Feel-good war on short flights misses the mark 4 Sep 2023 European states like Germany are mulling bans on air travel under a certain distance. Short-haul commercial flights make convenient climate scapegoats. But going after private jets, which can emit 45 times more carbon per passenger, would bring more benefit with less disruption.
Capital Calls: Cathay, Telecoms kit makers, Byju’s 14 Jul 2023 Concise views on global finance: The Hong Kong carrier expects to turn a profit; a push into 5G has caught European telecoms gear makers like Nokia and Ericsson short; India’s troubled ed-tech giant appoints a top former banker to a newly formed advisory council.
Global airlines grasp at the 100% recovery 21 Jun 2023 Passengers are slowly taking back to the skies but remain reluctant to travel internationally. Singapore Airlines logged a record net profit but won’t say when it will return to pre-pandemic capacity. Rivals are more committed but whether they can deliver is up in the air.
Capital Calls: Lufthansa/ITA 26 May 2023 Concise views on global finance: The 11 bln euro German carrier pays 325 mln euros for a 41% stake in the airline born from the ashes of Alitalia.
India’s airline turbulence will be felt abroad 17 May 2023 Go is the second carrier to go bust since 2019 despite a booming $12 bln industry. Blame price wars and debt-fuelled expansion. The airline’s legal battle with foreign lessors like Sumitomo will be messy too. It will raise the costs on efforts to turn India into an aviation hub.
Lufthansa gives Brussels a state-aid wake-up call 11 May 2023 Europe’s top court has ruled the $12 bln airline got too much of a sweetheart deal in its pandemic aid package. The stakes for Lufthansa look small. But it’s a bad omen for a European Commission facing increasingly tricky decisions on how far to loosen its single market.
Capital Calls: Microsoft/Activision, Subscriptions 24 Mar 2023 Concise views on global finance: The software giant convinced UK regulators to drop one of two major concerns about its $69 bln deal. Meanwhile, the U.S. Federal Trade Commission has picked an easier — and less controversial — fight than its antitrust crackdown.
Cathay’s people problem is Hong Kong’s too 10 Mar 2023 The carrier may struggle to hire fast enough to ramp up capacity. Higher salaries would be an obvious fix to lure back crew scarred by endless quarantine. In the meantime, Cathay will remain a globe-trotting reminder of the reopened city’s isolation for longer than anyone wants.
Elizabeth Warren leads cavalry into deal battles 7 Mar 2023 The Democratic senator urged the Transportation Department to join DOJ efforts to stop JetBlue’s $4 bln plan to buy rival Spirit. She also encouraged the FCC to crack down on Tegna’s sale and the OCC on TD-First Horizon. These odd interventions push trustbusting to new extremes.
IAG takeoff weighed down by debt dilemma 24 Feb 2023 With net debt above its market value, the $9 bln British Airways owner could use a rights issue. But it’s also back in the black after a painful pandemic, and deals may yield cost savings. Boss Luis Gallego has to work out which path is likely to annoy long-term investors least.
High-flying airlines still face stiff headwinds 25 Jan 2023 EasyJet shares surged on improved expectations, as rising numbers of holiday-goers look set to push the sector back into the black. But recent meltdowns show air travel has an increasing problem with tech glitches. It’s premature for investors to settle back in their seats.
Virgin Australia IPO relies on Qantas flight path 20 Jan 2023 Bain Capital may relist the carrier it bought in 2020 as travel revives and rivals’ shares rally. Virgin could be worth $800 mln if it replicates the projected juicy margins and growth rates of its larger rival. If not, the private equity firm might wait in the departure lounge.
Capital Calls: Southwest, U.S. jobs and wages 6 Jan 2023 Concise views on global finance: Financial bumpiness caused by the airline’s major flight disruptions should be temporary, partly due to limited competition; slower U.S. wage growth raises the chances that the Fed won’t have to crush the labor market to bring down inflation.
Capital Calls: DoorDash puts profit on the menu 30 Nov 2022 Concise views on global finance: The food-delivery service’s job cuts should pave the way to a stronger bottom line.
Capital Calls: Cross-border M&A, Riches to rugs 9 Nov 2022 Concise views on global finance: The market reaction to U.S.-based Chart Industries’ $4.4 bln deal to buy Scotland’s Howden reinforces the idea that it’s a bad time to shop overseas, while Peloton’s founders are shifting gears with a new bespoke carpet business.
Capital Calls: Italy’s next finance minister 14 Oct 2022 Concise views on global finance: Rightist leader Giorgia Meloni is likely to pick a pro-European politician as finance chief.
Capital Calls: TSMC 13 Oct 2022 Concise views on global finance: The $324 bln Taiwan Semiconductor Manufacturing barely addressed questions regarding U.S. technology export controls on China during its earnings call.
China’s dreary Golden Week has shades of grey 10 Oct 2022 Domestic tourism sales during the country's top holiday fell to less than 50% of pre-pandemic levels. Cities like Shanghai might get a welcome boost from shoppers that stayed put, but the sector drives roughly 30% of consumption. That’s cold comfort for the weakening economy.
Capital Calls: Chevron, Pickleball 29 Sep 2022 Concise views on global finance: The oil driller has sold its California headquarters building and is moving employees to Texas, while one of the fastest-growing U.S. games is beefing up its professional ambitions with an investment from basketball superstar LeBron James.
Capital Calls: EasyJet, Nexi 27 Sep 2022 Concise views on global finance: The budget airline scraps its offset plan and focuses efforts on cleaner technology; the 12 bln euro payment company’s valuation gap with peer Worldline looks increasingly hard to justify.