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Tag: Aerospace and defense industry

  • Delta CEO says carrier went ‘too far’ in SkyMiles changes, promises modifications after frequent flyer backlash

    Delta CEO says carrier went ‘too far’ in SkyMiles changes, promises modifications after frequent flyer backlash

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    Delta Air Lines Boeing 717-200 airplane as seen on the final approach landing at New York JFK John F. Kennedy International Airport, NYC, USA.

    NurPhoto / Contributor

    Delta Air Lines CEO Ed Bastian said the airline will make “modifications” in the next few weeks to its loyalty program after a recently announced overhaul that would make it more expensive for many travelers to earn elite status and get into airport lounges was met with a backlash from customers.

    “No question we probably went too far,” Bastian said at the Rotary Club of Atlanta on Monday.

    The program changes, which Delta unveiled earlier this month, would reward customers with elite status based on how much they spent, a model similar to that of American Airlines, and reduce access to Delta popular airport Sky Club lounges for many American Express cardholders.

    JetBlue Airways tried to capitalize on some customers’ anger over Delta’s changes by offering frequent flyer status matching, saying, “we’ve made it easy for you to cozy up to a new loyalty program and see where it goes.”

    Delta has been grappling with a surge in elite travelers, bolstered by Covid pandemic and post-pandemic spending, and swarms of travelers trying to get into its lounges, leading to long lines for many customers. The airline and rivals including American and United have been racing to build bigger airport lounges to cater to swelling numbers of big spenders.

    Bastian said the airline will announce the updated program changes in the coming weeks. A Delta spokesman declined to comment further on the changes.

    “It’s gotten to the point, honestly, where we have so much demand for our premium product and services that are far in excess of our ability to serve it effectively in terms of our assets,” Bastian said.

    He said that over Covid, the airline has doubled the number of Diamond Medallion status members.

    David Neeleman, CEO of Breeze Airways and founder of JetBlue, told CNBC on Wednesday that he has Delta Medallion status and that he tries to use Delta’s airport lounges but that sometimes “there’s a big line and it’s not worth it.”

    Delta last year announced several changes to crack down on overcrowding at the clubs, such as barring employees from using them when flying standby with company travel privileges, even if they had qualifying credit cards. The Atlanta-based carrier also raised prices for club memberships for regular customers.

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  • SpaceX wins first Pentagon contract for Starshield, its satellite network for military use

    SpaceX wins first Pentagon contract for Starshield, its satellite network for military use

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    An uncaptioned image posted on the company’s website appears to show Starshield technology in orbit.

    SpaceX

    The Pentagon has awarded Elon Musk’s SpaceX its first confirmed contract for the Starshield network it’s developing, a military-specific version of the company’s Starlink satellite internet system, the defense agency said Wednesday.

    A Space Force spokesperson confirmed that SpaceX on Sept. 1 was awarded a one-year contract for Starshield with a maximum value of $70 million. The award came alongside 18 other companies through a program run by the Space Force’s commercial satellite communications office.

    “The SpaceX contract provides for Starshield end-to-end service (via the Starlink constellation), user terminals, ancillary equipment, network management and other related services,” Space Force spokesperson Ann Stefanek told CNBC.

    SpaceX did not immediately respond to CNBC’s request for comment on the Starshield contract.

    The company unveiled Starshield last year as a new business line. The Pentagon is already a high-value buyer of the company’s rocket launches and had shown increasing interest in its Starlink satellite internet.

    SpaceX has given few details about the intended scope and capabilities of Starshield. It markets the service as the center of an “end-to-end,” dedicated offering for national security with capabilities distinct from its Starlink consumer and enterprise network.

    Sign up here to receive weekly editions of CNBC’s Investing in Space newsletter.

    SpaceX’s award for Starshield follows its June win of a Pentagon contract to buy an undefined number of Starlink ground terminals for use in Ukraine.

    The initial phase of the Starshield contract obligates $15 million to SpaceX by Sept. 30, to provide services that support 54 military “mission partners” across Department of Defense branches, the spokesperson said.

    Bloomberg first reported the contract on Thursday.

    — CNBC’s Claudia Johnson contributed to this report.

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  • Bahrain says attack by Yemen rebels kills a Bahraini officer and a soldier on the Saudi border

    Bahrain says attack by Yemen rebels kills a Bahraini officer and a soldier on the Saudi border

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    DUBAI, United Arab Emirates — A drone attack by Yemen’s Houthi rebels killed a Bahraini officer and soldier who were patrolling Saudi Arabia‘s southern border early Monday, Bahrain’s military command said.

    The statement, carried by the official Bahrain News Agency, says “a number” of Bahraini soldiers were also wounded in the attack, without elaborating.

    The tiny island nation of Bahrain is a close ally of Saudi Arabia, which has been at war with the Iran-aligned Houthi rebels for several years. A cease-fire had largely stopped the violence, and the two sides have appeared close to a peace agreement in recent months.

    It was unclear if the attack would derail those efforts or prompt retaliation by Saudi Arabia and its allies. There was no immediate comment from the Houthis or Saudi Arabia.

    “This terrorist attack was carried out by the Houthis, who sent aircraft targeting the position of the Bahraini guards on the southern border of the kingdom of Saudi Arabia despite the halt of military operations between the warring sides in Yemen,” the Bahraini military statement said.

    Yemen’s war began in 2014 when the Houthis swept down from their northern stronghold and seized the capital, Sanaa, along with much of the country’s north. In response, a Saudi-led coalition intervened in 2015 to try to restore the internationally recognized government to power.

    The fighting soon devolved into a stalemated proxy war between Saudi Arabia and Iran, causing widespread hunger and misery in Yemen, which even before the conflict had been the Arab world’s poorest country.

    Saudi Arabia and Iran restored diplomatic relations earlier this year in a deal brokered by China, further raising hopes for an end to Yemen’s conflict. Earlier this month, Saudi Arabia welcomed a Houthi delegation for peace talks, saying the negotiations had “positive results.”

    A U.N.-brokered cease-fire had already largely halted the violence, and Yemen has seen only sporadic clashes since the truce expired nearly a year ago. But diplomats have warned that the situation remains volatile.

    Yemen’s internationally recognized government condemned the attack. Foreign Minister Ahmed Bin Mubarak said he spoke by phone with Bahrain’s chief diplomat, Abdullatif al-Zayani, offering his condolences and solidarity with Bahrain.

    Bahrain, an island nation in the Persian Gulf off the coast of Saudi Arabia, was rocked by an uprising in 2011 inspired by the Arab Spring protests elsewhere in the region. Many from the country’s Shiite majority called for the overthrow of Bahrain’s Sunni monarchy. Bahrain quashed the revolt with aid from Saudi Arabia and the United Arab Emirates, and blamed much of the unrest on Shiite-majority Iran.

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  • Inside the delicate art of maintaining America’s aging nuclear weapons

    Inside the delicate art of maintaining America’s aging nuclear weapons

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    KANSAS CITY NATIONAL SECURITY CAMPUS, Mo. — In an ultra-sterile room at a secure factory in Kansas City, U.S. government technicians refurbish the nation’s nuclear warheads. The job is exacting: Each warhead has thousands of springs, gears and copper contacts that must work in conjunction to set off a nuclear explosion.

    Eight hundred miles (about 1,300 kilometers) away in New Mexico, workers in a steel-walled vault have an equally delicate task. Wearing radiation monitors, safety goggles and seven layers of gloves, they practice shaping new warhead plutonium cores — by hand.

    And at nuclear weapons bases across the country, troops as young as 17 keep 50-year-old warheads working until replacements are ready. A hairline scratch on a warhead’s polished black cone could send the bomb off course.

    The Associated Press was granted rare access to key parts of the highly classified nuclear supply chain and got to watch technicians and engineers tackle the difficult job of maintaining an aging nuclear arsenal. Those workers are about to get a lot busier. The U.S. will spend more than $750 billion over the next 10 years replacing almost every component of its nuclear defenses, including new stealth bombers, submarines and ground-based intercontinental ballistic missiles in the country’s most ambitious nuclear weapons effort since the Manhattan Project.

    It’s been almost eight decades since a nuclear weapon has been fired in war. But military leaders warn that such peace may not last. They say the U.S. has entered an uneasy era of global threats that includes a nuclear weapons buildup by China and Russia’s repeat threats to use a nuclear bomb in Ukraine. They say that America’s aged weapons need to be replaced to ensure they work.

    “What we want to do is preserve our way of life without fighting major wars,” said Marvin Adams, director of weapons programs for the Department of Energy. “Nothing in our toolbox really works to deter aggressors unless we have that foundation of the nuclear deterrent.”

    By treaty the U.S. maintains 1,550 active nuclear warheads, and the government plans to modernize them all. At the same time, technicians, scientists and military missile crews must ensure the older weapons keep running until the new ones are installed.

    The project is so ambitious that watchdogs warn that the government may not meet its goals. The program has also drawn criticism from non-proliferation advocates and experts who say the current arsenal, though timeworn, is sufficient to meet U.S. needs. Upgrading it will also be expensive, they say.

    “They are going to have extreme difficulty meeting these deadlines,” said Daryl Kimball, executive director of the Arms Control Association, a non-partisan group focused on nuclear and conventional weapons control. “And the costs are going to go up.”

    He cautioned that the sweeping upgrades could also have the undesired effect of pushing Russia and China to improve and expand their arsenals.

    The core of every nuclear warhead is a hollow, globe-shaped plutonium pit made by engineers at the Energy Department’s lab in Los Alamos, New Mexico, birthplace of the atom bomb. Many of the current pits in use come from the 1970s and 80s. That can be problematic, because there’s a lot about plutonium’s aging process that scientists still don’t understand.

    The key radioactive atom in the plutonium pit has a half life of 24,000 years, which is the amount of time it would take roughly half of the radioactive atoms present to decay. That would suggest the weapons should be viable for years to come. But the plutonium decay is still enough to cause concern that it could affect how a pit explodes.

    President George H.W. Bush signed an order in the 1990s banning underground nuclear tests, and the U.S. has not detonated pits to update data on their degradation since. When the last tests were performed, they provided data on pits that were at most about two decades old. That generation of pits is now pushing past 50.

    Bob Webster, deputy director of weapons at Los Alamos, said scientists have relied on computer models to determine how well such old pits might work, but “everything we’re doing is extrapolating,” he said.

    That uncertainty has pushed the department to restart pit production. The U.S. no longer produces man-made plutonium. Instead, old plutonium is essentially refurbished into new pits.

    This task takes place inside PF-4, a highly classified building at Los Alamos that’s surrounded by layers of armed guards, heavy steel doors and radiation monitors. Inside, workers handle the plutonium inside steel glove boxes, which allow them to clean and process the plutonium without being exposed to deadly radiation.

    In the final production steps, a lone employee in the vault takes the almost-completed pit into both of her gloved hands and shapes it into its final form.

    “Things have to fit a certain way, and everything is by touch, by feel,” said the Los Alamos employee, who the AP has agreed not to name because she is one of only a handful of people in the U.S., and the only female, who performs this sensitive task.

    For about the last 10 years technicians have been practicing on “test” pits that aren’t ready for the stockpile. The U.S. is planning to fully recycle its first weapon-ready pit next year — and quickly increase annual production to as many as 80 new pits.

    The painstaking and hazardous work has led a government watchdog to express doubts about whether the U.S. government can meet that goal.

    “The United States has not regularly manufactured plutonium pits since 1989,” the Government Accountability Office noted in a January 2023 report, adding that the Energy Department’s National Nuclear Security Administration has provided “limited assurance that it would be able to produce sufficient numbers of pits.”

    Webster has been at Los Alamos since Ronald Reagan was president. He could have retired years ago, but has remained to shepherd the first new plutonium pits through to production. The lab is starting to feel a bit like it did in the 1980s, during the Cold War, he said. Los Alamos scientists are having intense discussions about weapon design — how much each can weigh, its explosive punch, how far it must travel.

    “We need our nation to be back making pits,” Webster said. “We just have to be able to do that.”

    Completed pits are protected and detonated by an outer warhead layer that is built at the Energy Department’s Kansas City National Security Campus. Inside that three-story windowless factory, workers restore and test those warhead parts, work that a government watchdog said required “a great deal of precision manufacturing to exacting specifications.”

    There are thousands of tiny parts inside each warhead, so steady hands are key. That’s why technicians go through a skills assessment that includes disassembling and assembling a mechanical wristwatch.

    “Everything is done under a microscope with tweezers,” said Molly Hadfield, a spokeswoman for the Kansas City plant. “And it’s pass (or) fail. Either the watch works or it doesn’t work.”

    This factory would be busy even if an overhaul wasn’t underway. All warheads have regular maintenance requirements. Their plastics age, and metal gears and wiring are weakened by the years and by exposure to radiation.

    The factory is also working on warheads for the B-21 Raider, a futuristic stealth bomber, while also supporting the Sentinel, a new intercontinental ballistic missile and on warheads for a new class of submarines.

    “There’s a huge modernization effort going on,” said Eric Wollerman, who manages the Kansas City complex for the Department of Energy through its federal contract with Honeywell. “​​If you’re going to update the delivery systems, you would also then update the warheads in the missiles and the bombs that are with them.”

    To meet the demand for both maintenance and modernization, the facilities have gone on a hiring spree. The Kansas City plant has 6,700 employees, a 40% jump since 2018, with plans to add several hundred more. The Los Alamos lab has added more than 4,000 employees in that same time frame.

    The U.S. nuclear arsenal reveals its age each time troops fix a missile. That can occur as often as twice a week, but only if the equally old tools, or the truck carrying the tools, or the truck needed to transport the missile itself isn’t also broken down, which is often.

    That is why Airman 1st Class Jonathan Marrs was dragging a second 225-pound (102-kilogram) aluminum tow behind him toward a concrete silo in the midst of vast Montana farmland on a recent hot afternoon.

    Marrs, 21, and other airmen used a tow and wrenches the size of human femurs to dislodge silo Bravo-9’s 110-ton blast door. Underneath its cement and steel cover was a 70,000-pound (31,750-kilogram) nuclear missile; the missile’s warhead tip needed to be lifted out and trucked to base for work.

    Except the blast door wouldn’t budge. The first 225-pound (102-kilogram) tow, or mule, as the troops call it, couldn’t generate the power needed to pull back the door.

    After attaching a second mule, Marrs and the other airman succeeded in pulling the door free, releasing scores of mice.

    The maintainers next unfastened the warhead from the missile and placed it in a specialized truck. It’s then escorted by Air Force security forces back to a heavily guarded hangar at Montana’s Malmstrom Air Force Base.

    Marrs and the other young airmen — known as maintainers — are closely monitored as they handle nuclear weapons, U.S. Air Force officials said.

    “If I under-inflate a basketball at the gym, no one will care,” said Chief Master Sgt. Andrew Zahm, the maintenance group senior enlisted leader at F.E. Warren Air Force Base. “If I did something with one of these weapons, the president would know about it in 45 minutes.”

    The workload is already a challenge for these troops, and there aren’t many easy ways to relieve it.

    While the private-sector managed Los Alamos and Kansas City plants have hired personnel to meet the rising workload, the military has struggled to fill jobs and retain experienced technicians. Instead, the military must do more with fewer maintainers, and for much less money than those troops could make as government contractors.

    “Once you start showing a staff sergeant the $80,000″ they could make in the private sector, they are going to take it, Zahm said.

    Zahm is a rarity. While many have retired or left for private industry, he’s remained to keep serving the military’s nuclear mission. With the U.S. so close to its first new weapon, he’s driven by a desire to see it through. “In 21 years I’ve never seen a new thing,” Zahm said. “I want to see the new stuff.”

    ___

    Copp reported from Los Alamos National Laboratory, New Mexico; the Kansas City National Security Campus, Missouri; Malmstrom Air Force Base, Montana and F.E. Warren Air Force Base, Wyoming.

    ___

    The Associated Press receives support for nuclear security coverage from the Carnegie Corporation of New York and Outrider Foundation. The AP is solely responsible for all content. Del Wilber is the Washington investigations editor for the AP.

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  • Rocket Lab stock drops 25% after first launch failure in over two years

    Rocket Lab stock drops 25% after first launch failure in over two years

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    The company’s Electron rocket carrying the CAPSTONE mission lifts off from New Zealand on June 28, 2022.

    Rocket Lab

    Rocket Lab stock fell in premarket trading after the company suffered its first launch failure in over two years early Tuesday morning.

    The company confirmed its 41st Electron rocket launch – lifting off from New Zealand and carrying the Acadia 2 satellite for San Francisco-based Capella Space – failed about 2 minutes and 30 seconds into the flight. Rocket Lab said it has begun working with the Federal Aviation Administration on investigating the root cause of the issue, which appeared to happen around the time the rocket’s first and second stages separated.

    “We are deeply sorry to our partners Capella Space for the loss of the mission,” Rocket Lab said in a statement.

    Shares of Rocket Lab fell as much as 26% in premarket trading from its previous close at $5.04. The stock was up 34% for the year as of Monday’s close.

    Sign up here to receive weekly editions of CNBC’s Investing in Space newsletter.

    The company’s 42nd Electron mission was set to launch before the end of the third quarter. But Rocket Lab warned it will be postponed while it resolves the launch failure. As a result, Rocket Lab expects to issue revised third quarter revenue guidance. In its second quarter report, Rocket Lab forecast about $30 million of launch services revenue – the minority of its overall forecast revenue between $73 million and $77 million, as the bulk was expected to come from its space systems unit.

    Rocket Lab’s failure comes after the company built up a steady rhythm of successful launches, becoming the second-most active U.S. rocket company behind Elon Musk’s SpaceX. The Electron rocket hadn’t suffered a mission failure since May 2021, stringing together 19 successful launches in 28 months since then.

    A rocket can remain grounded for an uncertain amount of time, with the length of investigations depending upon the severity and complexity of the issue. After its previous launch failure, Rocket Lab launched its next Electron mission 70 days later.

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  • Hundreds of flying taxis to be made in Ohio, home of the Wright brothers and astronaut legends

    Hundreds of flying taxis to be made in Ohio, home of the Wright brothers and astronaut legends

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    COLUMBUS, Ohio — The same Ohio river valley where the Wright brothers pioneered human flight will soon be manufacturing cutting-edge electric planes that take off and land vertically, under an agreement announced Monday between the state and Joby Aviation Inc.

    “When you’re talking about air taxis, that’s the future,” Republican Gov. Mike DeWine told The Associated Press. “We find this very, very exciting — not only for the direct jobs and indirect jobs it’s going to create, but like Intel, it’s a signal to people that Ohio is looking to the future. This is a big deal for us.”

    Around the world, electric vertical takeoff and landing, or eVTOL aircraft are entering the mainstream, though questions remain about noise levels and charging demands. Still, developers say the planes are nearing the day when they will provide a wide-scale alternative to shuttle individual people or small groups from rooftops and parking garages to their destinations, while avoiding the congested thoroughfares below.

    Joby’s decision to locate its first scaled manufacturing facility at a 140-acre (57-hectar) site at Dayton International Airport delivers on two decades of groundwork laid by the state’s leaders, Republican Lt. Gov. Jon Husted said. Importantly, the site is near Wright-Patterson Air Force Base and the headquarters of the U.S. Air Force Research Laboratories.

    “For a hundred years, the Dayton area has been a leader in aviation innovation,” Husted said. “But capturing a large-scale manufacturer of aircraft has always eluded the local economy there. With this announcement, that aspiration has been realized.”

    The Wright brothers, Orville and Wilbur, lived and worked in Dayton. In 1910, they opened the first U.S. airplane factory there. To connect the historical dots, Joby’s formal announcement Monday took place at Orville Wright’s home, Hawthorn Hill, and concluded with a ceremonial flypast of a replica of the Wright Model B Flyer.

    Joby’s production aircraft is designed to transport a pilot and four passengers at speeds of up to 200 miles (321.87 kilometers) per hour, with a maximum range of 100 miles (160.93 kilometers). Its quiet noise profile is barely audible against the backdrop of most cities, the company said. The plan is to place them in aerial ridesharing networks beginning in 2025.

    The efforts of the Santa Cruz, California-based company are supported by partnerships with Toyota, Delta Air Lines, Intel and Uber. Joby is a 14-year-old company that went public in 2021 and became the first eVTOL firm to receive U.S. Air Force airworthiness certification.

    The $500 million project is supported by up to $325 million in incentives from the state of Ohio, its JobsOhio economic development office and local government. With the funds, Joby plans to build an Ohio facility capable of delivering up to 500 aircraft a year and creating 2,000 jobs. The U.S. Department of Energy has invited Joby to apply for a loan to support development of the facility as a clean energy project.

    Joby CEO JoeBen Bevirt told the AP that the company chose Ohio after an extensive and competitive search. Its financial package wasn’t the largest, but the chance to bring the operation to the birthplace of aviation — with a workforce experienced in the field — sealed the deal, he said.

    “Ohio is the No. 1 state when it comes to supplying parts for Boeing and Airbus,” Bevirt said. “Ohio is No. 3 in the nation on manufacturing jobs — and that depth of manufacturing prowess, that workforce, is critical to us as we look to build this manufacturing facility.

    JobsOhio President and CEO J.P. Nauseef noted that its dedication to aviation has carried the Dayton area through serious economic challenges. That included the loss of tens of thousands of auto and auto parts manufacturing jobs in the early 2000s and the loss of ATM maker NCR Corp.’s headquarters to an Atlanta suburb in 2009.

    “This marries that heritage and legacy of innovation in aviation with our nuts and bolts of manufacturing,” Nauseef said. “It really marries those two together, and that’s never been married together before — not in this town. For a community the size of Dayton and Springfield, (whose people) take great pride, (and) have had rough, rough decades, it’s a wonderful project.”

    Bevirt said operations and hiring will begin immediately from existing buildings near the development site, contingent upon clearing the standard legal and regulatory hurdles. The site is large enough to eventually accommodate 2 square feet (18.58 hectars) of manufacturing space.

    Construction on the manufacturing facility is expected to begin in 2024, with production to begin in 2025.

    Toyota, a long-term investor, worked with Joby in 2019 to design and to successfully launch its pilot production line in Marina, California. The automaker will continue to advise Joby as it prepares for scaled production of its commercial passenger air taxi, the company said.

    The announcement comes as a bipartisan group of Ohio’s congressional representatives has recently stepped up efforts — following an earlier appeal by DeWine — to lure the U.S. Air Force’s new U.S. Space Command headquarters or Space Force units to Ohio. There, too, state leaders cite the aerospace legacy of the Wrights, as well as Ohio-born astronauts John Glenn and Neil Armstrong.

    ___

    Earlier versions of this article were corrected to reflect that the description of incentives and company investment is additive, with up to $325 million in incentives as part of the $500 million total, and to indicate that the name of the airline is Delta Air Lines, not Delta Airlines.

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  • Hundreds of flying taxis to be made in Ohio, home of the Wright brothers and astronaut legends

    Hundreds of flying taxis to be made in Ohio, home of the Wright brothers and astronaut legends

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    COLUMBUS, Ohio — The same Ohio river valley where the Wright brothers pioneered human flight will soon be manufacturing cutting-edge electric planes that take off and land vertically, under an agreement announced Monday between the state and Joby Aviation Inc.

    “When you’re talking about air taxis, that’s the future,” Republican Gov. Mike DeWine told The Associated Press. “We find this very, very exciting — not only for the direct jobs and indirect jobs it’s going to create, but like Intel, it’s a signal to people that Ohio is looking to the future. This is a big deal for us.”

    Around the world, electric vertical takeoff and landing, or eVTOL aircraft are entering the mainstream, though questions remain about noise levels and charging demands. Still, developers say the planes are nearing the day when they will provide a wide-scale alternative to shuttle individual people or small groups from rooftops and parking garages to their destinations, while avoiding the congested thoroughfares below.

    Joby’s decision to locate its first scaled manufacturing facility at a 140-acre (57-hectar) site at Dayton International Airport delivers on two decades of groundwork laid by the state’s leaders, Republican Lt. Gov. Jon Husted said. Importantly, the site is near Wright-Patterson Air Force Base and the headquarters of the U.S. Air Force Research Laboratories.

    “For a hundred years, the Dayton area has been a leader in aviation innovation,” Husted said. “But capturing a large-scale manufacturer of aircraft has always eluded the local economy there. With this announcement, that aspiration has been realized.”

    The Wright brothers, Orville and Wilbur, lived and worked in Dayton. In 1910, they opened the first U.S. airplane factory there. To connect the historical dots, Joby’s formal announcement Monday will take place at Orville Wright’s home, Hawthorn Hill, and conclude with a ceremonial flypast of a replica of the Wright Model B Flyer.

    Joby’s production aircraft is designed to transport a pilot and four passengers at speeds of up to 200 miles (321.87 kilometers) per hour, with a maximum range of 100 miles (160.93 kilometers). Its quiet noise profile is barely audible against the backdrop of most cities, the company said. The plan is to place them in aerial ridesharing networks beginning in 2025.

    The efforts of the Santa Cruz, California-based company are supported by partnerships with Toyota, Delta Airlines, Intel and Uber. Joby is a 14-year-old company that went public in 2021 and became the first eVTOL firm to receive U.S. Air Force airworthiness certification.

    With incentives of up to $325 million from the state of Ohio, its JobsOhio economic development office and local government, plus $500 million of Joby’s own cash, the company plans to build an Ohio facility capable of delivering up to 500 aircraft a year and creating 2,000 jobs. The U.S. Department of Energy has invited Joby to apply for a loan to support development of the facility as a clean energy project.

    Joby CEO JoeBen Bevirt told the AP that the company chose Ohio after an extensive and competitive search. Its financial package wasn’t the largest, but the chance to bring the operation to the birthplace of aviation — with a workforce experienced in the field — sealed the deal, he said.

    “Ohio is the No. 1 state when it comes to supplying parts for Boeing and Airbus,” Bevirt said. “Ohio is No. 3 in the nation on manufacturing jobs — and that depth of manufacturing prowess, that workforce, is critical to us as we look to build this manufacturing facility.

    JobsOhio President and CEO J.P. Nauseef noted that its dedication to aviation has carried the Dayton area through serious economic challenges. That included the loss of tens of thousands of auto and auto parts manufacturing jobs in the early 2000s and the loss of ATM maker NCR Corp.’s headquarters to an Atlanta suburb in 2009.

    “This marries that heritage and legacy of innovation in aviation with our nuts and bolts of manufacturing,” Nauseef said. “It really marries those two together, and that’s never been married together before — not in this town. For a community the size of Dayton and Springfield, (whose people) take great pride, (and) have had rough, rough decades, it’s a wonderful project.”

    Bevirt said operations and hiring will begin immediately from existing buildings near the development site, contingent upon clearing the standard legal and regulatory hurdles. The site is large enough to eventually accommodate 2 million square feet (610,000 square meters) of manufacturing space.

    Construction on the manufacturing facility is expected to begin in 2024, with production to begin in 2025.

    Toyota, a long-term investor, worked with Joby in 2019 to design and to successfully launch its pilot production line in Marina, California. The automaker will continue to advise Joby as it prepares for scaled production of its commercial passenger air taxi, the company said.

    The announcement comes as a bipartisan group of Ohio’s congressional representatives has recently stepped up efforts — following an earlier appeal by DeWine — to lure the U.S. Air Force’s new U.S. Space Command headquarters or Space Force units to Ohio. There, too, state leaders cite the aerospace legacy of the Wrights, as well as Ohio-born astronauts John Glenn and Neil Armstrong.

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  • Turkey’s President Erdogan and Elon Musk discuss establishing a Tesla car factory in Turkey

    Turkey’s President Erdogan and Elon Musk discuss establishing a Tesla car factory in Turkey

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    Turkish President Recep Tayyip Erdogan has called on Elon Musk, the head of electric carmaker Tesla, to establish a factory in Turkey

    ByThe Associated Press

    September 18, 2023, 2:51 AM

    In this handout photo released by Turkish Presidency, Turkish President Recep Tayyip Erdogan, right, talks to Elon Musk, holding one of his sons, during their meeting in New York, Sunday, Sept. 17, 2023. Turkish President Recep Tayyip Erdogan called on Elon Musk, the head of electric carmaker Tesla, to establish a factory in Turkey during a meeting in New York, Erdogan’s office said Monday. (Turkish Presidency via AP)

    The Associated Press

    ISTANBUL — Turkish President Recep Tayyip Erdogan called on Elon Musk, the head of electric carmaker Tesla, to establish a factory in Turkey during a meeting in New York, Erdogan’s office said Monday.

    Erdogan, who is in the U.S. to attend the U.N. General Assembly, also discussed potential cooperation between Musk’s space exploration firm SpaceX and Turkey’s space program, the Turkish president’s office said.

    The statement said Erdogan told Musk that Turkey would welcome cooperation on artificial intelligence and Starlink, SpaceX’s satellite internet service. Musk said SpaceX wanted to secure the necessary license to offer Starlink in Turkey.

    Images of the meeting showed Musk holding one of his sons as he talked to Erdogan.

    Turkish Industry and Technology Minister Mehmet Fatih Kacir, who attended the meeting, said Musk described Turkey as “among the most important candidates for Tesla investment.”

    He added that Musk and Erdogan also discussed Turkey’s armed aerial drone program.

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  • Turkey’s President Erdogan and Elon Musk discuss establishing a Tesla car factory in Turkey

    Turkey’s President Erdogan and Elon Musk discuss establishing a Tesla car factory in Turkey

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    Turkish President Recep Tayyip Erdogan has called on Elon Musk, the head of electric carmaker Tesla, to establish a factory in Turkey

    ByThe Associated Press

    September 18, 2023, 2:51 AM

    In this handout photo released by Turkish Presidency, Turkish President Recep Tayyip Erdogan, right, talks to Elon Musk, holding one of his sons, during their meeting in New York, Sunday, Sept. 17, 2023. Turkish President Recep Tayyip Erdogan called on Elon Musk, the head of electric carmaker Tesla, to establish a factory in Turkey during a meeting in New York, Erdogan’s office said Monday. (Turkish Presidency via AP)

    The Associated Press

    ISTANBUL — Turkish President Recep Tayyip Erdogan called on Elon Musk, the head of electric carmaker Tesla, to establish a factory in Turkey during a meeting in New York, Erdogan’s office said Monday.

    Erdogan, who is in the U.S. to attend the U.N. General Assembly, also discussed potential cooperation between Musk’s space exploration firm SpaceX and Turkey’s space program, the Turkish president’s office said.

    The statement said Erdogan told Musk that Turkey would welcome cooperation on artificial intelligence and Starlink, SpaceX’s satellite internet service. Musk said SpaceX wanted to secure the necessary license to offer Starlink in Turkey.

    Images of the meeting showed Musk holding one of his sons as he talked to Erdogan.

    Turkish Industry and Technology Minister Mehmet Fatih Kacir, who attended the meeting, said Musk described Turkey as “among the most important candidates for Tesla investment.”

    He added that Musk and Erdogan also discussed Turkey’s armed aerial drone program.

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  • More companies, especially airlines, warn higher costs will eat into profits

    More companies, especially airlines, warn higher costs will eat into profits

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    An American Airlines 787 is loaded with cargo at Philadelphia International Airport.

    Leslie Josephs/CNBC

    More companies are warning that a surge in the cost of fuel and employee pay hikes will eat into profits this quarter.

    Companies from aerospace manufacturers to package delivery giant UPS are digesting big new labor deals. Meanwhile, unions from the auto industry to Hollywood are pushing for better compensation. Airlines, whose biggest expenses are jet fuel and labor, are getting hit particularly hard.

    Delta Air Lines on Thursday cut its adjusted earnings forecast for the third quarter to between $1.85 and $2.05 a share, down from an earlier forecast of $2.20 to $2.50. Delta said it is paying more for fuel than it expected but said maintenance costs were also more than it anticipated.

    U.S. jet fuel at major airports averaged $3.42 a gallon as of Tuesday, up 38% from two months ago, according to Airlines for America, an industry group.

    On Wednesday, American Airlines trimmed its earnings forecast, following revisions at Alaska Airlines and Southwest Airlines. American expects to adjusted earnings per share of between 20 cents and 30 cents in the third quarter, down from a previous forecast of as much as 95 cents a share, citing more expensive fuel and a new pilot labor deal.

    The company expects to recognize a $230 million expense for that new contract, which includes immediate 21% raises for pilots, and compensation increasing more than 46% over the duration of the four-year contract, including 401(k) contributions.

    Elsewhere, labor unions from Detroit to Hollywood have pushed hard for raises, better benefits and schedules in new contracts. UPS and the Teamsters union representing about 340,000 workers at the package carrier in July reached a new labor deal that includes raises for both full- and part-time workers, and narrowly avoided a potential strike.

    UPS workers ratified the agreement ratified last month. By the end of the five-year contract, a driver could make $170,000 in pay and benefits, the company said.

    Earlier this week, the delivery giant outlined the costs associated with the deal and said it the expenses from it will increase at 3.3% compound annual growth rate over the next five years.

    “Year one costs more than we originally forecast,” said Brian Newman, the company’s CFO, said on an investor call this week. He said it will cost $500 million more in the back half of 2023 than expected, he said.

    As of midday Thursday, the United Auto Workers and Detroit automakers appeared far apart on labor talks for new labor deals, setting up “likely” strategic strikes at the companies after an 11:59 p.m. ET Thursday deadline, UAW President Shawn Fain said Wednesday night. The union has sought more than 30% hourly pay increases, a reduced 32-hour work week, and other improvements.

    Other unions are also seeking higher compensation. The Hollywood writers and actors strikes began in May and mid-July, respectively, with members demanding better pay to match changing industry dynamics in the entertainment-streaming era.

    American Airlines offered flight attendants 11% pay increases the date a new contract starts, and 2% raises after that. But the Association of Professional Flight Attendants said the union wants 35% increases at the start of a new deal, followed by 6% annual raises.

    Unions have complained that workers didn’t get raises during high inflation in recent years since the Covid pandemic derailed talks.

    Strong travel demand has helped the largest carriers more than cover their higher expenses. But some carriers are seeking cracks in sales just as a slower travel period after summer begins. Spirit Airlines on Wednesday said it expects a deeper loss than previously forecast and lower revenue.

    Frontier Airlines warned Wednesday that “in recent weeks, sales have been trending below historical seasonality patterns,” and forecast an adjusted loss for the quarter.

    – CNBC’s Michael Wayland and Gabriel Cortes contributed to this article.

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  • Delta will make it harder to get into airport lounges, changes rules to earn elite status

    Delta will make it harder to get into airport lounges, changes rules to earn elite status

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    Delta’s new SkyClub at John F. Kennedy International Airport in New York.

    Leslie Josephs/CNBC

    Delta Air Lines is changing how customers can earn elite frequent flyer status and is making it harder for many American Express cardholders to get into the carrier’s airport lounges, the latest reality check for air travel’s era of mass luxury.

    Starting Jan. 1, customers will earn Delta Medallion status solely based on their spending, instead of a combination of dollars spent with the carrier and flights. The new model is similar to one that American Airlines adopted earlier this year.

    Major airlines have continually raised the requirements to earn status as customer spending at the airline and on co-branded credit cards has surged in recent years, swelling the ranks of these high-paying customers. Elite status can come with a variety of perks, from early boarding to upgrades to first class and lounge access.

    “We want customers to be able to receive status with activity beyond just air travel,” Dwight James, Delta’s senior vice president of customer engagement and loyalty, told CNBC.

    Next year, Delta customers will earn 1 Medallion Qualifying Dollar for every $1 they spend on Delta flights, car rentals, hotels and vacation packages booked through the airline.

    The ratio isn’t 1:1 for dollars spent through co-branded American Express cards. Delta SkyMiles Reserve and Reserve Business American Express card members earn 1 Medallion Qualifying Dollar for every $10 spent on the card, while Delta SkyMiles Platinum and Platinum Business American Express Card Members earn 1 Medallion Qualifying Dollar for every $20 spent.

    Here are the new status requirements:

    • Silver Medallion – 6,000 MQDs
    • Gold Medallion – 12,000 MQDs
    • Platinum Medallion – 18,000 MQDs
    • Diamond Medallion – 35,000 MQDs

    Raising the bar on Sky Club entry

    Delta is limiting access to its popular Sky Club airport lounges through certain American Express credit cards after grappling with overcrowding at some of them, drawing complaints from travelers.

    Instead of the current unlimited visits, starting Feb. 1, 2025, American Express Platinum and Platinum Business cardholders will get six visits a year, unless they spend $75,000 on the card in a calendar year.

    Meanwhile, Delta SkyMiles Reserve and Reserve Business cardholders will get 10 Sky Club visits a year, a limit they can skirt by also spending $75,000 in a year.

    Delta’s SkyMiles Platinum and Platinum Business American Express cards will no longer get club access through the cards itself, although customers can enter by buying a club membership or if they have elite status with Delta that allows them to pick a club membership as a perk.

    “Some of the changes that we’re making ensures that we’re taking care of our most premium customers with our most premium assets, one of those being the Sky Club,” James said. He said the changes were made in conjunction with American Express.

    The airline last year announced several changes to crack down on overcrowding at the clubs, including barring employees from using them when flying standby with company travel privileges, even if they had qualifying credit cards. It also raised prices for club memberships for regular customers.

    Delta and its competitors are racing to build bigger and more modern lounges to accommodate customers. United Airlines, for example, on Wednesday opened a 35,000 square-foot club at its hub at Denver International Airport, the largest in its network, after opening a 24,000 square-foot club at the airport earlier this summer.

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  • Smartsheet, Smith & Wesson rise; RH, Zumiez fall, Friday, 9/8/2023

    Smartsheet, Smith & Wesson rise; RH, Zumiez fall, Friday, 9/8/2023

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    Stocks that are trading heavily or have substantial price changes Friday: Smartsheet, Smith & Wesson rise; RH, Zumiez fall

    ByThe Associated Press

    September 8, 2023, 12:03 PM

    NEW YORK — Stocks that are trading heavily or have substantial price changes on Friday:

    RH (RH), down $57.60 to $310.95.

    The furniture and housewares company gave investors a disappointing revenue forecast for its current quarter.

    Guidewire Software Inc. (GWRE), up $9.31 to $94.15.

    The provider of software to the insurance industry beat analysts’ fiscal fourth-quarter profit forecasts.

    Smartsheet Inc. (SMAR), up $2.67 to $43.03.

    The cloud-based work-management platform raised its profit forecast for the year.

    Hudson Pacific Properties Inc. (HPP), down 19 cents to $7.21.

    The real estate investment trust suspended its dividend.

    Smith & Wesson Brands Inc. (SWBI), up $1.14 to $11.65.

    The firearm maker beat Wall Street’s fiscal first-quarter financial forecasts.

    Braze Inc. (BRZE), up $1.49 to $49.13.

    The cloud-based software company raised its earnings and sales forecasts.

    National Beverage Corp. (FIZZ), down 86 cents to $47.14.

    The soft drink and seltzer maker’s second-quarter revenue fell short of analysts’ forecasts.

    Zumiez Inc. (ZUMZ), down $1.91 to $16.76.

    The clothing retailer gave investors a disappointing earnings forecast.

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  • UN experts say Islamic State group almost doubled the territory they control in Mali in under a year

    UN experts say Islamic State group almost doubled the territory they control in Mali in under a year

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    UNITED NATIONS — Islamic State extremists have almost doubled the territory they control in Mali in less than a year, and their al-Qaida-linked rivals are capitalizing on the deadlock and perceived weakness of armed groups that signed a 2015 peace agreement, United Nations experts said in a new report.

    The stalled implementation of the peace deal and sustained attacks on communities have offered the IS group and al-Qaida affiliates a chance “to re-enact the 2012 scenario,” they said.

    That’s the year when a military coup took place in the West African country and rebels in the north formed an Islamic state two months later. The extremist rebels were forced from power in the north with the help of a French-led military operation, but they moved from the arid north to more populated central Mali in 2015 and remain active.

    In August 2020, Mali’s president was overthrown in a coup that included an army colonel who carried out a second coup and was sworn in as president in June 2021. He developed ties to Russia’s military and Russia’s Wagner mercenary group whose head, Yevgeny Prigozhin, was reportedly killed in a plane crash on a flight from Moscow this week.

    The 2015 peace agreement was signed by three parties: the government, a pro-government militia and a coalition of groups who seek autonomy in northern Mali.

    The panel of experts said in the report circulated Friday that the impasse in implementing the agreement — especially the disarmament, demobilization and reintegration of combatants into society — is empowering al-Qaida-linked Jama’a Nusrat ul-Islam wa al-Muslimin, known as JNIM, to vie for leadership in northern Mali.

    Sustained violence and attacks mostly by IS fighters in the Greater Sahara have also made the signatories to the peace deal “appear to be weak and unreliable security providers” for communities targeted by the extremists, the experts said.

    JNIM is taking advantage of this weakening “and is now positioning itself as the sole actor capable of protecting populations against Islamic State in the Greater Sahara,” they said.

    The panel said Mali’s military rulers are watching the confrontation between the IS group and al-Qaida affiliate from a distance.

    The experts cited some sources as saying the government believes that over time the confrontation in the north will benefit Malian authorities, but said other sources believe time favors the terrorists “whose military capacities and community penetration grow each day.”

    “In less than a year, Islamic State in the Greater Sahara has almost doubled its areas of control in Mali,” the panel said, pointing to its control now of rural areas in eastern Menaka and large parts of the Ansongo area in northern Gao.

    In June, Mali’s junta ordered the U.N. peacekeeping force and its 15,000 international troops to leave after a decade of working on stemming the jihadi insurgency The Security Council terminated the mission’s mandate on June 30.

    The panel said the armed groups that signed the 2015 agreement expressed concern that the peace deal could potentially fall apart without U.N. mediation, “thereby exposing the northern regions to the risk of another uprising.”

    The U.N. force, known as MINUSMA, “played a crucial role” in facilitating talks between the parties, monitoring and reporting on the implementation of the agreement, and investigating alleged violations, the panel said.

    The 104-page report painted a grim picture of other turmoil and abuses in the country.

    The panel said terrorist groups, armed groups that signed the 2015 agreement, and transnational organized crime rings are competing for control over trade and trafficking routes transiting through the northern regions of Gao and Kidal.

    “Mali remains a hotspot for drug trafficking in West Africa and between coastal countries in the Gulf of Guinea and North Africa, in both directions,” the experts said, adding that many of the main drug dealers are reported to be based in the capital Bamako.

    The panel said it remains particularly concerned with persistent conflict-related sexual violence in the eastern Menaka and central Mopti regions, “especially those involving the foreign security partners of the Malian Armed Force” – the Wagner Group.

    “The panel believes that violence against women, and other forms of grave abuses of human rights and international humanitarian law are being used, specifically by the foreign security partners, to spread terror among populations,” the report said.

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  • SpaceX launches Crew-7 mission, the company’s 11th carrying astronauts

    SpaceX launches Crew-7 mission, the company’s 11th carrying astronauts

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    SpaceX’s Falcon 9 rocket with the company’s Crew Dragon spacecraft on top is seen after sunset at Launch Complex 39A ahead of the launch of the Crew-7 mission.

    Joel Kowsky / NASA

    SpaceX launched four people to the International Space Station from Florida as Elon Musk’s company begins its 11th human spaceflight mission to date.

    Known as Crew-7, the mission for NASA will bring the group up to the space station for a six-month stay in orbit. The mission is SpaceX’s sixth operational crew launch for NASA to date, and the first of the additional missions the agency awarded SpaceX.

    Crew-7 launched in the early hours of Saturday morning from NASA’s Kennedy Space Center, beginning a nearly one day journey to the ISS.

    Sign up here to receive weekly editions of CNBC’s Investing in Space newsletter.

    The mission brings the number of astronauts SpaceX has launched to 42, including both government and private missions, since its first crewed launch in May 2020.

    Crew-7 consists of NASA astronaut Jasmin Moghbeli as the commander, European Space Agency astronaut Andreas Mogensen from Denmark as the pilot, and Japan Aerospace Exploration Agency astronaut Satoshi Furukawa and Roscosmos cosmonaut Konstantin Borisov as mission specialists.

    (From L) Roscosmos cosmonaut Konstantin Borisov, European Space Agency astronaut Andreas Mogensen, NASA astronaut Jasmin Moghbeli, and Japan Aerospace Exploration Agency astronaut Satoshi Furukawa, wearing SpaceX spacesuits wave as they prepare to board the SpaceX Dragon spacecraft for the Crew-7 mission launch, at NASA’s Kennedy Space Center in Florida, on Aug. 26, 2023.

    Gregg Newton | AFP | Getty Images

    SpaceX launched the astronauts in its Crew Dragon capsule called Endurance, on top of a Falcon 9 rocket. Both the rocket and capsule are reusable, with the Endurance flying on its third mission to date.

    The company is under contract for 14 missions under NASA’s Commercial Crew program.

    SpaceX developed its Crew Dragon spacecraft and fine-tuned its Falcon 9 rocket under NASA’s program, competing against Boeing’s Starliner capsule. But Boeing’s capsule remains in development, with costly delays putting the start of operational Starliner flights years behind schedule.

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  • US sues SpaceX for alleged hiring discrimination against refugees and others

    US sues SpaceX for alleged hiring discrimination against refugees and others

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    The U.S. Department of Justice has sued SpaceX, the rocket company founded and run by Elon Musk, for alleged hiring discrimination against refugees and people seeking or already granted asylum

    FILE – The U.S. Department of Justice logo is seen on a podium following a news conference in the office of the U.S. Attorney for the District of Maryland in Baltimore, March 1, 2017. On Thursday, Aug. 24, 2023, the U.S. Department of Justice filed suit against SpaceX, the rocket company founded and run by Elon Musk, for alleged hiring discrimination against refugees and people seeking or already granted asylum. (AP Photo/Patrick Semansky, File)

    The Associated Press

    WASHINGTON — The U.S. Department of Justice on Thursday sued SpaceX, the rocket company founded and run by Elon Musk, for alleged hiring discrimination against refugees and people seeking or already granted asylum.

    The complaint, filed in an administrative court within the department, asserts that SpaceX wrongly claimed that federal export control laws barred it from hiring anyone but U.S. citizens and permanent residents. As a result, it discouraged refugees and asylum seekers and grantees from applying for jobs at the company, according to the complaint.

    Export controls typically aim to protect U.S. national security and to further national trade objectives. They bar the shipment of specific technologies, weapons, information and software to specific non-U.S. nations and also limit the sharing or release of such items and information to “U.S. persons.” But the Justice Department noted that the term includes not only U.S. citizens, but also permanent U.S. residents, refugees, and those seeking or granted asylum.

    The department charged that SpaceX also refused to “fairly” consider applications from this group of people or to hire them. The positions in question included both ones requiring advanced degrees and others such as welders, cooks and crane operators at the company.

    The U.S. is seeking “fair consideration and back pay” for people who were deterred from or denied employment at SpaceX due to the company’s alleged discrimination, in addition to undetermined civil penalties.

    SpaceX, which is based in Hawthorne, California, did not reply to a request for comment.

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  • American Airlines pilots approve sweetened labor deal with big raises

    American Airlines pilots approve sweetened labor deal with big raises

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    An American Airlines plane takes off from the Miami International Airport on May 02, 2023 in Miami, Florida. 

    Joe Raedle | Getty Images

    American Airlines pilots approved a sweetened labor deal, making the carrier the second major U.S. airline to seal a new contract with its highest-paid work group.

    The more than 15,000 pilots at American will get immediate raises of 21% with compensation rising more than 46% over the duration of the contract, their union said Monday.

    Delta Air Lines pilots ratified a new agreement earlier this year.

    This is breaking news. Check back for updates.

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  • Air Force awards a start-up company $235 million to build an example of a sleek new plane

    Air Force awards a start-up company $235 million to build an example of a sleek new plane

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    The U.S. Air Force is throwing its support behind a program to develop a sleek, futuristic-looking jet that could provide greater range and efficiency for military tankers and cargo planes

    ByDAVID KOENIG Associated Press

    This image provided by the U.S. Air Force shows a rendering of a blended-wing body prototype aircraft. The Air Force has promised $235 million to help start-up manufacturer JetZero build a jet with a blended-wing body that officials say could provide greater range and efficiency for military tankers and cargo planes and perhaps eventually be used to carry airline passengers. JetZero and the Air Force, which announced the award Wednesday, Aug. 16, 2023, say they hope that the full-size demonstrator plane will be ready to fly in 2027. (U.S. Air Force via AP)

    The Associated Press

    The U.S. Air Force will invest $235 million to help a start-up manufacturer build a jet with a blended-wing body that officials say could provide greater range and efficiency for military tankers and cargo planes and perhaps eventually be used to carry airline passengers.

    JetZero and the Air Force, which announced the award Wednesday, say they hope that the full-size demonstrator plane will be ready to fly in 2027.

    Most large airplanes are tubes with wings and a tail section attached. Blended-wing planes are designed with the body and wings being one piece. The result is a sleek, futuristic-looking aircraft with less aerodynamic drag than a conventional plane of the same size.

    JetZero officials argue that traditional planes are running out of ways to improve fuel efficiency, and, with fuel prices likely to rise, an entirely new design is needed to reduce fuel consumption and emissions.

    The Air Force, the Pentagon’s Defense Innovation Unit and NASA are working on the project. JetZero has a partner in defense contractor Northrup Grumman.

    The idea of a blended-wing body is not new. Boeing built and tested reduced-scale samples of its X-48. Lockheed Martin has tested a Hybrid Wing Body design in wind tunnels. The Air Force said technology advancements in materials and manufacturing have made the production of larger-scale demonstrators possible.

    At a briefing Wednesday, officials said the JetZero demonstrator could determine whether a blended-wing body could be used in future refueling tankers and cargo planes for the Air Force. They said passenger and cargo airlines could also benefit if the design adds seating or cargo space and reduces fuel costs.

    “The commercial industry is thirsty for solutions that aren’t so thirsty for fuel,” said Tom O’Leary, the CEO and co-founder of JetZero, which is based in Los Angeles.

    O’Leary acknowledged that the Air Force award will not be enough to cover the development and production of even a single full-scale prototype, but he gave few details on the company’s funding.

    “While our total funding is not public, we will be having private investment and partners contributing to that,” he said.

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  • Thousands of pieces of unexploded ordnance found buried in ground at Cambodian school

    Thousands of pieces of unexploded ordnance found buried in ground at Cambodian school

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    PHNOM PENH, Cambodia — Cambodian authorities have temporarily closed a high school where thousands of pieces of unexploded ordnance from the country’s nearly three decades of civil war have been unearthed.

    The ordnance was found at the school in the northeastern province of Kratie after deminers were invited to search for buried landmines on the campus before a new building was constructed, Chheang Heng, the provincial deputy chief for education. More than 1,000 students study at Queen Kossamak high school.

    The site was an ammunition warehouse during the Khmer Rouge regime in the 1970s before being turned into a school and all of the ordnance was thought to have been removed, Chheang Heng said.

    From Friday through Sunday, 2,116 pieces of ordnance were collected by deminers from the Cambodian Mine Action Center, the government agency’s director general, Heng Ratana, posted on Facebook

    They included M79 grenades, FuzeM48 shells and ordnance for the B40 rocket launcher. Photos posted on its Facebook page showed the dirt-covered items placed in a row on the school’s ground.

    Heng Ratana said many more pieces of ordnance are believed to still be buried, so the school will be closed for some days while the deminers work to collect the dangerous material.

    “I know that this school site used to be a big ammunition warehouse of the Khmer Rouge in late 1970s, but I could not believe that there was a huge amount of ammunition buried underground like this,” Chheang Heng said.

    “How many casualties would have happened if this ammunition exploded?” he said.

    The brutal rule of the radical communist Khmer Rouge was blamed for the deaths of an estimated 1.7 million Cambodian from starvation, illness and killing before being ousted by a Vietnamese invasion.

    Three decades of war finally ended in the late 1990s but left Cambodia littered with an estimated 4 million to 6 million land mines and other ordnance.

    Most has been cleared but the explosives continue to kill people.

    Since the end of the fighting, nearly 20,000 people have been killed and about 45,000 have been injured by leftover war explosives, although the average annual death toll has dropped from several thousand to less than 100.

    Three members of a local demining team were killed by a leftover anti-tank mine as they were working in northern Preah Vihear province in early 2022.

    The Cambodian government aims to clear all the nation’s leftover land mines and unexploded ordnance by 2025.

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  • North Korea’s Kim orders sharp increase in missile production, days before US-South Korea drills

    North Korea’s Kim orders sharp increase in missile production, days before US-South Korea drills

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    SEOUL, South Korea — North Korean leader Kim Jong Un made another inspection tour of major munitions factories and ordered a drastic increase in production of missiles and other weapons, state media said Monday, days before South Korea and the U.S. begin annual military drills that North Korea views as an invasion rehearsal.

    Kim’s push to produce more weapons also comes as U.S. officials believe Russia’s defense minister recently talked with North Korea about selling more weapons to Russia for its war with Ukraine.

    The Korean Central News Agency said Kim visited factories producing tactical missiles, mobile launch platforms, armored vehicles and artillery shells on Friday and Saturday.

    During a stop at the missile factory, Kim set a goal to “drastically boost” production capacity so the facility can mass produce missiles to meet the needs of frontline military units, KCNA said.

    “The qualitative level of war preparations depends on the development of the munitions industry and the factory bears a very important responsibility in speeding up the war preparations of the (North) Korean People’s Army,” Kim said, according to the report.

    Visiting other factories, Kim called for building more modern missile launch trucks and said there is an urgent need to boost production of large-caliber multiple rocket launcher shells “at an exponential rate,” the report said. Kim also drove a new utility combat armored vehicle, KCNA said.

    Kim has been focusing on enlarging his nuclear and missile arsenals since his high-stakes diplomacy with then U.S. President Donald Trump collapsed in 2019. Since the start of 2022, Kim’s military has conducted more than 100 missile tests, many of them in the name of warning the U.S. and South Korean over their expansion of joint military training exercises.

    North Korea could perform more weapons tests soon as the U.S. and South Korea are set to start their summer military exercises later this month. North Korea calls the U.S.-South Korean training a practice for an invasion. The allies say they have no intentions of attacking North Korea.

    KCNA quoted Kim as saying North Korea must have “an overwhelming military force and get fully prepared for coping with any war” with the power to “surely annihilate” its enemies.

    Many experts say Kim eventually aims to use his modernized weapons arsenals to wrest U.S. concessions, such as sanctions relief, whenever diplomacy resumes with Washington.

    Earlier this month, the White House said U.S. intelligence officials had determined that Russian Defense Minister Sergei Shoigu spoke to North Korean officials during a visit to Pyongyang last month about increasing the sale of munitions to Moscow for its war in Ukraine.

    North Korea has denied American claims that it shipped artillery shells and ammunition to Russia. But the North has publicly supported Russia over the war and hinted at sending workers to help rebuild Russian-occupied territories in Ukraine.

    Kim has been trying to beef up ties with China and Russia in the face of U.S.-led pressure campaigns over its nuclear program and pandemic-related economic difficulties.

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  • Telesat stock surges 50% after satellite internet company swaps suppliers to save $2 billion

    Telesat stock surges 50% after satellite internet company swaps suppliers to save $2 billion

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    A rendering of Telesat’s low earth orbit broadband constellation.

    Telesat

    Shares of Canadian telecommunications satellite operator Telesat surged Friday after the company announced it would swap suppliers for its planned Lightspeed global internet network.

    Canadian space company MDA will now build the Lightspeed satellites, taking the place of French-Italian manufacturer Thales Alenia Space and resulting in “total capital cost savings” of about $2 billion, Telesat announced.

    The company expects to begin launching the first Lightspeed satellites in mid-2026, with global service beginning once the first 156 satellites are in orbit. The full network is planned to consist of 198 satellites.

    Telesat stock surged as much as 64% with heavy volume in early trading from its previous close at $8.45 a share, before slipping slightly to closer to 50%.

    “I’m incredibly proud of the Telesat team for their innovative work to further optimize … resulting in dramatically reduced costs,” Telesat CEO Dan Goldberg said in a release.

    Stock Chart IconStock chart icon

    Telesat stock surges Friday after the company swaps its internet satellite supplier.

    The company had previously contracted Thales Alenia Space to manufacture the satellites at an estimated cost of $5 billion, including about $3 billion for the satellites, plus the costs of rocket launches, building ground infrastructure and developing software platforms to operate the network.

    Sign up here to receive weekly editions of CNBC’s Investing in Space newsletter.

    Goldberg previously emphasized to CNBC that Lightspeed is not intended to compete in direct-to-consumer markets against SpaceX’s Starlink or Amazon’s Kuiper. Instead, it will maintain Telesat’s existing focus on enterprise customers — government and commercial markets that Starlink has expanded into over the past year.

    Telesat also reported second-quarter results Friday, including $180 million in revenue, a decrease of 4% from the same period a year prior. Telesat’s net income jumped to $520 million in the quarter, compared with a net loss of $4 million a year prior, a dramatic shift the company attributed largely to a $260 million payment from the FCC for clearing spectrum for 5G use in the U.S.

    The company reaffirmed its full-year 2023 revenue guidance, expecting to bring in between $690 million and $710 million.

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