Tag Archives: BA

Thomson and BA retain faith in troubled Dreamliner

Posted on by
Reply

Thomson and BA retain faith in troubled Dreamliner

By Ian Taylor

Thomson and BA retain faith in troubled DreamlinerThe bosses of British Airways’ parent IAG and Thomson Airways were united in their confidence in the new Dreamliner at this year’s Travel Weekly Globe Travel Awards.

The world’s Boeing 787 fleet remained grounded as Travel Weekly went to press, with investigators focused on the manufacture of batteries for the aircraft following an emergency landing by an ANA 787 in Japan last week.

Boeing has postponed deliveries of the aircraft, putting Thomson Airways’ 787 programme in jeopardy.

However, Thomson still expects to receive its first 787 next month and begin flights on May 1.

Speaking at the awards, Chris Browne, managing director of Thomson Airways, said: “Veterans in the industry understand teething problems occur.

“At Thomson we have been waiting a very long time [for the Dreamliner] and we are confident in the safety of the Dreamliner. I have every confidence in Boeing to fix this issue.”

International Airlines Group chief executive Willie Walsh described the delivery delay as “temporary”, but warned “deliveries could be affected” if the grounding is extended. BA is also due to receive its first 787 in May.

Walsh said: “I remain confident about the 787. It is not unusual for a new aircraft to suffer problems. We remain committed to the aircraft. The battery issue has come as a surprise. We have to wait for the authorities to report.”

The US Federal Aviation Administration (FAA) grounded the aircraft after burn marks on a lithium-ion battery in the ANA aircraft matched those on a battery following a fire aboard a Japan Airlines 787 in Boston a week earlier. The FAA said the ban on flying would last until the batteries are demonstrated to be safe.

About 1,000 industry guests attended the Globes at London’s Grosvenor House last Thursday, presented by comedian Michael McIntyre, with entertainment from X Factor singer Jahmene Douglas.

IAG faces €90m emissions trading bill in 2012

Posted on by
Reply

IAG faces €90m emissions trading bill in 2012

Nov 11, 2011 07:37AM GMT

British Airways and Iberia parent International Airlines Group faces a €90 million bill in the first year of the European emissions trading scheme from 2012.

The figure emerged today as IAG released a raft of fresh financial information to the City. Fuel costs are forecast to rise by 14% next year, while other unit cost will be flat despite planned capacity growth of 2.5%.

IAG expects an operating profit of around €1.5 billion in 2015 achieved through an increase from €400 million to €450 million in annual synergy targets, structural profit improvements of €400 million plus organic growth of €150 million.

Optimisation of the British Airways-American Airlines transatlantic joint venture is due to deliver at least €150 million in benefits.

Further savings of at least €100 million are expected through the creation of Spanish low cost outfit Iberia Express and a similar figure from improving hub operations at Madrid’s Barajas airport.

Cost efficiency gains from the introduction of new aircraft into the fleet is estimated at around €250 million. IAG’s planned capital expenditure programme was detailed as totalling €1.1 billion in 2011, €1.6 billion next year, €2 billion in 2013, €1.35 billion in 2014 and €1.6 billion in 2015.

Capacity growth rate of 2.5% a year up to 2015 is forecast.

BA parent agrees €355 million bid for BMI

Posted on by
Reply

BA parent agrees €355 million bid for BMI

Nov 04, 2011 08:30AM GMT

BA parent agrees €355 million bid for BMI

British Airways/Iberia parent company International Airlines Group has agreed to buy loss-making Heathrow rival BMI from Lufthansa.

The deal, which will be seen as a major coup for IAG chief executive Willie Walsh, is expected to be completed early next year. Today’s announcement will come as a major blow to Virgin Atlantic which faces being further marginalised at the London hub.

BMI controls 9% of valuable take-off and landing slots at Heathrow, which is now operating at full capacity after plans to build a third runway were scrapped.

But the deal with IAG is likely to attract a competition probe over potential dominance of slots at Heathrow. BMI has 300 flights a week operating from Heathrow and recently sold six sets of slots to BA.

“It gives BA the opportunity to grow in the UK,” said Walsh, who admitted that the deal, reported to be worth €355 million, had yet to be finalised.

Walsh said the deal will mean IAG will have around half of the slots at Heathrow but this is still less than Lufthansa at Frankfurt and Air France/KLM has at Paris. The takeover of BMI will enable BA to expand its long-haul network.

Virgin Atlantic said: “British Airways’ hold over Heathrow is already too dominant and we are very concerned – as the competition authorities should also be – that BA’s purchase of BMI would be disastrous for consumer choice and competition.”

Speaking on BBC Radio 4’s Today programme this morning Walsh ruled out a bid for ailing Italian carrier Alitalia.

IAG said: “The sale and closing of the deal remain subject to conditions including a binding purchase agreement, further due diligence and regulatory clearances. It is envisaged that the purchase agreement will be signed in the coming weeks and the aim is for the transaction to be completed in the first quarter of 2012.”

BMI reported a loss of €154 million in the first nine months of 2011.