Airlines

HNA journey lurches to fitting return home

20 Feb 2020

The Chinese conglomerate was already cash-strapped before the coronavirus hammered travel. Selling assets has been a struggle, leaving $80 bln of debt piled up. A government bailout in the making should imprint a strong reminder about the risks of costly overseas adventures.

Gulf thumbs up may limit new IAG CEO’s horizons

19 Feb 2020

Qatar Airways has upped its stake in the BA-owner to 25%. It’s a vote of confidence in Luis Gallego, who takes over the controls from Willie Walsh next month. But having a larger non-EU shareholder may reduce his scope for deals, especially across the Atlantic.

Delta’s climate journey needs better flight plan

14 Feb 2020

The airline is committing $1 bln over 10 years to be carbon neutral. CEO Ed Bastian makes the right noises from planting trees to working with stakeholders. But these grand pledges lack detail and accountability. That needs to change for such goals to be taken seriously.

Ryanair’s budget can stretch to truer green boasts

5 Feb 2020

The low-cost carrier has been ticked off for promoting itself as a low-carbon emitter. True, its planes are getting more efficient, but it’s still a huge polluter. Ryanair’s profitability means boss Michael O’Leary can afford to match rival easyJet in paying to offset its CO2.

Flybe is ominous UK test flight for Johnsonomics

15 Jan 2020

Britain has rescued the struggling regional airline operator by deferring a tax bill, and more help could follow. Boris Johnson can trumpet his aid for poorer bits of the UK. But downgrading climate change and free markets sends a grim signal of the prime minister’s priorities.

Plane woes cast doubt on Beijing’s DIY tech plan

14 Jan 2020

The C919, intended to compete with Airbus and Boeing commercial jets, is behind schedule and riddled with problems despite vast state support. China’s plan to replace foreign hardware and software with local versions may struggle to take off for similar reasons.

Aussie fires could be tipping point for carbon tax

13 Jan 2020

Horrendous bushfires are pushing CO2 emissions cuts ever further into the spotlight. The scope for sharp hits to earnings at domestic champions like airline Qantas has stopped Canberra properly pricing carbon before. But inaction is becoming increasingly unsustainable.

Rising fares squeeze Ryanair’s budget mantra

10 Jan 2020

The low-cost carrier lifted its full-year earnings forecast by 17% after a bumper holiday season. Boss Michael O’Leary can thank Thomas Cook’s demise and grounded 737 MAX planes for dearer tickets. But price hikes dent the halo of the self-appointed patron saint of cheap flights.

IAG dealmaking will outlast Willie Walsh

9 Jan 2020

The Irishman is disembarking after nine years at the helm of the BA and Iberia owner. The holding structure he led from its birth has been more successful than Air France-KLM and makes it easier for his successor to go shopping, say for a carrier that flies to South America.

Greta Thunberg will clog EU budget-airline engines

2 Jan 2020

Climate change will make regulators rethink free carbon credits and impose fuel taxes, hitting easyJet and Norwegian Air hard. More pain would come if the teen activist-inspired drop in Swedish air travel spreads across Europe. All in, 48 bln euros of industry value is at risk.

M&A bankers will turn climate risk into clients

19 Dec 2019

The financial impact of global warming is one of the biggest strategic issues CEOs face, yet it plays a small role in dealmaking. That might change in 2020 as shifting regulation and consumer habits start to affect the bottom line, giving climate-conscious advisers an edge.

United flies back to bumpy governance

5 Dec 2019

The $22 bln airline is bumping CEO Oscar Munoz up to executive chairman and giving Scott Kirby the control stick. It undoes three years of having an independent chair in the cockpit. Activists inspired that change. United’s new flight path may put it back on their radar.

EasyJet finds budget way to offset Greta Thunberg

19 Nov 2019

The low-cost carrier will pay 25 mln pounds a year to compensate for CO2 emissions. That’s less green than it sounds. The benefits of offset schemes are disputed and, at just 25 pence per passenger, won’t change behaviour. It’s more about countering the Swedish teen’s guilt trip.

Asia’s airports fly far higher than its carriers

5 Nov 2019

Thai Airways’ market value has shrunk by a third this year to $600 mln, and the loss-making airline says it is running out of time. Airports of Thailand, by contrast, is worth $38 bln and is a top performer. It’s a light signal for investors eyeing the region’s travel boom.

Ryanair’s ascent could yet hit a 737 MAX ceiling

4 Nov 2019

The European budget carrier’s shares have soared, mainly since a price war is proving less painful than feared. Yet darker clouds lie ahead. Delays in reviving the troubled jet are crimping growth in passengers. Without the more efficient plane, costs will be harder to control.

Boeing governance fig leaf is too little, too late

14 Oct 2019

The $211 bln airplane maker stripped CEO Dennis Muilenburg of his role as chairman. Ensuring he is focused on the 737 MAX mess is an overdue step, but insufficient. Wells Fargo offers one example of how efforts to fix a culture take time, and eventually an outsider’s perspective.

Where are Boeing’s boardroom engineers?

8 Oct 2019

The aircraft maker is still playing defense as it tries to fix problems with its 737 MAX after two fatal crashes. CEO Dennis Muilenburg is the face of Boeing’s mistakes, but the real flaws lie with the board. It’s dominated by financial expertise rather than engineering nous.

Viewsroom: WeWork overhaul won’t be enough

26 Sep 2019

Adam Neumann lost his CEO role and control of the shared-office provider after its valuation plummeted in preparation for a now-postponed IPO. But WeWork’s business model remains a problem. Plus: Thomas Cook’s collapse hits China’s Fosun. And: parsing financial climate pledges.

Thomas Cook crash is dry run for Brexit failures

23 Sep 2019

The UK government refused a 150 mln pound bailout of the travel firm, citing moral hazard, but will fund the repatriation of thousands of stranded Brits. A chaotic departure from the EU will leave more businesses ailing. That will test Prime Minister Boris Johnson’s tough stance.

Ryanair boss’s bonus gets an apt level of anger

19 Sep 2019

Almost half the budget airline’s shareholders voted against a package that could see CEO Michael O’Leary get 99 mln euros over five years. They stand to gain if he hits his targets. But given it looks relatively easy to do so they are right that it’s only barely acceptable.