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.