Airline Finance News - Europe.

EU hopes for preliminary "open skies" pact by summer. The EU hopes to reach a preliminary "open skies" agreement with the U.S. before the summer. The talks are now on hold. The EU is waiting for details on how the U.S. will lift foreign airline ownership restrictions. Mar 27, 2006

Iberia

Iberia pleased with new Barajas terminal after choppy start. Iberia said it is very satisfied with the situation at the new Terminal 4 at Madrid Barajas less than two months after it moved its operation into the [euro]6 billion ($7.22 billion) facility. Mar 28, 2006

Lufthansa Technik

Lufthansa Technik Group, which saw its operating profit climb 26% to [euro]258 million in 2005, said growth should slow in 2006 as the competitive environment heats up. LHT Executive Board Member August Wilhelm Henningsen said at a press briefing that he expects 4%-5% growth in business this year, all of which should come from outside Lufthansa Group. Last year, 58% of LHT's work came from third-party clients as it increased its total global customer base by 4%. To compensate for the decline, it will continue to target cost savings. It realized improvements of [euro]129 million last year, largely by reducing material and procurement costs, and has targeted savings of [euro]240 million by 2007. Mar 29, 2006

Styrian Spirit 

Styrian Spirit shuts down. Austrian Regional carrier Styrian Spirit shut down operations Friday, stranding hundreds of passengers, and subsequently declared insolvency. Mar 27, 2006

Virgin Atlantic

Virgin Atlantic opened a new [pounds sterling]11 million ($19.2 million), 8,000-sq.-ft. club lounge at London Heathrow on Monday that features a spa pool, cinema, salon, rooftop garden, game room and other facilities and amenities. Architect was Softroom of London. Mar 30, 2006

VLM Airlines 

VLM Airlines reported its eighth consecutive annual profit, posting net earnings of [euro]1.35 million ($1.6 million) in 2005, a 43% increase over 2004. Revenues rose 17% to [euro]88.5 million and operating expenses climbed 16.5% to [euro]85.9 million. Operating profit increased 42% to [euro]2.5 million. At the end of the financial year, the airline's cash balance stood at a healthy [euro]6.9 million, an increase of more than 200% from the previous year. "These are positive results, but we are eager to achieve more. We plan to deliver more frequencies, more routes, more service and more innovation. This year, we will continue to invest in the wide range of products and services for our passengers," Chairman Jaap Rosen Jacobson said. VLM carried 625,300 passengers in 2005 on its scheduled and charter services, up 12% from the previous year. Ontime performance improved 2.7 points to 91.7%. VLM was named ATW's Regional Airline of the Year for 2006. Mar 31, 2006