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FILE PHOTO: Alitalia planes at Leonardo da Vinci-Fiumicino Airport in Rome
FILE PHOTO: Alitalia airplanes pictured at Leonardo da Vinci-Fiumicino Airport in Rome, Italy, March 30, 2019. REUTERS/Alberto Lingria/File Photo

April 5, 2019

MILAN (Reuters) – Italy’s Deputy Prime Minister Luigi Di Maio said on Friday there were investors ready to get involved in a rescue plan for troubled flagship carrier Alitalia.

“Partners are there”, Di Maio said on the sideline of an event in Milan.

A deadline for Ferrovie dello Stato to present a rescue plan for Alitalia has been extended by one month to end-April after the Italian railway group, which is in talks with Delta Air Lines over Alitalia, failed to present a business plan for the carrier in time.

(Reporting by Francesca Landini, writing by Elvira Pollina, editing by Valentina Za)

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An airplane of Avianca flies over the Guanabara Bay as it prepares to land at Santos Dumont airport in Rio de Janeiro
An airplane of Avianca flies over the Guanabara Bay as it prepares to land at Santos Dumont airport in Rio de Janeiro, Brazil, April 3, 2019. REUTERS/Sergio Moraes

April 5, 2019

SAO PAULO (Reuters) – Brazil’s antitrust regulator said on Friday that a plan announced by the country’s top two airlines, Gol Linhas Aereas Inteligentess and LATAM Airlines, to acquire some of competitor Avianca Brasil’s airport slots could run afoul of antitrust laws.

Avianca Brasil is going through bankruptcy and plans to auction some of its most coveted airport slots this month. Smaller competitor Azul SA had planned to acquire the assets but the deal fell apart. A potential acquisition by Azul would be less worrying on antitrust grounds, the anti-trust regulator Cade said.

(Reporting by Marcelo Rochabrun; Editing by Chizu Nomiyama)

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Three years ago, news of the end came at the municipal airport in Santa Monica. Bernie Sanders had parachuted into California dozens of times in a last-ditch effort to keep his presidential ambitions alive. But even as the Democratic-Socialist-turned-Democratic contender promised supporters gathered in an aging airline hanger that he would “continue to fight,” his self-styled “revolution” was effectively over.

The Sanders camp had hoped a win in delegate-rich California would bolster the candidate’s standing ahead of a delegate fight at the Democratic National Convention. The Golden State loss crushed those dreams, as Hillary Clinton cruised to victory there and clinched the nomination.

That was the fate of Bernie the insurgent in 2016. Bernie 2.0 is preparing for next year’s election as the ideological trailblazer of the newly insurgent left and an unlikely frontrunner in the Democrats’ large presidential field. To avoid being caught short in California again, Sanders has is making a concentrated and early effort there. Jeff Weaver, who managed the Vermont senator’s campaign in 2016, told reporters this week that the candidate will be prepared to compete in California and across the country.

“While in 2016 we had to make choices about where we could compete, I’m certain that in this race that some of our other opponents will have to make similar difficult choices,” he said. “This campaign will have the resources and volunteer strength to compete in every single state in the primary process.”

Part of this is simple necessity. Although California is fellow candidate Kamala Harris’ home state, the move of the primary from June to March has made it impossible to ignore. Instead of playing its traditional role as the final battleground – and sometimes an irrelevant one — the Golden State will serve as “the gatekeeper” this time around, predicts veteran California pollster Paul Mitchell.

“If a candidate doesn’t do well in the early primary states but wins California, they get to April. Period. No questions,” Mitchell told RealClearPolitics. The inverse is also true. “If someone does well in Iowa and New Hampshire but doesn’t do well in California,” he continued, “other candidates could swamp them.”

California’s early influence is also enhanced by its emphasis on early voting. Voters are automatically registered and can vote by mail, an option that two-thirds of the electorate took advantage of in 2018. Mitchell expects turnout in 2020 to top 20 million — with 16 million of those votes cast through the post office. Those ballots will be made available on Feb. 3, the same day Iowa Democrats go to the caucuses for their first-in-the-country contest.

According to analysis from Mitchell’s nonpartisan firm, Political Data Inc., this means California will start making its decision long before the race officially begins. Five percent will have voted by the time Iowa tabulates results, over 25 percent by the end of the New Hampshire primary, and a whopping 40 percent when the South Carolina contest concludes.

This means that California won’t be a sprint so much as it will be a month-long slog favoring the candidate with the best ground game and the most resources to put it into action. And this favors Harris, in particular. California’s freshman senator enjoys home field advantage.

One of her advisers, Averell Smith, told David Axelrod as much during a podcast last fall. He said that the early California primary with its early voting would be “a fun thing.” History may call it the key to Harris’ 2020 strategy if she wins the nomination.

“So the day Iowa votes,” the Obama former top strategist said, “California will begin voting, and that should be an enormous advantage to a candidate who is from California, which will have about what, 12 percent of the delegates?”

A Harris head start isn’t insurmountable, and there are signs Sanders is the candidate beat. The Harris campaign announced a $12 million fundraising haul in the first quarter, a sum raised from 218,000 individuals around the country. But Sanders took in $18 million from 525,000 unique donors – and, as his campaign gleefully informed reporters, 167,000 of those contributors call California home.

What’s more, as Mitchell notes, California is hardly a monolith. The pollster expects different candidates to target to different chunks of the electorate to keep the race tight.

Entrepreneur Andrew Yang will try to appeal to the tech sensibilities of Silicon Valley. Openly gay South Bend Mayor Pete Buttigieg will make a strong pitch to LGBT communities, especially in San Francisco. Former HUD Secretary Julian Castro will court Latino voters throughout the state. Eric Swalwell, a Democratic congressman from the San Francisco Bay Area, is toying with his own run. Above all towers former Vice President Joe Biden, who has not yet declared but who has national name recognition surpassing that of Harris and Sanders.

With the California contest being billed as the battle royale of the 2020 primary, influential players are remaining mum. Sen. Dianne Feinstein, Harris’ fellow home-state Democratic senator, insists she isn’t paying attention to Sanders’ recent visit and hasn’t been tracking his efforts to win the state’s 55 delegates.

“I haven’t heard about it so I can’t respond,” she told RCP.

Asked if she thinks, as California’s junior senator, Harris should be more competitive than Sanders in her own state, Feinstein said Harris would give him a run for his money.  

“She will be competitive in California,” she said. “I have no doubt about that.”

Pressed further as to why Sanders has so many donors in the state — nearly three-fourths the number of Harris’ — Feinstein demurred: “Oh, I’m not going to get into any of that now — good try.”

That coyness may be indicative of a previous loyalty. Earlier this year, Feinstein said it would be difficult not to support Biden if he runs for president in 2020.

“I worked with him, I saw him in action, I saw him as vice president, I saw his growth, his ability and I saw his humanity,” the five-term senator told reporters in January. “He’s an incredible human being. It’s very hard for me, if he runs, to ignore that.”

Asked about Harris, Feinstein said, “I love Kamala. But this is a different kind of thing.”

The race will certainly be a different kind of thing, thanks to the new California schedule and a field that has moved farther left than any other in recent memory. While focus will shift to the early primary states, politicos and pollsters admit that the political gaze will remain fixed on the Golden State and its delegate windfall.

Some still shy away from describing California as the Holy Grail of 2020. Virginia Sen. Tim Kaine, Clinton’s running mate in 2016, acknowledged the outsized role the state can play but urged caution. “It’s important,” Kaine said, “but you can do well in California and not so well elsewhere — that’s why it’s wide open.”

To avoid a repeat of his last loss, though, Sanders has established an early beachhead in the state. It could be key to keeping his second “revolution” rolling.

Susan Crabtree contributed to this report.

FILE PHOTO: SilkAir Boeing 737 Max 8 sits near hangar in Singapore
FILE PHOTO: A SilkAir Boeing 737 Max 8 plane (behind) sits on the tarmac near a hangar after suspended operations for all Boeing 737 Max 8 planes, at Changi Airport in Singapore, March 12, 2018. REUTERS/Edgar Su/File Photo

April 5, 2019

SINGAPORE (Reuters) – The Civil Aviation Authority of Singapore on Friday said that it would participate in a technical review panel on the Boeing Co 737 MAX jet led by the U.S. Federal Aviation Administration (FAA).

The FAA said on Wednesday that it is forming an international team to review the safety of the Boeing 737 MAX, which was grounded after two fatal crashes since October.

(Reporting by Jamie Freed; Editing by David Goodman)

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FILE PHOTO: Workers cover the cockpit window of a Jet Airways aircraft parked at the Chhatrapati Shivaji Maharaj International Airport in Mumbai, India
FILE PHOTO: Workers cover the cockpit window of a Jet Airways aircraft parked at the Chhatrapati Shivaji Maharaj International Airport in Mumbai, India, March 26, 2019. REUTERS/Francis Mascarenhas/File Photo

April 5, 2019

By Aditya Kalra and Aditi Shah

NEW DELHI (Reuters) – Lessors to India’s Jet Airways Ltd are planning to ask the country’s aviation regulator to de-register many more planes leased to the airline, three sources told Reuters, signaling that a planned bailout of the troubled carrier is failing to assuage their concerns.

About six of Jet’s lessors are likely to apply to India’s Directorate General of Civil Aviation (DGCA) to de-register up to 15 of the grounded planes, over the next 10 days, said one of the sources with direct knowledge of the situation.

Once a plane is de-registered, the lessors are free to take them out of the country and lease them to other airlines.

While some lessors have already taken a few planes out of India after a mutual agreement with Jet, sources have told Reuters, the latest series of applications to the DGCA would be on a non-consensual basis.

Jet did not immediately respond to a request for comment.

Jet, India’s oldest private carrier now controlled by its lenders, has had to ground more than three-quarters of its fleet of 119 planes, many due to non-payment to lessors, leading to hundreds of flight cancellations.

Avolon, one of the world’s biggest aircraft lessors, on Thursday applied to the DGCA to take two of its planes placed with Jet outside of India, making it the first to pull planes out on a non-consensual basis.

About 100 of Jet’s 119 mainly Boeing Co planes are leased by companies such as Avolon, GE Capital Aviation Services (GECAS) and Aercap Holdings. It was not immediately clear which of the lessors were planning to apply for de-registration in the coming days.

(Editing by Martin Howell)

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FILE PHOTO: Ethiopian police officers walk past the debris of the Ethiopian Airlines Flight ET 302 plane crash, near the town of Bishoftu, near Addis Ababa
FILE PHOTO: Ethiopian police officers walk past the debris of the Ethiopian Airlines Flight ET 302 plane crash, near the town of Bishoftu, near Addis Ababa, Ethiopia March 12, 2019. REUTERS/Baz Ratner/File Photo

April 5, 2019

By Tim Hepher, Eric M. Johnson and Jamie Freed

PARIS/SEATTLE/SINGAPORE (Reuters) – Minutes after take-off, the pilots of an Ethiopian Airlines 737 MAX were caught in a bad situation.

A key sensor had been wrecked, possibly by a bird strike. As soon as they retracted the landing gear, flaps and slats, it began to feed faulty data into the Maneuvering Characteristics Augmentation System (MCAS), designed to prevent stalls.

Flying faster than recommended, the crew struggled with MCAS. But the high speed made it nearly impossible to use the controls to pull the nose up.

Moments later, the Boeing Co jet hit the ground, killing all 157 people onboard after six minutes of flight.

Ethiopian authorities said on Thursday that the pilots followed all the correct procedures in trying to keep MCAS from sending the plane into a fatal dive.

But the full picture of what happened in the cockpit of Flight 302 on March 10 is emerging from a preliminary report and a newly released data plot showing how crew and technology interacted.

The airline’s youngest-ever captain, a 29-year-old with an impressive 8,100 hours flying time, and his rookie 25-year-old co-pilot may have made a crucial mistake by leaving the engines at full take-off power, according to data and other pilots.

By the end, the aircraft was traveling at 500 knots (575 mph, 926 kph), far beyond its design limits.

That and some other potential missteps may have left them unable to fight flawed Boeing software that eventually sent the jet into an uncontrollable dive, experts said after studying the data.

“Power being left in take-off power while leveling off at that speed is not a normal procedure,” said one U.S. pilot, who declined to be named because he was not authorized to speak to the media. “I can’t imagine a scenario where you’d need to do that.”

The Ethiopian Airlines crash, and another in Indonesia five months earlier, have left the world’s largest planemaker in crisis as its top-selling jetliner is grounded worldwide, and Ethiopia scrambling to protect one of Africa’s most successful companies.

Boeing is working on a software fix for MCAS and extra pilot training, which its chief executive, Dennis Muilenburg, said would prevent similar events from happening again.

BIRD STRIKE

Sources who reviewed the crash data said the problems started barely 12 seconds after take-off.

A sudden data spike suggests a bird hit the plane as it was taking off and sheared away a vital airflow sensor.

As with the Lion Air crash in Indonesia, the damaged ‘angle of attack’ sensor, which tells pilots what angle the aircraft has relative to its forward movement, may have set off a volatile chain of events.

In both cases, the faulty sensor tricked the plane’s computer into thinking the nose was too high and the aircraft was about to stall, or lose lift. The anti-stall MCAS software then pushed the nose down forcefully with the aircraft’s “trim” system, normally used to maintain level flight.

The first time the MCAS software kicked in, the Ethiopian Airlines pilots quickly countered the movement by flicking switches under their thumbs – they had recognized the movements as the same type all flight crews had been warned about after the Lion Air flight. 

But data suggest they did not hold the buttons down long enough to fully counteract the computer’s movements. At that point, they were a mere 3,000 feet above the airport, so low that a new warning – a computerized voice saying “don’t sink” – sounded in the cabin.  

     When MCAS triggered again, the jetliner’s trim was set to push the nose down at almost the maximum level, while the control yoke noisily vibrated with another stall warning called a “stick shaker.” 

    This time, the pilots countered MCAS more effectively. But when they turned off the system – as they were instructed to do by Boeing and the U.S. Federal Aviation Administration (FAA) in the wake of the Lion Air disaster – the nose was still pointed downward, leaving the jetliner vulnerable.

The combination of excess speed and cutting off the system while the plane was still leaning downwards meant up to 50 pounds of force would be needed to move the control column, and moving the manual trim wheels was impossible.

‘PULL UP, PULL UP’

The captain called out “pull up” three times. The co-pilot reported problems to air traffic control.

In the meantime, the aircraft’s speed remained abnormally high.

The bird strike and loss of airflow data would have affected airspeed information too. In such cases, pilots know to turn off automatic engine settlings and control thrust manually.

But the report says “the throttles did not move,” without elaborating. Data confirms the engines stayed at nearly full power. Other 737 pilots say that made the crew’s job tougher by making the controls much harder to move.

Some experienced pilots said there were an array of stressful factors sapping the pilots’ attention, which Muilenburg addressed on Thursday.

“As pilots have told us, erroneous activation of the MCAS function can add to what is already a high-workload environment,” Muilenburg said. “It’s our responsibility to eliminate this risk. We own it and we know how to do it.”

Among the distractions was a “clacker” warning telling the pilots their aircraft was going too fast.

As the nose gradually fell, the pilots turned to a last-resort device to adjust the plane’s trim.

The captain asked the young co-pilot to try to trim the plane manually using a wheel in the center console to lift the nose and make it easier to recover from the dive.

But it was too hard to move the wheel. Both men then tried to pitch the nose up together. The captain, according to the report, said it was not enough.

MCAS RE-ACTIVATES

In a possible last-ditch attempt to level the plane, data suggests the pilots turned MCAS-related systems back on. That would also reactivate the electric trim system, and perhaps make it easier for the pilots to force the reluctant nose higher.

Reactivating MCAS is contrary to advice issued by Boeing and the U.S. Federal Aviation Administration after Lion Air. The report did not address that.

The pilots managed to lift the nose slightly using the electric thumb switches on their control yokes. But data suggest they may have flicked the switches too gingerly.

With its power restored, a final MCAS nose-down command kicked in, eventually pushing the nose down to a 40 degree angle at an airspeed of up to 500 knots, far beyond the plane’s operating limits.

As the 737 MAX plunged, G-forces turned negative, pulling occupants out of their seats and possibly inducing a feeling of weightlessness as the plane hurtled toward the ground.

Just six minutes after take off, the plane crashed into a field.

(Additional reporting by Jason Neely in Addis Ababa, Tracy Rucinski in Chicago, David Shepardson in Washington, Allison Lampert in Montreal; Editing by Gerry Doyle)

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FILE PHOTO: U.S. dollars and other world currencies lie in a charity receptacle at Pearson international airport in Toronto
FILE PHOTO: U.S. dollars and other world currencies lie in a charity receptacle at Pearson international airport in Toronto, Ontario, Canada June 13, 2018. REUTERS/Chris Helgren

April 5, 2019

By Shinichi Saoshiro

TOKYO (Reuters) – The dollar rose to a three-week high versus the yen on Friday, lifted by expectations that a protracted trade dispute between the United States and China would be resolved soon.

The greenback has gained about 0.85 percent against its safe-haven Japanese peer this week, thanks also to factors such as strong U.S. economic data and broad improvement in risk appetite.

The trade war between the world’s two biggest economies has been a major distraction for financial markets over the past year, with riskier assets in particular taking a hit on worries about the broadening business and growth impact of the conflict.

U.S. President Donald Trump said on Thursday both countries were getting very close to a trade deal that could be announced within four weeks.

On the economic front, investors will have an opportunity to gauge the health of the world’s largest economy when the March U.S. jobs report is released at 1230 GMT.

“In particular focus is how strong the earnings component of the jobs report turns out to be. A strong wages outcome would underline robust private consumption and hasten the rebound in Treasury yields and in turn allow dollar/yen to test fresh highs,” said Junichi Ishikawa, senior FX strategist at IG Securities in Tokyo.

The dollar extended overnight gains and rose to 111.80 yen, its highest since March 15.

The euro was steady at $1.1223, capped firmly after data released on Thursday showed German industrial order dropped in February.

The pound was nearly flat at $1.3074 after shedding 0.7 percent overnight.

Sterling slipped on Thursday, snapping a three-day rising streak, as concerns rose that Britain may be headed for a protracted Brexit delay. [GBP/]

Britain could ask the European Union for a long Brexit delay next week if crisis talks between Prime Minister Theresa May’s government and the opposition Labour Party fail to find a way out of the impasse over the divorce from the European Union.

The dollar index against a basket of six major currencies was unchanged at 97.300 after rising 0.2 percent the previous day.

The Australian dollar was a touch higher at $0.7120.

The currency has risen about 0.3 percent this week, supported as signs of progress in the U.S.-China trade dispute lifted risk assets and commodity prices.

(Reporting by Shinchi Saoshiro; Editing by Shri Navaratnam)

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Airlines workers check passengers in for flights at the ticket counter at Dulles International Airport in Dulles, Virginia, U.S.
Airlines workers check passengers in for flights at the ticket counter at Dulles International Airport in Dulles, Virginia, U.S. September 24, 2017. REUTERS/James Lawler Duggan

April 4, 2019

By Yeganeh Torbati

WASHINGTON (Reuters) – The U.S. government granted waivers to just 6 percent of visa applicants subject to its travel ban on a handful of countries during the first 11 months of the ban, new data reviewed by Reuters shows.

Trump administration officials have pointed to the waiver process embedded in the travel ban as proof it was not motivated by animus toward Muslims, as critics have charged, but rather serves to protect the United States.

In June 2018, after legal challenges defeated earlier iterations of the ban, the Supreme Court upheld a revised version and wrote in its majority opinion that the waiver program supported the government’s claims that the ban served “a legitimate national security interest.”

But new data shows that only 6 percent of people subject to the travel ban were ultimately granted waivers during the first 11 months of the ban’s full implementation.

Between Dec. 8, 2017 and Oct. 31, 2018, State Department officers ruled on nearly 38,000 applications for non-immigrant and immigrant visas filed by people subject to the travel ban who otherwise qualified for the visas and needed waivers to get them.

They determined that just 6 percent – or 2,216 applicants – met the criteria for a waiver. Of those, 670 had not yet received their visas but were expected to do so.

The data was provided in a Feb. 22 letter from Assistant Secretary of State Mary Taylor to Democratic Senator Chris Van Hollen. The letter was received by Van Hollen’s office on Wednesday, and his office provided it to Reuters.

“This data paints a clear – and deeply disturbing – picture of the Trump travel ban,” Van Hollen said in a statement to Reuters. “The administration repeatedly swore to the Supreme Court and the American people that this was not a de-facto Muslim ban and that there was a clear waiver process to ensure fairness. That couldn’t be further from reality.”

The State Department did not immediately respond to a request for comment.

The travel ban blocks citizens of Iran, Libya, North Korea, Somalia, Syria and Yemen, as well as some Venezuelan officials and their relatives, from obtaining a broad range of U.S. immigrant and non-immigrant visas. Chad was previously covered by the ban but was removed in April 2018.

The latest data show a slight increase in the waiver issuance rate. Data from December 2017 through April 2018 showed that waivers were issued in 2 percent of visa applications filed by people subject to the travel ban.

TREMENDOUS HARDSHIPS

The ban’s restrictions vary from country to country – Somalis, for instance, can receive short-term visas and Iranians are allowed to get student visas, while North Koreans are blocked from all visas.

In addition to the almost 38,000 applications considered for a travel ban waiver, around 8,100 by people from countries subject to the travel ban were refused in the 11-month period for reasons unrelated to the ban, and nearly 2,600 applicants were found eligible for visas based on exceptions to the ban and thus did not need a waiver.

Critics say the waiver process is shrouded in secrecy, with vague standards and little information given to applicants about how they can qualify or apply for one. Two federal lawsuits are contesting the fairness of the process.

The official criteria for a waiver is a three-part test assessing whether denying entry to an applicant would cause “undue hardship,” if entry of the person would not pose a threat to the United States, and if entry would be in the national interest.

There is no application for a waiver – the State Department says it “automatically” considers applicants for them.

“They (the State Department) are actually actively telling applicants, ‘We don’t want your materials in support of a waiver,’” said Mahsa Khanbabai, an immigration attorney in Massachusetts who has clients subject to the ban. “Even in the cases where they do take them, the extraordinary amount of time that it takes to make a decision causes tremendous hardships for people.”

(Reporting by Yeganeh Torbati; Editing by Kieran Murray and Daniel Wallis)

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FILE PHOTO: Jet Airways aircrafts are seen parked at the Chhatrapati Shivaji Maharaj International Airport in Mumbai
FILE PHOTO: Jet Airways aircrafts are seen parked at the Chhatrapati Shivaji Maharaj International Airport in Mumbai, India, March 26, 2019. REUTERS/Francis Mascarenhas/File Photo

April 4, 2019

(Reuters) – Lenders to India’s Jet Airways said on Thursday that they intend to push forward with their plan to rescue the troubled airline, but offered no clarity on interim funding, leaving the future of the carrier hanging in the balance.

Last month, Jet’s lenders, led by State Bank of India (SBI) , agreed to bailout the airline in a complex deal that involved the banks taking a majority stake, while seeking out an investor to help revive the company’s fortunes.

The rescue plan also included a $218 million interim loan to keep the airline afloat.

However, a source familiar with the matter told Reuters late on Thursday that the lenders, which also includes Punjab National Bank (PNB), were yet to decide on the interim loan for the beleaguered carrier.

The two state-run banks, SBI and PNB, did not have immediate comments on the matter.

In their joint statement issued late on Thursday, the lenders said they intend to pursue the previously proposed rescue plan “in a time-bound manner under the present legal and regulatory framework.”

Jet, India’s oldest private carrier, has been saddled with more than $1 billion in debt, compounding its financial woes and forcing it to ground more than two-thirds of its fleet.

However, the Indian government is keen to see that the airline survives, as its failure will result in tens of thousands of direct and indirect job losses, potentially denting sentiment just as Indian Prime Minister Narendra Modi seeks to secure a second term in a general election set to commence later this month.

Senior government sources familiar with the matter told Reuters last month that the Indian government had asked state-run banks to keep the airline flying.

It is crucial for India to ensure the survival of Jet as the fall of its second-largest airline could have “disastrous consequences for the investment climate” in the sector, a top government official had told Reuters.

In Thursday’s statement, Jet’s lenders said they plan to seek expressions of interest in the airline from potential investors from April 6 and that all submissions from interested parties are expected to be completed by April 9.

The lenders said they would consider other options should the stake-sale process “not result in an acceptable outcome.”

(Reporting by Euan Rocha in New Delhi and Mekhla Raina in Bengaluru; Editing by Anil D’Silva)

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FILE PHOTO - Maldivian President Mohamed Solih and his wife Ahmed look on during a welcome ceremony at the airport as he is on a 3-day visit, in Katunayake
FILE PHOTO – Maldivian President Ibrahim Mohamed Solih and his wife Fazna Ahmed look on during a welcome ceremony at the airport as he is on a 3-day visit, in Katunayake, Sri Lanka February 3, 2019. REUTERS/Dinuka Liyanawatte

April 4, 2019

By Mohamed Junayd

MALE (Reuters) – The Maldives heads for a parliamentary election on Saturday with President Ibrahim Mohamed Solih seeking a majority for his party to investigate debts to China, which it fears could run as high as $3 billion and risk sinking the economy.

Since he unseated pro-China leader Abdulla Yameen in September, Solih’s Maldivian Democratic Party (MDP), which has governed in a coalition with three other parties, has warned that a building boom has left huge debts to Chinese lenders.

The Maldives, a tropical archipelago in the Indian Ocean with some 260,000 voters, has been caught in a battle for influence between India and China, which invested millions of dollars during Yameen’s rule as part of its Belt and Road plan.

The MDP has pledged to investigate the infrastructure projects and determine the islands’ true debt to China, which it says could be as a high as $3 billion. Yameen denies any wrongdoing in relation to the Chinese debt.

The MPD currently only has a majority with the support of its coalition partners, including The Jumhooree Party, which has been absent from votes to begin any graft investigation.

“The president has not been getting the support and cooperation he needs,” MDP spokesman Afshan Latheef said.

“It’s vital that the MDP gets a majority in parliament in order to fully investigate corruption and embezzlement, to seek justice for those disappeared and murdered and to fulfill the pledges of the government,” he added.

The Jumhooree leader, parliament speaker Gasim Ibrahim, could not immediately be reached for comment. In past he has said appointing commissions to conduct inquiries is unconstitutional.

The Jumhooree Party and Yameen’s Progressive Party of Maldives (PPM) are both campaigning on a nationalist, religious platform.

Gasim has said an MDP majority would allow it to push for a secular Maldives and build churches and temples in the Muslim-majority country.

The MDP, which is competing against its current coalition partners in many constituencies, has fielded candidates for 85 seats in the 87-member parliament, while the Jumhooree Party has put up 51 candidates. PPM is contesting 50 seats.

There are no independent election opinion polls.

Last month, Yameen spent more than a month in police custody over a graft scandal aimed at siphoning money from the islands’ tourism board.

He was released on bail on March 28 in time for the last week of campaigning, and denies the charges.

(Additional reporting and writing by Shihar Aneez; Editing by Alasdair Pal and Alison Williams)

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