. IndiGo said it will offer waivers on all cancellations and booking changes for travel between December 5 and December 15. The airline has also arranged ground transportation and thousands of hotel rooms for stranded customers, it said. https://www.reuters.com/world/india/indias-indigo-set-cancel-nearly-400-flights-fourth-day-pilot-shortage-crisis-2025-12-05/
2025-12-05 06:59
China's Xi joins France's Macron for trip to southwest China Rare for Chinese leader to accompany his guests beyond Beijing Macron overestimated what deals Xi could offer, analyst says China is constrained due to ongoing negotiations with U.S., EU BEIJING, Dec 5 (Reuters) - Chinese leader Xi Jinping accompanied French President Emmanuel Macron to Chengdu on Friday, a rare gesture seemingly reserved for the head of Europe's second-largest economy that highlights Beijing's focus on Paris in its ties with the European Union. Even when U.S. President Donald Trump made a landmark visit to China early during his first term in 2017, and Xi lavished him with a private dinner within Beijing's Forbidden City, the trip was confined to the Chinese capital. Sign up here. But despite the apparent bonhomie between Xi and Macron, the French president's visit so far has resulted in little beyond bolstering Beijing's diplomatic credentials, as world leaders turn to China seeking economic assurances due to Trump's tariffs, analysts say. It has also provided Macron with a chance to project statesmanship after a tough summer in domestic politics. Investors are watching to see whether a day that began with the French president surprising fellow joggers in the city's Jincheng Lake Park, before joining Xi at a historic dam site, will end with major commercial deals or a thaw in EU-China trade tensions, given that Macron has been joined on his fourth state visit to China by the heads of some of France's biggest firms. A meeting in the Chinese capital on Thursday only resulted in 12 cooperation agreements covering areas such as population ageing, nuclear energy and panda conservation, and no monetary total was disclosed. "I think they (France) thought that Xi would be in a position to offer a lot because Europe is really preparing this economic security doctrine," said Alicia Garcia-Herrero, senior fellow at the think tank Bruegel. "Macron probably felt that given his weight and the fact that France is clearly the one that is pushing the most on economic security, that they would get a deal, but nope." ECONOMIC OPPORTUNITIES FACE POLITICAL CONSTRAINTS Beijing may see friendly ties with France as a way into expanding its influence within the 27-strong EU, but is very constrained in its ability to offer Paris major concessions. The Chinese leader was not expected to sign off on a long-anticipated 500-jet Airbus order, for example, as that would reduce China's leverage in trade talks with the U.S., which is pressing for new Boeing commitments. Xi is also unlikely to ease conditions for French cognac makers or pork producers, as doing so would weaken Beijing's negotiating position with Brussels over tariffs on Chinese-made electric vehicles. Nor can Xi offer Macron a breakthrough on the war in Ukraine for him to take back to Europe, with China having recently reaffirmed its support for Russia. Recent visits by Spain's King Felipe VI and German Finance Minister Lars Klingbeil were similarly low on tangible outcomes. Chinese government advisers say Beijing feels it has the upper hand and is waiting for Brussels to yield and accept a minimum price plan for its EVs rather than the tariffs currently levied on them. "They (the EU) now recognise the complexity of the issue. After Trump became president again, they realised they are too dependent on the U.S.... Europe is now in need of more reciprocal trade with China," one advisor said, requesting anonymity as he is not authorised to speak with media. "The EU should really reflect on its China policy and not tie it too closely to Russia and Ukraine," he added. DIVIDE AND CONQUER Xi also did not raise the prospect of a trade deal with the EU with Macron - which China's top diplomat Wang Yi brought up when Estonia's foreign minister visited last month and the Chinese commerce ministry has touted - despite talks over a landmark EU-China investment pact having been frozen since 2021. The vote on whether to adopt the European Commission's EV tariffs divided the member states, with France voting in favour of the duties while Germany, Europe's biggest economy, voted against. China could seek to exploit such divisions. "It is interesting that they (China) keep raising it (a trade deal) with the member states," said a European Commission official. "We have no plans whatsoever to have any kind of trade agreement with China," they added, also requesting anonymity. https://www.reuters.com/world/china/chinas-xi-meets-frances-macron-southwestern-chengdu-2025-12-05/
2025-12-05 06:52
DUBAI, Dec 5 (Reuters) - A vessel located 15 nautical miles west of Yemen reported an exchange of fire after sighting about 15 small craft at a range of 1–2 cables, the United Kingdom Maritime Trade Operations (UKMTO) agency said on Friday. The vessel said the craft later left the area and that it remains on high alert. Sign up here. The ship's master reported the crew was safe and that it is continuing to its next port of call. https://www.reuters.com/world/british-maritime-receives-report-incident-15-nautical-miles-west-yemen-2025-12-05/
2025-12-05 06:44
MUMBAI, Dec 5 (Reuters) - The Indian rupee forward premiums dropped on Friday following the central bank's rate cut and forex swap, though currency traders say a softer spot trajectory should cap the downside. MARKET REACTION In the interbank order-matching system, the November 2026 forward premium fell to 1.91 rupees from 2.18 rupees before the Reserve Bank of India's policy decision, then recovered to 2.10 rupees. Sign up here. The slide to near 1.90 was driven by the RBI's 25-basis-point rate cut and its announcement of a $5 billion buy-sell dollar/rupee swap to boost rupee liquidity. The rupee weakened after the rate cut, briefly slipping back below 90 per U.S. dollar following the announcement. GRAPHIC WHY IT'S IMPORTANT Forward premiums shape the hedging costs for corporates. Higher premiums make it more expensive for importers to hedge their dollar exposures, while encouraging exporters to lock in forward rates. For carry traders, the premium effectively represents the return on holding long-rupee positions. The higher it is, the more attractive it becomes to buy the rupee against the dollar or run rupee-based carry trades. CONTEXT The RBI's rate cut surprised most interbank traders and came after the recent run-up in forward premiums fuelled by a weaker rupee. The FX swap announcement, while broadly anticipated given the need for liquidity measures and the currency's slide, added to the initial move lower in premiums. WHAT'S NEXT The RBI's rate cut and swap weigh on forward premiums, yet the cut simultaneously clouds the rupee's outlook, which was already fragile due to weak foreign flows. That added pressure on the spot could put a floor under premiums, bankers said. https://www.reuters.com/world/india/rbi-rate-cut-fx-swap-knock-forwards-lower-weak-rupee-outlook-caps-fall-2025-12-05/
2025-12-05 06:29
JAKARTA, Dec 5 (Reuters) - Indonesia is unlikely to move forward with a plan to retire the Cirebon-1 coal power plant early, although it is reviewing other coal-fired plants for early shutdown, its chief economic minister said on Friday. The Cirebon deal has been seen as a test case for the early retirement of coal-fired power plants in developing countries under the Just Energy Transition Partnership (JETP), a G7 funding initiative. Sign up here. But after initially agreeing to close Cirebon in 2035 - seven years earlier than its lifespan - Indonesian authorities last year missed a key deadline and raised concerns about potentially higher costs for electricity subsidies. Choosing to shut down older power plants was "based on technical considerations," Indonesia's Chief Economic Minister Airlangga Hartarto told a press conference in Jakarta, flanked by representatives of JETP partner nations. "Cirebon is one of those that still has a long lifespan, and its technology is also critical, supercritical, and relatively better," he said, referring to so-called Clean Coal Technology at the plant. He added that the environmental impact of shutting down older, dirtier coal power plants would be bigger. The JETP has distributed $3.1 billion in financing so far, Airlangga said, adding international partners remained committed to the programme, noting the total funding commitment for Indonesia had been raised to $21.4 billion from an initial $20 billion. A number of projects worth a total of $5 billion are currently in the pipeline for financing, including the Saguling floating solar PV project, a transmission project in Sulawesi, and a wind power project in South Sumatra, Airlangga said. It was not clear how soon the funds would be deployed. Indonesia, which counts coal as one of its biggest export products, has pledged to reach net-zero greenhouse gas emissions by 2060. Jakarta this year submitted more ambitious, self-determined emission cut targets by 2035 to the United Nations. The plan has been criticised by environmentalists as extending the life of coal assets, because it included the utilisation of Clean Coal Technology. https://www.reuters.com/business/energy/indonesia-backpedals-retiring-cirebon-coal-power-plant-early-2025-12-05/
2025-12-05 06:21
MUMBAI, Dec 5 (Reuters) - The Reserve Bank of India lowered its key interest rate on Friday and announced measures to infuse up to $16 billion into the banking system this month in the form of debt purchases and a foreign exchange swap. The RBI reduced the repo rate by 25 basis points to 5.25% and maintained its "neutral" stance, citing record low retail inflation and a benign outlook for prices. Sign up here. The central bank will conduct open-market purchases of bonds worth up to 1 trillion rupees ($11.1 billion) and a $5 billion dollar-rupee buy/sell swap, Governor Sanjay Malhotra said. The debt purchases will be conducted on December 11 and December 18, while the three-year FX swap will take place on December 16. "Together, these measures are growth-supportive and the evolving growth-inflation mix keeps the door open for one more rate cut. Financial conditions should, therefore, be supportive for rate transmission and for bond market sentiment," said Churchil Bhatt, executive vice president - investments at Kotak Mahindra Life Insurance. This would be the first time since May that the central bank will conduct an OMO auction. The RBI bought bonds worth 4.84 trillion rupees between January and May. It also conducted similar swaps worth $10 billion each in February and March to infuse rupee liquidity into the system. "Announcing OMO perhaps suggests that RBI is cognizant of G-sec yields. In addition, the three-year FX swap suggests that RBI is aware of FX risks. They have done swaps in the past and there is possibility of more support if required," Anitha Rangan, chief economist at RBL Bank, said. "Nevertheless, a "neutral" stance suggests that RBI is unlikely to acknowledge rate cuts once again in the near future, but the support from OMOs and FX could continue." ($1 = 90.0250 Indian rupees) https://www.reuters.com/world/india/indias-rbi-announces-debt-purchases-fx-swap-boost-banking-system-liquidity-2025-12-05/
