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Posts tagged to Airlines

Flybe Group: Another profit warning issued amidst a chaotic industry


On 18th October 2017, Flybe Group Plc issued a profit warning, the second one following an earlier warning in March. The company warned that profits for the first half of 2017/2018 are expected to be in the region of £5m-£10m ($6.8m-$13.5m), down from adjusted profit before tax of £15.9m ($21.5m) for the same period last year. This follows an announcement in March in which the company revised its profit expectations to a loss for year-end March 2017, rather than the earlier anticipated small profit that had previously been announced. While… Read more

Monarch Airlines: Management not to blame for collapse of UK’s longest-serving airline


In the early hours of Monday October 2, 2017, KPMG announced that it had entered the office of Monarch Airlines and the company had officially entered administration. In the following hours the Civil Aviation Authority chartered 30 planes from across Europe to repatriate some 110,000 British citizens and customers who were then stranded abroad with no return flights. Cancellations of every flight from October 2 and onwards have affected some 300,000 bookings and likely close to a million individuals, and Monarch’s departure from the short-haul flight market will almost certainly… Read more

UK airline industry: The threat of the permanent side-effects of Brexit


The future of the UK airline industry is likely to be worse after Brexit even after the end of uncertainty, as the free movement of EU citizens is likely to be over. This automatically means that the prosperous international segment of the UK industry will be severely hit by restrictive regulation regarding new limiting open skies agreements and border controls. The termination of open skies agreements will jeopardize the growth of the UK airlines industry, the revenues of which are greatly dependent on UK-EU traffic. Extensively, the UK airline industry… Read more

Air India privatization: Airline must be broken up before sale


Air India is in a horrible financial condition. Largely surviving off a government bailout, the company has incurred massive losses down the years during which market share was lost and the business overtaken in the quality of service it provided. Now the company has finally managed to turn a profit – largely due to low oil prices – a privatization is unlikely to result in one buyer taking over the entire airline and assorted assets. Some observers of the international airline industry have expressed surprise at the possible bid from… Read more

The global airlines industry will see accelerated growth by 2021, says MarketLine


The global airlines industry is set to rise from $569.5 billion in 2016 to $828.3 billion by 2021, representing a compound annual growth rate (CAGR) of 7.8%, and surpassing the peak growth rate of 7.4% seen in the period between 2012 and 2016, according to research firm MarketLine. The company’s latest report states that the emerging dynamic of the Asia-Pacific region, which accounts for 33.9% of the global industry, combined with signs of reduced rivalry in the European airline industry, are driving accelerated growth in global terms. The Chinese and… Read more