Boeing’s question is not how much but how long 28 Oct 2020 The $86 bln aerospace firm jettisoned $5.1 bln of cash in the latest quarter, not much better than the three months before. Other airborne industries are suffering too, but despite a reasonable balance-sheet cushion, Boeing is even less suited to endure prolonged disruptions.
U.S. airline staff now need aid more than carriers 22 Oct 2020 Southwest and American’s losses continued last quarter. But they both fortified cash resources enough to fund the status quo for at least a year. Meantime, employees are the losers from the financial and political squeeze. Fresh government help needs to more clearly benefit them.
Off-colour IAG points to prolonged air-sickness 22 Oct 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 Oct 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.
Viewsroom: On the road again, Zambia, Super-apps 15 Oct 2020 Airlines columnist Ed Cropley boards his first plane since Covid-19 hit, and experiences travel in the pandemic era on a visit to Munich. He also discusses the financial proxy war over Zambia’s debt restructuring. Meantime, Asia goes mad for all-singing mobile applications.
Corona Capital: Kazakhs, Norwegians, Airlines 15 Oct 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 Oct 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.
Corona Capital: Oil, Delta, Hunger 13 Oct 2020 Concise views on the pandemic’s corporate and financial fallout: OPEC and the International Energy Agency issue forecasts that bode ill for crude demand; the U.S. airline steers through turbulence; and a food crisis is exacerbating problems facing the most vulnerable in society.
Corona Capital: NBA, Polish e-commerce, Tesco 12 Oct 2020 Concise views on the pandemic’s corporate and financial fallout: A major basketball bake-off fails to pull in the online crowds; Poland’s biggest e-commerce company flies from the shelves; and UK grocer Tesco wrestles with supply chain problems.
Airline employees are pawns in U.S. bailout debate 1 Oct 2020 American is going forward with 19,000 job cuts, at least temporarily, as Congress tries to agree on a bailout. Even if the carrier shrinks permanently, many of those jobs should return. That means Washington can justify helping rather than keeping workers in stressful limbo.
Corona Capital: NYC 30 Sep 2020 Concise views on the pandemic’s corporate and financial fallout: New York City’s economic reboot comes up against a new outbreak.
American Airlines bailout plea looks cheeky 24 Sep 2020 The company wants more public money to avoid furloughing 19,000 workers. But it should have $13 bln of liquidity by the end of the quarter, including discounted loans competitors eschewed. Even if American can’t stay afloat, there’s Chapter 11. The time for handouts is over.
Corona Capital: Coca-Cola, Viral inequality 22 Sep 2020 Concise views on the pandemic’s corporate and financial fallout: Coca-Cola, once an icon of temperance, is diving into the hard seltzer market; and California is considering using the disparity in numbers of Covid cases between neighborhoods to steer its response.
Corona Capital: Playboy, Mondelez 21 Sep 2020 Concise views on the pandemic’s corporate and financial fallout: The owner of perhaps the most famous adult magazine is hoping a SPAC can give it a new lease on life; Mondelez wants to expand its range of healthy snacks – but they’re not always the best money spinners.
Corona Capital: Newspaper rivals, College football 17 Sep 2020 Concise views on the pandemic’s corporate and financial fallout: the Wall Street Journal hits up the New York Times’ printing presses; U.S. college football’s Big Ten makes a comeback.
Battered airlines deploy frequent-flyer parachute 14 Sep 2020 Delta is raising $6.5 bln on the back of its miles program; other U.S. carriers have done the same. Transforming what starts as a liability into an asset sounds like accounting magic. But credit card issuers, who buy miles, make them valuable, especially when people stay home.
Corona Capital: Amazon, NYC and Trump 14 Sep 2020 Concise views on the pandemic’s corporate and financial fallout: Amazon’s hiring boom highlights its weakness, and U.S. President Donald Trump could throw New York City a bone.
Corona Capital: Banks and government, Ryanair cash 4 Sep 2020 Concise views on the pandemic’s corporate and financial fallout: Britain’s finance minister Rishi Sunak could hurt taxpayers by forcing lenders to chase pandemic borrowers; and the Irish airline’s war chest will come in handy if rivals go under.
Ethiopian swoop would seal South Africa’s descent 4 Sep 2020 Pretoria’s bankrupt state airline may secure a parachute from Addis Ababa, a stunning reversal of fortunes from the 1990s. After apartheid, South African firms blazed trails across the continent. With corruption and dogma hobbling their home base, the tables are turning.
Corona Capital: Pools, Dell 28 Aug 2020 Concise views on the pandemic’s corporate and financial fallout: Pool firm’s dive into public markets, Dell’s hardware resilience.