Airline Finance News - Europe.Aug 6, 2007 Aeroflot Aeroflot flew 2.19 billion RPKs in June, up 9.3% on the year-ago month. Load factor was 72.5%. Jul 31, 2007 Aircalin Aircalin extended its cooperation with Aviareps beyond Canada to include Germany. Jul 31, 2007 Alitalia Alitalia Delays Decision, Critics Call For Probe. Italian lawmakers called for a probe and suspension of trading in Alitalia shares, which tumbled more than 7 percent on Wednesday after the airline once again put off decisions on a rescue plan, until after the August holidays. Rome is facing growing criticism for its handling of Alitalia's sale process, which has stalled after efforts to auction the government's 49.9 percent stake collapsed last month when all the bidders pulled out. Alitalia's board has already twice postponed decisions on an industrial plan to move forward after the auction's collapse. Alitalia initially convened a July 20 board meeting to discuss its fate after the auction failed. That meeting was adjourned to July 27 and delayed until Wednesday before the latest revision to August 30. Aug 2, 2007 Alitalia Alitalia yesterday named former Finmeccanica executive Maurizio Prato chairman a day after Berardino Libonati resigned on the eve On the Eve (Накануне in Russian) is the third novel by famous Russian writer Ivan Turgenev, best known for his short stories and the novel Fathers and Sons. of a critical board meeting. AZ said it would "defer approval of the guidelines of the company industrial plan until a meeting scheduled for Aug. 30, which would give Prato "time to obtain the necessary information." The board is scheduled to approve AZ's first-half results on Sept. 12. The company's net debt as of June 30 was [euro]1.03 billion ($1.42 billion), down from [euro]1.05 million at the end of May. Aug 2, 2007 Alitalia Italian lawmakers called for a probe and suspension of trading in Alitalia shares, which tumbled more than 7 percent on Wednesday after the airline once again put off decisions on a rescue plan, until after the August holidays. Aug 2, 2007 Alitalia The troubled Italian airline Alitalia named a new chairman and postponed a decision on a long-awaited business plan. Maurizio Prato, a former senior executive at the state-controlled aerospace and military company Finmeccanica, was selected to succeed Berardino Libonati, left, who stepped down Tuesday after less than six months at the head of the company. Mr. Libonati's resignation came after the Italian government failed to find a buyer for the airline through an auction. Mr. Libonati, a former telecom executive, had accepted the post of chairman of Alitalia in February in view of the possible sale of the airline, but after the collapse of the seven-month auction process he felt that different skills, including "a knowledge of the sector," were needed in the chairman's office. Aug 2, 2007 Alitalia Alitalia Chairman Resigns On Eve Of Board Meeting. In a twist of boardroom drama befitting be·fit·ting adj. Appropriate; suitable; proper. be·fit  ting·ly adv.Adj. 1. the crisis at Italian airline Alitalia, its chairman Barardino Libonati resigned on Tuesday on the eve of a crucial board meeting that will decide its future. Libonati, who was appointed in February to guide the airline's privatization privatization: see nationalization. privatization Transfer of government services or assets to the private sector. State-owned assets may be sold to private owners, or statutory restrictions on competition between privately and publicly owned , resigned after all the prospective buyers withdrew from the sale earlier this month. Libonati's predecessor as chairman of the airline, Giancarlo Cimoli, was ousted by the government in January. Minutes before Libonati resigned, Aug 1, 2007 Alitalia The Alitalia board meets on Wednesday to discuss the airline's future and Italian newspapers have speculated that the government is increasingly seen as choosing a recapitalization as the main guideline for the airline's privatization. The Italian Treasury, which has a 49.9 percent stake in Alitalia, is struggling to decide its next move to salvage the money-losing carrier after its seven month auction collapsed earlier this month. Aug 1, 2007 Alitalia The European Commission European Commission, branch of the governing body of the European Union (EU) invested with executive and some legislative powers. Located in Brussels, Belgium, it was founded in 1967 when the three treaty organizations comprising what was then the European Community has warned it will not allow Rome to give more money to Alitalia. The Treasury has said that in the event of a capital increase, it would sell its rights to additional shares, effectively diluting its stake. All three finalists in the auction -- smaller Italian rival Air One, a US private equity consortium led by TPG TPG Texas Pacific Group TPG Tapping TPG Transports Publics Genevois (Geneva, Switzerland public transportation) TPG Test Pattern Generator TPG TNT Post Group TPG Trésorier Payeur Général and MatlinPatterson, and Russia's Aeroflot -- have said they would consider bidding if the terms of a sale were changed. Aug 1, 2007 Alitalia Alitalia's board may indicate tomorrow to the government its preferred alliance partner, reported the daily La Repubblica This article is about the Italian newspaper. For the Peruvian newspaper, see La República. La Repubblica (meaning: "The Republic") is the main[2] Italian daily general-interest newspaper. . The newspaper added that the troubled airline, which is owned at 49.9 pct by the economy ministry and has to launch a capital increase to cover past losses, could propose to the government to pass on its rights in the recapitalization to enable the chosen partner to acquire a stake. Jul 31, 2007 Alitalia Italian government will not be able to sell its stake in Alitalia through private negotiations, Economy Minister Tomasso Padoa-Schioppa said last week in Cortina D'Ampezzo Cortina d'Ampezzo (kōrtē`nä dämpĕd`zō), town (1991 pop. 7,109), in Venetia, NE Italy, in the heart of the Dolomites. It is an international winter sports center with a large tourism industry. , according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. widespread press reports from Italy. He argued that the courts would investigate why the government negotiated with one suitor SUITOR. One who is a party to a suit or action in court. One who is a party to an action. In its ancient sense, suitor meant one Who was bound to attend the county court, also, one who formed part of the secta. (q.v.) rather than another, making the transaction impossible to complete. The government has not revealed its course of action following its failure to sell off its 49.9% stake. Padoa-Schioppa said two weeks ago that liquidation remained a possibility but that the government still hoped to conclude a sale . Jul 31, 2007 Alitalia After being embarrassed by the collapse of its plans to sell Alitalia, the Italian government is now under attack from unions and the opposition for dragging its feet on finalizing the next step to rescue Alitalia. Alitalia loses more than a million euros a day, suffers from frequent strikes and widespread inefficiency. As bad as things may be at Alitalia, Padoa-Schioppa reiterated that he did not expect the airline to go bankrupt and that it could be revived without such "traumatic" moves. The airline's woes were the fruit of at least 30 years of missteps, he said, blaming politics, unions, management and the entire system within which it functioned. Jul 30, 2007 Alitalia Italy cannot hope to sell Alitalia through private negotiations with suitors because that would be challenged by the courts, the economy minister said, highlighting Rome's dwindling dwin·dle v. dwin·dled, dwin·dling, dwin·dles v.intr. To become gradually less until little remains. v.tr. To cause to dwindle. See Synonyms at decrease. options to save the airline. The Italian Treasury, which has a 49.9 percent stake in Alitalia, is struggling to decide its next move to salvage the money-losing carrier after its seven-month auction collapsed earlier this month. Economy Minister Tomasso Padoa-Schioppa last week said Rome was debating whether to start a new bidding process from scratch or begin direct talks with potential suitors, but backed away from the latter option on Sunday. Jul 30, 2007 British Airways British Airways in full British Airways PLC International passenger airline based in London. In 1936 British Airways Ltd. was founded through the merger of three smaller airlines. British Airways Posts Q1 Profit Rise. British Airways posted a 28 percent rise in quarterly operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. on Friday, but warned a weak dollar and soaring fuel prices would slow full-year revenue growth and raise costs. Earnings before interest and taxes In financial and business accounting, earnings before interest and taxes (EBIT) is a measure of a firm's profitability that excludes interest and income tax expenses.[1] EBIT = Operating Revenue – Operating Expenses + Non-operating Income for the three months to end-June rose to GBP GBP In currencies, this is the abbreviation for the British Pound. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 263 million pounds (USD USD In currencies, this is the abbreviation for the U.S. Dollar. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. $534 million), BA said in a statement to the London Stock Exchange London Stock Exchange London marketplace for securities. It was formed in 1773 by a group of stockbrokers who had been doing business informally in local coffeehouses. . Aug 3, 2007 British Airways British Airways said its operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: rose to 12 percent versus 9.2 percent in the same period a year earlier. It reiterated a target of 10 percent for the full year. "Profits are up as a result of the steps we took last year to control costs and strengthen our business," said Chief Executive Willie Walsh Willie Walsh (born in 1961) is an Irish airline executive. He is currently the Chief Executive Officer of British Airways and is a former Chief Executive of Aer Lingus Early life Walsh was born in Dublin, Ireland. He attended his local secondary school Ardscoil Rís. . Profit before tax rose to GBP289 million from GBP191 million. Aug 3, 2007 British Airways British Airways softened its revenue growth guidance by 1 percentage point to around 4 percent, citing the continued weakness of the US dollar. It also said rising fuel costs would take a bite, rising by GBP120 million this year, GBP20 million worse than earlier forecast. Aug 3, 2007 British Airways British Airways Chief Executive Willie Walsh defended the fuel surcharge increases, which came as crude oil prices surged. "I want to reassure our passengers that they were not overcharged." But Deputy Assistant Attorney General Scott Hammond Scott Hammond (born October 4, 1981) is a photographer who travels across America's Heartland with a Polaroid camera taking photographs of common life in the United States often with humorous results in an ongoing project entitled "The Lovely Road. rejected Walsh's contention, even though it was difficult to know exactly what the prices would have been without the conspiracy. Hammond asked why a company would risk fines and possible jail time for executives to participate for a lengthy period in a conspiracy that had no effect. "I suggest that defies common sense," he told reporters. In February last year US and European officials raided airlines on both sides of the Atlantic as part of the probe into possible price-fixing of freight rates. Aug 2, 2007 British Airways More bad news for British Airways as it was named the worst performing of all Europe's major airlines. A report compiled by the Association of European Airlines The Association of European Airlines (AEA) includes 31 European airlines. The aim of the association is to represent the airlines within the European Union and other international bodies. A total of 346,475,239 passengers travelled on these airlines in 2005. (AEA AEA Atomic Energy Authority AEA n abbr (BRIT) (= Atomic Energy Authority) → consejo de energía nuclear; (BRIT) (SCOL) (= Advanced Extension Award) → ) showed that British Airways passengers were more likely to encounter delays than people travelling on any other airline. Aug 2, 2007 British Airways British Airways revealed the biggest fine in its history on Wednesday as it reached settlements with US and UK authorities for price fixing price fixing n. a criminal violation of federal anti-trust statutes, in which several competing businesses reach a secret agreement (conspiracy) to set prices for their products to prevent real competition and keep the public from benefiting from price competition. that could cost it up to GBP350 million pounds (USD$711 million). Europe's third-largest airline said it had agreed to pay a fine of GBP121.5 million pounds in the UK and expected U. authorities to announce a separate fine later in the day. British Airways said both the UK's Office of Fair Trading The Office of Fair Trading or OFT is a non-ministerial government department of the United Kingdom, established by the Fair Trading Act 1973, which enforces both consumer protection and competition law, acting as the UK's economic regulator. (OFT) and the US Department of Justice would continue with criminal investigations into the conduct of individuals involved. Aug 1, 2007 British Airways British Airways said it expected that provision to cover the fines and any impact from a separate, widespread probe of the airline industry regarding cargo fuel surcharges which also involve authorities in Europe, Canada, Australia, South Africa South Africa, Afrikaans Suid-Afrika, officially Republic of South Africa, republic (2005 est. pop. 44,344,000), 471,442 sq mi (1,221,037 sq km), S Africa. and New Zealand New Zealand (zē`lənd), island country (2005 est. pop. 4,035,000), 104,454 sq mi (270,534 sq km), in the S Pacific Ocean, over 1,000 mi (1,600 km) SE of Australia. The capital is Wellington; the largest city and leading port is Auckland. . Analysts said the UK fine was in line with expectations given the provision already taken and noted BA could have fared far worse. The price fixing related to surcharge increases which took place from 2004 until 2006. Fuel surcharges soared from five pounds to 60 pounds per ticket on typical British Airways or Virgin long-haul return flights during the period but BA Chief Executive Willie Walsh defended these rises, which came as crude oil prices surged. Aug 1, 2007 British Airways, Korean Air  This article or section is written like an .Please help [ rewrite this article] from a neutral point of view. Mark blatant advertising for , using . British Airways and Korean Air plea agreements are the first from a continuing, wide-ranging investigation into the air transport industry by the Justice Department's antitrust division. Both British Airways and Korean Air have agreed to cooperate with the investigation, Justice Department officials told a news conference. The conspiracies were described as among the largest and most far-reaching ever investigated. "In every instance American businesses and consumers ended up paying more because of these crimes," Acting Associate Attorney General William Mercer said. Aug 2, 2007 British Airways, Virgin Atlantic British Airways has admitted collusion with Virgin Atlantic over the price of long haul Long distance. Long haul implies traversing a state or a country. Contrast with short haul. passenger fuel surcharges (surcharges) and will pay a penalty of [pounds sterling]121.5m ($246) to be imposed by the Office of Fair Trading (OFT). A criminal investigation is ongoing and no conclusions have been reached as to whether proceedings against individuals can or should be brought. Aug 1, 2007 Iberia Iberia Q2 Profit Rises. Spain's Iberia announced a 15.4 percent rise in second-quarter operating profit to EUR EUR In currencies, this is the abbreviation for the Euro. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 56.85 million euros (USD$77.7 million) on Thursday, backed by cheaper fuel and cost-cutting. The airline made no mention of a four month old, EUR3.4 billion, preliminary offer for the company led by private equity group TPG. Spain's national flag carrier said it squeezed costs by 3.2 percent but sales slipped 2.6 percent to EUR1.357 billion in the quarter as a route-cutting program meant it carried fewer passengers. Chief among reduced costs was a 10.3 percent cut in the fuel bill to EUR271.9 million. Aug 2, 2007 Iberia Iberia said in March it was hedged for 50 percent of its 2007 fuel bill at USD$61 a barrel. Iberia is switching focus to higher margin flights between Europe and Latin America where it holds around 20 percent of the market, just ahead of Air France KLM KLM Kaiserliche Marine (Enigma: Rising Tide game) KLM Koninklijke Luchtvaart Maatschappij (Royal Dutch Airlines) KLM Klub Langer Menschen (German: Tall Person Club) . In the second quarter, Iberia sold 18 percent more high-yield business class seats on long-haul routes, it said. It has embarked on a program to cut costs by 8-10 percent by next year compared to 2005, helping it become more competitive on European and domestic routes, where it faces ever-growing competition from the likes of Ryanair. Aug 2, 2007 Swiss International Air Lines Swiss International Air Lines (short: Swiss) is the principal airline of Switzerland operating scheduled services in Europe and to North America, South America, Africa and Asia. Its main hub is Zurich Kloten Airport (ZRH). Swiss International Air Lines, which became wholly owned by Lufthansa on July 1, posted a net profit of CHF CHF In currencies, this is the abbreviation for the Swiss Franc. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 295 million ($244.8 million) in the first six months of 2006, nearly four times higher than the CHF76 million reported in the year-ago period. Aug 1, 2007 Virgin Atlantic Airways The U.K. Office of Fair Trading and U.S. Department of Justice today fined British Airways more than $540 million ([pounds sterling]266 million) after the carrier admitted to "collusion over the price of long-haul passenger fuel surcharges" with rival Virgin Atlantic between August 2004 and January 2006. OFT in a statement said Virgin was granted immunity from fees since the carrier was the first to give "full details" in relation to the "cartel conduct." Aug 3, 2007 Virgin Atlantic Airways Virgin Atlantic Airways has selected Havas' McKinney to handle creative duties, according to the marketer. WPP WPP Wire & Plastic Product PLC WPP World Press Photo WPP Web Presence Provider WPP Wolf Pack Productions (anime fan subbing group) WPP Witness Protection Program WPP Wireless Packet Platform WPP Work Package Planning Group's MEC MEC Ministério da Educação (Ministry of Education) MEC Ministerio de Educación y Ciencia (Spain: Ministry for Education and Science) MEC Mountain Equipment Co-Op Interaction picks up communications planning and buying for the account, which is valued at $7 million in paid media by the marketer. Jul 31, 2007 Virgin Atlantic Airways, British Airways Virgin Atlantic Airways blew the whistle on British Airways after individuals at the two carriers discussed proposed changes to fuel surcharges for long flights. Virgin won immunity by taking the matter to the UK's Office of Fair Trading (OFT). The fine, the biggest imposed on BA for any regulatory breach anywhere, would have been higher if the airline had not admitted wrongdoing wrong·do·er n. One who does wrong, especially morally or ethically. wrong do . Two senior British Airways
executives quit last October after being linked to the investigation and
in May British Airways set aside GBP350 million as a provision for
possible fines. Aug 1, 2007
Virgin Atlantic Airways, Lufthansa Virgin Atlantic and Lufthansa earlier agreed to cooperate under a leniency le·ni·en·cy n. pl. le·ni·en·cies 1. The condition or quality of being lenient. See Synonyms at mercy. 2. A lenient act. Noun 1. program that allows a company to voluntarily disclose its participation in an antitrust crime and avoid conviction and fines. Virgin Atlantic and Lufthansa still must pay restitution to the US victims of their conspiracies, the officials said. Aug 2, 2007 ZZ Editorial eMail: edit@AirGuideOnline.com For Air Transport & Travel Business Experts contact our Director of Content Aram Gesar eMail: bizintel@AirGuideOnline.com For more global news, reviews, features and analysis, please subscribe to our Newsletters: http://www.airguideonline.com/order_formsubs.htm#news To Advertise: advert@AirGuideOnline.com AirGuideFlightTracker is a new service that keeps travelers informed on flight and airport status via the Web. For more go to http://www.airguideonline.com/airline_tracker.htm Copyright [c] 2007 Pyramid Media Group / Air Travel Media. All rights reserved. |
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