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Today’s news briefs include China banning foreign adoptions; Volvo abandoning electric car goal; and US airlines srutinized over their frequent flyer programs.
Government questions airlines over loyalty programs
The four largest U.S. airlines are being asked to explain their frequent-flyer programs after consumers continue to complain about how they routinely change. Questions over how points are devalued, limited seating and changing amounts to achieve a free ticket top concerns. American, Delta, Southwest and United have received letters fr om the Department of Transportation asking each for a report on policies, fees and other features in question. According to the AP, “Frequent-flyer programs were once based on the number of flights taken or miles flown. In recent years, however, they have been fueled by spending that consumers conduct using airline-branded credit cards. Income from the credit-card issuers has become an important source of airline revenue.
China bans foreign adoptions
China is banning most foreign adoptions of its children to avert a looming demographic crisis. Its Foreign Ministry announced the only exceptions are Chinese families adopting children or stepchildren of blood relatives, reports CNN. “This is in line with the spirit of relevant international conventions,” the ministry’s spokesperson Mao Ning told a news conference. “We are grateful for the desire and love of the governments and adoptive families of relevant countries to adopt Chinese children.” Of the tens of thousands adopted over the last 30 years, half arrived in the United States. The availability of children was driven by Chinese girls who were abandoned or taken to orphanages under China’s One Child policy. In 1999, 98% of all American adoptions involved Chinese girls.
Volvo abandons electric car goals
Automaker Volvo has ditched its target to produce only fully electric cars by 2030, reflecting plummeting global demand. Instead of producing only EV vehicles it expects to sell just “some” hybrid vehicles by that date, according to the BBC. “The carmaker blamed changing market conditions for its decision to give up a target it had announced only three years ago.” It comes as the industry faces a slowdown in demand in some major markets for electric vehicles (EVs) and uncertainty due to the imposition of trade tariffs on EVs made in China. In May, Bloomberg reported on the low demand stating, “Sales were flat in the first quarter, Ford dramatically scaled back expansion plans and Tesla laid off 10% of its global workforce.”
–Dwight Widaman and wire services
