Tag Archives: Ryanair

PlaneBusiness Banter Now Posted!

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Good evening earthlings!

This week’s issue of PlaneBusiness Banter is now posted.

Three guesses what we are talking about this week? (The first two don’t count.)

That’s right — the American Airlines/US Airways merger.

We’ll give you our take on what was announced, what was said that we don’t think is necessarily true, and why we think it’s still a great move not only for American Airlines and US Airways but for the U.S. domestic airline industry in general.

Oh, we talk about the situation at Boeing too. Anyone want to bet as to whether the FAA allows Boeing to put in a “fix” to the battery problem while investigators here and in Japan continue working to find reasons for the two battery issues that occurred in January?

I don’t think the FAA will do it, but apparently Boeing is going to make the pitch on Friday that a different battery design will prevent such things from happening again.

We talk a little bit about earnings this week, as we give a short and sweet summary on the recent results announced by both SkyWest and Spirit. More on the results from both airlines in next week’s issue.

We also look at the pre-announced earnings from Lufthansa.

But the most surprising news this week concerns the bankrupt shares of AMR, parent of American Airlines. As was announced last week, equity shareholders are going to receive a return on their equity investment. Late Wednesday night, JP Morgan analyst Jamie Baker issued a note in which he initiated coverage on the shares again. We’ll tell you why he thinks investors might want to take a look at the shares.

I know. Who would have thought?

Pigs have flown.

All this and more in this week’s issue of PlaneBusiness Banter.

PlaneBusiness Banter Now Posted!

home-typewriter copy 1.jpgGood evening everyone. This week’s edition of PlaneBusiness Banter is now posted.

What, pray tell, are we talking about this week?

I’m sure you won’t be surprised to know we talk a lot about the escalating disaster that is American Airlines. I think a lot of people are missing the bigger picture in terms of what is happening at the airline. This is not just a “pilot/management” pissing match. It’s much worse.

Meanwhile, across the pond, we try to get you caught up with all the latest potential “coupling” updates, including whether Qatar is going to get cozy with British Airways, whether British Airways is going to buy the Irish government’s stake in Aer Lingus, and whether or not Ryanair’s Michael O’Leary is still remotely interested in actually buying a piece of Aer Lingus or not. Our answer? No.

Back on this side of the pond, Air Canada’s CFO Mike Rousseau rolled out a lot of additional details about that airline’s new low cost subsidiary last week to a CIBC analyst conference. The information got investors excited apparently, as shares of the airline posted the largest gain of any airline stock we track for the week.

Reports say that Delta’s refinery subsidiary has started to make jet fuel. Don’t know about you, but I’m still excited about this project.

Another project I got to get a first hand look at last week that got me excited was Lufthansa System’s new onboard wireless IFE system, BoardConnect. I sat down with the folks from Lufthansa Systems at the APEX Conference in Long Beach. No question about it — the concept is the best option I’ve seen out there. If I owned an airline, I’d install it on my airplanes.

We have our usual letters this week, including a rebuttal to American Airlines’ claim that my tweet concerning the pilot contract terms harkened mostly back to the April Term Sheet.

Virgin America announced its second quarter 2012 earnings on Monday. Richard Branson can honestly say he has an investment in a non-profit entity in the U.S. Still.

Oh, and of course we address the major aircraft-related question of the week — why is it that windows in airplanes don’t open? And who is going to do something about this?

All this — and more — in this week’s issue of PlaneBusiness Banter.

Reader Comment on United Pilots’ Stand on Aer Lingus Deal

Tough crowd out there today.

From the inbox:

You are not serious about this whiny crap from UA pilots are you?”


Let me put it this way. Given what is going on at the airline — I would have expected the airline to have at least discussed this “innovative agreement” with its pilot union before it was announced. At least.

Actually, I’m more interested in an arm-wrestling contest between Ryanair’s Michael O’Leary and United’s Glenn Tilton.

I’d pay big bucks for that ticket.

Ryanair Makes New Bid for Aer Lingus


Let no one say that Ryanair’s CEO Michael O’Leary is not a determined person.

This morning Ryanair announced that it will pay $1.78 (€1.40) a share — or $950 million in cash — for the remaining 70% of Irish flag carrier Aer Lingus. This price represents a hefty 28% premium over the current stock price.

Two years ago Ryanair tried to buy the airline, but only got as far as putting together a 30% stake in the airline.

Significance of the move? When was the last time we saw a low cost carrier purchase what is considered to be a Legacy carrier?

I suspect Mr. O’Leary may be successful in his attempt this time. There are too many things working in his favor as compared to two years ago.