Sign In

Air Transportation

EasyJet’s life is about to become harder

23 Jan 2017

Rivals’ misery helped boost the budget airline’s revenue in the last three months of 2017. New boss Johan Lundgren is optimistic passenger numbers will grow but may run out of beginners’ luck. Rising fuel costs and a fightback by Ryanair make rosy promises difficult to deliver.

HNA’s hard job: put the M&A machine into reverse

12 Jan 2018

The acquisitive Chinese group has been buffeted by regulatory setbacks and signs of financial stress. Now trade in two key listed units in China is halted, suggesting a corporate reshuffle could be looming. HNA will find shrinking back to health tougher than breakneck growth.

Ryanair pilots are key to regaining European crown

11 Jan 2018

Lufthansa overtook the Irish carrier to become Europe’s largest airline in 2017. Though acquisitions boosted the German group, Ryanair’s target of 200 mln passengers by 2024 depends on steady expansion. Unless it can win over irate pilots, its growth prospects will be grounded.

Ryanair investors faintly see higher-cost future

18 Dec 2017

They have knocked over 2 bln euros off the budget airline’s market value since it caved in and recognised unions on Friday, averting a Christmas strike. That’s more than the extra staff outlays may be worth. If easyJet is a guide, though, Ryanair’s expenses will rise further.

Twin tailwinds help Ryanair weather pilot crisis

31 Oct 2017

The 20 bln euro no-frills airline will meet its full-year profit goal despite a rostering mess that cost it thousands of flights. Passenger numbers were up 11 pct in the six months to September. Ryanair’s fare cuts helped, but it also got lucky with rivals’ bankruptcies.

Wanderlust, not shopping, drives China tourism 2.0

9 Oct 2017

More people spent China's "Golden Week" holiday on Thai beaches than in Hong Kong malls. As Chinese tourists eschew shopping for sight-seeing, offshore luxury retailers could lose custom. But as the travelling middle class spreads out, there are bound to be more winners.

Xi Jinping can’t get Chinese planes to run on time

29 Sep 2017

As millions of Chinese people set forth to travel during the "Golden Week" holiday starting Sunday, many could spend more time in the departure lounge than on the beach. Their airports are the world's most delayed, but instead of reforming airspace, Beijing prefers fiddling data.

Etihad’s airlines fail, but odd CDO remains aloft

17 Aug 2017

Air Berlin and Alitalia are insolvent. Their debt is probably worthless, except for an unusual collateralised debt obligation that part-owner Etihad used to fund them. It is trading at a price that suggests Etihad might bail it out. Fuzzy guarantees often end badly.

Cathay’s ugly first half points to further woes

17 Aug 2017

Cathay Pacific has posted its worst half-year loss in at least two decades. Despite attempts to cut costs, the Hong Kong carrier is still locked into costly fuel hedging contracts and faces tough competition. Investors shouldn’t expect a return to profitability any time soon.

United Tech avionics bid may start bigger dogfight

7 Aug 2017

The $95 bln conglomerate is mulling an offer for Rockwell Collins, right after Boeing’s margins-sapping entry into the business. Honeywell is under pressure to sell its unit. The combination of earnings and activist pressure leaves aviation executives with some tough choices.

Air India fix would give Modi reform miles

21 Jul 2017

The carrier is a travelling advertisement for India's inefficiencies. It has made losses for nine years and turnaround efforts have failed. A sale may push a multi-billion dollar writedown on lenders, but would validate Prime Minister Modi's reform credentials.

China’s latest logistics IPO is hard to unpack

27 Jun 2017

Alibaba-backed Best Inc could raise $1 bln in New York, a few months after a rival's disappointing debut. The loss-making group is faster-growing and more diverse. But the extra complexity could make this a hard sell for already-wary investors.

Trump air-traffic plan flies with rare substance

5 Jun 2017

That's because it's based on Canada's model, years of debate and a 2016 House bill. Updated tech is overdue and the non-profit structure would cut out government without risking a private-sector windfall. Yet it's still no easy win, underlining the challenge for vaguer policies.

U.S. air-traffic revamp is overdue for boarding

2 May 2017

The White House wants to privatize flight control and overhaul ancient systems at an estimated cost of $35 bln. Canada pioneered a self-funding, stakeholder-governed model. A similar approach could work for America if carriers, politicians and others can dump their baggage.

Alitalia reaches final destination, again

25 Apr 2017

Employees at the loss-making Italian airline rejected a restructuring. A bankruptcy is likely, and a breakup or sale. Alitalia has been here before. Ending its agony would beat another fudged rescue, but could feed political discontent ahead of elections.

American Airlines buys China upgrade, earns points

28 Mar 2017

The carrier is joining forces with China Southern, and taking a sub-3 pct stake for $200 mln. AA ought to end up with more Chinese passengers and fewer empty seats. Ideally it wouldn’t have to buy a stake to do so. Consider it one of the irksome hidden costs of air travel.

Cathay can’t fly around Hong Kong’s fading hub

15 Mar 2017

The Hong Kong carrier's first loss since 2008 points to a deeper threat. Asian rivals are undercutting it on long-haul trips; budget airlines poach the short ones. But Cathay is still adding destinations. Fewer, high-value routes and aggressive restructuring would fly further.

Air France takes off, but only for a short flight

16 Feb 2017

The French carrier's profitability improved faster than expected in 2016, while headcount and debt levels fell. Yet the airline's real progress is slower than headline numbers suggest. The recovery is largely thanks to cheap fuel, and that tailwind is likely to be temporary.

Ryanair snaffles Lufthansa’s flight plan

10 Jan 2017

The Irish low-cost carrier in 2016 ousted Lufthansa as Europe's biggest airline by passengers. Boss Michael O'Leary has proved better at learning from his rival than the other way round. A full-blown attack on Lufthansa's home turf via a new Frankfurt base is in the offing.