All posts by Jonathon Bowes

About Jonathon Bowes

Jonathan Bowes started his career in banking. After a few years, he took courses in business and finance and worked his way up the corporate ladder. Today, while writing part-time for Business District, Bowes assists talented people to find jobs in the field of economics. Contact Bowes at Jonathon[at]businessdistrict.com

Travelers Face Soaring Airfares

With the shining sun and Covid restrictions letting up, Americans are eagerly booking vacations and flights for the upcoming summer months. Tired of regulations and staying at home, people are excited for a newfound freedom they’ve missed. Together with the enthusiasm to travel, experts warn of increasingly hefty airfares.

According to the Associated Press, the expected number of travelers this summer is higher than in pre-pandemic times. Prices of domestic flights are selling at rates 24% higher than during this season in 2019 and 45% more than this time last year. Similarly, international flights are going for 10% more than in 2019.

So, why the drastic increase?

According to airlines, there are a few factors. First and foremost is the rise in jet fuel prices. Additionally, there are fewer flights available for booking and many travelers interested in purchasing tickets. In the words of Hayley Berg, an economist for Hopper, “We have more travelers looking to book fewer seats, and each of those seats is going to be more expensive for airlines to fly this summer because of jet fuel.” Lastly, there is a major decrease in staff numbers in comparison to before the pandemic, and this often results in canceled flights.

Bottom line: If you are eager to make up for missed time during the Covid-19 restrictions, go for it – but be prepared to pay the price!

European Wind Firm Expands to US Market with $510 million Purchase of US Offshore Wind Company

The world’s largest offshore wind developer, Denmark-based Ørsted, has acquired the US-

Havvindparken Sheringham Shoal. Photo courtesy (Foto: Harald Pettersen/Statoil)

based Deepwater Wind LLC, for $510 million. Ørsted is seeking to expand into the US market, which it views has having a huge potential for growth.

After proving successful as an industry in Europe, offshore wind development is having many of the subsidies that have helped the industry grow since the early 1990s rolled back. Wind energy development in the USA is the natural next step.

Deepwater Wind LLC is the developer of the only offshore wind farm in the USA, with a capacity of about 3.3 gigawatts (GW.) Ørsted’s USA portfolio now has a capacity of 5.5 GW.

So far Ørsted has been unsuccessful in getting a better foothold in the US market, losing out on several auctions. Deepwater, in contrast, has been able to achieve more through auctions, and now has the rights to developing offshore wind power for use in Rhode Island, Connecticut and New York.

“With this transaction we’re creating the number one offshore wind platform in North America,” said Ørsted’s offshore wind chief Martin Neubert.

Alibaba’s Jack Ma Promises to Bring Jobs to USA

Jack Ma Yun, Chairman and Chief Executive Officer, Alibaba Group, is seen on a monitor during the The Future of the Global Economy. Photo courtesy World Economic Forum from Cologny, Switzerland.

In the wake of the meeting between US President-elect Donald Trump and Alibaba Executive Chairman Jack Ma, an Alibaba spokesman announced the company’s plan to incorporate and additional one million small US businesses onto its e-commerce platform.

The Chinese-based internet company, Alibaba Group Holding Ltd, predicts that the plan, to be implemented over the next five years, will create about one million new US jobs as each business adds at least one employee. This is not the first-time Alibaba has suggested to bring more small US businesses into their enormous marketplace, but it is the first time specific target numbers have been suggested.

The meeting between the leaders took place at Trump Tower in New York, where the president-elect lives. Trump said the meeting was “great” and added that they would do “great things” together. Ma said Trump was “smart” and “open-minded.”

Ma said the focus of the meeting was to discuss the best ways to support small businesses, especially in Midwest America. The idea would be to introduce the products from farmers and small clothing-manufacturers to the vast Chinese market directly through Alibaba.

Alibaba has been aggressively pursuing foreign brands to set up Tsmall stores, their online platform which offers virtual store fronts and payment portals to merchants. His goal is to simplify the sales, payment and shipping process for the vast and growing Chinese shopper which Ma is relentlessly attracting to his e-commerce website.

Right now, there are about 7,000 US brands sitting on Alibaba’s Tmall, including US giants such as wholesaler Costco Wholesale Corp and clothing manufacturer Levi’s. Last year these companies made $15 billion in sales to Chinese consumers, although some foreign retailers say they have had a mixed success on Tmall.

Last month the US Trade Representative put Alibaba back on to an infamous list of blacklisted online retailers due to suspicions that the company does not do enough to end counterfeiting on their site.

Clinton a Better Choice for Business Say Economists

A survey conducted by the National Association for Business Economics showed that Hillary Clinton is the preferred candidate for president of the US by 55 percent to an embarrassing 14 percent for Donald Trump. As a matter of fact, Trump was not the second choice. Third party Libertarian candidate Gary Johnson had more support than Trump, with 15 percent saying they would prefer to see him as president. An additional 15 percent said they did not know or had no opinion.

The survey was conducted from July 20 to August 2 and included the views of 414 members of NABE.

Some of Trump’s policies seem to be contributing to his lack of support. Whereas Trump says he would like to nullify or severely restrict the North American Free Trade Agreement, 65 percent of business economists say US trade policy should be even more open and free versus only 9 percent who agree with Trump that trade should be more protectionist.

Trump has expressed a desire to deport illegal immigrants, but the NABE survey showed that only 8 percent agreed with that sentiment, while 64 percent said they would like to see a program to legalize undocumented immigrants who already live in the US.

Meet Isaac Dabah, CEO of Delta Galil

Isaac Dabah, CEO of Delta Galil, was first introduced into the world of business when he joined in his father’s importing company when Dabah was in his twenties.

In 1993 he invested $5 million in the Gloria Vanderbilt jeans brand. After seven years he was able to rebuild the brand, selling it in 2002 for $150 million. Three years later Isaac Dabah bought a 23 percent stake in Delta Galil, also an apparel company, specializing in undergarments. In 2005 he became a director, and after acquiring more of the company, became its CEO in 2008.

The Delta Galil Company has become a global presence in the intimate apparel sector under the guidance and leadership of Dabah. Innovation is the driving force at Delta Galil. The company has trademarked their “Body Before Fabric” philosophy, which considers as of prime importance the way fabric interacts with the body surface to create ultimate comfort and fit.

Today the company has an international presence in over 40 countries, with the US and European markets representing 59 and 28 percent of their business, respectively. Delta’s products populate such well-known brands as Victoria’s Secret, Calvin Klein and Lacoste.
In addition, Delta has also collaborated with Nike, operating a cutting-edge technical center in Beaverton, Oregon, on their behalf