Air Transportation

Chevron makes bet on being last man standing

12 January 2021

Mike Wirth, the $180 billion energy firm’s boss, thinks oil demand will stay strong. That contrasts with rivals like BP, which sees production down 40% by 2030. Chevron has the advantage of size. But plans to outlast or acquire rivals are risky in a rapidly evolving industry.

Infrastructure funds get case of private jet envy

11 January 2021

GIP has outgunned rival Blackstone with a $4.6 bln bid for Signature Aviation, offering a 51% premium for the aircraft servicer. Catering to the flying habits of the mega-rich is hardly a stable business, though, and private aviation faces climate-change clouds on the horizon.

“Big Four” U.S. airlines will go down to three

4 January 2021

Stricken travel is worsening carriers’ positions. They’ve already slimmed staff, and restructuring is next. But U.S. taxpayers are invested in them succeeding, and have already benefitted from a long descent in ticket prices. A merger stamped by the government is on the horizon.

U.S. airlines need rules as well as rescues

17 December 2020

They could get another $17 billion if Congress approves a new relief bill. Since American Airlines and its peers merit taxpayer rescues, bailouts ought to come with tighter strings. That could mean limits on debt, or ensuring they have enough cash to remain aloft for longer.

Corona Capital: Private jet deal

17 December 2020

Concise views on the pandemic’s corporate and financial fallout: Blackstone bets that plutocrats will be back in the air before the rest of us.

Corona Capital: Gaming M&A, Beauty’s bold face

9 December 2020

Concise views on the pandemic’s corporate and financial fallout: Consolidation in video games reaches the next level as Sweden’s MTG buys Hutch Games for $375 million; and Spanish cosmetics, fashion and perfume group Puig predicts revenue will double by 2023.

Corona Capital: Chevron, Boeing, OPEC, Orange

3 December 2020

Concise views on the pandemic’s corporate and financial fallout: Chevron cuts spending, prudently; Boeing orders are a solid step; OPEC makes up its mind; and Orange’s Belgian deal has some juice.

Corona Capital: Skis, Italian banks, Dividends

26 November 2020

Concise views on the pandemic’s corporate and financial fallout: Europe’s hopes for a common ski policy hit a mogul; Italian lender Credito Valtellinese faces a lonely bidding war; Aviva’s payout cut is less stingy than it looks.

Corona Capital: Cash stockpiles, Empty real estate

23 November 2020

Concise views on the pandemic’s corporate and financial fallout: U.S. companies hoard money; retailer rout causes real estate double whammy.

Corona Capital: Vaccine storage

16 November 2020

Concise views on the pandemic’s corporate and financial fallout: Warehouse centers get another boost with Moderna’s vaccine prospects.

Corona Capital: Salvatore Ferragamo

10 November 2020

Concise views on the pandemic’s corporate and financial fallout: Faded heels-and-loafers brand Salvatore Ferragamo could benefit from a coronavirus vaccine-induced return to airport shopping, but the Florentine fashion house would still need a makeover.

Corona Capital: Warren Buffett, Burger boost

9 November 2020

Concise views on the pandemic’s corporate and financial fallout: Rising share prices take the sting out of Berkshire Hathaway’s Covid-19 profit hit; and McDonald’s reports a good quarter for American nugget-lovers.

Corona Capital: GM earnings, Third-quarter readout

5 November 2020

Concise views on the pandemic’s corporate and financial fallout: General Motors swerves around Covid-19 potholes; and U.S. companies look to have emerged from a difficult three months in better shape than expected.

Corona Capital: Netflix price hike

30 October 2020

Concise views on the pandemic’s corporate and financial fallout: The streaming-video service hiked the price on subscriptions as binge-watching booms during the pandemic.

Corona Capital: Drugmaker’s pick-me-up, Golf M&A

28 October 2020

Concise views on the pandemic’s corporate and financial fallout: Drugmaker GSK sees a recovery in vaccinations against old-school ailments; meanwhile Covid-19 turns out to be a handy driver when it comes to golf-related dealmaking.

Off-colour IAG points to prolonged air-sickness

22 October 2020

The owner of British Airways lost 1.3 bln euros in the third quarter. Rising infections and new lockdowns mean the next three months will be little better, dashing new CEO Luis Gallego’s hopes of breaking even by Christmas. He won’t be the only airline boss feeling queasy.

Cathay is still overweight after layoffs

21 October 2020

Hong Kong's flagship airline will cut 8,500 jobs and ditch its Cathay Dragon brand. That's less aggressive than some other carriers, although shareholders took it well. The cuts will only slow the cash burn rate to around HK$1.5 bln per month. More savings will have to be found.

Boeing has got a bigger than MAX problem

16 October 2020

Europe’s aviation regulator said the troubled 737 is safe to fly, sending the $92 bln aircraft producer’s shares up 5%. Even when sales return, ongoing reductions of flight schedules due to Covid-19 will make Boeing’s woes linger. There’s a chance they become permanent.

Corona Capital: Kazakhs, Norwegians, Airlines

15 October 2020

Concise views on the pandemic’s corporate and financial fallout: Kaspi gives ECM bankers something to smile about; Norway’s sovereign wealth fund has a so-so third quarter; and United Airlines has more bad news on jobs.

Corona Capital: Black Friday, JPMorgan’s new tower

14 October 2020

Concise views on the pandemic’s corporate and financial fallout: Walmart’s Black Friday rejig makes for a curious experiment; JPMorgan goes all-in on New York real estate.