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".

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!?