:00:00. > :00:00.to visit the base from where the search for flight MH370 is based.
:00:00. > :00:27.Misery for the guns are's passengers. 3800 flights are
:00:28. > :00:32.cancelled as pilots strike over pay. And, called offshore gas discoveries
:00:33. > :00:39.outside Cyprus help solve a long`running territorial dispute?
:00:40. > :00:52.Hello, and welcome. You with World Business Report, IM bundle. The boss
:00:53. > :00:57.of Intel is in China, hoping to get new business. As you have been
:00:58. > :01:03.hearing from Tim, it is very bad luck for Lufthansa. A three`day
:01:04. > :01:07.pilot strike stars today, with nearly 4000 flights being cancelled.
:01:08. > :01:12.This is a headache Germany's biggest airline could do without. It will
:01:13. > :01:18.hit them where it hurts, in the pocket. They stand to lose tens of
:01:19. > :01:32.millions of euros. The union running the strike represents almost all of
:01:33. > :01:40.the guns are's 5400 pilots. `` Lufthansa's. Lufthansa usually
:01:41. > :01:45.operates just over 4000 flight, but only 500 short and long haul flights
:01:46. > :01:54.will run. Last night, they seem to be some willingness to negotiate. We
:01:55. > :01:57.are ready to talk. There was an offer and now we need to start
:01:58. > :02:02.talking about the offer in order to understand the different decisions.
:02:03. > :02:08.We really hope that after the strike, or even during the strike,
:02:09. > :02:13.negotiations can begin again. TRANSLATION: This strike can be
:02:14. > :02:22.avoided at any time. Lufthansa must present a good offer, which is good
:02:23. > :02:26.enough for us. How has it come to this? It seems to have blown up with
:02:27. > :02:36.startling speed and severity. I am joined by John Strickland. How did
:02:37. > :02:38.we get to this point? Lufthansa's management has been trying to cut
:02:39. > :02:43.costs over recent years, which has meant permanent cost changes because
:02:44. > :02:54.of the tough operating environment. This is a time when we have the
:02:55. > :02:59.current leader is leaving. The airline has to cut costs, because it
:03:00. > :03:07.is facing shortfall competition from low`cost carriers around Europe, but
:03:08. > :03:16.also other airlines from places like the Persian Gulf and Asia. Everyone
:03:17. > :03:19.has to share the pain, but the airline is not sufficiently
:03:20. > :03:23.profitable for the long`term. Had you think it will play out? It will
:03:24. > :03:29.lose its flights in the next few days, but after the strikes, it will
:03:30. > :03:38.hit them on the bottomline to the June of maybe 30 million euros. That
:03:39. > :03:41.is not what the airline needs at a time when it is trying to improve
:03:42. > :03:46.its financial position. This is an airline that has 300 new aircraft on
:03:47. > :03:50.order, which is another reason why it has to have strong financial
:03:51. > :03:53.resources. There may be further negotiation, but whether they can
:03:54. > :03:58.avoid future strikes remains to be seen. Are there lessons to be learnt
:03:59. > :04:04.with what Willie Walsh went through with British Airways? Or for the new
:04:05. > :04:13.chief executive who has just got the job. They have both been former
:04:14. > :04:17.airline pilots, and while they are known as tough negotiators, for
:04:18. > :04:22.British Airways they encountered cabin crew strikes, and that Iberia
:04:23. > :04:25.where they had pilot strikes, he tough it out. In the case of British
:04:26. > :04:32.Airways, it is interesting to draw the comparison. When the airline
:04:33. > :04:40.changed conditions for their pilot, their pilots engaged in an
:04:41. > :04:44.accounting firm to audit their requirements, and they subsequently
:04:45. > :04:47.given strike. There has to be a toughing out. There has to be a
:04:48. > :04:52.method of getting across the communication, some kind of an
:04:53. > :05:00.answer of why this is. Now that he wants to take pain, but it is about
:05:01. > :05:07.the well`being of the future of the airline. It is a story we are
:05:08. > :05:14.keeping a very close eye on. Let's move on, because the Cypriots energy
:05:15. > :05:17.minister has been telling us that his country's offshore gas
:05:18. > :05:20.discoveries may give Turkey a powerful incentive to agree a
:05:21. > :05:25.settlement over its long`standing occupation of Northern Cyprus. The
:05:26. > :05:31.two leaders met earlier this week and urge you to meet again later.
:05:32. > :05:35.Gunships in the waters around Cyprus have so far discouraged potential
:05:36. > :05:44.investors in Cypriots gas. From the capital, our reporter has this
:05:45. > :05:49.story. A bailed out EU state that has to
:05:50. > :05:55.bring in most of its energy, and the idea of becoming a gas hub is
:05:56. > :06:00.beguiling. It initially promising gas field was named after Aphrodite,
:06:01. > :06:03.the mythical goddess of beauty. Cypriots are quite fixated by
:06:04. > :06:08.maintaining their energy supplies, ever since the huge explosion ripped
:06:09. > :06:13.through the electricity plant serving 60% of the entire country.
:06:14. > :06:17.Nobody is pretending that the new Aphrodite gasfield is going to solve
:06:18. > :06:21.the country's energy problems, but it could open the door to some new
:06:22. > :06:28.industries, maybe in petrochemicals or even manufacturing. The energy
:06:29. > :06:33.minister seems to be downplaying recent talk of close work with
:06:34. > :06:38.Israel, says the next steps may shake unification talks. The
:06:39. > :06:43.strategy that the Cyprus government has select it is the onshore LNG
:06:44. > :06:49.terminal. That might be an expensive investment, but it offers
:06:50. > :06:53.significant flexibility in terms of shipping to the best markets
:06:54. > :06:59.worldwide. Next summer, when the other two companies that have been
:07:00. > :07:09.licensed to operate in Cyprus waters, are going to start their
:07:10. > :07:14.operations as well. A man who is advising them on their gas project
:07:15. > :07:18.says much must be resolved. The first thing that has to be overcome
:07:19. > :07:22.is building a pipeline back to Cyprus itself. That is not easy to
:07:23. > :07:26.do, the water is about 5000 feet, and the bottom is a series of
:07:27. > :07:31.canyons. It is a difficult area to build pipelines. The second problem
:07:32. > :07:35.they have is that it is not that big. The Aphrodite field is now
:07:36. > :07:42.about 4 trillion cubic feet, which is marginal for a development, and
:07:43. > :07:45.LNG development, so maybe they have to find some other things in the
:07:46. > :07:50.area that they have to develop alongside it. Cyprus has a sovereign
:07:51. > :07:56.wealth fund to travel revenue `` channel revenue, but until more
:07:57. > :08:04.fields are proven, it really doesn't know what riches lie beneath its
:08:05. > :08:09.waters. The chief executive of Intel is in China today, hoping to drum up
:08:10. > :08:17.new business. Let's go to Rico Hizon in Singapore.
:08:18. > :08:23.When you take a look at the strategy of Intel, it basically wants to
:08:24. > :08:27.expand its footprint in China and increase market share. In terms of
:08:28. > :08:31.setting up this $100 million fund, it wants to accelerate innovation of
:08:32. > :08:36.smart devices by working closely with Chinese makers in the
:08:37. > :08:42.development process and install its processes into more locally made
:08:43. > :08:48.computers and devices. The CEO said the fund hopes to get Chinese
:08:49. > :08:52.companies to develop two in one hybrids. Those are tablet laptops,
:08:53. > :08:58.tablet smart phones, which it hopes will make up for slowing PC markets.
:08:59. > :09:03.Through its regional design market, Intel wants to look at
:09:04. > :09:10.manufacturers, resources such as software to help them get into
:09:11. > :09:14.products. Intel has made some substantial investments in China
:09:15. > :09:20.since 1998, putting more than $670 million in 110 mainland companies.
:09:21. > :09:22.That is with the hope that they will be able to expand their market share
:09:23. > :09:33.in China. GlaxoSmithKline has announced a
:09:34. > :09:37.product recall after the food and drug administration published a
:09:38. > :09:45.warning letter over contamination at its Irish plant. The FDA said that
:09:46. > :09:52.last October and FDA inspector found that an antidepressant was
:09:53. > :09:57.contaminated with material from the pharmaceutical waste tank. The
:09:58. > :10:03.company has a limited time to respond to the level.
:10:04. > :10:10.BP has closed a refinery in Brisbane due to more cost`effective efforts
:10:11. > :10:14.in Asia. That is all from World Business
:10:15. > :10:19.Report. All the Asian markets are higher, and positive news from the
:10:20. > :10:31.US about its economy. I will see you soon, as we look through the papers.
:10:32. > :10:39.Structural checks are to be carried out on schools in Edinburgh after a
:10:40. > :10:45.12`year`old pupil was killed in `` when a wall collapsed on top of her.
:10:46. > :10:48.A statement released by the city of Edinburgh Council said the incident
:10:49. > :10:49.involved a freestanding modesty wall in a