Air Transportation

British Airways mustn’t cave over strike threat

24 Jul 2003

A strike would hurt the airline, but unlike many European rivals, it can afford it. The longterm cost of backing off would be much worse.

Swiss International casts around for rescuers

14 Jul 2003

Lufthansa could perhaps justify wading in if only to take out a competitor. But a deal would be messy, offering scraps for investors. There are unlikely to be many takers for the old Swissair. Switzerland Inc burned its fingers two years ago when it rescued the airline.

Holiday firms may embark on mergers – report

15 Jun 2003

Times are certainly tough for European holiday operators. But further consolidation is not the answer. Both Thomas Cook and Kuoni have shot down rumours of a tieup. Indeed, all such stories should be taken with a dollop of salt.

EU gets OK to negotiate aviation pact with US

6 Jun 2003

An open skies deal would open the way towards rationalisation of Europe's tattered airline industry. But this is only a first step on a very long road.

Ryanair tries to wound Easyjet

3 Jun 2003

The Irish carrier is slashing fares to ribbons deliberately to hurt its struggling rival. Its own returns may suffer but Easyjet will hurt more

European airlines should merge – but won’t

23 May 2003

Airline bosses recognise that excessive fragmentation is compounding the industry s problems. But red tape, Pollyannaish management and political opposition still stand in the way of consolidation.

European airlines face bleak outlook

9 May 2003

Things look really ghastly: revenues are down thanks to Iraq and Sars and carriers are burning through mountains of cash again. But this may be what the industry needs to shake off valuedestroying practices.

Easyjet faces questions on business model

8 May 2003

The nofrills airline has gone for growth by competing headon with incumbent carriers. The problem is that it is starting to look suspiciously like a conventional carrier itself.

Concorde to retire from service

10 Apr 2003

Poor economics have finally driven the inefficient supersonic aircraft from the skies. Yet another sign that the conspicuous consumption that marked the long bull market is going out of style.

Airlines brace themselves for war

20 Feb 2003

For all their survival planning, most carriers still don t know what is about to hit them. Equity investors should stay on the sidelines until the picture is clearer.

Ryanair pays KLM E24m for Buzz

31 Jan 2003

KLM could not afford to fund its lowcost subsidiary. And it could do without the distraction from its core business. Ryanair investors had better get used to acquisition risk. The lowcost airline industry is so fragmented that organic expansion won't do.

US tables plan to relax rules on European airlines

24 Jan 2003

To preserve unequal Open Skies pacts between Europe and the US, Washington is willing to allow some crossborder deals. It s cleverly timed, but Europe should stick to its guns and demand equal treatment with the US.

Kuoni is safe from a Tui takeover

22 Jan 2003

Tui is in no condition to make a major acquisition. The tour operator's debt burden alone should put the persistent rumours to rest. The entire travel sector is struggling, but consolidation doesn t seem likely to be the answer to its problems.

Letter to the Editor: Ryanair should wing it

12 Dec 2002

Ryanair faces EU state aid probe

11 Dec 2002

On one level this is ironic. The airline has campaigned loudly against state subsidies for the industry. But the move may reignite concerns about the scalability of the lowcost model.

Ryanair faces EU state aid probe

11 Dec 2002

Flight of irony

30 Sep 2002

Spot of turbulence

12 Aug 2002

Maintaining altitude

6 Aug 2002

Grounded

2 Aug 2002