Malaysia Airlines flight MH17 crashes in east Ukraine

Plane carrying 295 people may have been shot down near Russian border but government and separatists deny involvement

• Follow the latest developments on our live blog

theguardian.com, Shaun Walker in Kiev, Tania Branigan in Beijing, Alec Luhn in Moscow and agencies, Thursday 17 July 2014

A Malaysia Airlines passenger jet carrying 295 people from Amsterdam to Kuala Lumpur has crashed in an area of eastern Ukraine where separatist rebels have been engaging Ukrainian military forces in recent weeks.

Ukraine's president, Petro Poroshenko, said the jet may have been shot down.

"We do not exclude that the plane was shot down and confirm that the Ukraine armed forces did not fire at any targets in the sky," Poroshenko said in a statement.

Dozens of bodies were scattered around the smouldering wreckage of the plane, near the village of Grabovo, about 25 miles from the Russian border, according to reporters at the scene.

Emergency workers said at least 100 bodies had been found so far, and wreckage was scattered across an area 9 miles in diameter.

Emergency workers at the crash site. Photograph: Maxim Zmeyev/Reuters

"I was working in the field on my tractor when I heard the sound of a plane and then a bang and shots. Then I saw the plane hit the ground and break in two. There was thick black smoke," a witness, who gave his name only as Vladimir, told Reuters.

In a statement, Malaysia Airlines said Ukraine's air traffic control lost contact with flight MH17 at 2.15pm GMT, approximately 30 miles from the Russia-Ukraine border.

"Flight MH17 operated on a Boeing 777 departed Amsterdam at 12.15pm [Amsterdam time] and was estimated to arrive at Kuala Lumpur International Airport at 6.10am [Malaysia time] the next day. The flight was carrying 280 passengers and 15 crew onboard." The flight also had a Dutch airline flight number from KLM, KL4103.

Anton Gerashchenko, an adviser to Ukraine's interior minister, wrote on his Facebook page that the plane had crashed in Ukrainian territory after being hit by a missile fired from a Buk launcher. Associated Press said one of its journalists had seen a similar launcher near the town of Snizhne earlier on Thursday.

Credit: Guardian graphics

Leaders of the self-declared Donetsk people's republic denied any involvement, according to Interfax news agency. A member of the republic's security council said rebel weapons only had the capacity to shoot down a plane at 3,000 metres and blamed Ukrainian military forces for the attack.

Poroshenko called for a commission to be set up to investigate the crash. "This is the third tragic incident in recent days after Ukrainian military An-26 and Su-25 jets were shot down from Russian territory. We don't rule out that this plane was also shot down, and we stress that the Ukrainian military didn't take any actions to destroy targets in the air," he said.

Earlier on Thursday, Ukraine accused Russia of downing one of its fighter jets inside Ukrainian territory.

Dmitry Peskov, a spokesman for the Russian president Vladimir Putin, called allegations that Russia had been involved in the downing of MH17 "stupidity".

Local Ukrainian TV images show smoke from the Malaysia passenger airliner
 that has crashed near the Russian border. Photograph: Universal News And
Sport (Europe)

Peskov told the Guardian that the Kremlin would not make a further statement on the tragedy because "no one knows" who is responsible.

Asked about the possibility of further US sanctions in light of this bloody development in the conflict in eastern Ukraine, Peskov said he could not rule it out.

"The United States has recently been conducting a very non-constructive policy, and their actions are very unpredictable," he said.

Speaking in Delaware, Barack Obama said his administration was seeking "to determine whether there were American citizens onboard".

"That is our priority. And I've directed my national security team to stay in close contact with the Ukrainian government. The United States will offer any assistance we can to help determine what happened and why. As a country our thoughts and prayers are with all the families of the passengers, wherever they call home."

Earlier, Obama and Putin spoke on the phone about new US sanctions imposed on Moscow over its alleged failure to halt the flow of weapons and fighters to separatist forces in eastern Ukraine.

Several airlines, including British Airways, Aeroflot, Turkish Airlines and Russia's Transaereo announced they would avoid Ukrainian airspace with immediate effect. Lufthansa said it would steer clear of airspace over eastern Ukraine.

At least 30 Dutch-speaking passengers were on the plane, according to two travel agencies which sold tickets for the flight. According to Dutch newspaper websites, several Dutch passports were found near the scene of the crash.

The Malaysian prime minister, Najib Razak, said via Twitter: "I am shocked by reports that an MH plane crashed. We are launching an immediate investigation."

The country's defence minister tweeted that he was "monitoring closely" claims that MH17 had crashed, saying: "No comfirmation [sic] it was shot down! Our military have been instructed 2 get on it!"

The crash comes four months after Malaysia Airlines flight MH370 vanished on a flight from Kuala Lumpur to Beijing with 239 people on board, two-thirds of them Chinese citizens. It has yet to be found despite a massive international search, which is still ongoing, but Malaysia Airlines has said it believes everyone on board died when the plane crashed into the southern Indian Ocean.

The cause of MH370's disappearance remains a mystery, with investigators suggesting the plane was deliberately diverted from its course, but there was no way of knowing whether the pilots were responding to an emergency or whether there was malicious intent.

That aircraft was a Boeing-777 – the same kind of plane as flight MH17.

In 2001, Ukraine admitted its military was probably responsible for shooting down a Russian airliner that crashed into the Black Sea, killing all 78 people on board. A senior Ukrainian official said it had most likely been downed by an accidental hit from an S-200 rocket fired during exercises.

In 1983, a Soviet jet fighter shot down a South Korean airliner after it veered off course into Russian air space and failed to respond to attempts to make contact. All 269 passengers and crew were killed.

In 1988, the US warship Vincennes shot down an Iranian airliner over the Gulf, killing all 290 passengers and crew, in what the United States said was an accident after crew mistook the plane for a fighter. Tehran called it a deliberate attack.

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Obama: missile that downed jet came from rebel-held area
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Malaysia Airlines Retires MH17 Flight Code

Haunting: Malaysia Airlines Boeing 777, Reg 9M-MRD, made 1st flight on 7-17-97. It met its end 17 years later, to the day -aviation official
— C.J. Chivers (@cjchivers) July 17, 2014

Drones take flight into a world of possibilities

Yahoo – AFP, July 17, 2014

Drones take flight into a world of possibilities (AFP)

Montreal (AFP) - Like a well-trained dog, the HEXO+ follows you faithfully wherever you go. But it doesn't walk besides you -- it's airborne.

Developed by a French start-up, Squadrone System, the six-rotor HEXO+ -- which handily totes a GoPro video camera -- is billed as the first autonomous small drone for the mass market.

It's also a prime example of the many ways in which automation will take to the sky as unmanned aerial vehicles, or UAVs, become part of daily life in the not-too-distant future.

Due out in May 2015 with a planned retail price of US$899, the HEXO+ is targeted at extreme sports enthusiasts looking for a way to immortalize their every move.

Users activate it with a smartphone app, then let it fly a few meters (yards) behind them, recording their every twist and turn, up to a top speed of 70 kilometers (45 miles) an hour.

"Making snowboard films is my main activity, so essentially I started using drones a few years ago," said Squadrone System's co-founder Xavier Delerue, a former world snowboard champion.

"At the outset, it was great. It was easy. It was going to change everything -- and then I quickly realized taking good images involved a lot of logistics when it came to using a drone," he told AFP.

Delerue, whose venture has attracted $1 million in Kickstarter funding, plays down concerns that small drones could have a more sinister use, like peering at small children at play in a park.

"Regulations are in place that guard against abusive use," he said.

In North America and in Europe, advances in drone technology have caught lawmakers on the back foot. They are now scurrying to find ways to regulate the skies.

Unlike military drones, drones for civilian use can only operate for up to 20 minutes and usually cannot carry much more than a small camera. But big business is looking to boost that capacity.

In the run-up to Christmas last year, Amazon, the world's biggest online retailer, caused a stir with its proposal to use small drones to deliver packages.

Russian fast-food chain Ilya Farafonov isn't waiting. In June it unveiled its first pizza delivery drone, an idea it hopes to extend to the 18 cities in which it operates.

For some drone enthusiasts, food deliveries via drone is a waste of time.

Drones carrying medical supplies

"This is total nonsense. Why the hell would you do that?" asked Andreas Raptopoulos, chief executive of Matternet, a start-up that's exploring ways to put drones to work in developing nations for humanitarian purposes.

"Why don't you use the same technology to save somebody's life when a mother needs medicine, or a child needs medicine... To me, this is where technology works best," he told Britain's Guardian newspaper.

Raptopoulos envisions a network of drones that can ferry food and medical supplies into conflict zones or areas hit by natural disaster.

Matternet has already carried out trial flights in Haiti, and in September, it aims to shuttle blood samples in conjunction with international medical charity Doctors Without Borders.

Since December, the United Nations has used drones in eastern Democratic Republic of Congo to monitor rebel activity along the borders with Uganda and Rwanda.

"Used imaginatively, future drones could detect stirrings of ethnic conflict, find survivors amid rubble, or even perform fanciful functions such as body-temperature surveys of populations to hunt killer outbreaks," said Jack Chow, a former US ambassador and expert on global health diplomacy, speaking at the Canadian International Council think tank.

From real estate to crops

News media are meanwhile scoping out the possibilities of drone journalism, with Canadian journalism schools already offering specialized courses on UAV newsgathering.

Aerial photography with drones has also captured the imagination of real estate agents eager to pitch luxury properties in places like Los Angeles or Toronto -- although regulations strictly limit flights in populated areas.

Rural districts remain a more welcoming environment for drone flying, where farms can embrace the technology to evaluate soil conditions, guide tractors or assess the most effective way to spread fertilizer.

Two years ago, French entrepreneur Vivien Heriard-Dubreuil, seeing opportunity in the countryside, founded Flyterra, which is based in New York with operations in Quebec.

"Using drones to maximize harvests is very promising," he told AFP, adding that his drone fleet can also be useful to inspect mines, dams and windmills.

There's a cultural side to the drone revolution as well.

A group of Australians recently launched the I-Drone, which with its powerful video projector has turned outdoor walls in Melbourne into movie screens after dark.

And in Japan, a contemporary dance troupe presented a show in May that explored the relationship between technology and the human body. Scenes featured three dancers -- and as many drones.

Airbus wins $60bn of deals as seduces with new 'neo' plane

Yahoo – AFP, Delphine Touitou, Julien Mivielle, 15 July 2014

An Airbus A350-900, part of the company's new A350 XWB family of aircraft,

 gives a flight demonstration at the Farnborough Air Show on July 14, 2014

(AFP Photo/Carl Court)

Farnborough (United Kingdom) (AFP) - European aircraft maker Airbus racked up orders for its new long-haul A330neo plane on Tuesday, as airlines and leasing companies cash in on demand for cheap long-haul air travel.

Launched Monday at the Farnborough airshow near London, Airbus has won commitments for 105 of its neo planes, surpassing its original target of 100 at the key industry event with several days still to go.

"I think this is going to be a remarkable plane," said Tony Fernandes, co-founder of low-cost airline AirAsia X, which on Tuesday signed an outline deal for 50 of the planes valued at $13.75 billion (10.11 billion euros) at catalogue prices.

A Boeing 787 is displayed among fighter

 jets at the Farnborough air show in

 Hampshire, England, on July 15, 2014

(AFP Photo/Leon Neal)

Airbus chief executive Fabrice Bregier said the A330neo's lower fuel consumption, long-range capability and competitive price will make it "a true game changer" for the aviation industry.

Also Tuesday, US leasing company CIT said it planned to buy 15 A330-900neo planes and Dublin-based lessor Avolon said it had signed a memorandum of understanding for 15 of the aircraft.

Air Lease Corporation on Monday announced a similar deal for 25 of the wide-body neo planes.

In total, Airbus said it had sealed orders and commitments for almost 400 of its planes worth more than $60 billion during the first two days of the show -- far outpacing US rival Boeing.

But Airbus also hit a bump on Tuesday when Qatar Airways said it will claim compensation because of the delayed delivery of its first A380 superjumbo, without giving further details.

Qatar Airways expected to take delivery of the super-jumbo in June but the order has been delayed several times.

Chief executive Akbar al-Baker said there were problems with both the interior and exterior of the aircraft, which were "absolutely disappointing to Qatar Airways".

Leasing firms buy Boeing

General view of a Boeing Dreamliner at the

 Farnborough air show in Hampshire,

England, on July 15, 2014 (AFP Photo/

Leon Neal)

On Tuesday, Boeing said it had won a number of orders for its passenger planes from American leasing companies potentially worth a total of about $10.0 billion.

Boeing, ahead of the show, raised its forecast for industry aircraft sales over the next two decades to $5.2 trillion, driven largely by demand from low-cost carriers.

Air Lease Corporation has ordered 26 Boeing jets in a deal valued at $3.9 billion.

Air Lease is buying six long-haul 777-300ER jets and has confirmed an order for 20 single-aisle 737 MAX 8 planes.

"Additional 777-300ER and 737 MAX airplanes in our portfolio provide the economics and passenger-pleasing experiences our airline customers require," said Air Lease chief executive Steven Udvar-Hazy.

"The 737 MAX represents game-changing efficiencies and improvements for the environment in the single-aisle market," he added.

Boeing added that CIT had ordered 10 787-9 Dreamliners, valued at $2.5 billion at current list prices.

British Prime Minister David Cameron sits

 in the cockpit of an Airbus A350 aircraft at

the Farnborough Airshow on July 14, 2014

(AFP Photo/Ben Gurr)

"These aircraft will add to our growing fleet of fuel-efficient aircraft that remain in high demand from our airline customers," said Jeff Knittel, president of CIT Transportation & International Finance.

Intrepid Aviation meanwhile ordered six 777-300ERs and has an option to buy four more in a deal worth about $3.2 billion, Boeing said on Tuesday.

Brazilian group Embraer, the world's third-largest commercial planemaker, has won orders worth billions of dollars for its regional jets at Farnborough, including its new single-aisle E195-E2 jets.

F-35 at Farnborough?

Organisers of the show were still hoping for an appearance by the F-35 fighter jet after the US fleet on Tuesday won clearance to fly again following an engine fire that left it grounded.

"We remain hopeful that the F-35 can make an appearance at the Farnborough air show," said Pentagon press secretary Rear Admiral John Kirby.

The new warplane, touted as a technical wonder that will form the core of America's future fighter fleet, missed a British military aviation event over the weekend and the first day of Farnborough.

At nearly $400 billion, the F-35 is the most expensive weapons programme in US history and officials are eager to reassure foreign partners and potential customers that it remains on course.

Jakarta Temperature Drops in Line With Freezing Australia

Jakarta Globe, SP/Ari Supriyanti Rikin & Arientha Primanita, Jul 15, 2014

Bemos make their way past an overpass on Monday, July 14, as cold southerly
winds sent temperatures down into the low 20s. (Antara Photo/Vitalis Yogi Trisna)

Jakarta. Extraordinarily cold weather across parts of Indonesia and Australia over the last week could be repeated if southerly winds from Antarctica were to return, the Indonesian meteorology agency said on Tuesday.

The temperature dropped four to eight degrees Celsius from the July average over the weekend, according to the Meteorology, Climatology and Geophysics Agency (BMKG).

BMKG head Edvid Aldrian said that the temperature dropped as much as eight degrees in Serang, Banten province.

“As late as Monday morning the temperature in Curug was at 23 degrees Celsius while Jakarta recorded 25 degrees on Monday evening,” he said on Monday.

Edvin said that Indonesia’s colder-than-usual temperatures were commensurate with the record-breaking lows felt across parts of Australia, with chilly southerly winds sending temperatures in Brisbane below freezing. July 11 was the coldest day in the Queensland state capital for 103 years.

Indonesia has seen an unusually late start to its dry season, with meteorology chiefs agreeing that the rainy season had lagged well into July.

“There is a small chance that such cold weather will happen again. It was because on Sunday there was low pressure in the Sunda Strait which caused more clouds at the western part of Indonesia, especially West Java and South Sumatra,” he told the Jakarta Globe on Tuesday.

Edvin said that Greater Jakarta was only now beginning to see the start of the dry season, but added that isolated showers were still a possibility. He said that the rainy season will start again around September.

In Denmark, you can end the cycle of life ... on a tricycle

News.com.au – AFP, July 2014

Life cycle ... Sille Kongstad with her self-made vehicle for her tricycle hearse
 service in Copenhagen, Denmark. Picture: AFP/Bededamerne.dk/VAGN
HANSEN Source: AFP

SHUFFLING off this mortal coil in many countries means making a final trip to burial or cremation in a motorised hearse.

But in Denmark — a country famous for its pedalling lifestyle — the recently deceased now have the option of being seen off on a tricycle.

The contraption, built by a Danish undertaker, has been hailed by cycling enthusiasts in this Nordic nation — but also hit by criticism from those who believe a person’s exit is more dignified by car.

“I got the idea from looking at some pictures of old horse-drawn carriages used in the olden days to transport coffins, and I thought they were very beautiful and feminine,” Sille Kongstad told AFP.

“A lot of families that contact me are concerned about the environment, and it’s important for them to have a sustainable coffin or urn, and it was good to be able to offer them an environmentally friendly mode of transport,” she added.

In two days Kongstad has received five bookings for the new vehicle, which cost over 40,000 kroner ($AU7800) to make, with many more customers “who are still alive” contacting her to inquire about using it in the future.

The first funeral, on July 19, will be for a 95-year-old man who “loved to have big happenings in his life”.

“The family thought this was a really nice way to say farewell. There will be saxophone music played afterwards and his own saxophone will be placed on the coffin,” Kongstad said.

Long considered one of Europe’s two “bicycle capitals” along with Amsterdam, Copenhagen counts more bicycles than people, and 36 per cent of those who work or study in the Danish city use a bike for their daily commute.

Yet the novel design has drawn mixed reactions from Danish Facebook users, with some describing it as an undignified way to go, while others worried that it might scare children.

Kongstad said there was little difference between putting a coffin on display in a car or on a tricycle, adding that children generally had fewer fears and hang-ups over death than their parents did.

“In general, I think people in Denmark and elsewhere should try to be more open about death and dying,” she said.

“It’s the most natural thing in this world, the fact that we’re going to die. It’s the only thing we can be sure of,” she added.

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"THE THREE WINDS" – Feb 23-24, 2013 (Kryon Channelling by Lee Carroll) (Subjects: Humanity, Home - other side of the veil, Wind of Birth - Birth, Wind of Existence - Life, Wind of Transition - Death) - (Text version)

“… The Wind of Transition (Death)

The last wind is the Wind of Transition. You call it death. What can I tell you about this that you don't already know? Well, I think I can tell you a lot. First of all, the rules: You don't know what you don't know. You don't know when it's going to happen. Did you know that we need to keep some of you here for a very long time? It's because you are not done with what you started. For others of you, we need you to transition sooner than later in order to follow your own plan. We need you at a new place on the planet soon, when you're young. We need your Akashic knowledge to awaken early and keep developing what you're developing now, because you'll have the energy of youth.

We need you to be a certain age so you can run for office, just as you planned it. We need to have you young for other reasons that should be very obvious to you as you think about it from our standpoint. So, you don't know when you are leaving. Cast away the fear of this transition, so you understand the reasons that are profound and the ones you helped create when you were on my side. The very awakening process helps to decide when you're going to transfer the energy and move through transition yet again.

I want to give you an attribute you probably haven't thought of: Death is fearful. In the corporeal sense, you have an incredible will to survive. The last thing anyone wants, even bacteria, is to die. Survival then pushes you to live and nobody simply walks into death without fear. This will remain, and it's the way it should be. But there is a gift for you that we give you, and you don't even know about it.

At the moment of transition, when your heart stops and you take your last breath, we are there. All the angels from the Great Central Sun are there, too, and they kindle a light that puts you at peace. It's a peace so great that fear cannot exist. In a fraction of a second, you know it's OK. You might call it a spiritual anesthetic, but we call it the gift from the Creator.

So the Wind of Transition from our standpoint, a quantum standpoint, is beautiful. It represents that instant where you realize you're finished with this life. It's only for a second, and then it's gone. Then you move into the process of a three-day remembrance of who you are. Part of you is still on the planet and part of you is with us. All of it is beautiful.

Some Humans have gone through a near-death experience and explained it the best they could, but they all say they came back different. Oh, Human Being, they saw a piece of it; they saw a piece of the creator and when they came back, they exclaimed to you, "You won't believe it! I was dead for a moment and I heard singing and saw light." Just ask them and they'll tell you. So this is the gift of transition that we have never talked about before. There is no sting in death, Human Being. The only sting is for the ones who remain and don't know where you are. They feel you are gone forever, but you are not. Neither are the souls of those you have lost over the years, dear listener and reader. Did you know that the parents you may have lost will be with you till your last breath? They are holding your hand the whole time. This is complex, but it's part of a beautiful, multidimensional system of soul grouping. Some of you know I'm right, since you have sensed them.

Human Beings, you have to know that your soul group can be in several places at the same time. We've given you that information before. Souls can be reincarnated somewhere else on the planet as a corporeal Human, and also be with you at the same time as what you perceive as a guide. Don't ask the question about "how", because it won't make any sense in your reality. It's a beautiful system. Death has no sting!

If you lose somebody you love, I want you to remember this: They may appear still and cold and gone forever, but that's just in 3D and it's not the truth. They are alive and well and looking at you, pleading with you to see the energy of love that they represent. They are not gone.

Those are the Three Winds for today. I love to talk about these things for they are near to me all the time. I work with all three, and I'm working with them right now. The energy that is Kryon is a group. It's just like all of you are, since you have these attributes also. I'm part of a group right now who are working with those at the Wind of Birth. I am also welcoming those going through the transition - right now. This is the role of Spirit through the Higher-Self that is yours. Discover God inside. When you do, you will also see that the plan is beautiful, dear ones. …”

"Perceptions of God" – June 6, 2010 (Kryon channeled by Lee Carroll) (Subjects: Quantum Teaching, The Fear of God, Near-death Experience, God Becomes Mythology, Worship, Mastery, Intelligent Design, Benevolent Creator,Global Unity.... etc.) (Text version)

“… When a Human almost dies, they get close to the veil, very close. They are ever so close to the creator's energy and just barely touched by it. When their heart was stopping and their breathing was almost gone, before they were brought back to life with science, they got to touch the hand of God for just an instant. What they saw was magnificent! The energy before them was filled with love and light, filled with family, filled with beauty. There was no strife there. There was no punishment there or even the hint of it. And when they came back from that experience, listen to what they told you. It changed their lives, didn't it? Listen to each one talk about it, for they continued to say, "There is nothing to fear and death is something you experience as a normal transition." Blessed is the Human Being who experiences both death and birth and has the wisdom to report, "Oh, it's uncomfortable, but I'll get through it, because I've done it before." The person who has experienced a near-death experience is no longer afraid to die! What does that tell you? They have seen what is there and they embrace it! …”

Drones for civilian use in demand in China

Want China Times, Xinhua 2014-07-12

Drones on display at the Fifth UAV China Conference & Exhibition
in Beijing, July 10. (Photo/Xinhua)

Drones for civilian use are proving increasingly popular in China, but a dearth of innovation is hindering domestic producers, experts said at an international drones exhibition that concluded on Friday.

Although the unmanned aerial vehicle (UAV) industry is just a few years into its development, UAVs are now extensively applied in China for civilian purposes, according to Li Yong, vice president of Wuhan Ewatt Aerospace Technology Company, which specializes in making drones.

"UAVs are increasingly used in a variety of fields, including electric power industries, disaster-relief work, as well as shooting TV programs," Li said at the fifth UAV China Conference & Exhibition in Beijing.

In the latest example, remote sensing drones, known for their safety and high efficiency, were employed to help with rescue efforts following a mudslide in southwestern China's Yunnan province that left 17 people missing on Wednesday.

The domestic drone industry lacks the talent and technology needed to innovate, and instead tends to imitate other countries, said Xu Huaying, a retired official from the Aviation Industry Corporation of China.

According to Xu, a UAV market must be fostered in which small private firms compete with those with state backing, with the competition hopefully driving up standards.

The government should support the industry by issuing more preferential policies, encouraging the cultivation of skilled personnel and enhancing international exchanges, he said. "Only in this way can we truly bring the industry to the next level."

Beijing to scrap purchase tax on new-energy vehicles

Want China Times, Staff Reporter 2014-07-11

A Tesla electric car on show in Taiyuan, Shanxi province, May 5, 2014.
(File photo/Xinhua)

A State Council meeting on Wednesday decided that purchase taxes should be waived on new-energy cars that are allowed to be sold in China.

Starting from September this year through the end of 2017, electric cars, plug-in hybrid electric cars and fuel cell electric vehicles will be exempt from taxes on purchase.

The State Council has requested related government agencies to publish the catalogue for the models that can enjoy the tax-free measure. In the meantime, the government will speed up its schedule for launching supporting measures, Shanghai's National Business Daily reported.

Dong Yang, secretary-general of the China Association of Automobile Manufacturers (CAAM), said he is positive about the rapid development of the new-energy vehicle sector.

However, Zhang Zhiyong, a senior market analyst in the auto sector, said the new measure is unlikely to substantially boost the development of new-energy cars because the current major obstacles are related to infrastructure in the sector, technology, security, customer service and quality. The new policies are intended to show the government's plan to develop the industry, Zhang said.

Some market observers stated that the measure will benefit development of not only car models, but also of their charging stations and batteries.

At present, the tax levied on the purchase of cars of all kinds is 8.5%. The large tax waiver for buying new energy vehicles will effectively reduce the cost for buyers, Dong said, adding however that the construction of charging equipment for electric vehicles should be the top priority.

CAAM statistics showed that China produced 20,692 new-energy cars during the first half of 2014 and sold 20,477, figures 2.3 and 2.2 times higher, respectively, compared with the same period a year ago.

123 helicopters purchased from Airbus by Chinese firms

Want China Times, Staff Reporter 2014-07-10

A Bavarian State Police EC-135 helicopter in Germany. (Internet photo)

Three Chinese companies signed a contract on July 7 to purchase 123 helicopters from Airbus' helicopter branch during the visit by the German chancellor, Angela Merkel, according to Reuters.

"We are grateful to the operators for selecting Airbus Helicopters to be their partner in developing the general aviation market to serve China's needs," said Guillaume Faury, CEO of Airbus Helicopters. Two types of helicopters including the light single-engine helicopters from Airbus Helicopters' Ecureuil family and the light twin-engine EC135 will be purchased by the Chinese firms according to the report.

Our sister newspaper China Times said that Guangdong Baiyun General Aviation Company purchased 50 helicopters while the Yunnan Fengxiang General Aviation Company bought 18 and Fujian Xinmei General Aviation Company bought 55. The Chinese helicopter market is growing at a rapid speed, as Airbus had previously predicted. Currently, 800 civilian helicopters are purchased annually on the global market, while China buys only 50 on average.

This number is expected to grow gradually by 2020 according to Airbus, after which China is expected to buy around 200 civilian helicopters each year.

"It is evident that China’s relaxation of its low-altitude airspace regulations is enabling the country's burgeoning helicopter market to realize its potential," said Faury.

The Chinese market for helicopters is predicted to be worth US$68 million over the next 20 years, according to the company, which is jointly owned by France and Germany.

Mazda 6 recalled in China over airbag problem

Want China Times, Xinhua 2014-07-07

A Mazda at a car show in Shenzhen, June 8, 2012. (Photo/Xinhua)

China FAW Car Co, maker of some Mazda models in China, will recall 42,732 Mazda 6 sedans starting on July 20 due to an airbag problem, according to China's top quality watchdog.

Affected cars were manufactured between March 29, 2003 and April 30, 2004, the General Administration of Quality Supervision, Inspection and Quarantine said in the circular.

Due to production faults, the airbag for front passenger seat may fail to work in the case of collision, as pressure inside the airbag inflator may rise to an abnormal level and the metal container may break into pieces, which may lead to air leaks and even fire in extreme cases, the administration said.

The company will check the affected vehicles and replace the defective parts free of charge.

San Francisco's Uber brings private car-hailing app to Taiwan

Want China Times, CNA 2014-07-05

An advertisement for Uber's taxi hailing app. (Photo/Uber)

Uber, a San Francisco-based transportation networking company that makes mobile apps which allows customers to book and track vehicles for hire, is seeking to introduce the new technology to Taiwan, an official from the Ministry of Transportation and Communications said Friday.

Ministry officials said they were still assessing whether the company's services are legitimate and violate any local transportation rules.

Uber has begun soliciting members in Taiwan through the internet by launching discounts.

The apps, when downloaded to the user's smartphone, detect the Global Positioning System's (GPS) space-based satellite navigation system and finds the nearest available driver who is a member of the network.

Customers can hail a private car, track the car's progress on a map, pay the driver, and even split the fare with friends using a credit card system, all via the Uber smartphone app that connects passengers with drivers of vehicles for hire and ridesharing services, according to the company website.

In addition to car-for-hire services, Uber also offers taxi services, which allow customers to book and pay for taxi journeys, according to the ministry.

Wang Mu-heng, deputy director of the ministry's Department of Railways and Highways, said under existing rules, drivers who work for car-for-hire companies cannot directly receive assignments from customers, Wang added.

Wang said if Uber cooperates with car-for-hire companies to supply car hiring services, then these companies can use the app to communicate with customers and assign drivers to pick up customers and accept payments.

If Uber collaborates with taxi-cab companies, it will need to be licensed to become a taxi services provider and cannot offer discounts, according to Wang. He added that they should charge customers taxi fares based on a flag-down fare and the distance traveled in accordance with related regulations.

Uber has filed applications to operate information management, business consulting and even third-party payment services, the ministry said.

It said it was concerned about the operating methods of Uber, however, given that if disputes arise from such services, consumers' rights are at stake. The ministry has therefore decided to consult with government agencies to look into whether Uber's operations are legitimate.

The ministry said car-for-hire providers could face fines of NT$9,000 (US$300) to NT$90,000 (US$3,000) and taxi companies could be fined NT$50,000 (US$1,700) to NT$150,000 (US$5,000), if they are found to be in violation of the law.

Apps using Uber's technology were first launched in 2009 and are currently in operation in more than 70 cities in 37 countries.

'Made in China' high speed trains going global

Chinese high-speed train makers are increasingly selling their products to Western countries. Experts say the established European firms in the sector urgently need to develop strategies to counter the competition.

Deutsche Welle, 3 July 2014

Previously known as a manufacturing hub for low-technology and labor-intensive products, China has been increasingly moving up the technology ladder to become an exporter of hi-tech goods.

No other sector symbolizes this shift better than the train market. When China decided over a decade ago to build a high-speed rail network connecting the length and breadth of the vast nation, the country had no domestic production base that could handle such a mammoth project. It had to import trains from foreign companies such as the German conglomerate Siemens, the Japanese corporation Kawasaki and the French firm Alstom.

Fast forward to today and Chinese rail companies have mastered the technology to build the trains and are now actively seeking markets overseas to sell their trains, thus competing with the established players in this segment.

For instance, it is reported that China South Locomotive & Rolling Stock Corporation (CSR), the Asian nation's largest train manufacturer, recently signed a contract with Macedonia's national railway company to sell six bullet trains. The agreement follows deals made by China with several other Eastern European countries such as Romania and Hungary to build high-speed rail lines.

Beijing is also promoting its high speed rail infrastructure and technology in other regions such as Asia and Africa.

From buyer to maker

China's sales pitch is supported by massive amounts of investment. The country has poured some 500 billion USD into building its domestic high-speed rail infrastructure so far. Although graft allegations and a fatal crash in 2011, which killed 40 people, jolted public confidence and resulted in a brief slowdown of network expansion, the pace has since picked up.

Chinese rail companies have mastered
the technology to build high-speed trains
and are actively seeking markets overseas

The country currently has more than 11,000 kilometers of dedicated high-speed train tracks, reflecting Beijing's desire to boost economic activity in the country through the allocation of resources towards massive infrastructure projects.

China initially bought trains and related equipment from foreign manufacturers, but its engineers later re-designed the machinery and succeeded in building their own trains capable of reaching top speeds between 350 and 400 kilometers per hour. This has caused headaches for the likes of Siemens and Alstom, which had hoped to profit from the boom.

While some have accused Beijing of copying foreign technologies, China has called it a path of "introduction, digestion, absorption and re-innovation."

Gaining access to technologies by entering joint ventures and sharing agreements is a "globally widely followed - albeit frowned-upon – practice, and I doubt that this is a singularly Chinese approach," says Thomas König, China expert at the European Council on Foreign Relations.

An unfair advantage?

Furthermore, the scale of domestic high-speed rail network construction has led to a decline in production costs for Chinese manufacturers, which has made them more competitive than their counterparts in places like Germany and France.

The issue of competitiveness, however, is not limited to this market. According to Nicola Casarini, Asia expert at the European Union Institute for Security Studies (EUISS), "Europe is losing competitiveness vis-à-vis China, as more and more Chinese products compete with European ones."

Analysts also argue that, unlike firms such as Siemens, China's rail companies - which are state-owned-enterprises - have an unfair advantage of a guaranteed state-led infusion of capital in order to increase output.

König says China has "identified the potential of the market early on and is now making the most of it."

In an bid to increase its impact on European markets, China has been "successfully closing deals with countries that have been hit hardest by the eurocrisis or are generally looking for ways to encourage growth spurts in their economies," explained König, adding that China is widely perceived as a "relatively hassle-free alternative to the often unappealing bureaucratic processes the EU represents."

The expert, however, pointed out that there should be no reason for European companies to be left behind on this, given that the industry is just at the beginning of a significant upswing.

'Plenty of opportunities'

Rapid population growth and migration in emerging markets are expected to drive demand for high speed trains over the next two decades. Indeed many countries such as Russia, India and Brazil are already debating their own high-speed rail projects. For instance, it is reported that the Indian government is keen on setting up the infrastructure in the South Asian nation and is working on proposals.

In developed economies, where technology and proven safety track records are important considerations, European firms will continue to enjoy a large share of the market.

European companies are facing
growing competition in the segment

However, Chinese high-speed train manufacturers "will become more significant competitors in developing countries, especially as Beijing can use its competitive advantage in costs most effectively and boost its competitiveness in bids by offering finance through its development banks," says Rajiv Biswas, chief Asia economist of the analytics firm IHS.

König stressed that in order to overcome Chinese competition, it is far more important for the Europeans to better understand and adjust to the needs of their customers.

Biswas told DW that "there will be plenty of opportunities for European firms to compete with China, as long as they are able to develop their strategies to compete effectively across a wide range of key areas, including production costs, technology and finance." The Europeans need to develop strategies, such as setting up joint ventures with local partners in developing countries, something that will reduce costs, the analyst added.

GM recalls 7.6 mn more US cars after crashes, deaths

Yahoo – AFP, 30 June 2014

General Motors said it will pay at least $1 million in compensation to the families 

of each person killed in accidents apparently caused by defective ignition switches

 in its cars (AFP Photo/Bill Pugliano)

New York (AFP) - General Motors Monday announced another massive auto recall, calling back 8.4 million vehicles -- 7.6 million of them in the US -- following seven crashes and three fatalities.

GM, reeling over an ignition-switch recall scandal linked to at least 13 deaths, said that while there were three fatalities related to fatal crashes of older cars being recalled for ignition issues, there is "no conclusive evidence" the defect caused the incidents.

The leading US automaker announced six new recalls in all Monday. The bulk of the vehicles, about 8.2 million of the 8.4 million in the US, Canada and Mexico, are being recalled to address a problem of "unintended ignition key rotation."

GM said the three fatal crashes occurred in older model full-size sedans with that problem, but the company did not provide further details.

The group of vehicles affected includes the 1997-2005 Chevrolet Malibu, the 1999-2004 Oldsmobile Alero and the 2000-2005 Chevrolet Impala. The most recent vehicles recalled with the unintended ignition key rotation problem are the 2014 Cadillac CTS.

The other recalled vehicles have problems with a heater power cord, a joint fastener, and electrical problems.

GM said the latest batch of recalls means it will spend $1.2 billion on recall-related costs in the second quarter, up from the previous estimate of $700 million.