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Heathrow says it’s fully operational after blackout shutdown

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London’s Heathrow airport said it’s open and fully operational following an unprecedented daylong blackout that brought travel to a standstill for hundreds of thousands of passengers at Europe’s busiest airport.

British Airways, the biggest single operator at the airport, said it expects to run about 85% of its schedule on Saturday. Power supplies have been restored to all customers connected to National Grid UK’s North Hyde substation, including Heathrow, allowing operations to resume at the airport, the utility company said in a post on X.

“We have hundreds of additional colleagues on hand in our terminals and we have added flights to today’s schedule to facilitate an extra 10,000 passengers traveling through the airport,” a Heathrow spokesperson said in an emailed statement on Saturday. 

Heathrow advised passengers traveling on Saturday to check with their airline for the latest information regarding their flights.

The reopening followed a day of mass chaos for travelers as hundreds of flights were diverted or canceled. The UK Metropolitan Police said earlier that its counter-terrorism command is leading a probe into the fire at a nearby power substation that led to the outage, though there’s no indication at this point of foul play. 

“We are deeply sorry for the disruption caused and are continuing to work closely with the Government, Heathrow and the police to understand the cause of the incident,” National Grid UK said. “We are now implementing measures to help further improve the resilience levels of our network.”

The closure forced more than 1,300 flights to be canceled or rerouted on Friday alone. Heathrow, home to British Airways, is a major hub for transatlantic travel, as well as connections to the Middle East and Asia. While nearby airports such as London Gatwick have accepted some diverted flights, others are being sent as far as Frankfurt.

“This incident will have a substantial impact on our airline and customers for many days to come, with disruption to journeys expected over the coming days,” said British Airways chief Sean Doyle. The airline said in a statement late Friday that its full Saturday schedule includes nearly 600 departures and arrivals and it hoped to operate as many of those flights as possible.

The financial fallout from the day-long disruption may reach reach between $80 million and $100 million, factoring in costs related to accommodation, food and transportation, as well as broader operational impacts that include rerouting, schedule disruptions and aircraft repositioning, said Ronan Murphy, director at Alton Aviation Consultancy

An outage of this scale is unprecedented for the airfield. About 677 flights will be affected at British Airways alone, according to ch-Aviation, which compiles industry data. That’s followed by 62 flights for Virgin Atlantic Airways Ltd. and 42 flights for Deutsche Lufthansa AG.  

IAG SA, the parent of British Airways, fell as much as 4.3% in London, bringing the decline this year to 5.5%. The shares almost doubled in 2024 as the company improved services and paid down debt.

The outage raises questions about the robustness of Heathrow’s infrastructure, and why an airport of such scale and importance lacked the redundancy systems needed to keep operations going. At the same time, an operation the size of Heathrow has considerable energy requirements, complicating the availability of a reserve source to meet its needs.

Energy Secretary Ed Miliband told LBC radio on Friday that the “catastrophic” fire had taken out a backup generator for Heathrow, as well as the electricity substation that serves it. Prime Minister Keir Starmer said he’d been “receiving regular updates” and was in close contact with partners on the ground. 

The police said that “while there is currently no indication of foul play we retain an open mind at this time.” Assessments were under way to determine whether circumstances were suspicious, according to an official with knowledge of the matter. Police involvement will be peripheral unless there’s reason to mount an investigation, the person said.

Heathrow is currently making a pitch to add a third runway, a long-running ambition to expand traffic and remain competitive with global hubs like Dubai or Istanbul. Its recently realigned ownership now includes French private equity firm Ardian SAS, Qatar Investment Authority and Saudi Arabia’s Public Investment Fund as its top investors.

The airport closed at around 1:30 a.m. on Friday. The blaze erupted at an electrical substation in Hayes, north of Heathrow, just before midnight, causing a local power outage that cut service to thousands of nearby residents and local businesses, and caused some evacuations. 

By mid afternoon Friday, National Grid said it had restored the ability to resupply the parts of Heathrow connected to the damaged substation. 

Sue Thomas, who flew in to Heathrow Thursday evening from Canada to visit family in Penzance in Cornwall, said power went out at her Premier Inn hotel room near the airport at 10:30 p.m.

“Everything went black,” she said in an interview at Paddington Station on Friday where she waited for a train. “The power went out, the water wasn’t running, no one was allowed in or out.”

Staff at the hotel couldn’t even allocate rooms because everything is automated, the lifts weren’t working and the hotel corridors were in total darkness, she said.

Previous Closures

Heathrow, which is also home to Virgin Atlantic, handles some 1,400 flights and 200,000 passengers every day, and about 40 aircraft take off every hour at peak times on average.

Ryanair Holdings Plc, the Irish budget carrier, said it would add four flights on Friday and four on Saturday between its London Stansted hub and Dublin to accommodate stranded travelers. EasyJet Plc said it’s also putting larger aircraft on key routes to provide more seats. 

The last major crisis for Heathrow occurred in August 2023 when the UK’s airspace shut down because of a technical issue with the air traffic control system. The outage was fixed after a few hours but led to many flight delays and cancellations at Heathrow and other airports, creating chaos for passengers.

Hundreds of flights were canceled at Heathrow on July 10, 2006, after authorities in London uncovered a plot to detonate liquid explosives on transatlantic flights. Still, the airport remained open and flying resumed that evening.

On Friday, about 120 planes already en-route when the airport closed were diverting or sent back to their origin, including flights operated by Qantas Airways Ltd., Delta Air Lines Inc. and American Airlines, according to tracking service Flightradar24.

Carriers including Emirates, the world’s largest international airline with more than a dozen daily flights into Heathrow, said they’ve canceled some connections. “We’re monitoring the situation closely and will update our customers as the situation develops,” Emirates said. 

Virgin said that all incoming and outbound traffic has been canceled until 9:30 p.m., and that the rest of the schedule is under review. Some airlines began rerouting incoming traffic to other airports, including Abu Dhabi carrier Etihad Airways, which diverted a Heathrow-bound plane to Frankfurt. 

Gatwick Airport said its service is operating normally, and that it’s taken seven flights so far that were diverted from Heathrow.

Even once service resumes, there’ll be a significant ripple-on effect that may be felt for days, with aircraft and crew out of position. Airports sometimes experience disruptions because of weather or personnel strikes, though a full-day complete shutdown is extremely rare. 

In early 2023, Frankfurt airport — among the busiest in Europe — suffered serious disruptions following damage to broadband cables at a rail location in the northern part of the German city. UK airports have experienced outages in past years because of air-traffic control systems, though these were often just a matter of hours. 

This time, passengers are facing significant disruptions. Nick Stone, an investor from Los Angeles, was boarding a Eurostar train to Paris at St. Pancras Station in London on Friday morning. His canceled flight will cause him to miss his daughter’s 12th birthday, he said. 

Eurostar said it’s adding extra capacity, including one additional service from London to Paris and one from Paris to London to provide alternative travel options for stranded passengers.

Sabrina and Raik Becker, a German couple on holiday in London, were scheduled to head back to Hanover on a 1.5 hour flight from Heathrow on Friday. Instead, they’re now taking the Eurostar to Brussels and then onward to Cologne before getting to their destination, a journey that will take more than 12 hours and cost an extra €1,000 ($1,083).

They said they don’t know if they’ll get their money back.

This story was originally featured on Fortune.com



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People making six-figure salaries used to be considered rich—now households earning nearly $200,000 a year aren’t even considered upper-class in some U.S. states

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  • A six-figure salary used to be considered wealthy—but now, most of these earners are struggling to stay afloat amid raging living costs and salary deflation. That’s because households making $100,000 annually are still considered “middle-class” in every U.S. state, according to a recent analysis of 2023 U.S. Census Bureau data.

How much money you need to make to be “rolling in it” has changed: Earning nearly $200,000 a year isn’t even considered upper-class in some U.S. states. Being considered rich is becoming more gate-kept among the 1% raking in millions every day. 

According to a recent SmartAsset analysis of 2023 U.S. Census Bureau data, a household making $199,000 a year in Massachusetts and New Jersey would still be considered middle-class.

Even in Mississippi, which has the lowest median middle-class income in the U.S., households would need to earn over $108,000 to be considered well-off.

The salary range of middle-class homes, representing about 52% of American workers, is of course huge. The lowest salary considered to be in the socioeconomic class is $36,132 in one state, while the highest hits a staggering $199,716 in another. But in every single state in America, a $100,000 salary is no longer enough to be considered upper-class—and families with six-figure incomes are even struggling to get by. 

Why what’s considered middle-class has changed

A six-figure salary used to rouse images of a high-class lifestyle—luxury cars, sizable houses, and a stacked savings account on the side. But now it’s barely enough for most to survive.

More than half of Americans making over $100,000 annually lived paycheck to paycheck in 2022, 7% more than the previous year, according to a 2023 report from PYMNTS and LendingClub. 

There are a few reasons why more six-figure earners are struggling to keep their heads above water: The SmartAsset report points to raging inflation and shifting salaries across the U.S. Some workers have been hit with wage deflation. Employees who stayed in their current roles received a 4.6% wage bump in January and February, while those who switched jobs received only a marginally higher increase of 4.8%, according to recent data from the Atlanta Fed. This has ruined the prospect of switching companies to make more money in the same role. 

Inflation has also increased living expenses across the board, from egg prices shooting up over 60% in the last year to a housing market paralyzed by soaring costs. It’s assumed that a middle-class lifestyle could at least keep up with the basics, but 65% of those households say their incomes were falling behind the cost of living, according to a 2024 survey from financial services company Primerica.

The American Dream of a white picket fence and stocked fridge can no longer be achieved by solely raking in a six-figure salary. While U.S. households could reach the upper-class in states with a lower wage threshold, high-paying job opportunities in those areas can be scant. And across the board, the average middle-class household in every state still doesn’t make $100,000.

Is your household struggling to get by on a six-figure income? Fortune wants to hear from you. Reach out: emma.burleigh@fortune.com

Here’s how much you’ll need to outearn to escape the middle-class in every U.S. state

U.S. states are ordered from the highest to the lowest upper-bound household incomes needed to maintain a middle-class standing.

  • Massachusetts: $199,716
  • New Jersey: $199,562
  • Maryland: $197,356
  • New Hampshire: $193,676
  • California: $191,042
  • Hawaii: $190,644
  • Washington: $189,210
  • Utah: $186,842
  • Colorado: $185,822
  • Connecticut: $183,330
  • Virginia: $179,862
  • Alaska: $173,262
  • Minnesota: $170,172
  • Rhode Island: $169,944
  • New York: $164,190
  • Delaware: $162,722
  • Vermont: $162,422
  • Illinois: $160,612
  • Oregon: $160,320
  • Arizona: $154,630
  • North Dakota: $153,050
  • Nevada: $152,728
  • Texas: $151,560
  • Idaho: $149,884
  • Georgia: $149,264
  • Wisconsin: $149,262
  • Nebraska: $149,180
  • Pennsylvania: $147,648
  • Maine: $147,466
  • Florida: $146,622
  • Wyoming: $144,830
  • South Dakota: $143,620
  • Iowa: $142,866
  • Montana: $141,608
  • North Carolina: $141,608
  • Kansas: $140,666
  • Indiana: $138,954
  • Michigan: $138,366
  • Missouri $137,090
  • South Carolina: $135,608
  • Ohio: $135,538
  • Tennessee: $135,262
  • New Mexico: $124,536
  • Alabama: $124,424
  • Oklahoma: $124,276
  • Kentucky: $122,236
  • Arkansas: $117,400
  • Louisiana: $116,458
  • West Virginia: $111,896
  • Mississippi: $108,406

This story was originally featured on Fortune.com



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China swoops in to replace Asian USAID projects axed by Trump

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The U.S. canceled two aid projects in Cambodia in late February—one to encourage child literacy and another to improve nutrition and development for kids under five. A week later, China’s aid agency announced funding for programs to achieve almost identical goals.

“Children are the future of the country and the nation,” China’s ambassador to Cambodia Wang Wenbin said at the event, standing next to the country’s health minister and a UNICEF official. “We should care for the healthy growth of children together.” 

While China’s announcement didn’t include a dollar figure, the Chinese money essentially funds the same types of initiatives and development goals as efforts terminated as part of the Trump administration’s dismantling of USAID, according to two people with knowledge of the U.S. projects, who weren’t authorized to speak publicly. 

Both focused on “inclusive education” and the “most vulnerable children,” according to news releases and procurement documents. They both provided school supplies, offering hand-washing materials and improving outcomes for “vulnerable” families and households, newborns and children with disabilities, according to the people. 

The price tag for the U.S. programs—$40 million—was small compared with the $27.7 billion in savings the Trump administration said this week it saved by axing thousands of aid contracts. But for Cambodia, whose national GDP is roughly equivalent to that Vermont, it was a big sum, and replacing lost foreign funds has been a priority.

The State Department, which oversees USAID and may now absorb the agency entirely, said in a statement that the U.S. was funding aid programs that make Americans wealthier and more secure. At the same time, it said the U.S. had achieved “significant progress” by investing in Cambodia’s development over the past 30 years, “partnering closely” with the government.

“Despite changes in the U.S. approach to foreign assistance, we hope to see our relationship with Cambodia productively mature as we make America safer, stronger, and more prosperous,” the department added in the statement. 

The contracts were terminated on Feb. 26 after President Donald Trump and adviser Elon Musk launched a sweeping overhaul of U.S. foreign assistance, which included dismantling the U.S. Agency for International Development.

Although it’s only one example, it appears to confirm fears voiced by Democratic and some Republican lawmakers, aid advocates and former U.S. officials: By slashing foreign aid, Trump is giving China an easy opportunity to fill a vacuum and gain a soft-power advantage in countries where the global adversaries compete for influence.

That’s especially urgent in Cambodia, where the U.S. has spent roughly $1 billion since the 1990s. Washington has long waged an uphill battle with China in Southeast Asia, and Cambodia in particular. The Biden administration raised concerns about Chinese military influence at the country’s Ream Naval Base over the last four years. 

But more recently, the U.S. has moved to strengthen defense ties with the government in Phnom Penh, which granted an American warship access to Ream for the first time late last year.

‘Diplomatic gift’

“It’s a diplomatic gift” to China, said Charles Kenny, a senior fellow at the Center for Global Development. “In every country where there’s a serious USAID cut, if they put a small amount of money into a health and education project and say, ‘Look, we’re ramping up,’ that does seem to be a bit of a publicity gift for them. And I’m sure they’re smart enough to take it.”

Since the Trump administration moved to shut down USAID, terminate most of its foreign aid contracts, and furlough or place on leave most of its employees, U.S. lawmakers, development experts and national security professionals have highlighted the geopolitical risks of curtailing U.S. foreign aid in the developing world. 

Many of those lawmakers and experts have warned that China could move in, gaining further influence over developing nations after wooing officials in Africa, Asia and South America for years with tens of billions in loans focused mostly on infrastructure through Beijing’s Belt and Road Initiative. 

And it certainly has. China already announced funding for a Cambodian de-mining initiative that was dropped, and later restored, by the U.S. In mid-March, Beijing also announced an early childhood development project in Rwanda, where USAID recently curtailed contracts. And Chinese officials have reportedly offered to make up for funding gaps in Nepal, nestled between India and China. 

Will Parks, the Cambodia representative for the United Nations Children’s Fund, said in a statement that the organization and Cambodia signed a partnership with China in 2024, based on a proposal from 2022. It was launched earlier this month and “complements” funding from other nations, Parks said.   

“Cambodia has made tremendous progress for children over the past decade,” he said. “But further reductions of aid budgets could jeopardize these hard-won achievements.”

Cambodia’s government was explicit about drawing a link.

“The Cambodian government works with many partners, and we never rely on any one partner exclusively,” government spokesman Pen Bona said via text message in response to questions. “So if one partner withdraws support, we seek to find another partner to replace it.”

China “will continue to provide assistance to economic and social development” in Cambodia “under the framework of South-South cooperation,” the Chinese Foreign Ministry said in a statement.

“China’s aid policy remains consistent and clear,” the Foreign Ministry continued. “China’s principles of non-interference, not attaching any political strings, not giving empty promises remain unchanged.”

In a closed-door hearing on Capitol Hill this month, Trump appointee Pete Marocco, who led the assault on USAID, was asked about the Cambodia projects and the timing of China’s swift announcement, according to one person familiar with the session. Marocco brushed off concerns about China increasing its influence, this person said. 

Marocco did not respond to a request for comment. 

While Trump’s team have said the canceled projects brought no benefits to Americans, Diana Putman, who retired as USAID’s acting assistant administrator for Africa, said the agency’s billions in foreign assistance helped give U.S. ambassadors a crucial advantage.

“Their leverage and ability to make a difference in terms of foreign policy in that country is backed up by the money that they bring, and in the Global South that money is primarily the money that USAID has,” Putman said.

This story was originally featured on Fortune.com



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Tesla analyst says CEO Elon Musk is ‘back in charge’ after surprise all-hands meeting, and investors are rewarding the company’s stock

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  • Tesla CEO Elon Musk held an all-hands meeting last week, which helped reassure both employees and investors, according to Wedbush analyst Dan Ives. Despite being down 30% since the start of the year, Tesla stock rebounded Monday as Musk demonstrated he is “back in charge,” Ives said.

Tesla CEO Elon Musk is jumping back into action at Tesla and investors are taking notice. 

Tesla’s stock is down more than 30% year to date, but its fortune reversed this week as Musk refocused his attention on the lagging EV maker. The company’s stock shot up 12% on Monday and closed at $278.39, marking its best day since the November presidential election. As of Tuesday afternoon, Tesla stock was trading up 2.8% at $286.

The stock surge comes after Musk held a rare all-hands meeting with Tesla employees last week, in which he told employees not to sell their shares and promised that everything would work out.

“What I’m here to tell you is that the future is incredibly bright and exciting,” Musk said, “and we’re going to do things that no one I think has even dreamed of.”

With Musk squarely back at the helm, Wedbush analyst and Tesla bull Dan Ives said investors are changing their tone on Tesla.

“Musk stepped up last week with the all-hands meeting, and that sent a much needed positive signal to employees and investors,” Ives told Fortune. “The stock was way oversold and is bouncing as Musk is back in charge and trying to balance DOGE and Tesla.”

Following the all-hands meeting, which was live streamed, Wedbush analysts led by Ives praised the move, and said they expect Musk to take a “small step back from DOGE” over the coming months to focus on Tesla.

As a leader of the Department of Government Efficiency (DOGE), Musk has orchestrated thousands of layoffs and millions of dollars in cuts to try to streamline the federal budget. The White House claimed in February, however, Musk wasn’t in charge of the cost-cutting agency, nor was an employee of it. Still, Musk acknowledged in an interview earlier this month he was balancing his business and government obligations “with great difficulty.” 

Last week, Ives called on Musk to rededicate himself to Tesla, and longtime Tesla investor Ross Gerber called for Musk to step up or allow the company to find a “suitable CEO” to run the company.

Apart from its lagging stock, Tesla has faced increased pressure from China’s BYD, which overtook Tesla Monday with annual sales of $107 billion, compared to Tesla’s $97.7 billion in annual revenue.  

Moreover, Musk’s recent political involvement has led to an uptick in peaceful protests as well as vandalism targeting Tesla vehicles and showrooms. President Donald Trump has called people vandalizing Tesla property “terrorists,” and on Monday the FBI created a task force to investigate recent Tesla vandalism.

Ives previously cautioned against the brand damage which has been caused by Musk’s political moves, but he said support for the CEO seems to be building despite the disapproval.

“There is still a brand crisis tornado in motion, but we are seeing many flood Tesla dealerships rallying behind Musk with these protests building,” Ives told Fortune.

This story was originally featured on Fortune.com



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