AIG digs out of lengthy Stowe snow-blindness 21 Feb 2017 The insurer is offloading the Vermont resort, built by its founder because he hated waiting in line. For Vail Resorts, the $50 mln deal nearly completes its American ski roll-up. Investors should welcome anything that helps focus management at AIG, which lost $3 bln last quarter.
Hong Kong loses its luxury scarcity value 3 Feb 2017 Tourist arrivals from mainland China rose 3.6 pct over the New Year, and Chinese consumer spending is accelerating. If only that were enough for luxury companies who have hung their hat on the city's unique charms. Luxury isn't quite passé, but buyers have moved further afield.
Ctrip pays luxury fare to see more of the world 24 Nov 2016 China's top online travel agent will buy Skyscanner for $1.7 bln in its first big push overseas. The British "metasearch" engine gives Ctrip a big base of travellers who compare prices across airlines and travel agents. Reaping sizeable benefits from the deal will be a long haul.
Making pilots shareholders may save Lufthansa 23 Nov 2016 The carrier's pilots are striking to get a 20-pct pay rise that Lufthansa, dogged by high costs, cannot afford. Paying them in shares might end the gridlock. The airline would save cash, and entrepreneurial spirit in the cockpit could soften the pilots' outlandish demands.
Indian online-travel M&A could use a roadmap 19 Oct 2016 Shares in U.S. listed MakeMyTrip jumped 50 pct on the back of a $1.5 bln merger with ibibo, a private rival backed by Naspers. That is despite the pair offering almost no details. It shows how desperate investors are to see a reduction in competition and a path to profitability.
EasyJet misery a foretaste of European airmageddon 6 Oct 2016 Growing overcapacities fuelled by cheap oil, security scares and Brexit jitters are hitting even highly efficient airlines like easyJet hard. The low-cost carrier expects a 28 pct fall in pre-tax profit. Less nimble rivals like Lufthansa and Air France can brace for worse.
LVMH gets first-class luggage at no-frills price 4 Oct 2016 Louis Vuitton’s owner is buying a majority stake in German suitcase maker Rimowa for 640 mln euros. The multiple of two times sales is less than what Samsonite recently paid for rival Tumi. Perhaps the Arnault clan persuaded family-owned Rimowa to leave some money on the table.
Golden Chinese shopping spree will tarnish soon 3 Oct 2016 China's "Golden Week" holiday will see mainland tourists splurging in bazaars from Milan to Macau. Retailers should enjoy it while it lasts. Tax cuts will make shopping at home less painful, and younger Chinese prefer experiences to handbags. That will cap future growth.
Ctrip’s cash call heralds exotic adventures 8 Sep 2016 China's top online travel group has raised at least $2.4 bln. That will help the firm backed by Baidu and Priceline diversify as local airlines fight back against its core ticketing business. If recent deal making is a guide, Ctrip's latest haul will take it off the beaten track.
EasyJet is post-Brexit bet for the brave 21 Jul 2016 The UK airline says it doesn’t know what security scares, currency turmoil and Britain’s exit from Europe will do to earnings. The shares have fallen around 30 pct in less than a month. Yet in past downturns easyJet has snatched market share. There’s no reason it can’t again.