On the 28th of February, International Airlines Group informed that it reported a net loss worth €943 million after battling through restructuring charges from its Spanish division Iberia. In addition, the company is planning to downsize its workforce by 3,800 people at its Iberia division in order to reduce costs.
On the 19th of February, Singapore and Malaysia informed that a new high-speed rail link would be build between the wealthy city-state and Kuala Lumpur. The news on the new high-speed rail link between two cities opens a new chapter in the bilateral relations. The Southeast Asian neighbors certainly will benefit from this new communication link not only on a human level, but mainly on the economic one. Economic ties between Singapore and Malaysia will be even stronger than these days. The high-speed rail link is expected to be a “game changer” for both countries.
At last, the merger of American Airlines and US Airways is said to be announced on the 14th of February. And if the day of the long-anticipated announcement may suggest that the merger has some romantic inclinations, the truth is that the transaction is clearly pragmatic. Undoubtedly, the deal will create one of the US largest carriers. But the merger of American Airlines and US Airways is also expected to be one of the last biggest transactions in a time of increased consolidation in an industry which has been recently struggling amid tough economic conditions.
On the 4th of February, Japan Airlines informed that it raised the operating profit forecast to 163 billion yen from analysts’ expectations of around 140 billion yen. Despite sluggish fourth quarter earnings, the airline the airline decided to raise forecast slightly more than 15 percent as demand for the European and American routes climbed.
Amazon.com Inc. saw an increase in the fourth quarter earnings as revenues climbed by more than 20 percent during the holiday shopping season while the profits dropped as much as 45 percent.
Ryanair witnessed strong profits in its third fiscal quarter ended December as the company enjoyed extensive pre-holiday reservations. The increase in fuel prices, however, did not seem to affect the profits of the airline.
Christmas is closer everyday… The suspense is increasing as presents are being sent out. Without a doubt the holiday season, namely the holiday shopping season, is the busiest period for shipping companies and postal services all over the world. And with Christmas only 14 days away, shipping companies and post offices are madly busy with all those holiday packages and presents.
American International Group Inc. informed that it would sell an 80.1 percent stake in its International Lease Finance Corp. to a group of Chinese investors for as much as $4.2 billion. The acquisition is expected to be the China’s biggest acquisition of an American company. What is more, the group of Chinese investors has an option to buy an extra stake of 9.9 percent, which would give them as much as a 90 percent stock in ILFC.
On 3rd of December, Singapore Airlines informed that it was in talks with several companies which were interested in an acquisition of its 49 percent stake in Virgin Atlantic Airways. According to sources familiar with the situation, among those interested parties is Delta Air Lines which seeks ways to reinforce its international operations.
Here it comes, after days of waiting Cyber Monday deals are to begin. The phantom of the Thanksgiving evening, Black Friday and the weekend is slowly fading away to be replaced by Cyber Monday, which is expected to be the busiest online shopping day of 2012.
Virgin Atlantic Airways Ltd will be operating Heathrow routes to two Scottish cities, Edinburgh and Aberdeen after being offer take-off and landing slots at the Heathrow airport. British Airways was made to relinquish these slots after the successful acquisition of BMI by International Consolidated Airlines Group, S.A.
China’s Alibaba Group has not only doubled its net profit margin reached for the April-June quarter in the recent quarter but also exceeded past the double value handsomely. Alibaba’s Q2 profit doubled and its sales for the period increased by approximately 7o percent thereby proving the fact that the biggest e-commerce firm of China has trifled the growing rivalry in the concerned sector.
E-commerce company eBay Inc. has been summoned on the 16th of November by the state of California and their Department of Justice as well. The case is a result of an illegal agreement of the e-commerce company eBay Inc. with Intuit Inc. that the former would not employ the workers of the latter.
Royal Mail gears up for Christmas as it hears Santa’s steps. Therefore Royal Mail has decided not only to open new handling centers to keep up with a boom in online shopping, but also to publish its new Christmas stamps and introduce a new cheap stamps scheme as well.
Virgin Australia Holdings Ltd. announced on the 30th of October that it sold a 10 percent stake to Singapore Airlines Ltd. The company announced two other deals as well. Virgin Australia, the Australia’s No. 2 carrier, is sharpening its knives as recent deals are aimed at threatening Qantas Airways Ltd., which has been a leader of Australian aviation market for over a decade.
BAA, leading UK airports company, informed on the 15th of October that the BAA name would disappear from its airports. According to the company’s statement, airport operator BAA is to change the name under which the company operates its UK airports. The company’s portfolio of airports includes Heathrow, Glasgow, Aberdeen Southampton and Stansted and all of them will operate under their stand-alone brands. The name changes are effective from the 15th of October.
Network Rail plans to open a 300,000 sq ft national distribution centre, NDC, at Prologis’ Ryton site, which was the site of the former Peugeot plant. The £25 million national distribution centre, which will be located near Coventry in the West Midlands, will create as many as 100 jobs.
The UK government scraps rail deal pertaining to West Coast Main line, and ends up offering the West Coast rail franchise to a private service provider. This action of the government has made many express doubts over the manner in which the UK government is dealing with the matter of privatization of railways.
Most of the US high tech companies are expecting to export more and more tablets, cell phones and other electronic devices in the next two year period to some of the growing middle class people of the developing nations. In a survey that was conducted this fact has been revealed as a result rising costs of labor abroad and the free trade pacts.