Category: Financial

American Airlines Group (American), one of four U.S. carriers subject to an antitrust lawsuit over collusion to limit plane capacity and in so doing, driving up domestic airfares, has agreed to pay US$45 million to draw matters to a close. The carrier has admitted no wrongdoing and American’s spokesman Matt Miller advised that the carrier had “dramatically increased” domestic capacity over the investigated period. He made it clear that while capacity had grown, fares had fallen to a near all-time low, stating that: “Despite our firm conviction in the appropriateness of our actions, costs to defend against antitrust litigation often Read more

Etihad Airways said that it improved its core operating performance by 22% in 2017, despite facing challenges including significant fuel cost increases, the entry into administration of its equity partners Alitalia and airberlin, and initial investment in a comprehensive business transformation programme. The airline increased revenues from core operations by 1.9% to US$6.1 billion (2016: US$5.9 billion), while reducing losses in the core operations by US$432 million to US$1.52 billion (2016: loss of US$ 1.95 billion). Results published for 2017 are for core airline operations and exclude any extraordinary or one-off items; 2016 figures have been restated to show a Read more

U.S. Department of Transportation Secretary Elaine L. Chao has announced the Federal Aviation Administration (FAA) will award US$677 million in airport infrastructure grants, the first allotment of the total US$3.2 billion in Airport Improvement Program (AIP) funding for airports across the United States. The 241 grants will fund 346 infrastructure projects that include runways, taxiways, aprons, and terminals. These projects are important to the safety and efficiency of the nation’s system of airports. “These Airport Improvement Program grants will enhance airport safety, modernize our aviation infrastructure and strengthen the economic vitality of communities throughout the country,” said Secretary Chao. The Read more

Having received all required regulatory approvals, Airbus SE, Bombardier and Investissement Québec (IQ) have agreed to close the C Series transaction effective on July 1, 2018. The transaction by which Airbus will acquire a majority stake in the C Series Aircraft Limited Partnership (CSALP) was initially announced in October 2017. The Mirabel-based partnership, which was originally established between Bombardier and IQ, will benefit from Airbus’ global reach, scale, procurement organization and expertise in selling, marketing and producing the C Series – a state-of-the-art jet aircraft family in the 100-150 seat market. Airbus will work with its partners Bombardier and IQ Read more

The French hotel group Accor has confirmed this week that it has been in discussions to purchase all or part of the French government’s 14.3 percent stake in Air France KLM, which at current share value would stand at €420 million (US$491 million). According to the Telegraaf, the French media had originally leaked the story to test market reaction. The move appeals to the hotel group as it has a shared customer base and combined digital services plus loyalty incentives would be an additional benefit. Currently Accor has roughly 4,300 hotels in 100 countries, operating under 25 different brands including Read more

Transoft Solutions, a global leader in transportation engineering design and analysis software, has released, that its Belgian affiliate company has acquired Airtopsoft SA, a leading developer of airspace and airport modeling solutions. Airtopsoft will continue operating as a standalone company, managing key operations from its office in Belgium. Terms of the transaction were not disclosed. Airtopsoft was founded in 2006 when it first launched its flagship software, AirTOp. The Brussels-based company has since positioned itself as developers of advanced simulation solutions for decision making and analysis for airport, air traffic control and airspace professionals. Airtopsoft has customers around the world Read more

Delta Air Lines and Los Angeles World Airports (LAWA) have announced a US$1.86 billion plan to modernize Terminals 2 and 3, together with the Tom Bradley International Terminal (Terminal B) at Los Angeles International Airport (LAX). LAWA is the governing body for LAX and Van Buys Airports. The project has been given the name Sky Way and construction is expected to begin in the fall. At a news conference last week, Delta CEO Ed Bastian made it clear that LAX is one of the most important hubs for the carrier, with over 170 daily flights. Commenting further, Bastion said that: Read more

Rolls-Royce has confirmed that completion of the sale of its fuel injector business, L’Orange, a wholly owned subsidiary of Rolls-Royce Power Systems, to Colorado-based Woodward took place on 1 June. The completion of the transaction, which was announced on 9 April, followed recent clearance from the German antitrust authorities. Net proceeds totalled €673 million after transaction costs and other adjustments and included a cash contribution reflecting 2018 trading prior to the date of completion. In 2017, L’Orange reported pro forma sales of €244 million, pro forma underlying EBITDA of €74 million, pro forma underlying operating profit of €64 million and Read more