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U.S. private jet buyers seek distressed planes in early sign of turbulence

2023-01-24T11:13:47Z

Some U.S. business jet buyers are looking for new aircraft whose current owners are having trouble making payments ahead of delivery, in a possible sign of early cracks in what has been a soaring market up to now.

From preowned planes selling more gradually to flattening business jet traffic, demand is beginning to moderate, aviation lawyers, brokers and analysts said. While defaults remain rare, those signs of uneven demand are drawing attention.

One business jet executive said he has seen a few distressed planes and customers who are late on payments due to financial hardships, some of whom are from parts of Eastern Europe or Latin America where economic growth is expected to slow.

“We’re watching to see if it will level off as a soft landing versus something else,” said the executive, who asked not to be identified.

Investors will be watching for clues when Gulfstream-maker General Dynamics Corp (GD.N) and Cessna business jet maker Textron Inc (TXT.N) report earnings on Wednesday. Private jet makers have assured investors their billion-dollar backlogs and ongoing demand would cushion any blow from a possible recession.

Planemakers rarely disclose cases of distressed planes, but argue they can easily resell unwanted models.

“If, for any reason, the final sale of an aircraft does not occur, the sales team works to match the aircraft with a similar customer’s mission, location and timeline,” said Lannie O’Bannion, a senior vice president at Textron’s aviation unit.

During the COVID-19 pandemic, surging wealth, access to cheap cash, and demand from elite travelers fueled a sellers’ market for business jets that left planemakers with swollen backlogs and long waits for certain models.

But rising interest rates that have hiked borrowing costs and growing signs of a looming recession have led some buyers to delay purchases.

With demand still strong for the moment, some eager buyers are hunting for distressed assets as a way to short-circuit the still-long wait for new planes, industry officials said. Some buyers also scrambled late last year to find distressed planes to qualify for favorable taxation rules.

Brian Proctor, chief executive of aviation advisory and brokerage firm Mente Group, said he has two buyers that would look at a distressed new plane “even if it wasn’t 100% perfect.”

Meanwhile, aviation attorney Stewart Lapayowker said he knew of a few buyers “waiting on the sidelines ready to jump into a delivery that’s in default” given that some vulnerable customers were rethinking earlier orders.

At the same time, the speed of sales has slowed, with preowned aircraft now taking weeks to sell instead of hours or days during late 2021, Proctor said.

In another sign the market may be calming, inventory levels of listed preowned planes for sale grew more than 40% during the back half of 2022, said aviation analyst Brian Foley, citing data from industry specialist AMSTAT.

Research consultancy WINGX said branded charter activity in North America fell 2% last year. WINGX sees 2023 flight activity falling from pandemic levels, but still ahead of 2019.

Another factor giving buyers pause is the growing backlash over emissions, with countries like Belgium planning to tax corporate aircraft and the labeling of some U.S. celebrities who own jets as “climate criminals.”

Zipporah Marmor, vice president at business aviation services company ACASS, recalled one deal for a preowned business jet that fell apart following proposals in Europe to ban, tax or regulate private aircraft. The European company’s board discouraged the deal.

Montreal business jet maker Bombardier (BBDb.TO), which reports earnings on Feb. 9, has said it was able to resell four or five airplanes originally destined for buyers in Russia before the war in Ukraine to other customers.

Aerospace analyst Richard Aboulafia said the key is avoiding a crash in demand as in 2008.

“My issue is if things get 2008-bad, then the backlog is a false sense of security,” he said, adding such a crash is unlikely.

For now, one company’s collapsed deal is another buyer’s good fortune. Marmor turned the failed deal with the European company into a sale to a U.S. buyer two weeks later at a higher price.

“Buyers are willing to be more flexible to get an airplane,” she said.

Related Galleries:

A Gulfstream logo is pictured during the European Business Aviation Convention & Exhibition (EBACE) at Geneva Airport, Switzerland May 28, 2018. REUTERS/Denis Balibouse

A General Dynamics sign is shown at the International Association of Chiefs of Police conference in San Diego, California, U.S. October 17, 2016. REUTERS/Mike Blake
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“Elvis,“ “Everything Everywhere“ vie for Oscar nods on Tuesday

2023-01-24T11:05:29Z

Hollywood’s film academy will announce this year’s Oscar nominees early on Tuesday, a field expected to range from biopic “Elvis” to dark comedy “The Banshees of Inisherin” and multiverse adventure “Everything Everywhere All at Once.”

Others competing for a spot in the prestigious best picture race include Steven Spielberg’s coming-of-age film “The Fabelmans” and “Avatar: The Way of Water,” James Cameron’s blockbuster sequel that currently ranks as the sixth-highest grossing movie of all time.

Winners of the industry’s highest honors will be unveiled at a March 12 ceremony hosted by comedian Jimmy Kimmel and aired live on Walt Disney Co’s (DIS.N) ABC network.

The Oscars and other entertainment awards shows have been struggling to attract TV viewers, particularly younger ones who spend time on TikTok and YouTube.

Last year’s Academy Awards show, when Will Smith slapped presenter Chris Rock before winning best actor, drew about 15.4 million TV viewers, the second-smallest audience ever.

The Gold Derby website, which monitors Hollywood’s awards races, gives “Everything Everywhere” the best odds at the moment to ultimately win best picture. The movie stars Michelle Yeoh in a dimension-hopping action film about an exhausted woman trying to finish her taxes.

Actors expected to score nominations include Austin Butler for his portrayal of rock legend Elvis Presley, and Colin Farrell, who starred as a farmer obsessed with restoring a friendship in “Banshees.” Both won top acting honors at the Golden Globe awards this month.

Cate Blanchett is seen as a favorite for best actress for her role as a manipulative orchestra conductor in “Tar.” Yeoh and Danielle Deadwyler, who portrayed a determined mother in “Till,” also could earn nominations, according to awards experts.

Winners will be voted on by the roughly 10,000 actors, producers, directors and film craftspeople who make up the Academy of Motion Picture Arts and Sciences.

The academy added more women and people of color to its ranks after the #OscarsSoWhite uproars of 2015 and 2016, and it increased membership from outside the United States.

Related Galleries:

Michelle Yeoh poses with her award for Best Actress in a Musical or Comedy Motion Picture for “Everything Everywhere All at Once” at the 80th Annual Golden Globe Awards in Beverly Hills, California, U.S., January 10, 2023. REUTERS/Mario Anzuoni

Director Baz Luhrmann poses with cast members Austin Butler and Tom Hanks as they arrive at the London screening of ‘Elvis’ in London, Britain May 31, 2022. REUTERS/Maja Smiejkowska

An Oscars statuette on display at a screening of the Oscars in Paris, France April 26, 2021. Lewis Joly/Pool via REUTERS

Cast member Austin Butler poses as he arrives at the London screening of ‘Elvis’ in London, Britain May 31, 2022. REUTERS/Maja Smiejkowska

Ke Huy Quan poses with his award for Best Supporting Actor in a Motion Picture for “Everything Everywhere All at Once” at the 80th Annual Golden Globe Awards in Beverly Hills, California, U.S., January 10, 2023. REUTERS/Mario Anzuoni
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Former senior FBI official accused of working for Russian he investigated Charles McGonigal, a former counterintelligence chief, is also accused of taking $225,000 from a former Albanian intelligence worker while still at the FBI – WP

The News And Times Information Network – Blogs By Michael Novakhov – thenewsandtimes.blogspot.com
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#FBI #CharlesMcGonigal #McGonigal #McGonigalFBI #Counterintelligence #Deripaska Former FBI official Charles McGonigal indicted in New York and D.C. – The Washington Post washingtonpost.com/national-secur…

#FBI #CharlesMcGonigal #McGonigal #McGonigalFBI

#Counterintelligence #Deripaska

Former FBI official Charles McGonigal indicted in New York and D.C. – The Washington Post washingtonpost.com/national-secur…
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Cowboys’ last-ditch plays against Niners never have a prayer

For the second straight season, the Dallas Cowboys — the team that popularized the “Hail Mary” pass almost 50 years ago — never even had a prayer of heaving it into the end zone against the San Francisco 49ers.

Meltdowns by coach Mike McCarthy and blunders by tight end Dalton Schultz kept the Cowboys from setting themselves up for something similar to Roger Staubach’s 50-yard game-winning heave in the waning moments that stunned the Minnesota Vikings in a 1975 playoff game.

What we saw instead was this a gadget play with running back Ezekiel Elliott alone at center with no offensive linemen anywhere near him and Prescott in shotgun with 76 yards to go and 6 seconds left Sunday.

Elliott was bowled over as soon as he got off the low snap and 49ers cornerback Jimmie Ward blew up Prescott’s pass to wide receiver Kavontae Turpin.

“Very strange,” 49ers linebacker Fred Warner mused. “I don’t know if they planned to be in that situation, obviously, because it didn’t work very well. We prepare for everything. When you got players like Jimmie Ward who just come and (blow up plays) it makes it easy. We prepare for everything.”

Not so the Cowboys.

A year ago, Dallas bungled the final drive in a 23-17 wild-card loss to the 49ers at home when Prescott ran a 14-yard quarterback draw with 14 seconds and no timeouts left and then handed the ball to his center instead of the umpire, who’s the only one who can spot the ball.

That ate up too much time and Prescott never got a chance to chuck the ball into the end zone before time ran out on the Cowboys’ season.

On Sunday, the breakdowns came in bunches for the Cowboys, the final play only the capstone of a comedy of missteps and miscalculations by Dallas, who failed to make it past the divisional round for a 26th straight season.

“I don’t really want to get into detail on it, but that obviously wasn’t the plan,” McCarthy said afterward, declining to discuss what was supposed to happen on that last play.

There were plenty of other things the Cowboys bungled before that play.

McCarthy decided to punt the ball on fourth-and-10 following a sack of Prescott at the Dallas 18 with just under 3 minutes remaining. That’s a debatable decision but it’s the nearly 40 seconds the Cowboys took to punt the ball that had their flustered fans fuming.

Cameras showed McCarthy motioning the offense off the field at the 2:35 mark and the 49ers got the ball back with 2:05 left on a fair catch. That’s 40 seconds from the Cowboys’ last play to the change of possession, nearly twice as long as it usually takes.

There’s a couple of more plays right there that the Cowboys could have had once they got the ball back at their 6 with just 45 seconds and no timeouts remaining. (By the way, had Turpin gambled and let the ball bounce, it might have gone into the end zone for a touchback, giving Dallas the ball at its 20 instead).

The Cowboys weren’t done frittering away precious time, either.

On third-and-1 from the Dallas 15, Prescott hit Schultz with a 9-yard pass with 28 seconds remaining. But Schultz wasn’t going forward as he went out of bounds on a hit by cornerback Charvarius Ward, so the clock kept ticking and would go all the way down to 14 seconds before Prescott took the next snap and threw incomplete.

“You have to be going forward if you are contacted going out of bounds,” Fox Sports color analyst Greg Olsen said. “You have to fight through that contact! Chavarious Ward, he knows the rule; they coach that. You’ve got to turn up and be physical into contact and get that official to stop the clock.”

Then, on second-and-10 from his 24 with 10 seconds left, Prescott again found Schultz, this time for 15 yards to the Dallas 39, just about the outer limits for Prescott to try a Hail Mary on the final snap.

Hold up.

The catch was reversed on replay because Schultz never got his second foot down as he nonchalantly strode out of bounds.

That brought up third-and-10 from the 24 with 6 seconds left and Dallas had Elliott replace Biadasz at center with the guards and tackles lined up wide. (The formation was legal because eligible receivers T.Y. Hilton and Noah Brown were lined up outside the guards and tackles, with all seven on the line of scrimmage).

“It appears that Zeke is going to go to center,” Olsen said excitedly. “This looks like my flag football team. Obviously Mike McCarthy has been working on his end of game scenario, and let’s see what he’s got!”

San Francisco called timeout after seeing the bizarre look.

Dallas didn’t change the formation or the call when play resumed. Elliott snapped the ball and was plowed over. Prescott telegraphed his throw to Turpin, who was smothered immediately.

And the Cowboys were left heading into another offseason lamenting a loss to the 49ers in the playoffs because they couldn’t get off a Hail Mary to give them a fighting chance.

___

With contributions from AP Pro Football Writer Josh Dubow.

___

AP NFL: https://apnews.com/hub/nfl and https://twitter.com/AP_NFL

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Inside the Slow Implosion of the Democratic Party’s Vaunted Campaign Tech Firm

Less than two years after a British private equity firm acquired the campaign tech firm that holds the Democratic Party’s most sensitive data, the new parent company laid off at least 140 people.

In a companywide email on January 12, Mark Layden, the chief executive of Bonterra, the new merged company created by the private equity firm, notified staff that, in its pursuit of “long-term, efficient growth,” 10 percent of the company would be let go. Within the next several minutes, people who were laid off received emails telling them that they no longer had a job. Numerous employees shared their experiences on social media.

“Went to get coffee, by the time I came back to my comp I was locked out of all of the systems,” one Bonterra employee wrote on Twitter. “Folks lose jobs everyday but there was a better way. This was just tacky and apathetic.” Even some of those who kept their jobs announced their dissatisfaction; one tweeted the lack of warning was “just incredibly vile.”

At NGP VAN — one of the two major organizations that run the Democratic Party’s vaunted organizing, voter file, and compliance tools — and EveryAction, the fundraising software company it operates under, some 40 people lost their jobs in the layoffs.

For some employees and strategists, the layoff announcement was confirmation of exactly what they had feared from the start: that the private equity firm, Apax, would try to maximize revenue by cutting costs, firing people, and effectively hollowing out the acquired companies with potentially drastic implications for the Democratic Party and liberal organizations that rely on NGP VAN and EveryAction.

“NGP VAN having a reduced staff will make it harder for us to do our jobs,” said one current NGP VAN employee, who spoke on the condition of anonymity for fear of professional reprisal.

“NGP VAN having a reduced staff will make it harder for us to do our jobs.”

The cost cutting could have unintended consequences for the Democratic Party, said progressive strategist Gabe Tobias.

“There are no nefarious purposes necessarily, like that they don’t want Democrats to win,” he said. “I don’t think they care. But what happens if they just start degrading service? No one can do anything about it. Everything sits inside of VAN, and almost everyone uses the other services they have.”

While NGP VAN was one of the companies merged into Bonterra during the private equity purchase, it remained a standalone brand and has the monopoly on campaign tools and compliance reporting software for the Democratic Party, including its database of coveted Democratic National Committee voter file information. Loyal Democrats in the NGP VAN orbit fear the job cuts — across NGP VAN and EveryAction’s product, data services, client support, and sales departments — could hamper the entire party’s efforts.

While cuts across multiple departments are typical in layoffs, the current employee said, NGP VAN is in a unique position. “We also happen to be a near-monopoly for the Democratic Party software and provide products/services to many labor unions and nonprofits,” they said. “It shouldn’t be owned by a British private equity firm and led by a nonpolitical ‘social good’ tech company.”

NGP VAN EveryAction Workers Union, under the Communications Workers of America, represented some of those laid off. In a tweet last week, the union wrote, “We fear the direction of our union-built platform—the largest database for Democrats, large unions, and many progressive nonprofits—under private equity. So should you.”

In early December, NGP VAN’s general manager, Chelsea Peterson, wrote a blog post offering assurances that, despite recent changes to the company, NGP VAN was “in it for the long haul” and that the company remains committed to serving in the progressive political tech space.

“The fact that Chelsea had to write a blog post saying NGP is ‘safe’ shows it’s not,” said one former NGP VAN employee who left prior to the layoffs and requested anonymity to protect their livelihood. “The question no one is asking in the Democratic community is: Is private equity the best place for this data? Are they vulnerable to these types of cuts with no rhyme or reason? How does this affect the infrastructure?”

The former staffer raised the organizations that worked with NGP VAN: the Democratic National Committee; the Democratic Congressional Campaign Committee, its fundraising arm for the House; and other political action groups and advocates that spend on campaigns all rely on NGP VAN’s technology — “all of these groups have invested millions into this organization,” the staffer said.

For Democrats, that infrastructure is of paramount importance. Where once several smaller shops ran the party’s fundraising and campaign technology, many of the most prominent firms — ActionKit, Mobilize, Salsa Labs, and Blue State — were acquired by NGP VAN and EveryAction. (In 2019, EveryAction acquired ActionKit, a service that The Intercept uses for its email newsletters and fundraising.)

Now Apax, a private equity group with a broad portfolio of companies and both Democratic and Republican donors among its partners, has bought the whole operation and merged it with other acquisitions as Bonterra. (The DNC, DCCC, and the Democratic Senatorial Campaign Committee, which also uses EveryAction and NGP VAN, did not respond to requests for comment.)

Apax is a buyout firm, the former staffer said, “which is not inherently bad — but let’s be honest — they didn’t buy NGP/EveryAction/Salsa etc. out of pure altruism.”

“People often ask me — what’s the famous CEO question — like what keeps you up at night? I want you to know nothing keeps me up at night. I sleep like a baby.”

Another current NGP VAN employee, who also spoke on the condition of anonymity for fear of reprisal, said that Bonterra had internally discussed failing to reach its target growth numbers at the end of the last quarter. When staff asked about potential layoffs during a question-and-answer session, they said, management “gave a deflection non-answer.”

According to a transcript of a December meeting obtained by The Intercept, Layden, the newly appointed CEO, was asked about his priorities in his new role. “People often ask me — what’s the famous CEO question — like what keeps you up at night? I want you to know nothing keeps me up at night. I sleep like a baby. It’s just [as] if I have no conscience.” (Bonterra declined to comment.)

In early December, Bonterra announced that then-CEO Erin Mulligan Nelson would be leaving the company and that Layden had been appointed interim CEO. “Erin was widely liked and admired, and her departure was announced unceremoniously,” the employee said, speculating that the former CEO was “unwilling to play ball with private equity.”

As other left-leaning and progressive organizations go through similar shifts, Democrats are concerned about the health of the party’s infrastructure ahead of 2024 elections.

Democratic and progressive organizations that use EveryAction and NGP VAN should collectively demand investment in its services, said Tobias, the progressive strategist. “Either this company who now owns this thing promises us, signs agreements with us that they won’t cut costs, that they won’t degrade services, or we invest in alternatives,” he said. “It’s probably both, but it’s certainly not neither — which is what’s happening right now.”

The post Inside the Slow Implosion of the Democratic Party’s Vaunted Campaign Tech Firm appeared first on The Intercept.

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The Wall Street Journal ranked US airlines from worst to best. See the list.

My preferred airlines are United and Delta for status, reliability, and comfort.Delta Air Lines.

On The Run Photo/Shutterstock

  • The Wall Street Journal has revealed its annual list of the best and worst airlines in the US.
  • Delta Air Lines took the top spot, while JetBlue Airways lagged behind competitors.
  • Southwest Airlines ranked surprisingly high despite its chaotic holiday meltdown.

After a chaotic year of severe weather, flight cancelations, staffing shortages, and air traffic control issues, the Wall Street Journal has revealed its annual list of best and worth US airlines.

The results are determined by seven key metrics, including flight cancellations, on-time performance, delays, involuntary bumping, lost luggage, and complaints. For the most part, the rankings did not change much from 2021, with Delta Air Lines taking the top spot for the second year in a row.

The Atlanta-based carrier earned first place in three categories — on-time arrivals, cancelations, and bumping. However, this is notably worse than the carrier performed in 2021 when it also earned the crown for the least complaints and extreme delays.

In a January earnings call, company CEO Ed Bastian described 2022 as “the most difficult operational year in our history,” which was exacerbated by strong demand and rapid post-pandemic growth.

According to aviation data company Anuvu, which provided the numbers for WSJ’s rankings, Delta had the best on-time arrival rate of 81.7%. However, this was down from 87.9% the previous year and 83.4% in 2019. In total, the carrier canceled about 31,000 flights in 2022, which is three times as many compared to 2021.

The WSJ noted that Hawaiian Airlines actually beat Delta in terms of fewest cancelations, but the outlet does not include Hawaiian in its rankings due to its unique operating geography.

Alaska Airlines took second in this year’s rankings, falling partly due to the strong winter storm that battered the Pacific Northwest in December.

Taking third place was Southwest Airlines. The Dallas-based carrier ranked surprisingly high despite its chaotic winter meltdown, which resulted in over 16,000 flight cancelations and over $800 million in potential costs, per the New York Times.

The carrier ranked low in several individual categories, including cancelations and bumping, but, up until its meltdown, earned the least complaints from customers. However, the WSJ noted that complaints and baggage handling data from the Christmas chaos were not available for 2022’s results, but will be factored in next year.

At the bottom of the list sat JetBlue Airways. The airline did not improve from last year’s rankings and actually had the worse delay rate, beating out only Allegiant Air in terms of on-time performance and cancelations.

According to Anuvu, JetBlue canceled 3.3% of its 2022 flights. Company president President Joanna Geraghty told the WSJ this can be attributed to the highly congested Northeast airports JetBlue operates in.

By comparison, Allegiant’s cancelation rate was 4.3% last year, though the Las Vegas-based carrier was the best airline in terms of involuntary bumping and bagging handling.

Overall, flight cancelations among major US airlines increased by 69% last year. That is a huge number considering the increase in scheduled flights was just 13%, per the WSJ. However, nearly 60% of the cancelations occurred between January and June, with the second half of 2022 faring better for travelers.

Despite the problems, some carriers did finally turn a year-end profit, like Delta and United Airlines.

Here’s a closer look at the WSJ’s list of the best and worst airlines in the US.

9. JetBlue Airways

JetBlue landing at JFK.JetBlue Airways.

Eliyahu Yosef Parypa/Shutterstock

2021 ranking: 9

8. Frontier Airlines

Frontier AirlinesFrontier Airlines.

Carlos Yudica

2021 ranking: 6 (tied with American Airlines)

7. Spirit Airlines

Spirit Airlines aircraft.Spirit Airlines.

Carlos Yudica/Shutterstock

2021 ranking: 8

6. American Airlines

American Airlines 777-300ER landing.American Airlines.

Nik Oiko/SOPA Images/LightRocket via Getty Images

2021 ranking: 6 (tied with Frontier)

5. Allegiant Air

allegiant airAllegiant Air.

Carlos Yudica/Shutterstock

2021 ranking: 5

4. United Airlines

United Airlines Boeing 787.United Airlines.

United Airlines

2021 ranking: 4

3. Southwest Airlines

Southwest Airlines Boeing 737 at Austin International Airport, TexasSouthwest Airlines.

George Rose/Getty Images

2021 ranking: 3

2. Alaska Airlines

Alaska Airlines oneworld livery.Alaska Airlines.

Alaska Airlines

2021 ranking: 2

1. Delta Air Lines

My preferred airlines are United and Delta for status, reliability, and comfort.Delta Air Lines.

On The Run Photo/Shutterstock

2021 ranking: 1

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Airbus has changed the design of its A350 flagship jet amid its dispute with Qatar Airways over peeling paint

Surface damage seen on Qatar Airways' airbus A350 parked at Qatar airways aircraft maintenance hangar in DohaSurface damage seen on Qatar Airways’ airbus A350 parked at the airline’s aircraft maintenance hangar in Doha.

REUTERS/Imad Creidi

  • Airbus has changed the copper foil used on its A350 aircraft, which protects from lightning strikes.
  • In 2021, Qatar Airways sued Airbus over chipped paint that exposes the copper mesh, citing a safety risk.
  • The two companies have been in a legal battle for months over the issue, which Airbus says is “cosmetic.”

Airbus has redesigned a core component of its A350 aircraft.

The European planemaker confirmed to Insider on Monday that it is changing the metal coating used on its jets, replacing the expanded copper foil (ECF) with a perforated copper foil (PCF). The copper foil sits between the paint and the carbon fuselage to protect the aircraft from lightning strikes. 

According to Airbus, the company started “progressively” using PCF on A350 aircraft “fuselage section by fuselage section,” starting with deliveries in late 2022. But it noted the old copper foil is still being used as well.

The change is significant considering Airbus’ ongoing battle with Qatar Airways over the old copper foil — a dispute worth $2 billion, per Reuters.

In 2021, the airline filed a lawsuit with the manufacturer over surface paint issues on the A350. According to Qatar, the cracked paint exposes the copper mesh and poses a safety threat, resulting in the grounding of over two dozen A350 jets.

Cracked paint on Qatar A350.An undated image shows what appears to be paint peeling, cracking and exposed expanded copper foil (ECF) on the fuselage of a Qatar Airways Airbus A350 aircraft.

Reuters

Airbus has maintained the issue is simply “cosmetic,” and other A350 operators, like Delta Air Lines and Etihad Airways, have noted damage but do not view it as a safety concern. Nor have any of the carriers grounded their widebodies over the problem.

However, Airbus told Insider that the ECF replacement “is not connected to the Qatar litigation,” but the decision was made in 2019 to reduce weight as the new copper foil is lighter. 

“This enhancement is part of the usual continuous aircraft development which is entirely standard in the industry,” a company spokesperson said.

The planemaker also confirmed that the new PCF will “boost the durability of the paint system even though it wasn’t developed for this.”

Nevertheless, Qatar questioned the redesign in court on Thursday, asking for an analysis of how a lightning strike could impact the safety of flight. 

Specifically, the airline requested modeling data of the A350, though, according to Reuters, French authorities said the sharing of that information could pose a security threat because the designs are used by European governments.

While Qatar accused Airbus of skirting data sharing, lawyers on both sides have provisionally arranged to provide the data. A corporate trial will take place in June if a settlement cannot be reached.

Qatar declined to comment on the matter when reached by Insider.

Over the past year, the dispute between Airbus and Qatar has become more serious. In January 2022, the planemaker made a rare move, canceling the airline’s order for 50 Airbus A321 jets, and later canceled all of Qatar’s A350 orders in September. 

Qatar CEO Akbar Al Baker said in December 2021 that the problem has “destroyed” the airline’s relationship with Airbus. 

Though, the manufacturer stood by the A350 at the time, saying, “the attempt by this customer to misrepresent this specific topic as an airworthiness issue represents a threat to the international protocols on safety matters.”

However, Airbus told Insider in September that it is open to a settlement, and company CEO Guillaume Faury told Reuters in June that there was “progress in the sense that we are communicating.”

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I get overwhelmed by how much stuff I read online. So I outsourced my memory to an AI app.

photo collage of mouth and eyes with colorful shapesI tried an AI app to help me remember what I read online. It may be making my actual memory worse in the long run, but it was an effective tool.

Arif Qazi/Insider

On a recent late afternoon, I was having trouble remembering. My browsing history for the day suggested I’d read over a dozen news articles, numerous Slack messages, plenty of Twitter threads, and a bunch of notes for my next assignment. Yet, somehow, I couldn’t recall much of it. I remembered some vague contours of the content I had consumed but lacked the details.  

That afternoon wasn’t particularly special — a few days later, I struggled to recollect the details of a lengthy COVID story I had read during a conversation with a friend. These instances weren’t some crises of memory, nor were they due to a head injury. I just had too much rattling around in my brain. No matter what or how much I read online, my mind can’t help but forget it shortly after. I don’t blame my brain, either. Most people consume an overwhelming volume of text every day — hundreds of thousands of words — so it’s no surprise that our memories struggle to retain more than a few scant details. “Humans have worse memories than we think we do, and memory for text, in general, isn’t great,” Virginia Clinton-Lisell, an associate professor of educational psychology at the University of North Dakota, told me.  

The internet only makes this brain-capacity problem worse. The online-reading experience is full of obstacles that prevent our brains from locking the information we consume into our long-term memories. When you read a book, things like page numbers and the physical ability to hold and turn pages help your brain make a mental map of the information the book presents you with. Websites, however, don’t have those kinds of memory triggers. Because of this, multiple studies found that participants who read offline performed better in comprehension, concentration, and recall than participants who read online.  

The added distraction of the web’s business — auto-play videos, pop-up ads, and the round-the-clock avalanche of notifications — certainly doesn’t help. “Our capacity to process incoming information is naturally limited,” Andrew Dillon, an information-and-psychology professor at the University of Texas, told me. He added that if we try to process too many things at once, “we pay a cost in terms of memory and comprehension or time. There’s no free lunch.” 

Another problem is that people devote far less mental effort to reading something online since we approach all online reading like it’s social media — like it just needs skimming. For information to enter our knowledge structures, Dillon told me, we must distribute attention. “This takes time and effort,” he said.  

Because we know we can look up a piece of information anytime we want — whether it’s a phone number or George Clooney’s birthday — we’re far less likely to memorize it. Often during the day, I end up Googling articles I read just a few hours ago because I can’t recall more than a few key words.  

To address this problem, dozens of read-later and bookmarking apps have cropped up over the years. Apps like Pocket and Instapaper have amassed millions of users by offering ways to organize links and save what they want to read online. But these apps can feel like a chore to keep and do not ultimately help retain the information on those webpages. Because of those drawbacks, I decided to try out a new, little-known service called Heyday. 

Heyday, which bills itself as an AI-memory assistant, promises to fix the two key challenges I’ve faced with reading-list tools: it demands little to no effort from me and aims to help me remember things better. Instead of simply cataloging where I read something, it promised to help me recall what I’ve been reading. In the three weeks I spent with the app, I found it was effective at helping me remember things, but it comes with a catch: Using a memory tool like this has the potential to make your biological memory worse over time.  

A new memory 

Founded in 2021, engineers designed Heyday to act as your memory — it quietly processes everything you read in the background and resurfaces information when you might need it. The app works by automatically scanning everything you look at on your browser: web pages, Google documents, notes, Slack conversations, and tweets. Then, it sorts what you’ve read into categories based on topic or on how much time you spent on something. Once it’s added the information to the catalog, it provides dynamic prompts next to search results or within articles themselves to help resurface the information you’ve already read.

After installing the browser extension, Heyday went to work scanning everything I was reading. Once it gathered enough information, it began to resurface what I had read. When I Googled “Elon Musk” to look into the news about the Twitter CEO banning journalists, the app pulled up a list of related links from my history with their key summaries next to my search results. In this case, Heyday pulled up a Substack newsletter from a journalist, a tweet thread on how Musk lashed out in a Spaces chatroom, and a profile of another social network people were flocking to. This list allowed me to instantly recall what I’ve already read about the topic and added helpful context to my search, making it a more valuable use of my time.

Screenshot of Heyday prompts next to Google search results about Elon MuskHeyday is an AI memory assistant. It reminds you of articles, posts, or other content that you have previously read.

Shubham Agarwal/Heyday

When reading an article, Heyday would also underline key words that I’ve read about in the past, and when I hovered over them, the app told me more about that topic based on what I’ve read. While Heyday’s browser tool behaved like a memory assistant, its website felt like a snapshot of my online memory. It categorized all the content I viewed by type: videos, tweets, research reports, and so on. Since its search tool understands natural language, I could use it to pinpoint a query, such as “articles about Elon Musk’s ban,” without worrying about the correct syntax or key words. Plus, if there were any articles in my history that I particularly liked reading, I could ask Heyday to store it in a separate folder like “favorites” or “recipes,” and the next time I come across similar content, it will automatically recommend I save the article to that folder.  

Screenshot of Heyday's website showing different content foldersHeyday organizes everything you read or watch online into relevant folders.

Shubham Agarwal/Heyday

One potential drawback is that because of how it runs, Heyday collects a treasure trove of data on you and your browsing history. But Samiur Rahman, a cofounder and the CEO of the startup, told me the data is encrypted and that their business model doesn’t depend on selling user data or ads. Instead, their revenue comes from the $19 monthly subscription to use the tool. While the subscription model may help keep my data safe, the steep price point limits the tool to people like researchers or journalists who would use it a lot and could justify the cost.  

Another limitation with the tool was that the search widget often took a few seconds to show up next to my search results. So, there were times when I ended up clicking one of the results instead of waiting to see what the pop-up widget resurfaced. And though it never failed to register what I read, Heyday’s algorithm occasionally did not understand a link’s content and context, resulting in relevant articles not showing up when I expected them to while conducting another type of research. But in my three weeks with Heyday, I consistently felt that it made a difference in how much I could recall — and the experts I spoke with had an explanation.  

New information enters a first “forgetting curve” in our memories, and much of it slips down the drain unless we spend time reviewing the material. Dillon told me that repetition or rereading is crucial to remembering new information better. He told me that Heyday’s continuous exposure to the same information can prove vital to aid memory. Similarly, Clinton-Lisell told me that making connections between subjects or themes naturally improves comprehension and memory, adding that if a tool like Heyday helps you make connections as you read, it should enable you to better remember.  

In my experience, because the app repeatedly exposed me to the content I had read and helped me make connections between things I was reading, it helped the information stick in my head.  

Refocusing the mind 

Rahman told me that Heyday’s ultimate goal as a memory assistant is to “increase the creative output of individuals.” By freeing up the brain from the task of encoding and resurfacing memories, he believes the brain will have more freedom to “focus on things that the human brain is uniquely great at — thinking, creativity, and analysis.” 

Heyday isn’t alone in this venture. Broader efforts to supplement our memories are underway across the industry. Dennis Xu, a cofounder of the OpenAI-backed Mem AI, a self-organizing workspace, wants to aid the brain in recalling disparate pieces of information so it works less to recall raw data you can easily look up. The goal of Mem AI is to allow people to focus on creative outputs and remember personal memories like a loved one’s face. “I think that’s a more worthy use of the brain’s memory than, for example, remembering what date the Battle of the Alamo took place,” Xu said.  

Rewind, a startup that raised $10 million in a round that Andreessen Horowitz led last year, said its “long-term vision is giving humans perfect memory.” Rewind captures everything you look at on your computer and constructs a timeline of your activities, letting you simply search for facts and conversations instead of having to remember them or spend time digging through various apps. Personal AI, on the other hand, wants to clone your mind, creating a virtual “second brain” that houses all your memories and data.  

However, if we routinely begin to outsource the job of memorization to internet tools, would our biological memory evolve to become obsolete? There is already evidence that the internet has caused our memories to get worse since we don’t feel the need to memorize what we can Google anymore. Personal AI’s spokesperson, Jonathan Bikoff, doesn’t necessarily see that as a bad thing. He expects technology-enabled minds to be more powerful and reliable than our biological minds. “With assistance from AI, humans may be able to enjoy more of life, embrace forgetfulness, and learn to weave AI into our every day,” Bikoff said.  

Though the jury is still out on our memory’s biological evolution, Dillon said the extent that the web and digital access is making memorization obsolete, at least for some people, is interesting. “Why learn a poem by heart if you can pull it up on demand? What’s the point of learning your math tables if you can just ask Alexa for the answer? Like our bodies, do our minds also need to be exercised to maintain full functioning?” Dillon said, concluding: “I think there’s some truth in this.”  

I can’t help but agree. During my Heyday use, the number of stories from its widget’s list I had already forgotten about constantly surprised me. It was a reminder of just how much information I read slips from my brain. But while Heyday was effective at bridging the gap of my limited memory, making research easier, I worry that a reliance on the tool would make my memory even worse. But given the mounting volume of text we read online, perhaps we have already passed the point of no return. The modern world demands that we consume a massive amount of information, and our biological memories simply don’t have the ability to remember it all. So instead of fighting a losing battle, an extended hard-drive-esque space like Heyday can be a vital supplement. For me, at least, Heyday is here to stay.


Shubham Agarwal is a freelance technology journalist from Ahmedabad, India whose work has appeared in Wired, The Verge, Fast Company, and more.

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It’s the perfect time to start your sneaker collection

Array of sneakers on collector shelves 2x1The problems plaguing the sneaker industry are working in favor of the sneaker collector who has cash to burn.

Fila; Nike; Puma; Saucony; Yeezy; Rachel Mendelson/Insider

  • Inflation and high inventory have created the perfect environment for new sneaker collectors.
  • Resale-price premiums have dipped on most models and new colorways.
  • Nike is still the top brand, but collectors are eyeing others, like New Balance and Saucony.

Macroeconomic conditions like high inflation and rising inventory levels have created the perfect environment for a new era of sneaker collectors.

The problems plaguing the sneaker industry — lingering supply-chain bottlenecks, higher inventory and inflation, and shifting consumer demand — are working in favor of the sneaker collector who has cash to burn. 

“Resale appetite and volume for Nike and Yeezy are believed to have shrunk, potentially affecting prices and margins in that channel as it absorbs industry shocks including Adidas’s Yeezy partnership termination with Kanye West and Nike’s lawsuit against a leading Resale channel,” the investment bank Cowen wrote in a December analyst note, referring to the resale site StockX. 

Chris Burns, a sneaker analyst and the founder of Arch-USA, told Insider reselling was slowing considerably and that it opened the door for customers to buy shoes at retail they would have paid higher resale prices for earlier in the pandemic — namely, the Air Jordan 1.

Felix Hartmann wearing Air Jordan 1 Dark Mocha sneakers, and black Supreme pants on January 14, 2022 in Hamburg, Germany.The Air Jordan 1 “Dark Mocha” was released in fall 2020.

Jeremy Moeller/Getty Images

Buying any type of Jordan 1 “was just bananas during the pandemic and post-quarantine,” Burns said. But he predicts resale will return to pre-pandemic stability, where shoes jumped in price only when they were completely out of stock. In 2023, the average sneaker consumer will also likely be less enthusiastic with so many drops set to come.

Of course, some popular shoes will still sell out. Even as Nike works to deplete a 44% rise in excess inventory it reported in September, its shoes like the Panda Dunk and Air Force 1 still perform well. 

Sneakers are easier to get

Most shoes have become relatively easy to get, said a sneaker collector who goes by Sockjig and is the host of the “Sockjig Sneaker Podcast.” And the system has gotten fairer, all things considered.

Sure, the few drops that went wrong did get oversize attention last year. The fashion boutique Union Los Angeles released a Jordan 2 collaboration shoe with Nike and charged customers for every attempt to purchase a shoe. Months later, millions of sneakerheads attempted to enter the Nike Snkrs app draw for the Jordan 1 “Lost and Found,” but the app crashed, leaving many empty-handed. 

“But if you extract that, it’s like everything else this year was not that hard to get. Some of it even went on sale,” Sockjig said. 

While companies like Nike released shoes in higher stock in 2022, they still release what Sockjig calls “unicorn” shoes in lower quantities to the public to build hype for the brand. These sneakers are most often done in collaboration with musical artists like Travis Scott or a popular boutique like Union LA or Concepts.

Sneakerheads new to the Snkrs app might have a better chance of getting one of those “unicorn” shoes, Sockjig said.

“Nothing’s officially ever been said by Nike, but anecdotally, they reward new users because they want people to get that fix,” he said. “So go for it, and you might get that unicorn sneaker on your first try.”

Nike did not return a request for comment on the app.

The shoe brand may be a juggernaut in sneakers, but many other brands, like Saucony, New Balance, and Asics, are also producing shoes worth buying. 

“You can buy a $60 pair of Sauconys, and you’ll be blown away by the quality, where you buy a $130 pair of Dunks, and you might be disappointed in the quality,” Nick Engvall, a cohost of the “Sneaker History Podcast” and the senior creative director at Stadium Goods, said.

Speaking of Dunks, many casual customers became sneakerheads by purchasing Nike Dunks earlier in the pandemic. While the “Panda” Dunk, in black and white, has plenty of haters who note that it’s mass-produced and restocked constantly, it’s the type of shoe that may introduce newcomers to sneaker culture.

“A lot of people probably have a love-hate relationship with the Panda Dunk, but I think it’s great because it’s a shoe that people that are not paying attention to sneakers can grasp on to and say, ‘Oh, this is something that I like, and now maybe I want to be a part of this community,'” Engvall said.

Henrique Lutete wearing Saucony trainers on day 1 of Paris Haute Couture Fashion Week Autumn/Winter 2016Saucony is a popular brand among sneaker collectors following casual-fashion trends.

Kirstin Sinclair/Getty Images

Embracing the art of sneaker discovery

Most sneakerheads advise newer collectors to start off by buying what they like and support local boutiques stocking their favorite brands. 

Online, there’s a ton of resources for new collectors, so many that it might be overwhelming. Many collectors follow Twitter and Instagram accounts dedicated to sharing sneaker-release news and surprise drops of highly anticipated shoes.

Engvall encourages new collectors to branch out beyond social-media accounts that cover Nike to ones covering New Balance and Saucony, which don’t have as much competition for sneakers.

Of course, don’t expect to hit on every release. It’s simply part of the game. While sneakerheads don’t need to worry about bots as much as they did in the past, the demand for shoes stacks the deck against individual buyers.

“It’s almost like you have to hop on, like, the spinning kind of amusement-park ride, and you have to try for all releases and hope you did say 50 to 60% of them,” Sockjig said. “For someone new getting into sneakers, that might be a little overwhelming.”

Burns said it’s important to take a day and go into retail stores to find gems not available online. The Snkrs and Adidas Confirmed apps have acclimated users to purchasing online and all but killed the art of discovery in sneakers.

“Nike’s biggest sin is the fact that they’ve taken the focus off of stores. And they’ve placed the emphasis on the Snkrs app,” Burns said. “Because the Snkrs app works the way it does, and things sell out there, people assume it is sold out in the stores. They don’t even go check the stores anymore.”

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