Chinese tourists are back, but still far from pre-COVID levels

April 19, 2023 | 4:37 pm

woman-child-mask — A WOMAN and a child wear masks as they arrive from Guangzhou, China, at the Ninoy Aquino International Airport in Pasay, Philippines, Jan. 23, 2020. — REUTERS

BEIJING/BANGKOK — Bookings in China for trips abroad during the upcoming May Day holiday point to a continued recovery in travel to Asian countries, but the numbers remain far off pre-COVID levels with long-haul airfares soaring and not enough flights available.

Overseas tour bookings for the upcoming holiday, for which many in China are off from April 29 until May 3, are up 157% from the beginning of April, according to Ctrip, the country’s largest online travel firm.

But, given airlines capacity is yet to fully recover after China kept its borders shut for three years and underlying consumer demand remains weak, the numbers do not compare well with the heyday of Chinese outbound tourism.

In February, over 150,000 Chinese tourists traveled to Thailand, the latest data from the Thai Ministry of Tourism show -— a three year high but still 85% below February 2019 levels.

Trips to Japan and South Korea have only recovered to 5%-10% of February 2019 levels.

“It mainly has to do with supply-side constraints in the air industry and tourism sector in destination countries,” said Sheana Yue, China economist at Capital Economics.

Thailand is the most popular destination, with the United States the only non-Asian destination in the top 10, to the disappointment of luxury boutiques on the shopping streets of Paris or Milan.

“There has been a lot of news in China about inflation in Europe and high energy prices,” said Ying Zhang, a research analyst at the Economist Intelligence Unit.

In 2019, 155 million Chinese traveled abroad, spending $254.6 billion, or close to the gross domestic product of Vietnam, according to estimates by Citi. Chinese tourists used to make up 10% of European arrivals from outside the continent.

Flights to Europe are up to 80% more expensive than before the pandemic, according to ForwardKeys, a travel data firm.

Prices on flights from mainland China to Southeast Asia have dropped 49% in March from a year ago, according to aviation data provider Flight Master.

Chinese tourists making a comeback is crucial for regional economies. They accounted for 30-35% of all arrivals into Thailand, Vietnam, Japan, and South Korea in the summer of 2019, and 25% of visitors to the Philippines.

In Thailand and the Philippines, their pre-pandemic contribution to economic growth was particularly significant.

Pre-pandemic, China was Australia’s top source of tourists, but numbers following Beijing’s reopening of borders have only trickled back. — Reuters

Airline blunder sells $10,000 business class tickets for $300

April 19, 2023 | 4:37 pm

plane-flight — YASSINE KHALFALLI-UNSPLASH

EAGLE-EYED travelers have snapped up $10,000 business-class tickets on Japan’s ANA Holdings Ltd. for just a few hundred dollars after a currency conversion blunder.

ANA has said it will honor the tickets for those people who saw the mistake and jumped on its website quickly to book and pay (the glitch was circulating widely on some social media platforms) but those who only reserved the tickets will have to pay a “just price,” according to an airline spokesperson Wednesday.

Most of the tickets were from travel starting in Jakarta, through to Japan and then onto New York and back again into various Southeast Asia destinations, including Singapore and Bali — business class all the way.

The Japanese carrier said the mistake stemmed from an error on its Vietnam website, which listed an erroneous currency conversion. It didn’t state how many people had secured discount tickets and added it was “currently investigating the cause of the bug and the size of its damage.”

Bloomberg News spoke to several people who successfully booked what will likely be a once-in-a-lifetime bargain.

Johnny Wong, who works in the airline industry, snagged a round-trip ticket from Jakarta to Honolulu via Narita airport in Tokyo for 13 million dong ($550). “I never thought I’d catch such a deal,” said Mr. Wong. The 29-year-old said he felt under pressure to enter his details as fast as he could, racing against time before ANA realized its error. That fare is currently selling for $8,200.

It isn’t the first time an airline has inadvertently sold premium seats at a steep discount.

Cathay Pacific Airways Ltd. accidentally sold deeply discounted first- and business-class tickets from Vietnam to the US back in 2019 for as little as $675 when the normal price would have been as much as $16,000. It too honored those fares. — Bloomberg

India to have 2.9 million more people than China by mid-2023

April 19, 2023 | 4:36 pm

NEW DELHI — India is on its way to become the world’s most populous country, overtaking China with almost 3 million more people in the middle of this year, data released on Wednesday by the United Nations (UN) showed.

The demographic data from the United Nations Population Fund’s (UNFPA) “State of World Population Report, 2023” estimates India’s population at 1,428.6 million or 1.4286 billion against 1.4257 billion for China.

The United States is a distant third, with an estimated population of 340 million, the data showed. The data reflects information available as of February 2023, the report said.

Population experts using previous data from the UN have projected India would go past China this month. But the latest report from the global body did not specify a date for when the change would take place.

UN population officials have said it was not possible to specify a date due to “uncertainty” about the data coming out of India and China, especially since India’s last census was conducted in 2011 and the next one due in 2021 has been delayed due to the pandemic.

Although India and China will account for more than one-third of the estimated global population of 8.045 billion, the population growth in both Asian giants has been slowing, at a much faster pace in China than in India.

Last year, China’s population fell for the first time in six decades, a historic turn that is expected to mark the start of a long period of decline in its citizen numbers with profound implications for its economy and the world.

India’s annual population growth has averaged 1.2% since 2011, compared with 1.7% in the 10 years previously, according to government data.

“The Indian survey findings suggest that population anxieties have seeped into large portions of the general public,” Andrea Wojnar, Representative for UNFPA India, said in a statement.

“Yet, population numbers should not trigger anxiety or create alarm. Instead, they should be seen as a symbol of progress, development, and aspirations if individual rights and choices are being upheld,” she said. — Reuters

China ramps up construction on new Antarctic station – report

April 19, 2023 | 4:36 pm

WASHINGTON — China is increasing its Antarctic footprint according to new satellite imagery collected by a Washington-based think tank that shows construction has resumed for the first time since 2018 on the country’s fifth station in the southern polar region.

Beijing has sought to develop new shipping routes in the Arctic and expand its research in Antarctica, but Western governments worry its increasing presence in the polar regions could provide the People’s Liberation Army (PLA) with better surveillance capabilities.

The new station, on Inexpressible Island near the Ross Sea, is expected to include an observatory with a satellite ground station, and should help China “fill in a major gap” in its ability to access the continent, the Center for Strategic and International Studies (CSIS) said in a report.

CSIS used satellite images taken in January to identify new support facilities, temporary buildings, a helicopter pad, and foundations for a larger main building at the 5,000 square meter (53,820 square feet) station. It is estimated that construction could be done by 2024.

“While the station can provide tracking and communications for China’s growing array of scientific polar observation satellites, its equipment can concurrently be used for intercepting other nations’ satellite communications,” CSIS said.

The station is well positioned to collect signals intelligence over Australia and New Zealand and telemetry data on rockets launched from Australia’s new Arnhem Space Centre, it said. Once finished, the station is expected to include a wharf for China’s Xuelong icebreaker ships.

CSIS told Reuters that while the US still maintains a larger research presence in Antarctica — including the biggest facility in its McMurdo station — China’s footprint is growing faster. China’s fifth station will be 200 miles (320 km) from the McMurdo station, it said.

Under the 1959 Antarctic Treaty, to which China is party, activities on the continent are restricted to “peaceful purposes.” Military personnel are allowed to conduct scientific research, but are banned from setting up bases, carrying out maneuvers, or testing weapons.

A 2022 Pentagon report said China’s new Antarctic infrastructure was likely intended in part to strengthen its future claims to natural resources and maritime access and improve PLA capabilities.

China rejects claims that such stations would be used for espionage. — Reuters

Strikes in Europe could spell more flights havoc into summer

April 19, 2023 | 4:32 pm

PEOPLE walk past a display board showing the list of canceled flights at Frankfurt airport during a nationwide strike called by the German trade union Verdi over a wage dispute, in Frankfurt, Germany, March 27, 2023. — REUTERS

LONDON — Strikes across Europe have led to a spike in flight cancellations, delays and driven down bookings to cities like Paris, data from travel firms show, despite efforts by airlines to avoid a repeat of last year’s disruptions.

Flight cancellations and delays of over three hours in Europe were up over 2022 and 2019 over the Easter holiday weekend from April 5-11, most markedly in France and Britain, according to data from flight claim management firm AirHelp.

“The situation quickly deteriorated as France was sinking into the pension reform crisis. Charles de Gaulle airport is negatively affected, both as a destination and as a hub,” said Olivier Ponti, VP of Insights at travel data firm ForwardKeys.

In France, where air traffic control staff were on strike in recent weeks, 62% of flights were on time, compared with 75% in 2022 and 76% in 2019 before the pandemic brought international travel to a standstill, Airhelp data shared with Reuters showed.

Some 33,300 flights were canceled this year over Easter, compared with 7,800 last year, while 9,000 flights were delayed by more than three hours, compared to 6,800 last year.

Transfers and planned stays through Charles de Gaulle airport in Paris dropped by around 75% compared to 2019 levels by mid-March, according to ForwardKeys.

Paris airports operator Aeroports de Paris estimated on Monday it lost around 470,000 passengers between January and March due to the strikes.

In Britain, border strikes also caused disruption at airports across the country, with airports in London facing the largest delays, according to AirHelp.

Around 73% of flights were on time, compared with 76% in 2022 and 81% in 2019. There were 33,700 flights canceled, compared with 26,600 last year, while 10,800 flights, which made up 1% of all total flights, were delayed by more than three hours, up from 9,500 last year.

PASSENGER RIGHTS PAYOUTS
The ongoing disruptions from prolonged labor strife could lead to escalating costs for airlines that have worked hard to mitigate problems, leading some chief executive officers to call on the European Commission to intervene.

This year’s Easter holiday was seen as a major test of the industry’s ability to cope with the influx of travelers after adding staff.

But there’s a particular worry that continuing strikes might lead to a decline in tourist traffic, which was set to rebound to pre-pandemic levels this summer.

Tickets from Europe to Charles de Gaulle airport fell by 30% compared to 2019 during the week of March 16, ForwardKeys said, although they dropped by only 8% from the United States.

And strikes look set to continue. President Macron on Saturday signed into law a deeply unpopular bill to raise the state pension age, infuriating unions which called for months of mass protests, that started in January this year, to continue.

In Germany, Hamburg Airport has cancelled all departures on Thursday and Friday due to a strike by security control workers called by union Verdi.

Air traffic authority Eurocontrol previously warned that delays could continue into the northern hemisphere summer, especially if strikes keep going.

Ryanair Chief Executive Michael O’Leary said last month that it was a “scandal” that French strikes had blocked many flights over France’s airspace, disrupting services between different countries including the busy tourist market between Britain and Spain.

According to passenger rights rules in Europe, airline customers who face delays of many hours are entitled to compensation, long a sore point for airlines struggling with razor thin margins.

Airlines say airports and other stakeholders need to also pay in compensation to consumers, so the burden isn’t entirely on them. — Reuters

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April 19, 2023 | 4:00 pm

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Financial costs, stigma impede access to mental health services in PHL — study

April 19, 2023 | 3:40 pm

High financial costs and stigma remain significant barriers to accessing mental health services in the Philippines, according to a recent study.

“Local mental health and psychosocial support (MHPSS) providers reported high financial costs of mental healthcare (40%) as the top barrier,” the Harvard Humanitarian Initiative (HHI) said in an e-mailed statement on Tuesday.

The other top five obstacles to accessing mental health care services in the country were related to stigma. These include feeling embarrassed or ashamed (35.9%), worrying about being perceived as “crazy” (31.0%) or weak (30.3%), and concerns about family (23.4%) and societal reactions (22.1%).

The HHI conducted the study last year in cooperation with the Philippine Psychiatric Association and the Psychological Association of the Philippines.

The survey involved 145 MHPSS providers, with the majority being psychiatrists (82.1%) and psychologists (11.7%). These respondents rendered mental health services in various settings, such as private practices (75.2%), public hospitals (44.1%), or private hospitals (39.3%) across different regions, including the National Capital Region (56.6%).

“Most of the respondents (65%) perceived that barriers to access and treatment stigma have decreased since the advent of COVID-19,” the HHI said.

“Most provider testimonials (62.6%) emphasized that the transition to teletherapy ensured care continuity. In some cases, switching to teletherapy allowed for the expansion of services and service areas,” it added.

The majority of the respondents (97.9%) perceived an increase in mental health concerns in the help-seeking population in the Philippines since COVID-19. They likewise observed an increase in anxiety (97.9%) and depressive disorders (97.2%), followed by bipolar and related disorders (49.0%), trauma-related disorders (46.2%), and suicide risk behaviors (44.1%).

Increases in psychotic disorders (24.8%), substance-related and addictive disorders (16.6%), and obsessive-compulsive-related disorders (13.1%), on the other hand, were less frequently reported.

According to the survey respondents, enhancing mental health services in the Philippines requires several measures. These include expanding training programs for mental health providers or staff (82.5%), increasing the number of mental health service providers (75.5%), and improving internet connectivity (72%).

The government should increase funding for mental health (69.9%) and raise awareness about available services (66.4%) to improve mental health care in the Philippines, they said.

“Greater accessibility to mental healthcare services through telehealth create opportunities for providing care for those who may not otherwise seek support because of distance, travel costs, or other similar barriers,” said Vincenzo Bollettino, program director of the HHI Resilient Communities. — Patricia B. Mirasol

Hospitality outsourcing Philippines: Enhancing guest satisfaction and streamlining operations

April 19, 2023 | 3:20 pm

In the increasingly competitive hospitality industry, effective customer experience management is crucial for success. While many hotels and resorts employ new technologies and in-house teams to enhance guest satisfaction, outsourcing front- or back-office functions to the Philippines is emerging as a popular and fruitful option. This approach has proven to be a hidden gem for many in the industry, as it offers a cost-effective way to improve guest satisfaction and boost revenue.

One primary reason the hospitality industry has experienced significant success outsourcing to the Philippines is the country’s extensive pool of highly skilled and well-trained professionals. Many Filipinos are fluent in English (and other languages) and have experience working in customer service or hospitality roles, making them an ideal fit for the industry. The Philippines boasts a strong culture of customer service, which is evident in the outsourcing workers’ high levels of dedication and customer-centric approach.

Ralf Ellspermann, CEO of PITON-Global and renowned expert in hospitality outsourcing to the Philippines, explains, “Customer service, reservations, and back-office operations are common functions that hospitality companies outsource. These services are critical to the guest experience, and outsourcing them enables hotels and resorts to enhance their responsiveness and efficiency while reducing costs.”

“Guests appreciate multi-channel avenues of support, being able to reach out through phone, email, chat, IVR, in-app, or social media, contacting the hotel or resort at any time, regardless of their location. Outsourcing providers using these channels to deliver quick and efficient customer service demonstrably improve guest satisfaction,” Mr. Ellspermann adds.

Research and advisory company Gartner recognizes the Philippines as one of the top destinations for outsourcing customer service and back-office functions. Gartner’s research reveals that the country has a strong track record in providing premium-quality service, a wealth of talented and diligent workers, and labor costs that are typically a fraction of those associated with running an onshore customer service operation.

“Outsourcing customer experience management to the Philippines is a win-win for the hospitality industry. With its substantial pool of talented professionals and a long-standing culture of hospitality, the Philippines is an ideal match for the industry. The cost-effectiveness and enhanced guest satisfaction are the main reasons why an increasing number of hotels and resorts are turning to the Philippines to outsource their front- or back-office requirements. This gem of an approach is becoming more widely recognized by the day,” concurs Mr. Ellspermann.

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TNT’s clever and creative video for SIM Registration goes viral

April 19, 2023 | 3:10 pm

Think missing the SIM registration deadline is no big deal? Think again.

Mobile brand TNT’s new online video takes viewers on a thrilling ride to show just what might happen if you fail to register your SIM before the April 26 deadline.

In the witty and catchy ad, which has gone viral with over 14 million views on TikTok and 8 million views on YouTube in just two days, what starts as a cozy night for a family quickly turns into a nightmare when a stranger appears at their door.

The tension mounts as the son cautiously opens the door to a woman who identifies herself as “09854980233″. The father’s suspicion kicks in, accusing the stranger of being a scammer and urging her to leave. But as the woman persists, the family barricades themselves inside, terrified of what might happen next.

Unable to prove her identity, the woman is found alone and rain-drenched on the sidewalk, despite the fact that she is the family’s actual mother. Watch the video here:

‘Mag-SIM Reg Para Hindi SIM Dead’

The mom’s identity in the TNT video represents her SIM, which she had failed to register and was therefore permanently deactivated. Although delivered in a funny way, TNT sends a strong message about the importance of registering one’s SIM to avoid permanent deactivation and all its hassles.

With your SIM being permanently deactivated, you won’t be able to receive one-time passwords (OTPs) for your banking apps or mobile wallets, and therefore won’t be able to access or use your savings and wallet credits. You also won’t be able to access all the apps linked to your mobile number like your social media apps, messaging apps, and delivery apps, or recover a forgotten password linked to your mobile number.

“As the April 26 deadline for SIM registration approaches, we want to remind our customers of the critical need to register their SIM. Failure to do so will lead to permanent SIM deactivation and therefore disconnection from the digital world we rely on daily,” said Francis E. Flores, SVP and head of Consumer Wireless Business — Individual at Smart.

“TNT has always been fun-loving brand that delivers ‘saya‘ to Filipinos, which is why we thought of coming up with a public service announcement that is both informative and entertaining to effectively show the dangers and hassles that come with failing to register your SIM,” added Flores.

Viewers of the TNT video have praised it for its creativity, effectively convincing them to finally register their SIM. As of April 16, Smart and TNT continue to lead SIM Registration in the country with 35.6 million registered subscribers.

To avoid permanent SIM deactivation, register your SIM in three easy steps. 1. Go to smart.com.ph/simreg or to the GigaLife App available on Google Play and Apple App Store; 2. Input your info and upload your valid ID; and 3. Wait for confirmation and your FREE 3 GB data.

Register with the Philippines’ Best Mobile Network

TNT is powered by Smart, the Philippines’ Fastest and Best mobile network, according to Ookla, the global leader in mobile and broadband intelligence.

Smart is the first and only Philippine mobile operator to win Ookla’s Best Mobile Network award. To get this rare and prestigious citation, Smart won both the Fastest Mobile Network and Best Mobile Coverage awards within Ookla’s Q1-Q2 and Q3-Q4 2022 reporting periods.

To learn more about TNT, follow its official accounts on Facebook, Instagram, YouTube, and TikTok, or visit its official website at tntph.com.

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More Filipinos seen open to buying life insurance products

April 19, 2023 | 2:20 pm

crowd-new-normal-face-mask — PHILIPPINE STAR/ MICHAEL VARCAS

More Filipinos are now willing to get life insurance following the pandemic, according to BDO Life Assurance Company, Inc. Chief Executive Officer Renato A. Vergel de Dios.

“The lesson we’ve learned from the pandemic is that you can go anytime so you better be ready,” he said during a virtual forum on Tuesday.

“Now that we’re normalizing, people are catching up to [that thinking]. It’s not that we’re seeing mass purchasing, but people are more open to it,” he added.

For those who are fairly stable, it has been a good time to buy life insurance. Meanwhile, others are at least considering it more even if they do not end up buying, Mr. Vergel de Dios noted.

“What it does is provide a safety net. That’s why it’s called a Plan B, so that it covers for you when your Plan A fails.”

In 2022, the insurance industry’s combined assets rose 2.14% year on year, with its total net worth also rising12.35%, according to data from the Insurance Commission.

Based on submissions made by 128 out of 134 licensed life and nonlife insurers and mutual benefit associations, the industry’s combined assets, net worth and premiums stood at P2.14 trillion, P445.35 billion, and P379.23 billion, respectively, last year.

BDO Life’s premium income in 2022 reached P19.17 billion, the fifth highest among life insurers, the Insurance Commission said.

Frederico Rafael D. Ocampo, BDO Unibank’s chief investment officer, said that the demand for insurance makes sense given the state of the Philippine economy.

“We saw 7.6% GDP growth in 2022. We’ve become one of the fastest growing economies post-pandemic,” he said.

He added that individuals will need to reassess their investments, especially around riskier types like equities, to ensure they match with one’s investment horizon and risk profile. Meanwhile, life insurance offers financial protection in the event of death.

“One instrument that many often dismiss as unnecessary, but in fact remains essential, to enhance one’s family’s financial security and survival, is life insurance,” said Mr. Ocampo.— Brontë H. Lacsamana

Australia introduces vehicle pollution rules to boost EV uptake

April 19, 2023 | 1:30 pm

electric vehicle — COMPARE FIBRE-UNSPLASH

SYDNEY – Australia said on Wednesday it would introduce new standards targeting vehicle emissions to boost the uptake of electric cars, as it looks to catch up with other developed economies.

Just 3.8% of cars sold in Australia last year were electric, well behind other developed economies such as Britain and Europe, where electric cars made up 15% and 17% of sales, respectively.

The new national electric vehicle strategy will introduce a fuel efficiency standard that will outline how much carbon dioxide a car will produce when running, Energy Minister Chris Bowen said in a news conference.

“Fuel-efficient and electric vehicles are cleaner and cheaper to run – today’s announcement is a win-win for motorists,” Bowen said in a statement.

Details would be finalized in the coming months, he added.

Apart from Russia, Australia was the only developed country to either not have or be developing fuel efficiency standards, which encourage manufacturers to supply more electric and no-emission vehicles.

Transport is the third largest source of carbon emissions in Australia – one of the world’s biggest emitters on a per capita basis. The initiative will help cut the country’s emissions by at least 3 million tons of carbon by 2030, and over 10 million tons by 2035, Bowen said.

The Electric Vehicle Council (EVC) welcomed the move but said Australia must bring in strong standards or “remain the world’s dumping ground for dated, high-emission vehicles,” chief executive Behyad Jafari said.

On average, new cars in Australia use 40% more fuel than the European Union and 20% more than the United States, with studies showing the introduction of a fuel efficiency standard could save motorists A$519 ($349) per year, Bowen said.

Greens party leader Adam Bandt said the government’s strategy needs to accelerate and needs electric vehicle targets as well as the fuel efficiency standards.

CHARGING DEBATE

Demand for electric vehicles is growing in Australia, although supply has not kept up with demand in the absence of incentives for automakers.

Australia‘s center-left Labor government last year flagged plans to introduce new regulations to increase sales of electric cars.

Prime Minister Anthony Albanese, who won power last year on a promise of climate policy reforms, cut taxes for electric vehicles and raised Australia‘s 2030 target for cutting carbon emissions to a 43% reduction from 2005 levels.

The initiatives came after about a decade of inaction under the previous Liberal government, which set Australia behind all its peers.

Former Prime Minister Scott Morrison said in 2019 that policies to reduce vehicle emissions would “end the weekend”, while other critics said it would be a death knell for popular utility vehicles, or utes, used by builders and farmers.

Bowen acknowledged more needs to be done on infrastructure to charge EV cars.

There are about 83,000 EVs on Australian roads and as at December 2022, there were just over 4,900 public chargers located at fewer than 2,400 sites.

“We’re way behind the rest of the world again,” Bowen said in a radio interview later in the day.

“We are fixing that. We’ve got a policy of putting in a fast charger once every 150 kilometers on the highway. I’ll be saying more about that pretty soon,” he said. – Reuters

Fox settles Dominion lawsuit for $787.5 million over US election lies

April 19, 2023 | 1:28 pm

WILMINGTON, Delaware – Fox Corp. and Fox News on Tuesday settled a defamation lawsuit by Dominion Voting Systems for $787.5 million, averting a trial putting one of the world’s top media companies in the crosshairs over its coverage of false vote-rigging claims in the 2020 US election.

The settlement, which legal experts said was the largest struck by an American media company, was announced by the two sides and the judge in the case at the 11th hour.

The jury had been selected earlier in the day and the trial poised for opening statements in Wilmington, Delaware. Dominion had sought $1.6 billion in damages in the lawsuit filed in 2021.

Dominion CEO John Poulos called the settlement “historic.”

“Fox has admitted to telling lies about Dominion that caused enormous damage to my company, our employees and our customers,” Mr. Poulos said in a statement.

“Truthful reporting in the media is essential to our democracy,” Mr. Poulos said.

At issue in the lawsuit was whether Fox was liable for airing the false claims that Denver-based Dominion‘s ballot-counting machines were used to manipulate the presidential election in favor of Democrat Joe Biden over then-President Donald Trump, a Republican.

Tuesday’s settlement spared Fox the peril of having some of its best-known figures called to the witness stand and subjected to potentially withering questioning, including executives such as Rupert Murdoch, the 92-year-old who serves as Fox Corp chairman, as well as on-air hosts Tucker Carlson, Sean Hannity and Jeanine Pirro.

Fox anchor Neil Cavuto broke into his news show “Your World” about 4:30 p.m. Eastern Time to report the settlement. A statement by Fox was read on air.

“We are pleased to have reached a settlement of our dispute with Dominion Voting Systems,” the statement said. “We acknowledge the Court’s rulings finding certain claims about Dominion to be false. This settlement reflects FOX‘s continued commitment to the highest journalistic standards. We are hopeful that our decision to resolve this dispute with Dominion amicably, instead of the acrimony of a divisive trial, allows the country to move forward from these issues.”

FOX HAS BILLIONS IN CASH

Shares of Fox Corp closed up slightly at $34 per share, but were down 1% in after-hours trading following disclosure of the settlement amount. Fox has cash on hand to pay for a settlement. It committed $3 billion to buy back shares in the first quarter after revenues beat estimates. Fox Corp CEO Lachlan Murdoch told Wall Street analysts in February that the company had about $4 billion cash on hand.

Dominion lawyers declined to answer questions about whether Fox News would apologize publicly or make changes.

Fox News is the most-watched US cable news network.

The settlement of $787.5 million is the largest amount of money paid to conclude an American media libel case, said Richard Tofel, principal of Gallatin Advisory. The previously highest payment occurred in 2017 when Walt Disney Co paid $177 million, in addition to insurance recoveries, to settle the “pink slime” defamation case against its ABC network by Beef Products Inc.

Dominion sued Fox Corp and Fox News, contending that its business was ruined by the false vote-rigging claims that were aired by the news outlet known for its roster of conservative commentators. The trial was to have tested whether Fox‘s coverage crossed the line between ethical journalism and the pursuit of ratings, as Dominion alleged and Fox denied. Fox had portrayed itself in the pretrial skirmishing as a defender of press freedom.

Delaware Superior Court Judge Eric Davis, presiding over the case, had ordered a one-day trial postponement on Monday. Fox was pursuing settlement talks, two sources familiar with the matter said. Davis delayed the trial on Tuesday, as the two sides appeared to hammer out the deal in private.

The primary question for jurors was to be whether Fox knowingly spread false information or recklessly disregarded the truth, the standard of “actual malice” that Dominion must show to prevail in a defamation case.

In February court filings, Dominion cited a trove of internal communications in which Murdoch and other Fox figures privately acknowledged that the vote-rigging claims made about Dominion on-air were false. Dominion said Fox amplified the untrue claims to boost its ratings and prevent its viewers from migrating to other media competitors on the right.

ANOTHER LAWSUIT PENDING

Adding to the legal risks for Fox, another US voting technology company, Smartmatic, is pursuing its own defamation lawsuit seeking $2.7 billion in damages in a New York state court.

“For many plaintiffs, a court holding, and admission by the defendant about falsity, are even more important than any actual money damages,” said Mary-Rose Papandrea, a constitutional law professor at the University of North Carolina School of Law.

Fox had earlier argued that claims by Trump and his lawyers about the election were inherently newsworthy and protected by the US Constitution’s First Amendment. Davis ruled in March that Fox could not use those arguments as a defense, finding its coverage was false, defamatory and not protected by the First Amendment.

The lawsuit referenced instances in which Trump allies including his former lawyers Rudolph Giuliani and Sidney Powell appeared on Fox News to advance the false allegations.

Murdoch internally described the election-rigging claims as “really crazy” and “damaging” but declined to wield his editorial power to stop them and conceded under oath that some Fox hosts nonetheless “endorsed” the baseless claims, Dominion told the court in a filing.

Under questioning from a Dominion lawyer, Murdoch testified that he thought everything about the election was on the “up-and-up” and doubted the rigging claims from the very beginning, according to Dominion‘s filing.

Asked if he could have intervened to stop Giuliani from continuing to spread falsehoods on air, Murdoch responded, “I could have. But I didn’t,” the filing said. – Reuters