HNA’s Hong Kong spat is a sign of worse to come 9 May 2019 The indebted Chinese conglomerate is stuck in a bizarre boardroom brawl at Hong Kong Airlines. The sight could lead buyers to demand steeper discounts as HNA unwinds a $50 bln acquisition spree. Creditors like China Development Bank have cause to be anxious.
Qantas captain flies into risky tenure territory 8 May 2019 Alan Joyce agreed to serve as CEO of the $6 bln Aussie airline for another three years. He’s young and has led an impressive turnaround over the past decade, but problems often pile up for bosses who stick around too long. Succession should be atop the Qantas board’s to-do list.
Aviation is acid test for UK climate credibility 7 May 2019 Britain’s proposal for zero net carbon emissions by 2050 is laudable. But given it’s already struggling to hit a less ambitious goal, success implies tough state action. One way to tell if the UK is serious is if it ramps up taxes that curb customer demand for air travel.
Air France-KLM descent is double Dutch blow 3 May 2019 The airline’s Dutch arm swung to a first-quarter operating loss, weeks after the Netherlands government bought a 14 pct stake. KLM is still faring better than its French partner. But the wobble undermines demands for special treatment and leaves its political backers red-faced.
Thomas Cook survival relies on risky breakup 23 Apr 2019 The indebted UK tour operator’s shares jumped on reports it could be bought by Chinese group Fosun or private equity. Either would likely see the group sell its airline, making it hard to get a good price. And the rump that remains would be even more challenged.
India’s Jet Airways is too frail to fail 11 Apr 2019 Planes are grounded, but a bankruptcy of the country’s once-top private carrier is unthinkable, especially as the nation votes. Related job and bank losses would be politically toxic. Even a well-structured out-of-court deal could yet leave New Delhi with a second state airline.
Delta climbs clear of rivals’ 737 MAX woes 10 Apr 2019 Selling more premium seats helped the $39 bln airline to a strong first quarter. With American, Southwest and even United constrained by the grounding of Boeing’s new jets, Delta’s Airbus fleet positions it nicely to take further advantage of a booming travel market.
Crash findings keep Ethiopia reform dreams intact 4 Apr 2019 An early probe into Ethiopian Airlines’ March 10 disaster found the company’s pilots were not to blame. That’s a double relief for Prime Minister Abiy Ahmed. With the flag carrier central to his privatisation push, internal failings could have stymied wider plans for reform.
Brexit gives easyJet handy excuse for summer blues 1 Apr 2019 The low-cost airline blamed political turbulence in Britain for weak passenger demand. Anaemic euro zone growth is probably a bigger culprit. With fuel costs rising and air-traffic disruption still likely, easyJet will struggle to repeat last year’s high-flying performance.
Crash report clarifies Boeing’s 737 exposure 29 Mar 2019 Officials think a suspect anti-stall system activated before last month’s airliner crash in Ethiopia, the WSJ reported. That raises the plane-maker’s legal liability. But it also makes it clearer how to fix the problem and get the bestselling jet back in the sky.
Cathay’s budget-airline deal may add HNA surcharge 28 Mar 2019 Buying Hong Kong Express from the ailing Chinese conglomerate for $630 mln is a sensible defensive move. One investor – maybe the target’s own chairman – has threatened to fight the sale, however. That could raise the price for Cathay, and is a warning to suitors for HNA assets.
Hadas: Boeing undermined by too-positive thinking 27 Mar 2019 The aircraft maker’s hasty introduction of new software may have led to two fatal crashes. If so, the problem was probably not greed or lack of concern for safety, but something just as dangerous: overconfidence. As global banks learned in 2008, the worst sometimes does happen.
Kuala Lumpur can give up Malaysia Airlines 21 Mar 2019 The flag carrier has been losing cash for years. Now Premier Mahathir Mohamad is asking if it should fly at all. State-meddling has hampered a turnaround and there’s too much local capacity. Folding the airline would show that his government is ready to rein in the state.
Corona Capital: NYSE e-trading, Blue Apron bubbles 19 Mar 2020 Concise views on the pandemic’s corporate and financial fallout: Media and porn giveaways as astute corporate strategy; telephone companies merit a valuation bump as network traffic surges; and a South African motor fuel group hopes to raise $2 bln even as stock markets plunge.
Airbus can only nibble at Boeing’s 737 lunch 18 Mar 2019 Logically, the U.S. aerospace giant’s problems with the ill-fated MAX 8 should benefit its arch European rival. But chock-full order books and production mean Airbus will struggle to take up the slack. If the MAX 8 faces long-term problems, it could just mean fewer planes.
Viewsroom: Boeing’s struggles 14 Mar 2019 The U.S. aircraft maker is facing a crisis after a second crash involving an updated version of its workhorse 737 jet. There’s a financial hit to Boeing from countries grounding the plane; but there are geopolitical implications, too. Plus: China tries to stimulate its economy.
Pricier fuel forces Lufthansa onto leaner path 14 Mar 2019 The German carrier will have to fork out an extra 650 mln euros on fuel this year. With revenue barely growing, CEO Carsten Spohr will have to squeeze other costs, including staff, to maintain altitude. A leaner Lufthansa will add to the pressure on industry laggard Air France.
Belated 737 action marks U.S. soft power erosion 13 Mar 2019 The FAA finally followed many other countries’ watchdogs in grounding Boeing’s 737 MAX aircraft. Usually, the U.S. regulator shows the way. Washington’s government by autopilot and perceived capture by companies has made even allies increasingly skeptical of its leadership.
Boeing needs to think faster than its watchdog 12 Mar 2019 Europeans joined others in suspending flights of the 737 MAX 8 after two crashes, and two U.S. senators called on the FAA to follow suit. The company’s stock lost another 7 pct. Rather than waiting for its regulator, Boeing could get ahead of the crisis by grounding the plane.
Boeing investors fear worst from 737 tragedy 11 Mar 2019 The aerospace giant’s shares lost over $25 bln in value after the second crash of its newest model in six months. That overstates the likely financial impact even if U.S. regulators copy China and ground the plane. The real threat is creating an opening for a Chinese competitor.