Wednesday, 29 October 2014

Pilot Strike affects Airfrance profits

Air France-KLM has said last month's pilots' strike cost it €416m (£328m) in lost revenues as it reported third-quarter operating profit fell by more than half.

The airline said this on its website adding that operating profit fell to €247m from €641m a year ago.

It also affirmed that the combined effect of the strike and seasonal dip in fourth-quarter demand would remove €500m from its €2.3bn earnings target for 2014.

The airline said it will also adjust investments and cut costs in 2015.

"Over and above the effects of the strike, we also predict that the market will remain sluggish in the fourth quarter," Air France finance director Pierre-Francois Riolacci said n the airline's website

The European economy was still lacklustre, he added, but the effect on activity from concerns over Ebola remained limited.

But he denied Dutch news reports that the airline was looking at major job cuts at KLM, saying there were "no drastic or emergency measures which need to be declared".

"The airline shares stood at 1.38% lower to €6.55 in morning trade," the website says

Air France said it could also look at selling its remaining 4.4 % stake in reservation systems Amadeus as a way of boosting its finances. The airline has already reduced its shareholding in the last month.

"Our Amadeus stake immediately springs to mind but the formula is a little wider than that, and we have to look at all the possibilities for action in the current environment," Mr Riolacci said, adding that fleet plans would also be up for discussion.

Air-France has yet to take delivery of a final two Airbus 380 aircraft from an original order for 12.

Mr Riolacci said the airline had the option to swap those aircraft for two smaller A350s, which could help reduce costs, but added no decision had been made yet.

Zambian President Michael Sata dies at 77

Zambian President Michael Sata, who according to the country's national radio was nicknamed "King Cobra" for his fiery tongue and larger-than-life personality, has die.

Officials did not disclose a cause of death. But Sata had traveled to London for unspecified medical treatment last week.

He died in a hospital there Tuesday evening, the government-owned Zambia Daily Mail said.

Sata took office in September 2011 after the incumbent President tearfully conceded in a televised speech, a rare moment in a continent known for volatile elections and leaders fighting their defeat tooth-and-nail

Work Commences on Multi-storey Car Park at MMIA

Work has officially commenced on the multi-storey car park at the international terminal of the Murtala Muhammed Airport, Ikeja.
Spokesperson for the Federal Airport Authority of Nigeria (FAAN)disclosed this recently adding that the car park which occupies a 9,000 square meter land area, located close to the international terminal building, is expected to accommodate 5,000 cars on completion.

"The construction of this new multi-story car park was necessitated by the need to minimise the inconvenience experienced by airport users as a result of inadequate parking space at the airport. It is also expected that the proximity of the new car park to the international terminal will make transportation easier for passengers," he said.

Tuesday, 28 October 2014

SAHCOL acquires additional equipment for efficient service delivery

In a bid to improve the face of ground handling in Nigeria, in line with International best practices, the Skyway Aviation Handling Company Limited (SAHCOL) has again taken delivery of additional Ground Support Equipment (GSE).

The equipment, manufactured by TUG, United States; Denge, United Kingdom and TBD, United Kingdom, includes Conveyor Belt Loaders and Baggage Tractors; Baggage Carts; Pallet & Container Dollies, respectively, which are already being deployed to further improve services to clients across the network. Also as part of the growing profile of the Company, SAHCOL was awarded the contracts to provide ground handling services to Max Air, Kabo Air, West Link Air, Medview Airline and Skypower Airline for the outbound and inbound of the on-going Hajj Operations.

The company currently handled seventy-five outbound flights, from Nigeria to the Saudi Arabia operated by these airlines, from Lagos, Ilorin, Kano, Bauchi, Gombe, Kebbi, Dustse/Yola and Portharcourt.

Wednesday, 22 October 2014

Delta Air Lines forecasts high revenue by end of 2014

Delta Air Lines forecasts high pre-tax revenue in excess of $4 Billion by the end of year 2014 with the announcement of $1.6 billion pre-tax income for the month of September quarter.

It's September 2014 income according to a release is an increase of $431 million over the September 2013 quarter on a similar basis. The net income for the September 2014 quarter was $1.0 billion, or $1.20 per diluted share with operating margin at 15.8 percent.

According to Richard Anderson, Delta's chief executive officer, "While we have more work ahead of us to achieve our long-term financial goals, we expect a record fourth quarter of 2014 with an operating margin of 10-12%.

“For the full year (2014), we expect a pre-tax profit in excess of $4 billion. We have the right foundation in place for an even stronger 2015, proven strategies for Delta, and 80,000 Delta employees who are the very best in the industry. With another record profit, solid margin expansion and nearly $1 billion of free cash flow, Delta's results are consistent with high-quality S&P 500 industrials," Anderson stated.

Ed Bastian, Delta’s President captures the Delta performance succinctly, “For the December quarter, the overall revenue environment remains solid, with unit revenues expected to increase by 0-2%, and we are on track to produce another quarter of good top line growth, margin expansion and free cash flow. Looking further ahead, our international network provides the largest opportunity for additional margin improvement, as we accelerate our Pacific network restructuring, recalibrate our transatlantic capacity levels, and reap the benefits of our investment in our Latin network."

These results conclude to a staggering $823 million profit so far.

Delta Air Lines have been generating a $910 million free cash flow in this September quarter, surpassing its 2013 record.

This translated into an adjustment of net debt to $7.4 billion and a return in dividends and share repurchases of $325 million to its shareholders.