Airline Finance News - Europe.

For more airline finance news, data and analysis, please go to: http://www.airguideonline.com/professional.htm Aug 21, 2006

Laptops damaged under new airline restrictions may be covered. British insurance companies may make some temporary exceptions to their practice of not covering valuables, such as laptops and other electronics, in checked baggage. A spokeswoman for The Association of British Insurers says insurance companies are taking into account the extenuating circumstances of the past week and dealing with each case individually. Aug 18, 2006

Aer Lingus 

Aer Lingus IPO To Go Ahead. Irish state airline Aer Lingus said on Thursday it would not delay its flotation later this year, despite a setback to its long-haul expansion plans and increased turbulence in the industry. Aug 17, 2006

Aeroflot

Aeroflot's privatization appears back on track following the Russian government's decision this week to exclude the carrier from a list of enterprises protected from foreign control, according to press reports. The government still holds a 51% stake in the airline but is willing to part with it now that construction of a new terminal at Moscow Sheremetyevo is set to be completed next year. Aug 17, 2006

Air Berlin, dba

German consolidation continues as Air Berlin acquires dba. Air Berlin, Germany's second-biggest carrier after Lufthansa, said yesterday that it will take over 100% of dba, the country's No. 3 airline. Aug 18, 2006

Bmi

Bmi, Heathrow's second-largest operator, said it also might take action against BAA, while Ryanair continued to press for "commonsense security measures and government support through army and police personnel when it is clear that the BAA front-line staff cannot cope." The LCC said it was forced to cancel eight flights at Stansted yesterday morning, while easyJet said it had returned to "normal operations" and did not plan any cancellations today. Aug 16, 2006

British Airways

British Airways spokesperson told reporters the carrier is giving "no consideration" to suing the UK government to recoup the nearly [pounds sterling]50 million ($94.7 million) some analysts say it lost as a result of the past week's cancellations and delays at London airports. Ryanair reportedly is feeling otherwise and has contacted other carriers about challenging the government. EasyJet denied it was interested in suing the government, AFX News reported. "The first duty of any government is to protect its citizens and easyJet commends the UK government for acting decisively last week," the LCC said. Virgin Atlantic Airways said, "We prefer to have a cozy chat with the government, the DFT in particular, about how any costs can be clawed back through any possible government financial help, but we do not intend to sue." British Airways told MarketWatch that "our priority is to get the operations back to normal. Then next week we will sit down, crunch some numbers and see how we could best recoup those losses," adding that it will "seriously consider" action against airports operator BAA, which said in a statement that because Heathrow already is well over capacity, "the scale and suddenness of the measures imposed last week could not be managed without significant disruption." The Times acquired an e-mail sent by Ryanair's Jim Callaghan to other airlines discussing the government's liability for losses resulting from its policies under Section 93 of the Transport Act 2000. "Ryanair intends to use this provision to put pressure on the government to remove some of the illogical and unworkable restrictions at airports," the e-mail said. Aug 18, 2006 British Airways British Airways said it canceled a further 35 flights at LHR yesterday, raising its six-day total at its main base to around 700, while systemwide cancellations numbered around 1,100. It expects to operate "90% of its schedule" today,with plans to cancel three long-haul and 32 European and domestic departures from Heathrow and 11 domestic returns from Gatwick. CEO Willie Walsh said BA may seek compensation from BAA. Analysts estimate that the disruptions could cost BA, which is suffering through an operational meltdown at LHR for a fourth consecutive summer, more than [pounds sterling]40 million ($75.6 million). Reportedly, some 10,000 bags have gone missing and another 5,000 still need to be returned. It is using trucks to transport baggage left at LHR to destinations such as Manchester, Edinburgh and Frankfurt. In a statement to BBC, BA "fully apologize[d]" for the baggage problems, which it attributed "to a combination of issues with the BAA's baggage systems." Aug 16, 2006 CSA Czech Airlines CSA Czech Airlines is increasing fuel surcharges from today by $2 to $25 on European flights and by $7 to $67 on long-haul flights. Aug 15, 2006 FL Group FL Group profit down sharply despite Icelandair's strong results. FL Group, the Reykjavik-based parent of Icelandair Group, Sterling Airlines and other aviation and tourism businesses, yesterday reported a second-quarter net profit of just ISK118 million ($1.7 million), narrowed from a profit of ISK1.9 billion in the year-ago period.CEO Hannes Smarason cited "extremely turbulent" capital markets in the quarter as well as "difficult market conditions and seasonality in operating companies" through the first half of the year to explain the reduced results. But Icelandair Group had its best-ever first half, with net income of ISK3.86 billion for the six months ended June 30, including a second-quarter net profit of ISK1.56 billion. Aug 16, 2006

FL Group, easyJet FL Group decreased its investment in air transport somewhat in the quarter by selling its 16.9% stake in easyJet. Aug 16, 2006 Iberia Iberia flew 4.63 billion RPKs in July, up 0.6% from the year-ago month. Capacity dropped 0.8% to 5.58 billion ASKs and load factor rose 1.2 points to 83%. Domestic traffic declined 14.2% to 818 million RPKs against a 12.9% fall in capacity to 1.08 billion ASKs, dropping load factor 1.2 points to 76%. Aug 16, 2006