Tag: Fund (Page 4 of 4)

Passengers Stranded After Iceland’s WOW Air Collapses

March 28, 2019 / WIL BALDWIN

FILE PHOTO: Bikes by bike rental service of Icelandic airline WOW air are seen in Reykjavik — FILE PHOTO: Bikes by a bike rental service of Icelandic airline WOW air are seen in Reykjavik, Iceland, August 5, 2017. REUTERS/Michaela Rehle/File Photo

(Reuters) – Iceland’s WOW air became the latest budget airline casualty on Thursday, halting operations and cancelling all future flights after efforts to raise more funds failed.

WOW, which focussed on low-cost travel across the Atlantic, advised stranded travellers to seek flights with other airlines. It flew a total of 3.5 million passengers last year.

“This is probably the hardest thing I have ever done but the reality is that we have run out of time and have unfortunately not been able to secure the funding of the company,” WOW CEO and founder Skuli Mogensen wrote in a letter to the company’s 1,000 employees.

“I will never be able to forgive myself for not taking action sooner,” he added.

WOW had earlier postponed flights on Thursday as it entered what it had hoped were the final stages of an equity raising with a group of investors.

“My flight from Boston has been cancelled. Having a hard time getting through to anyone on the phone. Can you help me at all?” Twitter user Marc Solari wrote.

WOW replied with an apology and offer of further assistance.

WOW is the latest budget airline to collapse as the European airline sector grapples with over-capacity and high fuel costs. Recent failures include Britain’s Flybmi, Nordic budget airline Primera Air and Cypriot counterpart Cobalt.

“RESCUE FARES”

Other airlines including, Icelandair, Easyjet and Norwegian stepped in offering discounted ‘rescue fares’ to stranded passengers, according to the Icelandic Transport Authority

WOW has been pursuing different avenues to raise money over the past few months.

It ended talks with rival Icelandair last Sunday while veteran low-cost airline investor Bill Franke also had cancelled a proposed investment through private equity fund Indigo Partners.

Icelandair shares traded up 13 percent percent at 1215 GMT after the failure of a competitor.

Founded in 2011 by entrepreneur Mogensen, WOW used smaller single-aisle planes to fly between Iceland and many destinations in the United States and Europe.

Its website had advertised flights from London to cities such as New York and Boston for as little as 150 pounds, although the journey went via the Icelandic capital Reykjavik.

Norwegian Air has a little over half of the market share in the fast-growing, low-cost, long-haul transatlantic market, while WOW controlled a quarter in 2018.

There are fears of a knock-on effect on Iceland’s important tourism industry.

Around 30 percent of tourists visiting Iceland last year flew with WOW and the collapse could trigger a 16 percent drop in tourists this year, research from Icelandic bank Arion showed.

( By Stine Jacobsen and Tommy Lund; editing by Darren Schuettler/Keith Weir)

Barcelona, Spain – December 06, 2018: WOW Air Airbus A321 approaching to El Prat Airport in Barcelona, Spain.

How Wynn Resorts Could Free Up Billions in Cash

March 25, 2019 / WIL BALDWIN

One of the trends sweeping through the gaming industry over the past decade is selling real estate to real estate investment trusts (REITs). Sometimes companies control their REITs, like MGM Resorts (NYSE: MGM) does with MGM Growth Properties (NYSE: MGP) and Caesars Entertainment (NASDAQ: CZR) does with VIVI Properties(NYSE: VICI), and sometimes real estate is sold to third-party companies.

REITs free up cash for casino companies, often to the tune of billions of dollars. That money can help reduce debt or fund growth projects, which is attractive because it doesn’t fundamentally change a resort’s operations. But Wynn Resorts (NASDAQ: WYNN) has avoided the temptation to sell most of its real estate over the years. If it did, however, the company could free up billions of dollars in cash.

Wynn's Encore Boston Harbor. — Wynn’s Encore Boston Harbor.

Image source: Wynn Resorts.

Click the link below for the full story from “The Motley Fool”…

https://finance.yahoo.com/news/wynn-resorts-could-free-billions-163400237.html

Avianca Brasil to Sell Some Assets to Azul

March 11, 2019 / WIL BALDWIN

SAO PAULO, March 11 (Reuters) – Brazilian airline Azul SA said on Monday it intends to pay $105 million for certain assets held by Avianca Brasil, which was headed to court to face aircraft lessors as it seeks to keep operating planes despite mounting late payments.

Azul said the non-binding purchase agreement would involve 70 pairs of slots, which grant airlines the rights to operate regular flights between airports.

Azul already operates two Airbus A320 planes that were previously used by Avianca Brasil until they were repossessed in December due to outstanding payments. Under the agreement announced on Monday, Azul said it could end up operating up to 30 Airbus planes currently in use by its rival.

Azul did not disclose how it would be able to take over the leases and the airline did not immediately respond to a request for comment.

Avianca Brasil filed for bankruptcy protection in December in an attempt to stall aircraft lessors who had sued to repossess its fleet, two months after the carrier started missing payments on many of its aircraft.

The Avianca Brasil hearing scheduled for Monday in an appeals court will deal with a request from aircraft lessors, including Aircastle, that planes be repossessed as soon as possible, after a bankruptcy judge extended the airline’s control over the aircraft until at least April.

Since filing for bankruptcy, Avianca Brasil has secured a $75 million loan from hedge fund Elliot Management.

(Reporting by Marcelo Rochabrun and Ana Mano Editing by Chizu Nomiyama and Bill Trott)

Azul Linhas Aereas Embraer 195 at Curitiba Airport, Brazil

Avianca Brasil Looking for Additional Capital

January 23, 2019 / WIL BALDWIN

SAO PAULO, Jan 22 (Reuters) – Avianca Brasil, which filed for bankruptcy protection in December, is looking for a cash injection and has hired Brazilian consulting firm Galeazzi & Associados to help in talks with investors and creditors, the airline said.

Galeazzi’s executives are already visiting the carrier’s creditors to discuss options, a source said, asking for anonymity to disclose private talks. Reuters first reported the news of the Galeazzi hire, citing sources.

Avianca shareholders are discussing a potential cash injection with different investors, including hedge fund Elliott Management Corp, two sources said. Any investment now would need to happen within the bankruptcy protection process, likely in the form of debtor-in-possession financing.

Elliott and Galeazzi did not immediately reply to requests for comment.

Any capital injection or loan would need authorization from the bankruptcy judge.

Avianca is battling two of its main aircraft lessors, Aircastle Ltd and General Electric Co’s unit GE Capital Aviation Services, who have tried so far unsuccessfully to ground or repossess 40 percent of its fleet.

Avianca also said in the statement it continues to operate normally.

The escalating legal battle has added to the uncertainty surrounding Avianca Brasil’s ability to maintain its current flight schedule.

(Reporting by Tatiana Bautzer Editing by Susan Thomas and Alistair Bell)

Iceland’s WOW Air To Reduce Fleet, Cut Jobs

December 13, 2018 / WIL BALDWIN

COPENHAGEN (Reuters) – Icelandic low-cost carrier WOW air, which is in talks with U.S. private equity fund Indigo Partners about a potential investment, said on Thursday it would reduce its fleet to 11 aircraft from twenty and cut 111 jobs.

Indigo is managed by Bill Franke, the veteran U.S. low-cost airline investor, and has also made investments in U.S.-based Frontier Airlines, Mexico’s Volaris, Chilean carrier JetSmart and Hungary’s Wizz (WIZZ.L).

“After a challenging year, WOW air is now restructuring and simplifying its operations to return to its roots as a profitable ultra-low cost airline while discussions with Indigo Partners progress,” WOW Air said in a statement.

It said it was in negotiations with its lessors to return some of its aircraft including all Airbus A330s. Four Airbus A321s are being sold in a transaction that will improve its liquidity by more than $10 million, it said.

WOW Air will have around 1,000 employees after the job cuts, it said.

Indigo and WOW Air have not disclosed any details about their talks, but WOW Air has said that CEO and primary shareholder, Skuli Mogensen will remain a principal investor in WOW after the deal.

Icelandair (ICEAIR.IC) last month scrapped its plan to buy the privately-held airline.

(Reporting by Teis Jensen; Editing by Kirsten Donovan)

Image from http://wowair.us

Ryanair, CEO Suit Filed In U.S. Court

November 7, 2018 / WIL BALDWIN

NEW YORK (Reuters) – Ryanair Holdings Plc (RYA.I) and longtime Chief Executive Michael O’Leary have been sued in New York by a shareholder that said Europe’s largest airline defrauded investors and inflated its share price by overstating its ability to manage labour relations and keep costs down.

The complaint was filed on Tuesday night in the U.S. District Court in Manhattan by an Alabama pension fund, seeking class-action status and damages for investors in Ryanair’s American depositary shares from May 30, 2017 to Sept. 28, 2018.

Ryanair did not immediately respond on Wednesday to requests for comment.

The complaint said Ryanair misled investors in regulatory filings and conference calls about its labour stability, including “industry leading” contracts with pilots and cabin crews, and its positive impact on operations.

It said the truth came out as labour unrest forced the Dublin-based low-cost carrier last December to recognise unions for the first time, and led this summer to costly strikes that stranded thousands of passengers in several countries.

“Unbeknownst to investors, the company’s historical profit growth was built on an undisclosed and unsustainable foundation of worker exploitation and employee turnover,” the complaint said. “The decline in the price of Ryanair ADSs was the direct result of the nature and extent of defendants’ fraud finally being revealed to investors and the market.”

Ryanair cited labour issues on Oct. 1, when it cut its full-year profit forecast. Its share price closed that day more than one-third below its level in mid-March.

O’Leary, Ryanair’s chief executive since 1994, said last month he hoped to reach labour agreements with all of the carrier’s major unions before Christmas.

ADSs on June 30 accounted for 43.7 percent of Ryanair’s issued ordinary shares, assuming all were converted into ordinary shares, the company has said. Ryanair’s market value is roughly $16 billion, according to Refinitiv data.

The lawsuit was filed by the City of Birmingham Firemen’s and Policemen’s Supplemental Pension System. Its law firm Robbins Geller Rudman & Dowd specializes in securities fraud.

It is common for shareholders to sue companies in the United States after what they consider unexpected share price declines.

The case is City of Birmingham Firemen’s and Policemen’s Supplemental Pension System v Ryanair Holdings Plc, U.S. District Court, Southern District of New York, No. 18-10330.

(Reporting by Jonathan Stempel in New York; editing by Bill Berkrot)

American Airlines Donates $50,000 to Pittsburgh Community

October 30, 2018 / WIL BALDWIN

FORT WORTH, Texas – American Airlines is donating $25,000 to the Tree of Life Synagogue in Pittsburgh and $25,000 to the Jewish Federation of Greater Pittsburgh’s Our Victims of Terror Fund to support the community in the wake of Saturday’s shooting.

“We were devastated to learn about the senseless act of violence this weekend at the Tree of Life Synagogue,” said Chairman and CEO Doug Parker. “American has been serving the Pennsylvania community for nearly 80 years, and we want to do our part to ensure members of the synagogue and affected Pittsburghers have access to the resources they need to care for those impacted.”

The Jewish Federation of Greater Pittsburgh is the heart of Jewish Pittsburgh — the central fundraising, planning and organizing body of the Jewish community. It is committed to creating a thriving, vibrant, and engaged Jewish Community in Pittsburgh, in Israel, and around the world. Funds collected for Our Victims of Terror are ‍‌‌‌‌‌‌‌‌‌‍earmarked for psychological services, support for families, general services, reconstruction, additional security throughout the community, and medical bills for all those involved, as well as counseling and other services that may prove necessary in the future. In the Jewish Federation’s emergency campaigns such as this, 100 percent of the money raised will go directly to the cause.

“Despite this terrible tragedy, the outpouring of support from around the world has been truly heartwarming,” said Adam Hertzman, Director of Marketing for the Jewish Federation. “We are so grateful to American Airlines for joining so many people and organizations in reaching out to help the Pittsburgh community in our time of greatest need.”

American is committed to inclusion in the communities where we live and work, as well as nationally and globally. The airline began working with the Anti-Defamation League (ADL) in 2017 to fight hate, bias, and bigotry and build respect, understanding, and unity. ADL and American share the goals of creating safe and inclusive communities where being different is not a liability, and diversity is a cherished strength.

The company also supports the Dallas Holocaust Museum/Center for Education and Tolerance. Founded in 1984, the museum is dedicated to teaching the history of the Holocaust and advancing human rights to combat prejudice, hatred, and indifference.

American’s roots in Pennsylvania go back to 1939, when predecessor airline All American Airlines began operating in many small western Pennsylvania communities. Today, American proudly employs nearly 10,000 team members in Pennsylvania and operates 504 daily departures from eight cities across the state, 47 of which are from Pittsburgh.

About American Airlines Group
American Airlines and American Eagle offer an average of nearly 6,700 flights per day to nearly 350 destinations in more than 50 countries. American has hubs in Charlotte, Chicago, Dallas/Fort Worth, Los Angeles, Miami, New York, Philadelphia, Phoenix and Washington, D.C. American is a founding member of the oneworld® alliance, whose members serve more than 1,000 destinations with about 14,250 daily flights to over 150 countries. Shares of American Airlines Group Inc. trade on Nasdaq under the ticker symbol AAL. In 2015, its stock joined the S&P 500 index.

Image from pittsburghpa.gov