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Airlines Scramble to Minimize Losses As Bali’s Airport Shutdown Due to Volcanic Ash

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A volcano gushing towering columns of ash closed the airport on the Indonesian tourist island of Bali for a second day Tuesday, disrupting travel for tens of thousands. – Photo Reuters

BALI – As a shutdown of Bali’s airport is extended due to volcanic ash, airlines bracing for millions of dollars of lost revenue per day are scrambling to minimize damage by offering travel to other destinations and alternative transport off the island.

The airport on the Indonesian tourist island was closed for a second day on Tuesday because of ash from the eruption of the Mount Agung volcano, which has already disrupted several hundred flights and tens of thousands of passengers.

With no immediate sign of the eruption ending any time soon, industry experts say airlines may consider making longer-term flight frequency adjustments to Bali as forward bookings collapse and risks of ash damaging aircraft linger.

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AirAsia will look to redeploy capacity elsewhere in its network, the airline group’s chief executive Tony Fernandes tweeted on Tuesday, without providing details of any adjustment.

Most airlines are for now offering various options to minimize the short-term impact, preparing customers to expect scheduled disruptions until at least Dec 4.

“If this situation is prolonged for 2 to 3 months, it is possible that the airlines could reduce their Bali flights in the upcoming northern summer schedule that starts from end-March,” said Corrine Png, chief executive of transport research firm Crucial Perspective, although she said they would be wary of losing airport slots when demand eventually returned.

Almost 19,000 mainland Chinese and Hong Kong visitors were among those stranded in Bali. Photo AFP

Australia’s Jetstar is allowing passengers to re-route to other holiday destinations like Phuket in Thailand, while Singapore Airlines Ltd budget offshoot Scoot said it would transport stranded passengers by bus and ferry from Bali to the city of Surabaya on the neighboring island of Java for flights back to Singapore.

Png said each day that the Bali airport was closed meant about $5 million in combined lost flight revenue for the 42 airlines that fly there.

“This comes at a bad time for the airlines as we are in peak travel season right now and the Bali route is highly lucrative,” she said.

“Forward bookings to Bali will collapse as a result and the airlines will have to re-deploy their excess capacity to alternative destinations which are less profitable and may even have to discount more to fill up their planes.”

Alicia Seah, an official at Singapore-based travel agency Dynasty Travel, said bookings and inquiries for travel to Bali had dropped by half in the past two months following warnings that the volcano could erupt.

“Those departing this week and early December are asking for diversion to Thailand, Vietnam and Cambodia and we are now assisting them to do that. But those departing mid- to late-December are adopting a wait-and-see attitude,” Seah said.

To be sure, volcanic activity is common in Indonesia and ash clouds have led to sporadic airport closures and cancellations of flights to and from Bali on at least six occasions over the last three years, often for days at a time.

But on those occasions, the volcano spewing ash was on a neighboring island rather than Bali itself, making this a more serious threat to tourism.

Airlines avoid flying with volcanic ash in the air because it can cause significant damage to aircraft engines

Airlines avoid flying with volcanic ash in the air because it can cause significant damage to aircraft engines, clogging fuel and cooling systems, hampering pilot visibility and even causing engine failure.

In 1982, a British Airways 747 suffered severe damage and had all four engines flame out after flying through ash from Mount Galunggung in Indonesia.

Flight cancellations cost airlines in terms of refunds to passengers and paying fixed costs of aircraft and crew that are not flying, as well as for “relief” flights to return stranded travelers home.

Airline insurance usually covers physical damage to aircraft from ash but not the lost revenue, Png said.

In 2010, when a volcanic eruption in Iceland brought flights to, from and within much of Europe to a halt, the International Air Transport Association estimated airlines lost $1.7 billion in lost revenue in the first six days.

The ash cloud from the Bali volcano, however, is smaller and in an area far less frequented by major airline routes and it has for now been contained mostly to the airspace around Bali and neighboring Lombok island, both of which are primarily tourist destinations rather than key business travel points.

The wind direction could change, pushing ash away from the airport.

An Indonesian disaster mitigation official said ash rose an estimated 20km in 1963, during Agung’s last major series of deadly eruptions that lasted about a year.

By Jamie Freed – Reuters

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Additional reporting by Faithin Ungku in SINGAPORE and Ed Davies in JAKARTA; Editing by Miyoung Kim and Robert Birsel

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Marine Le Pen’s National Rally Wins the First Round in France 2024 Election

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Marine Le Pen's far-right National Rally (RN) party scored historic gains in France

Exit polls in France showed that Marine Le Pen’s right-wing National Rally (RN) party made huge gains to win the first round of election on Sunday. However, the final outcome will depend on how people trade votes in the days before next week’s run-off.

Exit polls from Ipsos, Ifop, OpinionWay, and Elabe showed that the RN got about 34% of the vote. This was a big loss for President Emmanuel Macron, who called the early election after his party lost badly in the European Parliament elections earlier this month.

The National Rally (RN) easily won more votes than its opponents on the left and center, including Macron’s Together group, whose bloc was predicted to get 20.5% to 23% of the vote. Exit polls showed that the New Popular Front (NFP), a hastily put together left-wing alliance, would get about 29% of the vote.

The results of the exit polls matched what people said in polls before the election, which made Le Pen’s fans very happy. But they didn’t say for sure if the anti-immigrant, anti-EU National Rally (RN) will be able to “cohabit” with the pro-EU Macron in a government after the runoff election next Sunday.

Voters in France Angry at Macron

Many French people have looked down on the National Rally (RN) for a long time, but now it is closer to power than it has ever been. A party known for racism and antisemitism has tried to clean up its image, and it has worked. Voters are angry at Macron, the high cost of living, and rising concerns about immigration.

Fans of Marine Le Pen waved French flags and sang the Marseillaise in the northern French district of Henin-Beaumont. The crowd cheered as Le Pen said, “The French have shown they are ready to turn the page on a power that is disrespectful and destructive.”

The National Rally’s chances of taking power next week will rest on what political deals its opponents make in the next few days. Right-wing and left-wing parties used to work together to keep the National Rally (RN) out of power, but the “republican front,” which refers to this group, is less stable than ever.

If no candidate gets 50% of the vote in the first round, the top two candidates and anyone else with 12.5% of the registered voters immediately move on to the second round. The district goes to the person who gets the most votes in the runoff.

France is likely to have a record number of three-way runoffs because so many people voted on Sunday. Experts say that these are much better for the National Rally (RN) than two-way games. Almost right away on Sunday night, the horse trade began.

Macron asked people to support candidates who are “clearly republican and democratic.” Based on what he has said recently, this would rule out candidates from the National Rally (RN) and the hard-left France Unbowed (LFI) party. Leaders on the far left and the center left both asked their third-placed candidates to drop out.

Minority government

Jean-Luc Melenchon, leader of France Unbowed, said, “Our rule is simple and clear: not a single more vote for the National Rally.” But the center-right Republicans party, which split before the vote when some of its members joined the RN, didn’t say anything.

The president of the RN party, Jordan Bardella, who is 28 years old, said he was ready to be prime minister if his party gets a majority of seats. He has said he won’t try to make a minority government, and neither Macron nor the communist NFP will work with him.

“I will be a “cohabitation” Prime Minister, respectful of the constitution and of the office of President of the Republic, but uncompromising about the policies we will implement,” he said.

A few thousand anti-RN protesters met in Paris’s Republique square on Sunday night for a rally of the leftist alliance. The mood was gloomy.

Niya Khaldi, a 33-year-old teacher, said that the RN’s good results made her feel “disgust, sadness, and fear.”

“This is not how I normally act,” she said. “I think I came to reassure myself, to not feel alone.”

Election Runoff

The result on Sunday didn’t have much of an effect on the market. In early Asia-Pacific trade, the euro gained about 0.23%. Fiona Cincotta, a senior markets expert at City Index in London, said she was glad the outcome “didn’t come as a surprise.”

“Le Pen had a slightly smaller margin than some of the polls had pointed to, which may have helped the euro a little bit higher on the open,” she noted. “Now everyone is waiting for July 7 to see if the second round supports a clear majority or not. So it does feel like we’re on the edge of something.”

Some pollsters thought the RN would win the most seats in the National Assembly, but Elabe was the only one who thought the party would win all 289 seats in the run-off. Seat projections made after the first round of voting are often very wrong, and this race is no exception.

On Sunday night, Reuters reported there were no final results for the whole country yet, but they were due in the next few hours. In France, exit polls have usually been very accurate.

Voter turnout was high compared to previous parliamentary elections. This shows how passionate people are about politics after Macron made the shocking and politically risky decision to call a vote in parliament.

Mathieu Gallard, research head at Ipsos France, said that at 1500 GMT, nearly 60% of voters had turned out, up from 39.42% two years earlier. This was the highest comparable turnout since the 1986 legislative vote. It wasn’t clear when the official number of people who voted would be changed.

 

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Pakistan Seeks US Support for Counter-Terrorism Operation Azm-e-Istehkam

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Pakistan

(CTN News) – Pakistan’s Ambassador to the United States, Masood Khan, has urged Washington to provide Pakistan with sophisticated small arms and communication equipment to ensure the success of Operation Azm-e-Istehkam, a newly approved counter-terrorism initiative in the country.

The federal government recently approved the reinvigorated national counter-terrorism drive, which comprises three components: doctrinal, societal, and operational.

Ambassador Khan noted that work on the first two phases has already begun, with the third phase set to be implemented soon.

Addressing US policymakers, scholars, and corporate leaders at the Wilson Center in Washington, Khan emphasized the importance of strong security links, enhanced intelligence cooperation, and the resumption of sales of advanced military platforms between Pakistan and the US.

He argued that this is crucial for regional security and countering the rising tide of terrorism, which also threatens the interests of the US and its allies.

“Pakistan has launched Azm-i-Istehkam […] to oppose and dismantle terrorist networks. For that, we need sophisticated small arms and communication equipment,” said Ambassador Khan.

Pakistan–United States relations

The ambassador observed that the prospects of Pakistan-United States relations were bright, stating that the two countries “share values, our security and economic interests are interwoven, and it is the aspiration of our two peoples that strengthens our ties.”

He invited US investors and businesses to explore Pakistan’s potential in terms of demographic dividend, technological advancements, and market opportunities.

Khan also suggested that the US should consider Pakistan as a partner in its diplomatic efforts in Kabul and collaborate on counterterrorism and the rights of women and girls in Afghanistan.

He stressed that the bilateral relationship should be based on ground realities and not be hindered by a few issues.

“We should not base our engagement on the incongruity of expectations.

Our ties should be anchored in ground realities, even as we aim for stronger security and economic partnerships. Secondly, one or two issues should not hold the entire relationship hostage,” said the ambassador.

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China Urges Taiwanese to Visit Mainland ‘Without Worry’ Despite Execution Threat

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China Urges Taiwanese to Visit Mainland Without Worry Despite Threats

China has reassured Taiwanese citizens that they can visit the mainland “without the slightest worry”, despite Taiwan raising its travel alert to the second-highest level in response to Beijing’s new judicial guidelines targeting supporters of Taiwanese independence.

Last week, China published guidelines that could impose the death penalty for “particularly serious” cases involving “diehard” advocates of Taiwanese independence.

In response, Taiwan’s government urged the public to avoid “unnecessary travel” to mainland China and Hong Kong, and raised its travel warning to the “orange” level.

However, Zhu Fenglian, a spokeswoman for a Chinese body overseeing Taiwan affairs, stated that the new directives are “aimed solely at the very small number of supporters of ‘Taiwan independence’, who are engaged in malicious acts and utterances”.

She emphasized that “the vast majority of Taiwan compatriots involved in cross-strait exchanges and cooperation do not need to have the slightest worry when they come to or leave mainland China”.

“They can arrive in high spirits and leave fully satisfied with their stay,” Zhu added.

What’s Behind The China-Taiwan Tensions?

The tensions stem from the longstanding dispute over Taiwan’s status. Mainland China claims Taiwan as part of its territory and has refused to rule out using force to bring the democratic island under its control, while Taiwan sees itself as a sovereign state.

Beijing has not conducted top-level communications with Taipei since 2016, when the Democratic Progressive Party’s Tsai Ing-wen became Taiwan’s leader. China has since branded her successor, President Lai Ching-te, a “dangerous separatist”.

“The DPP authorities have fabricated excuses to deceive the people on the island and incite confrontation and opposition,” Zhu said in her statement.
Despite the political tensions, many Taiwanese continue to travel to mainland China for work, study, or business.

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