I am sure most peeps will know this is my favourite airline - I fly them and I buy them.

Currently I hold a quarter unit as a longer term investment which is also useful for shareholder benefits.

I will be looking to substantially add at the right time and not afraid to trade them either intraday or more probably as a swing trade.


ains




Shadow of conflict looms large over British Airways as firm fights to recover

TRACEY BOLES - Scotland on Sunday

BRITISH Airways will warn that the prospect of war with Iraq casts a long shadow over its full-year this week when it posts third quarter figures in line with expectations.

Lord Marshall, the BA chairman, is expected to tell analysts that political uncertainty could push the airline, still struggling to recover from the effects of September 11, further into reverse.

"Iraq is a key driver for everything," said a source close to the airline.

BA has admitted privately to analysts that transatlantic bookings for this March are "appalling" as the uncertainty stirred up by the prospect of war exerts an influence. Earnings estimate downgrades are now highly likely.

However, analysts believe a loss for the full year is still not on the cards.

Pre-tax estimates for the full year currently stand at up to 140m. BAs performance, which represents a strong recovery from the 180m loss posted in the equivalent quarter after September 11, has been driven by a vigorous cost-cutting programme rather than by revenue, which is still flat.

It will announce tomorrow that it is on track to achieve cost savings of 450m by the end of March through a process of shedding jobs and loss-making routes under its future size and shape strategy.

By the end of next month 10,000 jobs will have gone under the programme. "BA has weathered the storm better than most by getting costs under control," said one analyst. "In Europe, only Iberia has done likewise."

Third quarter operating profits are expected to be around 30m to 40m, in line with analysts expectations, with pre-tax figures between a 10m loss and 5m profit. The consensus is break even.

The airline has impressed experts by taking the threat posed by low-cost carriers seriously.

Geopolitical and economic problems are affecting demand air travel, especially on long-haul routes. BAs premium services are still under pressure, recent traffic figures revealed.

A speedy Gulf war will lead to a relief rally for the airline sectors shares which are depressed at the moment. However, BA itself has warned that prolonged conflict could trigger a slump in aviation equivalent to that seen after September 11.

Chris Tarry, former aviation analyst at Commerzbank who now runs CTAIRA said: "I believe that the last quarter has been very tough on the revenue side and indeed they have indicated this themselves.

"Unfortunately the outlook is no better - even without a war. The reality of the economic situation in the UK was underlined with the rate cut.

"Add to that the structural downward shift in fare levels and then the uncertainty over war - it doesnt bode well.

"Furthermore, given the uncertainty caused by Iraq let alone an actual war, it is pretty clear that the transatlantic market will be dire in the summer."

BA has traditionally depended on transatlantic traffic for its revenue.

Shells chairman, Sir Philip Watts, also admitted last week that the oil giant was preparing for "uncertain times" ahead.

He said Shell had looked at the range of possibilities that could occur and had "a plan for every eventuality".

I think BA will be in a much better position to cope with the situation than many of the low cost airlines who seem to stuggle to provide their current scheduled services

ains




BRITISH AIRPORTS SET FOR SECURITY CHAOS Feb 9 2003


By Chris Mclaughlin Political Editor


AIRPORTS will be thrown into chaos by new security measures designed to combat terrorism.

Ministers want to introduce a complete ban on people with convictions for even minor offences, such as criminal damage, from working at airports.

The new measures will mean all existing staff, including ground crew, security workers and cleaners, will face vetting.




NEW MEASURES: Blunkett

Those with a criminal past face the sack. Only people with driving convictions will be exempt. The new process is likely to slow down procedures so much there will be long delays for passengers.

The move is part of an international review of aviation security being drafted by Home Secretary David Blunkett and Transport Secretary Alistair Darling.

Major airlines, such as British Airways, will discuss the plans with unions this week. But an airport worker said last night: "These measures will spell meltdown for the British aviation industry. We will face a serious shortage of personnel."

FORTUNE TELLER

GUY DIXON SoS


SEVERAL of the biggest names on the London market will test investor confidence this week, with results due from the likes of BT, BP, GlaxoSmithKline and the first of the big players from the banking sector.

Investors will be keen to see if British Airways can get the corporate week off to a flying start on Monday when the airline reports third-quarter figures.

Gerrard is predicting pre-tax profits for the nine-month period of 182m against the 250m loss announced last time. This estimate excludes any profits or losses from disposals.

When it released third-quarter traffic figures earlier this week, BA reiterated its warning that annual revenues this year would be lower than last and the threat of war in Iraq is unlikely to do much to aid the companys outlook.

ainsoph - how often have you flown with BA in the last year?

not as many times as I would have liked :-))


The Business: British Airways is to announce third-quarter operating profits of up to 40m, in line with analysts expectations.


ains

I would say that BAY are in the worst position of all the Airlines when the war starts and/or if we have any more terrorist attacks. 'Fly the flag'? You couldn't pay me enough to!
I would jump on one of those silly orange planes though, not only are they cheaper, but somehow I can't see binliner wanting to ruin one old Stelio's planes. ;oO

I think the BA security is a lot tighter and the service more professional but guess I wouldn't be flying to the ME any time soon - if war breaks out. Ultimately the war will end and peeps will soon forget and start flying again .... I will buy in the dip but happy to hold a few in the meantime


ains

why so coy, ainsoph? how many times have you flown with BA in the last year?

In my case I shall be avoiding BA in future, after their bizarre treatment of me. They have lost all my travel and their position as preferred airline for my company. Admittedly, we weren't their biggest customer -- but we're now one corporate customer less. Largely run by clueless marketing people, much to the frustration of the aircrew and ops folks.

MM

I thought their marketing was significanyly improving ......


ains


Easyjet talks on DBA may collapse
By Jens Flottau in Munich
Published: February 9 2003 21:51 | Last Updated: February 9 2003 21:51


The takeover of Deutsche BA, the lossmaking German subsidiary of British Airways, by Easyjet, Europe's largest low-cost airline, is understood to be on the brink of collapse after failure to resume crucial talks with pilots.


Easyjet and the pilots of DBA have not yet been able to agree on the new wage contracts, which are based on conditions of employment for low-cost carriers.

At the same time, Easyjet is not prepared to enter into further negotiations and is understood to have stopped the meetings of both parties.

well i've had a couple of really poor experiences with BA in the last few months, which is why i asked how many times you've travelled with them recently, ainsoph. so how often have you flown with them in the last year? come on tell us - don't be shy.

their saving grace is that most of the others are awful too.....

Q3 results are out ........



02/10 07:32
British Airways Posts 3rd-Quarter Profit on Cost Cuts (Update1)
By James Regan


London, Feb. 10 (Bloomberg) -- British Airways Plc, Europe's largest airline, posted a third-quarter profit, reversing a year- earlier loss, after the company cut one-sixth of its workforce, scrapped unprofitable routes and streamlined its fleet.

Net income in the three months ended Dec. 31 was 13 million pounds ($21 million), or 1.2 pence a share, compared with a net loss of 144 million pounds, or 13.4p, in the year-ago period. Analysts surveyed by Bloomberg expected a loss of 53 million pounds. Sales rose 1 percent to 1.86 billion pounds.

``Our total costs in the last 12 months are 1 billion pounds lower than the previous year which demonstrates the determination of our people to deliver,'' said Chief Executive Rod Eddington in a Regulatory News Service statement.

British Airways has cut 9,209 of its 56,500 employees and expects to reduce its workforce 23 percent by March 2004 as it tries to counter a slump in air travel after the Sept. 11 attacks and a drop in business traffic amid a global economic slowdown. It's also reorganized its European short-haul flights to compete with low-cost rivals such as EasyJet Plc.

The carrier said it remains on target to reduce its workforce by 10,000 employees to 46,500 by the end of March. The company also said it expects to post a full-year profit, though it sees no growth in revenue in the next 12 months.

``In the absence of hostilities in the Middle East, we expect this financial year to be profitable,'' Chairman Lord Marshall said in the statement. ``We expect the business environment to be tougher in 2003 than last year.''

I think the figures and the statement are much in line with market expectations and I remain a hoolder of a quarter unit and continue tracking for now ..... shares down around 1% which is slihjtly underperforming market


ains



Monday, 10 February, 2003, 07:16 GMT
BA profit recovery continues BBC


BA warned 2003 will be a tough year

The turnaround in British Airways' fortunes has continued, with the airline reporting another profit.
BA posted a 25m profit for the last three months of 2002, compared with a loss of 160m a year previously.

The airline said it expected to report a profit for the full financial year if there were no hostilities in the Middle East.

But it warned the business environment would be tougher in 2003 than last year, and added it anticipated no revenue growth over the coming year.

Cost-cutting

Last May, BA reported a 200m loss - its worst result since privatisation - as it struggled against competition from budget airlines and the post-11 September downturn in passenger numbers.

The loss prompted a major restructuring programme which saw the airline cut thousands of jobs, reduce capacity and slash fares.

BA's chief executive, Rod Eddington, said the changes had left the airline "leaner, fitter and more competitive".

"Our total costs in the last 12 months are 1bn lower than the previous year."

War threat

The latest results mean BA has recorded a profit of 335m for the nine months to the end of December, compared with a loss of 115m at the same period last year.

But the prospect of a war with Iraq still poses a threat to the carrier's prospects.

BA's shares have fallen in recent weeks over fears that a conflict would put people off international travel and hit the airline's profits.

A war could also lift the price of aviation fuel, adding to the pressure on BA.

10 Feb 2003 08:25 GMT



BA profit soars but it sees tough 2003

LONDON (Reuters) - Deep cost cutting has helped British Airways post a third-quarter profit above market expectations and Europe's biggest airline expects a full-year profit, if there is no war in Iraq.
But BA, which has slashed thousands of jobs, cut capacity and dropped ticket prices in response to weak demand and competition from Europe's no-frills airlines, said it expected the business environment in 2003 to be tougher than 2002.

"In the absence of hostilities in the Middle East, we expect this financial year to be profitable," Chairman Colin Marshall said in a statement, adding that "at this stage we anticipate no revenue growth over the next 12 months".

BA BAY.L had a pre-tax profit of 25 million pounds for the three months to December, compared with a loss of 160 million pounds in same period in 2001 -- after the September 11 attacks in the United States sent the industry into a financial dive.

Turnover rose one percent to 1.857 billion pounds.

Shares in BA closed at 116 pence on Friday. The stock has underperformed the benchmark FTSE 100 Index by seven percent since it won back its place among Britain's blue-chip companies.

The September 11 attacks accelerated an industry downturn that began as economic growth slowed. The slump has hit BA particularly hard on its important North American routes as companies keep a lid on travel expenses.

Debt-laden BA responded to the stormy market conditions with a two-year "future size and shape" programme designed to extract 450 million pounds in annual savings by the end of March, rising to 650 million pounds by the end of March 2004.

BA said its two-year programme was on track and delivering more than the expected cost savings. Debt was 5.2 billion pounds at December 31, down 1.4 billion pounds from its 2001 peak.

Quite a wide trading range today ....... US futures are mixed with Dow up 15 and S+P up but NAS marginlly down on fair value.

Worth remembering there is a lot of US interest in BA


ains




British Airways back in profit but 2003 to be tough

Mon 10 Feb 2003



LONDON (SHARECAST) - British Airways struggled back into profit in the third-quarter after mass job cuts, streamlining its fleet and cancelling unprofitable routes but added that this year will be tougher than last and that it does not expect any growth in revenues.

"We are leaner, fitter and more competitive, said chief executive Rod Eddington. Our total costs are 1bn lower," he said, referring to the restructuring plan of the airline that was launched 12 months ago.

In the same quarter in 2002, BA reported a 160m loss, as air traffic stalled following September 11 attacks. The job cuts, which amount to 23% of the workforce by 2004, is a bid to counter a drop the drop in air travel, and a slump in business traffic with the global economic slowdown.

It also faces strong competition from low-cost airlines such as Easyjet and Ryanair.

The company said it expects to post a full-year profit to March, reversing a 142m loss in fiscal 2002, though it sees no growth in revenue in the next 12 months.

Net income in the three months ended 31 December was 13m compared with a net loss of 144m, in the previous year, it said.

The airline is preparing itself for a drop in traffic if war breaks out with Iraq. As a result, "Corporate travel budgets are going to remain under pressure for a long time yet'' it added.

LONDON (AFX) - Rod Eddington, chief executive of British Airways PLC, said the airline is well placed to respond to military conflict in Iraq with both business and operational contingency plans.

"We stand ready to adjust our business appropriately if there is a conflict in the Middle East. We hope there won't be but if there is we'll respond accordingly," he told reporters in a conference call.

He was speaking after BA released better-than-expected third quarter to Dec 31 2002 results, forecast a year to end-March 2003 profit, but cautioned it does not anticipate any revenue growth over the next 12 months.

Eddington explained that the most important contingency is the accumulation of a 1.756 bln stg cash "war chest".

He also pointed out that 90 pct of the airline's fuel requirement is hedged to March 2003 and 50 pct hedged to June 2003.

"We're as well placed as we can be in these circumstances," he said.

Eddington would not be drawn on the possibility of BA instigating restructuring and disposal plans beyond its current 'Future Size and Shape' programme if there is prolonged conflict in the Middle East.

FSAS, launched in February, aims to reduce costs by an annualised 450 mln stg by March 2003 and 650 mln stg by March 2004, mainly from capacity cuts, headcount reduction and lower distribution costs. BA has a target of 10,000 fewer full-time equivalents by March 2003 and 13,000 fewer by March 2004.

"We're half way through the FSAS programme and to be frank our focus is on delivering the other half," said the chief executive.

BA's yields (average fares), which fell 4.5 pct in the third quarter, remain under pressure in the fourth quarter, particularly in the premium business sector, said Eddington.

"Given the threat of war which hangs over the global economy and the airline industry particularly, it's impossible to say anything definitive about the pricing environment in the next two or three months," he explained.

"If you look at our results, yields were down. That reflects the pressures we're under and clearly given the uncertainty that's out there it's not going to change in the very short term."

At 10.15 am shares in BA were down 1-3/4 pence at 114-1/2. The stock has come off a 2002 high of 254 pence.

james.davey@afxnews.com

Hmmmmmm ..... not so good for Ryanair


Ryanair refuses to let Para on flight despite military ID
By Benedict Brogan, Political Correspondent Telegraph
(Filed: 10/02/2003)


Ryanair, the low-cost Irish airline, has become involved in a row with the Government after refusing to allow British soldiers on standby for the Gulf to board flights using their military ID cards.

Three Cabinet ministers have been drawn into the argument, with threats of a Ministry of Defence boycott of the airline and complaints that the Dublin-based company is discriminating against servicemen facing action against Iraq.

The dispute follows the airline's refusal to recognise the Armed Forces card carried by a member of the Parachute Regiment, who was booked to travel from Glasgow to London to rejoin his unit after a 24-hour home leave.

joint house broker Merrill Lynch repeated its 'buy' stance, while WestLB Panmure reiterated its 'outperform' recommendation. Schroder Salomon Smith Barney repeated its 'in-line, high risk' stance. In a note to clients the broker pointed out BA's downbeat outlook statement had been expected given weak economies and the prospect of war in Iraq. "These results reinforce our view that BA is the best positioned among the flag carriers to benefit from an eventual return to normal economic and political conditions, because of its aggressive capacity, cost and balance sheet management actions, while reducing its risk in the current environment," it said.

What's this I heard about '0%' revenue forcast for BAY, by BAY, whether or not there is a war? Hmm. ;oO

This is not a bad summary of the current situation


02/10 17:11
British Airways' Eddington Sees `Tougher' Times Ahead (Update9)
By James Regan


London, Feb. 10 (Bloomberg) -- British Airways Plc Chief Executive Officer Rod Eddington said this year will be ``tougher'' than 2002 after Europe's largest airline had to cut 9,200 jobs, drop routes and sell four planes to eke out a third-quarter profit.

Net income in the three months ended Dec. 31 was 13 million pounds ($21 million), or 1.2 pence a share, compared with a net loss of 144 million pounds, or 13.4p, a year ago. The airline will see no revenue growth in the next 12 months, Eddington said.

British Airways plans to cut its workforce 23 percent by March 2004 to counter a slump in air travel after the Sept. 11 attacks and a drop in business traffic. It's lowered short-haul ticket prices to compete with Ryanair Holdings Plc and other low-fare rivals, and built up cash reserves to weather a further decline in demand if there is war with Iraq.

``The problem is all they can do is focus on managing the costs,'' said Colin Morton, who helps manage $260 million at BWD Rensburg and hasn't owned the shares for about two years. ``It's a very high-risk stock.''

Shares of British Airways fell 4.25p, or 3.7 percent, to 112p. The stock's down 17 percent so far this year, compared with a 9.2 percent drop in the U.K. benchmark FTSE 100 Index.

``The route to profitability in the short term is going to be through cost reduction,'' said Chris Tarry, an independent aviation analyst, in an interview. ``Corporate travel budgets are going to remain under pressure for a long time yet.''

Falling Yields

The decline in business travel and the slowing global economy resulted in a 4.5 percent fall in yields, a measure of how much revenue the airline gets per passenger, in the third quarter. The carrier filled 70.9 percent of its seats, a year-on-year increase of 5.7 percentage points, after it cut capacity 1.8 percent. Sales rose 1 percent to 1.86 billion pounds in the third quarter.

``Yields were down -- that reflects the pressure we are under,'' Eddington said on a conference call with journalists. ``The current calendar year is a difficult one to read'' because of ``the threat of war, economic uncertainty'' and competition.

The carrier said Feb. 5 it had a 1.8 percent drop in traffic last month, led by a 7.6 percent decline in premium traffic. Economy- class traffic dropped 0.8 percent. Low-cost rival Ryanair, Europe's No. 2 no-frills airline, said the number of passengers it flew last month, which doesn't take account of distance flown, rose 55 percent.

``BA's profitability relies heavily on a turnaround of North Atlantic routes,'' said Morgan Stanley analyst Martin Borghetto, who rates the stock ``equal-weight.'' ``Whilst management is working hard to retain cash and to improve the debt position, a further downturn on North Atlantic routes would translate into significant downside risk for BA's earnings and cash flows.''

Competitors

Rival full-service European carriers have also suffered from a drop in demand for air travel. Amsterdam-based rival KLM Royal Dutch Airlines NV, Europe's No. 4 airline, has said it expects a second consecutive fiscal-year loss. Deutsche Lufthansa AG, Europe's third- biggest carrier, is calling 2003 a ``difficult year.''

Eddington said the company's total costs for the last 12 months are 1 billion pounds lower than the previous year, following the publication of its Future Size and Shape strategy review in February 2002. This ``demonstrates the determination of our people to deliver,'' he said.

The company said it expects to post a profit in the fiscal year ending March 31, reversing a 142 million-pound loss in fiscal 2002, ``in the absence of hostilities in the Middle East,'' though it sees no growth in revenue in the next 12 months.

Cash Reserves

``What we have been doing is accumulating our cash reserves'' to ensure ``we have got a war chest should we need one,'' Eddington said. The company's cash inflow was 1.1 billion pounds during the nine months through December.

During the third quarter, British Airways disposed of two Boeing 757-200 aircraft, one Boeing 737-400 and one de Havilland Canada DHC-8 plane. The company also grounded two Boeing 737-300s and one Boeing 737-400. It took delivery of six Airbus SAS A320 planes during the period. It also dropped 21 U.K. regional routes.

The carrier said it remains on target to reduce its workforce by 10,000 employees to 46,500 by the end of March.

British Airways's net debt was 5.19 billion pounds, down 1.11 billion pounds from March 31 and at its lowest level since Sept. 30, 1998.

The company has increased its proportion of fixed-rate debt to almost 60 percent from 25 percent, Chief Financial Officer John Rishton said on the conference call. He said 90 percent of the company's fuel is hedged through March, with half of it hedged through the first quarter of fiscal 2004.

Yields on British Airways's 250 million pounds of 7.25 percent bonds due 2016 were 11.647 percent, compared with 11.646 percent on Feb. 7. The bonds pay a premium of 7.36 percentage points above U.K. government benchmark debt of equivalent maturity.

how about a summary of the number of times you've actually flown with BA in the last year. can't be often, as you post 24hrs a day, 7 days a week!

What a strange thing to say why ..... I do posts lots but thats because I hold lots of shares - think and type very fast - have a fast broadband connection - fast laptop and a quick mind. Anyway don't worry - I don't have to work and retired many years ago.


FYI

LONDON (AFX) - BAA PLC said its seven UK airports, including Heathrow, Gatwick and Stansted, handled 8.8 mln passengers in January, an increase of 10.7 pct over January 2002 helped by strong traffic over the Christmas and new year holiday period.

Amongst the airports, passenger traffic at Heathrow was 7.1 pct higher than January 2002.

However, Gatwick has still not fully recovered from Sept 11 2001 and its aftermath. Although it recorded a 10.0 pct increase over January 2002, it was still 8 pct lower than January 2001.

The largest passenger gains were recorded at airports with the highest concentration of low cost carriers. Stansted added 30.5 pct, Edinburgh grew by 16.1 pct and Glasgow was up 10.2 pct.

BAA said all major markets recorded increases compared to January 2002.

Domestic and European scheduled traffic saw gains of 14.9 pct and 13.3 pct respectively, whilst European charter traffic added 5.4 pct.

North Atlantic routes increased by 9.0 pct, but have not recovered to levels recorded prior to Sept 11 2001. The two year comparison shows the North Atlantic market to be still 2.0 pct down.

Total air transport movements were 4.4 pct higher than January 2002. Cargo tonnage increased by 3.9 pct.

Last week BAA flagged that it expects passenger growth to tail-off in February and March. These two months are typically low months for business and leisure travel and this year there is no Easter in March

PARIS (AFX) - British Airways PLC French groundstaff began an open-ended strike at 5.30 am today, the CFDT union said.
The company was unable to give immediate details of the impact of the strike on flights.

The union said strikers are seeking pay talks as well as protesting against working conditions and down-sizing.

Those striking include reservation and baggage-handling staff plus all those working at check-in at Roissy airport near Paris.

The CFDT said workers' pay has been frozen for four years

Participation in the stoppage was 40 pct at the central reservation centre in Lyon, it said.

BA launches in-flight email and surfing
By James Watson Over the Atlantic at 35,000 feet [11-02-2003]
The web at 35,000ft - but not in the cheap seats
The first British Airways scheduled flight to offer onboard internet and email access to passengers took off from London's Heathrow airport today.
The service, available only to selected members of the press today, will be available to regular passengers from next Tuesday.

Initially it is only available on planes flying from Heathrow to New York, but the airline plans to roll out the service to the rest of its long-haul flights over the next two years.

BA chief information officer Paul Coby explained that the system will allow the airline to test passenger response and work out an ideal price.

"This is a chance for us to gauge how customers react to the service and will help determine how we roll it out further," he said.

The airline is charging between $25 and $35 per flight for the service. It plans to test alternative prices during the trial period to determine what passengers are willing to pay.

"Obviously, this is a tough time for the industry, which has put some pressure on the roll-out of this service, but we believe it will be a very attractive offering for our passengers," said Coby.

Connexion by Boeing is supplying the service, which connects passengers' laptops to the internet via satellite.

Users can connect through Ethernet ports in their seats, or via 802.11b wireless networking.

Passengers can access their corporate email, files and business applications from 35,000ft above the Atlantic. This story has been written and filed en route to New York.

Connexion by Boeing, a provider of mobile information services, is a business unit of airline giant Boeing.

Stanley Deal, the company's vice president for global network sales, said that it is tough to bring new technology to market in the current economic climate, but that the service presents airlines with strong benefits.

"The ability to bring business travellers a great service is very valuable," he explained.

"And, by offering the airlines the ability to implement new applications that can reduce operating cost on a day to day basis, we give them an additional incentive."

Lufthansa launched a similar three-month trial of the Connexion by Boeing service on its Frankfurt to Dulles route last month. Japan Airlines and Scandinavian Airlines plan to test the system on their planes from 2004.

The service will only be available to BA's First, World Traveller Plus and Club World classes.

aisoph has never been out of his one bedroom council flat and it shows

now ainsoph - just how many times have you flown with BAY in the last year?

i asked because you say you fly with them and that they are your favourite. my recent experience has been poor, so i was interested to hear a different point of view from an apparently seasoned traveller such as yourself.

before this i have asked you 3 times - posts 3, 7 and 10 - but each time you have not given a straight answer. you don't have to answer of course. but why won't you?

If I am going to answer I will always do so asap ...... Maybe it's on the bugs thread :-))

February 13, 2003

BA to reveal stronger ties with Iberia
By Russell Hotten



BRITISH AIRWAYS is today expected to announce that it is strengthening its ties with Iberia, the Spanish airline, a move that will fuel suggestions that they could eventually merge.
The airlines are to start code-sharing on a range of routes, enabling them to synchronise flights and cut costs by helping to market each others services.

Rod Eddington, BAs chief executive, has made no secret of his admiration for Iberia and its potential to be a natural partner should national airlines be allowed to merge. BA already owns 9.9 per cent of the Spanish flag carrier.

BA and Iberia already code-share on services from London to Madrid and Barcelona. Now ten other destinations in Spain are being added, including Seville, Malaga, Bilbao and Valencia.

The arrangement needs clearance from regulators in Brussels, though the code- sharing is allowed to operate while officials scrutinise the deal.

The code-sharing also involves services run by GB Airways, the BA European operation, and brings the total number of code-share routes between the three carriers to 57.

Having had a proposed alliance with American Airlines blocked, and a possible merger with KLM fall apart, BA is moving tentatively towards Iberia and wants to avoid any more strategic embarrassments.

Iberia, once known as an airline basket case, has been re-capitalised and restructured, and is now seen as one of the most financially strong carriers in Europe.

Mr Eddington believes that the global economic slowdown, compounded by problems caused by a war in Iraq, could lead to an easing of restrictions on mergers between flag carriers, and he is positioning the airline for when the time comes.

Meanwhile, Mr Eddington has sought to head off rumours that he could quit BA after what he described as the most difficult years in his aviation career.

In an interview with Travel Weekly magazine he said that he would see out his days in aviation with BA, suggesting that he had no intention of leaving in the near future. It follows mutterings in the City that, after two years struggling to put BA on a sound financial footing, he might resign.

broker downgrade rumoured - target 87p - seen these before and great for traders :-))


ains

(EXTEL) STOCKWATCH - BA dips as CSFB cuts target to 87p, downgrades to
STOCKWATCH - BA dips as CSFB cuts target to 87p, downgrades to 'underperform'

LONDON (AFX) - Shares in British Airways PLC dropped in opening trades,
s
Credit Suisse First Boston slashed its price target and cut its rating, saying
cyclical and structural factors mean the shares are materially overvalued,
dealers said.
In an early research piece, CSFB chopped its target down to just 87 pence
from 130, and reduced its recommendation to 'underperform' from 'neutral'.
The broker based its new target on a terminal EV/IC figure of 0.8 and a
medium-term EBITDAR (earnings before income tax, depreciation, amortization and
rental of non-fleet assets) margin of 15 pct.
Saying BA shares are significantly overvalued, the broker questioned the
firm's ability to improve its EBITDAR. It warned that weak revenue trends within
the industry may well mean that the company fails to achieve an EBIT margin of
10 pct for any of the next three years, despite its 'Future Size and Shape'
restructuring programme.
It warns that BA will be pressured by non-cyclical factors, like slack
demand in Europe for premium class travel, the success of the budget airlines
business model, and the EU-US open skies agreement.
Further, BA will also continue to be pressured by cyclical problems like
ongoing weak demand for air travel on war fears, economic uncertainty, continued
high fuel prices and short-term pressure from North American airlines.
Consequently, the broker has just slightly reduced its earnings forecasts
for the year to March 2003, but it slashed its EBITDAR forecast for the
following year to 1.177 bln stg with EBIT now seen at 359 mln.
At 8.28 am BA shares were 1-1/4 pence lower at 111-1/2.
kgd/ak




For more information and to contact AFX: www.afxnews.com and
www.afxpress.com
*** end of story ***

There we go ..... good for trading and as I am looking to buy - good for me. Heard all this before and always interesting to see the same brokers churning out the same sort of targets .....



ains

what a very strange cove you are ainsoph. it's obvious from your evasions that you don't actually fly BA (or any airline) at all.

so that's a naughty little invention to bolster your recommendation of the share...

Dreamer .... I just won a fiver on what you just said :-))

To be frank - I came over here to get away from idiots like you and would guess it will not be long before you get a red card. Just had another fiver on 'you will not last until end of month' ..... don't let me down :-))

I do wonder if you can actually read ..... if you look above - you will see I want to buy not sell and therefore l am looking for a lower price - not higher .... duh

MUNICH (AFX) - British Airways PLC's loss-making German subsidiary Deutsche BA (DBA) said it is now unlikely budget airline easyJet PLC will exercise an option to buy it after wage talks with pilots collapsed.
DBA chief executive Martin Wyatt said the collapse of the negotiations has put DBA's existence under threat, and he is unsure how the business will continue.

He can not rule out that the business will have to be closed, Wyatt said.

All options are being examined, he added.

why

ainsoph is a bluffer but a funny one.his track record is dreadful.I wouldn't be surprised,if he hardly trades at all but does all this posting as a wind up.

Hmmmmmmmmmmmm ..... my track record is actually incredibly good and have been making a great living since I retired at 30 :-))

If you look at the BAY thread on the other side you will note the number of times I was able to trade successfully ......

ainsoph

I hope you are making lots of money.What about all the many losing trades,you've been caught out numerous times on Advfn ? You like going long,so why dont you trade the FTSE shares like N Rock,ABF,Unilever that are more stable,instead of B Airways,Telewest,BT that have collasped ???

maybe so, brian, but there was always the hope that ainsoph might turn over a new leaf on a new site! sadly not it seems.


what reason did ADVFN give for banning you ainsoph?

I trade shares that move around - that is my nature - I like life in the fast lane and don't want to sit watching a screen all day for a minute movement. Hence I hold between 40/50 whilst you peeps hold one


ains

This is a very risky one to trade at the moment, guys, should there be another terrorist attack on an airport watch it halve before you have time to remember how many you have, and should war start watch it drop 20% or so...

I am not trading at this time but waiting to trade - I hold just a quarter unit in order to keep the s/h discounts. Clearly the reason I am tracking is because of the likely 20/30% drop any minute ..... two peeps have just been arrested around the area :-)).


ains

why

i think he was banned for annoying other posters,u know wot he was up to.

kayak

i dont trade this share.

You seem to only trade insults at this time and not aware you have ever traded shares ..... looks like an another alias

Is this share going to fall big time when the war starts because I 'm in.

Yes it will fall

so why hold this mysterious quarter unit? why not sell and buy back lower?

mind you, i suppose you bought it at c300p, so you've really done yr money already

If you read past threads you will note I bought at sub a - made lots and held on to a quarter unit for the shareholder benefits etc ..... it's my way (and my money .... and still in profit)


ains


Market report: Thursday close
Michael Clark, Evening Standard 13 February 2003

OW-FLYING shares of British Airways have put investors on full alert amid fears the carrier will again lose its place among the top-flight companies that make up the FTSE 100.





The shares slipped 1 3/4p to 111p after some damning criticism by Credit Suisse First Boston, which shocked the City by slashing its 12-month target price from 135p to just 87p. If BA's share price comes remotely within the target range set by the broker, it is certain the group will be relegated from the top 100 in next month's quarterly reshuffle.


BA regained its place among the blue-chips last year following a steep decline in its share price and news of heavy losses. It regained its position at the first attempt in December but, with the price having declined from about 160p since the start of the year, things are again looking bleak. CSFB is worried that the industry's downturn is more secular than cyclical. Despite strong delivery on BA's Future Size and Shape strategy, there are concerns that structural problems may prevent margins recovering to their previous peak.

FRANKFURT, Feb 14 (Reuters) - Deutsche BA BAY.L has complained to German cartel authorities about Deutsche Lufthansa AG's LHAG.DE low prices on local flights and accused the national carrier of trying to push it out of the market.
Loss-making Deutsche BA, a unit of British Airways and acquisition candidate for low-cost carrier easyJet EZJ.L , said on Friday Lufthansa's latest pricing programme, which offers some roundtrip tickets within Germany for 88 euros ($95), was meant to pressure its rivals.

"Why are they offering such prices as a full service carrier?" said Deutsche BA Commercial Director Rudolph Hengefeld. "To push competition out of the German market."



LONDON (AFX) - Terminal two at London's Heathrow airport, focus of a major security alert since Tuesday, was partly evacuated as police investigated a suspect package, police said.
rom/mc/jlw

Staying with my minimum 1/4 unit at this time but have accumulated the cash for taking this to 2 units in due course

ains



MAJOR US airlines raised airfares $10 (6.20) each way effective immediately, in an attempt to counter steep fuel price increases that threaten an already struggling industry.

Continental Airlines became the first major US airline to raise fares to cover rising fuel costs. American Airlines, quickly matched the increase.

Fuel is one of the highest and least predictable costs facing airlines. In the past, a number of airlines have added what they called temporary fuel surcharges.

War now looks certain and my position remains one of tracking for a buy



S Times extract


February 16, 2003

War threatens to ground business
Dominic O'Connell and David Smith



BRITISH AIRWAYS and Virgin Atlantic are drawing up plans to ground part of their fleets in the event of war with Iraq. Airlines, tour operators and hoteliers are expected to be the British businesses hardest hit by the looming conflict in the Middle East.
BA, BMI British Midland and Virgin suffered severe disruption at their Heathrow base last week when armed troops encircled the airport, and terminals were closed after the discovery of suspicious objects.

Rod Eddington, BAs chief executive, said that in the event of a prolonged conflict, the airline would not hesitate to cut capacity. We will need to move quickly, just as quickly as we did after September 11, he said.

War would hit traffic on BAs all-important transatlantic routes, and on its extensive network of flights to the Gulf. Eddington said it was too early to say whether last weeks airport terror scares had harmed bookings. What would really be a problem would be if other countries started putting out advice to their citizens against travelling to the UK as a result, he said.

Eddington rubbished suggestions BA would be put out of business by war with Iraq. We have 1.8 billion in cash, and 2 billion of other assets from which we could raise money. We are in good shape, he said.

02/17 14:21
British Airways, Air France Cancel Flights Amid Snow (Update1)
By Andrea Rothman


London, Feb. 17 (Bloomberg) -- British Airways Plc, Air France SA and KLM Royal Dutch Airlines NV canceled more than 18 flights to New York, Washington and other points on the U.S. Eastern seaboard because of a snowstorm.

British Airways canceled 13 flights this morning and early afternoon, including a Concorde supersonic service to New York's JFK Airport, three to Washington and one to Philadelphia and Newark. It also canceled one returning flight from Washington and one from Newark. Air France dropped three to New York and one to Philadelphia. KLM canceled its two daily New York flights.

``We suggest that all passengers planning to fly to the East Coast call the airline before departure,'' said Air France in an e- mailed statement.

A blizzard warning for parts of New Jersey, New York and Connecticut is in effect because a storm that dumped up to 19 inches (48 centimeters) of snow on Washington is heading north, the National Weather Service said.

Snow and wind gusting to 40 miles per hour will produce whiteout conditions that can make driving impossible, the Weather Service said. As much as 18 inches of snow is expected before the storm heads out to sea, the Weather Service said.

British Airways said it is watching the weather on the East Coast and will make decisions about whether to fly as each flight comes up. It advised passengers to look on its website, BA.COM, or call a toll-free number that has been set up for passengers to rebook their flights. That number in the U.K. is 0800 727 800.

Virgin Atlantic Airways Ltd., the U.K.'s second-largest carrier, said it canceled its nine daily flights to New York, as well as its Boston and Washington flights.

Deutsche Lufthansa AG hasn't canceled any of its 20 flights to the U.S. today, said Thomas Jachnow, Lufthansa spokesman.

SAS Scandinavian Airlines System hasn't canceled any flights, said SAS spokesman Ulf Thorne. It sent two flights to Newark earlier in the day.

Interesting to see that BAY is climbing back towards 120p as war talk is a little more muted - Tony Blair currently live on CNBC



ains

FRANKFURT, Feb 18 (Reuters) - Deutsche BA said on Tuesday its parent British Airways Plc BAY.L would negotiate with other potential parties to sell its loss-making German unit if easyJet EZJ.L does not exercise its option to buy Deutsche BA.
Deutsche BA said it would continue in its drive to become a low-cost airline in cooperation with easyJet.

Deutsche BA and the pilots union earlier confirmed that talks between the two sides over a new pay structure, crucial for a possible takeover by European no-frills giant easyJet, had collapsed on Tuesday.


SYDNEY (AFX-ASIA) - Qantas Airways Ltd will sack 2,500 staff as part of a contingency plan to be implemented to protect profit margins if war breaks out in Iraq, the Sydney Morning Herald reported, without citing sources.
It said the plan is based on the assumption that passenger numbers would fall between 15-20 pct.

Qantas lost 15 mln aud before interest and tax from its international business in the six months to December 2001, when passenger numbers fell in the aftermath of the September 11 terrorist attack on the US.

marian.carroll@afxnews.com

franklin have bought another 1.1 million share - making 76 million in all or 7%


ains

Record 131m fails to lift Qantas
Bill Condie, Evening Standard 20 February 2003

ANTAS Airways, which is 17%-owned by British Airways, more than doubled its net* profit to a record A$352.5m (131m) for the six months ended December, well above forecasts. The Aussie carrier has been one of BA's better investments, delivering about 20m in dividends* last year.




But investors concentrated on the potential damage to future profits of war in Iraq to push the shares down 10%. At one stage, they were trading at A$3.35, down 11.8%, their lowest since October 2001.


The dramatic improvement to Qantas' bottom line was due to several factors. Its half-year result last time was hit by a collapse in international air travel after 9/11, but since then traffic has rebounded sharply. Qantas' domestic market has also seen a huge shake-up, with the collapse of rival Ansett. Qantas is now by far the dominant local player, although Sir Richard Branson's discount carrier Virgin Blue is closing in, with almost 30% of the market.


Despite the record profit, Qantas chief executive Geoff Dixon was downbeat. He warned that war in Iraq could depress passenger traffic. 'Our general scenario is if there is a war of any length at all, it (traffic decline) would be 15% to 20%,' he said. 'Forward bookings for the next 16 weeks have slowed considerably in some markets, including Japan, Europe and the United Kingdom.'


Qantas will take several steps to deal with tough market conditions, he added. These would include a reduction in domestic and international operations from next month.


He also prepared the market for up to 1,500 job cuts which may be necessary in the event of war. But Dixon said none were on the cards yet.


However, he thought the airline's planned leisure travel unit would perform well: 'We expect to improve our margins as we continue to roll out our strategy to operate all-economy class aircraft on leisure routes that have little or no demand for business travel.'

I think GB has gone mad ..... the Taxes are already a significant part of short haul trip and as they say - we need this like 'a hole in the head'


ains


Holidaymakers face 100 tax hit
Jonathan Oliver, Mail on Sunday 23 February 2003

HE cost of a family holiday is set to soar by 100 under a hike in airport tax planned by Gordon Brown. The shock move, expected to bring in 1bn to the Treasury, has infuriated industry chiefs who predicted it would lead to thousands of job losses at a time of plummeting passenger numbers against a backdrop of terrorism and war with Iraq.




A Ministerial review of the charges, to be announced soon, is expected to lead to a doubling of air passenger duty from 5 to 10 for economy class flights to Europe and from 20 to 40 for journeys further afield. Such a rise would add an extra 100 to the cost of a holiday in Florida for a family of five.


But airlines claimed this would 'cripple' business and target the poor, who would no longer be able to afford foreign holidays.


The move will be seen as yet another stealth tax by the Chancellor who is struggling to fill a black hole in public finances. Industry insiders claimed the Treasury was using environmental considerations as an excuse to increase the tax.


A spokesman for the Freedom to Fly coalition, which represents airlines and airport operators, said: 'If Ministers have to consider a new tax on travellers, so be it. But they can't have picked a worse time to launch this idea. The industry is just recovering from the effects of 11 September, and now we have to brace ourselves for war in the Gulf.'


However, the rise will appease green campaigners who say the aviation industry has long been undertaxed and airport expansion-threatens to blight thousands of homes with air and noise pollution.


Airlines pay no tax on aviation fuel, an anomaly guaranteed by an international agreement dating back to the end of the Second World War, and airline tickets are exempt from VAT.


The aviation industry also benefits from duty free shopping, a perk worth 500m a year despite having been abolished for flights within the EU.


Friends of the Earth claims that aviation benefits from subsidies and tax breaks are worth 9bn a year. This means that flying from London to Manchester, for instance, is sometimes cheaper than travelling by train. They say jets are one of the biggest generators of greenhouse gases.


Paul de Zylva, of the group, said: 'The industry has grown fat with special treatment. It is time it paid an appropriate level of tax, related to the pollution it produces.'


A rise in airport tax would be a major U-turn in Treasury policy. In last year's Budget, the Chancellor announced cuts in air passenger duty for some flights.


The row over the taxes comes as the aviation industry is lobbying for nine new runways to be built in Britain. Three of these are likely to be in the South-east.


A Treasury spokesman said: 'We plan to have a discussion with stakeholders on the most effective economic instrument for ensuring the aviation industry is encouraged to take account of its contribution to global warming and air and noise pollution.'


Easyjet spokesman Toby Nichol said: 'The industry needs this like another 11 September. The way to do it is to do it as a proportion of the fare. If you pay more for your fare, you pay more tax.'




2003 Associated Newspapers Ltd.

LONDON, Feb 24 (Reuters) - British Airways BAY.L has cut services to the Gulf and is to lodge stop-over crews in Cyprus after a British worker was shot dead in Saudi Arabia and as war looms in Iraq, the carrier said on Monday.
Europe's largest airline said the decision to stop using Gulf hotels followed a change in security advice from the British Foreign Office.

"The planes will still go down to the Gulf but the crews won't stay in the hotels which we would normally use down in the Gulf region," a British Airways spokesman told Reuters. "They will spend their days of rest in Larnaca, Cyprus."

The carrier also said it was reducing the number of flights from London to Dubai to one a day from two and had suspended services to Muscat, Oman, from Abu Dhabi.

"It's all part of the safety and security of the operations," said the spokesman.

Last week, a gunman shot dead a British defence contractor working for BAE Systems in Saudi Arabia.

On Monday, the world united behind demands that Iraq begin destroying its longer-range missiles or face U.N. Security Council action that could finally trigger war.

British Airways is cutting 13,000 jobs and slashing capacity in response to a slump in demand for air travel caused by economic uncertainty and the September 11 plane attacks in the United States in 2001.

British Airways warned this month its return to profits would be under threat if war broke out.

February 25, 2003

EU seeks finish to 'national' airlines concept
By Russell Hotten



THE European Commission is to demand that member governments give up the idea of national airlines, marking another step towards allowing mergers between flag carriers.
Tomorrow the Commission is due to request that member governments drop the right to negotiate aviation deals with states outside the EU, and give airlines from other countries outside their own equal rights to fly from airports.

The move is part of the Commissions attempt to create a truly open market in European aviation, but which could still take several years to impose.

Last November the European Court of Justice gave a boost to the Commissions ambitions when it ruled that parts of the existing bilateral agreement with the United States broke European Union laws.

Airlines such as British Airways, Iberia or KLM are restricted from consolidation by national governments which have preserved national carriers as symbols of statehood.

The EU executive tomorrow will tell members that it is time to recognise airlines as community carriers, not national carriers.

The Commission claims that this would thereby unblock consolidation within the airline industry by removing existing provisions that discriminate on the basis of nationality.

The Commission says the current system of bilateral pacts is preventing the creation of a true single European aviation market and stopping much-needed consolidation.

The nationality clauses within aviation pacts complicated merger plans between British Airways and KLM in 1998. The talks were eventually aborted amid uncertainty over whether the new carrier could keep its flying rights in both countries.

Rod Eddington, BA chief executive, has said that consolidation among national airlines is essential, and he has recently hinted that he would like a deal with Iberia should regulations allow.

Meanwhile, easyJet, Europes biggest budget airline, confirmed yesterday that it wanted to acquire take-off and landing slots at Orly airport, in Paris, used by the collapsed Air Lib.

However, Ray Webster, easyJets chief executive, who was in Paris yesterday, said the acquisition of the slots could not be conditional on hiring part of Air Libs workforce.

EasyJet is drawing up plans to apply for about 20,000 slots at Orly.

02/25 08:25
EasyJet Lowered Fares 6% to Attract More Passengers (Update1)
By James Regan


London, Feb. 25 (Bloomberg) -- EasyJet Plc, Europe's largest low-cost airline, charged 6 percent lower fares in the four months through January and said first-half prices will drop in line with rival Ryanair Holdings Plc as it seeks to attract passengers.

``They are experiencing quite a bit of yield pressure here,'' said Morgan Stanley analyst Martin Borghetto, who rates the stock ``overweight.'' The comparison with Ryanair implies EasyJet's fares in the six months ended March 31 might be down as much as 10 percent from the previous year, he said.

Ryanair featured on todays Working Lunch after they cancelled 100000 trips ..... hmmmmmmm ..... interesting comparison made between them and BA in terms of service and what you get.

Pleased I fly BA and let them have the worries if something goes wrong .... end conclusion wws very much 'you get what you pay for'



ains

Credit where its due, ainsoph did buy some BAY at 95p, he posted it live then sold half of them for a good profit at a later time, he posted that too.

That is true :-)) ..... bought a few before close as a short term play @ 103p



ains

BBC - Buzz, the Stansted-based low-cost airline, is to cut 12 routes, reduce its fleet and make up to 400 workers redundant, its new owner has said.
Ryanair, which in January agreed to buy Buzz from Dutch carrier KLM, also confirmed that all Buzz flights would be grounded "for the month of April 2003, at least".

It said the restructuring plans would be presented to staff and creditors over the next few days after which a final decision would be taken on whether to restart some flights on 1 May.

Ryanair said Buzz's financial position was "extremely precarious", and that the airline was losing more than 1m euros (683,000) a week.

More soon.

Not helping


LONDON (AFX) - British Airways PLC has confirmed that it is considering the future of its Concorde fleet due to poor demand for the supersonic service.
"The retirement date of Concorde is under review, but no decision has been made at the moment as to when that will be," said a BA spokeswoman.

BA has struggled to attract Concorde customers since an Air France Concorde crashed in Paris killing 114 in 2000.

"In the current commercial environment where business and premium brands are under increased pressure it's only prudent for us to think carefully about when we should retire Concorde," said the spokeswoman.

She could not say when a decision would be made on the seven plane fleet, only five of which are in current service.

"There's a huge number of factors to consider," she added.

jdd/lam

26 Feb 2003 17:00 GMT

BA reviews Concorde's future in weak market

By Daniel Morrissey
LONDON, Feb 26 (Reuters) - The future of supersonic air travel between London and New York could be in doubt, with British Airways asking: Should Concorde be retired early?

The review by Europe's biggest airline comes at time when major airlines are under pressure from shrinking corporate travel budgets, depressing sales of business class tickets.

"We are looking at when Concorde should retire, although no decisions have been taken," said a British Airways spokesman. The carrier has five Concordes certified to fly until 2009.

Almost three years ago an Air France AIRF.PA Concorde crashed near Paris and killed 113 people, forcing both the British and French carriers to pay for costly modifications.

BNP Paribas analyst Nick van den Brul said it made sense for British Airways to retire Concorde early because the threat of impending war in Iraq was cutting business travel plans.

"The Concorde has never been that profitable anyway -- a marginal profit and it's just a flagship," said van den Brul. "It is quite true that all of the leading carriers are seeing the pre-war risk of substantial declines in business travel."

The Concorde has one daily London-to-New York flight.

"We will continue to fly it as long as it is safe, reliable and commercially viable," said the spokesman for British Airways. The airline has slashed thousands of jobs and reduced its capacity in response to the weak demand for air travel.

The king of the rich jetset for 30 years, Concorde has always been synonymous with superstars who quaff champagne and guzzle lobster while travelling at twice the speed of sound.

But the reality is much different.

Analysts estimate about 80 percent of Concorde's passengers were business travellers. Falling stock markets and a drought in merger and acquisition business has forced City of London and Wall Street banks to cut tens of thousands of jobs.

British Airways, which relies heavily on the transatlantic business travellers for high-margin revenues, warned this month it faced flat revenues in 2003 and a tougher year than 2002.

Well I gave up on BA (aka b*gger all) after a load of hassle and poor treatment after years of loyalty. I think they've lost it again.

I fly Virgin to the States all the time now. No airline is perfect, but they are not bad at all. And AmEx/Virgin will do you a deal on Upper Class fares. And the girls are charming.

GW

typical French ....


PARIS (Reuters) - An Air France supersonic Concorde airliner bound for New York has lost a piece of its rudder in flight, but still landed safely and on time at its destination, the airline says.
Air France said on Thursday a technical investigation was under way.

The incident comes a week after an Air France Concorde on the same route made an emergency landing in Canada after one of its engines malfunctioned.

Air France and British Airways -- the only airlines to operate the supersonic jets -- grounded their Concorde fleets after an Air France Concorde crashed on take-off from Paris on July 25, 2000, killing 113 people.

An investigation concluded a burst tyre had ruptured a fuel tank and flights resumed in November 2001 after modifications were made to avoid a repetition of the accident.

The Concorde entered service in 1976 and Air France and British Airways have 12 of the planes still flying in total.

To be fair to Air France, (although why I should escapes me) this fault has occurred at least twice that I can recall on BA Concordes.

More worrying is the cover up - it's hard to describe it as anything else - over the Air France Concorde crash.

It was blamed on debris on the runway from a departing Continental flight: to my knowledge, this played little or no part in the accident. A combination of other factors were responsible, including maintenance and technical crew error.

G

Looks like we will see them all grounded before much longer .....


ains


February 28, 2003

EasyJet 'reneged on deal with BA'
By Russell Hotten TIMES



A UNION representing pilots at Deutsche BA, the German subsidiary of British Airways, accused easyJet last night of reneging on an agreement to buy the operation.
The accusation will fuel suspicions that easyJet, Europes biggest budget airline, wants to walk away from a deal because of rising fears of a new recession in Germany.

It leaves BA in a difficult position because the airline has been desperate to sell its loss-making German division and may now be forced into a fire sale.

Georg Fongern, a spokesman for the Vereinigung Cockpit union, said pilots had verbally agreed to easyJets request for changes in working practices at Deutsche BA. Herr Fongern said: All of a sudden easyJet decided not to sign. They changed the terms of the agreement. It was not a surprise because we no longer think easyJet wants DBA.

EasyJet, which is paying BA 600,000 (410,000) a month to keep open an option to buy Deutsche BA, has not formally announced that the acquisition has been abandoned.

However, other sources who have spoken to easyJet executives say the company views a Deutsche BA acquisition as too risky given the worsening economic environment in Germany.

Ray Webster, chief executive of easyJet, has said that he wants to make a firm decision on Deutsche BA by the end of March, although the option to buy runs out in August.

No talks between easyJet, which has representatives on the Deutsche BA board, and the pilots union are planned. A spokesman for easyJet denied that a deal with the pilots had been agreed.

US landing fees set to soar JANES

We are hearing anecdotally that due to lower aircraft traffic volumes, some airports are actually considering increasing their landing fees and terminal rentals by as much as 30% to 40%," says Tom Browne, managing director, for the aviation infrastructure department at the Air Transport Association (ATA).

While only anecdotal evidence that is probably only applicable to a limited number of the hundreds of airports in the US, the fact that traffic is down and fee rises are under consideration still does not bode well for the industry.

With less aircraft in the air, airports still have to cover their fixed operating expenses incurred when running the terminal buildings, runways and related infrastructure. Added to this is the additional expense of improved security measures that the Transportation Security Administration (TSA) is responsible for in 450 of the nation's airports.

The problem with introducing the new TSA measures is that there is little, if any, funding available to pay for these new security systems and staff - despite its being a function of the federal government. Thankfully this may change.

But one problem that it may raise is what collateral can be used to borrow against for those airports that are already close to reaching their maximum debt level. Most of the improved security measures will be hi-tech equipment and employees as opposed to large brick and mortar infrastructure assets.

Agreeing the fee
Once airports have determined what to charge the airlines for landing fees over the course of the next six to 12 month period, the real negotiations begin. But the negotiating leverage of the airline will depend upon the airport that it uses.

An airline representing a significant portion of the flights using one airport terminal, with another hub nearby that is underused, will tend to have much more bargaining power than an airline that is one of many, using an airport with no nearby alternatives. And with time being of the essence, there is a mutual benefit for the two sides to ensure that all paths, however creative, are explored quickly.

There is still substantial excess capacity among the airlines with a significant proportion of the airline industry already in the midst of Chapter 11 proceedings. And with the looming threat of war with Iraq in the Middle East, another external shock is on the way that will further reduce air traffic levels.

It looks like any increase will just be passed onto the airlines that are likely to just add the landing fee increase to passengers' tickets.

Perhaps a more worrying issue for passengers is the proportion of a ticket that federal taxes and other fees already represent. According to ATA statistics, in 1972 it represented 7% of the ticket's total price. In 1992 more than double, at 15%. In 2002, a full 26% of the price. This is a significant portion of the ticket's cost.

It will be interesting to see what the airlines can get away with in this skittish period of air travel.

02/28 07:42
BAA Can Raise Airline Charges, U.K. Aviation Authority Says
By James Regan


London, Feb. 28 (Bloomberg) -- BAA Plc, the world's biggest airport operator, can raise airline fees by as much as two-thirds at its London airports to help fund an 11-year, 8.1 billion-pound ($13 billion) expansion, the U.K. Civil Aviation Authority said.

Heathrow airport charges would rise to 6.48 pounds per passenger in fiscal 2004 from 5.60 pounds in fiscal 2002, followed by an increase of retail price index plus 6.5 percent in each subsequent year. Gatwick fees would rise to 4.32 pounds in fiscal 2004 from 4.25 pounds in fiscal 2002, with London Stansted rising to 4.89 pounds from 4.39 pounds. Charges at both would rise in line with the retail price index in the following years.

``These price cap increases are necessary to enable BAA to deliver services to a growing market through a major investment program,'' the authority said in a Regulatory News Service statement.

Raising the amount BAA charges airlines for using its airports would help finance a 3.7 billion-pound fifth terminal at London Heathrow airport, which is due to open in 2008. BAA expects the number of passengers using its three London airports to increase 46 percent through 2013.

The new limits on BAA's airline fees will apply from April 1 for a five-year period.

An increase in charges at the UK's biggest airport, could push up air fares, industry figures have warned. BBC news

The Civil Aviation Authority (CAA) announced in Friday it was putting up landing charges at Heathrow airport in west London.

We will fight this proposal tooth and nail

Sir Richard Branson

The increase will result in airlines facing a 36% increase in charges over the next five years, but the CAA said its decision would not "materially affect air fares."

The news, however, was seen as another blow by the cash-strapped aviation industry, and Virgin Atlantic said it had "no choice but to pass these increases on in fares."

'Sheer madness'

Virgin chairman Sir Richard Branson said: "This is sheer madness.

"At a time when fuel prices are at $40 a barrel and when BAA is still making massive profits, whoever suggested that it be allowed to raise charges to airlines by 40% must be off their heads.

"It begs the question - who regulates the regulators? We will fight this proposal tooth and nail or we'd have no choice but to pass these increases on in fares."

British Airways echoed Sir Richard's comments.

"These increases are bad news for the travelling public and bad news for an industry already in financial distress," said a spokesman.

Charge effect

The effect of the changes will mean that take off and landing charges - which include parking - will rise from 6.13 to 6.48 in 2003 to 2004.

It will then increase on average by 43p each year over the next five years.

"These price cap increases are necessary to enable BAA to deliver services to a growing market through a major investment programme, its 7.4bn 10-year plan to boost long-term capacity at its London airports, which includes the fifth terminal at Heathrow," the CAA said in a statement.

Stansted and Gatwick airports are also affected by the increases.

The maximum allowed charge at Gatwick would be 4.32 per passenger in 2003/04 and then rise by RPI in each year thereafter, while Stansted would be 4.89 in 2003/04 and then increase by RPI over the remaining four years.

Investors seemed unpeturbed by the charges, with BAA shares up 5% to 432p in early trading.

BA launches fresh drive to save 450m costs
By Kevin Done, Aerospace Correspondent FT
Published: February 28 2003 20:13 | Last Updated: February 28 2003 20:13


British Airways is launching a fresh cost-cutting drive aimed at making savings of 450m ($708m) a year by March 2005, as the carrier struggles to improve its profitability in a weakening air travel market.


Much of the burden of the latest measures will be carried by the group's 16,000 suppliers worldwide, as BA seeks to cut external expenditure by 10 per cent.

The latest round of cuts is in addition to the current two year programme aimed at taking 650m out of the cost base by March 2004.

Rod Eddington, BA chief executive, said that "tough market conditions" meant that additional cost saving initiatives were needed over the next two years.

The continued threat of war, economic uncertainty and competitive pressures had stalled predicted growth in the airline industry. BA's revenues for the current financial year to the end of March would be 1.5bn less than two years ago.

"Our focus must be on managing what we can control, while preparing for the impact of war," said Mr Eddington.

The aviation industry is in the middle of its worst financial crisis with airlines in the US and transatlantic services, where BA is a leading player, hardest hit. Two of the top seven US airlines, United Airlines and US Airways, are already in court-administered bankruptcy and there are growing concerns about the financial prospects of American Airlines, the world's largest carrier.

BA is expected to report a pre-tax profit for the current year to the end of March, as it recovers from a 200m loss a year ago, its worst result for 20 years. But the group has repeatedly warned that the improvement can only be based on cost-cutting rather than on increasing revenues.

The airline said on Friday that it was aiming to cut its annual 3bn external expenditure, excluding fuel, by 10 per cent, or 300m, by March 2005 with a further 150m to be cut from internal costs.

No further job cuts are envisaged in the latest cost reduction programme, but the group is already in the middle of eliminating 13,000 jobs between August 2001 and March next year.

It said it was planning for no rise in the workforce, while increasing the flying programme or capacity by 5 per cent year-on-year in 2003/04 and by a further 1 per cent in the year to March 2005.

Part of the cost-cutting is supposed to come from a move to "a more self-service culture" through a programme called "Customer Enabled BA".

The targets include a move to 100 per cent use of eTickets - replacing paper tickets - by December 2004, 80 per cent of customer transactions available online by March 2004, and a further simplification of the fare structure with a 50 per cent reduction in fare types and 50 per cent self-service check-in by March 2005.

BA is also aiming to streamline its internal processes with a target of achieving 80 per cent of employee administration online with no duplicated paper processes.

LONDON, March 1 (Reuters) - British Airways Plc, Europe's biggest airline, said on Saturday it will slash costs by an extra 450 million pounds ($711 million) a year by March 2005 in a weak aviation market that has "become even more challenging."
The fresh two-year cost-cutting drive comes on top of an existing programme that is on track to deliver annual savings of 650 million pounds by March 2004 by chopping 13,000 jobs, reducing capacity and closing loss-making European routes.

"This business plan builds on the achievements of the future size and shape programme, while acknowledging that the changing environment has become even more challenging, and it targets 450 million pounds of additional cost savings by March 2005," a spokeswoman for British Airways told Reuters.

The big airlines in Europe and the United States have been reeling from the slump in demand for air travel, particularly lucrative business travel as companies reduced travel budgets.

The September 11 aircraft attacks on the United States in 2001 accelerated the airline industry downturn that began as economic growth slowed. The slump has hit British Airways particularly hard on its important North American routes.

The deep cost cutting at the debt-laden British Airways helped it post a third-quarter profit last month, but it also warned of flat revenues in 2003 and a tougher year than 2002.

It had debt of 5.2 billion pounds at December 31.

Shares in British Airways closed at 104-1/4 pence on Friday. The stock has underperformed the benchmark FTSE 100 Index .FTSE by about 18 percent over the past six months.

The spokeswoman said the new savings would mainly come from a 10 percent reduction in external costs, excluding fuel, migrating 80 percent of all customer services to the Internet and making electronic tickets available to all customers.

No more reductions in staff were planned, she said.

press coverage on the proposed cuts continues ....



BA banks on self-service to help cut further 450m
By Adam Jay (Filed: 03/03/2003) Telegraph


British Airways has unveiled its business plan for the next two years, in which it will aim to make 450m of savings.

The cuts come on top of the two-year "Future Size and Shape" programme, which runs until March 2004, and intends to save 650m and cut 13,000 jobs. The new plans include a 10pc reduction in spending, and a move towards a "self-service culture" for both passengers and staff.

Chief executive Rod Eddington told BA's staff newspaper: "With Future Size and Shape we embarked on a two-year journey to transform our business into a leaner, fitter, simpler and more competitive airline.

"One year on, we are on track to deliver, but tough market conditions mean new, additional cost-saving initiatives are also needed over the next two years."

Mr Eddington said that the group had considered postponing its latest plan while war in Iraq was looming. "We decided we cannot put our business on hold. Our focus must be on managing what we can control while preparing for the impact of war."

BA's focus on self service will lead to targets such as 80pc of customer transactions and 100pc of executive club transactions being available online by March 2004. It will also aim for a 50pc reduction in fare types and 50pc self-service check-in by March 2005.

The airline says it has no plans to increase job cuts beyond the 13,000 envisioned under Future Size. About 9,200 jobs have been lost since August 2001, while an extra 800 will follow this month.

sky news


Passengers flying to and from UK airports faced the worst delays in Europe last year, according to the latest figures.


Planes using UK airspace in 2002 accounted for 37% of European flight delays - the largest share in Europe, and up from the share total of 14% in 2001.

Italy was the only other country that had an increase in delays of more than 1% between 2001 and 2002.

The figures were compiled by Eurocontrol which supervises aircraft movements between 24 countries.

Heathrow airport had the largest rise in delays last year and also the largest rise in the number of flights delayed by 60 minutes or more.

Together with Amsterdam and Paris, Heathrow also had the the largest amount of delays on departing traffic.

Dublin, Edinburgh, Manchester and Glasgow also suffered above-average delays.

Overall, the average delay per flight for planes in UK airspace was three minutes, while only four other countries had an average delay of more than one minute.

Compared with 2001, the UK was the only country to have had an increase in delays of more than one minute, whereas it fell by more than a minute in six countries.

MUSCAT (AFX) - British Airways PLC said it will resume flights from London to Oman on March 30 after a five-week suspension due to travel warnings to UK nationals.
"The new schedule will allow BA to maintain a smooth operation in the region, with all services continuing via Larnaca (in Cyprus)," BA's country manager in Oman, Sunita Gomes, told Agence France-Presse.

The revised schedule will see a twice-weekly service from Muscat to London, Gomes said.

Elsewhere in the Gulf, BA will operate three flights a week to Abu Dhabi, 11 to Dubai, three to Doha, four to Jeddah and three to Riyadh.

Dedicated flights from Abu Dhabi, Bahrain, Doha, Dubai and Kuwait will be operating directly via Larnaca to London Heathrow, Gomes added.

BA announced the temporary suspension of its Muscat flights on Feb 24, saying it was making "adjustments in its schedule for the whole of the Gulf region" following changes in travel advice from the Foreign Office to British nationals travelling to Bahrain, Jordan, Qatar and Saudi Arabia.

Tuesday March 4, 11:28 PM





British Airways backs profit target

NEW YORK (Reuters) - The chairman of British Airways (LSE: BAY.L - news - msgs) has reaffirmed the airline's profit forecast for the current year, assuming no war, and backed its view of flat revenue for the year beginning in ADVERTISEMENT

April.


In an interview with Reuters, he also said Europe's largest airline expects no further job cuts in addition to the 13,000 cuts already disclosed.


"On any competitive basis, we're certainly in good shape to come through any war. We certainly believe that our survivability is very high indeed," said the chairman, Colin Marshall.


He spoke in an interview after dedicating a renovated British Airways Terminal 7 at John F. Kennedy International Airport in New York.


BA last month posted a small third quarter profit, but warned revenue will likely not rise in 2003. The September 11 attacks hit BA hard by damping travel on its key North American routes and it has cut ticket prices in the face of pressure from low-cost airlines such as EasyJet Plc (LSE: EZJ.L - news) and Ryanair (Dublin: RYA.I - news) .


Saturday, BA said it will slash costs an extra 450 million pounds a year by March 2005, on top of an existing program to deliver annual savings of 650 million pounds by March 2004, including 13,000 job cuts.

very narrow trading range today around a - 4 million traded




03/05 13:07
British Airways, Rivals' Ratings May Be Cut, S&P Says (Update1)
By James Regan


London, March 5 (Bloomberg) -- British Airways Plc, Deutsche Lufthansa AG and rival European airlines' credit ratings may be cut as air travel slumps, and will be reviewed if there is an outbreak of war in Iraq, Standard & Poor's said.

Traffic will probably increase by less than 5 percent this year at Western European carriers, S&P said. Full-service airlines will probably have less than 3 percent traffic growth and may post no increase, the rating service said.

``So far in 2003, traffic and yield levels have been lower than previously expected, due to weak economic conditions and fears of a military conflict, and the outbreak of a war in Iraq would make matters even worse,'' said Virginie Casin, a director of S&P's Corporate Ratings Europe, in a report.

Full-service airlines have grounded planes, scrapped routes and cut jobs as they try to lower costs amid a decline in air travel. British Airways and KLM Royal Dutch Airlines NV have said they may idle more aircraft in the event of Iraq conflict after Lufthansa said it will ground 46 planes.

Average fares will ``remain weak'' this year because of a drop in premium traffic as corporate travel budgets are crimped amid an economic slowdown, S&P said. Customers who have switched to cheaper seats are ``unlikely to revert to their previous traveling patterns in the near future.''

``Carriers' ratings would likely come under renewed pressure if low fares were to be aggravated by an increase in the proportion of empty aircraft seats,'' S&P said.

Filling Fewer Seats

KLM said today it filled 2.2 percent fewer available seats in February as fare cuts failed to attract enough new passengers to take up extra capacity. Europe's No. 4 carrier is forecasting a second consecutive fiscal-year loss in the 12 months ending in March.

In the event of an international armed conflict, ``the risk of strained cash flow generation and of prolonged overcapacity is likely to have more serious rating implications than a continued softening in demand,'' S&P said. European airline credit ratings will be revised with ``negative implications'' should war break out in Iraq, Casin said.

Some unrated Europe airlines with low or negative cash flow or which face refinancing deadlines will probably fail or need outside financial aid ``should a marked decline in traffic levels occur,'' Casin said.

``Investors should also note the risk of critical credit deterioration for airlines based in southeast Europe -- Turkey, Greece, Italy, for example -- if hostilities break out in Iraq,'' she said.

MOSCOW (AFX) - British Airways PLC is to operate out of Moscow's Domodyedovo airport from July 1, transferring from Sheremetyevo airport where its flights have operated previously for the past 45 years, regional manager Daniel Burkard said.
The decision to leave Sheremetyevo "was taken to improve the service to passengers," Burkard told a press conference, explaining that Domodyedovo, southeast of Moscow, would provide better infrastructure and transfer services and easy access.

The airport is linked to the city by an electric train, unlike Sheremetyevo, northwest of Moscow, access to which is provided by bus, taxi or private car.

"Domodyedovo international airport has the biggest and fastest growth in the Russian Federation," Burkard noted.

lg/bb/wf/cmr

No-one seems to have mentioned the fact that BA will drop out of the FTSE100 based on next Tuesday's market caps unless there is a strong rally between now and then.

Its current average position is below 110th, which is not good. Surely that will hurt the share-price?

James (Shares)

We talked about that a couple of weeks ago .... it has been well signalled and don't see any real ST effect .... often helps - as other funds come in.

The war situation is a far more sensitive situation



ains

Overall load factor flat for Feb - see ann

05 Mar 2003 15:03 GMT

UPDATE 1-BA February traffic falls in tough market

(Adds details, share price, background)
LONDON, March 5 (Reuters) - British Airways Plc, Europe's largest airline, said on Wednesday its February passenger traffic fell 5.6 percent from a year earlier and its markets remained challenging "as the threat of war and terrorism grows".

BA, which has slashed jobs and cut capacity in response to weak demand on transatlantic routes and competition from Europe's low-cost airlines, said its passenger seat load factor dropped 1.6 percentage points to 70 percent versus last year.

BA said snow and ice at London's Heathrow airport, snow storms in the United States and security alerts at Heathrow and Gatwick airports contributed to the weaker February traffic.

Shares in BA were down 2.7 percent at 98 pence by 1501 GMT.

Chairman Colin Marshall told Reuters in New York on Tuesday the carrier was comfortable with its profit forecast for this financial year so long as war was avoided in Iraq. Marshall said in the interview BA was keeping its flat revenue outlook and was in "good shape" to come through any war.

BA said on Saturday it will slash costs by an extra 450 million pounds ($711 million) a year by March 2005 on top of an existing cost-cutting drive designed to extract annual savings of 650 million pounds by March 2004 by chopping 13,000 jobs.

BA said the decline in February passenger traffic, measured in revenue passenger kilometres, comprised of a 14.3 percent reduction in premium traffic -- first class and business class passengers -- and a 5.6 percent drop in non-premium traffic.

It cut capacity by 3.5 percent.

The airline said passenger traffic on its lucrative Americas routes was down 4.1 percent in February and the biggest fall was on Asia-Pacific routes, down 22 percent.

surely BAY will fall out of the FTSE 100 next week as the share price is sub 100p..

yes they probably will .....

5 March 2003, This Is Money

RITISH Airways shares dived near to their all-time lows today after the flag carrier confirmed the muchfeared collapse in business traffic.




It said the number of passengers flying in premium-class seats in February was down 14.3%, contributing to an overall year-on-year fall of 5.6%. That compares with an already poor February 2002 figure when BA was plunging into losses after 9/11.



The monthly statistics show BA's aircraft are flying less full, down to a load factor of 70% despite cuts in the number of services. The news sent the shares off 3 1/2p to 98p, just above their October all-time low. Worst-hit was the Asia-Pacific market, down 22% year on year.


'The economic and political environment is challenging as the threat of war and terrorism grows,' said the airline.

'A number of operational issues have impacted the month including snow and ice at Heathrow and major snowstorms at many of our US east coast gateways, and security alerts at Heathrow and Gatwick,it added.


The news came as BA's credit rating came under renewed pressure from rating agency Standard & Poor's, which issued a bearish note on the western European airline industry, warning carriers face debt quality downgrades even if there is no war in Iraq.


Even including the large growth at the low-cost airlines, S&P reckons that passenger growth across Europe will only be 5% while the largest players, BA and Lufthansa, are likely to go into decline.

'Economic and competitive pressures mean average fares will remain weak in 2003, reflecting the unfavourable cabin mix and sustained price competition,' said the agency.


'Ratings would likely come under renewed pressure if low fares were to be aggravated by an increase in the proportion of empty aircraft seats.


'Worsening economic conditions have led to a tightening of corporate and leisure budgets. Given the bleak outlook for 2003, passengers who have shifted from premium to economy are unlikely to revert to their previous travelling patterns in the near future.'


2003 Associated Newspapers Ltd.

Fly the Flag? The only one left in the bag is the white one. BA has no medium term future due to it's appalling judgement in recent years. It's carriers like BA that held back the earlier development of air travel to the levels we are now seeing. I hold BAA shares because passengers willl continue to grow strongly in the years ahead.

Credible carriers will come through probably on a take over basis to free up the wasted slots used by BA. It's a tradegy for passengers that they have continued to trade for so long.

I fear that the following missive that I received by email from the BA Executive Club (of which I was a Silver Tier member for 15 years hence received lounge access and occasional upgrades) indicates further distancing of the company from its loyal business customer base. My "life" membership, granted in april last year, was terminated at two weeks' notice in September. All company travel has been moved elsewhere as a result.

Check out the paragraph about Executive Club Corporate Card Agreements below. Another bunch of business travellers will now vote with their feet, just as I did.

It's truly tragic.

MM
PS: Note that they didn't even spellcheck this: "Exective" in the first line.


The British Airways Exective Club is changing on 1st July 2003.

Based on customer feedback, we are simplifying the programme and introducing some new benefits for members.

****Get more from your BA Miles****

Use your BA Miles to upgrade a ticket to the next cabin^ with Miles for Upgrade

Combine cash with your BA Miles to redeem sooner with Part Cash Part Miles

Fewer BA Miles required for flights within the UK and to some European cities

You will also continue to earn bonus BA Miles when travelling Concorde, FIRST, Club World, Club Europe, or World Traveller Plus. However, the bonus levels will be reduced to allow for the other changes being made to BA Miles

*****Simplified Tier Points****

- You will earn Tier Points on more economy fares
- Extra Tier Points can be earned on flights within the UK and on some European routes
- The entry and renewal levels for Silver members will be aligned at 600 Tier Points. We have lowered the Silver entry threshold from 700 to 600 Tier Points

As part of these changes, Executive Club Corporate Card Agreements (ECCCAs) will be withdrawn on 1 July 2003. However, your membership of the Executive Club will continue.

****All these changes will be effective from 1 July 2003****

We hope you will be able to enjoy the new benefits.

For full details of these changes and the new Terms and Conditions, please visit http://www.ba.com/executiveclubchanges

Yours sincerely,

Sharon Callagahan
Manager, Executive Club

A dog is for life, but BA Executive membership is not.

Haystack:

Very drole. I have a fund of other anecdotal evidence, mainly from flight crew, which indicates that all is not well in British Scareways, despite the unlamented departure of Bob Ayling.

Flight crew have always despised anyone that can't actually fly a plane or understand a bit about Bernoulli or know what a SID or STAR is (Standard Instrument Departure and Standard Terminal Arrival Route). This is normal in aviation. But this has gone beyond the usual fun and games: many flight crew regard things like the locked cockpit doors post 9/11 as a real indication that the CAA and airline management "don't get it".

It has to be said that the airline business is a terrible place to be right now, but it is equally clear that the BA marketing department should be first up against the wall when the revolution comes, despite those hugely expensive ads (or because of them??).

MM

as someone tracking and waiting to buy a few - this is all good stuff. Nonsense mostly but there you go

Durlatcher continues to rate them as a trading short but note caution is creeeping in.

Personally - I much prefer to travel in style and safety and more than happy to entrust myself and my family to their care next week



ains

This seems to be fairly typical of the days early press coverage


TIMES


March 06, 2003

Slump puts BA at risk of ejection from FTSE
By Russell Hotten



BRITISH AIRWAYS suffered a 14 per cent slump in premium first and business class passengers in February, sparking a 5 per cent fall in the share price. The steep share price slide fuelled fears that the airline could again be ejected from the FTSE 100 index next week.

The airline blamed bad weather in the United States and security scares at airports for an overall 5.6 per cent drop in traffic last month. But it was the fall in high-spending premium business that worried investors.

Yesterdays traffic figures were accompanied by another warning from BA that the threats of war in Iraq and of terrorism were having a serious impact on trading. Last week the company said it would be stripping out a further 450 million in costs during the next two years.

BA said its load factor a key measure of the number of seats filled fell by 1.6 per cent to 70 per cent in February year on year.

The shares fell 5p to 96p, which will put the companys place in the FTSE 100 in jeopardy when the index is reconfigured on Tuesday.

KLM, the Dutch airline, underlined the problems facing national carriers yesterday when it gave warning of deeper cuts to summer services and use of more smaller planes.

fairly flat at this time with heeavy volume


BA makes maiden SMS flight

London, March 6 2003, (netimperative)



by Chris Lake

British Airways is launching its first SMS campaign this week in tandem with the weekend's Six Nations Rugby Championships.


The airline operator is an official travel partner for the Rugby World Cup 2003 and is giving fans the chance to win tickets, flights and accommodation for the event to be held in Australia this October. It has picked SMS agency Flytxt to run the campaign.

Promotional staff will distribute leaflets at Six Nations rugby matches throughout March asking fans to send a text message to BA to enter the competition.

Entrants will then receive a message asking them to register on the ba.com website to offically enter the draw. They will also receive a monthly newsletter and email offers, as well as access to BA's online services.

The move follows a one-day trial BA promotion managed by Flytxt prior to Christmas, in support of the airline's 'Escape' gift vouchers.

I wouldn't be at all surprised to see BAY taken over, ainsoph, did you pick up a few at 95p like last time?

I have a few more than yesterday but still only about half a unit ..... looking to add a few more asap. They were quite strong today - kept bouncing back



ains

06 Mar 2003 18:41 GMT

Airline body says new Heathrow charges unacceptable

GENEVA, March 6 (Reuters) - The head of the global airlines body IATA on Thursday denounced planned new charges to carriers at London's Heathrow airport as unacceptable and said they undercut industry recovery at a time of crisis.
The official, Giovanni Bisignani, made his comments in a formal statement on a decision last month by Britain's aviation regulator to approve hikes at Heathrow amounting to 36 percent in landing and takeoff fees over the next five years.

"The proposed increases are excessive and unacceptable to the airlines," he declared.

"Air transport is going through one of the worst crises in its 100-year history and the proposed increases are counter- productive to the efforts the airlines are making towards stabilisation and recovery."

The some 280 members of IATA, the International Air Transport Association, suffered cumulative losses of some $30 billion in 2001 and 2002, according to the body's chief economist Peter Morris.

He told Reuters in Tokyo on February 28 that tentative hopes for a small profit this year were based on a scenario of no war in Iraq. It there were a conflict, he said, "all bets are off."

The Heathrow increases are aimed at covering costs of future infrastructure investment by airport owner BAA Plc BAA.L at the world's busiest hub. They have been fiercely criticised by British airlines.

Bisignani said airports were abusing a "low-risk, monopoly position" to make hefty profits while airlines were struggling. IATA recently crossed swords with Zurich's Unique Airport over charges aimed at covering costs of a new terminal docking area.

Airlines say such cost increases mean they will have to charge passengers more.

But the British regulator, the Civil Aviation Authority, said it did not expect its decision would have much effect on fares because airport charges were only a relatively small percentage of airline costs.

ainsoph:

You said:

"Nonsense mostly but there you go

Durlatcher continues to rate them as a trading short but note caution is creeeping in.

Personally - I much prefer to travel in style and safety and more than happy to entrust myself and my family to their care next week"


Nonsense? maybe, but I speak as I find. I believe that BA have made a number of serious blunders in customer relations recently. I, like you, have been a long term fan. But I was so taken aback by their recent behaviour towards me that I actually bothered to put finger to keyboard and wrote to Eddington. I never do things like that, can't be bothered normally. Where before I found the company respinsive, I got the cold shoulder. OK, maybe it's me. But very bad practice on their part.

Style and safety? Don't worry about safety if you fly with a major carrier. Style? BA took that away some time ago. All my last journeys between London and Silicon Valley (SFO) have been with Virgin Atlantic and I'm a convert. They are still trying hard to please. So many of the BA staff seem to have had the stuffing knocked out of them by the Company.

BA could easily win me back, but I don't think they'll bother to try.

Honestly, I think they may be doomed to decline and takeover.

MM

People have been talking about them being doomed for as long as I can remember .... but they are still here and still the worlds largest airline. I appreciate that they don't hold a monopoly and some will find favour with other airlines ..... this is the way with any free market and we all have our own ideas about value - comfort - safety.

I have said - I like their service and want to fly in a secure ambiance - I currrently hold a half unit in shares and will add a few but that doesn't mean I have to use their product ..... but I do .... based on price - convenience - service - safety and in these troubled times all are important to me .... I will be using them 4 times in the next week or so and will soon moan if they don't live up to the expected standards.



ains

03/07 14:57
British Airways's Eddington Says Ticket Prices May Rise on War
By James Regan


London, March 7 (Bloomberg) -- Rod Eddington, chief executive of British Airways Plc, Europe's biggest airline, said rising oil prices, increased airport landing charges and the threat of higher air passenger duty may force it to raise ticket prices.

The need to preserve cash amid concern a possible war in the Middle East will cause a further decline in air travel means the carrier ``cannot afford to absorb any one of these increases,'' Eddington said in the airline's employee newspaper.

``They will have to be passed on to our passengers, which will negate much of the work we have done in making our fares both competitive and excellent value for money,'' he said.

British Airways said last month that 2003 will be ``tougher'' than 2002 as premium traffic continues to slump and a possible war in Iraq threatens to hurt air travel and raise the cost of fuel. It said last week it plans to cut an extra 450 million pounds ($724 million) of costs by March 2005 on top of 650 million pounds already targeted by March 2004.

British Airways has increased ticket prices as much as 10 pounds after the cost of fuel rose to $373 a metric ton from $249 a metric ton six months ago, the chief executive said.

``Our aviation fuel bill will almost certainly continue to rise unless war is averted with Iraq, the world's sixth biggest exporter of oil,'' Eddington said. Jet fuel accounted for 11 percent of British Airways's operating costs in the first half of fiscal 2003.

The airline will save 63 million pounds in its first-quarter of fiscal 2004, which ends June 30, after it fixed 50 percent of its fuel costs for the period in advance, he said.

Averting War

``We have prepared as best we can,'' Eddington said. ``Everybody in this industry is hoping that a conflict with Iraq can still be averted. The current uncertainty is extremely damaging to our business.''

The U.K. Civil Aviation Authority last month told world No. 1 airport operator BAA Plc it can raise fees per passenger for carriers at its London Heathrow airport to 6.48 pounds a passenger in fiscal 2004, followed by an increase of 6.5 percent above inflation in the four subsequent years. Heathrow is British Airways's base and Europe's busiest airport.

The price increase, which will begin on April 1, may lead to 50 percent higher charges in the next five years, according to Eddington.

In addition, the U.K. government may decide to raise air passenger duty to pay for the ``environmental costs of aviation,'' Eddington said.

``We do not subscribe to that view and prefer to look at other alternatives such as emissions trading,'' he said.

LONDON (SHARECAST) - The quarterly bun fight that is the FTSE 100 rejig occurs on Tuesday next week and the candidates facing the drop will be getting nervous in tough equity markets.

Favourites for relegation are British Airways, insurer Royal & Sun Alliance and engineer Invensys. BA is being clobbered by fears about the Gulf war and how it might hurt trade. Royal Sun has just axed its dividend while Invensys has seen business fall off a cliff.

Teetering on the brink are Rolls Royce and GKN, though Rolls position looks more precarious. GKN did itself no harm with a bumper set of results this week. The directors are also doing their bit with nearly the whole board buying shares on Tuesday and Wednesday. Schroders and Hays may also be nervous.

Poised to replace any that do falter are water and sewerage specialist Kelda, loan provider Provident Financial, telecoms operator Cable & Wireless. Bingo hall owner Rank and property group Hammerson are also in with a shout of reaching the top table.

Another Ainsoph dog heads for the relegation bin in the worlds worst portfolio.

The Ainsoph portfolio is sponsored by the Dick Emery Foundation

Ooh you are awful but I like you

jesus wepped .... you are a sad loser goodfella ..... get a life

I am not aware of losing anything on these - rather the opposite but there you go hopefully.

I intend to buy on any further dips - currently holding half a unit inc the shares bought a day or two ago.


ains



March 08, 2003

Carriers to sell stake in Opodo
By Jon Ashworth



EUROPEs main airlines are set to sell a stake in Opodo, the online travel company, in an effort to compensate for falling bookings.
Amadeus, the travel technology company based in Madrid, is tipped to take a 50 per cent stake in Opodo, providing a cash injection for the sites backers.

Opodo was created two years ago by nine European airlines: British Airways, Lufthansa, Air France, Iberia, KLM, Alitalia, Air France, Finnair and Aer Lingus. The start-up cost has not been disclosed.

The rumoured deal, reported in Travel Weekly magazine, coincides with the opening of ITB Berlin, the worlds biggest travel trade exhibition. Opodo and Amadeus are sharing a stand at the show. The two companies co-operate closely, and share some investors.

Amadeus has several existing joint ventures. Travel agents use Amadeus to access airline itineraries and make bookings. The company also powers more than 100 websites, including those of BA, Qantas, and lastminute.com. It runs BAs departure control and passenger management systems.

Amadeus operates the largest civilian data centre in Europe. It processes 400 million bookings a year.

08 Mar 2003 08:19 GMT

Government set to offer airlines war insurance

LONDON (Reuters) - The government is preparing emergency legislation to provide insurance for airlines flying to the Middle East if their insurers withdraw cover in the event of war with Iraq, the Financial Times has reported.
Insurers cancelled cover for airlines after the September 11 attacks, forcing the government to underwrite emergency insurance to ensure they were not grounded.

But that underwriting agreement expired in October last year and airlines are again using privately provided insurance.

The Financial Times quoted unnamed government sources as saying ministers were preparing the legislation.

"We are aware of the dangers and there's a contingency plan," an official was quoted as telling The Financial Times.

Without government underwriting, many airlines like British Airways, EasyJet and Virgin Atlantic would face soaring premiums or complete withdrawal of insurance if a war with Iraq triggered terror attacks.

Already struggling with slumping demand for business travel and higher fuel prices, airline profits would be further hit if a war started and insurance premiums soared.

March 09, 2003

BA hands southwest routes to airport owner
Dominic OConnell S TIMES



BRITISH AIRWAYS is to transfer part of its regional network to Sutton Harbour Holdings, the quoted property firm that owns Plymouth City airport.
BA is understood to be in talks to sell its fleet of Dash-8 turboprop aircraft to Sutton Harbour, which will start up an airline, expected to be called Air South West. The launch may be as early as this summer.

The new regional carrier will be run by Malcolm Naylor, an industry veteran and a former managing director of Brymon Airways, a BA subsidiary that served the West Country.

Brymon was last year subsumed into BA CitiExpress, the umbrella company for all BAs regional operations in Britain. Naylor joined Sutton Harbour in November as head of aviation strategy.

The transfer is part of a wider shake-up of BA regional operations spearheaded by Rod Eddington, chief executive. In December The Sunday Times revealed that some regional routes were to be axed in a reprise of the future size and shape review that led to the airline shedding 13,000 staff. BA subsequently announced plans to drop 21 regional services.

BA and Sutton Harbour yesterday declined to comment.

Meanwhile, internal management documents seen by The Sunday Times show that Buzz, the low-cost airline that is being sold to Ryanair by KLM, lost almost 3m in January.

The report reveals that the airline had a load factor proportion of seats sold of only 48.3% during the month, 22% below budget. Scheduled operations loss is approximately 220,000 worse than January 02 and a 1m deterioration against budget, it says.

A bulletin sent to Buzz staff on Thursday said KLM intended to close Buzz on April 1 if the sale to Ryanair did not go ahead. We will shortly be writing informally to advise the Department of Trade and Industry of this information, it said.

Ryanair plans to employ 180 of Buzzs 600 staff. All employees received job offers or redundancy notices on Friday and those offered posts have a week to accept. If too few accept, Ryanair has said it will close the company, and operate some of the Buzz routes itself.

I flew BA shuttle to and from Scotland (Glasgow) today. Aircraft fairly full on way up (Airbus A319, 126 seats). Evening flight back (last flight of the day) was 122 aboard. If they can maintain those load factors, that route would be doing just fine profitwise.

MM

There you go ....... they are running a whole series of new marketing promtions and ads ..... but war is gettinfg a little closer...... but once it's over




ains

holding their own today - I am wondering if there will be any serious dip on war starting .....


ains



BRUSSELS (AFX) - The European Commission said it has approved the cooperation agreement between British Airways PLC and SN Brussels Airlines.
The commission said it has approved the partnership for six years.

The alliance could have eliminated competition on the Brussels-Manchester route, but the two companies are taking measures to conserve choice, the Commission said.

The carriers undertook to release enough slots at Brussels airport for a new entrant to operate three daily services to Manchester.

ed/sml/wf

Capital Group have dropped 11.2 million shares but retain 74 million


ains

"Pleased I fly BA" , ainsoph, I thought Why had established that you don't actually fly BA? you can't be surprised that he is irritated if you don't answer his simple question. , you do cut and paste a lot tho' don't you?!

I fly BA quite a lot and have not seen any deterioration in their 'service'. I am not, as you, so pro them tho' and can't really understand what the attraction is? I will fly with any airline that has the right price and right schedule. The only thing that I won't do any more is travel 4 hours to Stansted to fly cheaply, (although Liverpool is very convenient).

Most people these days couldn't give a flying fk what the service is like as long as it is cheap, reliable and gets them there on time.

OBTW excuse my ignorance but what is a quarter unit?

niggle

LOL - Ainsoph uncovered as a liar and a charlatan again!! LOL, your ramping isnt heard by Ashsteads favourite suitor Capital droup who flogged 11.3M today, Im still short, and have been 4 long enough 4 it to somewhat bolster my P ;)
AND AINSOPH, I belive Ive spelt your name correctly No? I suppose your not really worthy of a Capital letter though!?

niggle - I don't do question and answer stuff from 'why' or others in his group and really don't care whether he is irritated or not. How frequently I fly or not is my business but as it happens I will be using them 4 times in the next 9 days .... as for how many times I cut and paste - not sure what your point is .... I read something and it takes me a few seconds to let everyone else read it ...... if it's too much info for you - don't read it. I will not be upset in any way.

I appreciate some peeps buy everything on price - always a market for the LCD or price but personally I do care who I fly with and whilst wanting value for money - I prefer to discriminate on other things like service - convenience and safety.

As far as the shares are concerned - they have to live and stand on the way the market perceives them and how well they do in the sales market ..... which is how it should be. I am making money - so they must be OK

I buy shares and trade in units - I hold anything from 40 to 55 positions and there is need for some sort of system .... I held a quarter unit in BAY and increased to half a unit within a range from a quarter to say 4. I intend to take my holding up to around 2 units


ains





tpaulbeaumont I really don't care whether you are short or not - I am breaking evens on my current trading and it was bought out of profits from the last time I traded. As for my name - it's spelt ainsoph

tpaulbeaumont - 09 Mar'03 - 21:34 - 6 of 14 edit





Ainsoph - 09 Mar'03 - 20:41 - 136 of 137

Ok, I've had enough of shamelessly ramping my stocks, and deluding investors to bouy my gapping losses. I cant think of words that could redeem my actions, I can only say I am Sorry, and that I could of made alot of money if I'd have shorted the stocks I was long. shorters are not evil, quite the contrary. The reason I've been so stuborn and misleading in the past is because I was jealous, I have lost alot of my money and my familys, and it has taken its toll on my mental health, I have been bitter and lied in the past but again I am sorry for verbaly lashing out, please accept my apology anyone who feels its relevant/due. In fact I may short sell TAD, it is a dog after all.

































Carlsberg don't do cut n pastes, but if they did, they'd Probably be the best in the world!
;D



ainsoph - 10 Mar'03 - 08:11 - 10 of 14




I see your research and credibility are up to your usual standard tpaulbeaumont ..... you couldn't even get the spelling of my name right ...... duh


SOMEONES CONFUSED.
THANK YOU.

Ad of the Week: BA lays it on the line
(Filed: 11/03/2003)


Advertiser BA

Agency M&C Saatchi


Background Life must be tough working for a flag carrier like BA. On the one hand there's a constant battering from the likes of easyJet and Ryanair at the bottom end of the market.

On the other, the worldwide slowdown has hit the more lucrative business travel sector hard. And that's before we even get to a war in the Gulf, with who-knows-what effect on travel, business or otherwise.

It's the kind of market in which mere survival is a triumph. So the idea of product innovation seems a bit pointless at the moment. Why bother making things better if no one's going to fly anyway?

BA at least is not a subscriber to this mode of thought. Its latest innovation is the completely flat bed, now available on all business class flights. Bravely perhaps in the current climate, it is out selling the message to its target business flyer market.

What happens It's night in Times Square. A bed sits on the sidewalk. A fully clothed man gets into it. Next we see the bed in Piccadilly Circus. It's dawn. Bright-eyed and bushy-tailed, the man gets out and walks off. The signature music, by Delibes, kicks in.

Comment Advertising always works better when it has a clear product benefit to sell. There's no doubting the message here, which is brutally simple: BA is the only airline with flat beds. Even a half-wit can understand that means you get a better sleep

Guardian Diary - It makes a change to hear British Airways announcing a new route, but the world's second favourite airline (after Lufthansa) is soon to offer departures from London to Tashkent, capital city of Uzbekistan. As a novel alternative to Tuscany or the Dordogne for this summer's holidays, Uzbekistan is hard to beat. Where, in the restaurants of Bergerac or Siena, can you buy decent plov - wok-fried mutton, yellow turnip and rice - to match that of old Tashkent? And at 1,535 soms to the pound, you'll love those crazy Uzbeki prices. BA are surely on to a winner here.

I still don't know what a quarter unit is, how many shares is it?

That's my business ...... I don't ask you what you earn and I don't say what I trade .... It's not the British way ..... everything is relative - a million to me may be the same as a thousand to you or vikiverki




ains

Trader ainsey,

what a track record! Have you thought about setting up a shorting fund ?

F

my track record on BAY is excellant and have lots of profits to build up a stake .... suggest you go and do some research or at least read the thread before further comment

I have an order in for sub 9Op and will take my holding to 0.75 units



ains

ains, stop it, you're making me laugh too much :-))

i'm a quarter shorter as of this morning :-))

Have a look at this post snappy and look at your comments above ..... see what I mean? :-))




ainsoph - 11 Mar'03 - 11:02 - 583 of 583 edit



sooner the better snappy ..... in the meantime it's probably best you don't comment and mislead peeps - either on the maths or the brokers notes.

As for you being ahead of anything - that hasn't come through at all - your posts are banal - misleading and carry no original info or thinking .... to be frank



ains

What was that magic staement u made about BT.A Ains.....

LOL - where have u been recently on BAY Ains?

thanks for the tips on Hong Kong tp, had a great time and will visit again.

Virgin Atlantic fare to HK is cheaper than this former flag flyers fare.

I see the transatlantic carriers are making all tickets flexible even the lowest priced economy ones due to ongoing geopolitical concerns and a lack of bookings no doubt.

*****

Terms and conditions
This offer is available on British Airways long haul bookings made between 14 February and 17 March. The number of passengers and names of passengers must remain the same as the original booking. Any additional passengers must be booked and paid for independently at an applicable fare for the itinerary.

*Passengers will have to pay the additional supplement (including difference in taxes) if the change results in the passenger travelling in a more expensive travel period (i.e. Easter, Summer months or Xmas), a higher booking class or cabin or to a destination where the price at the desired time of travel is more expensive than the original time of travel.

Passengers will be given a refund for the difference (including difference in taxes), if the change results in the passenger travelling in a less expensive travel period (i.e. off peak), a lower booking class or cabin, or to a destination where the price at the desired time of travel is less than the original time of travel.


Passengers must retain their tickets and these will form their 'credit note' for rebooking their journey with British Airways before 31 May 2003. All travel on revised itinerary must be completed by 31 December 2003. Only one change can be made which must be made at least 72 hours before departure date. Administration or cancellation charges may apply to hotels, cars and internal full published fares.

Trader ainsey,

I'm beginning to feel you might be a quarter short of a full unit.

F

now have 3/4 of a unit and looking for a dip to take it higher ..... average cost around 92p now if I exclude the profits banked from last time :-)

ROFLMAO

LOL - irony clearly lost!!! LOL I don't understand why you persist with this new measurement 'unit'. I suppose in your mind, with your units your well ahead on all your trades!!!!
For us simpletons who trade shares/lots even bars we have to use traditional methods of calculating P+L, Ainsoph has his own unique 'units', and hes up nearly a whole one!!! Oh dear-O-dear
"..... average cost around 92p now if I exclude the profits banked from last time :-)"
thats a good one, also excluding your purchases @ 180 then too!?

SNAPPY - I fly to BKK 2morrow, after which I will have earned enough air miles 4 a free trip anywhere in the immediate area, i reckon ill plump for HK. Where did u go in the end?

Now starting to show a marginal gain ..... always good to get it right

Stayed in Causeway bay, which of course is near Wan Chai. Spent 4 days up on top a mountain enjoying the view and enjoying all the smiles from the female population!

ains: don't know about your 'units', but this stock and BT are each down 18% in the month since you started the threads. Do yourself and us a favour, please!:-)

;D
I love being single and in Asia(since when was being single a prob thoguh!), Wan Chai is fun too. I have relatives by Aberdean tunnel and stanley mrkt, spoilt 4 choice, wish they'd give me a job!!!

Ains-What are you talking about, bid 92.5, so u've decided ur long from 92p eh? u'll still lose imo!

Diogenes-LOL, if only u knew....

If you don't know about units - it seems a little silly to comment on them .... don't you think?


What has the start date of the thread got to do with units or whether I am making money

This was the opening post - please feel free to ask the meaning of any words you have difficulty in understanding Diogenes





I am sure most peeps will know this is my favourite airline - I fly them and I buy them.

Currently I hold a quarter unit as a longer term investment which is also useful for shareholder benefits.

I will be looking to substantially add at the right time and not afraid to trade them either intraday or more probably as a swing trade.


ains

still ticking up ..... which is nice in this market

Trader ainsey,

I'm beginning to feel you might be a quarter short of a full unit.

F

LOL what do u mean still ticking up? its down 4%!?
And where have u been recently on BAY AINSOPH

ticking up?

it's 90.5p

it's at a 5 year low. possibly an all time low but can't remember what price they were floated at

In ainsey's little head it's ticking up. So it's ticking up, right.

F

yep tp Asia is fun I prefer to go over as a single man. Will probably have myself an Asian wife when I decide to stop playing around and move over there somewhere. Getting more and more tired of the UK.

Snappy-thats all i hear.
Ains BAY -'UNITS'- ticking up, OOHHHHHHHH, thats what he must of ment

Ains: I don't wish to be unkind. I'm just saying that you do seem to be a bit of a Jonah where shares are concerned. These two (BT.A and BAY) down 18% since you started posting a month ago; Izodia suspended and its cash stolen; and today's disaster, Ashtead (down 68% today, looks like another case of cash going missing). Couldn't you confine yourself, at least, to posting stuff that's relevant to the share price, instead of cutting and pasting every single thing you can find?

As for those 'units', I just hope they're small ones! (I suppose they are now, anyway.)

To be frank Diogenes you seem to be obsessed with talking about me losing .... the whole market is down - or haven't you noticed. If you want to comment on my trading you should note when I buy and sell and at what price.

BAY - I am averaging around 92p - They closed at 91p but this is a longer term play and I am deliberatly accumulating in these troubled times.

IZO were suspended three months ago and if you read the thread you will see the money is soon to be recovered and I should clear around 100%

AHT - I bought at a low some months ago and having closed some at a profit I held on to the others and losing half a unit less profits already taken

I note that despite the fact that I hold over 40 shares and have posted on most of them you avoid all my big winners like FDBK - THO - ENI - MTC - XAN - etc


By all means feel free to comment on my trading but try not to be so sective in the future otherwise peeps will assume you have a hidden agenda. Have a read of the opening post - this will give you a good idea what I intend doing ...... although this can change

As for my postings - I have always posted as I please and suggest you can either stop reading the threads which I originate or filter me. I will not be upset in any way.

Finally as I have traded since the age of 16 and have a grown up family I assume I am probably doing something right - don't you?

I do appreciate your continued interest and wish you well if we don't talk again


ainsoph

;-]]]

Well, ains, I have got a low boredom threshhold, if you like to call that a hidden agenda. :-)

Try trading a few more shares .... I would also get bored if I just played with a few at a time ....



ains

I trade UNITS in SIZE Ains, and how grown up is ur daughter if u invest(throwing away)money for her in ur 'daughters fund' for Uni???? Is she a mature student? Shes gonna get big Ol' debts now anyhow, eh, eh Ainsy Ol boy!?

AINSY,do you still fly Concorde every weekend using your minimum holding for the discount, I know you are raking in profits all round,

good old Keith

hack,splutter, cockroach, hahahaha


MINGY

ainsey,

you have been trading since you were 16, assuming you are now older than 17, why have you not stumbled across the concept of shorting? Why have you not learnt about charting? Stop-losses? Why are you not posting on the "upper-floors" of the BB world?

F

I can see myself adding a few more tomorrow as part of a longer term play. An interesting day with very high volume and volatility as the market crumbled and BA fell out of the top 100 ..... not to worry - they bounced back very quickly last time and I am sure they will do so again


ains




Top Stories UK
03/12 16:07
British Airways Needs `Some' Recovery to Meet 10% Margin Target
By James Regan


London, March 12 (Bloomberg) -- British Airways Plc, Europe's largest airline, needs ``some'' recovery in the air-travel market and a reduction in fuel prices to achieve a 10 percent operating- margin target, Finance Director John Rishton said.

The airline is sticking to cost-cutting goals of 650 million pounds ($1.05 billion) by March 2004 and another 450 million pounds by March 2005 and ``continuing to drive them through in all areas of the business where we see the opportunity,'' he said.

``We are not going to change the 10 percent target,'' Rishton said at the airline's investor day at its offices near London Heathrow Airport. ``We absolutely believe that we have to deliver it. We do need some help from the market to get there.''

British Airways and rivals have cut fares to win customers as a slowing economy, a decline in corporate travel and concern about terrorism and the threat of war in Iraq discourage people from flying. The carrier said March 5 that February passenger traffic fell 5.6 percent from a year earlier, led by a 14.3 percent drop in premium, or first- and business-class, traffic.

``The market will recover by a certain extent,'' said Rishton. ``When and by how much, I don't know, but it will come back to a certain extent.''

The carrier's operating margin, or earnings before interest and taxes as a proportion of sales, was 7.6 percent in the nine months ended Dec. 31. Fiscal nine-month net income was 205 million pounds compared with a net loss of 99 million pounds in the year- earlier period.

Fuel Costs

British Airways' fuel costs will probably be 100 million pounds higher in fiscal 2004 than in fiscal 2003, Rishton said.

The airline spent 636 million pounds on fuel and oil in the nine months ended Dec. 31. Chief Executive Rod Eddington said last week that the price of fuel had risen to $373 a metric ton from $249 a ton six months ago.

Jet fuel accounted for 11 percent of the carrier's operating costs in the fiscal first half. British Airways has said it will save 63 million pounds in the first quarter, which ends June 30, after it fixed 50 percent of fuel costs for the period in advance.

``It is unrealistic to think fuel prices won't come down,'' Rishton said.

The airline will also need to ``absorb'' an increase of about 4 percent in seating capacity in fiscal 2004, he said, without giving details of possible changes in routes.

British Airways has taken 21 aircraft out of service since the Sept. 11 terrorist attacks and scrapped unprofitable routes, and it plans to cut 23 percent of its workforce by March 2004 to cut costs. The airline will limit capital expenditure to 400 million pounds or less, Rishton said.

Shares in British Airways fell as much as 5 pence, or 5.5 percent, to 86p and were down 4.7 percent at 86.75p as of 4:01 p.m. in London.

ainsy, ainsy
don`t rise to them. you are far too good to even be on this bb, you should be back on ADVFN, I have told them that you are quite willing to grovel and , well, schhh! admit the truth, you know the fiddle we had going , you know the illegal ramping we indulged in,


fugitive , back off when ainsy is cutting and pasting mate , or switch of your PC, I `ll be in there

ramp, camp, splat,kill the cockroaches

MEG

Guess it had to happen ..... not involved myself but maybe a few will be upset but it's the end game that counts .....

ains





March 13, 2003

Executive Club has its wings clipped
By Steve Keenan



BRITISH AIRWAYS is effectively to dump two thirds of its Executive Club members in an overhaul of the sprawling frequent-flyer scheme.
The Club has grown to five million members belonging to one of five versions of the scheme wordwide.

Such is its complexity that 26,000 rules relate to membership and redemptions. Business Travel last October revealed that because of the confusion caused, exasperated BA chiefs were spending a year analysing how best to hone the scheme down and reward its top business travellers. Now BA wants to focus on 1.4 million regular flyers and disenfranchise occasional travellers.

Martin George, BAs director of marketing, said: We have basically reached gridlock with Executive Club. Currently, when we want to make changes, we have to do so five times over.

A global Executive Club will now come into being on July 1, merging the five existing schemes into one programme, with a series of changes on how people qualify.

Mr George said: It is important that people who fly with BA feel suitably rewarded. They have to feel they are recognised appropriately. People involved with Executive Club should be ones who fly regularly a frequent-flyer scheme is for frequent flyers, very different from people who travel occasionally.

It will be tougher to qualify for Blue Card status, but Silver and Gold members will receive mileage premiums on eligible flights. In a drive to make BAs domestic and European network profitable and fight off low-cost carriers, fewer BA Miles will also need to be redeemed on many routes. Conversely, some long-haul routes will require more.

The plans have outraged occasional travellers, who accuse BA of elitism and of making it more difficult to gain rewards.

A spokeman for www.flyer-talk.com, a website devoted to issues concerning frequentflyer schemes, said: Not only do these changes make BA totally uncompetitive with other airlines, but dozens of BAs best customers have already announced they will no longer fly BA if these changes stand.

BA already has the most expensive programme in the industry, which only rewards premium passengers. What they have done is intolerable.

The website spokesman claimed that award levels have been raised by as much as 300 per cent, while it is harder to achieve Silver or Gold status. However, on the websites forum, many respondents backed BA. BA should reward the people that pay the money for the product, one said.

Mr George also said that enhancements would reward regular business travellers. For the first time, Club members in the UK will be able to use points for upgrades. It will also be possible to combine BA Miles and cash to buy tickets.

More fare classes will earn rewards, and Club members will also be able to book redemption tickets up to three days before departure, down from 14 days on routes where e-tickets are available.

another one in the back of the net for british airways then

Back in serious profit again .... which is nice and didn't take long .... will be availing myself of their services later today .... lots of press this morning and looking good - Iraq permitting



BA reduces supplier base in cost cutting plan
By Kevin Done, Aerospace Correspondent FT
Published: March 13 2003 16:21 | Last Updated: March 13 2003 16:21


British Airways is reducing its supplier base drastically as part of its plan to cut costs by a further 450m ($725.8m) during the next two years.


The group said that it had cut the number of its UK controlled suppliers from 14,000 a year ago to 5,000 and it was aiming to reduce this to about 2,000 by March 2005.

It is also planning significant cuts in the ranks of its 2,000 local suppliers overseas.

The airline is seeking to cut external expenditure by ten per cent or 300m during the next two years in addition to internally generated cost savings of 150m as it struggles to improve its profitability in a weakening air travel market. It has annual external expenditure of 3bn excluding fuel.

John Rishton, BA chief financial officer, told a meeting of BA investors and financial analysts, that the airline would only be able to achieve its target of ten per cent operating margins through a recovery in the market bringing higher revenues and also through a decline in fuel prices despite all the actions to cut costs.

It has forecast "flat" revenues for the coming financial year to the end of March 2004.

"The market will come back but when and how much, I don't know," said Mr Rishton.

He warned that BA would face significant headwinds from higher costs in the next financial year totalling an estimated 300m to 400m including higher fuel charges estimated at around 100m, higher landing charges and increases in pay, pensions and insurance.

Fuel accounts for some 11 per cent of BA's total costs and jet fuel has risen by about 50 per cent from $249 to $375 a tonne in the past six months. Hedging policies have reduced fuel costs by 63m in the first three months of this year.

Lord Marshall, BA chairman, said that the "current situation is as bad as the [global] aviation industry has ever experienced."

BA has reacted by launching a cost cutting drive aimed at making savings of 450m a year by March 2005 in addition to the current two year programme aimed at taking 650m out of the cost base by March 2004.

Silla Maizey, BA procurement director, said that a "massive shift" was under way in the airline supply base, as it sought to eliminate duplication, reduce assets and inventory and cut prices.

The airline was aiming to concentrate its long-term procurement strategy on building partnerships with around 100 strategic suppliers and close collaboration with a further 500.

Relationships with a further 1,500 suppliers would be much more opportunistic and transaction-based and usually carried out electronically.

"We think we need 2,000 suppliers," she said.

BA has already carried out 16 e-Auctions on a total spend of 18m and achieved a saving of 4.2m, or 23 per cent, for items ranging from courier services to stationery, headsets, blankets, seat leather and menus.

bloomberg

British Airways Plc (BAY LN) rose 6p, or 6.4 percent, to 99.25. Europe's biggest airline intends to reduce its supplier base as part of a plan to save 450 million pounds ($720 million) in the next two years, the Financial Times reported, citing Chief Financial Officer John Rishton.

BAY at the magick ..... need to fly through now



ains

I think this is too high and have shorted it today

Hmmmmmmmmm ....... Durlatcher says short into the rallies .... I am happy holding. Clearly the markets are thinking very very short war or none at all. Blair is said to be flying to Iraq summit over weekend .... hopefully not the same place as me



ains

sorry meant to add " a full unit" short

UBS Warburg retains its buy rating for British Airways in response to reports that the airline plans to cut a further 450 million in costs over the next two years.


According to the Financial Times BA aims to cut its UK suppliers to about 2,000 from 5,000. A year ago it had 14,000 suppliers/

However, UBS has cut the target price (BAY) to 150p from 200p. The shares have gained 6.25p to 99.5p.

The broker has a buy rating and 500p price target for Persimmon (PSN).

2003 Citywire

still ticking up and vieing for top position at plus 9.12% on the day with heavy volume ......

ains


BA to slash suppliers in bid to save 450m

BY JIM STANTON DEPUTY BUSINESS EDITOR Scotsman


BRITISH Airways, which earlier this week was demoted from the FTSE-100 index, is to cut its supplier base to save more money, it said today.

The company deals with about 5000 UK suppliers, but wants to reduce that number to about 2000 to help slash 450 million from costs over the next two years.

Last year the company had 14,000 UK suppliers. The firm is also understood to be looking to significantly cut the number of overseas suppliers.

BA is looking to cut external expenditure by ten per cent, or 300m, during the next two years, as well as 150m from internal resources. Excluding fuel, BAs external supplies spending runs to about 3 billion.

The company, along with the wider aviation industry, has been hammered by the downturn in tourism from the September 11 attacks on the US.

But BA has also suffered from a huge surge in competition from budget airlines, especially on its short-haul European routes.

John Rishton, BAs chief financial officer, said that the airline could only hit its target of ten per cent operating margins through a recovery in the market bringing higher revenues and also through a fall in fuel prices - despite all the actions to cut costs.

BA has forecast "flat" revenues for the coming financial year to the end of March 2004.

Mr Rishton said: "The market will come back but when and how much, I dont know." He added that costs were likely to escalate by around 400m over the next year, as higher fuel and landing charges and increases in pay, pensions and insurance dented the companys income.

About 11 per cent of BAs costs are tied to fuel. The price of jet fuel has risen by about 50 per cent from 155 a tonne to 234 in the past six months.

However, hedging fuel - buying in advance at the then market price - has helped BA save more than 60m.

Chairman Lord Marshall said that the "current situation is as bad as the aviation industry has ever experienced".

As well as the new drive to cut costs by 450m by March 2005, BA is also in the midst of a two-year programme which aims to take 650m out of its costs by March 2004.

Silla Maizey, BA procurement director, said that a "massive shift" was under way in BAs supply base, to stop duplication, reduce assets and inventory and slash prices.

She said BA wanted to concentrate on a long-term procurement strategy which she saw centring on about 100 core suppliers and close ties with about 500 more.

It would work with about another 1500 suppliers, but those would be on a more opportunistic basis. "We think we need 2000 suppliers," Ms Maizey said.

BA has already been involved in buying supplies at 16 e-Auctions, spending a total of 18m. The company said it saved 4.2m, or 23 per cent, for items ranging from courier services to stationery, headsets, blankets, seat leather and menus.

15 Mar 2003

BA boss warns of slump in traffic


LONDON (Reuters) - War in Iraq could shave 10 to 20 percent off British Airways' passenger traffic, the airline's chief executive Rod Eddington has said.
Eddington also warned that American Airlines, the world's biggest carrier and a partner with BA in its Oneworld alliance, was likely to be forced to seek Chapter 11 bankruptcy protection unless it negotiated "substantial" cuts in its employees' pay and conditions, the paper said.

British Airways has slashed 10,000 jobs since August 2001, cut capacity and reduced ticket prices to compete with no-frills carriers but the company said in February it would make a profit this year if there were no war in Iraq.

"It feels like there is a war on already. In a war bookings fall quickly, particularly in the premium cabins, people put off trips and fuel prices go up. We are seeing these things happening now," Eddington told the Financial Times in an interview published on Saturday.

BA is likely to deal with any sharp drop in traffic by grounding planes and accelerating an additional 3,000 job cuts the company has planned over the next 12 months, the paper said.

Last month, premium passenger traffic on BA flights fell by 14.3 percent year-on-year, while overall passenger traffic was down 5.6 percent.

Still, Eddington said the airline was much better prepared now to deal with a war in the Gulf than it was to deal with the aftershocks of the September 11 hijacked airliner attacks on the World Trade Centre and the Pentagon.

The company has built up available liquidity of 2.2 billion pounds -- 1.8 billion pounds in cash and 400 million pounds in committed facilities -- to help cushion a potential sudden sharp fall in revenues, the paper said.

The company will hold capital expenditures at 400 million pounds a year until March 2004 in an effort to save cash, chief financial officer John Rishton told the FT, adding that debt levels were "manageable."

BA cut its capital spending in the current fiscal year to March to 400 million pounds compared with 1.43 billion in the year to March 2001.

Eddington told the FT the "great unknown" in the airlines crisis is how much further the U.S. government will go in subsidising and bailing out U.S. carriers after it piled cash into airlines' coffers following September 11.

Two leading carriers, United Airlines and US Airways, are already in bankruptcy.

U.S. Treasury Secretary John Snow was more optimistic on Friday about the airline industry's ability to cope with an Iraq war, but said U.S. airlines must restructure their costs to deal with long-term stresses.

Eddington said any cost cutting at BA should be handled "sensibly" so as not to hurt its ability to capitalise on the summer season, often the strongest months for airlines.

If there is "a short, sharp war, we could still have a reasonable summer," Eddington told the FT.

Brillant stuff from Rod Eddington. War with Iraq would shave 10-20% of passenger numbers. Rod Eddington and Co must believe they have already been through World War III without the French!! Target price now around 43.5p

The reality is that passenger numbers in the industry whilst dented short term by a war, will continue to soar over the next 5 years and very few of them will be getting on a BA flight.

BA has no future within that timescale, the extinction of the dinosaur story will not arouse much interest second time around. Take a few paracetamol if the whines of management and shareholders get too much. Take comfort in the fact that by definition a terminal decline must have an ending.

Ainsoph, have you ever been on an aeroplane? What do you like most about BA? Why dont you post a photo of urself, we'd all love to put a face to the abuse!!

I`m short on this , and tomorrow will be the big- dipper I reckon

ps not a full unit short though,

Is ainsey still a quarter short of a full unit?

Possibly a unit short of a full quarter, but don`t quote me on that

The threat of war is making the outlook bleak for British Airways.After its investor briefing last week,many believe it will be lucky to break even in the coming financial year.

The struggling carrier is on track to report 130m pretax profits in the year ending this month,despite a 7pc decline in sales.That follows tough action from chief executive Rod Eddington,who has cut 1.1bn or 11pc off costs. But the fall in traffic is undoing his good work,and he is targeting another $450m savings in two years.

Citgroup analyst Andrew Light predicts just 22m net profits for the coming year.This assumes another 1pc fall in sales.
That leaves the airline,ejected from the FTSE 100 index again last week, vulnerable if sales fall further.

Every 1pc decline in revenue would take 50m off pretax profits.

Industry sales fell 5pc during the year of the last Gulf War.This time is worse. Sales of premium tickets are already 20pc below the peak two years ago.These provided nearly half BA`s revenues. September 11 left the industry in turmoil,while budget carriers are grabbing business.

BA has debt of 5.1 Billion and owes another 1.1 Billion in off-balance sheet leases,secured on planes.

Amazing its holding up so well considering, I thougt 80p would have been the level today, soon will be .

Ainsoph,

Hello me old mucker, I'm back and fighting.

Regards,

Wordy

I see a bit of profit taking dropping this 4/5 % pretty soon, as I am short that will be a blessing.

Hello Wordy ..... good to see you back .... and winning I hear :-))


Pleased I didn't listen to the short peeps and now well up on my recent trades (30% maybe) ..... lots of news and broker upgrades over the last few days. I have been sampling their European service over the last few days (spending some of the profits) and the service was excellant - everything running to time with good people looking after us .... and that's what counts.

Today's big news is the aftermath of the German let down and the need to start talking to other interested parties ... at least they made the 6 million.


ains



Merrill Lynch returned from the company's annual investor day and repeated its "buy" recommendation. "BA is totally realistic about the challenging trading outlook and management had a credible plan to address this. It has identified and quantified yet further cost reduction opportunities," Merrill analyst Anthony Bor said.

Schroder Salomon Smith Barney maintained its 'in-line' rating on the UK airline with a 'post-war/no war' target price of 200 pence. The US broker said BA's 'Investor Day' was as expected in terms of content and openness, with the airline's restructuring plan on target, and operating expenses already 1.1 bln stg lower in the current year than they were in the previous one. Schroder Salomon added that its earnings forecasts for BA, which it lowered earlier this week, remain intact. The broker concluded that BA remains its top pick for the next cycle on the basis of its strengthening balance sheet, vigorous restructuring efforts and high revenue exposure to the US and Middle East markets.

However, Schroder Salomon said BA's short term price movements are currently at the mercy of political developments. Elsewhere, UBS Warburg also reiterated its 'buy' rating on BA shares in comment this morning, although it said it has cut back its target price to 150 pence from 200.

By Jonathan Stempel
NEW YORK (Reuters) - Credit rating agency Standard & Poor's has said it may cut its ratings for 11 airlines and 14 aerospace companies because a U.S.-Iraq war looks "imminent".

Nine U.S. airlines, including three of the five largest -- Delta Air Lines Inc., Northwest Airlines Corp. and Continental Airlines Inc. -- as well as European carriers British Airways Plc and Deutsche Lufthansa AG are covered by the airline review. S&P said it may cut British Airways to "junk" status.

"Airlines, particularly large U.S. hub-and-spoke airlines, have already been hurt by high fuel prices, an accelerating erosion in bookings on international routes, and, indirectly, by the depressing effect of uncertainty on business activity," S&P analyst Philip Baggaley said in a statement. A war would cause "further financial damage," he said.

The credit rating agency's review of aerospace companies includes Boeing Co. BA.N , the world's largest commercial aircraft maker, and European Aeronautic Defence and Space Co. EAD.PA EAD.DE , which owns most of Airbus SAS, Boeing's largest rival.

United Airlines Inc., a unit of UAL Corp. UAL.N , warned for the first time on Tuesday that there is a "distinct possibility" that it may go out of business. Some analysts, meanwhile, have said AMR Corp. AMR.N unit America Airlines Inc., the world's largest airline, might soon follow United and US Airways Group Inc. UAWGQ.OB into bankruptcy court.

Transportation Secretary Norman Mineta on Tuesday acknowledged a war might hurt U.S. airlines, and said the government is ready to assist them if necessary.

S&P said it may downgrade AirTran Holdings Inc. AAI.N , Alaska Air Group Inc. ALK.N , America West Holdings Corp. AWA.N , ATA Holdings Corp. ATAH.O , Atlantic Coast Airlines Holdings Inc. ACAI.O , British Airways BAY.L , Continental CAL.N , Delta DAL.N , Deutsche Lufthansa LHAG.DE , Northwest NWAC.O and Southwest Airlines Co. LUV.N .

The aerospace review includes Argo-Tech Corp., Boeing and its Boeing Capital Corp. unit, Britax Group Plc, Dunlop Standard Aerospace Holdings Plc, EADS, Goodrich Corp. GR.N , Hexcel Corp. HXL.N , K&F Industries Inc., Sabreliner Corp., Sequa Corp. SQAa.N , Textron Inc. TXT.N and its Textron Financial Corp. unit, and TransDigm Inc.

S&P analyst Roman Szuper said the operating environment for airline equipment and aftermarket suppliers is "very challenging," especially in the United States, and will likely weaken in the near term if war breaks out.

HUB-AND-SPOKE OPERATORS UNDER PRESSURE

British Airways, Lufthansa and Southwest carry "investment-grade" ratings, while the other carriers are "junk" rated. S&P downgraded 11 U.S. airlines' aircraft-backed debt on Feb. 18 and has said it may downgrade other airlines, including aircraft-backed debt of American, United and U.S. Airways.

"Hub operators are under severe pressure, and their credit statistics and liquidity positions are getting weaker," said Brian Clapp, an analyst at Muzinich & Co. in New York, whose $3.5 billion of junk bonds include Continental, Delta and Northwest debt. "This has been the case pretty much since the summer of 2001, even before 9-11."

Downgrades often boost borrowing or refinancing costs.

S&P rival Moody's Investors Service on Monday said it may downgrade Delta, Northwest and Continental, which rank Nos. 3, 4 and 5 among U.S. carriers.

"Investors should stay away from unsecured airline debt until you see passengers start to come back, or if a UAL liquidation sends passengers elsewhere," said Clapp.

Baggaley said even if the United States and its allies enjoyed a quick victory against Iraq, and no significant terrorist attacks took place, airlines would likely still suffer substantial losses, and fuel prices would be likely to fall more slowly than they did after the 1991 Gulf conflict.

Regional carriers and low-cost carriers such as Southwest, which is profitable, are less likely to suffer from declining passenger traffic, S&P said. Major U.S. carriers lost more than $11 billion in 2002.

moving down nicely now, next stop 1 and then less, watch out for the announcement that the war is `go` if your short, all their `planes will be grounded, and 60p for a short time seems likely

Must admit to taking a few profits and now waiting to buy back .... anyone waiting for 60p will have a long wait in my view ....


ains

I would never of course enter into an argument with ains, he is unbeatable, but if the war turns nasty, we will think 60p was a high.

interestingly, I do always seem to do a lot better than the shorters .... when I bought at just below 90p last week - peeps were talking of silly downsides ... but sold them for a masive gain just a few days later ....



ains

Pulling back earlier mark downs


03/19 08:48
British Airways, Rivals' Stocks Drop on Possible S&P Downgrades
By Lois Jones


Frankfurt, March 19 (Bloomberg) -- Shares in British Airways Plc and its three biggest European rivals plunged after Standard & Poor's placed European and U.S. carriers on review for a possible credit-rating downgrade amid concern a war in Iraq would raise fuel prices and damp demand.

British Airways shares dropped as much as 7.5 pence, or 6.4 percent, to 110p. Air France SA shares fell as much as 38 cents, or 3.7 percent, to 9.83 euros. Deutsche Lufthansa AG shares fell as much as 43 cents, or 4.7 percent, to 8.65 euros. KLM Royal Dutch Airlines NV stock plunged as much as 39 cents, or 6.1 percent, to 6 euros.

S&P said it may downgrade British Airways, Lufthansa and nine U.S. airlines' ratings as an Iraq war would further damage an industry that's already reeling from losses and traffic declines following the Sept. 11 terrorist attacks.

``Airlines, already battered by the effects of the Sept. 11, 2001, attacks and their aftermath, now face further financial damage from a war,'' said Standard & Poor's credit analyst Philip Baggaley in an e-mailed statement.

A war in Iraq may reduce Lufthansa's traffic by as much as 20 percent, Lufthansa Chief Executive Juergen Weber has said. Lufthansa said on Feb. 26 it will ground 46 planes, reduce investment by 200 million euros ($213 million) and freeze hiring. The carrier is raising fares by an average 4.5 percent as the threat of an Iraq war boosts fuel costs.

In addition to British Airways and Lufthansa, S&P placed the following airlines on CreditWatch, indicating possible downgrades: Delta Air Lines Inc., the third-largest U.S. carrier; No. 4 Northwest Airlines Corp.; No. 5 Continental Airlines Inc.; AirTran Holdings Inc.; Alaska Air Group Inc.; America West Holdings Corp.; ATA Holdings Corp.; Atlantic Coast Airlines Holdings Inc., and Southwest Airlines Co.

I shorted at 108p, and am happy to await really big profits, I rarely stop a short for less than 50% profit in these `bad` (for some ) markets.
I realise ains will make a lot more than I as he uses huge sums of money on his investments, I rarely risk more than 50,000 on any one shot, using other shares as colateral, so no cash ever changes hands, exept generally into mine.

You're quite a small player then, quidnunc. From earlier comments I thought you were playing for more than just pin money.

Yes , just a tiddler compared to ains

A three % drop so early in the day is encouraging, the war will start tomorrow mid-day we are informed, so any one long , be careful.

If you shorted at 108p ..... you are down 6% or so and it has been worse .... my trades were cashed at good net profits. Always worth saying that even if they go broke you can only make 100% and that's not likely ..... in real life waiting on 60p is not realistic and I doubt you will .... but anyone who joined me at sub 90p as a for instance could have already banked 35/40% and played them again ... all at less risk than you are taking

Don't let me put you off though - someone needs to short to get the price down and give us the signal to buy



ains

ains, of course I may not make it , its a target, but nothing is impossible when the bullets are flying past the wing tips, grounding BAY for a week would not be good for the price, not ever wishing to doubt you of course, I see the risks long or short at the moment more on the shorters side, depends on the Palace Guards performance really.

Hmmmmmmm ..... now 120p or thereabouts ..... volumes 50% up on average daily volume already .... In a new survey of the top Euro Airlines they came 13th for punctuality out of 23 (budget airlines are not included) with 72% of all flights arriving on time ..... BA blamed the airport and traffic control for the late flights



ains

19 Mar 2003 14:33 GMT



Israeli business sector seeks BA boycott



TEL AVIV (Reuters) - Israel's Manufacturers Association, an influential industry group, has called for a boycott of British Airways in response to the airline's decision to suspend flights to Tel Aviv.
British Airways BAY.L , one of the largest foreign carriers operating out of Israel, said on Tuesday it will suspend flights to and from Tel Aviv starting Wednesday night and until further notice.

The British carrier was the first foreign airline to suspend service to Israel but it is believed others will soon follow in light of growing expectations that a U.S.-led attack on Iraq is immiment.

"It is not acceptable that an airline, whichever it may be, will boycott Israel without any reason, when Israel is not involved in the war in Iraq," Manufacturers Association President Oded Tyrah said in a statement.

Tyrah is also chairman of the forum for coordination among Israeli economic organisation.

On Monday, Britain's Foreign Office advised against all travel to Israel. It said British nationals already in Israel were advised to leave as soon as possible unless their presence is essential. British nationals in the West Bank and Gaza should leave immediately.

The airline said that in light of the travel advisory issued by the Foreign Office, it had decided to suspend service into and out of Israel.

During the 1991 Gulf War when Iraq fired 39 Scud missiles at Israel, all foreign carriers halted flights to Israel. Only national carrier El Al Israel Airlines continued to fly.

"The safety and security of British Airways' operation is always our absolue priority and British Airways would not consider operating any flights until we are satisfied totally that it is safe to do so," Spencer Hanlon, manager of British Airways Israel, said on Thursday.

British Airways, which operates two nonstop flights a day to and from Israel, was the third largest foreign carrier to Israel in 2002. In 2001 it was the leading foreign carrier in Israel.

Well ains , they will certainly find it difficult to arrive on time , or at any time when they are grounded, but I presume on this occasion Sadam will take the blame.

Times

March 20, 2003

BA set to reopen airline sale talks
By Russell Hotten



BRITISH AIRWAYS is expected to reopen talks with Germania about selling the domestic German airline its loss-making subsidiary, Deutsche BA (DBA).
BA has been left with the troubled DBA after easyJet on Tuesday abandoned proposals to buy the airline because of a deterioration in the German aviation market. Germania made a bid for DBA two years ago, but was rejected because BA regarded the undisclosed price as too small.

BA is keen to begin fresh talks with potential buyers amid signs that DBA will make a substantial loss this year. The carrier is also thought to have made preliminary approaches to Germanwings, a division of Lufthansa, and Hapag-Lloyd Express, part of TUI.

Martin Wyatt, chief executive of DBA, said yesterday the airline, which has not made a profit since 1992, would make a big loss this year.

That loss is on the back of the existing strategy, he said.

BA said on Tuesday that it had no plans to close DBA and would continue to develop it as a low-cost airline.

DBA is a largely domestic carrier, but one strategy being considered by BA is to grow the airlines number of international services.

Looks good if there is a consensus

ains



By Daisuke Wakabayashi and Emi Emoto


TOKYO (Reuters) - The International Air Transport Association, a trade body representing 96 percent of the world's airlines flying international routes, has decided to raise regular fares on international flights by three percent due to high fuel costs, industry sources have said.


The IATA's decision comes as the global airline industry braces for a war in Iraq, which could mean a cut in passenger numbers and rising costs for fuel and security.


The fare rise, expected to take effect on April 15, was agreed at a meeting of IATA members in Geneva earlier this week and the group plans to make an official announcement at a later date, the sources said.


It would be the first IATA fare rise decision since March 2001, they added.


No comment was available from the IATA.


Peter Morris, the chief economist of the IATA, told Reuters in February that high oil prices had raised the share of fuel in airlines' costs to 15 percent from 12 percent.


Morris also said that a war in Iraq could mean another year of losses for global airlines, already suffering from cumulative losses of $30 billion in 2001 and 2002.


The September 11 attacks forced airlines to incur almost $7 billion in additional costs for extra security and insurance. To offset some of those costs, the airline industry has laid off about 200,000 workers in the past year.


WAR PREPARATIONS


Bracing for war, airlines have started to reduce costs, lay off staff and cut earnings forecasts.


U.S. carrier Continental Airlines (NYSE: CAL - news) said on Wednesday it planned to cut $500 million in costs, including 1,200 job cuts by the end of the year, adding that a war might lead to more cost-cutting.


"If the anticipated war in Iraq is prolonged, or if other events further degrade revenue or increase costs, we will need to find additional savings or ways to generate more revenue in order to compete effectively," Continental Chief Executive Gordon Bethune said in a statement.


Australia's top carrier, Qantas Airways , said this week it planned to cut the equivalent of 1,000 jobs, or three percent of its workforce, to prepare for soft bookings. That announcement came one month after it axed 1,500 staff.


Asia's largest carrier, Japan Airlines System Corp , said earlier this month it would post an operating loss this year because of a slowdown in international flight reservations due to worries about a war in Iraq.


Jeff Young, head of Japan economic and market analysis at Nikko Salomon Smith Barney, said higher air prices would have a big impact on whether Japanese travellers went abroad.


"Japanese consumers do demonstrate quite a sensitivity to price," he said. "The stereotype is that they do not, but the data show they do and that element of price distinction is increasing the longer Japan's sluggish economy continues and the longer that wages fall."


Japanese airlines, including Japan Airlines System Corp and All Nippon Airways Co Ltd , plan to file for permission for the fare increase from the Transport Ministry.

Thursday, March 20, 2003 Posted: 0708 GMT ( 3:08 PM HKT)



Lufthansa expects passenger numbers to fall by 20 percent in the event of a war in Iraq

MUNICH, Germany (Reuters) -- Deutsche Lufthansa AG said on Wednesday its 2002 operating profits rose strongly, but the result implied a fourth quarter operating loss wider than most analysts had expected.

The airline said operating profit rose to 718 million euros ($762.8 million) last year from 28 million in 2001 when profits were hit by a downturn in passenger traffic resulting from the September 11 attacks, the sluggish economy and a series of pilot strikes.

Sales inched up to 17 billion euros in 2002 from 16.7 billion euros the year before.

Crash landing time , down we go.

holding their own in a very mixed and volatile market


ains




03/20 09:50
British Airways, European Carriers Cut Routes as War Erupts
By James Regan


London, March 20 (Bloomberg) -- British Airways Plc, Europe's biggest airline, Deutsche Lufthansa AG and other carriers cut flights and raised fares to counter an expected slump in air travel because of a war in Iraq.

British Airways suspended flights serving Tel Aviv and Kuwait. Lufthansa, Europe's third-biggest airline, canceled all flights from Frankfurt to the Middle East cities of Amman, Jordan; Beirut, Lebanon; Dammam, Saudi Arabia, and Kuwait as well as services from Frankfurt and Munich to Tel Aviv.

``It's critical now that airlines are actively managing costs,'' said Kenneth Tang, who helps manages about $2 billion at Credit Agricole Asset Management (Singapore) Ltd. ``Most airlines are cutting back frequencies to the Middle East, so the question is whether they can manage the spare capacity at this time.''

International traffic is expected to fall 10 percent because of the Iraqi war, the International Air Transport Association said yesterday. Continental Airlines Inc. plans to eliminate 1,200 jobs as Chief Executive Officer Gordon Bethune said losses in the airline industry may be as high as $13 billion.

U.S. forces attacked Iraq early today, 90 minutes after a deadline that U.S. President George W. Bush gave Iraqi leader Saddam Hussein to leave the country. Iraq fired two medium-range missiles into northern Kuwait, which Agence France-Presse reported weighed 3 metric tons and carried conventional warheads.

Lufthansa said 2003 earnings will decline with a drop in demand for air travel because of the Middle East conflict. ``An end is not yet in sight and it will be prolonged as a result of the Iraq conflict,'' said Chief Executive Officer Juergen Weber at a press conference.

Asian airlines also dropped flights and raised fares. Qantas Airways Ltd., Australia's largest carrier, said it will raise fares on overseas flights by 3 percent, and Japan Air said it's considering doing the same on the recommendation of an industry association. Singapore Airlines Ltd. plans to reduce flights to the Middle East, the U.S. and possibly Europe.

Korean Air Co. suspended two weekly flights to Cairo via Dubai. Qantas on Tuesday said it will force more workers to take vacation which it said was equivalent to cutting 1,000 jobs.

Falling Traffic

Air New Zealand Ltd. today said demand for flights to London, Japanese destinations, Hong Kong and Singapore has fallen by 10 percent. Australia-based Macquarie Airports said passenger-count growth at Sydney and Rome airports has slowed.

``Whenever we have a war or terrorist events, people do defer flying unless it is absolutely urgent,'' said Arthur Lim, head of investment at Macquarie New Zealand Ltd.

Other airlines are reporting declining traffic.

``Our passenger and cargo volume will be affected,'' said Stanley Hui, chief executive officer of Hong Kong Dragon Airlines Ltd.

Rival Cathay Pacific Airways Ltd., Asia's fifth-largest carrier, has also seen bookings fall, said Alan Wong, the airline's general manager of corporate communications.

Airlines are also rerouting flights to avoid Iraqi airspace.

The International Air Transport Association said airlines will fly either north or south of Iraq, said Anthony Concil, a spokesman. There are no plans to fly over Tibet yet.

Singapore Airlines said its flights to London and Frankfurt today will fly through Afghanistan, and then north of Turkey.

Airlines will raise full-fare and other type of tickets, which account for 10 percent of bookings, to ``compensate for substantially increased costs'' said Concil.

SriLankan Airlines, part-owned by Dubai-based Emirates, imposed a $5 surcharge on one-way tickets as of March 12 as fuel prices rose. The jet fuel price in Singapore increased 24 percent in the last year, trading at $32.55 a barrel yesterday.

Falling a little now ,down a tick,and sure to fall a pile when the B52`s I watched just an hour ago, on SKY take off for Iraq.
Lets hope that ains gets back from Belgravia before the ` planes are grounded.

Q

good news ...


20 Mar 2003 12:49 GMT

BA says expects year profit despite war

LONDON, March 20 (Reuters) - British Airways Plc, Europe's biggest airline, said on Thursday it was still on track to post a profit this financial year, despite war in Iraq.
In early February, Chairman Colin Marshall said at its third-quarter results: "In the absence of hostilities in the Middle East, we expect this financial year to be profitable."

The United States unleashed a war on Thursday to topple Iraqi leader Saddam Hussein, just 12 days before the end of BA's financial year to March 31, 2003.

BA told Reuters that Marshall had told a closed investment conference last week: "Despite so many negative factors, we still expect to record a profit for this full financial year."

"The position today remains unchanged," a BA spokeswoman said. Marshall told Reuters in New York earlier this month the full-service carrier was in "good shape" to survive any war.

Down a lot more now , target for the day a quid

NO .... it's down just over 2% with the market

Thursday March 20, 02:58 PM





LONDON (Reuters) - Now war in Iraq threatens the beleaguered airline industry with another tailspin, carriers across the globe are preparing job cuts and selective fare increases to see them through the latest turbulence.


Airlines have lost $30 billion in the last two years and have warned that earnings in 2003 would be hit again as demand for tickets is expected to fall as much as 20 percent.


"Our assessment after September 11 has been proven right: the crisis will not be overcome within one year," Deutsche Lufthansa (Xetra: 823212.DE - news) Chief Executive Juergen Weber told a news conference.


Germany's largest airline said it would look to flexible work hours to trim costs, while other airlines said jobs would go.


Swiss International Air Lines (Zurich: SWIn.S - news) laid off 169 pilots, the first of 700 previously announced job cuts.


Finnair said it, too, would open lay-off talks as the Iraq crisis worsened already grim market conditions.


The moves followed an announcement on Wednesday by U.S. carrier Continental Airlines Inc (NYSE: CAL - news) that it would cut 1,200 job, with the possibility of more if war is prolonged.


"We need $500 million in annual cost savings and revenue generation to permit us to be a survivor during the worst financial crisis in aviation history," Continental Chief Executive Gordon Bethune said in a statement.


PRICE HIKE


The industry is in worse shape than at the time of the last Gulf war in 1991, with margins squeezed further as low-fare carriers grab market share.


To help airlines cope, Geneva-based trade association IATA said more than 100 airlines had agreed to boost some international ticket prices by 2-3 percent.


The increase, the first in two years, will affect only top-class, flexible business fares beginning on April 15, representing around five percent of the world market and will not apply in Europe.


"Increased insurance premiums, security costs, and fuel made it imperative to adjust fares," IATA spokesman William Gaillard said.


As war added urgency to cost-cutting plans, airlines around the world announced flight cancellations, some directly related to the Gulf region, others far afield.


Shares in Europe were mostly firmer by afternoon on hopes the war would be brief and jet fuel costs would ease, though British Defence Secretary Geoff Hoon advised against such optimism.


"I would caution the House against suggestions that this campaign will be over in a very short time," Hoon told parliament in an emergency statement.


Britain also warned its citizens of heightened travel risks, including vacation destinations.


British Airways Plc (LSE: BAY.L - news - msgs) , Europe's largest carrier, was up 0.21 percent at 119 pence as of 1332 GMT.


It said on Thursday it was still on track to post a profit this financial year, despite war.


Lufthansa was up 2.89 percent at 8.90 euros, despite reporting a 2002 operating profit a day earlier that fell short of analysts' forecasts.


AMR Corp (NYSE: AMR - news) , parent of American Airlines Inc, the world's largest carrier, closed up 7.6 percent at $1.84 on the New York Stock Exchange on Wednesday.


Jet fuel prices on Europe's benchmark cargo market were lower in afternoon trade, down $10 a tonne at $305.


Crude oil prices have surged 50 percent in the last four months on concerns over Iraq, though in recent sessions prices have eased.


London's Brent crude was down $0.15 at $26.60.


European and Asian carriers are seen better prepared for the war than their hard-hit peers in the United States, where UAL Corp (NYSE: UAL - news) 's United Airlines and US Airways Group Inc are already in bankruptcy.


Still, the industry's troubles have reached around the world, with Australia's Qantas Airways announcing it would cut three percent of its workforce and Singapore Airlines Ltd set to cut eight percent of its flights.


British Airways, Lufthansa and Japan Airlines System Corp, along with several U.S. peers, have been placed on the CreditWatch list of credit ratings agency Standard & Poor's.

All helps .....


Worlds largest airlines cut flights and jobs
21/03/2003 07:43


By Kathy Fieweger

CHICAGO (Reuters) - Several of the worlds biggest airlines have announced cuts in jobs and flight schedules, beginning what is expected to be a wave of reductions because of a slump in travel made worse by the Iraq war.

Bankrupt United Airlines , the worlds No. 2 air carrier, told employees to expect unpaid leaves and capacity cuts. Air Canada said the war underscored a need to cut 3,600 of 40,000 workers this year.

AMR Corp.s American Airlines, the worlds largest airline, said it would cut international flights by 6 percent in April as an initial step because of the war, trimming some flights to Europe and Latin America.

"Even as we keep working, day in and day out, to keep this company afloat, we will have to trim some capacity as prices and supplies are impacted by the war," AMR Chief Executive Donald Carty told the airlines employees.

AMR is struggling to stay out of bankruptcy protection, a fate that has already claimed two major U.S. airlines -- UAL Corps United Airlines and US Airways Group Inc. .

The U.S.-led war in Iraq could not have come at a worse time for global airlines, which have lost billions of dollars since the Sept. 11, 2001, hijack attacks on the United States.

The war has hit airline bookings, especially international travel, and has left some airports quiet as travelers opt to stay home.

"International has been soft for weeks," said Carol Jouzaitis, a spokeswoman for the online travel site Orbitz. "Since Monday its dropped sharply. The international schedules are all being adjusted."

During the 1991 Gulf War, transatlantic bookings also suffered the most. But the industry is in worse shape now than it was then, with margins squeezed further as low-fare carriers grab market share.

Anticipating customer wariness, airlines recently announced relaxed cancellation policies, giving passengers one free change of plans without being penalized.

Analysts called the move a smart one, given the uncertainty afflicting an industry reeling as never before.

"We would expect demand trends to continue to worsen for the U.S. carriers," said Jamie Baker, an analyst with J.P. Morgan.

Shares of AMR Corp. and UAL Corp. closed weaker on Thursday, and the American Stock Exchanges airline index < .XAL> fell by 0.3 percent.

SIGNALING TROUBLE

USAir, looking to emerge from bankruptcy at the end of March, said on Thursday that crucial talks on a new pension plan for pilots had reached an impasse.

Two days after clearing a milestone in its reorganization plan, John Butler, the companys bankruptcy attorney, delivered a downcast report on operations at the No. 7 airline, now under added pressure from the war.

"On the second day of this war it is not a bright picture for the airline industry, and there are issues we have to confront," the lawyer said. A US Air spokesman said bookings were down 20 percent last week and off 40 percent on Wednesday.

But U.S. airlines with the heaviest exposure to the transatlantic market, such as US Air and No. 3 carrier Delta Air Lines , have not yet announced changes to their flight schedules.

Changes were expected within days because many U.S. corporations are telling employees to stick only to essential travel and to avoid certain Middle East countries altogether.

Industry experts noted that after the Sept. 11 attacks, it took airlines as much as a week to figure out how much demand was slipping and how to deal with it.

CONSERVING CASH, AGAIN

With the war under way, it was far from business as usual, industry sources said, as airlines reviewed various contingency plans in an extremely depressed financial environment in which sources of capital have dried up.

U.S. airlines still hold out hope for government aid. A key Republican lawmaker, Congressman John Mica of Florida, said on Thursday he was reviewing possible aid to U.S. airlines and waiting for a White House signal on whether and when Congress should mitigate the carriers expected losses from the war.

"Ill bet you every airline CEO is calculating daily receipts and advance bookings and seeing how things stand over the next day, over the next week, over the next month," said an airline industry banker. "For the U.S. airlines, to have as much liquidity and cash as possible is the key. Thats how an airline stays afloat."

The top U.S. carriers have lost nearly $20 billion in the last two years and have warned that 2003 earnings would be hit again as demand for tickets is expected to fall as much as 20 percent.

Just hours before the attack on Iraq began late on Wednesday, Continental Airlines, the No. 5 U.S. carrier, announced $500 million in cost cuts and 1,200 layoffs as the unprecedented aviation crisis showed no signs of abating.

ACROSS THE POND

In Europe, the story was much the same.

Deutsche Lufthansa , Germanys largest airline, said it would look to flexible work hours to trim costs. Swiss International Air Lines laid off 169 pilots, the first of 700 previously announced job cuts.

Finnair said it too would open layoff talks as the Iraq crisis worsened already grim market conditions.

To help airlines cope, the Geneva-based International Air Transport Association said more than 100 airlines had agreed to boost some international ticket prices by 2 percent to 3 percent.

Australias Qantas Airways announced a 3 percent staff cut and Singapore Airlines Ltd. said it would cut 8 percent of its flights.


2003 Reuters

Intraday - 120p and outperforming the market - at a two month high ..... which is nice



ains

Starting to wonder what happened to all the shorters on this stock :-)) - now up a third since they last came on here to crow about their shorts .... up nearly 5% intraday @ 122p and in the top ten risers



ains

Still moving up and number two in the ftse100 risers list @ 125p


FRANKFURT (AFX) - Deutsche Lufthansa AG said it is increasing cargo transportation charges by 0.10 eur per kilo from March 25 due to extra costs caused by the war in Iraq, such as higher fuel usage.
The surcharge will remain in place until normal flights resume once the conflict is over, it said.

scs/jsa

By Yvette Essen Telegraph
(Filed: 22/03/2003)


BA soars as nerves settle

Hopes that war with Iraq will be over shortly gave British Airways a further lift, making it one of the leading blue-chip risers yesterday.

It rose 8.5 to 125p after the airline said its crisis team had decided not to suspend any more services. It has already unveiled plans to suspend flights to Kuwait and Israel. The shares have now risen by 39p, or 45pc, over the past seven days of trading.

BA's share price had almost halved since January on investors' concerns about when the conflict would begin.

Analysts said that investors now expect the battle to be swiftly over, which will result in passengers feeling more secure about travelling again. Moody's Investors Services is more cautious, and has placed BA's debt rating on review for possible downgrade.

LOL - you'll be pleased to know that i am offside with BAY now Ains, im not offside enough to be in your special league but wrt to my last trade in BAY, at this point in time, i technically would of made more money going long than short. Im still happy to sit on it, and i have a fair way b4 being stopped out. no amount of cutting and pasting will help BAY, their goose is cooked.

However...

ainsoph - 19 Mar'03 - 09:07 - 177 of 202


interestingly, I do always seem to do a lot better than the shorters ....

interestingly, I remember you buying @ 180p!!
LOL!!!!!!

tpaulbeaumont - you are one weird peeps ...... I don't recall buying BAY @ 180p ........ but as they were last at 180p some 8 months ago or so - it's not surprising. I have probably bought and sold 180 times since then.

Suggest you stay up to date and look to the future. You short peeps seem to trade in a strange way - you recall a possible purchase (you claim) I made many many months ago but you don't recall me buying at sub 90p just a few days ago .... weird - really really weird


ainsoph


BTW - when did I buy @ 180p and more importantly - when did I sell them :-))

ok, well i guess that your initial stake was larger than the size of you recent stakes, afterall there are some serious loses to contend with. So lets say you averaged down at 90p, your still long c135, BEST CASE scenario. WORST CASE(highly likely given your past performance) your long from c250, and scalped a couple hundred shares @ 90p in a futile attempt to make back some losses! Obviously you'll manipulate and deny everything I've said but its probably close, and its probably indicative of your entire trading history!!! is'nt it Ains ;D

good morning...oil price smashed to pieces last week might be a rebound taking out ba gains
will ba be able to continue its massive rise this coming week with all this stil going on?
http://www.polskishop.com/24_03_03.htm

tpaulbeaumont ...... you are talking and thinking crap (do me the curtesy of reading my posts before guessing what I say)

ains



War-hit BA considers going Dutch
By Jason Nissand Clayton Hirst INDY for rest of story
23 March 2003


Rod Eddington, chief executive of British Airways, will this week travel to Amsterdam for talks with his opposite number at KLM, Leo van Wijk, about rekindling merger plans between the two European airlines.

The move comes as BA prepares to axe 3,000 staff a direct result of the war in Iraq. Insiders say that Mr Eddington is due to announce the redundancies in a package of measures to protect the airline from a sudden fall in demand for long-haul flights. The job cuts could come as soon as this week. BA is also understood to be planning to offer some workers temporary unpaid leave and preparing to ground flights.

This looks promising



March 23, 2003

New suitor for Deutsche BA
Dominic OConnell S TIMES



BRITISH AIRWAYS is in talks with Tui, the German holiday company, over a possible sale of Deutsche BA, the British airlines German arm.
Last week Easyjet, the UK low-cost carrier, dropped plans to buy Deutsche BA, citing the tough German market and difficulty with local labour laws.

BA is understood to have resumed talks with Tui, which had expressed an interest in Deutsche BA before Easyjet secured an option to buy the airline. Tui is one of Germanys largest holiday companies, and also owns Thomson Holidays, Britains second-largest tour operator, and Lunn Poly, the high-street travel agent.

It is thought that Tui could merge Deutsche BA with Hapag-Lloyd Express, a no-frills scheduled airline it launched last year. Hapag-Lloyd Express is based in Cologne, and a deal with BA would allow it to expand into Munich. Charles Gurassa, Tuis northern Europe chairman, is a former senior executive at BA.

BA said after Easyjets withdrawal that it had no plans to close Deutsche BA, which has not made a profit since it was founded in 1992. The carrier is expected to press ahead with a restructuring that will include a switch to budget-airline style operations and a rejig of routes, while talks with prospective buyers continue.

massive amounts of comment in the sundays




As war buffets the world's airlines, which ones will still be in it for the long haul?
Conflict could spell the end for at least one big-name carrier
By Clayton Hirst
23 March 2003




'We'll keep BA flying through the crisis' says Eddington
(Filed: 23/03/2003)


In an exclusive interview, the airline's head tells Edward Simpkins how he is countering the effects of the war in Iraq






Interview: Andrew Davidson: More turbulence in the cockpit at BA
The airlines chief, Rod Eddington, has weathered crisis before but now he faces war chaos halfway through a restructuring



MAY you manage in interesting times. Rod Eddington, chief executive of British Airways and a man entitled to feel that he is on a very long, turbulent flight, rolls his grey-blue eyes in agreement.

BA denies merger with KLM amid talks to sell Deutsche

ROB GRIFFIN scotsman


BRITISH Airways yesterday confirmed it was in talks over a possible sale of its German arm, but denied it has rekindled merger plans with rival KLM.

The airline is believed to be discussing the future of Deutsche BA with Germany holiday company Tui, after EasyJet dropped plans for a takeover last week.

A BA spokeswoman confirmed there was interest from other possible suitors but refused to name the companies involved. "We certainly have got other interested parties but any talks would be at an early stage," she said. "We are not prepared to speculate or name names."

But she dismissed as "rumour and speculation" reports that chief executive Rod Eddington was this week meeting his opposite number at KLM, Leo Van Wijk, in a bid to resurrect merger plans last discussed almost three years ago.

In a separate development, Virgin confirmed it is planning to launch a new low-cost airline in the United States - despite the financial crisis gripping the industry.

Sir Richard Branson is holding talks with a potential backers for the $15 million (9.6 million) project, which could launch by the end of next year.

Last night, a Virgin spokesman said: "We are investigating the possibilities as its always been our aim to have a low-cost airline in the United States.

"Many analysts believe at least one airline could go under this year which would create a unique opportunity for us. We have got the experience to go in and operate more efficiently than the others."

The news comes at a difficult time for airlines. Passenger numbers have been so badly hit since the terrorist attacks of 11 September that many major carriers have flown into severe financial crises.

Senior airline executives also fear a further downturn in response to the war in the Gulf, and may start cutting back on routes and staff numbers over the coming weeks.

BA, which is also considering putting staff on unpaid leave, is believed to have re-entered discussions with Tui after EasyJet backed away from a deal, citing the tough German market and local labour laws.

Last week, the airline insisted it had no plans to close Deutsche BA, despite the fact it hasnt made a profit since it was founded in 1992, although finding a buyer would be a welcome relief.

Some analysts also believe a tie-up between BA and KLM could be beneficial to both companies. Talks broke down in 2000 over a number of points, including a recent fall in the value of KLM shares, but both appear keen on consolidation.

KLM is believed to have held talks with Air France last year, while BA has bought a stake in the Spanish carrier Iberia.

But last night, a KLM spokesman moved to quash the speculation. Although he was unable to confirm a meeting between Mr Eddington and Mr van Wijk, he insisted: "I can assure you there are no merger plans at this stage."

03/24 00:12
BASF, British Air May Rise as Oil Dips: European Stocks Outlook
By Balduin Hesse


London, March 24 (Bloomberg) -- European stocks, as measured by the Dow Jones Stoxx 50 Index, have risen 21 percent during the past seven sessions. The price of Brent crude oil has tumbled 28 percent in the same period.

That's no coincidence, some investors said. Lower oil prices ease the burden of energy costs for the region's chemical makers, including BASF AG and Rhodia SA, and airlines, including British Airways Plc. They also may boost corporate earnings by removing a possible drag on consumer spending.

The combination might spur further gains by European stocks in coming days, they said. Crude oil fell for a seventh session on Friday as U.S.-led troops sent to battle in Iraq secured the country's two largest oil fields.

``I am buying shares every time the oil price falls,'' said Guy Monson, who manages the equivalent of $2.7 billion at Sarasin Investments. Oil's decline is ``a major stimulus on the economy and profits, and it will be a driver of business confidence.''

The Stoxx 50 surged 8.5 percent last week, while the Stoxx 600 Index climbed 7.8 percent. Both benchmark had their biggest weekly gains since September 2001, and extended rallies that started March 12 after they fell to six-year lows.

Germany's DAX Index soared 13 percent, the week's biggest gain among 76 global benchmark indexes tracked by Bloomberg. The U.K.'s FTSE 100 Index added 7.2 percent and France's CAC 40 Index climbed 5.5 percent.

20 Percent Gains

Brent crude, a benchmark for two-thirds of the world's oil, peaked near a 2 1/2-year high on March 12 amid concern that the war would disrupt supplies. Since then, Brent has tumbled more than 25 percent.

The Stoxx 600's chemical index surged 14 percent, the week's biggest gain among its 18 industry groups. BASF, Europe's largest chemical company, and Rhodia, France's largest maker of specialty chemicals, both climbed by about 20 percent. Only Bayer AG rose more; its shares jumped 36 percent as a Texas jury cleared the company in a lawsuit over the Baycol anti-cholesterol drug.

Chemical companies use oil as a raw material in the manufacturing of products such as plastics. BASF has closed plants and overhauled production to save money as oil prices climbed more than 50 percent during the past 12 months.

British Airways, Europe's largest airline, rose 18 percent last week. The gain contributed to a 12 percent increase in the Bloomberg Europe Airlines Index, consisting of eight carriers, which reached a two-month high.

Business Confidence

Deutsche Lufthansa AG, Europe's third-largest airline, climbed 13 percent even as it said this year's profit will fall because the war has reduced demand for air travel. Alitalia SpA, which reports earnings on Friday, rose 2 percent.

Fuel accounts for 12 percent to 15 percent of an airline's costs, according to an estimate by Aviation Economics, a London- based consulting firm.

Investors' focus on the war with Iraq may diminish the effect of business confidence surveys from Germany, Italy and France scheduled for next week.

Among executives in Germany, Europe's largest economy, confidence was little changed this month as they waited for a resolution of the conflict, according to economists surveyed by Bloomberg News. The Ifo economic research institute will release its survey on Wednesday.

Italy is scheduled to release business confidence figures on Tuesday. France will publish its indicator of business sentiment on Thursday. Confidence index for both countries will decline, according to the average estimates in Bloomberg News surveys.

`Good for Equities'

Otmar Issing, the chief economist at the European Central Bank, may provide some guidance of the region's economic outlook when he addresses the European Parliament on Monday. Last week, the central bank said it couldn't assess the effects of the conflict in Iraq on the economy.

``The prospects of an economic recovery are improving'' as crude oil prices decline, said Ruben Mikkers, who helps oversee the equivalent of $9.5 billion in European equities at Robeco Groep NV in Rotterdam, the Netherlands. ``It's good for equities in general.''

Munich Re, the world's largest reinsurance company, is among European companies reporting fourth-quarter earnings. The company will probably say Thursday that its loss widened to 1.7 billion euros ($1.8 billion) as it wrote down equity investments, based on the average estimate in a Bloomberg survey of nine analysts.

Shares of Munich Re, catering to insurance companies rather than consumers or businesses, have surged 27 percent since March 12 as stock-market rallies made those investments more valuable. Before then, the stock price fell to its lowest since April 1995.

Swiss Reinsurance Co., a rival, will give investors more details about its full-year results on Thursday. The company on Feb. 26 posted a loss of 100 million Swiss francs ($74 million).

Other companies reporting earnings during the week include Swisscom AG, Switzerland's biggest telephone company; Woolworths Group Plc, a U.K.-based discount retailer, and Metro AG, Europe's third-largest store operator.

Shares in Fiat SpA, Italy's biggest manufacturer, may rise as a result of the company's announcement on Saturday that it had agreed to sell its insurance unit, Toro Assicurazioni SpA, to the investment company Finanziera De Agostini for 2.4 billion euros, investors said. The sale will help pay for management plans to revive Fiat's unprofitable auto business.

Shares in Oxford GlycoSciences Plc, a U.K. biotechnology company that is selling itself, may rise on weekend news that Celltech Group Plc, the U.K.'s biggest biotechnology company, bought 10 percent of Oxford shares on Friday.

nice posts ainsey!

down 4% today ains, how much did you say you last bought at again?

50p target now seems reasonable.

hmmmmmmmmmmmm ........ looking to buy but doubt we will see 50p but who knows - I suggest you keep shorting until they do get to 50p :-))


ains

Flew back on Virgin from San Francisco on Sunday. Super service, their Clubhouse "Upper Class" lounge at San Francisco is absolutely the best I've ever been in. Fabulous service, amazing food in the lounge. Frequent flyer programme knocks the socks off BA's.

Virgin are going to launch a low cost airline in the US -- they've seen the gap opened up by the high-cost competitors who are bust (United/American).

I think the boy Branson may have got it right.

MM

you are wrong MM, ainsoph says BA is the best, he knows what he is talking about and always travels with BA (regularly).

F

Now this could have a very negative affect on long haul air travel.
Singapore quarantines hundreds of people due to the spread of the new respiratory disease SARL.

Lets hope you shorters can do better than last time ..... lots of news in the press this morning and I am waiting to buy (interestingly no one is saying peeps are going to stop travalling on holidays or business but there you go)



ains

BA anger over aid for US airlines
Brett Arends, Daily Mail 25 March 2003

AIRLINE shares led markets down worldwide on Monday as the war took a grimmer turn. Finnair announced 1,200 lay-offs, following other major airlines last week. TUI, Europe's largest travel agency, is targeting deep cost cuts. The war could cost airlines 6bn, the International Civil Aviation Organisation said.





US government plans to rescue its own carriers, with up to 560m in direct assistance plus loan guarantees, drew an angry response from BA. 'It's an absolute nonsense in a fully liberalised marketplace,' said the airline. 'We're not going to go with a begging bowl to our Government, and we don't think any cash should be handed out to failing carriers.'


Attention is turning to Iraq's postwar reconstruction, following Development Secretary Clare Short's Commons statement and the controversy over contracts going to American firms.


Ports group P&O apparently lost the bidding to an unnamed US firm to run the key strategic port at Umm Qasr.


Britain has earmarked 120m for aid. Unlike most other countries, it does not favour domestic firms in these contracts.


Experts believe Iraq may need 60bn of investment. Neil Partrick, of the Economist Intelligence Unit think-tank, warned that Iraq's oil revenues are unlikely to rise substantially above last year's 8bn until 2005. Contractors Balfour Beatty and Amec are considered well placed to win work rebuilding roads, bridges and pipelines. Balfour has operations in the Gulf and Turkey, plus a big US business and a relationship with the American military.



2003 Associated Newspapers Ltd.

Down again, this is the one to short, those who thought this war was going to be short were loonies.Despite what our dear ains says, I still see this dropping each day, until 60p is the bottom.

What exactly did I say for the record quidnunc? - you seem to have a habit of quoting things I do not actually say


ains

I must admit I prefer Virgin Atlantic and Singapore Airlines over BA anyday of the week.

These are certainly troubed times for the airline industry and I think that these scaling back of routes and increases in fares are just the tip of the iceberg.

With all this bad news and no one wanting to fly them .... I am wondering why you guys shorted at 90p and now they are still 114p after 130p ..... something wrong here :-))



ains

Sorry ains if I upset you, but didn`t you post this yesterday?, for the record, I would NEVER mis quote you ains , there is no need.The share has dropped to 113.75p,i.e. a fall of about 10% since your post below.You were asking what had happened to shorters of this stock, ainsoph, we are still here.
****************************************

- 21 Mar'03 - 12:44 - 200 of 224


Starting to wonder what happened to all the shorters on this stock :-)) - now up a third since they last came on here to crow about their shorts .... up nearly 5% intraday @ 122p and in the top ten risers



ains

Sorry I cannot understand just what you are trying to say ollie ..... suggest you have a think and come back with a clear cut post of what you are doing /saying ....

ains, I am saying this,

I have never mis-quoted you, for the record, you are long BAY, I am short, there does that clear the air?
I have asked a couple of the other members of the group to help you out a little in the campaign, you are obviously overworked, 24/7 a day will bring a nervous breakdown .

I am not long - I hold just my basic quarter unit ..... you really must get it right if you intend to keep 'quoting me'


Currently moving with the market



FRANKFURT (AFX) - Deutsche Lufthansa AG said it has reduced its planned intercontinental capacity this summer by seven aircraft.

The cuts are in response to the "sharp fall in passenger bookings, especially for routes to America and Asia," the carrier said.

The focus of the cuts is on Lufthansa's flights to North America, it said.

All its current destinations will continue to be served, it said.

Further measures on short and long haul flights will be decided on at short notice in response to developments in demand, it added.

You are NOT long or SHORT but holding a quarter unit, hhhhmmmmmm!
Oh well ains you obviously know what you are talking about.
More help needed here guys I think, ains did give some signs of cracking up on the TAD thread yesterday, come on Group help him out.

BA cutting more flights as war bites
25 March 2003, This Is Money

RITISH Airways has cut back on transatlantic services and will to make an announcement about further route reductions later this week. The airline cancelled one London to New York service on Monday, Tuesday, Wednesday and Friday of this week.



BA has already suspended, or reduced, some services to the Middle East because of the Iraqi conflict.

'We are reviewing our entire world schedule in the light of what's happening in the Gulf,' said a BA spokesman. 'We expect to make an announcement about routes later this week.'

BA has already suspended flights to Kuwait and Israel and has cut its London-Dubai frequency from two flights a day to one.

Meanwhile, BA said today that eight of its Concorde services would be cancelled in the next few days because of delays in meeting American requirements
to fit high-security cockpit doors.

The affected flights are London to New York on March 31, April 4, April 7 and April 11 and New York to London on April 1, April 6, April 8 and April 13.

from tomorrows Times

The European Commission will today outline possible measures to help airlines during the hostilities, including plans to assist them if insurance companies withdraw airline cover. The Commission will also ease rules covering the use of take-off and landing slots. At present, airlines lose slot rights unless they show they are using them to 80 per cent capacity. Relaxing this rule will make it easier for airlines to cut capacity.

BA welcomed the moves, but expressed concern about the state aid being provided by Washington to US airlines. Yesterday, Bill Frist, the Senate Majority Leader, said that he expected Congress to provide subsidies, sparking a surge in the shares of American Airlines, which is teetering on the edge of bankruptcy.

The high security cockpit doors thing is a complete waste of time and money. It's a crazy fixation. If the loony is on the plane armed with anything whatsoever, you're in trouble. BA is about to ground Concorde for good anyway, sadly.

Meanwhile, one friend of mine who works for a "three-letter agency" in the US is already authorised to carry a gun (a Smith and Wesson .45) on board scheduled passenger aircraft while on duty. Anybody who knows anything about guns, ballistics and aircraft construction knows how crazy that is as well.

Anyone who flies now is subjected to a surreal experience of being treated as a wealthy lunatic -- anything I can do for you sir, a drink, massage, but don't bring anything sharp on board and you can't have metal cutlery in case you run amok.

Complete nuts.

Hmmmmmmmm ....... I know a lot about guns and don't see it as crazy and would rather a trained armed guard than an armed terrorist...... but I fly BA and they have neither :-))

It does look as though Concorde has reached the end of it's shelf life and guess we will not see it replaced - that's sad for everyone but guess it was always on the cards.

I don't find the experience of flying any different today than a while ago excepting a slightly more stringent security check - got frisked myself the other day when I had forgotten about my mobile. Made me feel safe rather than nuts :-))



ains

Currently I hold my quarter unit long term holding and will be looking to reinvest recent profits. It's clear BA management have the situation under control and will cut the cloth accordingly

ains



BA fastens seatbelts for war
By Alistair Osborne, Associate City Editor (Filed: 26/03/2003) telegraph


British Airways will announce today that it is cutting flights, postponing the launch of new services and accelerating job cuts in response to the Iraq war.

The airline, which has spent the past few days monitoring the impact of the war on passenger traffic, plans to cut the number of seats flown by up to 5pc. It has already suspended flights to Kuwait and Tel Aviv.

BA will also say that it is accelerating 13,000 job cuts, though it does not envisage making more staff redundant. As part of its plan to cut 650m of annual costs by next March, it is cutting 10,000 jobs by the end of the month and a further 3,000 over the following year. All the jobs will now go by the autumn.

The brunt of the capacity cuts will come on BA's most profitable transatlantic routes, which contributed 144m operating profits last year when the airline made a 110m operating loss.

BA is expected to cut its six daily flights between Heathrow and New York to five, excluding Concorde services. It has quietly been cancelling some services to New York since the conflict began.

The airline will also delay the introduction of extra services to four North American destinations which were planned to start as part of the summer schedule beginning next Monday.

Plans to add seven weekly flights between Heathrow and Chicago and five between Heathrow and Newark and additional services to Toronto and Houston will be postponed until the impact of the war becomes clearer.

The capacity cuts are lower than those introduced by rival carriers, partly because BA has already reduced seats flown by about a fifth over the past two years. American carriers Delta and Northwest have both cut flying schedules by 12pc in response to the war, with Northwest also cutting 4,900 jobs.

The troubled American Airlines is cutting international flights by 6pc, while United Airlines, which is teetering on the brink after filing for Chapter 11 bankruptcy protection, is reducing schedules by 8pc and putting some staff on temporary unpaid leave.

A spokesman for BA would only say: "We will put out an announcement shortly once we have assessed the early impact of the war."

Chris Avery, aviation analyst at JP Morgan, said BA was "not panicking but being prudent. If you are doing seven or eight flights a day London to New York at the moment, it's pretty excessive". BA shares rose 3.5 to 122p.

Morning ains, well as I said before, the City won`t like the war going on and 4% of the fleet being grounded, so as I am short, that means I think they will fall ains, if your long, like you , you think that your `quarter unit ` will go up,
So they are down nearly 4% today ains ,and I am well chuffed,

DAVE

You shorted at 109p and below - currently 118p ....... you chuff easily

Ah, yes ains, but the war has only started, as Winston said, "THIS IS ONLY THE END OF THE BEGINNING". I`m short in a small way ains, I couldn`t afford a `quarter unit` like you obviously,


DAVE

yes ...... I can tell you are short - the share price is moving up :-))




LONDON (AFX) - John Rishton, British Airways PLC's chief financial officer, said by speeding up the job cutting element of the flag carrier's efficiency programme, BA will manage to reduce costs by an annualized 650 mln stg before the previously set target of March 2004.
BA today announced plans to implement a reduced flying programme and an acceleration of its Future Size and Shape programme in a bid to limit the impact of the war in Iraq on its business.

The airline had already announced plans to cut 13,000 jobs by March 2004 and today said this target will be brought forward to September this year.

Rishton emphasised that bringing forward this target did not imply that the cost savings target will be achieved in September as well, "but clearly with the manpower reduction being pulled ahead we will be achieving it sooner than we expected."

Speaking to reporters in a conference call after the airline detailed plans to reduce flights and speed up its redundancy programme, Rishton said the group has not changed its overall targets.

It is "too early to give forward looking snapshots. Forecasting is very difficult at the moment: The war (in Iraq) is less than a week old," he said.

Rishton did, however, point out that BA hopes the peak summer season will mean a return to "business as usual".

All the measures announced today, he explained, merely represent a "fine-tuning" of previously announced plans.

"What we've done is taken some prudent action such as fine tuning our schedule for April and May and we'll review anything beyond that time as the situation unfolds."

Chief executive Rod Eddington warned that there are "clearly tough times ahead and experience has shown us that conserving cash is critical at these times."

"We are still assessing the impact on passenger demand but the industry has been feeling the effects of war for some weeks now. However, we are in good shape with more than 2 bln stg in cash and committed facilities available and we will survive this conflict," said Eddington in a statement.

Capacity on the North Atlantic will be cut by 6 pct and to the Middle East by 26 pct, resulting in an overall capacity cut of 4 pct.

The airline is also reviewing its capex and external spend plans, but Rishton said BA, which is due to take delivery of three A320 Aibus aircraft in the next financial year, has "the financing in place for all of those aircraft."

The European Aeronautic Defence & Space Co NV owns 80 pct of Airbus and UK defence giant BAE Systems PLC holds 20 pct in the European aircraft maker.

At 9.00 am, shares in BA were down 2-1/4 pence at 1193/4 pence, while the wider FTSE100 index was up 5.6 points at 3767.6 points.

anna.boekstegen@afxnews.com

pleased to see someone agrees with me :-))


``They are taking appropriate action in order to stem losses and conserve cash,'' said BNP Paribas analyst Nick van den Brul, who rates the stock ``neutral.'' ``It shows positive management.''






03/26 11:37
BA Accelerates Job Cuts, Reduces Flights on Iraq War (Update5)
By James Regan


London, March 26 (Bloomberg) -- British Airways Plc, Europe's biggest airline, will accelerate job reductions and cut flights to trim costs as the war in Iraq crimps demand for air travel.

The airline said it will eliminate another 3,000 jobs by this September instead of by next March as previously planned. It will also review capital expenditures and other costs to preserve cash. British Airways shares fell as much as 4.1 percent.

``They are taking appropriate action in order to stem losses and conserve cash,'' said BNP Paribas analyst Nick van den Brul, who rates the stock ``neutral.'' ``It shows positive management.''

The International Air Transport Association has said global airline losses may widen by $10 billion because of the war. Deutsche Lufthansa AG, AMR Corp. American Airline and other carriers also have reduced flights to cut costs.

``There are clearly tough times ahead and experience has shown us that conserving cash is critical at these times,'' said British Airways Chief Executive Rod Eddington in a Regulatory News Service statement. ``We are in good shape with more than 2 billion pounds ($3.1 billion) in cash and committed facilities available and we will survive this conflict.''

British Airways shares fell as much as 5 pence to 117p and were down 2.9 percent to 118.5p at 11:24 a.m. in London.

U.S. airlines, which lost a record $11.3 billion last year, will get government aid to contend with the conflict-related slump, Senate Majority Leader Bill Frist said yesterday.

Government Aid

The European Commission said it may permit carriers such as British Airways and Lufthansa to draw on government-backed war-risk insurance and keep unused takeoff and landing slots.

British Airways has reduced capacity by 20 percent in the last two years and cut its workforce by about 10,000. In the last two weeks, the airline has scaled back flights to the Middle East.

Finance Director John Rishton said on a conference call the carrier expects to achieve cost savings of 650 million pounds earlier than its target date of March 2004.

The carrier today said it will reduce capacity on North Atlantic flights by 6 percent. It will suspend one of its seven daily return services between London Heathrow Airport and New York's John F. Kennedy International Airport until the end of May.

It will also cut one of its two daily return services between Heathrow and Chicago until April 8. It will also delay the introduction of extra services between Heathrow and Newark Airport, Heathrow and Toronto and between London Gatwick Airport and Houston.

The company expects to use Boeing Co. 777 aircraft instead of its larger Boeing 747 planes to serve Bahrain and Philadelphia.

Capacity Cuts

British Airways has cut capacity by 26 percent on routes to the Middle East because of the conflict in Iraq. This includes a reduction in Dubai services and the suspension of Kuwait services. The airline said it will resume a daily service to Tel Aviv on March 28.

The airline declined to say how much sales have fallen because of the war.

The cost of insurance against a default by British Airways has risen 58 percent this year. Using credit-default swaps, contracts designed to transfer the risk of owning bonds and loans, it costs about $950,000 a year to insure $10 million of BA debt for five years, according to Morgan Stanley prices on Bloomberg. The cost is up from $900,000 yesterday and $600,000 on Dec. 31.

Northwest Airlines Corp. and partner KLM Royal Dutch Airlines NV have trimmed some trans-Atlantic flights. AMR Corp.'s American Airlines, the world's largest carrier, is considering a reduction in international flights.

ains,I think we are looking at a different share BAY, that is British Airways is not up but down, down by 3.7% mid., I told you to let the others help out with the project, take a lie down before it`s too late,stress is a nasty illness.

Merrill Lynch reiterated its 'buy' advice on the stock, arguing that, in the context of the current market environment, "the dynamics of the BA investment case may not put the stock on everyone's radar screen for now. Nonetheless we remain of the view that BA will survive the current crisis and ultimately could be a beneficiary of the more consolidated industry, which might emerge." Merrill Lynch analysts are not reviewing their forecasts as yet, since the market situation is insufficiently clear and it will require an indication of the likely duration of the reduced capacity to provide any accurate quantification. "Suffice to say it is indicative of more challenging operating climate and thus the risks to estimates remains on the downside in the near term," they wrote in a note released after BA's announcement this morning.

In a statement released this morning, BA chief executive Rod Eddington commented that "there are clearly tough times ahead and experience has shown us that conserving cash is critical at these times." "We are still assessing the impact on passenger demand but the industry has been feeling the effects of war for some weeks now. However, we are in good shape with more than 2 bln stg in cash and committed facilities available and we will survive this conflict," said Eddington. The airline said it plans to cut capacity by 4% in April and May and said it is accelerating its 13,000 manpower reduction target from March 2004 to Sept 2003, as well as extending the unpaid leave scheme for staff and reviewing all capex and external spend.

This looks interesting - I do hate the waiting around


ains






March 27, 2003

BA's London City debut offers new European option
By Malcolm Ginsberg TIMES



THERE will be an unprecedented choice of flights to Paris, Frankfurt and Glasgow for business travellers in London and the South East when British Airways begins operations from London City airport this weekend.
After spurning the Docklands runway for more than 15 years, BA plans to offer competitive fares rather than the business class rates traditionally associated with the airport.

BAs action means that the three prime European business destinations can now be reached from all five London airports City, Heathrow, Gatwick, Stansted and Luton and all for less than 65 return (see box below).

The bold expansion at London City comes as BA is facing a slump in business traffic. Premium passenger numbers fell 14 per cent in February compared with the same month last year. Yesterday, BA also announced a further 4 per cent reduction in capacity in April and May, primarily on transatlantic routes.

London City has considerable advantages for those working in the City and it will be possible for businessmen, and those living in Central, East and South East London, to board an aircraft within an hour of leaving office or home.

With BA continuing to operate from Heathrow and Gatwick, an executive working in Canary Wharf who lives in Sussex will, for example, be able to depart from City and return to Gatwick for the same price as a London City return flight.

Passing through the Docklands airport is extremely quick, with check-in times as short as ten minutes and only a few yards to walk from the main hall to passport control and the departure lounge.

There is the added advantage of the valet parking service for 20 a day; drop off the car and it is less than two minutes to the check-in desk. The service is also available for incoming flights phone ahead and the car will be waiting.

At Heathrow it takes an average of 45 minutes to get through the formalities, and the journey out to the airport can be lengthy unless you live near Paddington to catch the Heathrow Express rail link. But Heathrow does have the biggest choice of flights to Paris, Frankfurt and Glasgow.

For many, Luton is the least convenient airport but it does offer the cheapest fares on easyJet routes to Paris and Glasgow. The airline also flies to Glasgow from Stansted.

FARES

Return to Paris, Charles de Gaulle (overnight midweek trip, booked three weeks ahead):


From London City:


64 (projected) with British Airways;
192 (current) with Air France

From Heathrow:

64 with British Airways; 62 with Air France

From Gatwick:


64 with British Airways

From Stansted:


60 with Buzz

From Luton

40 with easyjet


PARKING

Rates for 24 hours:


London City: 20 in executive car park, with free valet parking; 16 in main car park

Heathrow: 13.50 in long-term; 36.80 in short-term

Gatwick: 7.40 long-term; 16.70 short-term

Stansted: 10 in mid-stay; 15 in short-term

Luton: 12 in executive car park

* Long-term at Stansted is miles from the airport and at Luton is only available for stays of five days or longer. Advance booking discounts are available. Many hotels near the airports offer parking and accommodation deals.

March 27, 2003

BA cuts flights to save cash
By Russell Hotten



BRITISH AIRWAYS said yesterday that it is to accelerate plans for 3,000 job cuts and reduce capacity on its most important routesby 6 per cent.
The airlines chief executive, Rod Eddington, said BA had hit tough times and that conserving cash was now critical if the company was to survive the current crisis.

BA, which has shed 10,000 jobs since the September 11 terrorist attacks in America plunged the industry into recession, intended to cut another 3,000 by March next year. This is being brought forward to September.

The airline said there will be no compulsory redundancies, and that the losses can be achieved by natural turnover, reductions in overtime and unpaid leave for staff.

An overall cut in capacity of 4 per cent will be made in April and May, involving reduced frequencies and the use of smaller aircraft.

The 6 per cent capacity cuts in high-margin services to North America underlines concerns about the impact of war on customer and business confidence. Changes include suspending one of two daily London-Chicago flights and one of seven daily London-New York services.

BA said it would continue its suspension of flights to Kuwait and would reduce frequencies to Dubai, but that it would restore flights to Tel Aviv on Friday with a single daily service.

About 20 per cent of BAs capacity has already been taken out in the past two years, and these latest cuts are not as deep as other major European and American carriers.

Mr Eddington said: There are clearly tough times ahead and experience has shown us that conserving cash is critical at these times. We have had the opportunity to plan our response on this occasion and go into this downturn a leaner, fitter company.

BA has 1.8 billion in cash and 400 million in committed facilities, a cushion that analysts said put the airline in better financial health than some of its long-haul peers.

Amanda Forsyth, fund manager at Standard Life, which owns 2.4 per cent of the airline, said that by halting investment in new aircraft last year, BA had been able to store up cash.

That BA has been cash-flow positive for many months is stunning, she said. The company has already taken great swaths of capacity out of the network, and this puts BA in a strong position for when confidence returns.

In a research note, Merrill Lynch said that BA shares were a long-term buy, arguing that the airlines prudent cost-cutting meant it would do well after war was over.

BA forecast last week that it was still expecting to report a profit for this financial year. However, BAs debt is currently rated as junk, or below investment grade. The credit rating agencies Moodys and Standard & Poors each said last week that they may downgrade BAs credit rating.

Meanwhile, Air France said yesterday that it would cut capacity by 7 per cent by reducing services, but would maintain at least some flights to all its destinations.

The carrier said: In view of the deteriorating economic situation caused by the Middle East crisis, Air France is no longer certain of meeting its target of a higher operating income than last year.

The airline said its current plans assumed a gradual return to normal market conditions, similar to the trends seen after the first Gulf war and after the September 11 attacks in the United States.

In a few words rather than a million. BA is a short at the moment.

F

pity you are unable to trade then fugitive :-))


By Yvette Essen telegraph
(Filed: 29/03/2003)


War's shock waves hit airlines

Worries about a prolonged war created turbulence for airlines British Airways and Easyjet yesterday. They were among the leading FTSE 250 casualties, shedding 4 to 108.5p and 11.25 to 227.75p respectively.

BA, which has suspended flights to Kuwait and reduced services to Tel Aviv, Dubai and New York, was also rattled by a profits warning from Australia's Quantas, in which it holds an 18pc stake.

JP Morgan said it now expected BA to post a pre-tax loss of 100m for the year to March 2004, down from an estimated 25m profit. BA will post passenger traffic figures for March on Thursday.

Traders also noted that Easyjet is now running a one-week offer in which it will pay for UK government taxes on all flights. They said the promotion is an indication that people need encouragement to fly. Easyjet announces its traffic figures for this month on April 7.

Continued worries about a drawn-out war also rattled the wider market as the benchmark FTSE 100 slipped in early dealings. The leading index ended the day 20.6 lighter at 3708.5 - down 152.6 points, or 4pc on the week. As London closed, the Dow Jones had lost 13 points.

Property group Canary Wharf was the main blue-chip riser, recovering from its recent battering. It improved 5.25 to 151p - picking up from its all-time low.

Investors reacted positively to news that high-street retailer Marks & Spencer, 3 better at 289.25p, is launching a new menswear range in September. The clothing will be aimed at men over 35 years.

Next advanced 20.5 to 855.5p as Deutsche Bank upgraded the clothing store from hold to buy and upped its price target by 50p to 950p after its final results.

Outsourcing group Capita edged up 2.75 to 250.75p as it was given the green light to administer the second-largest pension scheme in the country. The contract with the Department for Education and Skills covers 1.4m members and is worth 62m over seven years.

Financials were once again out of favour. Friends Provident gave up 2.25 to 80.75p, Aviva shed 7.75 to 379.25p and Prudential eased 6.5 to 333p. Lloyds TSB dropped 6.5 to 333.5p and Alliance & Leicester went down 25 to 784p.

Mining stocks were under pressure as ABN Amro downgraded Anglo American, 28 lighter at 917p, and second-tier stock Lonmin, down 26.5 to 685p, from hold to reduce. The broker said it was worried about investing in companies with South African exposure.

Meanwhile, the FTSE 250 slipped 0.8 to 4016.3, down 79.3 or 2pc on the week. SkyePharma was the leading second-tier riser, advancing ahead of the pharmaceutical company's full-year results on Wednesday. Merrill Lynch reiterated its buy rating, saying it expects a modest profit for 2002. It climbed 4.5 to 47.25p.

Selfridges was lifted 8.5 to 242p on traders' gossip that Icelandic retailer Baugur is hoping to raise its 1pc stake in the department store.

Construction services group Carillion fell 9 to 121p on fears Network Rail will cancel further maintenance deals.

Elsewhere, London Forfaiting climbed 5 to 22.75p as the trade finance organisation crept back in the black, posting a pre-tax profit of 1.2m for 2002, up from a loss of 8.6m the previous year. Chairman Jack Wilson warned: "The Forfaiting trading environment in the current year does not differ markedly from that which persisted in 2002."

Civilian Content, the financer and distributor of films such as Michael Winterbottom's In This World, rose 0.50 to 2.37p. Crispin Barker, who moved from non-executive director to non-executive chairman on Thursday, bought 1m shares at 1.9p per share, increasing his holding to 25.4pc.

Devro, the sausage-skin maker, was .5 lighter at 59.5p, despite traders' chatter that Swiss investment vehicle Acomita is considering using its 14pc stake in the group to bid for the rest of the shares. They reckon Acomita is willing to pay up to 75p per share.

On Aim, Osborne & Little picked up from its 1993 low as the fabric and wallpaper company revealed it was in talks with certain directors interested in taking over the group. Bid hopes bumped the shares up 7.5 to 192.5p and more than offset the news that Osborne expects to make a pre-tax loss of about 200,000 for the year ending March 31.

Empire Interactive, the computer games developer and publisher, ticked up 0.62p to 3.62p as traders gossiped chairman Sir Rodney Walker had purchased 1m shares at 3.5p each, taking his stake in the company up to 1.2m shares.

LOL@AINSOPH - what a flake!!!

little "a",

thought it was Quantas that knocked it yesterday? But who cares, tis all the same at the moment. I can trade (rather well).

F

big F and little c

you seem to have more names than shares Fugitive ..... still on the run from your broker?

More names than BA shares - I won't deny it! ;-)))

However, I only have one name on the lower house.

Care to explain why I am on the run from my broker?

F

Not for me to explain your failings .... but clearly anyone who spends so much time slagging peeps as their sole means of researching a company is unlikely to be successful ...... as you already know :-))



Shares are coming back into range as talk of terrorism increases - and war success is delayed

ains





City Airport debuts for BA, Virgin
Robert Lea, Evening Standard 31 March 2003

RITISH Airways and Virgin Express are opening up another front in the bid to win back business travellers by today launching services for the first time from City Airport in Docklands.





BA is starting routes to the business centres of Paris and Frankfurt with plans in May to tap the burgeoning London-Scottish routes by opening up services to Glasgow.


Virgin Express, which has been out of the London market since losing its slots at Heathrow last autumn, is opening services to its Brussels base.


The carriers' decisions bolster City Airport's plans to more than double passenger numbers from the current 1.6m - stalled by the downturn in business travel - to four million by 2010 and to double that again to eight million by 2030.


The airport, though Britain's 10th busiest, is restricted in growth by the size of the aircraft it can handle as the runway is not long enough to take Boeing 737s, the 150-seater workhorse jetliners of the budget airlines.

ainsoph,

you plonker, why do you post this dross? Are you aware of what is happening to American Airlines/the tourist industry in general? Anyone would think from your posts that BA. is a buy. Buy it now you just hand your money to the shorters.

I am looking to buy BA. (if they survive), Lufthansa and TUI for the long term - but there's no hurry. Short in the meantime.

F

Fugitive says short @ two days ago ..... now 115p ...... nice one roflol


Looks like peeps are expecting something good in the figures


ains



BA And Virgin to Make Debuts at City Airport
Evening Standard - London
ROBERT LEA
March 31, 2003



BRITISH Airways and Virgin Express are opening up another front in the bid to win back business travellers by today launching services for the first time from City Airport in Docklands.

BA is starting routes to the business centres of Paris and Frankfurt with plans in May to tap the burgeoning London-Scottish routes by opening up services to Glasgow.

Virgin Express, which has been out of the London market since losing its slots at Heathrow last autumn, is opening services to its Brussels base.

The decisions by both carriers bolster City Airport's plans to more than double passenger numbers from the current 1.6 million - stalled by the downturn in business travel - up to four million by 2010 and to double that again to eight million by 2030.

The airport, though Britain's 10th busiest, is restricted in growth by the size of the aircraft it can handle as the runway-is not long enough to take Boeing 737s, the 150-seater workhorse jetliners of the budget airlines.

However, it is investing pounds 22 million in runway upgrades and airline parking stands to facilitate increased takeoff and landing capabilities for the 100-seater regional aircraft and turboprops that use it.

Moreover, access to the airport, currently limited to taxi and bus services, is set to be transformed when the construction of the Docklands Light Railway extension to the airport is finished in 2005.

Of BA's debut at City, the airport'smanaging director Richard Gooding said: "This is a prime example of how London City can address the current air capacity constraints at other airports by maximising the use of existing capacity here.

"Canary Wharf is home to over 55,000 office workers, estimated to grow to over 100,000 in the next few years.

Business and commerce is moving east, generating an increased demand for convenient air travel."

A spokesman for BA said the move to City supplements rather than replaces existing services from Heathrow.

"There is a very good catchment for business traffic and though we are seeing a downturn in the market as a whole at present we are taking the long-term view as far as our new relationship with City Airport goes," said a spokesman.

Virgin Express is opening up at City after losing its landing slots at Heathrow in October when its code-sharing Belgian partner SN Brussels sold its rights at the hub to British Airways.

The short-haul airline, which has now turned a profit in the past two years since turning itself into a low fares airline, has been out of the Brussels-London market since then. It is launching at City via a new code-share with another Belgian airline, VLM.

CITY AIRPORT will never be London's "fourth" airport - its annual volumes are but a fraction of Heathrow's and running at about 10% of Stansted's - but it is aiming to play a valuable niche role ferrying City business travellers on short-haul hops to major western European destinations. As a result it is likely to be an ever- appreciating asset for its controlling shareholder, the high- rolling Irish investor and gambler Dermot Desmond. He bought City Airport for pounds 23 million eight years ago and could make a substantial gain if he sells. Australian investment group Macquarie has been interested in increasing its exposure to the UK and European airports market but perhaps more likely would be a swoop by TBI, operator of Luton, Belfast and Cardiff airports. TBI is a buyer of assets and Desmond is well known to its board as he holds 5% of TBI's shares.

BA march load figures just out

BA hit by war and killer bug fears bbc news


Worries over the war in Iraq and the spread of the mystery pneumonia virus have hit passenger numbers at British Airways.
The carrier said passenger traffic in March was 11.4% down on the same period last year.

BA's load factor - which shows what proportion of available seats are filled - fell 6.6% to 69.2% compared with a year earlier.

The airline warned that the war and the virus, together with the weak global economy, meant its revenue outlook would remain uncertain.

Asia suffers

The spread of the Severe Acute Respiratory Syndrome (Sars) bug has meant bookings on routes to Asia have suffered.

The virus - which originated in Asia - has infected 2,300 people across 18 countries, and nearly 80 people have died.

Passenger numbers on BA's Asia/Pacific routes were down by a quarter on the same period last year.

"(Sars) has already affected bookings, in particular on Far East routes," BA said.

War impact

Last month BA said it was cutting flights by 4% in response to a drop in bookings caused by the war in Iraq.

"Revenue and forward bookings have been impacted by the threat and outbreak of war with Iraq. The reductions are in line with company expectations," BA said on Thursday.

"There is currently limited forward visibility on revenue and traffic, reflecting the war, economic uncertainty, competitor activity and the impact of Sars."

Passenger numbers to Africa and the Middle East were 15.1% lower than a year ago, in the UK and Europe they were down 3.4%, and traffic heading to the Americas fell 6.9%.

BA also said it had seen a big drop in the number of people travelling in first class and business class seats - so-called premium traffic.

The number of these passengers was 23.8% lower than in March 2002, while non-premium traffic was down by 9.2%.

Just to get BA's dire performance into some context:

DUBLIN (Reuters) - Irish no-frills airline Ryanair Holdings has said it carried 1.416 million passengers in March -- 39 percent up on the same month in 2002.
Ryanair RYA.I also said in a statement its passenger load factor -- an industry measure of how many seats were sold -- was 78 percent in March, down from 79 percent a year earlier.


Air travel is now public transport! If BA ran trains (heaven forbid) they would probably run 1st 2nd and 3rd class carriages with addittional executive class and buisness class seats of course. The novelty of riding on an empty train would not bring in the revenue but BA would still claim to be the best of British!

Not sure how you can compare the two ...... different markets and not in direct competition. There is always room in the market for someone to sell cheap and if that suits you - why not. I still prefer the to pay a little extra for service.

On long haul, for me at least (and it does depend on individual circumstances), Virgin are still winning over BA with me to the West Coast. I really do think that the BA marketing outfit need a grand kick up the backside. Virgin's service outpaces BA's. And I'm a time-served BA flyer of many years.

MM

Must admit I have never flown Virgin but someone found all the virgin trains cancelled earlier this week when they wanted to go to the Tads AGM

I note Capital Group have just added 2 million shares and now hold 76 million or just over 7%.

making some progress with the market this morning



ains

04/04/2003 10:57


ZURICH (Reuters) - British Airways Chief Executive Rod Eddington has said the airline industry is locked in its toughest crisis in living memory.

"There is no doubt about that," the chief executive of Europes largest carrier told Reuters, citing the weak economic outlook, the war in Iraq and the health scare over the deadly SARS virus.

Eddington, who is also chairman of the Association of European Airlines, said a decline in BA traffic in March was not unexpected, particularly at the top end of the market, as many businesses were advising executives to stay at home.

Eddington said BA would continue to monitor its own capacity and adjust it depending on market conditions. He was speaking on the sidelines of a business luncheon hosted by the British-Swiss Chamber of Commerce.

BA stock was up two percent at 1033 GMT, outperforming the FTSE 100 index of blue-chips which was up 0.7 percent.

BA reported on Wednesday a 11.4 percent fall in March passenger traffic from a year earlier, while premium ticket sales declined by almost a quarter, hurt by the war, cutthroat competition from low-cost rivals and the spreading SARS virus.

The war in Iraq forced BA last month to cut capacity by four percent, including the suspension of some flights to the United States, and speed up extensive job cuts.

Global airlines are making deeper cost cuts and stopping flights as the Iraq conflict casts a another shadow over a sector that was already reeling from the September 11 attacks on the United States in 2001 and sluggish economies.

German carrier Lufthansa said on Tuesday it too would stop some flights due to the Iraq war. Italian carrier Alitalia and Dutch airline KLM have also suspended routes to the Middle East.

BA -- which has the largest passenger capacity of any European airline -- said it would bring forward completion of a planned 13,000 job cuts to September this year from its previous March 2004 target.

It said the four percent capacity cut in April and May would involve reduced frequencies and the use of smaller aircraft. Capacity on high-margin transatlantic routes will be cut by six percent.

BA has cut capacity by about a fifth in the past two years. It has also cut capacity by 12 percent on its transatlantic routes, on which it relies heavily for high-margin revenues.


2003 Reuters

Up over double the general market intraday and ahead of US figures


04 Apr 2003 13:16 BST

BA chief says earnings guidance "impossible" now

ZURICH, April 4 (Reuters) - British Airways Plc BAY.L Chief Executive Rod Eddington told Reuters on Friday it was "impossible" to give any earnings guidance now in view of the uncertain environment airlies are facing.
He would not comment on how Europe's largest airline performed in its financial year ended on March 31.

Addressing a business luncheon hosted by the British-Swiss Chamber of Commerce, Eddington earlier on Friday said passenger traffic to Hong Kong had "plummeted" as a result of the potentially deadly SARS outbreak.

The company was building up "reserves to help us through very tough times", he added.

BA's focus was "not on admitting new members to Oneworld", he said when asked about Swiss flag carrier Swiss International Air Lines' SWIn.S chances of joining the alliance.

April 05, 2003

BA chief attacks aid package for US carriers
By Abigail Rayner and Russell Hotten Times



ROD EDDINGTON, chief executive of British Airways, yesterday criticised a decision to allow a $3 billion (1.9 billion) aid package for US airlines.
He said that the aid for already heavily subsidised carriers would be difficult to accept at a time when the airline industry was suffering the worst crisis I have ever seen.

The US Congress has approved the aid to help the troubled airline industry to cope with a drop in bookings and a rise in fuel costs caused by the war against Iraq. The package was agreed despite protests from the White House.

The Administration called the aid excessive and is this week due to meet representatives of Congress to agree the final amount for the airlines.

Mr Eddington said aid may be acceptable to cover higher insurance and security costs but cash grants in North America are much more difficult to accept.

April 06, 2003

Flu forces BA to cut Hong Kong services
Michael Sheridan, Hong Kong and Dominic OConnell Sunday Times for full article



BRITISH AIRWAYS is today cutting its flights from London to Hong Kong in response to the deadly pneumonia virus that is devastating business and tourism in the former British colony. It is expected to cancel one daily flight from Heathrow. The second daily service will continue.
Traffic to Hong Kong had evaporated and the decision largely reflected operational changes to ensure that crew no longer had to stay overnight in the city, a spokesman said.

Andrew Clark
Saturday April 5, 2003
The Guardian

British Airways has "capped" sales of Concorde tickets at 50 out of the aircraft's 100 seats on many transatlantic services, so that it can offer first-class

ADVERTISEMENT

alternatives if the supersonic plane breaks down.
In a new blow to the aircraft's prestige, BA says it has taken half the tickets off the market for certain days because of concerns about the "robustness" of the service.

A spokesman said it explained reports of unusually low loads on recent flights. In some cases, Concorde has flown across the Atlantic with just a few dozen people on board.

BA has taken the emergency step while it only has two Concordes in service - just enough to run its once daily return schedule from Heathrow to New York. Three aircraft are out of action for last-minute work to fit reinforced cockpit doors. Under US regulations, explosive-proof doors must be fitted by April 9. This has proved difficult for Concorde, which needs specially designed equipment. BA revealed last week that it had axed eight flights between March 31 and April 13 while the work is completed.

Concorde has been dogged by recent technical problems. Last month, a supersonic jet with the comedian Bob Monkhouse aboard was grounded in Barbados after two failed take-offs. On several occasions, parts of the plane's rudder have come adrift.

Passengers, who typically pay 6,800 for a return transatlantic flight, are offered first-class seats on BA's jumbo jets when Concorde flights are aborted. However, this could prove difficult as BA recently cut back its schedule for standard flights to New York.

BA is "reviewing" its Concorde services to decide whether to bring forward the supersonic fleet's scheduled retirement in 2009 due to weak demand.

BA changed Concorde's timetable this week, making flights later in the day to attract more business customers. The new schedule allows corporate bosses to do a day's work in London or New York before boarding a flight. However, industry sources say cabin crew are unhappy because Concorde arrives in New York in the early evening, then departs early the next morning - leaving them no time for shopping.

"BA changed Concorde's timetable this week, making flights later in the day to attract more business customers. The new schedule allows corporate bosses to do a day's work in London or New York before boarding a flight. However, industry sources say cabin crew are unhappy because Concorde arrives in New York in the early evening, then departs early the next morning - leaving them no time for shopping."

< <<<<<<<<<<<<>>>>>>>>>>>>>>>>>

Well it took BA some time to realise they should provide services when the punters need them! ;)

Anothe war casualty in waiting, if any bad news arrives, I see a good trade when the price drops back to 108p or so, watch out for any news on civil airliner damage in the wars progression, this is very volatile, and could drop 20% easily if this happens.I don`t short them.

up nearly 7% @ 123p and in the top ten risers on the ftse350 board .....

I recall peeps talking 60p the other day :-))

I think to be fair, they qualified the 60p by saying that it depended on the war going awry, it still may, but they were certainly 100% out on todays price.

No ..... I think they were talking sub 60p regardless of how the war played out ..... must be a few burnt fingers on this one :-))



ains

I dislike shorters, so I don`t really bother if they are burned,the hedge funds are responsible for much of the bear market we suffer today, lets hope more than their fingers ge a burning.

I never knew you could write Ains, let alone an autobiography, although you did leave 'half-assed' off...

Where have you been lately on 'your favourite airline' Ains?! :-))

BA says decision on Concorde fleet imminent
09/04/2003 12:39


LONDON (Reuters) - Europes biggest carrier British Airways says a decision on the fate of its supersonic Concorde fleet is imminent, amid reports the worlds fastest commercial planes could soon be pulled from service.

"We are looking at when the Concorde will be retiring. The process is at an advanced stage, but it is... very much watch this space," said a spokesman for BA.

Both BA and Air France, the only airlines that fly the sleek jet, have said they are considering retiring the dozen Concordes in service. BA charges about 4,500 pounds for a seat on a Concorde flight across the Atlantic.

The demise of the flashy 100-seater would spell the end of an era. The slender needle-nosed jet travels at twice the speed of sound and was hailed as the height of European technological innovation and business acumen when it entered service in 1976.

The Concorde, with its caviar and champagne-laden pre-boarding and in-flight services, was for decades a status symbol for the jet-set crew.

BA and Air France may decide they cannot afford to offer the Concordes luxury services as demand slows.

Air France declined to comment on whether it too was close to pulling the service, although it has said it is reviewing the jets future.

An Air France Concorde crashed outside of Paris in July 2000, killing 113 people. The crash forced the carriers to pull the jets for over a year and spend millions upgrading them.

The planes future became more uncertain as the war in Iraq jacked up fuel prices and as stumbling U.S. and European economies and the war cut demand for expensive business travel.

BA said on April 3 its revenue outlook was clouded because of the war, economic uncertainty, competition and a deadly flu-like virus, which has killed people in Asia and prompted travellers to cancel plane trips.


2003 Reuters

BATTERED AIRLINES




SINGAPORE AIRLINES
Cut: 60 weekly flights or 3.6 per cent of total capacity
Remarks: Destinations include Hongkong, Guangzhou, Hanoi, Taipei


CATHAY PACIFIC
Cut: 108 weekly flights, or 14 per cent of total capacity
Remarks: Includes 17 destinations in Asia, such as Manila, Taipei, Kuala Lumpur, Tokyo


MALAYSIAN AIRLINES
Cut: Two weekly flights to Hongkong in April and four flights, including two daily services, to Singapore from April 7 until end-May


GARUDA INDONESIA
Cut: Four-times-a-week service between Singapore and Medan. To suspend flights to Hongkong, Shanghai, Guangzhou
Remarks: Jakarta-Singapore route maintained


JAPAN AIRLINES
Cut: International flights by 8 per cent in April
Remarks: Include flights from Fukuoka to Hongkong, Osaka to Guangzhou, Tokyo and Osaka to Honolulu. Also, fewer flights from Tokyo to London and Guam


QANTAS
Cut: Up to 20 per cent of international flights, until mid-July


BRITISH AIRWAYS
Cut: 4 per cent of services through May, including 6 per cent cut on North Atlantic routes serving US and Canada. Flights to Kuwait suspended
Remarks: Daily flights to Hongkong down from two to one. Bangkok stop added for Hongkong flights, for staff layovers there instead of Hongkong


LUFTHANSA
Cut: Flights in Europe and to US, Japan, Middle East, Asia



KLM
Cut: 20 per cent of capacity on routes to Middle East and US and 5 per cent of European capacity
Remarks: Reviewing which Asian routes to cut


AIR FRANCE
Cut: All flights by 7 per cent because of Iraq war and Sars


AIR MAURITIUS
Cut: Twice-weekly service to Singapore and Malaysia from April 10
Remarks: Flights to Hongkong suspended, until May 31


NORTHWEST AIRLINES
Cut: 12 per cent of flights and 11 per cent of its workforce, or 4,900 jobs, because of lower demand


UNITED AIRLINES
Cut: Worldwide schedule by around 8 per cent

Remarks: Some workers put on temporary unpaid leave to cut costs


CONTINENTAL
Cut: Five weekly flights between Hongkong and New Jersey, April 12-June 2
Remarks: Sars brought 'dramatic reduction' in traffic


AMERICAN AIRLINES
Cut: International flights by 13 per cent and US capacity by 2 per cent in May

A FIRST-QUARTER profit warning from Germanys Lufthansa pulled British Airways lower in a weak session for European airlines.
The Frankfurt-listed carrier said late on Tuesday that it faced an unexpectedly deep operating loss for the first quarter because of a fall in passenger traffic and said it would introduce short-time working for cabin crew and staff. The airline blamed the war in Iraq and the spread of severe acute respiratory syndrome (Sars) for a poor performance during March.

Its European rivals retreated across the board, with British Airways, down 5p at 115p, echoing falls for Iberia and KLM. EasyJet shed 6p at 220p as Credit Suisse First Boston cut its price target from 400p to 297p and lowered its revenue forecasts after disappointing March data. The FTSE 250 closed 11.5 points behind at 4,123.5.

BA has confirmed they will retire the Concorde fleet in October - in meantime it continues to operate a reduced service - there will be a 84 million write-off for year just ended .....

sad but had to happen and a good business decision imho



ains

10 April 2003, Daily Mail

HE US has approved a route sharing deal between American Airlines and British Airways, bringing an open skies agreement with the UK closer.

115p to buy?, i`ll still wait for 108p and then pile in.


Shagger

Lets hope we get one or two good trades in and take advantage :-))

Shares have moved up on the day @ 117.5p

ains



British Airways says it is determined that Concorde goes out in style.

BA has announced special Concorde ticket deals.

The airline's chief executive Rod Eddington says the aircraft could be flown from airports other than Heathrow during its last days in service, so as many people as possible could see the plane.

"We must retire Concorde gracefully. We want the aircraft to go out on a high," said Mr Eddington.

From now, and for travel until the end of August, BA is offering a London to New York one-way ticket on Concorde and a subsonic return in economy class for 1,999.

One-way on Concorde and a subsonic return in business class (Club World) will be 2,999, while one-way on Concorde and a subsonic return in first class will be 3,499.

BA is also offering a Concorde flight and a Concorde return for 3,999.

Available until April 17, these offers are subject to travellers staying on a Saturday night, while tickets cannot be changed or refunded. One thousand seats are available.


Story filed: 09:59 Thursday 10th April 2003

Ahhhh, what a shame Ains, no doubt your 'prefered bird' Concorde has had its wings clipped! I bet you travel on economy on concorde too right Ains LOL!

love the new BA tv ads ..... just right .... shares out performed the market today and note booking for the last concorde flights going really really well



ains

FYI


BA and BAA should make Wi-Fi pay
12:51 Friday 11th April 2003
Tony Hallett, Silicon.com


The problems faced by the airline industry could be eased a little by increasing the amount of revenue generated by selling wireless access services
The week in which British Airways announced it's finally retiring the loss-making fleet of Concorde aircraft, airports and beleaguered airlines are looking at additional ways to make money -- and Wi-Fi access provision for travellers is a small but fast growing area for them.

BAA, one of the world's largest owners of airports around the world, has now announced a Wi-Fi hot spot at Heathrow Terminal 1 in London, an offering put together with the help of BT Openzone and Intel, which is currently pushing its Centrino bundle of wireless technology used inside laptops.



Customers eating at T1 departure lounge restaurants such as Est Est Est will see co-branded Wi-Fi signs featuring logos for the Wi-Fi Alliance, BT Openzone and Intel Centrino. Accounts can even be opened at a nearby 'duty free' branch of Dixons.

Intel believes it is adding a quality stamp in such cases -- in line with its attempts to validate hundreds of hot spots across the UK for use with Centrino. Some observers believe that the chips giant is trying to make its brand synonymous with Wi-Fi.

Rick Skett, UK managing director of Intel, told silicon.com: "Some [hot spots] frankly haven't been up to scratch, so we offer to work with them, to give them guidance."

But while hot spot operators such as BT Openzone and Megabeam, recently bought by Swisscom, are trying to reach as many high-value locations as possible, there has been some concern that location owners are dragging their feet.

While BAA now offers Wi-Fi access at several of its terminals, many business travellers point to lack of blanket coverage. BT Openzone or Megabeam will talk about the number of airports they are in -- well into double figures now -- but bristle when asked about the obvious locations they are not operating.

A spokesman for BAA said: "BAA has decided it will use different providers in different places because of the different travellers coming through." The thinking is that where the majority of travellers might be Britons going on holiday one brand will work best, while another might be better suited to a more international, business-oriented setting.

But as airport owners look to wireless networks as a new revenue stream or reason to make travellers use their terminals, airlines are continuing to take Wi-Fi to the sky. A new report from Frost & Sullivan (F&S) shows wireless will increasingly become part of in-flight entertainment (IFE) offerings.

The analyst house says equipment providers will first have to get their wares included in Airbus' and Boeing's parts catalogues but thereafter there are advantages in airlines using wireless equipment for data communications and distributing films and other entertainment in-flight, mainly because the technology means less weight and so less fuel is used.

However, F&S principal analyst Jerry Weltsch warns: "If economies of scale are not achieved, as happened with in-flight voice communications, in-flight data communications will have limited long-term potential."



--------------------------------------------------------------------------------

Lots of coverage today and all week on the mothballing of the Concorde .... it's all good PR and the value may well offset the costs incurred :-))


this is not un typical


Nostalgia Abounds as the Concorde's End Is Set
By ALAN COWELL NY Times


ONDON, April 10 After 27 years of supersonic travel lofting rock stars, executives and the rest of the Champagne set across the Atlantic, British Airways and Air France said today that they would retire their fleets of Concordes this year.

The announcement brings the end of an era when the delta-winged jet stood for the ascendancy of technology and economic hope. Today, hard-nosed executives vied for the lyrical edge in mourning its demise.

"Concorde changed the way people traveled," said Rod Eddington, British Airways' chief executive. "With its going, we must lose some of the romance from aviation."

Advertisement






Air France's chairman, Jean-Cyril Spinetta, said: "Never has such a beautiful object been designed and built by man. This aircraft is not going to stop, because it continues to live on in the human imagination."

Richard Branson, chairman of Virgin Atlantic Airways, who has a history of tweaking British Airways, raised the possibility today that Virgin would take over its rival's castoffs. Since the announcement, "we have been flooded with calls from the public, including B.A. staff, asking us to see if we can keep Concorde flying," he said. "This might come to nothing, but I believe that every effort should be made to keep Concorde flying, as it is such an important symbol of British innovation."

If that unlikely effort fails, though, the Concorde is dead.

The airlines ascribed their decision to falling passenger demand and steadily increasing costs of maintaining the fleet. But in recent years, Concorde's status has been battered, first by safety fears after a crash outside Paris in 2000 that killed 113 people and then by the broader slowdown in air travel since the Sept. 11 attacks.

Successive years of war in Afghanistan and Iraq, moreover, have further dented the mood of business confidence that once made Concorde an emblem of worldly success.

Airlines across Europe and the United States have been reporting steady declines in passenger numbers, especially on long-haul flights to and from America. In recent months, Air France's Concordes have regularly flown with 80 of the 100 seats empty, the airline said.

Sara John, a spokeswoman for British Airways, said the withdrawal of Concorde would be "permanent as of October this year" but did not say when the last flight would take off. British Airways said it would sell 1,000 discounted tickets costing up to $6,200 for round-trip Concorde flights until the end of August less than half of the top price of $13,500 that a round-trip ticket normally costs. Air France set May 31 as the date for its last scheduled Concorde flight.

With global economies slowing and stock markets falling, Concorde has come to stand as an emblem of high-rolling luxury at a time when many people are experiencing layoffs and declining fortunes. That, too, has inhibited the high-rolling business set.

"If you're laying people off and telling people in your business to tighten your belt, senior executives then find it inconsistent to go to the airport and get on Concorde rather than subsonic aircraft," Mr. Eddington of British Airways said.

But many who flew on it were nostalgic, recalling its particular blend of spartan seating, delicate canap, noisy take-offs and ineffable speed.

"It was the best travel experience anyone could ever have," said Tyler Br founder of Wallpaper, a style magazine. "It gave you the ultimate luxury, which is time."

"It's not the most comfortable flight," he said, "but it was the most incredible feeling. You felt as though you were hurtling through the air in a missile."

British Airways and Air France insisted that the retirement of the planes was not related to the crash on July 25, 2000, when an Air France Concorde burst into flames on take-off and crashed close to Charles de Gaulle Airport in Paris. After the disaster, the plane was grounded in Britain and France while safety modifications were made. Supersonic flights were reintroduced in November 2001.

"We have complete safety at Concorde, complete confidence in its ability to fly safely," Mr. Eddington said. "This is the end of a fantastic era in world aviation, but bringing forward Concorde's retirement is a prudent business decision at a time when we are having to make difficult decisions right across the airline."

Air France said: "This decision is motivated by deteriorating economic results observed over the past months and which accelerated since the beginning of the year."

Concorde has been flying in commercial service since January 1976. Its first test flight took place in 1969.

How long before the a takeover of BA? A matter of time and my guess is sooner rather than later. I for one would love to get my hands on this business. The blundering antics of public school boy management are now so well documented that even their own peers must be cringing.

We need some ability and vision at the helm. I think the stock can only head south. Once you remove SARS and IRAQ the excuses will be much harder to find.

P.S. The squelching works wonders!!

I see that BA has ruled out selling its 300m stake in Australian airline Qantas as chief executive Rod Eddington is believed to view it as a core asset.

tpaulbeaumont - 11 Apr'03 - 09:31 - 108 of 108 edit






ainsoph - 09 Apr'03 - 21:24 - 107 of 107




ainsoph - 13 Mar'03 - 15:18 - 34 of 106 edit


Ok, I admit it I'm a lying tit who has been allowed a PC in my cell so I thought I'd try a nd lose you 'freebies' some of your hard earned dough, cos I'm a shit

Ainsoph, have you ever even been out of Dorset?

LOL

Guys,

can we all move away from the personal stuff please?

Ian

Dorset`s very nice, only a county away from me.

I thought you were Worcestershire shag?

ex- Worcester but only by marriage at the time

snap,
I hope you are not being too personal!

lol

trying not to be shag
roflmao

:-)

lol

Anyone who bought around 90p is doing nicely :-)) - currently 120p up 2.5% intraday




Airlines seek aid in killer flu battle
Jake Lloyd-Smith, Evening Standard
15 April 2003

SIA'S airlines have joined forces to plead for government assistance to help them to survive the impact of the killer flu Sars and war in Iraq. The companies urged State-owned airports to cut fees across the board as they struggled to cope with a collapse in passenger demand.




The airlines also pressed for a rethink on the industry levies used to raise funds for security screening, and said planemakers should 'take a realistic look at prices'.


The 17-member Association of Asia-Pacific Airlines, which includes Australia's Qantas, Singapore Airlines, and Hong Kong's Cathay Pacific Airways, said: ' Airports and air-traffic management services must reduce charges, rents and other burdens which they impose on airlines regardless of the fluctuations in the market.'


Meanwhile, the use of private business jets has soared, according to leading aircraft timeshare operator NetJets. The company, which is owned by investment guru Warren Buffett's company Berkshire Hathaway, said use of its fleet of executive aircraft had increased by 27% over the past two weeks because of the war and the Asian flu.



2003 Associated Newspapers Ltd.

Guess who bought at 90p :-----------------------------------------------))

Guess who sold at 91p :------------------------------------------------))

guess who shorted at 90p and talked of sub 60p ..... roflol


must start spending some of my profits soon

LOL - well i didnt Ains, still think they're in dire straits but i certainly didnt short @90p. I only trade overnight at most and i usually scalp within minutes preferably so the long term trend is meaningless, altghough if a position is looking equally as strong in said direction when I would usually close, I'll leave it klonger, you know Ains, run the winners and all that, actually must of been a while since you had the chance right!!!

As for spending some of your profits....Why dont you fly on your fav airline, may i suggest Syria, Jakarta, Bukino Faso is nice this time of year i hear, as is Johannesburg, the locals are delightful and a stright up guy like yourself would be welcomed with open arms, oh whoops, i actually thought i was talking to a human being, complete with feelings and values/morals, not AINSOPH, the undisputed, WORST equity trader known to date..-In a movie trailer voice-over

'He suffered greater losses than BCCI, lied more than Enron officals and lost more of the general publics money than the South Sea Co. Bubble.... It's Ainsoph'!!!

'Welcome to a thread where nightmares are reality'!

"BT will never go sub $8"....LOL!

You are a clown and I thought the moderator had asked you to moderate your language

No prblem with 'french'/colourful language Ains or was it the reminder of losses that made you grimace!?

just creeping in to the top ten '250' riser board at plus 4% or so ..... 122p ;-))

LONDON (AFX) - British Airways PLC has launched an Easter seat sale to stimulate demand in the difficult current market, offering over 1.5 mln long haul tickets at discounts of up to 60 pct on return flights.
The Easter sale covers 58 long haul destinations.

It starts tomorrow with a multi media advertising campaign and runs until May 15 for travel during different time periods between April 20 and Dec 10 2003.

BA is offering a 199 stg return to New York, saving 202 stg on the usual fare, fares to Barbados and Antigua from 399 stg (saving 161 stg) and the Seychelles from 439 stg (saving 554 stg).

"There has been a downturn in bookings as a result of world events but we believe that the mood of the British public is now changing and there is a growing desire to travel once again," said Tiffany Hall, BA's head of sales and marketing.

"By offering over 1.5 mln long haul flights at fantastic prices we are giving people a great reason to book now."

Last week BA reported an 11.4 pct slump in March passenger traffic, reflecting sluggish demand in the build-up to and since the military conflict in Iraq started on March 19

At 10.00 am shares in BA were up 3 pence at 127.

james.davey@afxnews.com

Will BAY be able to push through its 130p resistance? If it does next stop is 167p, otherwise its back down to 110p.

Difficult one ..... needs some big new news - maybe US will help this PM



Published in Airline Industry Information on Wednesday, 16 April 2003 at 11:18 GDT
Copyright (C)2003 , M2 Communications Ltd.

The offices of British Airways in Athens, Greece were occupied by anti-war protesters today (16 April).

According to police about 100 members of the Greek communist party took over the second-floor offices and the roof to protest against Britain's role in the Iraq war.

They said that they planned to stay until they joined an anti-war rally later in the day, Reuters reported.

BA slashes prices on 1.5 million long-haul tickets

British Airways has slashed prices on 1.5 million tickets to help stimulate the depressed long-haul travel market.

On sale from tomorrow, the cut-price tickets offer savings of up to 60% on return flights.

A London to New York return will be 199, while London to Miami will be 239, with nearly 60 long-haul destinations covered by the deal.

BA's head of sales and marketing Tiffany Hall said: "There has been a downturn in bookings as a result of world events but we believe that the mood of the British public is now changing and there is a growing desire to travel once again.

"By offering over 1.5 million long-haul tickets at fantastic prices we are giving people a great reason to book now."

North American destinations on sale also include San Diego, Phoenix, Denver, Orlando and Montreal.

Other holiday hot spots on sale are Mexico City , Johannesburg, Mauritius and Sydney and Melbourne from 599.

Flights within the UK and across Europe are also available at low fares.

The bargain sales are available until May 15 for travel during different time periods between April 20 and December 10.


Story filed: 13:20 Wednesday 16th April 2003

Virgin plans flights to Baghdad

LONDON (Reuters) - Virgin Atlantic has said it plans to fly relief supplies to Iraq and has told the government it is ready to reintroduce scheduled commercial services to Baghdad.
The United States, whose forces entered Baghdad a week ago, shifted its focus on Thursday from combat to reconstruction and urged an end to the United Nations' economic sanctions in Iraq.

Virgin Atlantic Chairman Richard Branson said the first few flights the airline would operate to Iraq would deliver doctors, nurses and aid supplies to the Iraqi population.

"We're working with aid agencies and hope to operate flights as soon as we can," Branson said in a statement.

"In addition, by reintroducing scheduled air services we would play our role in the post-war reconstruction of Iraq. Flights to and from Baghdad will be a key element in helping Iraq's long term regeneration and reuniting families who have been separated for many years," Branson added.

The London-based Virgin Atlantic, in which Branson's Virgin Group owns 51 percent and Singapore Airlines owns 49 percent, said it suspended flights to Iraq in 1990.

BA FARES SLASHED TO BOOST FLIGHTS Apr 17 2003


BRITISH Airways today slash long-haul fares by more than half to try to tempt passengers.

Up to 1,500,000 cut-price tickets are being offered, with savings of up to 60 per cent on nearly 60 destinations.

The decision to retire Concorde last week was the latest setback for BA, who recently announced plans to accelerate 3000 redundancies.

Bosses hope bargains like a London to New York return for 199 will boost traffic.

BA is also going head-to-head with no-frills carriers such as Ryanair and easyJet, offering cheap flights within the UK and across Europe.

The airline is offering 59 returns to London from Glasgow, Edinburgh and Manchester and 89 returns to Barcelona, Venice and Milan.

Sales chief Tiffany Hall said: "There has been a downturn in bookings as a result of world events, but we believe that the mood of the British public is now changing and there is a growing desire to travel again."

Irish airline Aer Arran Express yesterday launched a budget service from

Prestwick to the Isle of Man.

Fares for the 45-minute flight start at 59 return including taxes and will begin on May 21.

Prestwick chief Tom Wilson said: "Today's announcement opens another chapter in the tremendous success story of our airport - another new route and another new airline."

Guess a service to Baghdad will show the world that it's considered safe to fly ...


BA and Virgin race to take Baghdad

Andrew Clark
Friday April 18, 2003
The Guardian

British Airways is hoping to reactivate a 1980s bilateral treaty with Saddam Hussein's defunct Iraqi government which allowed the airline to provide scheduled

flights between London and Baghdad.
The national flag-carrier is racing with Virgin Atlantic to restore an air link to the war-torn country. Both airlines want to cash in on a surge in travel among businesspeople and aid workers as the task of rebuilding Iraq begins.

BA declined to comment. But insiders said the airline feels it has the edge over its rival because of a long-forgotten treaty between British and Iraqi ministers, which was signed when relations were cordial. The agreement allowed BA to fly to Baghdad - a privilege the airline last used in 1987.

Industry sources said BA saw no reason why a change in regime should invalidate the treaty. The air line is preparing to "dust it down" as soon as American troops have patched up Baghdad airport - which suffered extensive damage, including a crater in the runway, during fierce fighting two weeks ago.

BA and Virgin have both offered their services to the government to fly short-term aid to Iraq.

They hope that one-off flights will lead to the op portunity to begin regular, profitable services within weeks.

A Virgin Atlantic spokesman said chairman Sir Richard Branson had been "flooded with calls from the public and from staff asking what we could do to alleviate suffering".

He continued: "Once sanctions are lifted, under a new government, Iraq will start to trade more freely. Initially, there will be humanitarian traffic but business traffic will flow from that."

Expatriate Iraqis are expected to visit the country in large numbers once links are restored. Virgin's spokesman pointed out that the airline had successfully launched services to Lagos and Port Harcourt in Nigeria - both "emerging destinations

I note there is a new battle in Baghdad Airport ....... between Virgin and BA ..... who gets to launch a service first. Hmmmmmmmm ......



ains

Book on web or pay more, says BA
Graeme Wilson, Daily Mail
22 April 2003

ITISH Airways has slapped a 10-a-ticket surcharge on customers who do not book their flights online. Those who phone the airline or visit one of its travel shops have to pay the supplement, which applies to flights within the UK and Europe.




The supplement has provoked protests from campaigners for the elderly. They pointed out that four out of five older people do not own computers or have access to the Internet.


Help the Aged called on BA to rethink its policy. A spokesman said the charge discriminated against pensioners, many of whom liked the reassurance of speaking to someone when they were making a significant purchase such as air tickets.


'If someone has saved up for a one-off holiday, the last thing they want to do is to get the flights wrong because they press the wrong button.'


BA last night defended the supplement, which was introduced last year with little fanfare. It replaced the previous policy of offering online customers a 5 discount.


A spokesman said: 'I would concede that not everyone has access to the Internet. But by reducing our selling costs, that enables us to offer more competitive fares.' He added: 'We're a PLC with shareholders to think about.'



2003 Associated Newspapers Ltd.

British Airways is set to resume services on Tuesday to Kuwait following the suspension of flights last month.

Initially BA will operate three times a week from London to Kuwait via Larnaca in Cyprus rather than once a day direct.

Flights between London and Kuwait were suspended on March 19 after the Foreign Office advised against all travel to Kuwait.

BA's customer service and operations director Mike Street said "We remain firmly committed to resuming our full flight schedule between the UK and the Gulf region as soon as possible. The re-introduction of services to Kuwait is an important step towards achieving this.

"We will only fly to a destination if we are satisfied totally it is safe."

Over Easter, BA said it was in talks with the UK Government about resuming scheduled services to Baghdad. The airline's London-Iraq service was suspended in 1990.

Sir Richard Branson's airline Virgin Atlantic has also expressed interest in flying to the Iraqi capital.


Story filed: 14:15 Tuesday 22nd April 2003

Ainsoph,

I see BA have today reduced the number of flights to HK, down to 1 per day.

Surely SARS is going to hit ALL airlines, including BA very badly indeed?

The numbers are growing, and the Chinese are now admitting they hid patients during the recent WHO visit, driving some around in ambulances whilst officials were in the hospital!

If the number of SARS infected people grows into the expected epidemic, air travel, and in particular business air travel, will be cut back substantially, and during the important summer season too!

I would only be short in any airline at the moment.

Andy.

Inclined to agree with you short term Andy - my current holding is minimal but looking to buy a few back as soon as it's sorted. I see these dips as buying/trading opportunities

Always seems to be a reason not to buy airlines but people will still fly and holiday traffic will change destinations. Baghdad will be busy as soon as the fighting actually stops (business + politicians + armed forces)



ains

108P still my target to buy, won`t be long now before SARS really bites its ` tail.

PARIS (AFX) - A group of air passengers who were held hostage as human
shields by Iraqi leader Saddam Hussein before the 1991 Gulf war went to court
today to claim damages against British Airways PLC.
A Paris court is to rule on June 26 whether BA was partly responsible for
the passengers' ordeal.
Hundreds of westerners, including everyone on a BA flight from London bound
for Malaysia, were captured while in Kuwait when Saddam invaded in August 1990
and were deported to Iraq.
The BA passengers claim that their flight, which stopped in Kuwait to
refuel, had airlifted some thirty British special forces (SAS) troops into the
country.
"All possible risks were taken for this Trojan horse for the British
government," the claimants' lawyer, Dominique Menard, told the court today.
BA's lawyer, Fernand Garrault, stressed Britain had denied this version of
events.
In 1995, a Paris court ruled in favour of a group of French people who were
among the hostages, ordering BA to pay out fines of several hundred thousand
euros for exposing them to unnecessary danger.
The hostages' relatives were also paid compensation under the ruling, which
was upheld by France's highest appeal court.
Now the carrier faces legal action from a separate group of 134 people
seeking financial compensation -- seven former passengers and their relatives.
Flight BA 149, travelling between London and Kuala-Lumpur, had stopped in
Kuwait City to refuel just a few hours after the start of the Iraqi invasion.
Iraqi forces were bombing the runway at the time and all the passengers were
taken prisoner.
They were taken to Baghdad and were for months used as human shields at
possible bomb targets in Iraq, including power stations, oil refineries and
military sites. Many fell sick with dysentery and cholera.
They were released in waves, with the last captives, most of them British
and US nationals, freed in December 1990.
BA's lawyer Garrault said the court "made a mistake" in 1995 when it ruled
in favour of the first group of passengers. He has vowed to appeal if BA is
found guilty again this time.
"The invasion of Kuwait was unpredictable but it was even more unpredictable
that Iraq would take civilians hostage and use them as human shields," he said.
He pointed out that BA had successfully appealed to Britain's upper house of
parliament -- the House of Lords -- against claims filed by passengers in
England and Scotland, and that a court case in the US was simply dismissed.
cb/ec/gil/cw

Coming down nicely each day, only a further 10p to fall and i`m in.

Only 8p to go then!!!

Clearly helps BA in difficult times



'Use it or lose it' threat suspended as world's biggest carrier clinches last-minute rescue

Andrew Clark and David Teather in New York
Saturday April 26, 2003
The Guardian

The European commission lent a helping hand to ailing airlines yesterday by waiving strict rules governing the use of airport slots, because of the impact

ADVERTISEMENT

of Sars and the war in Iraq.
Following a meeting of transport ministers, the commission announced it was temporarily dropping "use it or lose it" requirements which strip carriers of sought-after slots unless they use them 80% of the time.

But the change, which applies until October, angered EasyJet, which has been trying to get its hands on more landing rights at congested destinations.

An EasyJet spokesman said: "In good times, there's no way British Airways or Lufthansa are ever going to give up these slots. The only time they could be forced to allow new competitors in is during times of crisis."

The global airline industry body Iata has estimated that the industry stands to lose $8bn (5bn) this year as passengers take fright at disease, terrorism and economic uncertainty.

Worst hit recently has been Hong Kong, where Sars has prompted a 65% collapse in passenger numbers. In an attempt to stem the decline, Hong Kong's airport authority yesterday slashed its parking fees for airlines by 75% and allowed carriers to defer payments by three months.

American Airlines, the world's largest carrier appeared to have averted imminent bankruptcy last night after the three main unions agreed to fresh pay-cut deals.

The negotiations were sealed after the resignation of chief executive Don Carty late on Thursday night. Mr Carty had provoked fury among the unions after they learned of a lucrative executive compensation plan put in place shortly after agreeing to $1.8bn in cuts and job losses to keep the airline in business.

The hapless Mr Carty attempted to mend relations with the workers but it was too late to save his own job.

The union representing the airline's flight attendants agreed a sweetened offer at the eleventh hour last night. The pilots and ground workers had earlier approved the new deal, which improves potential bonuses for employees and shortens the length of the concessions by one year to five years.

Gerard Arpey, the company's president, will replace Mr Carty as chief executive. Mr Arpey, 44, has spent his entire career at American, starting out as a financial analyst in 1982.

Board member Edward Brennan will take over as chairman, a job Mr Carty had also occupied.

Fellow struggler Air Canada revealed in court documents yesterday that it was losing C$3m (1.3m) a day, with its C$450m of cash reserves steadily dwindling.

Air Canada filed for protection against its creditors three weeks ago. Its main hub is Toronto, which the World Health Organisation has advised travellers to avoid, because of the threat of Sars.

108P NEXT WEEK.

PS
fly to the Maldives with Emirates and get upgraded free to buSiness class, we BAY shareholders have been asking for this perk for years, a free upgrade i.e.
Shareholder loyalty,? hah.

Maybe one should add up to a half unit then??

ROTFLMAO @KDC

I reckon these are a trading share these days and not a long term buy and hold..best to buy around 105p and make 10% at the most..

Yes ... it's mostly a trading share at this time and that's why we are here .....

Interesting ads today on 'two free tickets - if you sleep with us'


ains

I said ten days ago buy at 108p, and thats coming next week, get onto it.

Airlines' adverts flag dirty tricks war
James Rossiter, Evening Standard
28 April 2003

DOGFIGHT between budget airline operators Ryanair and easyJet marks the beginning of a much broader dirty tricks advertising war. Legal experts in the City said the boundaries are being tested by a surge in the number and range of companies eager to attack their competitors through their advertising.


Rupert Casey, a media lawyer at City firm Macfarlanes, has seen how comparative advertising, once largely the favoured battle tactic of DIY businesses and soap sellers, has now become almost commonplace for any sector which sells direct to the consumer.


He said: 'I am taking many more calls from a range of clients asking what they can get away with and then running with a campaign even if they are running a strong risk of technically infringing someone's trademark. If it's a short newspaper campaign, that may be worth the risk as injunctions are just going to be too late.'


The budget airlines, Casey added, have become just like fast-moving consumer goods industries - the Unilever and Procter & Gamble of the airline industry. 'Getting bums on seats fast is the aim,' he said.


Ryanair chief executive Michael O'Leary risked the wrath of easyJet's Ray Webster last week with a series of advertisements in The Times to promote Ryanair's latest sales offers. The first ran with a slogan 'A load of old bullocks', attacking easyJet's website claim that it had the cheapest flights to Spain. Another exclaimed: 'Liar, liar, pants on fire.'


Before 1997, anyone who took out comparative advertising in this country risked infringing someone else's trademark by using their rival's product logos in their advert, whether or not the comparison was fair. A European directive changed that, and now a business can only be sued if the comparison is not 'a genuine like-for-like comparison', said Casey.


Sellers using conventional media promotions - TV, radio and print - still have their adverts vetted by the Advertising Standards Authority, a media self regulator. In response, retailers are turning to more so-called 'ambient' sales media - fliers and posters - which are the subject of much less regulation.


Associated Newspapers Ltd.

ainsoph - 09 Feb'03 - 12:44


I am sure most peeps will know this is my favourite airline - I fly them and I buy them.
***********************************

The dirty tricks have started then!!!!!!!!!!

Market report: Monday 14.00
Michael Clark, Evening Standard
28 April 2003

THE Sars epidemic could spell the end for some of the best-known national airlines if the virus takes hold in Europe. That was the stark warning today from US securities house Goldman Sachs as it downgraded the European airlines sector to cautious.



It says it could be 'game over' for some flag carriers. There are clear signs of them heading the way of the US majors with falling revenues and rising costs. The spread of the virus could tip some over the edge, it warns. 'Even if it doesn't, anaemic economic growth will not paper over the industry's structural problems,' warned one of its analysts. Malaysian Airlines estimates Sars has already cost it 22m in lost revenue.



If some airlines fold, it could pave the way for carriers such as Ryanair, down 10p at 419p, and British Airways, up 2 1/2p to 119p, to grab market share. Goldman continues to rate Ryanair outperform along with BA, which is reckoned to be the long-term winner in any flag carrier restructuring within the industry.






Goldman has downgraded its earnings forecast for Deutsche Lufthansa, SAS and Royal KLM Dutch Airlines. It has also lowered BA from 4.27p to 2.73p a share and predicts an overall loss of 7.98p a share in 2004.



Share prices generally traded in narrow limits, unable to glean any inspiration from Wall Street after the Dow tumbled 134 points on Friday. In thin trading, the FTSE 100 index rose 30.4 to 3900.6 at the start of a busy week in terms of economic news and company trading results.

shares going well today with good news filtering throgh and out-performing market




Andrew Clark
Monday April 28, 2003
The Guardian

British Airways is imposing a fresh round of cuts on its loss-making regional subsidiary, CitiExpress, which could include withdrawing services from several
domestic airports.
At an internal briefing last week, CitiExpress's managing director, David Evans, told staff he planned to cut 120 jobs in an attempt to squeeze out 20m of annual savings.

A "fleet and network" review is due to report back next month. Insiders believe this could recommend pulling out of more airports, following BA's recent withdrawal from Cardiff and Leeds Bradford.

Sources at the airline say that the Isle of Man is among the more vulnerable destinations. Plymouth and Newquay are under the microscope because they use Dash-8 aircraft, which BA is keen to get rid of. Services from Manchester and Birmingham airports might be also reduced.

Mr Evans declined to discuss the likely outcome of the review, saying he was "ruling nothing in and nothing out".

He said business conditions had remained tough since a first round of cuts was announced in December: "This is all part of the ongoing busi ness planning process. We'd all acknowledge that things remain very challenging - the focus on getting the business into shape remains."

A decision to withdraw from any regional airport is likely to bring political protests. Welsh politicians have expressed dismay at BA's recent cessation of services to Cardiff, attacking the airline's suggestion that travellers are able to use Bristol airport as an alternative.

Job losses at CitiExpress will largely hit support staff rather than pilots or cabin crew. The airline is looking for a 5% increase in productivity and an operating margin of 8%, urging staff to "work harder and work smarter".

The restructuring has contributed to tensions between managers and unions at CitiExpress, and BA's chief executive, Rod Eddington, met union representatives at the regional operator last week in an attempt to soothe their fears.

He agreed to appoint a third-party consultant to mediate between CitiExpress managers and the pilots' union, Balpa, which is dismayed at the level of uncertainty and job insecurity at the business.

ainsoph - 09 Feb'03 - 12:44


I am sure most peeps will know this is my favourite airline - I fly them and I buy them.
***********************************

The dirty tricks have started then!!!!!!!!!!,
would you really like to put your bum on a seat after KDC,

UUUUGGHHH!!!!!

Out-performing the market today @ 124p


29 Apr 2003 11:57 BST

Airlines say SARS impact now bigger than war

LONDON (Reuters) - Europe's biggest airlines are now being hit harder by the deadly SARS virus in Asia than on war-hit Middle Eastern routes, weekly traffic data has shown.
Airlines around the world have cancelled flights near Iraq in the past six weeks, but cuts are now mounting on Asian routes while some service to the Middle East resumes.

Demand for seats to the Far East and Australasia plunged 28 percent from year-ago levels in the week ending April 20, the Brussels-based Association of European Airlines said in a statement.

That was more than the 24-percent fall on routes to the Middle East, underscoring the rising impact on airlines from Severe Acute Respiratory Syndrome (SARS), which has been blamed for 331 deaths, more than a third of them in China.

In March, Middle East routes were down 34 percent versus just seven percent for Asian routes.

SARS has sparked World Health Organisation travel warnings on Toronto, Hong Kong and other parts of China, hitting carriers well beyond the affected regions as airlines in the United States and Europe also count on business and tourist traveller revenues from Asian routes and flights to Canada's financial capital.

Four of 10 seats are flying empty for European carriers serving Asia, the AEA said.

March traffic for Europe's largest carriers fell 4.5 percent, hit by war in Iraq and SARS, but the fall was cushioned as year-ago traffic was also weak.

"Hostilities began on the 20th of the month, although the market had been weakening before that date, in evident anticipation of the conflict," it said.

The 30-member AEA represents about 90 percent of scheduled flights in Europe. It includes top carriers British Airways BAY.L and Air France AIRF.PA but not low-fare airlines Ryanair RYA.I or easyJet EZJ.L .

flown with BAY a couple of times in the past few months. ok but no more. it's all about price and maintaining slots/good reliability for their short haul/euro business now. i dont think the brand's worth much

would you really like to put your bum on a seat after KDC,

irritating little peeps


Branson denied Concorde information
By Michael Harrison, Business Editor Indy
30 April 2003


British Airways rejected renewed demands from Sir Richard Branson yesterday for access to financial information about Concorde so he could decide whether to keep the supersonic aircraft in service when BA retires its fleet this October.

BA also denied a claim by the Virgin Atlantic chairman that it had offered to sell one of its seven Concordes to a well-known British composer for a "nominal fee" provided it was not used in competition.

Sir Richard, who has offered to buy Concorde from BA for the 1 it paid for the fleet, wrote yesterday to the BA chairman Lord Marshall of Knightsbridge saying he found the airline's attitude "totally baffling" and asking for a copy of the latest audited financial statement it had provided to the Government.

"If BA wants to stop flying Concorde, that's its commercial decision. I have no problem with that," he said. "But in the circumstances, why should that stop someone else from having a go at keeping this beautiful aircraft in the air? With Virgin Atlantic's lower costs and marketing flair there must be a good chance we could make a go of it, even if BA can't."

Lord Marshall responded by saying that an in-depth review of Concorde, carried out with its manufacturer, Airbus, had concluded there was "no realistic prospect" of continuing services beyond this October "whether by us or any other operator". He also maintained that BA had paid the manufacturers 155m for Concorde and had invested a further 1bn in the service since 1976.

Lord Marshall added that the 1980 agreement whereby it provided the Government with an annual audited statement of Concorde's operations had ended in 1984 with the payment of 16.5m for the remaining spares inve

May 02, 2003

CitiExpress faces more cost-cutting
By Russell Hotten TIMES



BRITISH Airways will today announce another round of cost-cutting at CitiExpress, its regional subsidiary, where pilots had threatened to strike.
CitiExpress, which has already gone through a restructuring, wants to save another 20 million, including 7 million this year.

David Evans, the managing director of CitiExpress, described the cost savings as critical to the airlines future. In a statement to staff he said that doing nothing is not an option. He said: The future of our regional operations is in our own hands, and we have to reduce our cost base immediately to avoid incurring losses.

CitiExpress, formed from the merger of short-haul airlines, was restructured in an overhaul of BAs operations after a big fall in business. BA has brought forward by six months a plan to save 450 million by next March.

About 21 routes have already been cut, along with bases at Cardiff and Leeds-Bradford airports. However, CitiExpress has begun services from Londons City Airport.

i booked flights with Virgin upper class to SF on line and received around 500
discount each person from the regular price, I have to admit that BAY first class is superior but so is the price ,big time.
BAY are going to have to rethink their charges PDQ if they are going back as a world beater.

Friday May 2, 04:21 PM






U.S. stocks jump 1 percent; airline shares fly
(Updates with extended gains)

NEW YORK, May 2 (Reuters) - Stocks jumped more than 1 percent on Friday as investors bet the U.S. economy will gather steam later in the year and a bullish investment call sent airline shares like AMR Corp (NYSE: AMR - news) . soaring.

"People are saying in the next six months the market has got to pick up," said Todd Leone, head of listed trading at S.G. Cowen. "The war is over, and there is no bad news on the horizon."

The blue-chip Dow Jones industrial average climbed 92 points, or 1.09 percent, to 8,546. The broader Standard & Poor's 500 Index advanced 9 points, or 1.08 percent, to 926. The technology-laced Nasdaq Composite Index jumped 22 points, or 1.53 percent, to 1,495.

The U.S. economy shed jobs for the third straight month in April and the unemployment rate hit a 4-month high at 6 percent, according to a report before the open. But separate data showed orders for U.S. manufactured goods rose by a larger-than-expected 2.2 percent in March, their best showing since July 2002.

Airline stocks rallied after Merrill Lynch (NYSE: MER - news) said the worst may be over for the industry. AMR surged 89 cents, or 18.5 percent, to $5.70. Northwest Airlines Corp (NASDAQ: NWAC - news) . leaped $1.70, or 19.7 percent, to $10.25. Continental Airlines Inc (NYSE: CAL - news) . jumped $2.14, or 21.7 percent, to $12. Delta Air Lines (NYSE: DAL - news) Inc. rallied $1.86, or 14.3 percent, to $14.86.

note the comments on traditional airlines






Warning sends EasyJet into a dive

Neil Hume
Saturday May 3, 2003
The Guardian

EasyJet shares dived to their lowest level since its flotation in November 2000 yesterday, as another leading broker turned negative on the no-frills

airline and gave warning that next week's interim figures will disappoint.
The pre-results jitters first started to undermine EasyJet's share price late last week after UBS Warburg, one of the company's two brokers, slashed its earnings forecast by a staggering 37%. It cited concerns that EasyJet has been forced to keep on cutting fares because of stiff competition from second-tier traditional and charter carriers, many of which had been expected to go bust.

Since then the shares, which came to the market at 310p, have continued to lose altitude despite a vague bid story doing the rounds on Thursday. Yesterday, they lost a further 11.5p to 173.5p - the biggest fall in the FTSE 250 - after US investment bank Morgan Stanley downgraded its rating to "equalweight" from "overweight" and advised clients to switch into rival Ryanair, up 2.5p to 422.5p. "We have come to the conclusion that EasyJet's business case has weakened to such a degree that it makes it impossible for us to maintain a positive view on the shares," it said. "The surprising endurance of the traditional carriers puts the longer term market opportunities for low cost carriers with focus on hubs in doubt," Morgan Stanley continued.

With prices on these routes likely to remain competitive - yesterday Swiss launched a new regional airline called Swiss Express - Morgan Stanley suspects that profit forecasts for EasyJet will be scaled back when the results are released on Wednesday.

Elsewhere in the sector, things were rather brighter. British Airways climbed 10.5p to 135p after Merrill Lynch said the worst was over for the airline industry and Citigroup Smith Barney upgrading its rating to "outperform". Citigroup reckons BA is the best play on a return to normal political and economic conditions.

In the wider market, leading shares recouped all of Thursday's losses and 30 points more for good measure. As usual London was lifted by a strong showing in New York, where indices stormed higher on the back of an employment report that, although weak, was better than most investors had expected.

The final scores showed the FTSE 100 ahead 72.5 points at 3,952.6, taking its gains over the week to 82.4 points. Glaxo-SmithKline , up 57p to 13.32, BT , 7.5p higher at 182.5p, and Reuters , 8.5p better at 138.5p, spearheaded the advance.

Elsewhere, the FTSE 250 rose 42 to 4,416.9, while the FTSE Small Cap index added 20.8 to finish at 1,858.2. Despite the looming bank holiday weekend, trading volumes were good with more than 2.2bn shares changing hands.

In the bond market, gilts fell as investors took profits after two days of gains. The benchmark 10-year gilt fell to 104.790, pushing the yield up to 4.46%.

Back among the blue chips, BAE Systems , off 0.5p to 124p, bucked the strong market trend after secretive stockbroker Cazenove downgraded its rating on Europe's leading defence contractor to "reduce" from "hold" citing cashflow concerns. Cazenove estimates net debt will balloon to 1bn by the end of 2004 if BAE fails to secure a major export order within the next year. Given that BAE has struggled to secure such deals in recent years, Cazenove reckons investors would be better off reducing their holdings.

Profit taking after its recent speculative run saw drinks group Allied Domecq ease 5.25p to 357p. However, market professionals still reckon a bid is on the way.

Lower down the corporate ladder, Westbury , up 11.5p to 321p, was in demand as bid speculation swirled round the west country housebuilder.

Lastminute.com , the online travel agent, improved 9p to 107.75p as the London market had its first chance to react to better than expected figures from USA Interactive, the owner of online travel company Expedia. On Thursday night, USA Interactive shares gained 10% after it revealed bookings had recovered in the later part of April. Meanwhile, property group Shaftesbury gained 1p to 163p after Merrill Lynch cleared a large overhang of shares.

Among the small caps, Holmes Place , the upmarket health and fitness club operator, extended its losses since Wednesday's dreadful full year figures to 25%. Yesterday's damage was done by speculation that venture capital groups Bridgepoint and Permira have made an offer of just 18p-a-share for Holmes Place, which is still in discussions with its banks about securing a new lending facility. The shares fell 5.25p to 27.75p.

On a brighter note GW Pharmaceuticals , the medicines from cannabis company, climbed to a record high of 207.5p, up 10p, as momentum investors chased the stock higher and amid speculation that GW is close to signing a pan-marketing and distribution deal for its multiple sclerosis treatment. According to market gossips the name in the frame is German drug maker Bayer.

Elsewhere, European Colour advanced 3p to 24p after Jarvis Porter , the cash shell that recently acquired Aim-listed Darby Group, increased its stake in the pigments group to 29.73% - just below the 30% threshold at which it would have to make a bid for the company.

Citigroup Smith Barney upgrades both British Airways and SAS AB in a preview of the sector's results season, dealers said. BA was raised to 'outperform' from 'in-line' at the US broker, although it also trimmed forecasts and cut its target price to 170 pence from 200. SAS was raised to 'in-line' from 'underperform', with target lowered to 42 skr from 52. Overall, Smith Barney predicts the airlines to show the worst set of results in 12 years. "As a result of the Iraq war, excessive low-cost competition and the SARS virus, the outlook for earnings could hardly be more negative," it told clients. It therefore lowered earnings forecasts for 2003 and 2004 for all European airlines save Ryanair Holdings PLC. But against this, it reckons the grim year has been priced into some stocks. And there is some good news, Smith Barney argued, with Atlantic demand stabilising, traffic rebounding and consolidation possible. Its top picks for the next cycle, along with BA, were Easyjet PLC, Iberia Aereas de Espana SA and Ryanair. All were repeated 'outperform'.

Jesus Christ talk about spam, pages of it and on a holiday weekend too, sad?

Jesus wepped ..... shagnasty seems an appropiate name




BRITISH AIRWAYS RE-LAUNCHES ITS EXECUTIVE CLUB




06 May 2003
- ADDED BENEFITS FOR FREQUENT FLYER MEMBERS -

British Airways is to introduce a series of changes to its Executive Club loyalty programme from 1 July 2003 to make the scheme simpler, with more ways to spend BA Miles and better incentives for loyal customers.

The Executive Club, which has almost five million members worldwide, is split into three levels of membership - Blue, Silver and Gold.

Key changes include:

The creation of a global Executive Club, by merging the five existing schemes into one programme

Customers will now for the first time be able to use their BA miles to upgrade to the next cabin on eligible tickets and to also use a
combination of cash and BA miles to purchase a ticket

Improvements to the website to enable members to manage their accounts entirely on-line, including redeeming their BA Miles.

A new classification system which enables customers to redeem their BA miles on a geographical zone basis rather than on a route by
route basis

The introduction of a household account which allows up to seven members of the family to earn points and pool BA Miles in order to
achieve benefits of the Executive Club quicker. This scheme replaces the Middle East Family Passport Programme.

Entry and renewal thresholds to the Silver and Gold tiers have been aligned to make gaining and maintaining tier status simpler and fairer.

The ability to earn more points in each of the premium cabins, including World Traveller Plus, Club World, First and Concorde.

All Executive Club members will now be able to book their redemption tickets up to three days before departure on routes where e-
tickets are available. This is down from the 14 days notice required under the old terms and conditions

New customers wishing to join as a Blue member will now have to take one qualifying flight a year to gain and to also maintain their
annual membership

Steve Allen, British Airways Area Marketing Manager for UAE & Oman, said: By simplifying the club and creating a single global programme our objective is to deliver better service to our loyal customers and offer them more chances to take advantage of flying with British Airways.

The global simplified scheme will allow British Airways to respond much better to our customers feedback and offers greater opportunities to add more benefits in the future for our members.

All active British Airways Executive Club members around the world have been written to in one of the biggest communication exercises the airline has ever undertaken.

-Ends-

Notes to Editors:

Due to the realignment of entry and renewal thresholds some members may not in July have the required number of points to
maintain their current tier status, in this case they will be given a 12 month free extension period to enable them to adjust to
the new terms and conditions.

For more information, contact
Leanne Blackenberg,
Promoseven PR,
Dubai,
Tel +00971 4 3368826,
Fax +971 4 3368609/96 or
email leanne@promoseven.com


Press Release 2003

ticking up @ 135p and very close to the year's high ......



ains

3rd in the ftse250 risers board intraday @ 143p @ plus 6% and at a 6 month high :-))

Durlatcher has them as atrading buy up to 165p

TRAFFIC AND CAPACITY STATISTICS - April 2003

Summary of the headline figures

In April 2003, overall load factor rose 0.7 points to 64.6 per cent. Passenger
capacity, measured in Available Seat Kilometres, was 1.3 per cent below April
2002 and traffic, measured in Revenue Passenger Kilometres, was lower by 2.0 per
cent. This resulted in a passenger load factor down 0.4 points versus last year,
to 69.0 per cent. The fall in traffic comprised a 26.4 per cent reduction in
premium traffic and a 2.7 per cent increase in non-premium traffic. These
numbers were impacted by the timing of Easter versus last year. Cargo, measured
in Cargo Tonne Kilometres, fell by 7.3 per cent.

Market conditions

Revenue and forward bookings continue to be impacted by global economic
weakness, SARS, and the situation in Iraq. Forward visibility on revenue and
traffic remains limited.

Strategic Developments

British Airways announced the retirement of its Concorde fleet of seven aircraft
with effect from the end of October 2003.

A U.S. Department of Transportation order tentatively gave British Airways and
American Airlines authority to codeshare on a wide number of flights beyond
their gateways in London and the United States.

British Airways launched a new direct air link from Glasgow to London City
operated by its wholly owned subsidiary, British Airways CitiExpress, using 110
seat RJ100 jet aircraft. This follows the launch of flights from London City to
Paris and Frankfurt on March 30th. There will be three return flights on
weekdays and one return service on Sundays.

British Airways resumed flights from Heathrow to Tel Aviv and Kuwait and
re-introduced direct services to Abu Dhabi, Dubai, and Bahrain, Jeddah and
Riyadh. It also announced plans to return to Baghdad with a thrice weekly
service, when it is safe to do so.

British Airways franchise operator, GB Airways, announced the introduction of
another two destinations Fuerteventura and Tenerife North - to its network from
the UK.

Ends

Merrill Lynch said the worst was over for the airline industry and Citigroup Smith Barney upgraded its rating to "outperform". Citigroup reckons BA is the best play on a return to normal political and economic conditions.

9 May 2003, Evening Standard

BRITISH Airways and Qantas, which today applied to Australian regulators for an indefinite extension to their joint-services agreement, warned if it were not approved, they may have to cut flights to Britain, Europe and Singapore. The agreements have turned the London to Sydney route from a loss-maker into one of the airlines' most profitable.

Williams de Broe has buy ratings for BAA, British Airways

<>

Yes Ains ive traded BAY long a few times of late irs been profitable...



Your still an evil, twisted lonely ramper who has untold losses since the highs of late 99/00, even if you were raking it in, money or success wouldnt help you....

i got three business seats on Virgin for 50% each of the BA price, we share holders have been asking for such discounts for years from these arrogant management louts, and still no agreement, all the staff get nice perks from our investment though.I feelanother snotty letter coming on.

shag
Of course you did, living in your dream world again, you sad sad boy, get a life.
Guru

GURU
are you completely so devoid of anything to say that you have to post this pathetic imbecilic stuff, do you realise what a complete and utter oaf you make yourself look; by stating that I have not the means to buy three flights on an airline, does it make you feel better to think that?
I tell you, if you, and the other five- de-filtered tonight by the way to see you in action-I need a laugh-are not one person you certainly deserve each other, you could get psychoanalysed together at a cut rate.
Tell me , as the obviously stupid person you are, what on earth makes you think in such a disjointed futile way, is it a family sickness , or are you self taught?
Read your post again and blush.

ps , the "get a life " is a dead give away, I expect you say 24/7, babe, and go to karaoke with super-odd at Butlins

ROTFLMAO

Williams de Broe has buy ratings for British Airways (BAY)

Flying high right now @ 140p and set to go higher

H2 on the 19th


ains




LONDON (AFX) - British Airways PLC's overnight flight to Nairobi is operating as scheduled but all other flights to and from Kenya have been cancelled until further notice, a BA spokesman in Nairobi said.
"The move follows instructions from the British government Department of Transport that all registered airlines that fly to Kenya are to supsend flights with effect from 10.00 pm due to heightened security concerns in the region," he said.

Kenya Airways spokeswoman Grace Njau told Agence France-Presse the airline had "not received any advisory" from the British government.

"Flights are scheduled as normal and the last flight will leave at 11.40 pm for London," she said.

The Association of British Travel Agents earlier said Britain is suspending all flights to and from Kenya from today because of an "imminent" terror threat.

LONDON (AFX) - British Airways PLC is likely to withdraw from the consortium that owns Eurostar after National Express announced on Wednesday it was pulling its investment, the Financial Times reported, citing the company.
The paper quoted BA as saying, "In the light of the announcement by National Express, British Airways is certainly considering our position regarding Eurostar and are in discussions with the other shareholders."

Apart from the poor financial performance by Eurostar, which is thought to be losing some 100 mln stg a year, the withdrawals are being prompted by a restructuring of the company that operates passenger services through the Channel tunnel.

Eurostar comprises three separate companies, running the UK, French and Belgian parts of the network. National Express owns 40 pct of Eurostar UK, with French and Belgian state rail companies SNCF and SNCB owning 25 pct each and British Airways has 10 pct.

But Eurostar is working towards streamlining the three companies into a single entity before the end of the year, a plan code-named Project Jupiter. tf/rn

BA profits nosedive amid 'perfect storm'

Shocking last quarter loss of 250m takes shine off full-year return to the black

Nick Mathiason
Sunday May 18, 2003
The Observer

British Airways, Europe's biggest airline, will reveal a dramatic fall in final-quarter profits as the full effect of the Iraq war takes the shine off

its resurgent full-year financial performance.
Tomorrow BA, led by Australian Rod Eddington, is expected to report pre-tax losses of 250 million in the three months to 31 March - compared with 85m profit the previous year.

This shocking figure does not include any effect from the Sars virus outbreak in South-east Asia, which has decimated business travel.

Analysts say the Iraq war, the Sars outbreak and the reluctance of North Americans to cross the Atlantic will inevitably mean BA enters the first quarter of its new financial year in the red.

'We are in the midst of the perfect airline storm,' said JP Morgan's aviation analyst, Chris Avery. 'It was a pretty devastating last quarter.'

But BA is expected to report full year pre-tax profits of just above 66m - against a 200m loss for the previous year, which was the worst result since the firm was privatised nearly 20 years ago.

BA's performance is markedly stronger than its European rivals, which the company attributes to its moves to cut 10,000 jobs, reduce capacity, simplify its fleet and adopt the online ticketing tactics used by its low-cost rivals.

Overall, BA is on track to make savings of 450m and will reaffirm its commitment to its 'future size and shape strategy', aiming to rationalise the company in a harsher business climate.

But the airline will also confirm a 1 billion pension shortfall. BA will not comment on whether this will require additional funding until an actuarial review is completed in the autumn. Analysts say BA may have to find an extra 100m to make good the shortfall.

Earlier this month Britain's biggest budget airline, EasyJet, revealed that it had slumped 48m into the red during the six months to March, sparking concern in the City that the spectacular success of low-cost carriers could yet prove shortlived.

There are also concerns about a glut of new no-frills competitors who have started flying over the last 18 months.

Key government proposals to build more airport runways must be abandoned, a think-tank will say this week.

In its report on the future of aviation, the Institute of Public Policy Research will slam the Government for being 'in hock' to the airline industry, and will advise that existing capacity at airports be utilised more efficiently before expansion is considered.

The IPPR demands that the aviation industry's contribution to climate change through harmful fuel emis sions and land-hungry development be recognised. At present airlines pay no tax on fuel or VAT on tickets.

Later this year the Government will announce whether new runways are needed at Heathrow, Gatwick and Stansted. The British Airports Authority and airlines are lobbying strongly for them to be built.

But opponents say predictions for airline growth are wildly over-optimistic, and new runways will cause untold environmental problems

Aggressive job cuts put BA in line for return to profit

GUY DIXON Scot on Sunday


INVESTORS should get a strong indication about the real health of the economy as some of the UKs best-known firms report figures this week.

Blue chips BT, Marks & Spencer and Scottish & Southern Energy will all get their chance to update investors on progress, but it is British Airways that will set the ball rolling tomorrow.

The company has had a rough ride in the last year. This time last year it posted pre-tax losses of 200m for the 12 months to March 31, as competition from low-cost rivals and the fall-out from September 11 took their toll.

The flag carrier has since been battered by a new round of well-publicised difficulties in the airline sector in the run-up to war in Iraq and, more recently, Sars. And its falling share price saw it relegated from the FTSE 100 Index twice in the last year.

But BA has been aggressive, tackling costs by cutting capacity as the war loomed and bringing forward its on-going programme of job cuts, with the remaining 3,000 from a 13,000-strong cull now going by the end of September rather than March 2004. Analysts profits forecasts ahead of its full-year results on Monday vary widely from 56m to 225m.

High-street store Marks & Spencer will not see the benefits of the Easter retail boost when it issues profits for the year to the end of March on Tuesday because of the timing of the holiday.

But guidance throughout has been clear. At the time of its fourth-quarter trading statement, the company said that full-year profits would come in at the top end of analysts expectations - which ranged from 710m and 720m, adjusting for the 10m one-off cost of moving its head office to Londons Paddington Basin.

Analysts are not expecting many surprises on Wednesday when National Grid Transco issues full-year results.

In its most recent trading update, the group said profits would be impacted to the tune of 30m by its decision to suspend recognition of pension surplus credits. Analysts at stockbroker Gerrard expect pre-tax profits to come in at 1.23bn, compared to 797m last year.

Telecoms giant BT may have changed its logo, but continuity rather than drama is expected when it releases final results on Thursday. With no exposure to the mobile market, profits growth is not expected to be overly dramatic and investors will be looking at other indicators, such as margin improvements.

Nevertheless, Gerrard hopes for pre-tax profits of 1.86bn - last year bottom-line profits were 1.46bn.

Perhaps of more interest will be its pension fund. Although the recent rise in the stock markets will have taken some of the bad taste off any pension deficit, the well-publicised effects of the bear market on pension funds in general has highlighted the need for companies to change their weighting to depend less heavily on equities.

Interim results from InterContinental Hotels on Thursday will reflect the downturn in the industry caused by the lead up to war and the outbreak of Sars.

Covering the period from October to March, they are also likely to show that operating profits are even more depressed than under the ownership of SixContinents, the leisure group from which it demerged just weeks ago.

Analysts at Gerrard are forecasting interim profits of 80m for this first-results statement from the company.

May 18, 2003

BA faces a 1bn pension fund hole
Dominic OConnell S TIMES



BRITISH AIRWAYS will tomorrow reveal that the deficit in its main pension fund has trebled to nearly 1 billion two-thirds of the airlines market value because of falling equity markets and the increased cost of pension provision.
Pensions experts believe the airline may be forced to make extra contributions of about 50m a year to the fund from January.

The pensions chasm will cap gloomy results from BA. The airline is expected to report a small pre-tax profit around 40m for the year ended March 31, but Rod Eddington, the chief executive, is not expected to issue any guidance for this financial year. Analysts had expected him to follow the lead of Air France, KLM and Lufthansa and give outline guidance.

The impact of the Iraq war, the Sars virus, terrorism fears and the economic downturn have forced BA to cut weak routes and slash fares.

Most analysts expect the company to make a small operating profit in this financial year, but to fall into the red at the pre-tax level.

Eddington is understood to be weighing further cuts to regional operations and to its network from Gat- wick, which continues to lose money.

Several other British companies are expected to reveal hefty pension deficits this week.

The biggest hole revealed by the FRS17 test is likely to be at BT, the telecoms group that publishes full-year results on Thursday.

Some forecasts put the deficit as high as 7.5 billion, compared with BTs 16.5 billion market value. BT is expected to say that it does not anticipate having to increase its annual contributions to the fund.

Royal Mail is expected to reveal a pension deficit of nearly 4 billion.

BA has two pension funds, Airways Pension Scheme (Aps) and New Airways Pension Scheme (Naps).

The combined deficit at the last annual results was 319m. Aps is understood to be roughly at break-even, but Naps heavily in deficit. Naps was closed to new members on March 31.

A full actuarial valuation of BAs pension will be undertaken by the end of the year. The company will then have to decide whether it needs to increase its contributions.

Its a big deficit, but they can spread the load over a number of years, and in the meantime there is the likelihood of a recovery in equities. I think the additional contributions could be in the order of 50m to 80m a year, said one leading airline analyst.

Should be an interesting situation and one will need to see how real life compares with the forecasts .... I have a limited position at this time and will be prepared to jump either way ...



ains

BA flies back into the black
Robert Lea, Evening Standard
19 May 2003

RITISH AIRWAYS made a 135m pre-tax profit last year, but warned of a gaping 1.2bn hole in its massive pension fund.

In what chief executive Rod Eddington called 'one of the toughest years in living memory', job cuts of up to 13,000 staff and investment cutbacks saw BA soar back into the black in the year to the end of March, having dived to a 200m loss in the previous 12 months.



But the airline implicitly warned it may not be out of the worst by failing to reward shareholders - who have seen the stock plummet and fall out of the benchmark FTSE 100 index - with a dividend*. BA has now not paid a divi for two years, having axed it in the wake of the 9.11 terrorist attacks.



More explicitly, chairman Lord Marshall warned: 'Forecasting revenue against a backdrop of continuing global economic weakness, Sars and Middle East developments is very difficult. However the outlook is that revenue in quarter one [April-June] will be lower than last year. Visibility beyond the first quarter is not clear.'



The airline also revealed the funding shortfall in its retirement scheme has almost quadrupled in the year, reflecting the poor performance of the funds' investments during falling stock markets. BA's two major schemes provide for 101,000 employees, 44,000 of whom still work for the airline.



The annual results include an 84m

Down nearly 6% on the lack of forward visibility that the media is focussing on .... volumes are high against the daily average of around 8 million but not exceptionally so under the circumstances @ 3 million.



ains

LONDON (AFX) - Rod Eddington, chief executive of British Airways PLC, said he is confident the flag carrier can exceed its target of 650 mln stg of annualised costs savings by March 31, 2004.
"I'm confident we'll exceed the 650 mln stg," he told reporters after BA released its year to March 31, 2003 results.

"Our first challenge is to get to 650 mln stg and we'll focus on moving beyond it when we reach it," he said.

Earlier BA revealed it had achieved annualised cost savings under its 'Future Size and Shape' (FSAS) restructuring programme of 570 mln stg by March 31, 2003 -- ahead of its year one target of 450 mln stg.

The airline exceeded savings targets in all areas including manpower costs, distribution, procurement and information technology.

Manpower reductions since August 2001 total 10,182 against an FSAS year one target of 10,000, and are on track to achieve the FSAS year two target of 13,000 by September this year.

In addition to the FSAS programme, BA plans to cut costs by a further 450 mln stg by March 2005 -- 300 mln stg by reducing external spend by 10 pct and 150 mln stg from other initiatives.

BA reported a year to March 31, 2003 pretax profit of 135 mln stg versus a loss of 200 mln stg last time and ahead of analysts' expectations of a pretax profit of 17-108 mln stg.

The full year outcome masked a difficult fourth quarter, during which BA notched-up a pretax loss of 200 mln stg versus an 85 mln stg loss the last time.

However, the fourth quarter performance was still better than analysts' expectations of a pretax loss of 318-227 mln stg.

BA said it expected the business environment to remain challenging in 2003/04, given the backdrop of continuing global economic weakness, SARS, and Middle East developments.

It warned that revenue in quarter one will be lower than last year and said visibility beyond the first quarter is unclear.

"We've said that we anticipate it (first quarter revenue) will be lower. We're not going to put a number on that," Eddington told reporters.

"It's really difficult to get visibility looking ahead. Not just six months ahead but one month ahead, and in that environment we don't want to be putting any percentages on our broad comment of lower revenue."

At 8.47 am shares in BA were down 1-3/4 pence at 141-1/2.

james.davey@afxnews.com

Durlatcher takes an each trading stance this morning - looking for 148p on good newsfor move northwards but indicates a sell if closing below 136p


ains

LONDON (AFX) - Rod Eddington, chief executive of British Airways PLC, today insisted the flag carrier will not reverse its decision to retire Concorde despite Sir Richard Branson's campaign to save the supersonic airliner.
Last month BA and Air France announced they will ground their Concorde fleets in October and May respectively, prompting Branson's rescue attempt.

BA said its decision had been made for commercial reasons with passenger revenue falling against a backdrop of rising maintenance costs for the aircraft.

It explained that extensive talks with Concorde's manufacturer Airbus -- the European planemaker owned by European Aeronautic Defence and Space Co and BAE Systems PLC -- had confirmed the need for an enhanced maintenance programme in the coming years that BA could not justify.

"BA has been working with Airbus and its predecessors (Aerospatiale and British Aircraft Corporation) on Concorde for over 30 years and clearly the decision to retire Concorde was one that was only taken after a substantial amount of work was done between the technical teams at BA and Airbus," Eddington told reporters today after BA released its year to March 31 2003 results.

"The chief executive of Airbus and his senior directors have made it very clear to me personally that Concorde's time has come sadly and it's time she retired.

"Our experts and their experts have both come to the same conclusion it couldn't be clearer."

However, Branson looks set to continue the fight.

A spokeswoman for Branson's Virgin Atlantic said he will meet Airbus executives on Wednesday to put forward his case for saving Concorde.

Although his pleas to both Prime Minister Tony Blair and Trade and Industry Secretary Patricia Hewitt to intervene have been unsuccessful, he claims to have the backing of the British public.

Meanwhile, Eddington revealed that Concorde bookings have been "very good" since her impending retirement was announced April 10.

"A lot of people have had it as something they might want to do at some point in the future and they recognise they do have six months to do it," he said.

james.davey@afxnews.com

Will be looking for an entry point to add a few but media is tending to be neggative at this time

ains



Despite a previous tough 12 months and the 'triple whammy' of the war in Iraq, Sars and a weaker global economy, the 1.5 billion airline (BAY) reported a pre-tax profit of 135 million for the year to March, ahead of its 200 million loss the year before.

Turnover fell 8% to 7.7 billion, reflecting the withdrawal from unprofitable routes and 570 million of cost cutting, which is running ahead of forecasts. Revenue passenger kilometres (RPKs) fell 6%.

Operating cashflow rose by more than a third to 1.2 billion, while net debts were reduced by 1.1 billion to 5.1 billion. There is no dividend.

However, the rosier picture for the full year masks a tougher fourth quarter, which included the worst side effects of the war in Iraq.

The fourth quarter pre-tax loss was 200 million, compared with an 85m million loss a year ago, and a 7% fall in RPKs. Turnover fell 14.2% to 1.6 billion.

'It felt inside the business as though we were at war already, before 20 March,' said Eddington. 'A lot of premium business fell away and fuel prices rose.

'There are many pressures in the marketplace and the revenue environment is challenging.'

Certainly, the many pressures on the airline industry these days have hit some parts of BA hard, particularly its all-important premium traffic, which fell by a quarter in March and April.

Non-premium traffic, in contrast, appears to have recovered somewhat, although Eddington claims Sars is 'still an issue', as are the latest terrorist attacks.

Revenue for the first quarter of the current year will be lower than last year, he said, while there is little visibility beyond that.

Meanwhile, the group is to take an 84 million write-down and impairment charge on Concorde, which is to be grounded at the end of October.

BA's shares are down 5.25p at 138p.

Citywire Verdict:

A 30% reduction in the fleet and more than 10,000 redundancies so far have helped steady BA in the seemingly-endless turbulence in which the airline industry is flying these days.

And as Eddington predicts, further redundancies and the offer of unpaid leave for all staff mean the group looks on course to beat its previous cost-cutting targets of 650 million by March 2004, with an additional 450 million to come by March 2005.

BA's shares have nose-dived from nearly 250p a year ago to as little as 85p two months ago, to reflect the well-known woes of the airline industry. However, the rally in global stockmarkets has seen the shares almost double from their March low.

BA has been doing the right things and will emerge from its cost-cutting drive a leaner, meaner, flying machine. But its shares are not cheap and, given the continued wariness of air travellers, are risky even for the long term.

2003 Citywire

Telegraph tips them for adventureous investors


Rod's cost cuts helping BA climb into brighter skies

Since Rod Eddington took the controls at British Airways in May 2000, he's had foot and mouth, September 11, a nosediving economy, the Iraq war and now Sars to contend with. He's had rotten luck, but has made the best of it, pushing through changes at BA that were long overdue.



By September, 13,000 jobs will have gone without a fight with the unions. Engineering, catering and airport costs keep coming down and the short-haul European network is being reorganised, with losses more than halved last year to 117m. Mr Eddington is confident of cutting more than the target 650m of annual costs by next March.

There's much more focus on cash too. Net debt is still too high at 5.15 billion, but BA did well to cut it by 1.15 billion last year. Capex has also rattled down, from 906m to 319m last year. In short, BA is in much better financial shape should Mr Eddington's luck ever change, even if fuel and pension costs are rising.

The airline still looks too much like an option on the US economy, dependent on the resumption of its highly profitable bankers' shuttle across the Atlantic. Yet, with each percentage point on fares per seat translating into about 60m profit, the slightest upturn will give BA a massive lift.

There's no sign of it yet and BA is not helped by the billion-dollar bungs that the Bush administration is giving to US airlines, which Mr Eddington is rightly cross about. But one day it will come. Merrill Lynch, joint house broker, expects 43m profit this year, rising to 215m next, though it is more bullish than some analysts. With the shares down 5.75 yesterday to 137.5p, that equates to a multiple of 39 times, falling to 10 times.

Forecasting is notoriously difficult and, with no dividend, the shares are very risky. Still, BA is a highly cyclical stock and could reward a small punt.

Citigroup's Smith Barney retained its 'outperform, speculative' rating on BA and 170 pence target price. "As expected, the outlook is poor for the entire industry, but BA's aggressive cost cutting ranks it ahead of competitors," the broker said in a note to clients. "We continue to believe that BA is the best play among the flag carriers on a return to more normal political, economic and medical (SARS) conditions."

Merrill Lynch repeated its 'buy' stance. In a note to clients the broker said the results are more likely to provide encouragement for the short-term bulls than the bears. It said anticipated downgrades (versus pre-war estimates) for the full year may be less than feared, pointing out the results contain no new layer of bad news.

Meanwhile, Cazenove and Williams de Broe also repeated 'buy' recommendations.

Weird but CSFB have raised their target from 60p to 100p (currently 127) with EBIT raised from 121 to 170 million but they remain at underperform .... hmmmmm



ains

Here comes the 100p again.

yes have shorted these well up on these i can see 80p poss on if it breaks the 1 mark

BA considers bid for Virgin Atlantic
By Edward Simpkins and Mary Fagan (Filed: 25/05/2003)


Rod Eddington, the chief executive of British Airways, has called a meeting this week of senior executives to consider a bid for Virgin Atlantic, the airline headed by Richard Branson.

Executives at BA say that any deal is likely to be some weeks away, but that the industry is ripe for consolidation and that BA's reduced debt, which now stands at 5bn, puts it in pole position to acquire weaker rivals.

Roger Maynard, BA's head of alliances and franchises who is also responsible for strategy, has been recalled from a trip to Australia to attend the meeting, after it emerged last week that Virgin has been in merger talks with BMI, the Midlands-based European carrier.

"Maynard and Eddington are going to sit down to decide what this means for BA," a BA official said last night. "BA is always in the business for slots at Heathrow, and of the two carriers Virgin Atlantic is the much more attractive for us."

However, any deal between BA and Virgin would be sure to run into regulatory difficulties, both from domestic and European competition authorities and from US regulators.

It has emerged that in January this year Virgin, in co-operation with Texas Pacific Group, the US private equity firm, looked at whether it should bid for British Airways.

However, Virgin, which was advised by Credit Suisse First Boston, decided that it would prefer to look at some form of co-operation or merger with BMI.

Will Whitehorn, a spokesman for Virgin Atlantic, said: "We came very close. We were very serious about BA, but we decided with our advisers that BMI was more interesting. We have no for sale sign up, we have an expansion sign up."

ainsoph

One for you, check my notepad thread, you will be pleased of the news on there.

IT

ains has been banned

Back in May this year the price was at or below 100p - been doing well
recently despite retiring Concorde, recent passenger figures not bad,
good times coming back for BAY? Looks promising....
Now all we need is the dividend re-instated please!