Qatar Airways to get 787 compensation

Updated 02 May 2013
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Qatar Airways to get 787 compensation

DOHA: Qatar Airways said it would receive compensation from Boeing for the grounding of its 787 Dreamliners, as it returned the aircraft to service for the first time in three months.
“We will get compensation because we took airplanes we couldn’t fly. Boeing understands that,” CEO Akbar Al-Baker said before boarding the first flight from Dubai to Doha, accompanied by reporters.
Al-Baker criticized the decision by regulators to ground the 787 in January, a move which he described as an over-reaction to worldwide social media coverage generated by two battery incidents, as well as images of a Japanese 787 being evacuated.
“I still feel the aircraft should not have been grounded,” Al-Baker said. “I think there was reaction due to the unnecessary evacuation of a Japanese aircraft. People are too sensitive to what the social media says,” Al-Baker said.
Investigators say they do not yet know what caused two lithium-ion batteries to melt down. The Federal Aviation Administration recently approved a revised battery system designed to prevent the batteries overheating and contain any flammable materials inside a reinforced container.
“The grounding of the 787 has really impacted Qatar’s expansion severely. This is impacting my bottom line,” Al-Baker said, adding, “We were planning 15 new routes and now we have to settle for 10.”
All five 787 Dreamliners delivered to Qatar Airways before the grounding should be in service with modified batteries before the end of the month, the airline said.


Brent crude oil rises for a sixth day as supplies tighten amid strong demand

Updated 22 min 41 sec ago
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Brent crude oil rises for a sixth day as supplies tighten amid strong demand

  • US West Texas Intermediate crude futures were at $68.98 a barrel, up 34 cents
  • The potential of renewed US sanctions against Iran is pushing prices higher

SINGAPORE: Brent crude oil rose for sixth day on Tuesday, passing $75 a barrel, on expectations that supplies will tighten because fuel is rising at the same time the US may impose sanctions against Iran and OPEC-led output cuts remain in place.
Brent crude oil futures climbed to as high as $75.20 a barrel in early trading on Tuesday, the highest since Nov. 27, 2014. Brent was still at $75 a barrel at 0311 GMT up 29 cents, or 0.4 percent, from its last close.
Brent’s six-day rising streak is the most since a similar string of gains in December and it is up by more than 20 percent from its 2018 low in February.
US West Texas Intermediate (WTI) crude futures were at $68.98 a barrel, up 34 cents, or 0.5 percent from their last settlement. On Thursday, WTI rose to as high as $69.56, the most since Nov. 28, 2014.
Markets have been lifted by supply cuts led by the Organization of the Petroleum Exporting Countries (OPEC) which were introduced in 2017 with the aim of propping up the market.
The potential of renewed US sanctions against Iran is also pushing prices higher.
Stephen Innes, head of trading for Asia/Pacific at futures brokerage OANDA said new sanctions against Tehran “could push oil prices up as much as $5 per barrel.”
The US has until May 12 to decide whether it will leave the Iran nuclear deal and re-impose sanctions against OPEC’s third-largest producer, which would further tighten global supplies.
“Crude prices are now sitting at the highest levels in three years, reflecting ongoing concerns around geopolitical tensions in the Middle East, which is the source of nearly half of the world’s oil supply,” ANZ bank said.
“Oil strength is coming from Saudi Arabia’s recent commitment to get oil back up to between $70 to $80 per barrel as well as inventory levels that are back in the normal range,” said William O’Loughlin, investment analyst at Australia’s Rivkin Securities.
OPEC’s supply curtailments and the threat of new sanctions are occurring just as demand in Asia, the world’s biggest oil consuming region, has risen to a record as new and expanded refineries start up from China to Vietnam.
One of the few factors that has limited oil prices from surging even more is US production, which has shot up by more than a quarter since mid-2016 to over 10.54 million barrels per day (bpd), taking it past Saudi Arabia’s output of around 10 million bpd.
As a result of its rising output, US crude is increasingly appearing on global markets, from Europe to Asia, undermining OPEC’s efforts to tighten the market.