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IAG Ups Bet on Latin America with Air Europa Takeover

* Buys Air Europa for 1 bln euros

* To be funded by external debt

* Shares rise more than 2%

* To be run by Iberia CEO

* Regulators may set requirements -analysts

Nov 4 (Reuters) – IAG, the parent of British Airways and Spain’s Iberia, announced a 1 billion euro ($1.12 billion) takeover of Spain’s Air Europa to boost its presence on routes to Latin America and the Caribbean.

The deal follows a setback in Latin America for IAG after Chile’s Supreme Court ruled against a plan that would have allowed it to bolster cooperation with partners in the oneworld airlines alliance.

BA parent IAG ups bet on Latin America with Air Europa takeover
Ryanair Chief Executive Michael O’Leary attends a Reuters Newsmaker event in London

Chile’s LATAM Airlines in September then announced it planned to leave the alliance, opting instead for a tie-up with SkyTeam member Delta Air Lines.

IAG shares initially rose more than 2% following the Air Europa takeover announcement but some analysts said IAG may have to shed routes in order to win regulatory approval.

IAG shares were up 1.2% at 1315 GMT.

Ryanair CEO Michael O’Leary said his company will ask the UK’s market watchdog to force IAG to make divestments as part of its Air Europa takeover, a deal he said would be bad for competition.

“Potential remedies, perhaps in the form of slot release or behavioural restrictions, may be required and these could impact the potential synergies,” an analyst at Liberum wrote in a note.

IAG also owns carriers Iberia Express, Level, Ireland’s Aer Lingus and Vueling.

“We are not convinced that having just another brand platform is the optimal move, and could see it potentially combining with Level, Vueling or potentially Iberia Express after some time,” analysts at Bernstein said.

FILE PHOTO: An Air Europa-branded Boeing 737 MAX aircraft is seen grounded at a storage area in an aerial photo at Boeing Field in Seattle

Air Europa serves 69 destinations, including long-haul routes to the Americas and the Caribbean. It had a fleet of 66 aircraft at the end of 2018.

Air Europa’s Spanish parent company Globalia earlier this year received authorisation from the Brazilian government to explore the possibility of flying domestic routes within Latin America’s largest economy.

It is unclear if that authorisation will remain with Globalia or be transferred to IAG.

Air Europa will initially keep its brand and as it gets integrated into the existing hub at Madrid it will be a standalone operation run by Iberia boss Luis Gallego, IAG said.

It will also withdraw Air Europa from the SkyTeam alliance once the deal is completed. Air Europa has a joint venture with Air France-KLM.

“This is of strategic importance for the Madrid hub, which in recent years has lagged behind other European hubs,” said Gallego, adding that Madrid had the potential to serve as a gateway between Asia and Latin America.

IAG said it expected the Air Europa deal, which will be funded through external debt, to close in the second half of next year and for it to add to its earnings in the first full year after the closure.

($1 = 0.8951 euros) (Reporting by Yadarisa Shabong in Bengaluru; additional reporting by Andres Gonzalez in Madrid and Marcelo Rochabrun in Sao Paulo, editing by Patrick Graham and Jason Neely)

An Air Europa Boeing 737 airplane takes off at the airport in Palma de Mallorca

British Airways to Become First UK Airline to Offset Carbon Emissions on Flights

  • Airline announces plan to offset carbon emissions for all UK domestic flights from 2020
  • British Airways to invest in verified carbon reduction projects around the world
  • From 2020, British Airways’ carbon emissions on international flights will be capped through the United Nations’ carbon offsetting scheme
  • Announcement comes as parent company International Airlines Group (IAG) announces commitment to achieving net zero carbon emissions by 2050

From January 2020, British Airways will become the first UK airline to offset carbon emissions on all its flights within the UK. 

All customers flying within the UK next year on flights operated by British Airways will have the carbon emissions from their flights offset by the airline and invested in carbon reduction projects around the world*. These quality assured projects will include renewable energy, protection of rainforests and reforestation programmes.  

The airline operates up to 75 flights a day between London and 10 UK cities, including Manchester, Leeds, Newcastle, Isle of Man, Edinburgh, Glasgow, Aberdeen, Belfast City, Inverness and Jersey. British Airways’ domestic emissions total around 400,000 tonnes of C02 a year.

Today’s announcement comes as British Airways’ parent company, International Airlines Group (IAG), became the first airline group worldwide to commit to achieving net zero carbon emissions by 2050, contributing to both the UK Government’s commitment to a net zero carbon economy by 2050 and the United Nations’ objective to limit global warming to 1.5 degrees. IAG’s emissions’ goal will be achieved through numerous environmental initiatives, including investing more than US$400m in the development of sustainable aviation fuels over the next 20 years.

Alex Cruz, British Airways’ Chairman and Chief Executive, said: “British Airways is determined to play its part in reducing aviation’s CO2 emissions. To solve such a multi-faceted issue requires a multi-faceted response and this initiative further demonstrates our commitment to a sustainable future. It also follows our announcement to partner with renewable fuels company, Velocys, to build a facility which converts household and commercial waste into renewable sustainable jet fuel to power our fleet.”

While customers on UK domestic flights will not need to offset their emissions, those travelling further afield can also reduce their impact on the environment by using British Airways’ carbon offsetting tool. The carbon tool enables customers to calculate their emissions and then invest in carbon reduction projects including high quality forestry and renewable energy projects in Peru, Sudan and Cambodia**.

Using the tool, which can be accessed on https://www.pureleapfrog.org/ba/carbon_zero, a customer will pay around £1 to offset a return flight from London to Madrid, travelling in economy, while from London to New York in business class will cost around £15.***

Notes to Editors

* British Airways is investing in Verified Carbon Standard projects.

**British Airways’ offset scheme is operated through the airline’s partnership with not-for-profit organisation Pure Leapfrog. For more information on the carbon reduction projects, visit: https://www.pureleapfrog.org/ba

***While customers travelling on domestic flights’ carbon emissions are offset for them, customers flying outside of the UK can choose to pay to offset their emissions. Examples of pricing are shown below:

JourneyCost to offset
London to Madrid (economy)£ 1
London to New York (economy)£ 5
London to New York (business)£ 15
London to Los Angeles (economy)£ 8
London to Los Angeles (business)£ 24
London to Hong Kong (business)£ 26

Customers can find a link to the carbon calculator at https://www.pureleapfrog.org/ba/carbon_zero

First Royal Canadian Air Force C295 Shows Off its Final Livery

Seville, 8 October 2019 – The first Airbus C295, purchased by the Government of Canada for the Royal Canadian Air Force’s (RCAF) Fixed Wing Search and Rescue Aircraft Replacement (FWSAR) programme, rolled out of the paint shop showing off its final livery at the Airbus facility in Seville, Spain. The aircraft will now go through the final preparation phase before its delivery to the customer, planned to take place in Spain before the end of the year.

The photo above shows the first Canadian C295, to be designated CC-295 by the RCAF, in its distinctive Search and Rescue colours.

The aircraft adopts the yellow paint scheme following the tradition defined in the 1970s for Search and Rescue aircraft, giving high visibility for those in the air and on the ground.

FWSAR program facts and figures

The contract, awarded in December 2016, includes 16 C295 aircraft and all In-Service Support elements including, training and engineering services, the construction of a new Training Centre in Comox, British Columbia, and maintenance and support services.

The aircraft will be based where search and rescue squadrons are currently located: Comox, British Columbia; Winnipeg, Manitoba; Trenton, Ontario; and Greenwood, Nova Scotia.

Considerable progress has been made since the FWSAR programme was announced two and a half years ago: the first aircraft is due to be delivered in Spain in the coming months; another six aircraft are either completing flight tests or in various stages of final assembly; and seven simulators and training devices are starting up preliminary acceptance tests.

The first RCAF crews started training in late summer 2019 at Airbus’ International Training Centre in Seville, Spain.

For more information about the FWSAR program click here

Lufthansa, Deutsche Bahn Settle Air Cargo Dispute

German flag carrier Lufthansa and German national railway Deutsche Bahn have reached agreement on a long-festering dispute concerning an air cargo cartel.

The settlement was announced Aug. 26, although details are being kept confidential by mutual agreement.

The settlement ends a dispute before the Cologne regional court that has been ongoing since 2013.

Settling parties are DB Barnsdale, a wholly owned subsidiary of Deutsche Bahn, and Lufthansa Group member companies Lufthansa Cargo, Swiss International Air Lines and Deutsche Lufthansa.

Click the link for the full story! https://finance.yahoo.com/news/lufthansa-deutsche-bahn-settle-air-170533046.html

New Macau Leader Backed by Beijing

HONG KONG, Aug 25 (Reuters) – The Chinese territory of Macau elected former legislature head Ho Iat Seng as its leader on Sunday – the sole approved candidate.

Ho, who has deep ties to China, is expected to cement Beijing’s control over the special administrative region and distance it from protests in neighbouring Hong Kong.

He secured 392 votes from a 400-member pro-Beijing committee to lead the world’s largest gambling hub for at least the next five years, public broadcaster TDM reported.

The 62-year-old’s highly scripted appointment comes as the former Portuguese colony tries to position itself as a beacon of stability and model for the Chinese government’s “one country, two systems” formula through which Beijing administers Macau and Hong Kong.

Although anti-government protests have roiled the former British colony of Hong Kong for nearly three months, Macau has seen little dissent to Beijing’s rule.

Ho said local youth could resist the influence of Hong Kong’s protesters and support measures to boost patriotism in Macau.

(Reporting by Farah Master; Editing by Raju Gopalakrishnan)

British Airways Pilots to Strike for 3 Days in September

LONDON, Aug 23 (Reuters) – British Airways pilots are to go on strike for three days in September, their union said on Friday, in a dispute over pay that could disrupt the peak summer holiday season.

Last month, the pilots overwhelmingly voted for industrial action and the airline, which is part of IAG, failed in a court bid to stop them.

“The British Airline Pilots Association (BALPA) has today given notice to British Airways that it will call on its members to strike on 9th, 10th and 27th September 2019,” the union said in a statement.

“It is clear, following discussions with members over the last few days, that BA’s most recent offer will not gain the support of anywhere near a majority of its pilots.”

British Airways said the strike action was unjustifiable as their pay offer was fair and that the strikes would destroy the travel plans of tens of thousands of customers.

“We are now making changes to our schedule. We will do everything we can to get as many people away on their journeys as possible,” the airline said in a statement.

“However, it is likely that many of our customers will not be able to travel and we will be offering refunds and re-bookings for passengers booked on cancelled flights.”

The airline said it was exploring options to supplement its fleet with aircraft and crew from other airlines, known as wet-leasing, and working with partner airlines to schedule larger aircraft to take more customers.

(Reporting by Alistair Smout; editing by Stephen Addison)

British Airways Makes MULTI-MILLION POUND INVESTMENT IN MOBILE TECHNOLOGY FOR CABIN CREW IN DRIVE TO OFFER PERSONALISED CUSTOMER SERVICE

LONDON, UK: Cabin Crew using an iPhone XR on board a flight on 05 August 2019 (Picture by Nick Morrish/British Airways)
  • Every member of British Airways’ 15,000 cabin crew will receive an iPhone XR in latest phase of multi-million pounds investment in technology and training
  • New phones are part of initiative to empower cabin crew to deliver personalised customer service to customers
  • Investment comes after British Airways awarded prestigious Skytrax gong for Best Airline Staff in Europe

As part of British Airways’ £6.5bn investment for customers, the airline has announced that all of its 15,000 cabin crew will be issued with iPhone XRs to help them offer a more personalised service to the more than 45 million customers that travel with the airline every year. The investment for all cabin crew members follows a successful trial of iPads for senior cabin crew on board every flight. 

The new phones will be loaded with a selection of apps to help crew offer customers instant additional assistance during their journey. 

They will also have access to a range of customer information at their fingertips, including previous flights and meal preferences, enabling them to personalise every interaction. 

The investment is part of British Airways’ continued commitment to ensure customers receive the best customer service at every stage of their journey.

Bradley Smith, 27, one of the first cabin crew to receive a brand-new iPhone XRs says the phones are enabling a step-change in customer service: “Recently, when a customer realised that he had forgotten to order a special meal, he was really impressed when I quickly took out the phone, logged onto ba.com and ordered a meal for his return journey – all within a matter of minutes in the middle of the flight.

“It felt so rewarding to be able to immediately resolve the situation for the customer. All my crew reference guides are also loaded onto the phone, so everything I need is in my pocket throughout each flight; it really has made a huge difference already.”

Karen Slinger, British Airways’ Head of Inflight Customer Experience, said: “Our customers spend up to 14 hours with our cabin crew on a single flight and we know from the recent success at the Skytrax Awards that the care provided by our people has a huge impact on the overall customer experience and is what sets us apart from other airlines. This investment is about further empowering our crew and providing them with everything they need to deliver the very best service to our customers while in the air.” 

The rollout of these devices is the latest initiative to enhance customer service at British Airways. Earlier this year, the airline launched Help Me; a brand-new section of ba.com to help customers make changes to their bookings and find out more about their consumer rights if their journey doesn’t go to plan. The airline also announced a multi-million-pound investment in training for its staff based at Heathrow, with every agent now trained to help customers with a range of different queries and personally reach out to them at the airport using iPads loaded with a host of specialist apps.

British Airways is investing £6.5 billion to improve its customer experience over the next five years, including the installation of high-speed, industry-leading WiFi across the fleet, which will help cabin crew access the latest information for customers on their devices whilst in flight. The airline will also take delivery of 73 new aircraft, including 18 A350s, with four of the new aircraft joining the fleet before the end of the year.

British Airways Sale, a Pair of Club World Seats From £2019

Today British Airways has launched a sale offering a pair of Club World (business class) seats from just £2019 return.

There are a range of destinations available for £2019 return for two, including top US destinations such as New York, Miami, Las Vegas, New Orleans, Philadelphia, Washington and Dallas. Further afield the £2019 fare for two will take travellers to Dubai and Abu Dhabi.

Other destinations are available for marginally more including Beijing, Hong Kong and Bangkok for £2998, Mumbai, Chennai, Lagos and Abuja for £2999, Antigua for £2305, Barbados for £2332 return and Toronto for £2399.

BA Holidays deals are also available, including:

  • Dubai: Club World flights plus three nights at a 4* hotel from £1069 per person
  • New York: Club World flights plus three nights at a 4* hotel from £1199 per person
  • Las Vegas: Club World flights plus three nights at a 4* hotel from £1149 per person
  • Dominican Republic: Club World flights plus seven nights all-inclusive at a 4* hotel from just £1359 per person

And there are deals to be had in other cabins too with two First class seats to New York and Miami respectively available from £3019.

Members of the airline’s Executive Club will benefit by saving with Avios part payment, securing the same £2019 deal for two people travelling together in Club World by paying just £619 return and 261,000 Avios.

Travel is for selected dates between August 13 and September 30, 2019 and customers need to book by August 19.

To book please visit ba.com/luxury-offers.

Ends August 12, 2019

Notes to editors:

  • Full terms and conditions can be found at ba.com/luxury-offers.
  • The sale runs between 12pm today, August 12, 2019 and 11.59pm on August 19, 2019.
  • Flights and holidays are subject to availability.

British Airways Takes Delivery of its First A350-1000

British Airways (BA) has taken delivery of its first A350-1000 at Airbus headquarters in Toulouse, France, making it the first operator of the larger A350-1000 in International Airlines Group (IAG). In total, BA has ordered 18 A350-1000’s. Iberia, which is also part of IAG, already operates five of the smaller A350-900’s.

BA’s A350 XWB with its modern and comfortable Airspace cabin will usher in new levels of comfort with the launch of the Club Suite, the first new business class seat for British Airways in 13 years. The airline’s sophisticated and newly-branded “Club Suite” offers direct-aisle access, a suite door for greater privacy and luxurious flat-bed seats in a 1-2-1 configuration.

The three-class layout includes 56 Club Suites, 56 World Traveller Plus and 219 World Traveller economy seats.

BA, celebrating its 100th anniversary, will initially use the aircraft to fly between London and Madrid prior to flying long-haul routes from September.

BA operates a fleet of over 150 Airbus aircraft from the smallest A318 to the largest A380.

The A350 XWB offers by design unrivalled operational flexibility and efficiency for all market segments up to ultra-long haul (15,000 km). It features the latest aerodynamic design, a carbon fibre fuselage and wings, plus new fuel-efficient Rolls-Royce engines. Together, these latest technologies translate into unrivalled levels of operational efficiency, with a 25% reduction in fuel burn and emissions. The A350 XWB’s Airspace by Airbus cabin is the quietest of any twin-aisle and offers passengers and crews the most modern in-flight products for the most comfortable flying experience.

At the end of June 2019, the A350 XWB Family had received 893 firm orders from 51 customers worldwide, making it one of the most successful wide-body aircraft ever.

British Airways Suspends Flights to Cairo for Seven Days

CAIRO, July 20 (Reuters) – British Airways and Lufthansa abruptly suspended flights to Cairo from Saturday over security concerns, but giving no details about what may have prompted the move.

“We constantly review our security arrangements at all our airports around the world, and have suspended flights to Cairo for seven days as a precaution to allow for further assessment,” British Airways said in a statement.

Lufthansa later said it had cancelled its flights to Cairo on Saturday from Munich and Frankfurt and will resume its flights on Sunday

British Airways, a unit of IAG, also said that it would never operate an aircraft unless it was safe to do so. When asked for more details about why flights had been suspended and what security arrangements the airline was reviewing, a spokeswoman responded: “We never discuss matters of security.”

Three Egyptian airport security sources told Reuters that British staff had been checking security at Cairo airport on Wednesday and Thursday. They gave no further details.

The British Foreign Office updated its travel advisory on Saturday to add a reference to the British Airways’ suspension, advising travellers affected to contact the airline.

Egypt’s Ministry of Civil Aviation said in a statement late on Saturday that it had contacted the British Embassy in Cairo which had confirmed that the decision to suspend the flights was not issued by Britain’s transport or foreign ministries.

The Egyptian ministry added that it will add more flights from Cairo to London starting on Sunday “to facilitate transporting passengers during this period.”

The British government has long advised against all but essential travel by air to and from the Egyptian resort of Sharm el-Sheikh, where a Russian passenger jet was bombed in 2015, but has not issued similar warnings against air travel to and from Cairo.

“There’s a heightened risk of terrorism against aviation. Additional security measures are in place for flights departing from Egypt to the UK,” the British advisory says.

Tourism, a key source of foreign revenue for Egypt, has been recovering after tourist numbers dropped in the wake of a 2011 uprising and the 2015 bombing of the Russian jet, which killed all 224 people on board shortly after takeoff.

That attack, which was claimed by Islamic State, prompted Russia to halt all flights to Egypt for several years and a number of countries including Britain to cease flights to Sharm el Sheikh, which have yet to resume.

(Reporting by Lena Masri and Amina Ismail; editing by Peter Graff, Diane Craft and G Crosse)

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