Buffett airline bet no longer pie in the sky 5 Mar 2019 Has the Oracle of Omaha changed his view that airlines are an investment “death trap”? He now owns stakes in some, and wouldn’t rule out buying one outright. It might be the airlines that have changed, though. Consolidation and smarter pricing have made the industry more resilient.
Boeing can afford a business upgrade 8 Feb 2019 The $225 bln aerospace firm is considering whether to build a new jet. It stumbled with the 787 a decade ago. Since then, boss Dennis Muilenburg has fixed production snags, and customers are in better shape. A new wide-body could boost Boeing’s lead over Airbus.
Stalling Jet Airways puts Narendra Modi in a bind 17 Jan 2019 To save the private carrier, India’s premier may have to choose between relaxing foreign ownership rules for Abu Dhabi’s Etihad and letting state banks take a hit. Both options touch the sorest points of Indian finance: it's an awkward dilemma in the run-up to a general election.
HNA’s haphazard selloff keeps getting trickier 9 Jan 2019 The Chinese conglomerate is flogging stakes in an online lender, life insurer and brokerage. A lack of clear strategy and market perceptions of creditor clout will make it harder to profitably unwind HNA’s $50 bln buying spree. Falling asset prices aren’t helping, either.
GE aircraft-leasing sale would be $40 bln moonshot 8 Jan 2019 Buyout firm Apollo may bid for the best bit of GE’s finance arm, testing CEO Larry Culp’s commitment to decluttering the U.S. conglomerate. Unless he can get a knockout price, though, selling a crown jewel could leave Culp looking like he’s out of options.
Etihad holds first class ticket for Jet’s tailspin 3 Jan 2019 The Indian carrier just missed a bank payment, deepening its market plunge. As it tries to flog assets and haggle with lenders, big Abu Dhabi backer Etihad can impose tough terms to salvage the company and its investment. It could even cost Jet founder Naresh Goyal control.
Boeing foots the bill for competitive misstep 17 Dec 2018 The aerospace giant lifted its offer for control of Embraer’s regional-jet business to $4.2 bln. It’s not the greatest deal – rival Airbus got Canada’s Bombardier for a song after Boeing’s aggressive trade tactics backfired. But it’s better to pay up than leave a flank exposed.
M&A can bring relief to Asia’s crowded skies 19 Nov 2018 Too many carriers, with too many planes, offering cheap fares have left the industry on its knees, and put price controls back on the agenda. Consolidation is a better fix. With Indonesia’s Garuda taking over a rival and India’s Jet Airways in play, a turning point may be near.
Cathay Pacific typifies data-breach turbulence 25 Oct 2018 The $5 bln Hong Kong airline disclosed unauthorised access to personal details of over 9 mln passengers. It also waited seven months to come clean. Though investors should know by now that hacks can happen anywhere, they leave struggling companies like Cathay more exposed.
India’s Jet can redeem some air miles to ease pain 28 Aug 2018 After a quarterly net loss of $190 million, the country’s second-largest airline badly needs cash. It has laid out a list of planned fixes, including somehow tapping its loyalty programme. That won't solve its engine trouble, but may help smooth out some of the turbulence.
Jet’s poor piloting exacerbates Indian turbulence 10 Aug 2018 Naresh Goyal’s airline says it is not short of cash or in talks to sell a stake. Yet the failure to get its earnings signed off on time suggests profound problems. The industry is suffering from high costs and low fares, but the carrier's mixed messages test investor patience.
Cathay’s improved flight path is still bumpy 8 Aug 2018 Halfway through a turnaround, the Hong Kong carrier reported a narrower half-year loss and higher fares. That's reassuring after price pressures at rival Singapore Airlines. But a more tangible trade war, rising costs and a weak yuan may yet test the recovery its shares expect.
India’s top airline can evade a turbulent patch 31 Jul 2018 Shares in InterGlobe Aviation, which owns IndiGo, fell sharply after first-quarter earnings plunged 97 pct. A fare war at home is to blame, as are rising fuel prices. But rivals are suffering too, and high costs will encourage the carrier to pause a planned long-haul splurge.
Chairman’s death intensifies HNA uncertainty 4 Jul 2018 The accidental death of co-founder Wang Jian adds to questions about the future of the embattled conglomerate. His precise remit at the closely held group was not clear. Unlike some other big private Chinese outfits, however, HNA was not reliant on a single leader.
China eases HNA’s glide path 19 Jun 2018 The troubled conglomerate has billions in debt coming due soon. Official pressure on banks to support HNA bonds could therefore help it refinance, minimising the risk of an unplanned financial accident. That also buys time for more selloffs to further sharpen its focus on travel.
United shareholders fly into more turbulence 18 May 2018 CFO Andrew Levy, hired to help the embattled $19 bln airline in dogfights with cheaper rivals. is leaving after less than two years. As its chairman also takes off, United looks less able than peers to combat rising oil prices and seat capacity hitting margins. Time to buckle up.
Singapore Airlines is cruising comfortably 18 May 2018 The $10 bln flag carrier beat forecasts with a 148 pct jump in annual earnings. Its overhaul is working, and a plan to absorb regional arm SilkAir looks sensible. There is more to do, but the group can afford to take its time evaluating growth options, including India.
China’s airlines are set for a long-haul price war 17 May 2018 Beijing is freeing local carriers to raise fees at home and fight for share on international routes. State ownership endures, however, as do distorting airspace restrictions. A painful battle over fares is in the offing, and will come at foreign rivals' expense.
China’s DJI performs impressive fundraising stunts 10 Apr 2018 The drone-maker is requiring investors who want to buy equity at a $15 bln valuation to provide an accompanying interest-free, three-year loan. Such terms suggest DJI is soaring above many struggling gadget companies. It's also the latest evidence of breathtaking tech heights.
Cancelled Swiss IPO is a bearable blow for HNA 27 Mar 2018 The embattled Chinese conglomerate wanted to raise up to $1.4 billion from Gategroup, but pulled the deal over pricing. Listing is harder than selling property or existing shares, but by holding firm on price, HNA avoids looking desperate. That could help with other disposals.