Posts Tagged ‘Reuters’


[Reuters] London’s Heathrow said on Tuesday it would not appeal a decision by the regulator to impose a cap on the prices Britain’s biggest airport can charge airlines, adding it did not believe other parties would appeal the ruling either.

“We are focussed on delivering our business plan for the period from 2014-18 and further improving Heathrow for passengers,” the airport said in a brief statement.

Heathrow had warned in January that it could struggle to grow its business after the Civil Aviation Authority (CAA) ruled it must set its prices at 1.5 percent below inflation from April 2014 after finding that the airport – Europe’s busiest – had too much market power.

Read the original story at Reuters…..

 


(Reporting by Kate Holton, Editing by Paul Sandle)
Reuters
1st April, 2014


Enhanced by Zemanta

[Reuters] Struggling British airline Flybe will quit its main London hub at Gatwick airport and has pushed back the delivery of 16 new aircraft to help it return to profitability.

In April the carrier forecast an underlying loss for the year to the end of March. Photo

In April the carrier forecast an underlying loss for the year to the end of March. Photo: Wikipedia

Europe’s largest regional airline also said it had axed 590 jobs, or 22 percent of its UK workforce, despite saying in January it would cut only 300 jobs when it unveiled a cost-cutting plan designed to end a two-year run of losses at the pre-tax level.

Flybe floated its shares on the London Stock Exchange at the end of 2010 and has since suffered from high fuel costs, falling passenger numbers and higher airport charges, especially in London.

The company, which counts British Airways parent IAG and billionaire investor George Soros among its largest shareholders, said on Thursday the measures would save it GBP£30 million (USD$45 million) in costs in 2013/14, GBP£5 million ahead of its previous target, with more than half coming from the job cuts.

Flybe will exit Gatwick in March 2014, after agreeing a deal to sell its 25 take-off and landing slots at London’s second-largest airport to easyJet for GBP£20 million. “No business can swallow cost increases of more than 100 percent over five years and Flybe simply cannot bear such punitive rises,” Flybe chief executive and chairman Jim French said.

Flybe said it had also pushed back the delivery of 16 Embraer E175 aircraft to between 2017 and 2019, which would reduce pre-delivery payment charges due this year by 20 million pounds.

The aircraft were previously due to arrive in 2014 and 2015.

Since Flybe’s 295 pence-per-share float, its shares have fallen 80 percent, cutting the company’s market value to 43 million pounds from 215 million at launch.

“Flybe is exposed to the regional UK market which is not seeing the same growth as London is,” said analyst Alexia Dogani at brokerage Liberium. “London airports have become more expensive for small regional airlines to operate (from) … and therefore Flybe has not been able to attract as many passengers for its routes.”

It is not the only smaller airline to have suffered. Last year, loss-making Spanair and Hungarian flag-carrier Malev ceased operations, leaving gaps in the market that larger low-cost carriers like easyJet have been quick to exploit.

European carriers including Germany’s Lufthansa AG, Franco-Dutch Air France-KLM and Spain’s Iberia have also cut thousands of jobs over the last year and reined in capacity growth.

Flybe flies to Belfast, Glasgow, Edinburgh and the Isle of Man from Gatwick. Selling its Gatwick slots would substantially reduce its London operations to just the few flights it runs out of Luton airport, some 50 kilometres north of the capital.

Read the full story at Reuters….

 


Reuters
23rd May, 2013



[ReutersHeathrow Ltd, the British airport operator formerly known as BAA, posted a strong rise in full year profit, largely driven by an increase in the fees it charges airlines.

The group also last week unveiled a 3 billion pounds five-year investment plan, which could see passengers facing a rise in ticket prices.

The group also last week unveiled a 3 billion pounds five-year investment plan, which could see passengers facing a rise in ticket prices. Photo: Wikipedia

Ferrovial‘s Heathrow on Monday said its 2012 earnings before interest, tax, depreciation and amortisation rose 11.6 percent to 1.26 billion pounds on revenues 2.46 billion pounds.

The operator has increased airport tariffs by an average of 12.5 percent since April 2011.

The company said passenger traffic at London’s Heathrow, Europe’s busiest airport, rose 0.9 percent to 70 million during the year, while traffic at London Stansted fell 3.2 percent to 17.5 million.

The group last week unveiled a 3 billion pounds five-year investment plan, which could see passengers facing a rise in ticket prices.

Read the original story at Reuters…..


Reuters
Reporting by Rhys Jones, Editing by Brenda Goh
21st Feb, 2013



[Reuters] British travel group Thomas Cook plans to merge its German, British and Belgian airline operations, appointing a new airline management board to run the business.

Condor, Thomas Cook Airlines UK and Thomas Cook Airlines Belgium will become one airline segment within the group from 1st  March.

Condor, Thomas Cook Airlines UK and Thomas Cook Airlines Belgium will become one airline segment within the group from 1st March. Photo: Wikipedia

The world’s oldest travel group said on Tuesday that Condor, its German airline brand, Thomas Cook Airlines UK and Thomas Cook Airlines Belgium would become one airline segment within the group from March 1.

The move is part of a turnaround plan, the effects of which began to kick-in late last year. The company, which was thrown a lifeline by lenders last May, has seen a steady improvement in its finances and a pick-up in demand in recent months.

The new airline management board will be chaired jointly by Christoph Debus, group head of air travel, and Ralf Teckentrup, Condor’s chief executive, the company said. Former easyJet and KLM executive Cor Vrieswijk will take the reins as chief operating officer of Thomas Cook Airlines UK next month.

“At time when the European airline industry is experiencing major change, we believe that our airline will be stronger as one integrated business,” said Debus.

Frank Pullman will retire as managing director of Thomas Cook Airlines UK next month, the company said…..

Read the full story at Reuters…..


Reuters
5th Feb, 2013



[Reuters] U.S. carrier Delta Air Lines said it had bought Singapore Airlines‘ 49 percent stake in Britain’s Virgin Atlantic for $360 million (223.7 million pounds) and agreed a transatlantic joint venture with Virgin.

The airlines said they would file an application with the U.S. Department of Transportation for competition clearance

The airlines said they would file an application with the U.S. Department of Transportation for competition clearance: Photo: Wikipedia

Virgin and Delta on Tuesday said under the joint venture they would share costs and revenues on routes between Britain and North America.

The pair plan to cooperate on services between New York and London, with a total of nine daily round-trip flights from London Heathrow to John F. Kennedy International Airport and Newark Liberty International Airport.

“Our new partnership with Virgin Atlantic will strengthen both airlines and provide a more effective competitor between North America and the U.K., particularly on the New York-London route, which is the largest airline route between the U.S. and Europe,” said Delta Chief Executive Richard Anderson.

The airlines said they would file an application with the U.S. Department of Transportation for competition clearance and that the deal would need to be reviewed by the U.S. Department of Justice and the European Union’s competition regulator.

The deal will enable Delta to expand at London’s Heathrow airport, a lucrative hub for corporate passengers where landing slots are generally hard to acquire. Virgin is the second-largest carrier at Heathrow after IAG’s British Airways.

Heathrow, Europe’s busiest airport, is operating at close to full capacity after Britain’s coalition government blocked its expansion in 2010.

British entrepreneur Richard Branson said he would…….

Read the full story at Reuters……

 


Reuters
11th Dec, 2012



[Reuters]  Britain’s Ministry of Defence (MoD) said on Tuesday it was considering selling its 2,500-kilometre long aviation fuel network to generate income for the government looking to reduce its debt burden.

 Britain's Ministry of Defence (MoD) said today it will launch tender if sale plan approved.  Photo: Wikipedia

Britain’s Ministry of Defence (MoD) said today it will launch tender if sale plan approved.
Photo: Wikipedia

The ministry launched a consultation on the sale on Tuesday and said it would call for an official tender if it decided to go ahead with the sale, a spokeswoman said.

“The benefits of selling GPSS (Government Pipeline and Storage System) include: generating a capital receipt for government; enabling increased private sector investment in the pipeline in order to increase the resilience of the system; and allowing commercial development,” the ministry said in a legislation document.

The spokeswoman said the ministry could not speculate on how much the network was worth.

The legal framework needed for the sale passed a first hurdle on Tuesday when the publication of the Draft Energy Bill proposed to allow the sale.

The final Energy Bill is expected to pass through Parliament in……

Read the rest of this story at Reuters…..


Reuters
Tue May 22, 2012



[Reuters] Deutsche Lufthansa plans to seek large compensation payments from Berlin airport.

Berlin Brandenburg Airport will not open on 3 June as planned due to insufficient fire-prevention safeguards

Berlin Brandenburg Airport will not open on 3 June as planned due to insufficient fire-prevention safeguards.  Photo: Wikipedia

May 13 (Reuters) – It’s seeking the monies from the operators of Berlin‘s newest airport as the delayed opening in Germany’s capital city may inflict unforeseen costs on the country’s biggest airline, Die Welt reported, citing executive board member Carsten Spohr.

Costs will include spending on training additional staff needed to handle an expected increase in passenger volumes at Tegel airport, Spohr was quoted as saying in an interview.

Tegel will stay open after a decision this week by Berlin operators to delay the opening of the city’s new airport, scheduled for June 3, until…..

Read the full story at Reuters


BERLIN
Sun May 13, 2012



[Reuters] Delta Air Lines Inc will buy a Pennsylvania oil refinery from ConocoPhillips for US$150-million, an audacious bid to save money on fuel costs by investing in a sector shunned by many of the biggest oil firms.

Swissport Fueling employee Daniel Berg disconnects the main fuel line after refueling this Delta AirLines jet at Phoenix Sky Harbor International Airport: Jeff Topping/Getty Images

Atlanta-based Delta said the first ever purchase of a refinery by an airline would allow it to cut US$300-million annually from jet fuel costs, which reached US$12-billion last year. It said production at the refinery along with other agreements to exchange refined products for jet fuel would provide 80% of its fuel needs in the United States.

The deal for the idled 185,000 barrel per day Trainer, Pa., refinery, which has puzzled analysts since it first surfaced last month, will come as some relief to politicians and officials, who had feared thousands of lost jobs and a potential summer spike in fuel costs if the plant was shut permanently.

And while the initial investment is no more than a wide-body jet liner, even including an additional $100 million to upgrade the plant to maximise jet fuel production, it will put Delta in the unique position of hoping that the recent rebound in refinery profit margins — normally an indication of added costs for a fuel consumer — doesn’t prove too fleeting.

While Delta will remain hostage to fluctuating crude oil costs, the facility would enable it to save on the cost of refining a barrel of jet fuel….

Read the full Reuters story at Energy…..


May 1, 2012