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Japan’s first domestic passenger plane since 1960s to challenge Boeing and Airbus

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Mitsubishi Aircraft Corporation, an aviation unit of Japanese industrial giant, is planning to start deliveries of Japan’s first domestically-produced passenger plane since the 1960s as soon as next year.

The 88-passenger jet has a flight range of about 2,000 miles, while a smaller variant can fly up to 76 people for about the same distance. The MRJ (Mitsubishi Regional Jet) made its maiden flight in November 2015 with the first deliveries slated for mid-2020.

Mitsubishi Aircraft Corporation initially planned the first deliveries of the jet for 2008. However, the date was pushed back five times due to production difficulties. Orders for the aircraft that once totaled 474 units from US and Japanese carriers have been reportedly reduced to 407 jets so far.

The Japanese conglomerate, a longtime supplier of aircraft components to Boeing, invested over 600 billion yen ($5.36 billion) into MRJ as of March 2018 with another 200 billion yen ($1.8bn) expected to be pumped into the project by the end of 2020. In October, Mitsubishi announced plans to invest an extra 170 billion yen ($1.5bn) in capital into its aircraft unit, canceling 50 billion yen ($446mn) of the debt owed by the division.

The long-anticipated MRJ, which is designed for local air transportation, may become a peer competitor for such mainstays as Canada’s Bombardier, whose C Series regional planes are marketed as the Airbus A220, after the 2017 acquisition of the unit by the European aerospace giant. The Japanese jet is also expected to provide keen competition to Brazil’s Embraer that announced plans to create a joint venture for Embraer’s airliners in 2018.

The newcomers in the sector of regional air service, such as the Russian Sukhoi Superjet-100 and the Chinese Comac ARJ21, which are currently undergoing test flights, may also challenge Airbus and Boeing.

Mitsubishi is currently involved in legal proceedings with Montreal–based Bombardier. In October, the Canadian aircraft manufacturer filed a lawsuit, accusing the Japanese corporation of stealing secret information and causing Bombardier “to suffer irreparable financial loss.”

Mitsubishi counter-sued, saying that the Canadian aircraft producer had violated antitrust regulations through “a multifaceted scheme to expand its power within the regional jet market by impeding the entrance of a new competing aircraft.”

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US airlines wrongfully reject over 25% of their passengers’ compensation claims

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Consumer rights advocacy group released the results of a new study showing that United States airlines wrongfully reject more than 25% of compensation claims, indicating that more than one in five travelers are being denied up to $700 they are owed by Delta Air Lines, United Airlines, and American Airlines following flight disruptions.

Each year, more and more travelers flying out of the U.S. are eligible to claim compensation under European law EC 261 which covers travelers on European flights. AirHelp found more than 25% of valid claims filed against U.S. airlines for disrupted flights in 2016, 2017 and 2018 were turned away on wrongful grounds by airlines trying to avoid their obligation to travelers.

The travel experience is continuously getting worse due to overtourism. In the U.S., 407,000 travelers are eligible to claim compensation under EC 261 following flight delays and cancellations experienced last year, up from 370,000 the previous year. During the first three months of 2019, more than 75,000 passengers experienced disruptions due to the fault of the airlines that have made them eligible for compensation.

This trend is a small part of the larger issue of airlines mistreating passengers. A survey of travelers found 75% of U.S. travelers feel uninformed about their air passenger rights, and less than 25% of travelers who were on a disrupted flight actually file a claim, despite airlines being required by law to inform passengers of their rights.

How the U.S. Airlines Stack Up

Of the U.S. airlines, Delta Air Lines wrongfully rejects the most claims at a rate of one in three. United Airlines wrongfully rejects nearly one in four claims, and American Airlines rejects one in every five. According to an annual ranking of global airlines and airports, U.S. airlines’ unsurprisingly perform poorly, with each major carrier earning less than seven out of 10 for quality of service.

The most popular U.S. airlines ranked on wrongfully rejected claims rate

United States ranking Global ranking for wrongfully rejected claims rate

Airline Wrongfully rejected claim rate

1 32 Delta Air Lines 32%
2 42 United Airlines 23%
3 44 American Airlines 22%

Data from January 1, 2016 to December 31, 2018

“The bleak picture in the U.S. is just the tip of the iceberg. The volume of legitimate passenger claims being wrongfully rejected by airlines is appalling. Flight delays and cancellations are increasingly heaping chaos on passengers, and travelers are forced to fight airlines for compensation they’re rightfully owed,” says Henrik Zillmer, CEO of AirHelp. “It’s all very well for airlines to say they will compensate passengers who make their claim directly. The reality is that thousands of passengers are continuing to face an impossible struggle to claim the money they’re entitled to. If they are embroiled in a legal battle with an airline, passengers may face costs to hire a lawyer to push through their claim, which can make fighting for compensation virtually impossible.”

U.S. Passenger Rights

U.S. passengers are protected under EC 261 for flights to the EU on an EU airline, and any flight departing from the EU. Cancelled flights, delays of more than three hours, and incidents of denied boarding are covered under EC 261, as long as the disruption was not caused by extraordinary circumstances such as weather, sabotage or political unrest. Eligible passengers may be entitled to financial compensation of up to $700 per person, and can file claims up to three years after the incident occurs.

Travelers have fewer protections on domestic U.S. flights, but can claim up to $1,350 in compensation for denied boarding due to overbooking, depending on the value of the ticket fare and ultimate delay in arrival to their final destination

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Gavel slams: Airbnb not eligible for privileged tax treatment

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A report released on behalf of the American Hotel and Lodging Association (AHLA) calls on state and local government leaders to reject Airbnb’s future pursuit of voluntary collection agreements (VCAs) and look to the Wayfair decision as a pathway to cancel current VCA agreements and bring Airbnb up to code with current industry tax standards and regulations.

AHLA released a new report on National Tax Day, conducted by former Director of the Montana Revenue Department Dan Bucks, which clearly demonstrates why the Supreme Court’s Wayfair vs. South Dakota decision last year eliminates the need for state and localities to enter into “voluntary collection agreements” (VCAs) with Airbnb and provides the legal framework and incentive to tax Airbnb like every other U.S. online business now.

“Airbnb no longer qualifies—if it ever did—for privileged treatment by tax agencies as a ‘voluntary collector,’” states Bucks in the report. “This treatment gives Airbnb an unfair advantage in the marketplace by creating a tax and regulatory haven for Airbnb lodging operators. Post-Wayfair, Airbnb’s “voluntary agreements” are now a relic of a past legal premise that no longer exists.”

Bucks urges government leaders to begin the process of terminating existing “voluntary” tax agreements with Airbnb in coordination with state adoption of “general marketplace provider” legislation. Bucks went on to say that disparities between the tax treatment of Airbnb and other online businesses pose a legal risk to states and localities.

“Airbnb has been making back-room deals and strong-arming state and local jurisdictions into ‘voluntary’ tax deals with no transparency, oversight or auditing capability for years,” stated Chip Rogers, President and CEO at AHLA. “Airbnb, and other short term rental platforms need to abide by the same rules as all other law-abiding, tax-paying businesses in the industry.”

AHLA urges state and local government leaders to terminate Airbnb’s voluntary tax deals and instead institute a tax policy that will collect taxes from Airbnb and its operators to ensure an even playing field and transparency for taxpayers. In San Francisco, home of Airbnb’s corporate headquarters, the company agreed to pay back taxes and collect city taxes from its hosts.  AHLA urges other states and localities to follow suit.

“Airbnb’s secret tax agreements are hurting communities across America by shortchanging their schools, infrastructure, and other public services” stated Rogers. “Airbnb’s special treatment needs to end.”

The American Hotel and Lodging Association (AHLA) is the singular voice representing every segment of the hotel industry including major chains, independent hotels, management companies, REIT’s, bed and breakfasts, industry partners and more.

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UK Foreign Office urged to update UAE travel warnings

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British legal group Detained in Dubai has urged the UK Foreign and Commonwealth Office (FCO) to update its UAE travel warnings to UK tourists in an open letter penned by the organization’s head, Radha Stirling.

“We have frequently called upon the FCO to provide more accurate information to Britons about the many risks they face in the UAE which the current advisory does not cover,” Stirling said. “It is simply not enough to warn people to obey the laws and customs, when very often the legal system itself poses a threat even to law-abiding tourists who may be subjected to false arrests, fabricated cases, forced confessions, torture, and lack of representation.”

Stirling’s letter specifically highlights the dangers inherent in the UAE’s Cybercrime laws, under which Laleh Shahravesh was prosecuted. In the letter to Permanent Under Secretary of State Sir Simon McDonald, head of the FCO, Stirling said:

“This warning is insufficient in light of the Shahravesh case, insofar as it does not explain that a British citizen can, in fact, be prosecuted if they ever visit the UAE, for posting material online in the UK which anyone inside the UAE may deem offensive.

It is vital for British citizens to be aware before traveling to the UAE that their entire social media history must adhere to UAE standards of acceptable content before they risk entering the country.”

The Cybercrime laws, she says, are irresponsibly vague and can easily be misapplied, as in Laleh’s case, in matters that have nothing to do with public endangerment, hate speech, or incitement to violence. “UAE Cybercrime laws subordinate the police, prosecutors, and courts to the tyranny of individual egos,” Stirling explained.

“If anyone in the UAE is offended by someone’s online content, even if they do not know that person, and even if that person posted the content in a different country; a criminal case can be made and an arrest warrant issued. It is an enormous threat to free speech well beyond the borders of the UAE.”

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WikiLeaks founder Assange arrested in London after Ecuador axes asylum deal

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WikiLeaks founder Julian Assange has been dragged out of the Ecuadorian Embassy in London where he has spent the last seven years. That’s after Ecuador’s president Moreno withdrew asylum.

That’s only a day after WikiLeaks Editor-in-Chief Kristinn Hrafnsson claimed that an extensive spying operation was conducted against Assange in the Ecuadorian Embassy. During an explosive media conference Hrafnsson alleged that the operation was designed to get Assange extradited.

Assange’s relationship with Ecuadorian officials appeared increasingly strained since the current president came to power in the Latin American country in 2017. His internet connection was cut off in March of last year, with officials saying the move was to stop Assange from “interfering in the affairs of other sovereign states.”

Assange garnered massive international attention in 2010 when WikiLeaks released classified US military footage.

The footage, as well as US war logs from Iraq and Afghanistan and more than 200,000 diplomatic cables, were leaked to the site by US Army soldier Chelsea Manning. She was tried by a US tribunal and sentenced to 35 years in jail for disclosing the materials.

Manning was pardoned by outgoing President Barack Obama in 2017 after spending seven years in US custody. She is currently being held again in a US jail for refusing to testify before a secret grand jury in a case apparently related to WikiLeaks.

Assange’s seven-year stay at the Ecuadorian Embassy was motivated by his concern that he may face similarly harsh prosecution by the US for his role in publishing troves of classified US documents over the years.

His legal troubles stem from an accusation by two women in Sweden, with both claiming they had a sexual encounter with Assange that was not fully consensual. Assange said the allegations were false. Nevertheless, they yielded to the Swedish authorities who sought his extradition from the UK on “suspicion of rape, three cases of sexual abuse and unlawful compulsion.”

In December 2010, he was arrested in the UK under a European Arrest Warrant and spent time in Wandsworth Prison before being released on bail and put under house arrest.

His attempt to fight extradition ultimately failed. In 2012, he skipped bail and fled to the Ecuadorian Embassy, which extended him protection from arrest by the British authorities. Quito gave him political asylum and later Ecuadorian citizenship.

Assange spent the following years stranded at the diplomatic compound, only making sporadic appearances at the embassy window and in interviews conducted inside.

Assange argued that his avoidance of European law enforcement was necessary to protect him from extradition to the US, where then-Attorney General Jeff Sessions said that arresting him is a “priority.” WikiLeaks was branded a “non-state hostile intelligence service” by then-CIA head Mike Pompeo in 2017.

The US government has been tight-lipped on whether Assange would face indictment over the dissemination of classified material. In November 2018, the existence of a secret indictment targeting Assange was seemingly unintentionally confirmed in a US court filing for an unrelated case.

WikiLeaks is responsible for publishing thousands of documents with sensitive information from many countries. Those include the 2003 Standard Operating Procedures manual for Guantanamo Bay, Cuba. The agency has also released documents on Scientology, one tranche referred to as “secret bibles” from the religion founded by L. Ron Hubbard.

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