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Airline Finance News - Europe.

Dec 4, 2006

Aer Lingus

Aer Lingus presented its unions with a 12-point cost-cutting plan Friday as part of its continuing effort to thwart Ryanair's floundering takeover bid and succeed as an independent carrier. According to press reports, EI has promised not to cut jobs without workers' consent. It also intends to simplify pay grades, enact standard work rules, renegotiate airport and ground handling contracts, introduce a fuel efficiency plan and look into the establishment of overseas bases, according to The Irish Times. Dec 4, 2006


Italian government ready to sell off more of Alitalia. The Italian government on Friday confirmed its intention to reduce its controlling interest in Alitalia in an effort to lift the carrier out of the red and into an alliance. Dec 4, 2006

Austrian Airlines

Austrian Airlines Group pilots, about 200 of them, will leave the company voluntarily and take advantage of its Golden Hand Shake offer, which expired last weekend. Austrian newspaper Wiener Zeitung reported that some pilots will get up to [euro]650,000 ($854,400) for taking the offer. According to reports, 400-600 flight attendants also face reduction and will receive up to 11 months salary if they leave voluntarily. Financially troubled AAG is reducing its long-haul fleet by four A330-200s and two A340-300s. It employs 710 pilots, 1,900 flight attendants and 2,400 ground staff. Nov 30, 2006

Austrian Airlines

Austrian Airlines Group launched its capital increase earlier this month following a unanimous vote by shareholders at an extraordinary AGM, issuing up to 51.68 million bearer shares with no par value. The subscription and offer period concludes Dec. 1, an OS spokesperson told this website. Maximum offer price is [euro]8.12 ($10.66) per share. "The fresh capital will enable us to strengthen both our earning power and capital structure in the long term, and consistently accelerate the restructuring of the group," CEO Alfred Oetsch said in a statement. Principal shareholder OIAG and shareholders represented in the Austrian syndicate will take part and retain their stake of 50% plus one share. The carrier warned that its guidance for unadjusted EBIT for full-year 2006 will be "significantly negative," although it should improve from 2005's operating loss of [euro]100 million. Nov 29, 2006


Iberia said e-tickets accounted for 95% of all tickets sold in October. For domestic flights the proportion was 97.5% and international was 92%. Only Naples and Pisa, served by franchise partners Iberia Regional/Air Nostrum, still require traditional tickets. Nov 30, 2006

Iberia, British Airways

Iberia maintains satisfaction with BA partnership, hopes for more consolidation. Iberia appears to be more eager to participate in European airline consolidation than oneworld partner and shareholder British Airways, although the Spanish carrier dismissed reports that it is dissatisfied with its UK partner. Dec 1, 2006


KLM, as expected, appointed Deputy CEO and COO Peter Hartman to take over from CEO Leo van Wijk, who will step down at the close of the company's AGM on July 5, 2007. Hartman will be acting CEO as of April 1. He was appointed to the KLM board of MDs in 1997, having joined the carrier in 1973 as a controller at Engineering & Maintenance. Van Wijk, 60, will continue to be involved in the management of Air France KLM as vice chairman, KLM said. Last month, van Wijk indicated he likely will take a strategic role in the merged company upon conclusion of his KLM tenure. According to Dutch press reports, he will focus on the M&A activities of the holding. Nov 28, 2006

Swiss European

Swiss Pilots Assn., which represents Swiss European Air Lines pilots, rejected the company's offer for a new labor agreement. Despite concessions on the part of Swiss European, SPA said it is not prepared to negotiate further on the current offer. Swiss said the union's demands would result in a cost increase of approximately 35%. The pilots currently are flying under an interim agreement reached in April. Nov 28, 2006

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Nov 13, 2006
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Publication:Airguide Online
Date:Dec 4, 2006
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