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Friday, April 9, 2010

British Airways (BA) and the Spanish airline Iberia have signed a merger deal, which will create one of the largest air carrier groups in the world.

The two announced the merger yesterday, and said that the deal, which has been expected for a long time, is to be implemented by the end of 2010. The move will make a group with a market value of US$8 billion. The deal has been negotiated since July 2008.

Under the plan, both companies keep their own brands and operations, but will be owned by International Airlines Group, a new holding company. It will be listed in London, but taxed in Spain.

The airlines believe the merger will save $530 million annually. In February, BA reported a loss of $102.4 million for the final three quarters of 2009, whilst Iberia posted an operating loss of $629 million.

Meanwhile, investors in BA will receive an IAG share for every BA share they own, and stockholders in Iberia 1.0205 shares for each share in the Spanish airline; thus, BA shareholders will take 55% of IAG.

“The merged company will provide customers with a larger combined network,” commented BA chief executive Willie Walsh. “It will also have greater potential for further growth by optimising the dual hubs of London and Madrid and providing continued investment in new products and services.”

Meanwhile, Iberia chief executive Antonio Vázquez remarked: “This is an important step in creating one of the world’s leading global airlines that will be better equipped to compete with other major airlines and participate in future industry consolidation.”

Independent aviation specialist James Halstead said he believed the merger was necessary for BA to remain competitive amongst other European air carriers. “BA’s unique position at Heathrow could help it survive for a short while, but in the long run it needs more than just Heathrow. The main point of the Iberia deal is to be able to cut costs and put the combined company in the position that Air France-KLM and Lufthansa are already in,” he said, quoted by The Independent.

Friday, February 5, 2010

Global stock markets fell steeply on Thursday on investor concerns about the growing sovereign debts of European Union member states Greece, Portugal, and Spain. A report of a rise in weekly jobless claims in the United States contributed to the market gloom. The MSCI World index fell the most in over nine months. Currency and commodities markets also posted major moves.

The euro fell more than one percent against the US dollar to an eight-month low; against the yen it fell 2.2%, approaching a one-year low. The price of crude oil fell 5% to US$73.14 per barrel and gold slid 4.4% to US$1,063 per ounce.

Greece’s Prime Minister, George Papandreou, announced an austerity program, but that is now threatened by plans by the largest trade union for a national strike. In 2009, Greece’s budget deficit was 12.7% of the nation’s gross domestic product (GDP). Papandreou’s plan called for that to drop to 3% by 2012.

Gary Jenkins of Evolution Securities told the Financial Times, “[t]he risk aversion trade is back on as the debt problems of Europe are for the first time bringing down global markets. Corporate earnings may come in strongly [in the US], but investors are more concerned about the possible default of a sovereign European nation.”

“This is a sovereign problem, and it’s hitting everything,” said Keith Springer of Capital Financial Advisory Services to Reuters. “If other European countries are having trouble like Greece, then it’s a big problem for banks, and the banks are the foundation for everything. European banks will be in trouble and that will carry over to all stocks.”

“The focus is shifting toward Spain and Portugal, where the deficit-reduction plans have been far less ambitious than Greece,” said Kornelius Purps of UniCredit Markets & Investment Banking to Bloomberg.

Concerns in Portugal centered on political tension surrounding a regional spending bill. In Spain, the source of worry was reportedly because the government backed down from promised pension reform.

European Central Bank President Jean-Claude Trichet sought to ease investor fears, in part by noting that the deficit in the US is expected to hit 10% of GDP in 2010, compared with about 6% in the eurozone. He said that he was “confident” that Greece is moving in the right direction.

Trichet did admit that it is of “paramount importance” for Greece, Portugal and Spain to get their public finances under control.

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Wednesday, September 23, 2009

Michael Jackson’s This Is It, a documentary film based on world-famous singer Michael Jackson rehearsing for his last tour before his untimely death, will be premiered in at least 15 cinemas in cities all over the world simultaneously.

The film is due to premiere on October 27 and October 28. The world cities may be in different time zones with different dates but they will all be premiering the film at exactly the same time. One such premiere location is Los Angeles, in the US state of California, which will have the film starting at 1800 PT. Another simultaneity is the Odeon Leicester Square cinema in London, England, which will start at 0100 GMT on October 27.

Other locations holding concurrent premieres are the South African city of Johannesburg, New York City in New York, German capital Berlin, Russian capital city Moscow, Japanese capital Tokyo, Australian city Sydney, French capital Paris, South Korean city Seoul, and Rio de Janeiro, a large city in Brazil.

Michael Jackson died on June 25, 2009 aged 50, after suffering from a cardiac arrest. The movie will feature some of the rehearsal footage made in the weeks before his death. In total, there will be at least 25 cinemas premiering the film, but not all of them will be released simultaneously. Sony Pictures, the film production company, have yet to announce the other cities involved. Tickets for the film will be available to purchase from Sunday, September 27. The film is directed by Kenny Ortega, who previously directed all the High School Musical films. He also directed some significant Michael Jackson events, such as his This Is It concert and Jackson’s memorial service.

Jeff Blake, chairman of worldwide marketing and distribution for Sony Pictures, said: “Michael Jackson has an army of fans everywhere around the world… we are giving the audiences an incredible opportunity to join together in celebration of Michael Jackson’s incredible career.”

Monday, October 13, 2008

In an attempt to speak with as many candidates as possible during the 2008 Canadian federal election, Wikinews has talked via email with John Kittredge. John is a candidate in Toronto, Ontario’s St. Paul riding, running under the Libertarian Party banner. Libertarians are a minor, registered political party; they are looking to earn their first ever seat in the House of Commons.

Incumbent Carolyn Bennett of the Liberals is running against Libertarian Kittridge, Conservative Heather Jewell, New Democrat Anita Agrawal, and Justin Erdman, a Green. Bennett was the Minister of Health under previous Prime Minister Paul Martin’s Liberal government. Since it was created in 1935, the riding has been batted about between the Liberals and the now defunct Progessive Conservative party.

The following is an interview with Mr. Kittridge, conducted via email. The interview has had very limited editing, to eliminate in-text mentions of website addresses, but is otherwise left exactly as sent to Wikinews.

Saturday, February 12, 2011

In the final quarter of 2010, airline Air Canada (TSX:AC.B) earnings rose to 134 million CAD, 42 cents per share, capping a sharp return to profitability in 2010.

The year resulted in the company’s highest-ever earnings before interest, taxes, depreciation, amortisation, and rent (EBITDAR) of $1.39 billion, 707 million more than the previous year. Operating income for fourth quarter was reported as $85 million, which compared very favourably with an $83 million loss in 2009.

Only 21 months ago Air Canada was threatened with bankruptcy and using its financial weakness in negotiations with its employees, achieving status quo contracts. With labour contracts scheduled to end this month and next, the strong position of the airlines is expected to stiffen union resolve to share in the increased net revenues.

Those revenues were helped by increasing numbers of passengers and reducing costs, as well as foreign exchange gains. International travel, especially to the Pacific region, led the rises. US travellers through the main Toronto hub more than doubled, indicating the increase in foreign air traffic to and through Canadian airports.

Aviation articles by Wikinewsie Iain Macdonald.

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