Airbus promises radical restructuring 4 Oct 2006 Some thought it would take a major crisis to force the European aircraft manufacturer into serious reform. Now it has one. New boss Christian Streiff has grasped the nettle. But it's a big task, cutting costs in a politicised group and keeping the A380 on track.
Airbus infected by Eads’ governance virus 3 Oct 2006 Airbus CEO Christian Streiff wants to push through his restructuring plans. But the board of Eads is split and the plan could be diluted. Airbus problems can t be sorted out without reforming its parent. Airbus must be folded into Eads, and Eads must have only one CEO.
Forgeard’s departure doesn’t go far enough 3 Jul 2006 With Eads s controversial coboss out of the headlines, at least the aerospace giant can get back to business. But it s a shame that the Eads didn t go the whole hog and appoint just one chief executive.
Airbus valuation inexplicably low 3 Jul 2006 An independent valuation of BAE s stake in the aircraft group has come in at least 20% lower than anyone expected. That raises questions about Airbus longterm profitability.
Is Eads’ loss really Boeing’s gain? 23 Jun 2006 Shares of the European owner of Airbus have plummeted amid production delays of its new aircraft, while Boeing has lifted. But this doesn t look justified. Woes at Airbus haven t made Boeing a cent. And it faces possible delays on its own new airplane projects.
UK should join US and Italy on the sicklist 12 Apr 2006 Britain s unemployment rate is rising. So is its trade deficit. And the country imports much more than it exports. The government and central bank have little scope to take remedial action. Eventually, a shock may be required to restore equilibrium.
Ferrovial’s low-ball bid makes tactical sense 7 Apr 2006 By putting a formal, if stingy, offer on the table, the Spanish construction group buys time to negotiate with the UK airport operator. BAA will now have to defend itself. But Ferrovial will still have to be more generous if it plans to win.
Easyjet first big casualty of Icelandic crisis 5 Apr 2006 FL Group sold its 17% stake in the UK budget carrier the same day the Icelandic stock market dove to a 13year low. The Icelandic exit has lopped off the takeover fizz in Easyjet shares. But an end to the uncertainty hanging over the stock is no bad thing.
Ferrovial wins Macquarie backing for BAA bid 29 Mar 2006 That s bad news for the UK airports operator. Not only does it make it more likely that the Spanish will go ahead with a firm offer. But it also removes a potential rival bidder. Even so, Ferrovial still has to raise its bid substantially if it is to stand a chance.
Finmeccanica woos Thales 28 Mar 2006 The Italian defence group wants to inject its E4bn defence electronics business into Thales in return for a big stake in the French group. The political issues will be thorny. But the industrial benefits of creating a panEuropean defence electronics champion would be large.
British Airways partly grasps £2bn pensions deficit nettle 23 Mar 2006 BA s plan to boost contributions and cut benefits will plug much of its whopping pension gap but not completely close it. So its ability to pay a dividend or upgrade its fleet has now improved but by how much is still not clear.
BAA rightly refuses Ferrovial’s low-ball bid 17 Mar 2006 After a five week wait, the Spanish construction firm has come up with a "possible" £8.7bn offer at below BAA's market price. Not that the UK airport operator should just sit back. It needs a good financial defence as Ferrovial may well come back with more.
CAA leaves itself wiggle room on BAA 1 Mar 2006 The UK airport regulator seems to be relaxed about a highly geared bid. It s only concern is that infrastructure investment isn t affected. But Ferrovial isn t in the clear. The CAA has made contradictory remarks suggesting it may take a less liberal approach.
BAE Systems shares now up to speed 23 Feb 2006 The UK defence group has repaired its battered image, its relationship with Whitehall, and its stock market rating. The result is that BAE s shares have doubled in value over the last year. That s well earned but for now, it should be enough.
Qinetiq targets speculative £1.3bn float price 25 Jan 2006 The UK governmentcontrolled defence group would be selling at 20% more than expected if it floats at the top of its price range. That may please critics who accused the government of shortchanging taxpayers. But it will be a tough sell for investors.
Boeing tells story of US industrial slippage 6 Jan 2006 The US company had more orders than Airbus in 2005, for the first time since 2000. It s a modest comeback. But over the aircraft cycle, Boeing has steadily lost ground to its European rival. In the last peak it had 70% share. Now it s 50%.
BAA pays up for £1.3bn Budapest airport 19 Dec 2005 The UK airport operator outbid two rivals by paying 28 times Budapests ebitda or more than double BAA s own multiple. Budapest needs to deliver spectacular growth to make the numbers work.
EADS spreads its wings with Q3 results 9 Nov 2005 Orders for the FrancoGerman group's passenger aircraft are flying in, leading the company to raise its 2005 earnings guidance. But EADS still rightly trades at a discount, thanks to high dollar exposure plus the risk of a politicallydriven acquisition of Thales.
EADS management re-jig stalled by French non 2 Jun 2005 The French government, one of the defence group's major shareholders, wants to reassert itself after a crushing Europe referendum defeat. But a failed attempt by Forgeard, EADS s future joint head, to wrest more control over management underscores the French camp's weakness.
Airbus faces heavy turbulence 1 Jun 2005 The trade war between the US and the EU over aircraft subsidies has come to a head at a bad time for the European aircraft maker. Its currency hedges are running out and US rival Boeing is challenging its lead. Airbus may have more to lose if the WTO outlaws subsidies.