A UTair flight en route from the Siberian city of Tyumen to Ufa, the capital of Bashkortostan, has made an emergency landing at Koltsovo airport in the city of Yekaterinburg, the airport’s press service told reporters.

"The UT-125 flight from Tyumen to Ufa has made an emergency landing at Yekaterinburg due to technical issues," the press service said.

According to an emergency source, "the crew saw a crack in the windshield and it was decided that the plane would land in Yekaterinburg." The source added that the landing was normal.

There were 63 passengers and four crew members on board.

"All passengers are currently at the airport, waiting to depart for Ufa," the emergency source said.

Chinese tourists are big spenders and with the numbers visiting Europe set to soar by nearly 70 percent over the next five years, the countries of the Old Continent are rolling out the red carpet to make the guests feel welcome.

A total 12.4 million Chinese, mostly in guided tour groups, came to Europe in 2017, according to the European Travel Comission. And the Chinese Tourism Academy (CTA) is expecting the number to reach 20.8 million by 2022.

"A few years ago, the Chinese came to Europe solely to do some shopping. Now, they're increasingly keen to get know the culture and the countryside," CTA president Dai Bin told AFP, speaking in Venice, at the launch of the year of tourism between the EU and China.

Festivals, cooking courses... "they want to have personal experiences and visit areas where they don't see any other Chinese," said ETC's executive director, Eduardo Santander.

"They like the cuisine, the music, the blue skies... most of them come from the coast, where pollution is extremely high," Santander said.

And some were surprised that they can "breathe without coughing," he added.

China is the world's biggest market for foreign tourism -- with 129 million Chinese holidaymakers travelling abroad, they account for one fifth of the total number of tourists globally.

And they spend more than twice the amount that, say, US tourists do -- $261 billion in 2016 compared with $123 billion.

- Hot water and credit cards -

Small gestures can go a long way towards making Chinese tourists feel more at ease in Europe, said Jacopo Sertoli, head of Welcome Chinese, a body that awards certificates to tourism companies catering for Chinese customers.

"You can make them very happy by offering them a glass of hot water," he said, noting most Chinese families drink water at that temperature rather than cold.

Chinese language television stations and good wifi in hotel rooms are a good idea while payment methods favoured by the Chinese, such as UnionPay, the only credit card issuer in China, WeChatPay or Alipay are a must.

CTA chief Dai Bin said Europe should reduce the red tape for its Chinese visitors.

"We hope Europe will make is easier for Chinese to get a visa," he said.

"In a number of eastern European countries, for example, it's easy. But it's very difficult in others. And when Chinese tourists visit Europe, they want to visit several countries, not just one," Dai Bin said.

By reciprocation, China would become "more flexible when granting visas and Europeans can stay in Beijing or Shanghai for 144 hours -- or six days -- without a visa," he promised.

According to ETC data, France is the number one desired destination in Europe for Chinese tourists, with 61 percent of visitors hoping to go there, followed by Germany with 37 percent and Italy with 28 percent.

Nevertheless, that picture has started to change in recent years, and travel to eastern Europe is booming, not least because of the easier allocation of visas and the increased availability of cheap flights. The string of terrorist attacks in France and Germany in recent years is also a factor.

In 2016, the number of Chinese tourists visiting Serbia, for example, rose by 173 percent, and numbers were up by nearly 90 percent in Montenegro.

But while "the Chinese are very alert to questions of security, they tend to forget more easily than other tourists," Santander said.

Popular for perceivedly having deep pockets -- a result of the Chinese tradition of giving presents -- Chinese visitors haven't always enjoyed a reputation for their savoir-vivre.

But that's an image which China is itself keen to remedy, with "some tourist agencies offering lessons to customers before they go to Europe," said CTA president Dai Bin.

Source: AFP

Chinese tourists are big spenders and with the numbers visiting Europe set to soar by nearly 70 percent over the next five years, the countries of the Old Continent are rolling out the red carpet to make the guests feel welcome.

A total 12.4 million Chinese, mostly in guided tour groups, came to Europe in 2017, according to the European Travel Comission. And the Chinese Tourism Academy (CTA) is expecting the number to reach 20.8 million by 2022.

"A few years ago, the Chinese came to Europe solely to do some shopping. Now, they're increasingly keen to get know the culture and the countryside," CTA president Dai Bin told AFP, speaking in Venice, at the launch of the year of tourism between the EU and China.

Festivals, cooking courses... "they want to have personal experiences and visit areas where they don't see any other Chinese," said ETC's executive director, Eduardo Santander.

"They like the cuisine, the music, the blue skies... most of them come from the coast, where pollution is extremely high," Santander said.

And some were surprised that they can "breathe without coughing," he added.

China is the world's biggest market for foreign tourism -- with 129 million Chinese holidaymakers travelling abroad, they account for one fifth of the total number of tourists globally.

And they spend more than twice the amount that, say, US tourists do -- $261 billion in 2016 compared with $123 billion.

- Hot water and credit cards -

Small gestures can go a long way towards making Chinese tourists feel more at ease in Europe, said Jacopo Sertoli, head of Welcome Chinese, a body that awards certificates to tourism companies catering for Chinese customers.

"You can make them very happy by offering them a glass of hot water," he said, noting most Chinese families drink water at that temperature rather than cold.

Chinese language television stations and good wifi in hotel rooms are a good idea while payment methods favoured by the Chinese, such as UnionPay, the only credit card issuer in China, WeChatPay or Alipay are a must.

CTA chief Dai Bin said Europe should reduce the red tape for its Chinese visitors.

"We hope Europe will make is easier for Chinese to get a visa," he said.

"In a number of eastern European countries, for example, it's easy. But it's very difficult in others. And when Chinese tourists visit Europe, they want to visit several countries, not just one," Dai Bin said.

By reciprocation, China would become "more flexible when granting visas and Europeans can stay in Beijing or Shanghai for 144 hours -- or six days -- without a visa," he promised.

According to ETC data, France is the number one desired destination in Europe for Chinese tourists, with 61 percent of visitors hoping to go there, followed by Germany with 37 percent and Italy with 28 percent.

Nevertheless, that picture has started to change in recent years, and travel to eastern Europe is booming, not least because of the easier allocation of visas and the increased availability of cheap flights. The string of terrorist attacks in France and Germany in recent years is also a factor.

In 2016, the number of Chinese tourists visiting Serbia, for example, rose by 173 percent, and numbers were up by nearly 90 percent in Montenegro.

But while "the Chinese are very alert to questions of security, they tend to forget more easily than other tourists," Santander said.

Popular for perceivedly having deep pockets -- a result of the Chinese tradition of giving presents -- Chinese visitors haven't always enjoyed a reputation for their savoir-vivre.

But that's an image which China is itself keen to remedy, with "some tourist agencies offering lessons to customers before they go to Europe," said CTA president Dai Bin.

Source: AFP

 Taliban militants who killed at least 22 people at a luxury Kabul hotel went from room to room searching for foreigners, survivors and a security source said Monday as more details of the victims emerged.

Travelers often overlook Mongolia for its bustling neighbors, China and Russia. But it is in Mongolia — one of the world’s most sparsely populated countries — that one finds a unique blend of adventure and serenity that includes venturing into the wild with epic horse rides through the valleys, climbing up to Buddhist villages and temples, hiking through the mountains or luxurious yurt stays under a canvas of stars.

Mongolians are fully aware of the unique beauty of their country. Ask locals and they will probably start gushing about the spectacular countryside, vast steppes, rugged mountains, clear lakes and abundant wildlife and livestock of their country.  It is this true wilderness experience that many people find so appealing. The country is also famous for its nomadic culture — visitors can sleep in a herder's ger (traditional felt yurt), help roundup the sheep, ride horses and simply 'get back to nature'.

Ulaanbaatar

The capital, Ulaanbaatar, is a sprawling, industrialized city of pulsating commerce, wild traffic, throbbing nightlife and bohemian counter-culture. The city reflects a sharp contrast between traditional and modern elements that merge to form a unique environment. This is an ever-changing city that may be the biggest surprise of your Mongolian adventure.

The Gandan Khiid is one of the most important monasteries in this region — its full name Gandantegchinlen, translates roughly as ‘the great place of complete joy’ — a popular tourist attraction in Ulaanbaatar. Around the start of the 19th century more than 100 süm (temples) and khiid (monasteries) served a population of about 50,000 in Urga (the former name of Ulaanbaatar). The Gandan Khiid is just one of the handfuls of such buildings that survived the religious purges of 1937.

Among other museums and historical sites in the city is The Central Museum of Mongolian Dinosaurs, home to dinosaurs of all shapes, sizes and appetites that once roamed the Gobi Desert. Their fossilized bones and eggs were first uncovered by American explorer Roy Chapman Andrews in the 1920s. Today you can come face-to-skull with some of the best examples of Mongolian dinosaur fossils in this museum.

Tov

Few tourists come to Mongolia without visiting its most iconic landmark, a 40-meter-high glistening silver statue of Chinggis Khaan at the Chinggis Khaan Statue Complex, located in the province of Tov. Constructed in 2008 from stainless steel, the dramatic statue has a lift rising up its tail, from where there are steps to the horse’s head. It was built here, so the legend goes, because this was the spot where Chinggis Khaan found a golden whip. The complex includes an impressive museum which enlightens tourists with the rich history of the country and guides them through the ventures of the nation’s infamous leader, and located just up the road is the statue of Chinggis Khaan’s mother, Hoelun, who gazes back towards her son.

Situated in this region is also the famous Khustain National Park, a 506-sq-km reserve which is well known for its population of takhi, a Mongolian wild horse once thought extinct. Other wildlife in the park includes maral (Asiatic red deer), steppe gazelle, deer, boar, Pallas's cats, wolves, lynx, marmot and 223 species of birds. Wildlife watching is best at dusk and at dawn, so it is worth spending at least one night in the park in order to see takhi and other wildlife.

Gobi Desert

With its iconic sand dunes, ice canyon and stunning mountain vistas, Gurvan Saikhan National Park is understandably one of Mongolia’s most popular national parks, and falls along the northern edge of the Gobi Desert. Besides its spectacular natural beauty it contains more than 200 bird species, including the Mongolian desert finch, cinereous vulture, desert warbler and houbara bustard. The park also has 600 or more types of plants, which help support the black-tailed gazelle, Kozlov’s pygmy jerboa, wild ass and endangered species of wild camel, snow leopard, ibex and argali sheep.

Khongoryn Els are some of the largest and most spectacular sand dunes in Mongolia and fall within the boundaries of the National Park. Yolyn Am, which was originally established to conserve the region's bird life, but is now more famous for its dramatic rocky cliffs and narrow, heavily shaded canyons that allow sheets of blue-veined ice to survive well into the summer in what is known as Yolyn Am Gorge. A pleasant 2km path leads from the parking area to this gorge filled with blue ice, one of the park's not-to-miss sights. You can hike, bike or hire a horse and ride here. Along the way, you will see herds of shaggy yaks and, if you are lucky, an ibex.

Orkhon Valley

If your reason to visit Mongolia is to experience its vast mountainous steppe, then travelling through the Orkhon Valley region is a must on your itinerary. Here you can drive all day and come across flocks of goat and sheep that scurry out of the way, while herds of semi-wild horses graze in the distance. Crossing this vast nothingness of undulating hills you will encounter the occasional ger camp of nomadic herders, who can wave you on in the direction you are heading if you get lost.

It is a route that is popular with tourists making their way from Kharkhorin, invariably stopping at Orkhon Falls. From here you can embark on a horse trek to Khuisiin Naiman Nuur Nature Reserve, or continue east to the scenic Khangai Mountains, where you will find one of central Mongolia's most atmospheric monasteries.

Kharkhorin

The site of Mongolia’s famed 13-century capital Karakorum has since been molded into a gritty Soviet-built town with hints of its Middle Aged glory glistening in its corners. What draws in tourists by the bus load are the remains of the 16th-century monastery, Erdene Zuu Khiid, and the impressive museum, both of which offer some evocative insights into the region's golden era.

Kharkhorin is also within striking distance of a number of worthwhile sights – the stunning lakes of Naiman Nuur, Orkhon Khürkhree waterfall, the secluded hilltop monastery, Tövkhön Khiid, the sand dunes known as MongolEls, and the magnificently stark rocky nature reserve, Khögnö Khan Uul – making this the best place to base yourself for a tour of the Övörkhangai province.

Gulf Air, the Kingdom of Bahrain’s national carrier, has today in partnership with VFS Global, the world’s largest visa service provider, launched a Bahrain Tourist Visa Service available via visa.gulfair.com exclusively for the airline’s passengers flying across its global network to Bahrain.

Travellers with return Gulf Air tickets can now conveniently apply for a visa to the Kingdom of Bahrain online via visa.gulfair.com or by visiting their local Gulf Air sales office with the necessary documents no more than 30 days prior to travel to fill in the relevant forms and submit their application. The visa service takes a minimum of four working days to process and is done in coordination with the relevant ministries and government entities.

Gulf Air Deputy Chief Executive Officer, Captain Waleed Abdul Hameed Al Alawi, said: “Promoting the Kingdom of Bahrain as a many-faceted tourist destination is key to Gulf Air’s longstanding mission. We are delighted to, in partnership with VFS Global, launch the Bahrain Tourist Visa Service - making the process of obtaining a visa to enter Bahrain easier and more convenient. We anticipate positive feedback from our customers, for whom this service is tailored, and we look forward to welcoming more people from around the world to Bahrain to experience all that the Kingdom has to offer.”

Vinay Malhotra, COO – Middle East & South Asia, VFS Global, added: “We are delighted to partner with Gulf Air and the Government of Bahrain to develop a convenient, next-generation visa service for Gulf Air passengers visiting Bahrain. The dedicated online platform not only makes applying for a visa to Bahrain quicker and more convenient than ever before, but also provides passengers with 24x7 accessibility and online tracking of their visas, amongst other advantages.”

Further information on Gulf Air’s Bahrain Tourist Visa Service can be found by visiting visa.gulfair.com, calling any local Gulf Air sales office or emailing query@bahrainvisaservice.com.  

Travellers wishing to book package holidays within Gulf Air’s extensive network of destinations can visit holidays.gulfair.com to purchase any/all of: airfares, hotel accommodation, car rental, guided tours, excursions as well as the airline’s own add-on travel enhancement items such as advance excess baggage purchasing, lounge access and prepaid seat selection. Gulf Air tickets can be purchased via the airline’s official website gulfair.com, its 24-hour Worldwide Contact Centre on (+973) 17373737 in Bahrain, or any Gulf Air sales offices and approved travel agencies.

A truly Asian destination, a trip to Malaysia can be an overwhelming experience. Everything that one would expect for a perfect holiday can be found in this land blessed with natural beauty that is safe, affordable and simply amazing.

Good climate 365 days a year means that whether it's soaking up the sun on a beautiful beach or experiencing the rich culture and heritage, enjoying the delicious food on offer for every taste, wildlife safari, or bustling metropolis experience there is an adventure for each and everyone.

Among the many flights from Kuwait, Oman Air provides an excellent connectivity and comfort that can surpass one’s expectations. Voted as the best business class seat at the World Airline Awards the airline offers exceptional service and hospitality onboard its flights and at its lounges.Tourism Malaysia, the official tourism promotion authority in the country, is a serious effort by all the stakeholders working together to make each visit a memorable one. Having one of the largest overseas set up in almost 44 countries, every effort is taken by Tourism Malaysia to ensure that the country remains one of the top destinations for tourism.

During our visit we had the opportunity to understand the strategy and plans of the ministry with an exclusive interview with Dato Mousa Bin Al Yousef, director at Tourism Malaysia’s International Promotion division for Asia and Africa.

“Since 1959 Malaysia has been setting up tourism infrastructure and in 1992 the tourism board was rebranded to promote tourism in Malaysia,” Mousa Al Yousef revealed.

Malaysia gets around 27.5 million tourists a year mainly from neighbouring countries and the Middle East figures from January to August was just 210,000. “Even though we would like a lot more from the region, the Middle East visitors are all among the top 5 spenders,” he disclosed.

Our plan is to see a growth of 4 percent in terms of expenditure. “We have started working closely with airlines to promote tourists from their market and beyond,” he said. Already the impact is felt and more flights and better connectivity encouraging tourists to visit this nation of natural beauty.

“Malaysia for the Middle East tourist is a family destination,” Mousa revealed elaborating that the activities of water parks, theme parks, beaches and shopping makes it a tourist paradise. The Sunway Lagoon is a must visit for its amazing water theme based slides and rides. There is something for everyone and it is easy to find several interesting activities for the entire family. “As a top of the mind destination, there is halal food everywhere, English is widely spoken and it is very easy to assimilate with the local culture making it most comfortable for the visitor.”

The multi-ethnicity, culture and religion of Malaysian gives it an edge over neighboring countries as it is also peaceful, safe and unaffected by natural calamities.

“Our plan in the next 10 years is to increase our revenues from 82 billion ringgit (US$20 billion) to over 168 billion ringgit ($42 billion) hence there is a great thrust to boost the sector,” he also disclosed.

A very liberal visa regime means that most nationalities get visa on arrival. For others, the e-visa is easily processed making quick planning visits possible.
A fun packed vacation can include amazing sightseeing activities, island visits, unrivalled luxurious resorts, water sports, night markets, cultural tours, rainforests, wildlife safari’s, mountains and shopping that can wow any visitor.

Chinese and Russian visitors boosted Middle Eastern tourism last year following a 2016 slump as Europeans gave the area a wide berth on security fears, according to the World Tourism Organization (WTO).

The Mideast region as a whole drew 58 million foreign tourists in 2017 -- a 4.8 percent rise on the previous year -- the Madrid-based WTO said in its latest figures released midweek.

Jihadist attacks on tourist sites in Egypt, Tunisia and Turkey in recent years particularly hit the industry.

But "over time, people forget and return," said Jalel Gasmi, head of Granada Travel Services, a tour operator attending the Fitur international tourism gathering in the Spanish capital.

Despite the annual rise, Marcus Lee, heading the Welcome China agency, said the sector could not rest on its laurels.

For Chinese visitors, security "is the first thing they ask about" beyond visa regulations and often poor flight connections in the Middle East, said Lee.

Security concerns aside, Lee said rising purchasing power means the Chinese tourist takes a different approach compared to 20 years ago when, "for example ... coming to Europe they wanted to see ten countries in ten days.

"That's no longer the case and we are concentrating on one country over ten days," said Lee.

- Egyptian turnaround -

In the case of Egypt, tourist numbers soared 55 percent last year, even as European numbers dipped, with Chinese and visitors from Egypt's neighbours taking their place.

Visitor profiles have changed since military man Abdel Fattah al-Sisi came to power in 2014 and especially since the 2011 overthrow of longtime Hosni Mubarak.

Before then, "the European market, including Russia, accounted for almost 80 percent (of tourists) but now, 52 percent," said Hesham El Demeiry, head of the Egyptian tourist authority, adding Chinese and Indian visitors rose from 5 to 12 percent while tourists from Egypt's neighbours doubled their share from 15 to 30 percent.

Turkey, meanwhile, is back in business after the fallout from the July 2016 coup saw visitor numbers slide by a third, before a similar rise last year.

Ankara is out to keep on attracting more visitors from Russia -- whose tourists poured in during 2017 -- as well as neighbours including Iran and Ukraine.

The downside, according to Turkish tour operator Ahmet Okay, is that the newcomers are likely to spend fewer tourist dollars than their EU or US counterparts.

Tunisia is also on the way back thanks to a surge in Russian and Chinese visitors with a 23 percent rise in visitors last year over 2016.

A $16 billion deal with Emirates airline for A380 superjumbos will give Airbus "at least 10 years of visibility", the European manufacturer's CEO Tom Enders said in an interview published Sunday.

Emirates announced the deal on Thursday to buy 36 Airbus A380s - just days after the group said it would have to halt production without new orders.

The deal is "excellent news" and "a sign of confidence on the part of a company that has built its strategy on growth around the plane," Enders told France's Journal du Dimanche newspaper.

It "gives us at least 10 years of visibility."

Emirates said it had placed firm orders for 20 of the double-decker aircraft with options for a further 16. Deliveries are scheduled to start in 2020.

The airline is already the world's biggest customer for the A380 with 101 in its fleet and 41 more firm orders previously placed.

Airbus hopes that by continuing the program for the next 10 years or even beyond, potential customers of the A380 will decide to order the aircraft, especially in China.

The group's decision in 2007 to pursue the A380, capable of packing in 853 seats, was diametrically opposed to rival Boeing's bet on the Dreamliner, marketed as a more efficient plane that could be used for both medium and long-distance flights.

But the economics of the four-engine A380 have proved daunting, with airlines having to operate every flight at full capacity in order to make a profit.

Airbus sales director John Leahy had said on Monday that the company would have to halt the A380 program unless Emirates placed another order.

Enders, 59, told the Airbus board of directors last month that he would not seek reappointment as CEO when his current term ends in April.

It is over a year since Bashar al-Assad's regime, with the help of Russian air strikes and barrel bombs, pounded the rebel-held east of Aleppo into submission.

Buildings were flattened, those who survived were left terrorised, hungry and filled with despair, and the stench of dead bodies rose up from the rubble as families searched for their loved ones.

Now, having largely destroyed the city it sought to control, the Assad regime wants the world to visit what remains: as a tourist destination.

This week the Syrian government is advertising Aleppo, along with other destinations in Syria, at the Fitur International Tourism Trade Fair in Madrid, "promoting" the country's attractions to the world.

It is the first time Syria has attended the trade fair since 2011, before the war broke out.

Along with the ruins of Aleppo, it also encourages people to visit the ancient Roman-era ruins of Palmyra, the UNESCO-listed archaeological site which was twice controlled by the Islamic State (IS) group.

IS fighters blew up some of the temples and burial towers before being forced out of the city for the final time last year by Syrian government forces and their Russian backers.

"This year is the time to rebuild Syria and our economy," Bassam Barsik, director of marketing at the Syrian Ministry of Tourism, told AFP.

Barsik said 1.3 million foreign visitors travelled to Syria last year, although that figure includes those who came from neighbouring Lebanon for only one day.

"We're targeting two million visitors this year," he said.

He argued that religious destinations, such as the historic Christian town of Maaloula, one of the last places on earth where Aramaic is still spoken, are still a draw to tourists.

Damascus, Tartus, Latakia and the historic Crusader castle of Krak des Chevaliers close to the border with Lebanon, although damaged by bombing, are other possible attractions.

"In 2017, the army controlled much of the country, and that was a big help to promote Syria abroad and attract tourist groups again," said Barsik.

Most countries advise citizens against all travel to Syria.

The war has displaced millions of people and is estimated to have claimed the lives of at least 340,000 people since 2011.

Source: AFP

The Middle East's largest airline, Emirates, announced Thursday it struck a deal with Airbus to purchase 20 A380 aircraft with the option to buy 16 more in a deal worth $16 billion, throwing a lifeline to the European-made double-decker jumbo jets.

The Dubai-based Emirates already has 101 A380s in its fleet and 41 more on order, making it the largest operator of the jumbo jet.

"This new order underscores Airbus' commitment to produce the A380 at least for another ten years," said Airbus chief salesman John Leahy.

"This order will provide stability to the A380 production line," Emirates Chairman and Chief Executive Sheikh Ahmed bin Saeed Al Maktoum said in a statement after the deal was signed in Dubai on Thursday morning.

Emirates, which is owned by the Dubai government in the United Arab Emirates, said the additional A380s will be delivered to the airliner from 2020 onwards and that some of the new A380s will be used as fleet replacements.

Airbus chief salesman John Leahy had warned only three days earlier that if the company couldn't work out a deal with Emirates, it would have to shut down the superjumbo's production line. Airbus has spent years and billions developing the double-decker jumbo jet, even as skeptics questioned whether it could generate enough demand to justify its cost and the bigger runways it requires.

An Airbus A380 has a list price of $445.6 million, but airlines and manufacturers often negotiate lower prices.

Airbus delivered just 15 of the planes last year, and aims to deliver 12 more this year.

Leahy told reporters Monday that Emirates is the only airline with the ability to commit to a minimum of six planes a year for a minimum of eight to 10 years, or what is needed to make the Airbus program viable.

"It's positive news for both sides," airline analyst John Strickland of JLS Consulting said. "The A380 is critical to Emirates' hub-and-growth strategy and equally the airline is key to Airbus' continuation of the program. It will be a great relief to Airbus to have secured this order, but they have to work aggressively to secure orders from other airlines too now."

Dubai ruler Sheikh Mohammed bin Rashid Al Maktoum said the deal reflects Emirates' commitment to advancing ``Dubai's vision to grow further as a world-class destination and aviation hub.'' Dubai's main airport, where Emirates is based, is among the busiest in the world with more than 80 million travelers passing through in 2016.

Airbus tweeted news of the deal, saying it was "glad to announce" Emirates' commitment to the A380.

Shares in Airbus rose on the news of the deal, gaining 2.2 percent on the day, to 91.67 euros in Paris.

At Dubai's biennial Air Show in November, Airbus suffered an embarrassment when it was scheduled to announce it had a struck a deal with Emirates for its A380, only to see Boeing sit on the podium with the airline and sign a $15.1 billion deal.

Emirates' fleet relies solely on the Airbus 380 and the Boeing 777 for its flights.

Source: AFP

The US Supreme Court said Friday it will review President Donald Trump's latest travel ban affecting citizens from six Muslim majority countries plus North Korea and Venezuela.

In what could prove decisive in a legal battle that has roiled the first year of the Trump administration, the high court will rule on whether the president exceeded his powers and engaged in religious discrimination in the third rendering of the ban.

Lower courts in California, Hawaii and other states have repeatedly ruled that Trump's order targets Muslims in violation of the US Constitution.

"We have always known this case would ultimately be decided by the United States Supreme Court," said state Attorney General Doug Chin of Hawaii, which has repeatedly fought the travel bans.

"This will be an important day for justice and the rule of law. We look forward to the Court hearing the case."

The conservative-tilting court last month rejected calls for a freeze on the ban, which targets visitors from Chad, Iran, Libya, Somalia, Syria and Yemen, allowing Trump to implement it while it was being challenged in lower courts.

The US administration has rewritten the ban twice, adding more national security justifications in the latest iteration in September and including citizens of North Korea and Venezuela to counter the argument the government was singling out Muslim countries.

- National security, not religion -

Trump's initial travel ban, decreed a week after he took office, triggered chaos out at US airports, with travelers detained upon arrival, and nationwide protests against a measure seen as discriminatory -- though Trump said it aimed to keep out extremists.

Court challenges have seized upon Trump's repeated comments against Muslims, starting with his campaign vow to ban them from entering the country, to make the case that they were the intended target.

The first ban was quickly blocked in court, as was a modified version removing Iraq from the list of countries.

Regarding the third version, critics noted that the United States welcomed no more than a handful of annual visitors from North Korea, and in Venezuela's case, the ban was made specific to a number of high-ranking officials in a government already facing US sanctions.

One key difference in the latest version of the ban was that it was open-ended, whereas the previous two versions were set for 90 days, ostensibly for the government to review security threats from the countries.

The Supreme Court will review those arguments, but also whether Trump has the executive power to order such a ban.

"Every version of the ban has been found unconstitutional, illegal, or both by federal trial and appellate courts," said Omar Jadwat, director of the Immigrants' Rights Project at the American Civil Liberties Union, which has supported Hawaii in its court challenge.

"The Supreme Court can and should put a definitive end to President Trump's attempt to undermine the constitutional guarantee of religious equality and the basic principles of our immigration laws, including their prohibition of national origin discrimination," Jadwat said.

Lebanon thwarted jihadist plans to attack places of worship and government buildings over the holidays after gaining rare access to an Islamic State group operative, the interior minister said Friday.

Nuhad Mashnuq said at a press conference that an elite unit in Lebanon's Internal Security Forces (ISF) had arrested an Iraqi IS commander in Beirut last June.

The commander, known as Abu Jaafar al-Iraqi, had been tasked by the IS leadership to establish an IS network in Lebanon, according to information presented at the briefing.

This network would not only carry out attacks in Lebanon, but could have potentially hosted top IS officials fleeing Iraq and Syria.

Full details of the operation and the current whereabouts of Abu Jaafar were not revealed.

But Mashnuq said that for five months after the Iraqi commander's arrest the ISF kept tabs on him through a mysterious "volunteer," who had gained his trust and rented a home for him that was bugged by Lebanese authorities.

"This is one of those rare operations where you have someone this important in the terrorist organisation, and you're able to use him for five months to find out about the plans supposed to happen during the holidays, against places of worship and government buildings," Mashnuq told reporters.

"The nature of this operation, as we explained, is unprecedented in the Arab world," he claimed.

IS's now-defunct "caliphate" spread across swathes of Iraq and Syria but never officially included territory inside Lebanon.

Jihadists from IS were entrenched along the Lebanese-Syrian border for several years however and claimed several deadly attacks in Lebanon.

According to a film shown at Friday's briefing, Lebanese authorities had worked since the end of 2016 to lure Abu Jaafar to Lebanon with the help of Arab and international authorities.

An intermediary, trained in Turkey and cooperating with the ISF, rented out an apartment for Abu Jaafar that was being surveilled and met with him there several times.

Audio and video clips from the apartment were aired during the press conference.

Abu Jaafar allegedly asked IS leaders in Iraq and Syria for help in planning attacks on New Year's Eve in Lebanon, and they said they may be able to provide suicide belts and automatic weapons.

He was ultimately unable to pull together an operation, the clip said.

The film mentioned one Lebanese IS member who had been arrested as part of the year-long operation. The minister did not mention any other arrests nor did he elaborate on the intelligence gained.

 Emirates Airlines said Thursday it has struck a $16 billion deal to buy 36 Airbus A380 superjumbos just days after the European manufacturer said it would have to halt production without new orders.

 Airbus got an early jump on rival Boeing for 2018 with news Tuesday that low-cost Mexican airline Volaris has ordered 80 of its popular A320 planes for a total $9.3 billion.

Spectacular lava "fireworks" shooting from its crater are drawing tourists to the Philippines' most active volcano, authorities said Tuesday as scientists warned of a potential dangerous eruption within days.

Lava spurting from Mayon volcano lit up the sky overnight Monday in what scientists said was a sign of increasing activity that prompted official calls for evacuation of areas under threat from a major eruption.

But even as thousands of residents flee, tourists are flocking to the area, some 330 kilometres (205 miles) southeast of Manila to watch and photograph the spectacle, Danny Garcia, a spokesman for Albay province told AFP.

"It's a spectacle to watch. It's beauty and fury in one, especially at night. But it's a natural phenomenon so we don't know when an (explosive) eruption will happen," Garcia added.

Mayon, a near-perfect cone that also draws thousands of tourists during its periods of quiet, rises 2,460 metres (8,070 feet) above Legazpi, a city of about 200,000 people surrounded by a largely agricultural region.

The state volcanology institute described the natural pyrotechnics as "short-duration lava fountaining", an escalation from the slow lava flow from the crater a day earlier.

"If lava has enough gas and material, fragments will be flown up into the air, like the fountain you light up on New Year's Eve," Renato Solidum, head of the Philippine Institute of Volcanology and Seismology (Phivolcs), told AFP.

"There is more force involved when the lava would exit so it's more intense than just the lava oozing out."

Ash also rose two kilometres into the sky in the past 24 hours, enveloping surrounding areas in a grey carpet as more residents left their homes for safety.

About 30,000 people in and around Legazpi have fled their homes, the provincial government said on Tuesday, more than double the official count on Monday.

Local governments are tapping emergency funds and working to ensure clean water supply, officials said.

However hotels reported getting more tourist bookings while people flocked to viewing decks to watch the volcano from a distance, the provincial government said although it gave no specific figures.

The Philippines is part of the Pacific "Ring of Fire" of islands that were formed by volcanic activity, and is perennially under threat from 22 active volcanoes.

The most powerful explosion in recent years was the 1991 eruption of Mount Pinatubo, about 100 kilometres northwest of Manila, which killed more than 800 people.

Scientists said it was highly unlikely Mayon would have a similar eruption.

"It erupts quite often, and volcanoes that erupt frequently tend to have smaller eruptions than those that erupt less frequently," David Rothery, a geosciences professor at The Open University in Britain, told AFP.

Source: AFP

China's sole operational aircraft carrier passed through the Taiwan Strait Wednesday, the island's defence ministry said, as Beijing steps up pressure on its democratic rival.

It comes weeks after Taiwan's President Tsai Ing-wen warned against what she called China's "military expansion" -- the increase of air and naval drills around the island since she came to power in May 2016.

Beijing views the self-ruling island as part of its territory, to be reunified at some point.

Cross-strait relations have become increasingly frosty as Tsai refuses to acknowledge Taiwan is part of "one China".

The aircraft carrier -- a second-hand Soviet ship -- caused a stir in Taiwan when it first entered the strait in January last year, viewed as a symbolic show of strength by Beijing.

The defence ministry said the Liaoning carrier and accompanying vessels entered Taiwan's air defence zone early Wednesday morning and left by noon.

The fleet, which earlier this month had sailed south through the strait that separates Taiwan and China, was seen again heading north, it said.

As in the past two crossings, the ship did not enter Taiwanese waters, the ministry added.

"The military conducted surveillance and took responsive measures during the whole process," the ministry said in a statement.

"There were no unusual activities during the time the fleet passed through the Taiwan Strait. We urge people not to worry," it added.

Built nearly 30 years ago, the carrier was commissioned in 2012 after extensive refits.

According to Taiwan's defence ministry, Chinese warplanes conducted 25 drills around Taiwan between August 2016 and mid-December last year.

The latest Liaoning appearance also comes after tensions were further fuelled by China starting new flight routes in the Taiwan Strait without consulting Taiwan.

Taipei questioned the move as politically motivated and called it reckless, saying it threatened the island's security and could compromise flight safety.

Source: AFP

Airbus said on Monday that it might have to end production of the double-decker A380 superjumbo jet, having booked no new orders for the plane in two years.

Spain is set to replace the United States as the world’s second most popular tourism destination while France has retained the top spot, the UN World Tourism Organisation has said.

It is expected that Spain will take the second position with 82 million visitors last year, UNWTO head Zurab Pololikashvili said.

Definitive figures will be published in the spring.Pololikashvili did not give any details about the US, nor did he explain why Spain took the second spot despite a terror attack in August and an independence crisis in tourism magnet Catalonia, home to Barcelona and the Costa Brava.

John Kester, head of tourism trends at the UN agency, said “everything indicates” France would retain its top spot in 2017 – a good year for the industry as the number of global tourists leapt 7% on 2016, the biggest increase in seven years.

Europe was the star of the show as it attracted a large number of visitors, up 8% from the previous year, lured in particular by the Mediterranean’s sea and sun.

This contrasts with 2016 figures that saw security fears hit visitor arrivals in Europe.“We do see that demand for European destinations has been very strong,” said Kester. “We also see important recovery in France,” he added, without giving further details about a country that was hard hit by extremist attacks.

Spain also suffered a deadly jihadist attack in August in Catalonia, the same region whose leaders tried unsuccessfully to break away from Spain, triggering a major crisis that shook Europe.

And while the political crisis sparked a drop in visitor numbers to the north-eastern region as massive demonstrations were staged following the independence bid, it does not appear to have dented overall tourist figures for Spain in 2017.

In 2016, Spain welcomed 75.3 million visitors, just behind the US with 75.6 million, while France easily remained the world leader with 82.6 million visitors, according to the UNWTO.

International tourism to the US shrank during the first five months of Donald Trump’s presidency, according to the US International Trade Administration.

Arrivals fell 5% in the first quarter and 3% in the second quarter, official figures show.

The Spanish prime minister, Mariano Rajoy, had already announced last week that tourism numbers had soared, saying earnings in a sector that accounts for 11% of Spain’s gross domestic product rose 12% to €87bn in 2017.

Less than two weeks ago, the lavish Ritz-Carlton Hotel in Riyadh was playing host to some of the world's top executives. Now it appears to have become a detention center for Saudi royals ensnared in a corruption investigation.
At least 17 Saudi princes and top government officials were arrested on Saturday after King Salman bin Abdul Aziz ordered the unprecedented purge.

Reuters and the Wall Street Journal reported that at least some of those arrested were being held in the 5-star hotel. CNN was unable to independently verify the reports, and the hotel's owner -- Marriott (MAR) -- would not expand on a statement issued Sunday that it was "evaluating the situation."

There's plenty of evidence of unusual activity, however. Booking websites show the 492-room hotel in the Saudi capital as completely unavailable until the end of November. A member of The Ritz-Carlton's marketing team said Monday that it would only start taking bookings again from December 1.

A CNN producer in Riyadh visited the Ritz-Carlton on Tuesday and said the entrance gates to the hotel were closed, although there was no obvious security presence outside the 52-acre property.Social media was buzzing with speculation about the Ritz-Carlton after tweets suggested guests were forced to leave the hotel over the weekend. And communications with the hotel have been cut off.

"Due to unforeseen circumstances, the hotel's internet and telephone lines are currently disconnected until further notice," according to the hotel's web page on Monday.Among those arrested are billionaire businessman, Prince Alwaleed bin Talal, the former head of the royal court Khaled Al-Tuwaijri, and Saudi media mogul Waleed Al-Ibrahim.

The Ritz-Carlton would make a luxurious detention center for some of the Middle East's richest men. Its rooms include two-bedroom Royal suites, and it offers a "gentlemen's-only spa," several high-end restaurants and 52 acres of gardens.

It is also where U.S. President Trump stayed during his visit to the kingdom in May. An image of his face was projected on the exterior of the hotel.In late October it was the venue for a huge investment conference, dubbed "Davos in the Desert." It attracted more than 3,500 business leaders and government officials including HSBC boss Stuart Gulliver, International Monetary Fund chief Christine Lagarde and Softbank CEO Masayoshi Son.

The conference was spearheaded by Crown Prince Mohammed bin Salman, who is pushing an ambitious reform plan that is aimed at reducing the country's dependence on oil over the next decade.

The prince is also leading the anti-corruption committee that has the authority to investigate, arrest, issue travel bans and freeze the assets of those it finds corrupt.

source: AFP

The word "shithole" -- which President Donald Trump allegedly used to describe countries from which he does not want immigrants coming to the US -- has been projected along with other messages onto his Washington hotel.

Trump is said to have made the remarks -- which he has denied but which a US Senator who was present confirmed -- at a meeting with legislators, setting off a firestorm of criticism when they became public."NOT A DC RESIDENT? NEED A PLACE TO STAY? TRY OUR SHITHOLE. THIS PLACE IS A SHITHOLE," read successive messages projected over the entrance of the Trump International Hotel in central Washington, according to a video posted on social media.

A flood of grinning feces emojis then stream out of the hotel's entrance as "SHITHOLE" appears in larger text above it.

Another clip shows the word "SHITHOLE" over the entrance along with an arrow pointing to the door.

The videos were posted on the Twitter account of Robin Bell, who has staged other projection protests and been likened to a "hit-and-run editorial writer" by The Washington Post.

The alleged expletive emerged out of a Thursday meeting between Trump and legislators.

The topic? Immigration reform.

After lawmakers raised the issue of protections for immigrants from African nations, Haiti and El Salvador, the president reportedly demanded to know why the United States should accept immigrants from "shithole countries," rather than -- for instance -- wealthy and overwhelmingly white Norway.

Trump on Friday tweeted a convoluted denial about the comments, which were reported by The Washington Post and The New York Times.

But Democratic Senator Dick Durbin said Trump had specifically asked, "Do we need more Haitians?" before launching into a diatribe about African immigration.

Trump then "said things which were hate-filled, vile and racist," Durbin said, adding that "shithole" was "the exact word used by the president, not just once but repeatedly."

source: AFP

A Pegasus Airlines flight skidded off the runway of a Turkish coastal airport and plunged down a steep slope on the edge of the Black Sea, ending up only meters from the water’s edge.

None of the 168 people on board was hurt in the incident, but passengers spoke of panic as the aircraft tipped nose first towards the sea.

Just after the flight from Ankara landed at the Black Sea city of Trabzon there was a loud noise, Fatma Gordu was quoted as saying by the state-run Anadolu news agency.

“We tilted on the side and the front of the plane went down and the back of went up,” she said. “There was a huge panic, people were shouting.”

When the plane came to a halt in thick mud, passengers smelt fuel.“We thought there would be fire,” Gordu said. “People panicked - there were pregnant women and children.”

Video on social media showed fire crews pumping water over the plane on Saturday night.“It was a miracle,” said another passenger, Yuksel Gordu. “We could have burned, we could have exploded or we could have gone into the sea.”

Trabzon governor Yucel Yavuz said all passengers were safely taken off the plane and some had gone to hospital as a precaution. “They were all OK,” he told Anadolu.

Pegasus Airlines said in a statement that the Boeing 737-800 aircraft “had a runway excursion incident” as it landed but the 162 passengers, two pilots and four cabin crew were unhurt.

source: AFP

US President Donald Trump vehemently denied Sunday that he was a racist, after his vulgar disparagement of African countries and Haiti complicated a bipartisan deal on immigration.

"I'm not a racist. I am the least racist person you have ever interviewed," Trump told reporters at the Trump International Golf Club in West Palm Beach, Florida, where he was having dinner with Republican House Majority Leader Kevin McCarthy.

Trump appeared to give up for dead an immigration deal, coming back on the issue in a pair of early morning tweets three days after reportedly referring to African and Haitian immigrants as coming from "shithole countries," triggering global condemnation.

"DACA is probably dead because the Democrats don't really want it," Trump tweeted, referring to the Deferred Action for Childhood Arrivals program at the heart of the immigration impasse.

Hundreds of thousands of immigrants brought to the country illegally as children -- so-called "Dreamers" -- face deportation unless a compromise can be reached that would grant them rights to stay.

A bipartisan deal to resolve the Dreamers issue in return for changes demanded by Republicans in the way visas are allocated collapsed in acrimony Thursday with Trump's remarks, which were widely denounced as racist.

"I think this man, this president, is taking us back to another place," John Lewis, a Georgia congressman who was on the front lines of the 1960s civil rights movement, said Sunday on ABC's "This Week."

"I think he is a racist."

- 'Defend the indefensible' -

Senator David Purdue, a Republican from Georgia, called charges that Trump is racist "ridiculous" and his reported remarks a "gross misrepresentation" of the White House meeting on immigration.

But other Republicans, pained by the turn of events, spoke out against the president as debate over the slur spilled into Sunday television talk shows.

"I can't defend the indefensible," said Mia Love, a Haitian-American congresswoman from Utah who campaigned on Trump's behalf in the country's Haitian community.

"I still think that he should apologize," she said on CNN's "State of the Union." "I think that there are people that are looking for an apology. And I think that that would show real leadership."

Trump's "shithole countries" remarks were confirmed by Senator Dick Durbin, a Democrat who attended the White House meeting, after it was reported by The Washington Post and other media.

But Trump has stuck with a vague denial that he used such language, and so far has made no move to apologize, hurting prospects for a deal on DACA and making life uncomfortable for Republicans as they look ahead to midterm elections this year.

The president sought to shift from the defensive by portraying Democrats as not truly interested in an immigration deal.

"They just want to talk and take desperately needed money away from our Military," he tweeted.

"I, as President, want people coming into our Country who are going to help us become strong and great again, people coming in through a system based on MERIT. No more Lotteries! #AMERICA FIRST."

In Florida, Trump added: "I don't think Democrats want to make a deal. The folks from DACA should know the Democrats are the ones that aren't going to make a deal."

He insisted the White House was "ready, willing and able to make a deal on DACA."

- 'A deal to be had' -

But Senator Jeff Flake, a Republican who has been critical of Trump, said Democrats were serious about a bipartisan deal on immigration.

He said the compromise presented to the White House Thursday would end a visa lottery system and so-called chain migration under which legal immigrants can bring in family members. The Dreamers would be allowed to stay but not become US citizens, according to Flake.

The senator from Arizona said Trump's remarks came in reaction to an element of the deal that would reallocate the visas given out in a lottery to immigrants who are currently in a protected status, like Haitians and the Dreamers.

"I believe there is a deal to be had," he said.

Trump announced in September he was scrapping the DACA program but delayed enforcement to give Congress six months -- until March -- to craft a lasting solution.

On Tuesday, however, a federal judge ordered the government to keep DACA going pending resolution of court challenges to the president's decision.

Meanwhile, dimming prospects for a 2018 spending agreement means lawmakers will have to resort to a temporary funding extension to avert a government shutdown on January 19.

source: AFP

The Air France-KLM group on Saturday denied it had made an offer for ailing airline Alitalia, a day after Italy's industry minister listed it among three bidders.

"Air France-KLM denies making an offer to buy Alitalia," a statement said adding that the group "had not taken part in the process launched by Italian authorities."

On Friday, Economic Development Minister Carlo Calenda said on the La7 television channel that there were three offers: one from German airline giant Lufthansa, another from US private equity group Cerberus, and a joint EasyJet-Air France bid.

"The presence of Air France is not sure and I will verify on Monday with the Alitalia administrators," Calenda however said.

"I can confirm that the goal is to complete a deal before the elections", Calenda added, referring to Italy's general election due on May 4th.

Alitalia, struggling to compete with low-cost European rivals, went into administration last May at the request of its shareholders after staff rejected job and salary cuts as part of a two-billion-euro rescue plan.

Workers had rejected a restructuring plan that called for cutting 1,700 jobs at Italy's largest airline, which is 49 percent owned by Abu Dhabi-based Etihad Airways.

Calenda admitted that there were likely to be job losses whatever the government's decision on the three bids, but promised these would be "kept to a minimum".

According to local media reports, Lufthansa wants to lay off 2,000 employees -- almost a quarter of the total on the aviation side -- if its offer for Alitalia is accepted.

Source: AFP

Algeria on Friday marked the Berber New Year as a public holiday, a first for the North African region where indigenous peoples have long suffered marginalisation.

Members of the Berber community -- descendants of North Africa's pre-Arab inhabitants -- feasted on traditional meals of couscous and chicken, danced, played traditional games, and held horse parades as they do each year.

But for the first time official events marking the Yennayer celebration were also being held across the entire country of some 40 million people, roughly a quarter of whom are Berber.

"Traditionally we celebrate Yennayer with our families around a copious meal of poultry and dried meat," explained Samia Moumni, as she cooked couscous under a small tent in the town of Tizi-Ouzou.

Some 3,000 people were expected to flock to a stadium in the northern town -- centre of the mountainous Berber region of Kabylie -- to enjoy a communal meal later in the day.

The Berbers -- who refer to their community as Amazigh -- have long fought for greater recognition for their ancient language and customs, over-shadowed by Arabic culture in Algeria and across the broader region.

The Yennayer New Year has been celebrated annually for a long time in Algeria -- but veteran leader Abdelaziz Bouteflika decreed in December that it would become an official holiday for the first time "to strengthen national unity."

The Berber calendar is an agrarian system, based around the seasons and agricultural work, that was inspired by the Julian calendar.

It was brought back to life in the second half of the 20th century by activists who set year zero as the estimated ascension of Berber ruler Shoshenq I to the throne of Egypt in 950 BC.

On the eve of year 2968, Berbers in the village of Ath El Kacem braved the freezing cold to tuck into the communal meal prepared all evening by women who chanted songs and traditional poems.

"This year, Yennayer has a special flavour," said Na Ouerdia Mohamedi, one of the village's elders.

Nearby Kahina Belaidi, 20, insisted that "the decision of President Bouteflika will help strengthen the Amazigh identity of Algeria."

The Berbers' Tamazight language was first given official status in Algeria in 2002 after bloody riots a year before that left 126 people dead in Kabylie, before being enshrined as a state language alongside Arabic in the 2016 constitution.

On Wednesday the country's interior ministry released its first ever official communique in Tamazight.

The United States unveiled a way to warn its citizens about the dangers of foreign travel Wednesday, with a four-point safety ranking system for countries and an interactive world map.

Ten war zones and failed states are ranked Level Four, "Do Not Travel": Afghanistan, Central African Republic, Iran, Iraq, Libya, Mali, Somalia, South Sudan, Syria and Yemen.

North Korea is also Level Four, with the additional restriction that US law prohibits American travelers from using their passports there, effectively banning visits.

But some of the other country ratings may raise eyebrows -- or international anger -- even if the State Department says it is only presenting existing advice in a new format.

Officials insisted the change was to make advice clearer to US travelers, but the travel warning system has long been controversial and often offends foreign capitals.

"These are not political documents. These are simply based on our assessment of the security situation," senior consular official Michelle Bernier-Toth said.

Major European allies like Britain, France and Germany are Level Two, "exercise increased caution," while authoritarian Uzbekistan gets Level One, "exercise usual precautions."

On Tuesday, US senators heard State Department officials say someone known to the Cuban government has a mystery weapon that they use to cause brain trauma to Americans in Havana.

But Cuba is ranked only Level Three, "Reconsider Travel."

Officials insisted the change was to make advice clearer to US citizens that plan to travel.

Some countries have complained in the past that warnings exaggerate dangers and damage tourism, or suspect they have been subjected to a US diplomatic rebuke.

But each warning is accompanied by a country page on the travel.state.gov website, explaining what specific threats have been identified and why the advice has been given.

Western European capitals, for example, while prosperous and politically stable, have seen recent attacks by Islamist militants in areas popular with tourists.

Mexico, a Level Two country, has complained in the past that US alerts hurt tourism, but the site gives a detailed breakdown of areas to avoid because of drug cartel violence.

The United States itself is not rated in the new system.

But as a rough guide, America's per capita murder rate of 4.88 per 100,000 people puts it between Cuba at 4.72 ("reconsider travel") and Somalia at 5.56 ("do not travel").

Source: AFP

Burnishing its reform credentials ahead of Prime Minister Narendra Modi’s hard-sell of the India growth story at the World Economic Forum (WEF) in Davos later this month, the cabinet on Wednesday unveiled measures to liberalize the foreign direct investment (FDI) regime in aviation, single-brand retail, power exchanges and real estate broking.

The government allowed foreign airlines to buy a stake of up to 49% in Air India with prior government approval ahead of the state-owned airline’s proposed privatization. Existing rules allow foreign airlines to own as much as 49% in private Indian airlines, but not in Air India.

After a cabinet meeting chaired by Prime Minister Modi, the government clarified that substantial ownership and effective control of Air India will remain with Indian nationals. “Foreign investments in Air India including that of foreign airlines shall not exceed 49% either directly or indirectly,” the government said in a statement.

Mint reported on Tuesday that the government will invite expressions of interest from those interested in buying Air India Ltd after the budget presentation on 1 February, citing aviation secretary Rajiv Nayan Choubey.

Air India had total debt of about Rs48,877 crore at the end of March 2017—Rs17,360 crore of aircraft loans and Rs31,517 crore of working capital loans.

The government has appointed EY to advise it on the privatization exercise, in which the invitation seeking expressions of interest from would-be bidders is the first step. Cyril Amarchand Mangaldas will be the legal adviser.

“It is a major reform and national economic policy decision—not just limited to aviation. It sends a very important signal to the global investors,” aviation consulting firm CAPA Centre for Aviation said in a note on Wednesday. “We expect a significant interest from foreign airlines though the offer and conditions attached will determine the level of participation in the bids. See 4-6 serious bids for AI subject to bid conditions.”

IndiGo, run by InterGlobe Aviation Ltd, and Tata Sons Ltd have shown interest in Air India’s operations. Turkey’s Celebi Aviation Holding, Bird Group, Menzies Aviation Plc. and Livewel Aviation Services Pvt. Ltd have shown interest in the national carrier’s subsidiaries.

The International Air Transport Association (IATA) said the government’s move was inclusive in that it allows FDI in the single airline not covered by the foreign investment policy. “At the same time, it is important that the government ensures that airlines in India have the most conducive operating and regulatory environment to compete effectively,” Albert Tjoeng, assistant director, corporate communications for the Asia Pacific at IATA, said in a statement.

The cabinet also approved 100% FDI in single-brand retail without the requirement of prior government approval. India allows 100% FDI in single-brand retail, but investment beyond 49% requires prior government approval.

The cabinet eased the local sourcing rule for foreign single-brand retailers; for five years, such entities are not required to meet the 30% target for local sourcing by their Indian units if they are already doing so for their global operations, it said. So far they have been required to source locally 30% of the value of goods purchased for their Indian business initially as an average of five years; later they were required to meet the requirement on a yearly basis.

Janne Einola, country manager at the India unit of Swedish fashion retailer H & M Hennes & Mauritz AB, said: “We are happy to hear about the India sourcing requirement being offset towards H&M’s global sourcing from India; while it is in the right direction, we look forward to the same relaxation for the period beyond the initial five years as well, which works towards ease of doing business in India.”

The government has allowed foreign portfolio investors to purchase stakes of up to 49% in power exchanges directly under the automatic routes. So far, such investors were restricted only to investments in the secondary market.

The government also clarified that real-estate broking services aren’t real estate business and are, therefore, eligible for 100% FDI under the automatic route.

For foreign investments from so-called countries of concern that currently include Pakistan and Bangladesh, FDI applications for sectors under the automatic route will now be vetted by the industry department rather than the home ministry.

The measures were announced ahead of Modi’s visit to Davos to attend the WEF, where he is expected to talk about India’s growth potential and court foreign investment.

Harveen Ahluwalia in New Delhi and Soumya Gupta in Mumbai contributed to this story.

Source: AFP