Gatwick auction may face hard landing 20 Feb 2009 Two out of five bidders have withdrawn from the bidding for the UK airport, whose sale may be demanded by antitrust authorities. With finance sparse, other bidders may also withdraw. If that happens, Ferrovial, Gatwick s Spanish owner, will hope the regulators show some mercy.
BA and Iberia ought to find common ground 4 Feb 2009 The UK and Spanish carriers want to merge. But BA s shrinking market capitalisation has complicated discussions over the exchange ratio and governance. A deal that gives BA 55% of the company and clear management control would make sense for both sets of shareholders.
Euro airlines miss cheap oil bonanza 2 Feb 2009 A drop of more than 50% in a year in a major expense should be a big help. No such luck. Poorly timed hedges and the strong dollar have exacerbated the fall in traffic. For European airlines, 2009 looks grim. But lowcost carriers Ryanair and Easyjet should have a better time.
Heathrow runway comes with welcome safeguards 12 Jan 2009 Few like the idea of more planes over London. But in approving a new Heathrow runway, the UK government has made important concessions to the environmental lobby and its own dissidents, including a limit on flight numbers. Expansion might also make Heathrow more efficient.
Alitalia farce gets fitting end with Air France deal 12 Jan 2009 The relaunch of Italy s shambolic national carrier is close. A reborn Alitalia is due to take off with Air France having paid a hefty premium for a 25% stake. Berlusconi and Roberto Colannino, the airline s restructuring guru, are clear winners. The loser? The Italian taxpayer.
BA/Qantas crash dents hope for all-share deal boom 18 Dec 2008 Talks between the airlines on a merger of equals are off for the foreseeable future. The uncertain business outlook makes managers wary about bold moves. BA is still in talks with Iberia. But while defensive sharebased mergers make sense in a downturn, pulling them off is hard.
Finmeccanica looks protected in bad times 18 Dec 2008 The Italian defence company is proving defensive. It will probably pocket most of the nearly E1bn the Italian government wants to spend on defence R&D. It also recently secured an important UK contract. Boss Guarguaglini s stated confidence in 2009 looks justified.
Bankers’ new worry: bond-for-debt swaps 17 Dec 2008 Metals trader Glencore may draw down a line of credit to buy back its own bonds at a discount. That s a neat trick for companies with lines of credit they are sure won t be needed. For banks, bondfordebt swaps add to the strain on already overloaded balance sheets.
BAA faces tricky Gatwick sale 15 Dec 2008 There s only one thing worse than having to sell a London airport in these market conditions having to sell two of them. But that s precisely what BAA may be forced to do. Ferrovial, which controls the airport operator, doesn t have much room for manoeuvre.
BA’s pension hole shouldn’t be a deal breaker 10 Dec 2008 The UK airline s suitors, Qantas and Iberia, are moaning about its pension deficit. The issue is complex. But all sides ought to be able to agree on how to quantify the problem. Finding common ground on softer issues in particular governance will be harder.
BA deals will test Willie Walsh’s negotiation skills 3 Dec 2008 The British Airways boss is weighing up airline deals with Iberia and Qantas. Both could be good transactions, although the synergies from Iberia are juicier on paper. But much depends on the terms of any combination. Walsh has some tough negotiations ahead.
Qantas widens BA’s options 2 Dec 2008 The Australian carrier has tapped up its UK peer for a possible deal. Whether or not it happens depends on the terms Qantas offers. BA's option of a deal with Iberia isn t off the table, yet. And BA is also talking to American. BA must not squander these opportunities.
Lufthansa hedges its Italian bets 28 Nov 2008 The German airline has been in the running for a 20% stake in whatever Alitalia turns into. But now Lufthansa is launching its own airline in northern Italy. It says this doesn t rule out an Alitalia investment. But the DIY approach may turn out to be the better option.
UAE consolidation hopes are premature 25 Nov 2008 The scrunching of Dubai s struggling mortgage lenders into a UAE institution is the country s first large crossemirate deal. But this was a crisis. The notion that Dubai s more attractive assets are also about to feel Abu Dhabi s embrace is farfetched.
BAA pre-empts a break-up with Gatwick sale 17 Sep 2008 The regulator was expected to make the UK airports operator sell its second largest asset. BAA has moved first, taking control of the process. The list of buyers may be long. But turmoil in financial markets and regulatory uncertainty will make this a tricky deal.
Boeing should avoid making Big Three promises 4 Sep 2008 A strike would threaten production, including of the muchdelayed Dreamliner. With orders flowing amid stilllimited competition, Boeing may be tempted to offer more healthcare and other benefits. But as Detroit learned, longterm commitments are dangerous.
Ferrovial forced to dig deeper for BAA refinancing 9 May 2008 The Spanish construction group and its coinvestors will have to fork out another £400m of equity to support a mammoth £10bn refinancing of BAA debt. Even this may not be enough to win over some hedge funds. But the good news is that the refinancing might now actually get done.
BA makes a hash of Terminal Five debut 28 Mar 2008 It s tricky to open such a big project without problems, even after months of rehearsals. But the shambolic first day of the new British Airways terminal at Heathrow is deeply embarrassing for the UK airline. The fiasco couldn t come at a worse time for Heathrow s owner, BAA.
Open Skies should strengthen Heathrow’s leadership 27 Mar 2008 The landmark transatlantic air treaty goes into effect on March 30. Its main impact will be in London. Despite congestion and Terminal 5 teething problems, Heathrow will gain additional US flights and increase its lead over rivals such as Paris.
Making money down Mexico way 19 Mar 2008 Mexico has been one of the few safe havens from plunging stock prices and the collapsing dollar. It's also a relatively cheap destination for cashstrapped American holidaymakers. That bodes well for Mexico's listed airports and their savvy shareholders.