Jeg føler en kald bris...lukk vinduet!

LN-TUA · 15-03-2009, 01:07

March 13, 2009
Scandinavia's leading airline SAS scrambled for cash, Austrian Airlines profits slumped and Finnish pilots and chefs were told to stay at home as global carriers served up economic gruel round the clock on Friday.

In Asia, Hong Kong airline Cathay Pacific lamented a "collapse" in economy class yields as it cut fares to fill seats, while US giant American Airlines warned it would have to make deeper capacity cuts to make ends meet.

"We have a situation that has never existed like this before in aviation. I honestly cannot say how long the crisis will last," Joachim Hunold, head of Germany's second-biggest airline Air Berlin said at the ITB travel fair in Berlin.

Airline stocks joined a broader market rally, pulled higher by the shares of SAS on relief it would raise SEK6 billion Swedish kronor (USD$693.6 million) needed to ride out the economic storm.

But in a sign of the hard sell surrounding battered airline stocks, SAS was forced to offer shareholders a deep discount to prevent them turning their back on the deal.

The loss-making airline priced its issue at an 88 percent discount to the market price.

"All of a sudden you know that SAS will get its SEK6 billion and there was some doubt about this before," said Erik Gustafsson, an analyst at Carnegie investment bank.

Sweden, Norway and Denmark own 50 percent of SAS which was briefly in talks to be taken over by Lufthansa last year.

In Finland, national carrier Finnair said it would put some 700 of its 800 pilots on unpaid leave for at least one week starting from mid-April.

The move comes as it cuts routes to counter falling demand.

It also said it planned to temporarily lay off all 700 of its catering staff for anything between 2 weeks and 3 months.

"The economic situation and productivity of Finnair Catering have weakened significantly," said Kristina Inkilainen, head of Finnair Catering. "The number of passengers has fallen and the travel model has changed conclusively since the beginning of the year, which has reduced sales clearly."

"COLLAPSE" IN YIELDS

Many airlines have reported business customers trading down to economy class to save money, requiring fewer elaborate meals.

The chief executive of Air France-KLM said last week such downgrades were supporting yields, or average fares per passenger on board, in the economy cabin -- though not by enough to compensate for falling premium-class revenues.

Because business travellers tend to book late and want flexibility, they often have to pay the priciest economy fares.

Still, Asia's fifth largest airline, Cathay Pacific, said yields in the back of the plane had tumbled -- and, like others, suggested the whole industry was flying blind.

"The problem with this crisis is that we're, at best, in a U-shaped recession... We don't know how long it's going to last," chief executive Tony Tyler said.

He said there had been a "further deterioration" in yields in premium-class segments in the first quarter.

"What we've also seen in recent weeks is a collapse in the economy class yields," he said, adding this was mostly due to "very, very strong competition in what is a very soft market."

Cathay has no plan to tap share markets, he said, however.

Airlines worldwide lost up to USD$8 billion in 2008, the International Air Transport Association said last week.

Austrian Airlines became the latest to report a steep slump in full-year earnings on Friday as high fuel prices and a drop in travel demand eroded profits.

CSA Czech Airlines, a privatisation candidate wooed by Air France-KLM and Aeroflot, said it faced a tough year but expected to stay afloat unless the market took another nosedive.

Airlines have been among the worst hit by the global credit crunch and economic downturn as companies and individuals cut back on holidays and business travel.

Dutch lessor AerCap said one of its ventures had axed an order for two Airbus jets due to the crisis.

To offset weaker travel demand in the recession, American Airlines parent AMR may need to make deeper capacity cuts, finance director Tom Horton said.

"As we get a little bit better fix on the summer of this year and see just how tough this economic situation is... we may well make a decision to go deeper," he said in an interview.

Still, the recession could open new markets for travellers.

At the Berlin travel fair, executives from airlines such as British Airways and Lufthansa said business travellers continued to switch to low-cost airlines -- giving low-cost long-haul flights a viable future for the first time.

(Reuters)
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LN-MOW · 15-03-2009, 01:19

Dårlig korttidsminne .. bransjen var verre ute etter 9/11 ... etter vinter kommer vår .. ikke alle overlever, men de som klarer seg vil profitere på oppgangsbølgen. Deretter kommer det nok en depresjon, og alt er glemt igjen ....

JoeW · 15-03-2009, 01:24

9/11 kom jo i en periode der det allerede var dårlige tider(IT-boblen hadde sprukket etc), og bransjen var på vei ned allerede før terroren, som slettes ikke hjalp.

15-03-2009, 01:07	#1
LN-TUA Newcomer Join Date: Sep 2004 Posts: 9	Jeg føler en kald bris...lukk vinduet! March 13, 2009 Scandinavia's leading airline SAS scrambled for cash, Austrian Airlines profits slumped and Finnish pilots and chefs were told to stay at home as global carriers served up economic gruel round the clock on Friday. In Asia, Hong Kong airline Cathay Pacific lamented a "collapse" in economy class yields as it cut fares to fill seats, while US giant American Airlines warned it would have to make deeper capacity cuts to make ends meet. "We have a situation that has never existed like this before in aviation. I honestly cannot say how long the crisis will last," Joachim Hunold, head of Germany's second-biggest airline Air Berlin said at the ITB travel fair in Berlin. Airline stocks joined a broader market rally, pulled higher by the shares of SAS on relief it would raise SEK6 billion Swedish kronor (USD$693.6 million) needed to ride out the economic storm. But in a sign of the hard sell surrounding battered airline stocks, SAS was forced to offer shareholders a deep discount to prevent them turning their back on the deal. The loss-making airline priced its issue at an 88 percent discount to the market price. "All of a sudden you know that SAS will get its SEK6 billion and there was some doubt about this before," said Erik Gustafsson, an analyst at Carnegie investment bank. Sweden, Norway and Denmark own 50 percent of SAS which was briefly in talks to be taken over by Lufthansa last year. In Finland, national carrier Finnair said it would put some 700 of its 800 pilots on unpaid leave for at least one week starting from mid-April. The move comes as it cuts routes to counter falling demand. It also said it planned to temporarily lay off all 700 of its catering staff for anything between 2 weeks and 3 months. "The economic situation and productivity of Finnair Catering have weakened significantly," said Kristina Inkilainen, head of Finnair Catering. "The number of passengers has fallen and the travel model has changed conclusively since the beginning of the year, which has reduced sales clearly." "COLLAPSE" IN YIELDS Many airlines have reported business customers trading down to economy class to save money, requiring fewer elaborate meals. The chief executive of Air France-KLM said last week such downgrades were supporting yields, or average fares per passenger on board, in the economy cabin -- though not by enough to compensate for falling premium-class revenues. Because business travellers tend to book late and want flexibility, they often have to pay the priciest economy fares. Still, Asia's fifth largest airline, Cathay Pacific, said yields in the back of the plane had tumbled -- and, like others, suggested the whole industry was flying blind. "The problem with this crisis is that we're, at best, in a U-shaped recession... We don't know how long it's going to last," chief executive Tony Tyler said. He said there had been a "further deterioration" in yields in premium-class segments in the first quarter. "What we've also seen in recent weeks is a collapse in the economy class yields," he said, adding this was mostly due to "very, very strong competition in what is a very soft market." Cathay has no plan to tap share markets, he said, however. Airlines worldwide lost up to USD$8 billion in 2008, the International Air Transport Association said last week. Austrian Airlines became the latest to report a steep slump in full-year earnings on Friday as high fuel prices and a drop in travel demand eroded profits. CSA Czech Airlines, a privatisation candidate wooed by Air France-KLM and Aeroflot, said it faced a tough year but expected to stay afloat unless the market took another nosedive. Airlines have been among the worst hit by the global credit crunch and economic downturn as companies and individuals cut back on holidays and business travel. Dutch lessor AerCap said one of its ventures had axed an order for two Airbus jets due to the crisis. To offset weaker travel demand in the recession, American Airlines parent AMR may need to make deeper capacity cuts, finance director Tom Horton said. "As we get a little bit better fix on the summer of this year and see just how tough this economic situation is... we may well make a decision to go deeper," he said in an interview. Still, the recession could open new markets for travellers. At the Berlin travel fair, executives from airlines such as British Airways and Lufthansa said business travellers continued to switch to low-cost airlines -- giving low-cost long-haul flights a viable future for the first time. (Reuters) Airwise Sections HubPage Airwise News Top Stories Airline News Airport News Aviation News Cargo/Freight News Travel/Tourism News Recently Added Airwise Travel Travel Front Page Book Flights Web Air Fares Hotel Reservations Hot Rate Hotels Car Rental Last Minute Deals Cruises Destination Guides Tickets & Attractions Airwise Sections Airport Guide Search HubPage Airwise News Sun, Mar 15 2009 - 12:01 am GMT Top Stories European Air Body Says Boeing 777s Safe To Fly Fitch Cuts AMR To Deeply Distressed Rating Airlines Cut Costs, Ask When Crisis Will End Lufthansa Summer Capacity To Rise On Italia Unit Airlines Try Going Green To Shrink Fuel Costs Most Viewed Stories Pilot Wanted: No Flying Experience Necessary American May Need Deeper Capacity Cuts - CFO Travel Industry Sees Business Booking Slump Lasting RAM To Buy Six New Planes - CEO Airbus, Boeing Orders In Negative Territory More Popular Stories Airwise News Top Stories Airline News Airport News Aviation News Cargo/Freight News Travel/Tourism News Feature Stories Popular Stories Recently Added Stories Airport Guide World Airports US Airports Canadian Airports European Airports Asia-Pacific Airports Airwise Travel Travel Front Page Book Flights Web Air Fares Hotel Reservations Hot Rate Hotels Car Rental Last Minute Deals Cruises Destination Guides Tickets & Attractions Airwise Home Contact Us Site Search

15-03-2009, 01:19	#2
LN-MOW Flyklapper Join Date: Sep 2004 Location: KGRD Posts: 58,477	Re: Jeg føler en kald bris...lukk vinduet!!! Dårlig korttidsminne .. bransjen var verre ute etter 9/11 ... etter vinter kommer vår .. ikke alle overlever, men de som klarer seg vil profitere på oppgangsbølgen. Deretter kommer det nok en depresjon, og alt er glemt igjen .... __________________ Andreas Mowinckel enfb.net Airliners at Fornebu Radar Station KGRV3

15-03-2009, 01:24	#3
JoeW ScanFlyer Rusty Join Date: Mar 2008 Location: RDU Posts: 5,746	Re: Jeg føler en kald bris...lukk vinduet!!! 9/11 kom jo i en periode der det allerede var dårlige tider(IT-boblen hadde sprukket etc), og bransjen var på vei ned allerede før terroren, som slettes ikke hjalp.

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