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".

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