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close video Former United Airlines CEO Oscar Munoz rips US’ air traffic control systems as ‘most outdated’

Former United Airlines CEO Oscar Munoz discusses a government report blaming airlines for cancellations, retention in employees, and his new book, “Turnaround Time.”

More than 1,500 flight cancelations and delays were already reported early Wednesday morning. 

Tracker FlightAware showed 1,153 total cancelations, including 672 within, into or out of the U.S. There were 913 delays.

United Airlines was hit the hardest, with 315 cancelations and 100 delays shown. 

JetBlue Airways came in second, with less than a third of those cancelations, shown at 84. However, it had 231 delays shortly before 8 a.m. ET.

UNITED CEO SCOTT KIRBY SLAMS FAA FOR FLIGHT CANCELLATIONS, DELAYS

Planes are seen on the tarmac as people wait for their flight reschedule inside of the Newark International Airport on June 27, 2023, in Newark, New Jersey. (Kena Betancur/Getty Images / Getty Images)

United Airlines told Fox Business Digital in an email on Wednesday morning that delays and cancelations are a result of the severe weather in the Northeast.

"Several consecutive days of severe weather and lingering thunderstorms in the Northeast, combined with FAA staffing constraints over the weekend, have resulted in a tough operating environment, especially for our customers flying in and out of the New York area," a spokesperson said. 

United Airlines airplanes sit parked at a gate at Terminal C at Newark Liberty Airport as the sun sets on Feb. 3, 2023, in Newark, New Jersey. (Photo by Gary Hershorn/Getty Images / Getty Images)

"We know our customers are eager to get to their destinations and our airport and call center teams are working overtime to assist them. As we focus on helping our customers whose travel has been disrupted over the last few days, we’re also planning ahead to be ready for the upcoming holiday weekend," the airline added.

JetBlue Airways did not immediately respond to Fox Business Digital's request for comment.

This comes following a day of hundreds of flight disruptions across the New York City area as storms swept through the region. 

People rest waiting for their flight reschedule inside of the Newark International Airport on June 27, 2023, in Newark, New Jersey. (Kena Betancur/Getty Images / Getty Images)

An issue with technology at a major air traffic control facility worsened the situation. 

On Sunday evening, the Federal Aviation Administration briefly paused operations at Washington D.C.-area airports due to a problem with the communications system. However, departures resumed after repairs were completed. 

A monitor displays in the departures area of Terminal B at LaGuardia Airport displays flight statuses, Tuesday, June 27, 2023, in New York. Travelers waited out widespread delays at U.S. airports on Tuesday, an ominous sign heading into the long July (AP Photo/Mary Altaffer / AP Newsroom)

United Airlines CEO Scott Kirby said that the FAA had "frankly failed [them] this weekend" in a memo to staff, noting that Big Apple weather is "something that the FAA has historically been able to manage without a severe impact on our operation and customers."  

GET FOX BUSINESS ON THE GO BY CLICKING HERETicker Security Last Change Change % UAL UNITED AIRLINES HOLDINGS INC. 56.18 +0.15 +0.27%JBLU JETBLUE AIRWAYS CORP. 8.76 +0.71 +8.82%

He said the FAA had reduced arrival rates at Newark Liberty International Airport – one of United's hubs – by 40% and the departure rates by 75%.

"This is almost certainly a reflection of understaffing/lower experience at the FAA," Kirby wrote. "It led to massive delays, cancelations, diversions, as well as crews and aircraft out of position. And that put everyone behind the eight-ball when weather did hit on Sunday and was further compounded by FAA staffing shortages Sunday evening." 

Scott Kirby, chief executive officer of United Airlines Holdings Inc., during an interview in New York, on Monday, June 12, 2023. (Christopher Goodney/Bloomberg via Getty Images / Getty Images)

He highlighted that more than 150,000 United Airlines customers in the New York City area were impacted over the weekend "because of FAA staffing issues and their ability to manage traffic." 

People queue for their flight reschedule inside of the Newark International Airport on June 27, 2023, in Newark, New Jersey. (Kena Betancur/Getty Images / Getty Images)

However, Kirby explained that the staffing issue is "not [the] fault of the current FAA leadership," as this has been a problem that has "been building up for a long time." 

There were no East Coast staffing triggers Monday or Tuesday, according to the FAA. 

A United Airlines aircraft takes off in front of New York City’s skyline at Newark Liberty International Airport in Newark, New Jersey, on March 9, 2023. (Photo by ED JONES/AFP via Getty Images / Getty Images)

A spokesperson for the agency told Fox Business Digital on Tuesday that it will "always collaborate with anyone seriously willing to join us to solve a problem."

Kirby had told his employees that he plans to speak with FAA officials and the Department of Transportation to determine what actions can be taken to prevent such turmoil this summer.

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The National Weather Service says more showers and thunderstorms are projected in the Northeast through Friday.

Fox Business' Daniella Genovese and the Associated Press contributed to this report. 

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Politics

Reform UK tops landmark poll for first time

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Reform UK tops landmark poll for first time

Reform have topped a Sky News/YouGov poll for the first time as the party continues to shake up British politics.

Nigel Farage’s Reform UK has edged in front on 25%, with Labour pushed into second on 24% and the Tories on 21%.

The YouGov poll, taken on Sunday and Monday, also puts the Lib Dems on 14% and Greens on 9%.

Watch and follow reaction and analysis live in the Politics Hub

Reform have overtaken Labour in the latest Sky News/YouGov poll

All the polling moves that push Reform UK to the top for the first time this week are within the margin of error and the overall picture remains unchanged – with Britain in a new period of three party politics in the polls.

However, the symbolism of Reform UK topping the poll is likely to be seized on by MPs from all parties.

More on Conservatives

One in five Tory voters at the last election would now vote for Reform.

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Is Reform UK winning the ‘bro vote’?

The Tories are likely to be the hardest hit by the poll, having been in third place since YouGov restarted polling after the general election.

The Sky News/YouGov poll also found Kemi Badenoch has slipped behind Nigel Farage when voters are asked whether they have a favourable or unfavourable opinion of the leaders.

Last month, Badenoch has a net favourability rating of -25, but that has now dropped to -29 this month.

This puts her below Farage, who had a net favourability rating of -32 last month, which has now risen to -27 this month.

Conservative Party leader Kemi Badenoch giving a speech at 116 Pall Mall.
Pic: PA
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Kemi Badenoch has fallen behind Nigel Farage in terms of net favourability rating. Pic: PA

Keir Starmer is less popular than both Farage and Badenoch, with his net favourability rating now at -36.

Lib Dem leader Ed Davey is much more popular, with his net favourability rating now at -9 – although this is not directly translated across into voting intention.

These figures are likely to restart the debate in the Tory party about whether they should consider merging with Reform UK, something which Badenoch has repeatedly rejected.

Prime Minister Keir Starmer. Pic: PA
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Sir Keir Starmer is less popular than both Kemi Badenoch and Nigel Farage. Pic: PA

A total of 43% of those polled who voted Tory in the last general election support a merger, compared with 31% against.

Reform UK voters are more likely to oppose, with 40% against and 31% for.

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Politics

Starmer must delicately balance his risky EU reset as UK braces for Trump’s next move on tariffs

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Starmer must delicately balance his risky EU reset as UK braces for Trump's next move on tariffs

As Donald Trump kicks off his threatened trade war by slapping tariffs on both friends and foes alike, Number 10 is preparing for the moment he turns his attention to the UK.

The unpredictability of the returning president, emboldened by a second term, means the prime minister must plan for every possible scenario.

Under normal circumstances, the special relationship might be the basis for special treatment but the early signs suggest, maybe not.

Donald Trump and Keir Starmer.
Pic:Reuters
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Donald Trump and Keir Starmer. Pic: Reuters

It was never going to be an easy ride, with Sir Keir Starmer’s top team racking up years of insults against Trump when they were in opposition.

The bad feeling continued when Peter Mandelson was proposed as the UK’s new ambassador to the US – prompting speculation he might even be vetoed.

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Tariffs against Canada ‘will put US jobs at risk’

Amid all of this, the much-anticipated call between the two leaders seemed slow to take place, although it was cordial when POTUS finally picked up the phone last Sunday, with a trip to Washington to come “soon”.

It is against this slightly tense backdrop that the future of transatlantic trade will be decided, with Westminster braced for the impact of the president’s next move.

So, it’s unsurprising that as he waits, Sir Keir will spend the next few days resetting a different trading relationship – with Europe.

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Sky’s Ed Conway explains Donald Trump’s plan for tariffs

In this area, he is on slightly firmer ground, as the spectre of a global trade war makes European leaders want to huddle closer together to weather the storm.

And conversely, the Labour government’s track record works in their favour here, as they cash in their pro-EU credentials and wipe the slate clean after the bad-tempered Boris Johnson years.

Read more:
Lib Dem leader shrugs off Musk insult
Home secretary’s warning about recruiting from abroad

Ursula von der Leyen and  Keir Starmer address the media in Brussels.
Pic: Reuters
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Ursula von der Leyen and Keir Starmer address the media in Brussels in October. Pic: Reuters

It is still, however, an ambitious and risky endeavour to begin the delicate process of removing some of the most obstructive post-Brexit bureaucracy.

For minimal economic benefits on both sides, the UK must convince the Europeans that they are not letting Britain “have its cake and eat it”.

At the same time, Brexiteers back at home will cry betrayal at any hint that the UK is sneaking back into the bloc via the back door.

Donald Trump takes questions as he speaks to reporters.
Pic Reuters
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Pic: Reuters

To make it even trickier, it must all be done with one eye on Washington, because while a united Europe may be necessary in the Trump era, the prime minister will not want to seem like he is picking sides so early on.

As with so many things in politics, it’s a delicate balancing act with the most serious of consequences, for a prime minister who is still to prove himself.

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Environment

GM is cutting a shift at its EV plant in Mexico because of the Honda Prologue

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GM is cutting a shift at its EV plant in Mexico because of the Honda Prologue

GM cut a shift at its Ramos Arizpe manufacturing plant in Mexico, where it builds the Chevy Equinox EV and Honda Prologue. According to GM, the move was due to Honda’s decision to slow Prologue output. With sales of its sole electric SUV in the US surging, why is Honda cutting back?

GM cuts shift at Mexico EV plant over Prologue output

Although GM just added a third shift in May 2024, the plant returned to a two-shift schedule starting on January 20.

The move was initially thought to be because its contract to build the Prologue ended, but it turns out that Honda is scaling back.

“This change is mainly due to our customer Honda’s strategy of reducing the production volume of the Prologue model,” GM said in a statement. The shift was added to meet higher export demand for gas engines and Ultium-based EVs like the Chevy Equinox and Blazer EVs and Honda’s Prologue.

With less Prologue EV output, GM no longer needs the extra shift in Mexico. According to Mexico Business News, the company is eliminating 800 jobs at the plant due to the changes.

GM-shift-Mexico-EV
2024 Honda Prologue Elite (Source: Honda)

GM also said the changes were due to “an adjustment in the mix of production of GM vehicles at the site,” so it wasn’t entirely the Prologue’s fault. The company also builds gas-powered Chevy Blazers at the site.

Honda didn’t confirm the changes, but a spokesperson (via Automotive News) said, “It is quite normal for our business to make production adjustments during the year in order to meet customer needs and market conditions. We will continue to carefully manage production and inventory for our entire product lineup to meet anticipated demand in 2025.”

GM-shift-Mexico-EV
Chevy Equinox EV LT (Source: GM)

After delivering the first models in March, Honda’s Prologue was one of the best-selling EVs in the US in 2024. With over 33,000 models sold last year, Honda’s electric SUV was the seventh top-selling EV, ahead of the Chevy Equinox EV (28,874).

Electrek’s Take

Given that the Prologue is one of the top-selling EVs, why is Honda slowing production? Honda is moving away from GM’s Ultium platform with its upcoming 0 Series EVs, but that isn’t the reason yet.

The Prologue was once again one of the top-selling EVs in the US last month. With 3,744 models sold, it outsold Ford’s Mustang Mach-E (3,529), the Hyundai IONIQ 5 (2,250), and the Kia EV6 (1,542).

The move to slow output at this point is questionable. As more details unfold, we’ll learn more. Check back for more information on the situation.

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