Air Freight & Ports News
IAG Records Alarming Loss
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.
Merger of American & US Airways to be announced
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.
Japan Airlines Raised Earning Estimates
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.
Ryanair Sees its Q3 Profits Climb 21%
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.
AIG decides to sell 80% of aircraft leasing unit to Chinese Group
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.
Delta in talks to acquire Singapore Airlines stake in Virgin
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.
Virgin enters Scottish air as it grabs new routes
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.
Virgin Australia sharpens its knives as it sells 10 % stake to Singapore Airlines
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 name doesn’t fit anymore
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.
Japan Airlines Co. relisted; the 2nd largest IPO of 2012
Japan Airlines Co. was relisted on Tokyo Stock Exchange on the 19th of September just three years after a blockbuster bankruptcy. Japan Airlines Co.’s shares opened 0.5 percent higher than the offering price of ¥3,790. The IPO of the Japanese carrier is said to be the second largest IPO in 2012 just right behind one of Facebook Inc., which debuted also this year. In addition, the relisting of Japan Airlines Co. is an example of the fastest corporate turnarounds in Japan so far!
American Airlines notifies 11,000 workers, yet only 4,400 job cuts expected
On 18th of September American Airlines informed that it had notified approximately 11,000 workers that they could lose their jobs as a part of the company’s bankruptcy reorganization. According to Bruce Hicks, spokesman for American Airlines, the company, however, expects job cuts to be closer to 4,400. In addition, flights were cut by one to two percent for the rest of the September and October.
FedEx cuts its outlooks as economy weakens
FedEx Corp.’s shares dropped roughly 3 percent in after-market trading as the company, which is the world’s largest express parcel service by revenue, informed about cutting outlooks on earnings for its just-completed first quarter. The earnings forecasts have been cut by FedEx, citing “weakness in the global economy.” The company projected its first decline in three years after the sluggish economy has hurt demand for express packages.
Qantas – Emirates Alliance Sealed
Qantas Airways Ltd. has announced that it signed a 10-year partnership deal with Emirate Airlines to boost the Australian airline’s international division. The Qantas – Emirates deal regards replacing Singapore with Dubai as the stopover point for European services of the Australian flagship carrier. Moreover officials of those two companies have informed that carriers will align ticket process and flight schedules.
Delta plans to get its hands on North Dakota crude oil
Delta Air Lines considers a purchase of a cheaper North Dakota crude oil to satiate its new refinery located near Philadelphia, instead of buying more expensive overseas crude oil. Delta Air Lines hopes that the North Dakota oil crude will enable the company to get approximately 80 percent of its jet fuel domestically. The purchase of Bakken crude oil would boost Delta Air Lines savings on making jet fuel.
Aer Lingus welcomes EU probe of Ryanair’s bid
Aer Lingus is satisfied with the investigation started by European competition regulators regarding into Ryanair’s €700m (£556m) hostile takeover bid for its fellow Irish airline. The probe was initialized on concerns that the takeover of Aer Lingus might eliminate competition on several routes in Europe.
Philippine Airlines signs $7b deal with Airbus
Philippine Airlines informed that it had signed a $7 billion contract to buy 54 Airbus jets as part of modernization program to meet higher demands for transporting both passengers and cargo in Asia, the Middle East and Australia. Moreover Philippine Airlines, the country’s largest full-service carrier, announced that it planned to buy dozen more planes. Airbus won the $7 billion contract, beating Boeing Co. despite the U.S. support for Manila in a diplomatic dispute with the People’s Republic of China.
Stake in American Airlines under Consideration by IAG
It seems as if IAG or International Airlines Group is deliberating whether or not to purchase an American Airlines minority stake in order to increase their commercial bond and make sure that the United States carrier retains its position as a division of Oneworld, the international airline alliance. The chief executive of IAG, Willie Walsh, reportedly claimed that investing in a minor stake in America would provide them with the opportunity to strengthen the membership of the US carrier in Oneworld, the association with which his group is also affiliated.
B/E Aerospace to Acquire Supply Chain Management Co.
Florida-based B/E Aerospace, aerospace manufacturing industry leaders of aircraft cabin interior products and distributor of aerospace fasteners and consumables in the aerospace industry, signed a deal to acquire UFC Aerospace Corp. for $400 million in cash.
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