Tag Archives: British Airways

News, Politics, Government

President Obama: Please Ban WiFi on Airplanes!

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By Tom Gillis, Contributor As much as I bristle at my heavy air-travel schedule, I continue to find that the metal tube with no WiFi at 30,000 feet provides really high quality disconnected think time that simply doesn’t occur in other facets of my life. I recently went on a program with British Airways where they invited 130 people from Silicon Valley to fly SFO to LHR and work on some interesting social problems. I was struck with the high levels of engagement and enthusiasm of the participants—and in large part I attribute this to the fact that our iPhones weren’t constantly buzzing. …read more

Source: FULL ARTICLE at Forbes Latest

News, Politics, Government

India's TCS shares at record high on upbeat earnings

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Shares in Tata Consultancy Services, India’s biggest IT outsourcing firm, rose to a record high on Friday after reporting better-than-expected quarterly earnings.

TCS jumped as much as 3.84 percent to 1,724.0 rupees on the Bombay Stock Exchange after announcing Thursday that net profit had risen 16.8 percent to 38.31 billion rupees ($641 million) in the April-June quarter.

The firm, part of the steel-to-tea Tata conglomerate, counts blue-chip companies such as British Airways, BP, Citigroup and Microsoft among its main clients.

“TCS’s results were hugely positive, the highlight being a 6.1 percent volume growth, a seven-quarter high,” said Ankita Somani, an analyst with Mumbai’s Angel Broking.

TCS and its rival Infosys — which lead India’s flagship IT outsourcing industry — have both reported strong earnings this month, despite lingering uncertainty over global business conditions.

Infosys last week reported a nearly four percent rise in quarterly net profit and kept its market forecast intact.

India’s software outsourcing industry carries out a wide range of jobs for Western firms such as answering calls from bank customers, processing insurance claims and developing software.

India, with its large English-speaking workforce, accounts for at least 50 percent of the global outsourcing market.

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Source: FULL ARTICLE at Fox World News

Business, Finance, Occupation & Industry

Should You Buy International Consolidated Airlines Today?

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By Royston Wild, The Motley Fool

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LONDON — I am backing International Consolidated Airlines Group to take off in coming years as its transformation plan in Spain begins to bear fruit. The company was formed after the merger of British Airways and Iberia in January 2011 and is one of the world’s largest airline-operators, carrying more than 60 million passengers per year to more than 200 destinations across the globe.

Spanish restructuring plan starts to take hold
IAG swung to an operating loss of 23 million euros in 2012 before Iberia’s restructuring and 68 million euros post-restructuring. This compares with an operating profit of 485 million euros in the previous year.

Indeed, performance in the Spanish division has placed a lead weight on the group’s performance over the past year. Although British Airways remains resilient and generated an operating profit of 347 million euros last year before exceptionals, Iberia posted a huge 351 million euro operating loss.

However, in January Iberia‘s unions agreed to enter discussions over the firm’s comprehensive restructuring plan, and in recent weeks a deal was struck to cut 3,100 jobs at the airline. IAG‘s board has retained a strict tone with the restructuring of the Spanish arm, and I expect an improvement from Iberia to kick off in the near future and drive the group back to growth. Further, IAG is also extending its presence in the lucrative low-cost carrier space by acquiring Spanish airline Vueling, in which it already holds more than 45%. The budget airline’s board approved IAG‘s latest 9.25 euro per-share bid yesterday, and the deal has already been approved by Spain‘s market regulator.

In other positive news, the airline inked a $4 billion deal with Boeing earlier this month to convert options into the delivery of 18 of the plane builder’s 787 Dreamliner airplanes. The new hardware will be used to replace some of British Airways‘ 747 aircraft between 2017 and 2021, and IAG said it may place firm orders for its Iberia arm once the division’s restructuring plan and cost base reductions have materialized.

Earnings growth expected to snap back sharply
Investec expects earnings per share to come in at 12.2 pence in 2013, swinging back from losses per share of 13.1 pence in the previous 12-month period. The broker then expects EPS to explode 124% in 2014 to 27.3 pence.

IAG currently trades on a P/E rating of 20.1 for 2013, but that’s predicted to collapse to nine in the following year. I believe these readings provide excellent value prospects in comparison with a forward earnings multiple of 17.1 for the wider travel and leisure sector.

The expert view to growth elsewhere
If you already hold shares in International Consolidated Airlines Group and are looking to significantly boost your investment returns elsewhere, check out this special Fool report, which outlines the steps you might wish to take if you are hoping to become seriously rich from other shares. Our “Ten Steps To

From: http://www.dailyfinance.com/2013/04/11/should-you-buy-international-consolidated-airlines/

Business, Finance, Occupation & Industry

The Stocks That Margaret Thatcher Gave Us

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By Tony Reading, The Motley Fool

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LONDON — Baroness Thatcher will be remembered for many reforms, but one of enduring legacy for investors is that she gave us the stock market we know today.

Privatization became a key plank of economic policy, and nine of the firms in the FTSE 100 are the direct descendants of state-owned companies privatized during her time as prime minister.

Thirty five years ago, the precursors to BP , BAE , International Consolidated Airlines , BT , Rolls-Royce , BG, Centrica, Severn Trent and United Utilities were all state-owned enterprises. Today. they are successful blue-chip firms with a combined market capitalization of over £200 billion.

1. BP
Privatization had started in 1977 when the Labor government of James Callaghan sold a 32% stake as part of the conditions of the country’s IMF bailout. Under Margaret Thatcher‘s watch the remaining stake was sold, with two big sales in 1979 and 1987. The 1987 offering coincided with a stock market crash and the stock was left with underwriters, costing them billions.

BP subsequently grew to become the FTSE‘s biggest dividend payer, but the U.S. Deepwater Horizon disaster put paid to that. With a new alliance with Russia‘s state-owned oil company, it’s set to resume its former upwards trajectory.

2. BAE
British Aerospace (BAE) was sold off in two chunks in 1981 and 1985. BAE struggled in the 1990s and merged in 1999 with Marconi to become BAE Systems. BAE sold its 20% of Airbus to EADS in 2006 to concentrate on defense, only for new management to seek a merger with EADs in 2012 to regain exposure to commercial aerospace.

Poor strategic management may have been a counterweight to superb engineering, but a 5% yield in a — literally — defensive sector makes the company an attractive investment.

3. BT
Half of British Telecom was privatized under Margaret Thatcher in 1984, with the remaining shares sold off in 1991 and 1993. It was the first of the blockbuster utility privatizations, with the company at the time enjoying a virtual monopoly (a consortium, Mercury Communications, provided nominal competition).

Shareholders have had a roller-coaster time, with the changing structure of the industry and the technology bubble. More recently, a push into broadband has given the company a new lease of life.

4. IAG
British Airways was fully privatized in 1987, in an offer that was 11-times oversubscribed. It grew in scale with the acquisition of British Caledonian, and then in profit under CEO Willie Walsh, who did some union-wrestling of his own.

IAG was formed from the merger of British Airways and Iberia in 2010, to enjoy greater global scale. However, management is now hampered by Spanish union intransigence.

5. Rolls-Royce
Rolls-Royce is an oddity in the privatization program. It had been nationalized by Lady Thatcher‘s predecessor Edward Heath in 1971 to save it from administration after cost over-runs on the RB211 engine. The Thatcher government returned it to the private sector in 1987, since when it has prospered to be one of three global manufacturers of big engines.

In a companion piece, I’ll cover the four utility stocks.

Margaret Thatcher believed in individuals taking

Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

Delta, Virgin Atlantic Seek Antitrust Immunity to Boost U.S.-U.K. Flights

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By Rich Duprey, The Motley Fool

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Seeking to become more effective competitors on routes between North America and the United Kingdom, Delta Air Lines and Virgin Atlantic Airways have filed an application with the U.S. Transportation Department seeking antitrust immunity for their new joint venture.

The companies said in a Monday press release announcing the filing that because 60% of the slots at London Heathrow Airport are currently controlled by a joint venture of AMR‘s American Airlines and British Airways, they dominate air travel between the U.S. and the U.K. Those two airlines previously received antitrust immunity allowing allowed them to coordinate their schedules and fares.

Combining Virgin’s Heathrow slots with Delta’s U.S. network will offer significant competition in the market and serve consumers on both sides of the Atlantic, the companies argue. Delta in December announced it is buying a 49% stake in Virgin from Singapore Airlines, with Virgin founder Richard Branson retaining a 51% ownership position. 

Delta President Ed Bastian said in Monday’s press release that “Approval of antitrust immunity would allow travelers to take full advantage of all the aspects of the Delta-Virgin joint venture and enjoy the benefits of increased competition, particularly on flights to and from London Heathrow Airport.”

Under the proposed joint venture, Delta and Virgin Atlantic would coordinate schedules, network planning, pricing, and revenue management functions, sales, and other aspects of their services between North America and the U.K.

The airlines are also seeking antitrust immunity for five-way coordination on U.K.-to-North America traffic among Delta, Virgin Atlantic, Air France, KLM, and Alitalia. Delta already operates a joint venture with the other three European airlines.

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The article Delta, Virgin Atlantic Seek Antitrust Immunity to Boost U.S.-U.K. Flights originally appeared on Fool.com.

Fool contributor Rich Duprey has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

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Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

Dow Jones May Drop on Jobs Data

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By Roland Head, The Motley Fool

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LONDON — Stock index futures as of 7 a.m. EDT indicate that both the Dow Jones Industrial Average and the S&P 500 may open 0.6% lower. Despite gains for both indexes yesterday, the CNN Fear & Greed Index fell further and closed at 55 last night, signifying “neutral” sentiment.

Stock markets across Europe fell this morning to reach a one-month low ahead of this afternoon’s U.S. nonfarm payroll data. European airline shares fell amid fears that a bird flu outbreak in China that has already killed six people could harm long-haul business, leaving British Airways owner International Consolidated Airlines Group down by 6.8% at 7:30 a.m. EDT. Concerns also grew that North Korea might threaten U.S. bases in the Asia-Pacific region after it moved missile launchers and intermediate-range missiles to its eastern coastline. At 7:30 a.m. EDT, the FTSE 100 was down 1.4%, while Germany’s DAX was 1.8% lower.

Today’s key economic reports are the nonfarm payrolls and unemployment rate for March, both of which are due at 8:30 a.m. EDT, before markets open. U.S. jobs data has disappointed twice already this week, and consensus forecasts are suggesting that 190,000 new jobs were created in March, down from 236,000 in February. Investors will be concerned that these figures may surprise to the downside once more, although the unemployment rate is expected to remain unchanged at 7.7%. Other data due to be published today includes the trade deficit and consumer credit figures for February.

There are no major corporate earnings announcements due today, but companies with strong domestic exposure such as Bank of America could fall if job figures come in below expectations. Stocks that may be actively traded today include F5 Networks, which fell 17% in German trading this morning after cutting its second-quarter sales and earnings forecasts below its previous guidance. Facebook shares rose 3.1% yesterday as the company launched its new Facebook Home app and its customised Android phone, but the social-networking website’s shares are just 0.5% higher in premarket trading, suggesting that investors may wait to see what impact the new app has on Facebook’s mobile revenue before committing themselves to large new positions.

Finally, let’s not forget that the Dow’s daily movements can add up to serious long-term gains. Indeed, Warren Buffett recently wrote, “The Dow advanced from 66 to 11,497 in the 20th Century, a staggering 17,320% increase that materialized despite four costly wars, a Great Depression and many recessions.” If you, like Buffett, are convinced of the long-term power of the Dow, you should read “5 Stocks To Retire On.” Your long-term wealth could be transformed, even in this uncertain economy. Simply click here now to download this free, no-obligation report.

The article Dow Jones May Drop on Jobs Data originally appeared on Fool.com.


Roland Head has no position in any stocks mentioned. The Motley Fool recommends F5 Networks and Facebook. The Motley Fool …read more

Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

Economic Data Drags Down Dow

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By Jeremy Bowman, The Motley Fool

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Stocks slid today as weak economic data caused investors to doubt the strength of the recovery. The Dow Jones Industrial Average started off with slight gains, but fell steadily over the course of the trading session to finish down 112 points, or 0.8%.

Payroll processer ADP disappointed the market with its March jobs data, reporting that 158,000 jobs were added last month, below the 197,000 that the market expected and the smallest the company has reported since October. ADP‘s employment figures often differ significantly from the official one from the Labor Department‘s, which will be released on Friday. Economists expect that report to show 210,000 private sector jobs were added last month.

The ISM Services Index also came in slightly below estimates, hitting a rating of 54.4 against expectations of 55.5.

Oil prices also dropped by 3% late in the day as U.S. supplies hit their highest level since July 1990.

Not surprisingly, the banks were the worst performers on the Dow as Bank of America fell 2.8% and JPMorgan Chase dropped 2.4%. The slowdown in hiring and therefore the economic recovery would put an unexpected hurdle in front of the two big banks, which are dependent on consumers in a recovering housing market. The housing sector received its own warning signal in a report that said that mortgage applications dropped 4% last week.

Merck was one of just three blue chips to buck today’s downward trend, finishing the day up 1%. The drugmaker today filed a patent-infringement lawsuit in India against Glenmark pharmaceuticals regarding an anti-diabetes drug. With more than 1 billion people in India, the drug market there looms large, especially as the population steadily moves into the middle class. Earlier this week, Swiss drugmaker Novartis lost a major ruling in India that would have given it patent protection over a cancer drug known as Gilvec.

Boeing also made some small gains today, rising 0.3%, as it reported a new order from British Airways and said it was halfway done with testing of the Dreamliner. In a vote of confidence for the troubled jet, the British airline will order 18 more Dreamliners, on top of an original order of 24, and said the Spanish airline Iberia, a division of the same company, may put in its own order. Testing to get the Dreamliner back in the skies is moving slower than expected but should be done within a month or so.

Can Merck beat the patent cliff?
This titan of the pharmaceutical industry stumbled into 2013 and continues to battle patent expirations and pipeline problems. Is Merck still a solid dividend play, or should investors be looking elsewhere? In a new premium research report on Merck, the Fool tackles all of the company’s moving parts, its major market opportunities, and reasons to both buy and sell. To find out more click here to claim your copy today.

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Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

Babcock International Group "In Line With Expectations"

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By Sam Robson, The Motley Fool

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LONDON — Babcock International Group  this morning released a pre-close trading update, which confirmed that its full-year financial results are in line with previous expectations.

The U.K.’s leading engineering support services company went on to comment on the “strong progress” shown on the previous year, amid positive market conditions, with the bid pipeline increasing from £14 billion to £15.5 billion in the last two months — the most significant addition to the pipeline is the Logistics and Commodities Services Transformation contract, being bid by the Defense and Security division in a joint venture with DHL.

At around £12 billion, management highlighted the order book’s contribution to “provide excellent visibility of future revenue streams across the Group”. Bidding activity remained high throughout the year, while a number of significant transformation and investment programs are being progressed through its civil and military markets.

Since the first-half results were released in November 2012, Babcock has won or are preferred bidders on contracts valued over £1 billion, including preferred bidder announcements on contracts for ground fleet maintenance for British Airways and baggage handling systems operations and maintenance for Heathrow Airport (£440 million); preferred bidder for the design, supply and delivery of two boat sets of weapon handling and launch equipment for an international customer (£100 million); and design and engineering support and equipment procurement contracts, in the U.K. and internationally, for the Marine and Technology division (£50 million).

Management reiterated their confidence of moving the company forward, stating that it remains “well positioned to help our customers develop cost efficient support solutions and we believe the current economic climate will continue to create significant medium and long-term growth opportunities for the Group, both in the U.K. and overseas”.

The shares saw little change as the pre-trading update was released this morning. Babcock was one of 2012’s best performers, and if you’re looking for companies that have strong potential to soar in price, then we’ve pinpointed our favorite growth share from the FTSE 100. Our analysts have produced a free report in which they evaluate its finances and risks, and its growth prospects going forward. Simply click here to get your copy delivered to your inbox immediately — it’s completely free.

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The article Babcock International Group “In Line With Expectations” originally appeared on Fool.com.


Sam Robson has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

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Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

Why Hewlett-Packard Could Miss the Dow's Next Bull Market

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By Dan Caplinger, The Motley Fool

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As much as everyone thought that April showers might make the stock market swoon after an impressive first-quarter performance, it seems like May flowers are a month early. Thanks in part to increasing sentiment that U.S. stocks have a safety advantage over companies in other parts of the world, both the Dow Jones Industrials and the S&P 500 climbed to new record highs today. Even as Federal Reserve policymakers continue to walk the line between encouraging economic growth and creating another asset bubble, investors see improving economic data as evidence that the Fed’s policies are doing what they were designed to do. The Dow finished up 89 points to 14,662, while the S&P rose 8 points to 1,570.

But Hewlett-Packard was a big loser on the day, falling more than 5% after Goldman Sachs downgraded the stock. HP has been going through massive changes, and investors have been impatient to see results. Yet even as CEO Meg Whitman has tried to get HP back on the right track, Goldman’s analysis concluded that changes would be slow in coming, making the recent bounce in HP‘s stock price premature. One could argue, however, that the recent rally in HP‘s shares was due more to an overreaction in 2012 to its slow turnaround. In the end, what will decide matters for long-term investors is whether Whitman’s strategies can successfully find new profit centers for HP. If they can, then Goldman’s short-term call will prove irrelevant. If not, then HP could easily end up missing the next bull market for the Dow just as much as it missed out on last year’s stock market gains.

Boeing also lagged behind the Dow, falling 1.4% on reports that International Airlines Group, which runs British Airways, will order A350 aircraft from Boeing rival Airbus. Boeing has hoped that it would get the airline to buy its next-generation 777X aircraft. It doesn’t appear that the decision is motivated by Boeing’s issues with its 787 Dreamliner, but the episode has nevertheless been a black mark on Boeing’s reputation and could have impacts on orders down the road.

Finally, outside the Dow, Nordic American Tankers plunged 11% after pricing a secondary offering of 9.75 million shares at $9.60 per share, well below the stock‘s closing price yesterday above $11. Secondary offerings are often dilutive, but the timing of the decline is unfortunate given the recent uptick in the shipping sector in the past month.

HP‘s rapid shift in strategy under the new leadership of CEO Meg Whitman could make it one of the least-appreciated turnaround stories on the market. But some investors think it’s just a minor blip on its road to irrelevance. The Motley Fool’s technology analyst details exactly what investors need to know about HP in our new premium research report. Just click here now to get your copy today.

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Source: FULL ARTICLE at DailyFinance

News, Politics, Government

Australian regulator approves Qantas-Emirates deal

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Australia‘s competition regulator gave Qantas Airways Ltd. and Emirates final approval Wednesday to form a five-year global alliance, with special conditions for flights across the Tasman Sea.

The Australian Competition and Consumer Commission said the partnership will give the public better products and service offerings.

“The ACCC is satisfied that the alliance is likely to result in material, but not substantial, public benefits,” ACCC chairman Rod Sims said in a statement.

The ACCC had already granted interim approval, allowing the Australian and Dubai-based carriers to sell codeshare flights between Australia and Europe, North Africa, the Middle East and Asia.

Wednesday’s final ruling, which lasts for five years, also allows Qantas and Emirates to pair up on flights across the Tasman Sea, subject to conditions.

They must maintain existing capacity on four overlapping routes to New Zealand: Sydney-Auckland, Melbourne-Auckland, Brisbane-Auckland and Sydney-Christchurch.

“On these routes, the ACCC is concerned that Qantas and Emirates will have the ability and incentive to reduce or limit growth in capacity in order to raise airfares,” Sims said.

The requirement to maintain capacity on these four routes — which account for about 65 percent of all seats between Australia and New Zealand — would be subject to a review to consider whether increases in the minimum capacity were warranted.

“With this condition, the ACCC is satisfied that the relevant net public benefit tests are met,” the ACCC said.

Qantas and Emirates also planned to cooperate on sales, marketing and pricing.

The alliance was a key plank in Qantas chief executive Alan Joyce‘s bid to return the Flying Kangaroo‘s international operations to profitability.

Under the partnership, Qantas will use Dubai, rather than Singapore, as the stopover point for its flights to London.

The first Qantas flight to London via Dubai departs on Sunday.

Qantas signed a 10-year partnership deal with Emirates in September last year, ending a 17-year relationship with British Airways.

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Source: FULL ARTICLE at Fox World News

News, Politics, Government

Unions at Spain's Iberia agree to end strike

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Unions representing most workers at Spanish airline Iberia have cancelled strikes planned for next week to protest staff layoffs.

The cancellation Wednesday comes after the unions accepted a mediator’s proposal that reduces the number of planned layoffs by 666 to 3,141, or some 15 percent of Iberia’s workforce.

The company accepted the proposal last weekend.

The unions staged strikes between Feb. 18-22 and March 4-8 and were due to resume the stoppages March 18-22.

International Airlines Group, which owns British Airways and Iberia, lost €923 million ($1.20 billion) last year on restructuring costs and writedowns on the value of Iberia.

Spain is in its second recession in three years and has 26 percent unemployment

…read more
Source: FULL ARTICLE at Fox World News

Business, Finance, Occupation & Industry

The Men and Women Who Run Standard Life

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By Tony Reading, The Motley Fool

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LONDON — Management can make all the difference to a company’s success and, thus, its share price.

The best companies are those run by talented and experienced leaders with strong vested interests in the success of the business, held in check by a board with sound financial and business acumen. Some of the worst investments to hold are those run by executives collecting fat rewards as the underlying business goes to pot.

In this series, I’m assessing the boardrooms of companies within the FTSE 100. I hope to separate the management teams that are worth following from those that are not. Today, I am looking at Standard Life , the life assurer which is bucking the trend with a special dividend.

Here are the key directors:

Director Position
Gerry Grimstone (non-exec) Chairman
David Nich Chief Executive
Jackie Hunt Finance Director
Keith Skeoch Executive Director

Gerry Grimstone has been chairman since 2007, the year after the former mutual society was floated, but had been a board member since 2003. He knows something about public-to-private ownership transfers, as a former civil servant in the Treasury, who was heavily involved in the early privatisations of the 1980s, such as British Airways. That led to a career in investment banking with Schroders, including vice-chairmanship of its global investment banking activities.

Accountant, not actuary
David Nish’s involvement with Standard Life is also longer than his tenure in the top job. He had been appointed finance director in November 2006, shortly after demutualisation. He was promoted to the CEO role in 2010 on the retirement of Sir Sandy Crombie, who had worked at Standard Life throughout his career. Previously, Mr. Nish was finance director of Scottish Power, having qualified as a chartered accountant with PricewaterhouseCoopers.

Mr. Nish has been instrumental in revitalising Standard Life‘s staid culture and executing its “asset light” strategy, refocusing the business as a seller of savings and pension products rather than a traditional life assurer. Under his leadership, Standard Life‘s shares have risen by 85%, far above the FTSE, and even outperforming the mighty Prudential.

Jackie Hunt stepped up from the role of deputy finance director on Mr. Nish’s promotion. She joined the company in 2009, after various finance roles with RSA and Aviva, having worked as an accountant with PricewaterhouseCoopers and Deloitte.

Economist
Keith Skeoch runs the investment arm of Standard Life. He has been a director since flotation, and was a potential internal candidate for the CEO‘s role. He joined Standard Life in 2009, after 20 years with brokers James Capel, including the role of chief economist.

Standard Life‘s eight non-execs have a broad spread of backgrounds.

I analyse management teams from five different angles to help work out a verdict. Here’s my assessment:

1. Reputation. Management CVs and track record.

Very good.

 Score 4/5
2. Performance. Success at the company.

Outperformed rivals.

 Score 4/5
3. Board Composition. Skills, experience, balance

Strong exec team.

 Score 4/5
4. Remuneration. Fairness of pay, link to performance.

On the high side, but not controversial.

 Score 3/5
5. Directors’ Holdings, compared to their pay.

Substantial.

 Score 4/5

Overall, Standard Life scores 19 out of 25, a very good result. The company …read more
Source: FULL ARTICLE at DailyFinance

News, Politics, Government

Spain's Iberia cancels flights as strikes resume

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Spanish airline Iberia says some 1,300 flights will be canceled this week as workers begin a second round of strikes to protest the loss-making company’s plans to lay off almost a fifth of its workforce.

The government has ordered a minimum amount of services should remain, meaning 85 percent of long-haul flights, 62 percent of medium-haul and 47 percent of domestic flights are guaranteed.

Unions representing most Iberia workers, but not pilots, called strikes between Feb. 18-22, March 4-8 and March 18-22.

A demonstration will be held at Madrid’s Barajas airport later Monday.

International Airlines Group, which owns British Airways and Iberia, lost €923 million ($1.2 billion) last year on restructuring costs and writedowns on the value of Iberia.

Iberia last month said it planned to cut 3,807 jobs.

…read more
Source: FULL ARTICLE at Fox World News

News, Politics, Government

Middle East is new global travel crossroads

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It’s 1 a.m. and the sprawling airport in this desert city is bustling. Enough languages fill the air to make a United Nations translator’s head spin.

Thousands of fliers arrive every hour from China, Australia, India and nearly everywhere else on the planet. Few venture outside the terminal, which spans the length of 24 football fields. They come instead to catch connecting flights to somewhere else.

If it weren’t for three ambitious and rapidly expanding government-owned airlines — Emirates Airline, Etihad Airways and Qatar Airways — they might have never come to the Middle East.

For generations, international fliers have stopped over in London, Paris and Amsterdam. Now, they increasingly switch planes in Dubai, Doha and Abu Dhabi, making this region the new crossroads of global travel. The switch is driven by both the airports and airlines, all backed by governments that see aviation as the way to make their countries bigger players in the global economy.

Passengers are won over by their fancy new planes and top-notch service. But the real key to the airlines’ incredible growth is geography. Their hubs in Qatar and the United Arab Emirates are an eight-hour flight away from two-thirds of the world’s population, including a growing middle class in India, China and Southeast Asia that is eager to travel.

In the past five years, the annual number of passengers traveling through Dubai International Airport — home to Emirates — has jumped from 28.8 million to 51 million, a 77 percent increase. The airport now sees more passengers than New York’s John F. Kennedy International Airport.

“Everybody accepts that the balance of global economic power is shifting to the east. The geographic position of the Gulf hubs makes them much more relevant today,” says Willie Walsh, CEO of International Airlines Group, the parent company of British Airways and Iberia.

Persian Gulf carriers are already chipping away at some U.S. and European airlines’ most lucrative business: long-haul international flights. But it’s what’s ahead that really has other airlines worried.

Gulf carriers hold one-third of the orders for the Boeing 777 and Airbus A380 — two of the world’s largest and farthest-flying jets. That’s enough planes to put 70,000 passengers in the air at any given moment.

“They’re being very …read more
Source: FULL ARTICLE at Fox World News

Business, Finance, Occupation & Industry

Is International Consolidated Airlines the Ultimate Retirement Share?

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By Roland Head, The Motley Fool

Filed under:

LONDON — The last five years have been tough for those in retirement. Portfolio valuations have been hammered and annuity rates have plunged. There’s no sign of things improving anytime soon, either, as the Eurozone and the U.K. economy look set to muddle through at best for some years to come.

A great way of protecting yourself from the downturn, however, is by building your retirement fund with shares of large, well-run companies that should grow their earnings steadily over the coming decades. Over time, such investments ought to result in rising dividends and inflation-beating capital growth.

In this series, I’m tracking down the U.K. large caps that have the potential to beat the FTSE 100 over the long term and support a lower-risk, income-generating retirement fund (you can see the companies I’ve covered so far on this page).

Today, I’m going to take a look at International Consolidated Airlines Group , the strangely named company that operates British Airways and Spain‘s troubled Iberia airline. IAG released its final results this week, showing that British Airways‘ profits were cancelled out by Iberia’s losses. So can IAG‘s management turn Iberia around to deliver sustainable, long-term growth?

International Consolidated Airlines vs. FTSE 100
Let’s start with a look at how IAG has performed against the FTSE 100 since it was formed in Jan. 2011 through the merger of British Airways, Iberia, and, more recently, bmi:

Total Returns

2011

2012

2013 YTD

3-Yr. Trailing Avg.

International Consolidated Airlines

-45.9%

25.4%

29.4%

4.2%

FTSE 100

-2.2%

10%

8.4%

9.7%

Source: Morningstar

(Total return includes both changes to the share price and reinvested dividends. These two ingredients combined are what make it possible for equity portfolios to regularly outperform cash and bonds over the long term.)

IAG‘s stock market performance since its creation has been fairly unimpressive, and yesterday the group reported a pre-tax loss of 997 million euros for 2012. Another loss seems likely in 2013, as the group faces the exceptional costs and likely disruption from strike action involved in restructuring loss-making Iberia. Despite this, IAG‘s shares have performed strongly so far this year, as analysts have upgraded their expectations for IAG, thanks to the success it has had in integrating bmi into a restructured and profitable British Airways.

What’s the score?
To help me pinpoint suitable investments, I like to score companies on key financial metrics that highlight the characteristics I look for in a retirement share. Let’s see how IAG shapes up:

Item

Value

Year founded

2011

Market cap

4.4 billion pounds

Net debt

1.9 billion euros

Dividend Yield

0%

3-Year Average Financials

Operating margin

2.5%

Interest cover

2.0x

EPS growth

-132%

Dividend growth

n/a

Dividend cover

n/a

Here’s how I’ve scored IAG on each of these criteria:

Criteria

Comment

Score

Longevity

A difficult marriage that may yet fail.

1/5

Performance vs. FTSE

Below average, but too early to really judge.

2/5

Financial strength

Despite this year’s losses, it’s fairly robust.

3/5

EPS growth

Not much growth yet.

1/5

Dividend growth

Doesn’t yet pay a dividend.

0/5

Total: 7/25

IAG currently has the dubious distinction of being one of just three companies in the FTSE 100 that don’t pay a dividend — the others being Royal Bank of Scotland and Lloyds. That’s not a great start for …read more
Source: FULL ARTICLE at DailyFinance

News, Politics, Government

Workers at Spain's Iberia begin 15 days of strikes

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Ground staff and cabin crews at Spain’s Iberia are beginning 15 days of strikes to protest plans to lay off 3,800 staff.

The company says the stoppages, to be staged over three weeks, will lead to more than 1,200 flight cancelations, including 236 on Monday.

A government decree on minimum services guarantees 90 percent of long-haul flights, 61 percent of medium-haul and 46 percent of domestic flights.

Unions representing most Iberia workers, but not pilots, called the strikes between Feb. 18-22, March 4-8 and March 18-22.

The company says it has found seats on other flights for most of the 70,000 passengers affected.

Iberia, Lineas Aereas de Espana S.A., claims economic difficulties oblige it to make layoffs.

Iberia is linked with British Airways in International Airlines Group.

…read more
Source: FULL ARTICLE at Fox World News

News, Politics, Government

Spain's Iberia presents major layoff plan

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Spanish airline Iberia has presented a plan to cut almost a fifth of its workforce nearly a week ahead of a first round of strikes by labor unions opposing the plan.

Iberia, Lineas Aereas de Espana S.A., said Tuesday its losses totaled €850 million between 2008 and September 2012 and this obliged it to take drastic action.

International Airlines Group, which includes British Airways and Iberia, first announced the layoffs last year, but without providing much detail. It said then that Iberia was “in a fight for survival.”

Unions representing most Iberia workers, but not pilots, called 15 days of strikes beginning Feb. 18 after lengthy negotiations with the company failed to produce agreement.

Spain is in its second recession in three years and has 26 percent unemployment.

…read more
Source: FULL ARTICLE at Fox World News

News, Politics, Government

Spain's Iberia workers call strikes over layoffs

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Labor unions representing most workers in Spain’s Iberia airline have called 15 days of strikes to protest the company’s plans to lay off 4,500 workers.

The stoppages by Iberia’s ground staff and cabin crews will be held Feb. 18-22, March 4-8 and March 18-22.

Raul Melero of the USO union said Wednesday that the strikes were called after weeks of negotiations ended without agreement.

The unions involved called off a week of strikes in December so that the negotiations could continue.

The pilots’ union, Sepla, is not among six unions backing the strike.

International Airlines Group, which groups together British Airways and Iberia, late last year unveiled a plan to cut 23 percent of the Spanish company’s staff, saying the carrier was “in a fight for survival.”

…read more
Source: FULL ARTICLE at Fox World News

News, Politics, Government

Why Frequent Flyer Programs Don't Work – And What Delta Is Doing About It

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By Larry Olmsted, Contributor Ever since American Airlines became the first major airline to introduce an airline loyalty program back in 1981, fliers have been hoarding miles. Within about a year, all of American’s biggest competitors, including Delta, United and British Airways, had rolled out programs of their own. And ever since then, most have been intrinsically flawed.
Source: FULL ARTICLE at Forbes Latest