Airlines

Corona Capital: Gaming M&A, Beauty’s bold face

9 Dec 2020

Concise views on the pandemic’s corporate and financial fallout: Consolidation in video games reaches the next level as Sweden’s MTG buys Hutch Games for $375 million; and Spanish cosmetics, fashion and perfume group Puig predicts revenue will double by 2023.

Corona Capital: Chevron, Boeing, OPEC, Orange

3 Dec 2020

Concise views on the pandemic’s corporate and financial fallout: Chevron cuts spending, prudently; Boeing orders are a solid step; OPEC makes up its mind; and Orange’s Belgian deal has some juice.

Tui’s third bailout puts German taxpayers in shade

3 Dec 2020

Europe’s largest tour operator has secured a state-backed 1.8 bln euro rescue to ensure it survives until 2021. Shareholders face dilution but creditors get bailed out. By taking non-voting stock and capping any future stake, the government misses out on the benefits of recovery.

Corona Capital: Skis, Italian banks, Dividends

26 Nov 2020

Concise views on the pandemic’s corporate and financial fallout: Europe’s hopes for a common ski policy hit a mogul; Italian lender Credito Valtellinese faces a lonely bidding war; Aviva’s payout cut is less stingy than it looks.

Corona Capital: Cash stockpiles, Empty real estate

23 Nov 2020

Concise views on the pandemic’s corporate and financial fallout: U.S. companies hoard money; retailer rout causes real estate double whammy.

Corona Capital: U.S. airlines

20 Nov 2020

Concise views on the pandemic’s corporate and financial fallout: The CDC issued a warning to Americans not to travel over the upcoming Thanksgiving holiday as Covid-19 cases surge. Airlines, once again, are going hat-in-hand to Washington.

Boeing’s next big hurdles are out of its control

18 Nov 2020

The aircraft maker got a lift after regulators approved returning its 737 MAX planes to the skies. While an important step for CEO David Calhoun’s turnaround, a pandemically challenged travel industry awaits. Further delivery delays will exacerbate Boeing’s worrisome cash burn.

Corona Capital: Vaccine storage

16 Nov 2020

Concise views on the pandemic’s corporate and financial fallout: Warehouse centers get another boost with Moderna’s vaccine prospects.

Tui makes cheeky last grab for German largesse

11 Nov 2020

Europe’s largest tour operator may get another 1.8 bln euros of funds from Berlin. That would allow CEO Friedrich Joussen to survive the winter and delay a dilutive equity issue. Still, with Covid-19 vaccines emerging and markets buoyant, the case for more bailouts looks weak.

Corona Capital: Salvatore Ferragamo

10 Nov 2020

Concise views on the pandemic’s corporate and financial fallout: Faded heels-and-loafers brand Salvatore Ferragamo could benefit from a coronavirus vaccine-induced return to airport shopping, but the Florentine fashion house would still need a makeover.

Corona Capital: Warren Buffett, Burger boost

9 Nov 2020

Concise views on the pandemic’s corporate and financial fallout: Rising share prices take the sting out of Berkshire Hathaway’s Covid-19 profit hit; and McDonald’s reports a good quarter for American nugget-lovers.

Italy’s oldest bank risks becoming a new Alitalia

5 Nov 2020

Banca Monte dei Paschi di Siena needs another bailout. A government rescue would cost around 2 bln euros. Winding it down and selling the rump to a rival like UniCredit would be politically toxic. Like Rome’s loss-making airline, it is turning into a lasting burden on taxpayers.

Corona Capital: GM earnings, Third-quarter readout

5 Nov 2020

Concise views on the pandemic’s corporate and financial fallout: General Motors swerves around Covid-19 potholes; and U.S. companies look to have emerged from a difficult three months in better shape than expected.

Corona Capital: Friendly’s and Dunkin’ Donuts

2 Nov 2020

Concise views on the pandemic’s corporate and financial fallout: Two Massachusetts casual-dining chains change hands, one in bankruptcy. Friendly's found Covid-19 even more unfriendly than did Dunkin' Brands.

Corona Capital: Netflix price hike

30 Oct 2020

Concise views on the pandemic’s corporate and financial fallout: The streaming-video service hiked the price on subscriptions as binge-watching booms during the pandemic.

Boeing’s question is not how much but how long

28 Oct 2020

The $86 bln aerospace firm jettisoned $5.1 bln of cash in the latest quarter, not much better than the three months before. Other airborne industries are suffering too, but despite a reasonable balance-sheet cushion, Boeing is even less suited to endure prolonged disruptions.

U.S. airline staff now need aid more than carriers

22 Oct 2020

Southwest and American’s losses continued last quarter. But they both fortified cash resources enough to fund the status quo for at least a year. Meantime, employees are the losers from the financial and political squeeze. Fresh government help needs to more clearly benefit them.

Off-colour IAG points to prolonged air-sickness

22 Oct 2020

The owner of British Airways lost 1.3 bln euros in the third quarter. Rising infections and new lockdowns mean the next three months will be little better, dashing new CEO Luis Gallego’s hopes of breaking even by Christmas. He won’t be the only airline boss feeling queasy.

Cathay is still overweight after layoffs

21 Oct 2020

Hong Kong's flagship airline will cut 8,500 jobs and ditch its Cathay Dragon brand. That's less aggressive than some other carriers, although shareholders took it well. The cuts will only slow the cash burn rate to around HK$1.5 bln per month. More savings will have to be found.

Viewsroom: On the road again, Zambia, Super-apps

15 Oct 2020

Airlines columnist Ed Cropley boards his first plane since Covid-19 hit, and experiences travel in the pandemic era on a visit to Munich. He also discusses the financial proxy war over Zambia’s debt restructuring. Meantime, Asia goes mad for all-singing mobile applications.