Trabber News

news about cheap fares and airlines from travel search engine Trabber

British Airways parent flies positive flag for Scottish independence

4 March 2014

IAG said on Friday that Scottish independence could be good for their business, providing a boost to the campaign that wants Scotland to split from the United Kingdom.

After a flurry of companies this week raised potential risks from independence, IAG Chief Executive Willie Walsh said he was not worried about British Airway’s prospects if Scotland voted on September 18 to end a 307-year tie with England.

“‘If anything, it will be slightly positive, since we believe (an independent Scotland) will abolish air passenger duty because they recognise the huge impact that tax has on their economy,'” Walsh told BBC television.

IAG expected to stay firm on Iberia restructuring

27 January 2013

International Consolidated Airlines Group (known as IAG) may ask its Spanish airline Iberia to stay firm on a tough cost-cutting programme.

It is speculated that the group may be concerned by a new ”Plan B” presented by Iberia to its labour trade unions. The plan consists of reducing lay-offs from the initial 4,500 to 3,800.

When the initial restructuring plan was announced on November 9th, there was an initial deadline of January 31st. Although Iberia has stated that the deadline is not strict, an upcoming board meeting is expected to be the last before an official restructuring announcement.

Spanish airline Iberia axing 4,500 jobs

11 November 2012

Loss-making Iberia on Friday announced plans to axe 4,500 jobs to save Spain’s biggest airline from collapse and warned more cuts could follow against the backdrop of economic crisis in the Eurozone country.

To stem Iberia’s cash losses by mid-2013, the Spanish airline plans to slash its network capacity by 15 percent and downsize its fleet by 25 aircraft, including five long-haul jets.

Separately on Friday, IAG announced that the parent group’s net profits dropped 24 percent in the third quarter compared with the equivalent period last year, hit by losses at Iberia.

British Airways traffic surge bolsters IAG as Iberia languishes

9 January 2012

International Consolidated Airlines Group SA (IAG) said passenger traffic rose 7.2 percent last year as a surge in growth at British Airways made up for almost static demand at its Madrid-based Iberia division.

Traffic increased 10.6 percent at BA, while Iberia posted a gain of 0.1 percent, IAG said today in a statement. The U.K. unit accounted for almost 70 percent of total traffic, a measure of the number of passengers carried times the distance flown.

British Airways increased capacity 9.8 percent during the 12 months, with Iberia adding only 1.2 percent more seats.


Virgin furious after British Airways owner buys BMI

25 December 2011

The owner of British Airways agreed to buy rival airline BMI in a deal which rivals claim will mean higher prices for flyers.

The deal will give BA owners International Airlines Group (IAG) more than half of the take-off and landing slots at Heathrow.

Virgin Atlantic said the airline would be able to use their ”monopoly power” to force up fares if the £172.5million takeover is completed.


IAG agrees to acquire bmi from Lufthansa

7 November 2011

International Airlines Group (IAG) and Lufthansa Group reached an agreement for the sale of LH’s loss-making British Midland (bmi) to IAG. The purchase of bmi could increase IAG subsidiary British Airways’ share of slots at London Heathrow to 53%, although regulators most likely will require some slot divestments.

The companies did not detail whether the agreement is for the sale of the entirety of bmi or just the carrier’s mainline operation. Recently, bmi confirmed it was “‘in advanced discussion’” to sell bmi regional to a UK-based investor group “‘previously associated with the regional business,’” indicating its owner was negotiating to divest its loss-making UK subsidiary in parts. It is not clear what will happen with the company’s low-cost carrier, bmibaby.


IAG looks at three potential mergers

20 September 2011

British Airways was late to the airline merger party when it finally combined with Spain’s Iberia in January to form International Airlines Group, Europe’s third-largest carrier by revenue.

First, Lufthansa, Europe’s largest airline by sales, is considering selling BMI, its lossmaking UK subsidiary that has much sought after take-off and landing slots at Heathrow airport. Second, the Portuguese government is preparing to privatise TAP, or Transportes Aéreos Portugueses, the country’s flag-carrier. Third, there could be the chance to take over Aer Lingus, the Irish flag-carrier of which Mr Walsh was once chief executive.

Amid a deteriorating economic environment, the main benefit from consolidation could be to ease the pressure on airlines’ revenues. Fewer carriers means less competition, which in turn should mean different pricing tactics by the remaining airlines.


TAM joins IAG in bid for TAP

12 May 2011

British Airways’ parent International Airlines Group (IAG) has a potential rival in bidding for TAP Portugal, with Brazilian carrier TAM considering a takeover of the Portuguese carrier.

TAP is a member of the Lufthansa-led Star Alliance, as is TAM, while BA is a leading member of the rival alliance Oneworld. However, TAM is awaiting regulatory approval for a merger with Latin America’s other major carrier, LAN – a Oneworld member.


IAG gets its wings back despite fuel price rises

27 April 2011

Oil prices may have stayed close to their recent highs, but that failed to prevent International Airlines Group (IAG) flying to the top of the blue-chip index last night.

Ever since British Airways and Iberia merged and began trading under their new moniker in January, the airline has seen its share price plummet, falling by 20 per cent as the cost of the black stuff soared. Yet IAG rose by 9.9p to 229.6p yesterday after UBS chose the airline as its “‘top pick'” among the flagship carriers.


Quiet opening for IAG as Walsh promises expansion

25 January 2011

British Airways’ new parent company International Consolidated Airlines Group (IAG) enjoyed a quiet opening day’s trading on the stock markets of London and the linked exchanges of Madrid, Barcelona, Bilbao and Valencia on Monday.

Shares in IAG opened in the City at a price of 288.1p and closed at 287.19p after touching 289p. IAG shares in Spain finished the day at €3.31, broadly in line with the London price allowing for the exchange rate.

IAG chief executive Willie Walsh and chairman Antonio Vazquez were at the London Stock Exchange to watch trading open. Walsh said: “I’AG has a great future ahead of it. BA and Iberia are the first two airlines in IAG, but they won’t be the last. Today is the first step towards creating a multinational multi-brand airline group.’”