Ferrovial could gear BAA to the hilt 13 Feb 2006 Given BAA's utilitystyle cashflows, Ferrovial could borrow £12bn against it close to the £14.6bn they'd need for a 900p a share offer. True, BAA's costly expansion plans could be a problem. But Ferrovial's seasoned financial engineers could park these offbalance sheet.
BAA gives in on bond deal 10 Feb 2006 In agreeing to insert a changeofcontrol clause into its recent E2.9bn bond, it may seem that the group is selling shareholders short. But the bondholders have been able to argue that Ferrovial s leveraged approach to BAA gave them the ability to wriggle out of the deal.
BAA shouldn’t change its E2.9bn bond deal 10 Feb 2006 Bond investors are up in arms because Ferrovial s highly leveraged approach to BAA has caused bonds to fall in value. They now want a change of control clause inserted into the deal, but doing so would be a poison pill that isn t in shareholders interest.
Ferrovial mulls ballsy £8.5bn BAA bid 8 Feb 2006 It won t be easy for Spanish construction group to have its way with the UK airports group. BAA won t go down without a fight. And Ferrovial will need to find friends with deep pockets to foot the bill.
UAL’s return to the market could hit turbulence 2 Feb 2006 UAL s shares have recently traded at almost three times its bankruptcy valuation. But at this price, the airline is valued at a premium to its peers. It will have a hard time justifying it.
Alitalia bankruptcy a pipe dream 24 Jan 2006 Italy s labour minister says bankruptcy may not be a disaster for Alitalia. He is right. In most industries, Alitalia would have been sold or shuttered years ago. But that won't happen while the government keeps writing cheques.
Bankrupt US bosses enjoy big paydays 24 Jan 2006 UAL's will share $480m when the airline exits Chapter 11. That appears repugnant yet bosses deserves a premium for staying put. The trouble is that it has to be paid on top of the already excessive levels of executive compensation at US companies.
Don’t rule out a bid for Easyjet 10 Jan 2006 Easyjet shares may be at 400p, but the Icelandic group stalking the budget airline could pay more than 500p without destroying value. That might not get Stelios dashing for the exit, but the board would find it hard to ignore if minorities were keen.
BA’s management cull may not win unions over 30 Nov 2005 New broom Willie Walsh is cutting 50% of top managers in a bid to achieve the holy grail of a 10% operating margin. It's certainly symbolic. But it will still be hard to persuade the unions to accept compulsory redundancies among the workers.
Alitalia rights issue offers sure-fire profit 15 Nov 2005 Surely some mistake? But no, it is possible for investors to profit from an arbitrage between the prices of nilpaids and shares. Normally professional investors would close this gap like a shot. But this time, they seem to be steering clear.
Alitalia squeaks out unwanted rights issue 11 Nov 2005 The Italian airline looks to have scaled back the size and price of its offering to the minimum to push it out of the door. Even now it could still be a stretch. The nominal discount may look huge, but the real position is much less comfortable.
Time to turn off Alitalia’s cash incinerator 31 Oct 2005 The Italian airline has destroyed mountains of capital in the last seven years. The culprits? Italy s politicians. The latest cashraising plans talk of reform. But Rome is unlikely to change. Brussels should say boo to this goose.
BA’s new boss needs to focus on efficiency 30 Sep 2005 Willie Walsh's key task is to manage the airline s move to Heathrow s Terminal Five. The potential efficiency gains from this move are huge. Walsh s reputation hinges on whether he can capture them.
Aircraft industry booming despite airline woes 26 Sep 2005 While two more US airlines file for bankruptcy, aircraft makers Boeing and Airbus enjoy nearrecord order books. Why the disconnect? Rising aircraft prices and lease rates are luring financial investors into aircraft finance. But that can't last forever.
US shouldn’t buckle to bust airline pension demands 19 Sep 2005 Delta and Northwest want the government to allow them up to 20 years to make good their $16bn combined pension deficits. That would just delay the day of reckoning, meaning a bigger tab when the government's own pension agency finally has to clean up the mess.
Branson to build $2bn oil refinery 14 Sep 2005 Fed up with soaring fuel prices, the entrepreneur says he is taking matters into his own hands. But Branson s latest plan if ever implemented probably won t solve his fuel bill problem.
TPG avoids Gate Gourmet fallout 25 Aug 2005 For all the mudslinging in the Gate Gourmet saga, very little has landed on the catering company s private equity backers. That may be because TPG isn't a novice with tricky situations. But private equity will have to be increasingly careful to avoid a backlash.
BA throws a lifeline to Gate Gourmet 24 Aug 2005 British Airways has agreed a more generous contract with its beleaguered caterer, provided it resolves its dispute with the unions. This may seem like a charitable move. But the reality is that BA has few cards to play.
Airline investors lulled into false security 15 Aug 2005 Airline shares are up across the board mainly because travellers have so far taken fare increases on the chin. But that might not last. If the oil price stays high, and airlines continue with their expansion plans, investors may be in for a rude awakening.
British Airways union fires a warning shot 12 Aug 2005 It has seized a flimsy pretext to launch the airline's third wildcat strike in as many summers. The union's real agenda may be to flex its muscles ahead of the arrival of new chief executive Willie Walsh.