Air Transportation

Capital Calls: Lufthansa/ITA

26 May 2023

Concise views on global finance: The 11 bln euro German carrier pays 325 mln euros for a 41% stake in the airline born from the ashes of Alitalia.

India’s airline turbulence will be felt abroad

17 May 2023

Go is the second carrier to go bust since 2019 despite a booming $12 bln industry. Blame price wars and debt-fuelled expansion. The airline’s legal battle with foreign lessors like Sumitomo will be messy too. It will raise the costs on efforts to turn India into an aviation hub.

Cathay’s people problem is Hong Kong’s too

10 Mar 2023

The carrier may struggle to hire fast enough to ramp up capacity. Higher salaries would be an obvious fix to lure back crew scarred by endless quarantine. In the meantime, Cathay will remain a globe-trotting reminder of the reopened city’s isolation for longer than anyone wants.

IAG takeoff weighed down by debt dilemma

24 Feb 2023

With net debt above its market value, the $9 bln British Airways owner could use a rights issue. But it’s also back in the black after a painful pandemic, and deals may yield cost savings. Boss Luis Gallego has to work out which path is likely to annoy long-term investors least.

High-flying airlines still face stiff headwinds

25 Jan 2023

EasyJet shares surged on improved expectations, as rising numbers of holiday-goers look set to push the sector back into the black. But recent meltdowns show air travel has an increasing problem with tech glitches. It’s premature for investors to settle back in their seats.

Helicopter-share backer books a cheap return trip

18 Jan 2023

Private equity firm RedBird has taken a 5% position in Blade, adding to the stake it bought when the Hamptons-shuttle operator went public in a blank-check deal. Blade stock has slumped but its revenue is growing. The SPAC rout may have thrown some babies out with the bathwater.

Capital Calls: AstraZeneca

9 Jan 2023

Concise views on global finance: The drug giant is to pay up to $1.8 bln for U.S. group CinCor Pharma to beef up its kidney and heart businesses.

Capital Calls: Southwest, U.S. jobs and wages

6 Jan 2023

Concise views on global finance: Financial bumpiness caused by the airline’s major flight disruptions should be temporary, partly due to limited competition; slower U.S. wage growth raises the chances that the Fed won’t have to crush the labor market to bring down inflation.

Capital Calls: Amazon, Flying cars

5 Jan 2023

Concise views on global finance: The $855 billion e-commerce giant's layoffs could actually help its antitrust defense; Stellantis’s possible $150 mln investment in Archer Aviation is less crazy than it seems.

Capital Calls: DoorDash puts profit on the menu

30 Nov 2022

Concise views on global finance: The food-delivery service’s job cuts should pave the way to a stronger bottom line.

Capital Calls: Cross-border M&A, Riches to rugs

9 Nov 2022

Concise views on global finance: The market reaction to U.S.-based Chart Industries’ $4.4 bln deal to buy Scotland’s Howden reinforces the idea that it’s a bad time to shop overseas, while Peloton’s founders are shifting gears with a new bespoke carpet business.

Capital Calls: Chevron, Pickleball

29 Sep 2022

Concise views on global finance: The oil driller has sold its California headquarters building and is moving employees to Texas, while one of the fastest-growing U.S. games is beefing up its professional ambitions with an investment from basketball superstar LeBron James.

Capital Calls: EasyJet, Nexi

27 Sep 2022

Concise views on global finance: The budget airline scraps its offset plan and focuses efforts on cleaner technology; the 12 bln euro payment company’s valuation gap with peer Worldline looks increasingly hard to justify.

Private jet crackdown is idea that could fly

25 Aug 2022

The French government is mulling clamping down on corporate flights, on both environmental and societal grounds. Whether it imposes punitive taxes or strict restrictions, the plan has few obvious downsides. It would be even more effective if other European countries hop aboard.

Capital Calls: Disney turns screws on Netflix

10 Aug 2022

Concise views on global finance: The Magic Kingdom now has as many subscribers to its streaming products as Netflix. It needs all the fairy dust it can get ahead of a looming price war.

Cathay Pacific charts hopeful course for Hong Kong

18 Jul 2022

Huge capacity cuts and a bailout put a lid on debt as quarantine rules keep its home city isolated. Its shares, better performing than Singaporean and Western peers, imply the airline and the Asian hub will make a quick turnaround. But it faces a harder slog back to normal.

Americans’ urge for the open road knows few bounds

1 Jul 2022

Travelers book flights for convenience – and in theory rising gas prices help that trend. But time is money, too, and plane delays are increasing. Assign a reasonable value for an airport setback, and it suggests holiday travelers should blare "Holiday Road."

Airlines M&A plays regulator roulette

27 Jun 2022

Budget carrier Frontier raised its offer for peer Spirit to $2.6 bln. That’s just enough to compete with rival JetBlue’s bid. Now shareholders have to weigh merger-skeptical regulators. It’s not just a calculation of who can win, but what the buyer will give up for it to happen.

Spirit investors should pick price over certainty

15 Jun 2022

The budget airline’s shareholders have the choice of a $2.2 bln cash-and-stock offer from Frontier, or a much higher but less secure offer from JetBlue. Even adjusted for the likelihood of failure, JetBlue’s offer looks better. Frontier’s choice: pay more, or get bumped.

Aeroflot’s travails are metaphor for Russia

9 Jun 2022

Sanctions have curtailed the state-run carrier’s routes and grounded its jets. Moscow will underpin a $3 bln rights issue by raiding its rainy-day fund. As its economic isolation deepens, more oil dollars will have to be diverted to struggling domestic enterprises.