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[waikenchan] 09/5/2020 16:35

hxxps://simpleflying.com/iag-uk-government-aid/

Looks like iag got some goverment cash. I wonder what the terms were or it was just on commercial terms.

[sr2day] 09/5/2020 15:55

this is a pandemic.it does not matter whether Spain has zero deaths.the problem is whether they will risk another surge with travellers from abroad.this is the dilemma facing all tourists hotspots.

[amaretto1] 09/5/2020 13:19

Spain's death toll today .... 129 !U all working it out yet !!

[jailbird] 09/5/2020 12:55

hxxps://onemileatatime.com/etihad-iag-austrian-airlines/

The WHO has classified Coronavirus (COVID-19) as a global pandemic.

Find out what this means for travelers.

TRENDING: Eastern Airlines’ Strange New Domestic Route








Etihad & IAG Interested In Austria Expansion?!
MAY 7, 2020 BY BEN (LUCKY) 23
AUSTRIAN
While I highly doubt this will actually happen in the current environment, the prospect of this is fascinating.

In this post:
Lufthansa Group’s government aid negotiations
Etihad & IAG express interest in Austria
IAG & Austria
Etihad Airways & Austria
Bottom line
Lufthansa Group’s government aid negotiations
Lufthansa Group is one of the “big three” European airline groups, and includes Lufthansa, SWISS, Austrian, Brussels, etc. The airline group has taken a rather hard stance when it comes to negotiating government aid:

In Germany, Lufthansa is doing everything in their power to avoid giving the German government any say in how the airline is run, even if the government takes a multi-billion dollar stake in the airline; Lufthansa was reportedly even considering bankruptcy protection over government funding
In other countries (including Austria, Belgium, and Switzerland), governments have wanted assurance that their respective airlines would grow (or at least not shrink) in exchange for any sort of funding; after all, Austria doesn’t want to give a German company aid, only for Austria’s airline to shrink significantly
Lufthansa Group has been in negotiations with several governments

Etihad & IAG express interest in Austria
Media reports suggest that Etihad and IAG (the parent company of British Airways and Iberia) have separately approached the Austrian government to express interest in expanding there.

They’re not actually looking to take over Austrian Airlines, but rather are clearly trying to signal to the government that they don’t have to be held hostage by Lufthansa Group, as they’d be happy to step in and provide major capacity in the country.

It’s unclear if they’d be looking for government aid to do this, or what exactly the basis of negotiation is.

What could an expansion from either airline in Austria look like? I’m purely speculating, but below is my take.

Could we see Austrian Airlines have more competition soon?

IAG & Austria
In the case of IAG, the airline group has long been looking to expand further east in Europe. IAG’s low cost carrier, LEVEL, already has a base in Vienna. Presumably they’d not only be looking to expand that, but potentially would be looking to go beyond that.

I could see IAG operating long haul flights out of Austria, and also having the airline based there operating as part of the oneworld transatlantic joint venture. That would likely make the airline more premium than LEVEL, though.

At the same time, I can’t help but scratch my head at IAG’s desire to grow in Austria right now, in light of current circumstances. British Airways is cutting thousands of roles, arguing it’s the only way to survive, but is also pondering expansion in a new market in this environment? I guess the planes have to go somewhere, but that still will require some capital…


Maybe Ryanair CEO Michael O’Leary wasn’t that far off when he said the following regarding the big European airlines getting state aid:

“They see this as an opportunity to get one last huge quantity of state aid so they can go around and buy up everyone when this is all over.”

LEVEL already has a base in Austria

Etihad Airways & Austria
In the case of Etihad, well, hmmm. I don’t think there’s an airline in the world with a less successful investment track record than Etihad, between airberlin, Alitalia, Jet Airways, Virgin Australia, etc.

But this wouldn’t even be Etihad taking over an airline, but would rather see Etihad somehow investing in a new Austrian airline (presumably there would be other investors as well, due to foreign ownership laws).

One interesting angle could be that Etihad has way more planes on order than they need, as the airline plans to shrink. I guess they assume they could somehow use these in Austria? But this whole thing still seems exceedingly random.

Without an airline in Austria being part of a major alliance or part of a major joint venture, I’m just not sure I get this…

Etihad is reportedly interested in expanding in Austria

Bottom line
It’s interesting to hear that both Etihad and IAG are allegedly interested in expanding in Austria. This at least gives the Austrian government more leverage when negotiating with Lufthansa Group, as there are alternatives.

At the same time, I’m not sure I totally get how this would materialize, especially in the current environment.

Or who knows, this could just be IAG trying to sabotage Lufthansa Group, and to get Austrian owned as much as possible by the government, in hopes of it derailing the airline.

[jailbird] 09/5/2020 12:53

The the news about quarantine is bad news for the airports

But the reason the Gov never enforced that before is because the country was in lockdown anyway..

[qantas] 09/5/2020 12:40

https://m.youtube.com/watch?feature=youtu.be&v=kLloF1IYmssBA Flatline.Please do your own research as always

[amaretto1] 09/5/2020 12:21

They have plenty of cash to see this thru ...... Liquidity is near 10 billionOil price less than half.Plus being the market monopoly leader... most others will go bust .. IAG will not!!

[m1k3y1] 09/5/2020 12:11

UNITE video about BA redundancies.
Please share

[amaretto1] 09/5/2020 11:39

Same situation 2016 Glencore 80pAnglo American 1.25 The end near .... bla bla bla Mad Cow disease

[loganair] 09/5/2020 11:25

Cruise lines - A couple who are in their early 80s and are family friends and are what I call cruise ship people, they go on 4 cruises a year have said to me:

"Due to our age, we have a 70% chance of not waking up in the morning while we have a 99% change of not getting coronavirus while on a cruise ship. We want to enjoy our last few remaining years and will therefore carry-on cruising."

The people who will think twice about going on a cruise are either those in the 40 to 70 age group or those who may go on a cruise however are not cruise ship people.

[amaretto1] 09/5/2020 11:11

I'm never wrong ! :-)

[montyhedge] 09/5/2020 10:54

You sound like your long and wrong. 165p here we come.

[amaretto1] 09/5/2020 10:37

30,000 out of 70million dead ... RIPyes u not read that figure from !!

[amaretto1] 09/5/2020 10:29

How much u think they will save on cheap oil going forward ? Ten times more than 1 billion

[amaretto1] 09/5/2020 10:28

The end is ni

[amaretto1] 09/5/2020 10:28

Breathing ?

[amaretto1] 09/5/2020 10:28

Cruise ships ?

[amaretto1] 09/5/2020 10:27

The world will end !! Bla bla bla .... what a clown

[montyhedge] 09/5/2020 10:04

Final nail for airlines, quarantine can it get any worst, oh yes according to Balapa, IAG lost 1.1 billion on the wrong side hedging oil. Could not make this stuff up.

[waikenchan] 09/5/2020 09:40

Plus financing for airlines ain't going to be cheap anymore. United air was having to pay upwards of 9% for their financing needs. Plus all those additional costs that will need to be implemented as we start flying.

Hard to see how they are going to maintain their margins pre coronavirus. Buffet actually talks about why dumped airlines, and its very interesting.

[buywell3] 09/5/2020 09:31

Interesting reactions from a strange poster that seems to like burying posts he does not like as fast as possible , watch



………; Think on these facts --- regarding International Air Flight restarting ………;



Every country that has locked down gas done so at massive cost to their economy

The debt that each country is taking on buywell would currently estimate at circa 50% of GDP.

And it isn't over , the job losses grow and the numbers of businesses going bust does the same.

And we are about to see several USA States end lockdowns when case numbers are in many opinions still too high , check out what happened to the Japanese Island of Hokkaido very recently after it ended its lockdown.

Any country that is FIRST to open up to International Travel in any sort of meaningful way risks financial ruin IF SARS-COV-2 gets imported once again on passengers that are carriers without the symptoms , no high temperature .

Thus we have a game of chicken in prospect

Who will be first to go , then the others watch and see what happens

In the USA a computer model has forecast that after 3 to 4 weeks of State lockdowns coming off , numbers could rise and a death rate of around 3,000 per day become possible as cases ramp up higher than pre lockdown levels.

Check out what happened in Hokkaido

So the question buywell poses is this ?

What head of state is going to risk political suicide first and go down in history as the one that bankrupted his nation by making a stupid ill informed decision ?



This sort of thinking is most likely why WB said the Airline Industry was going not his investment choice anymore and sold his 4 USA Airline Stocks , inferring he wouldn't be looking again for at least 3 years.

Next you have to ask yourself this question

How important is International Air Travel to Global Economic Trade ?


IMO dyor

[bookbroker] 09/5/2020 09:08

Issue for most travellers, and that is if they bother at all, is travel insurance. Going to pay much higher premiums from now on, may not apply so much for sunshine vacations, but more activity holidays, and cruise ships are another matter altogether. You will also see much higher fares, as schedules decimated and fewer flights for the remainder of the year, fewer aircraft flying to all destinations. Airlines will want to milk thee flyers, and why should they not, for too long have air fares been too low, I remember you could not fly to destinations in Europe for less than £200 return in the nineties.