Ryanair posts record profit 2 Aug 2005 If airlines are going through a difficult patch, someone forgot to tell Ryanair. Its net profit was up 21% in the quarter. Soaring oil prices appear to be driving more passengers towards the Irish nofrills carrier, so operating margins are holding up for now.
Thatcher’s bovver boy dies 13 Jul 2005 Lord King s amazing turnaround at British Airways in the 1980s is part of the folklore of privatisation. He was at the forefront of a trend that, warts and all, has transformed the world for the better.
British Airways goes for it with surcharges 28 Jun 2005 BA is taking a risk with a higher surcharge than rivals to cover fuel costs. Given its stiff margin targets, it may not have a choice. So far the gamble has paid off perhaps because customers haven't figured out what it's up to. That may well change.
EU airlines rush to sell shares 7 Jun 2005 Oil prices are skyhigh and consumer spending is under pressure. It seems an odd moment for airlines to tap the markets. Why are they doing so? The industry is finally dealing with the backlog of privatisations and IPOs that built up over the past four years.
At least some investors hopeful about US airlines 23 May 2005 First, United dumped its pension liabilities. Now America West and US Air plan to merge, with private equity coinvesting in the deal. That s a rare dose of optimism in the industry. But the investment may have been made because there is little downside.
Lufthansa circles closer to Swiss rescue 14 Mar 2005 The Swiss still don't really want the Germans to take control of their national airline. But they don't have much choice. Swiss is still losing bucketloads of money, and its attempt to tie up with British Airways fell through last year.
EU wants right to get into US airline business 4 Mar 2005 The EU's old negotiating goal was the right for its airlines to fly within the US. Now it wants full foreign ownership. The EU is keen to support an unprofitable industry. But US nationalism may deprive it of this opportunity to lose money.
Ryanair expands routes with E3bn Boeing order 24 Feb 2005 Instead of the budget airline "bloodbath" that chief Michael O Leary warned about, Ryanair is further expanding its capacity. The irony is that one of the companies that has done most for European integration is doing so with US planes.
Ryanair revels in other airlines’ problems 31 Jan 2005 Ryanair has gained from the collapse of other low cost carriers, and fuel surcharges and higher ticket prices among national carriers. This supported yields during the third quarter. Most important, though, was the remarkable surge in other revenues.
Lufthansa tries to wriggle out of BMI put option – report 25 Jan 2005 Were the German airline to do that by selling its stake in BMI, it could restart merger talks between Virgin and BMI. But it's not clear that Lufthansa really needs to sell; nor that it is in BMI's interests to exercise the option.
Amadeus turned down higher offer 13 Jan 2005 The travel reservations firm shunned a bid from Citigroup Venture Capital even though it was 9% higher than the E4.4bn price it accepted. Why it chose the lower offer is not clear. But it sets a poor precedent for the private equity boom many believe is coming in Spain.
LBO bubble inflates Amadeus bid battle 5 Jan 2005 The private equity boom has pushed up sellers price expectations for the global travel reservations firm to almost E5bn. Does this mean a private equity house is about to get burnt? Possibly, although at least one of the bidders has a plausible strategy.
MyTravel agrees restructuring with bondholders 20 Dec 2004 Both sides have decided that it's in their interests to come to a compromise rather than engage in further litigation. That's understandable. Yet it is a fudge that leaves the legal status of subordinated debt unclear.
France slashes stake in Air France 9 Dec 2004 Investors should welcome the deal, so the shares ought not to be hit too hard by the sale of such a large slab of stock. The French government will reduce its stake in the airline by more than half, if Air France staff accept pay cuts in return for shares.
Deutsche uses M&A to fund a bought deal 1 Dec 2004 The investment bank has made a loss on its placing of TUI shares on behalf of WestLB. But that may not be a problem. By arranging a strategic buyer for a similarsized tranche of TUI stock, it ought to have made a turn.
MyTravel ruling removes bondholder nuisance value 25 Nov 2004 In approving the travel group's contested debt swap, the judge has preserved value and contributed to more efficient capital markets. The ruling sets a precedent for valuing UK subordinated debt. If there is no economic recovery value, there is no nuisance value either.
Easyjet faces growing low-cost competition 23 Nov 2004 Overinvestment in the sector has bred overcapacity, which in turn has sapped profitability. Every day, the European low cost carrier boom looks more like the hightech boom that preceded it.
MyTravel bondholders get unorthodox threat 4 Nov 2004 The group will try to transfer its assets, but not all of its liabilities, to a shell company if the bondholders don t write down debts. Both sides may be playing hardball. But this controversial tactic would certainly set a dangerous precedent.
Investors bet on E4bn Amadeus takeover 4 Nov 2004 Shares in the global travel bookings firm have surged by almost a third since it sent out information to potential private equity bidders. That suggests it is a done deal. It isn t. Apart from the risks particular to this deal, there are the usual generic ones, including price.
Ryanair surprises with upbeat outlook 2 Nov 2004 The share price of the nofrills carrier has surged. But that doesn t mean the outlook for the sector is any better. The coming winter will still be one of discontent for the industry with Ryanair revelling in the misery of its rivals.