It could have been much worse. International Airlines Group (IAG), formed by the merger between British and Spanish flag carriers British Airways and Iberia, posted a €997 million (US$1.29 billion) 2012 before-tax loss, dragged down by a €343 million impairment charge against the intangible assets and a €202 million transformation cost at the beleaguered Iberia unit. Amid a moribund Spanish economy where the unemployment rate has hit a staggering 26.1% …Read More
Is consolidation the answer?
In light of the grim future painted by the International Air Transport Association (IATA) at its annual summit held in Beijing recently, Qantas chief executive Alan Joyce, it seems, thinks the airline industry faces an overcrowding problem. He said at the summit: “The number of airlines in the industry is too many. It’s too fragmented.” And the solution that he suggested: Consolidation. Joyce is re-championing an old strategy that more …Read More
Air France-KLM faces a turbulent year with widening losses
Air France-KLM’s operating result for full year 2011 fell a sharp 1,360% year over year to a €353 million (US$463 million) from a profit of €28 million the year before. Air France specifically suffered an operating loss of €560 million whereas the rest of the group enjoyed an operating profit of €207 million, driven in large part by KLM’s passenger operations. Europe’s second-largest airline by revenue blamed the loss on …Read More