DOCSLIB.ORG

Q3 2014 Roadshow

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Q3 2014 Roadshow Q3 / 9M 2014 Lufthansa Group Roadshow Presentation Page 1 ¾ The Lufthansa Group: World's largest aviation group with leading airlines and aviation services Hub airlines to improve profitability at current size; P2P airlines and services to grow ¾ Implementing Our Way Forward through seven areas of action Measures to overcome existing challenges and increase profitability underway ¾ Financials & outlook Solid Q3 results, FY14 target on track, significant improvement expected for FY15 ¾ Lufthansa Passenger Airlines is the core of the Group Fleet optimization, unit cost reduction and improvement of revenue quality Page 2 The Lufthansa Group is the largest aviation group in the world Strong global market position but facing multiple challenges Our strengths Our challenges Compete with low-cost and Gulf World’s largest aviation group carriers while securing strong with >30 bn EUR in revenue market position Lower unit costs and offset cost Europe’s largest passenger inflation and possible network with strong brands yield pressure Global leader in MRO and Lufthansa 5 STAR Become quality leader and innovation driver again airline catering Group Leading positions in air cargo Execute faster, use of group and airline IT as well as other synergies better and explore aviation services potential of service companies Strong financials: constant FCF Reach higher profitability and generation, investment grade strengthen return on capital focus rating, dividend payments Page 3 A unique portfolio of airlines and aviation service companies Service companies sustainably contribute c. 500 m EUR operating profit p.a. Revenue Operating result Op. margin range Airlines 23.5 bn 495 m +4.8% Passenger Airline Group 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 -0.1% 77 m 2.4 bn +11.4% Logistics (Cargo) 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 -8.0% Service Companies 4.2 bn 404 m +10.9% MRO 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 +6.9% 2.5 bn 105 m +4.3% non-airline profits Catering 2009 2010 2011 2012 2013 of c. 500 m EUR 2009 2010 2011 2012 2013 +3.1% 0.6 bn 36 m +6.2% IT Services 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 +1.8% -420 m Others incl. Group Functions (burdened by restructuring costs) 2009 2010 2011 2012 2013 Page 4 Our success is based on optimizing all three pillars of our Group Focus on profitability improvement for hubs, growth in P2P and Services Lufthansa Aviation Group - Key Advantages Integrated Value Chain Financial Stability Strong Brand Family Favoured Employer Deep Customer Insights Natural Hedging Hubs Point-to-Point Aviation Services 2013 2020 2013 2020 2013 2020 Revenue Share 70% 60% Revenue Share 6% Revenue Share 24% Profit Margin 3%1) Profit Margin - Profit Margin 7%1) Improve Profit Redesign & Grow Sustain Margin & Grow 1) excl. germanwings and consolidation effects Page 5 Growth in airlines is focussed on P2P platforms One out of six aircraft will be on a lower unit cost platform Network Carriers Short-haul New P2P-Platforms 23 A320 ex GER starting 2015 c. 60 A320 ex GER c. 350* in full swing in 2015 LH Passenger 7 A330 14 A340 ex GER LH Passenger starting 2015 c. 90 SWISS aircraft c. 75 Austrian Airlines aircraft Long-haul * Lufthansa Passenger Airlines incl. regional partners, excl. germanwings, eurowings Page 6 Service companies have attractive global growth opportunities Extending business models geographically and into adjacent markets Grow APAC, MidEast, North America revenue International expansions and Extension of Joint Venture with Air China new partnerships (MoU signed in 2014) Joint Venture with McKinsey Grow global catering network via JVs, acquisitions and new sites International expansion and Assess opportunities in adjacent markets, e.g. train catering exploring adjacent markets Margin improvement from restructuring underperforming parts of the network Attract new partner companies also from Extend business models to non-travel industries Enhance attractiveness for "less frequent" fliers adjacent customer segments Implement dedicated mileage program for point-to-point platforms Page 7 ¾ The Lufthansa Group: World's largest aviation group with leading airlines and aviation services Hub airlines to improve profitability at current size; P2P airlines and services to grow ¾ Implementing Our Way Forward through seven areas of action Measures to overcome existing challenges and increase profitability underway ¾ Financials & outlook Solid Q3 results, FY14 target on track, significant improvement expected for FY15 ¾ Lufthansa Passenger Airlines is the core of the Group Fleet optimization, unit cost reduction and improvement of revenue quality Page 8 Our Way Forward: Seven areas of action to implement our strategy Lufthansa Group is tackling the challenges ahead Customer New concepts centricity & for growth quality focus Constantly Innovation & improving digitalization efficiency Value based Effective & lean steering organization Culture & leadership Page 9 Constantly improving efficiency Pipeline approach to continuous profit improvement SCORE concept to be maintained beyond 2015 program generated gross measures targeting minimum gross measures of >3 bn EUR of ca. 700 m EUR p.a (during program timeframe 2012-2015) (to compensate 2% cost inflation and 1% yield decline) 1,170 1,200 926 >700 >700 >700 >700 >700 618 926 971 618 2012 2013 2014 2015 2016 2017 2018 2019 … measures P&L effective measures in implementation further measures targeted Status: October 2014 Page 10 Effective & lean organization Structural change goes beyond mere optimization Recent example: Cost savings via outsourcing of IT Infrastructure Airline Solutions: Industry Solutions: IT Infrastructure ¾ One-time charge in 2014 Airline IT Professional of c. 240 m EUR in IFRS and HGB Services net results (non-operating) ¾ Average savings of 70 m EUR p.a. in IT costs for LH Group from 2015 Equal revenue split of three Lufthansa Systems divisions ¾ Integration into international IT 9 Growth potential in 9 Successful ȋ Lack of scale of in Group secures jobs and increases international system integrator business prospects for employees airline market in automotive, dominated by large ¾ transport & logistics providers Transformation to be completed 9 Chances triggered in Q2 2015 by digital 9 Growth of process ȋ Cloud services and transformation consulting and offshoring increase and services Big Data pressure on prices Page 11 Constantly improving efficiency Labour deals to support change in core business Consensual agreements except of open issues with VC & Swiss pilot unions Preliminary agreement with cabin personnel Agreement with flight crews 9 -20% costs for 14 Lufthansa A340s 9 New terms effective as of Dec 2014 9 Move from DB to DC pension scheme 9 Reduced salary levels vs. today 9 Productivity increased o Open agreement with pilot union (VC) 9 Employees move to "new" Austrian: Reintegration of operations from Tyrolean Airways into legal unit Austrian Airlines AG as of March 2015 New CLA to be negotiated with pilot unions 9 Legal stability: withdrawal of lawsuits from union and workers' councils 9 Pilot union IPG agreed on new CLA 9 One-time payments for staff leaving the effective since July 2014 company o Aeropers rejected new CLA; 9 No further negative p&l impact after Q3 2014 Existing agreement cancelled per Nov 16 Page 12 Constantly improving efficiency Restructuring of non-hub stations in progress Move to more efficient structures Stations to be restructured Starting point 䖃 HAM Transfer of LH direct services to 䖃 BRE germanwings 䖃 HAJ 䖃 BER 䖃 DUS ǻ 50-60% Handling providers in Germany 䖃 CGN produce services at approx. 50-60% lower costs than LH Non-hub Handling 䖃 NUE stations services 䖃 STR Objective C. 1,500 employees Operational tasks at stations Stations transferred in up to eight separate legal entities (check-in, handling, lounges etc.) Better cost structure and more flexibility in new setup Page 13 Innovation and digitalization Standing out through innovation and digitization Driving business through systematic approach to innovation Strengthen internal innovation culture by creating “Innovation Hub” company in Berlin a new Group Innovation Unit to get close to the world of start-ups and the digital technology scene Establish “innovation budget” to expedite the development of innovative products and ideas Close collaborations and partnerships with Silicon Valley companies Consistently promote existing innovative projects within the Lufthansa Group (Lufthansa Use potential of some 300,000 passengers a day to Technik Innovation Fund, eCargo, Board Connect, develop new products and services with partners SMILE and similar) Page 14 Value based steering Commitment to value creation New return on capital measures and dividend policy to be presented shortly Strong track record in value creation New KPIs to be introduced 2000 2014 2015 CVA (cash value added) concept New return on capital KPI introduced in 1999 to be introduced in late 2014 Positive CVA generation: Objective: Enhanced transparency, standard KPI cumulated CVA of > 6 bn EUR (e.g. ROCE), easier for capital allocation and Capital in last 14 years operational steering Return on Regular dividend payments New dividend policy 30-40% of operating result to be introduced in late 2014 Dividends paid in 11 of 15 years Objective: Continue regular dividend payments, Cumulated dividends of 5.95 EUR adjust for non-cash profit effects from change Dividends in new depreciation policy Historical dividend payments in EUR 1.25 0.70
Load more

Recommended publications
  • 2012 Investor Day Setting the Scene Transform 2015
    2012 Investor Day Setting the scene Transform 2015 Setting targets Net debt January 2012 Cost reduction Implementing immediate measures Capacity 2012 and beyond Capex Cost reduction Securing structural cost reductions New labor agreements From 2013 Industrial projects Initiating a new revenue dynamic From 2013 2012 Investor Day 3 Transform 2015: end 2014 objectives Reduction in net debt: €2bn Reduction in unit costs*:10% Renegotiation of collective agreements Limited capacity growth Medium-haul restructuring Investment plan revised down Cargo turnaround Cost-saving measures Improvement in long-haul and maintenance profitability * Unit cost per EASK ex fuel 2012 Investor Day 4 Our overarching target: deleveraging the balance sheet 6.5 6.1 6.1 5.6 € billions 4.4 4.4 4.5 3.8 Net debt 2.7 March March March March March Dec Dec Dec Dec Dec Dec Dec Dec 2005 2006 2007 2008 2009 2009 2010 2011 2012 2013 2014 2015 2016 Net debt/ 2.6 0.9 4.8 <2 EBITDA 3.0 3.0 2.7 2.2 1.6 1.7 1.3 EBITDA 0.4 (last twelve months) March March March March March Dec Dec Dec Dec Dec Dec Dec Dec 2005 2006 2007 2008 2009 2009 2010 2011 2012 2013 2014 2015 2016 2012 Investor Day 5 Improvement in operating cash flows the primary source of net debt reduction Capex adjusted to cash generation Limit sale and lease-back operations Less than €100m per year planned for 2013, 2014 and beyond Focus on cost reduction rather than asset disposals Hedging operation on 1/3 of remaining Amadeus stake (7.5%) within framework of our risk management strategy 2012 Investor Day 6
    [Show full text]
  • New Expanded Joint Venture
    Press Release The Power of Choice for Cargo Customers as Air France-KLM, Delta and Virgin Atlantic launch trans-Atlantic Joint Venture AMSTERDAM/PARIS, ATLANTA and LONDON: February 3rd, 2020 – Air France-KLM Cargo, Delta Air Lines Cargo and Virgin Atlantic Cargo are promising cargo customers more connections, greater shipment routing flexibility, improved trucking options, aligned services and innovative digital solutions with the launch of their expanded trans-Atlantic Joint Venture (JV). The new partnership, which represents 23% of total trans-Atlantic cargo capacity or more than 600,000 tonnes annually, will enable the airlines to offer the best-ever customer experience, and a combined network of up to 341 peak daily trans-Atlantic services – a choice of 110 nonstop routes with onward connections to 238 cities in North America, 98 in Continental Europe and 16 in the U.K. More choice and convenience for customers Customers will be able to leverage an enhanced network built around the airlines’ hubs in Amsterdam, Atlanta, Boston, Detroit, London Heathrow, Los Angeles, Minneapolis, New York-JFK, Paris, Seattle and Salt Lake City. It creates convenient nonstop or one-stop connections to every corner of North America, Europe and the U.K., giving customers the added confidence of delivery schedules being met by a wide choice of options. The expanded JV enables greater co-operation between the airlines, focused on delivering world class customer service and reliability on both sides of the Atlantic achieved through co-located facilities, joint trucking options as well as seamless bookings and connected service recovery. The airlines already co-locate at warehouses in key U.S., U.K.
    [Show full text]
  • Wyoming Aeronautics Commission Air Service Enhancement Program and Capacity Purchase Agreement Annual Report - Revised
    Wyoming Aeronautics Commission Air Service Enhancement Program and Capacity Purchase Agreement Annual Report - Revised Wyoming Department of Transportation Aeronautics Division September 27, 2019 Shawn Burke Analyst, Air Service Development [email protected] Executive Summary 2018 marked a record year for passenger traffic in the state as the state’s busiest airport, Jackson Hole, grew more than 10% year over year. Not all Wyoming airports, however, are sharing in the same success. Against the continuing backdrop of a regional pilot shortage, increasing competition for air service, and changing airline industry economics, challenges remain to maintain and grow air service to Wyoming airports into the future. The passage of the Commercial Air Service Improvement Act and subsequent contract award will make significant progress towards stabilizing air service for the most at- risk communities in the state while providing a hedge against industry head winds. Recent Industry Shifts that Benefit Wyoming Strategic shifts in the airline industry during 2018 have provided Wyoming a window of opportunity to enhance its air service. Airlines, in particular United Airlines, have shifted to significantly growing domestic markets and utilizing more regional jet aircraft in smaller markets. United Airlines grew more in 2018 than the entire size of some smaller carriers—adding more than 100,000 flights to their network. Markets formerly served by 19 to 30 seat aircraft, such as those in Wyoming, are now seeing 50-seat jet aircraft alongside record traffic levels at their airports. United has shown significant interest in growing their Denver operation, which grew almost 10% from 2017. Another key to United’s growth into smaller domestic markets has been the retention and acquisition of used 50-seat aircraft, which have largely fallen out of favor at other airlines.
    [Show full text]
  • Brand and Marketing As a Competitive Advantage
    5 MAY 2017 ASX: QAN US OTC: QABSY New Group Image Positioning the Qantas Group for Growth and Sustainable Returns Alan Joyce, CEO Qantas Group QANTAS GROUP OVERVIEW The Long-term Outlook for Global Passenger Growth Remains Robust Global airline profit1 in 2017 and 20-year passenger2 forecasts Europe Middle East North America 2017 profit: $5.6b 2017 profit: $0.3b 2017 profit: $18.1b Passenger Growth: Passenger Growth: Passenger Growth: +2.5% +4.8% Asia Pacific +2.8% Total Passengers Total Passengers 2017 profit: $6.3b Total Passengers in 2035: 1.5b in 2035: 0.41b Passenger Growth: in 2035: 1.3b +4.7% Total Passengers in 2035: 3.1b Latin America Africa 2017 profit: $0.2b 2017 profit: -$0.8b Passenger Growth: Passenger Growth: +3.8% +5.1% Total Passengers Total Passengers in 2035: 0.66b in 2035: 0.3b 1. IATA, ‘Another Strong Year for Airline Profits in 2017’, 8 December 2016. Net post tax profits in USD. 2. IATA, ‘IATA Forecasts Passenger Demand to Double Over 20 Years’, 18 October 2016. Annual forecast growth refers to average annual growth. 3 QANTAS GROUP OVERVIEW The Qantas Group has Unique Competitive Advantages that Set Us Apart $ Dual Brand Strategy to Structurally Advantaged Innovative Loyalty Positioned in Asia with Reputation for Operational Segment and Grow Markets Domestic Position Business with Valuable Premier Airline Partnerships and Safety Excellence, Data Insights Iconic Australian Brand 4 QANTAS GROUP OVERVIEW Providing a More Stable Earnings Base and Supporting Growth Group Earnings Profile1 Two highest-margin carriers operating in Australia Group Generating >80% of domestic profit pool from <2/3 capacity share International2 $ Continued Loyalty earnings growth Group Domestic & Loyalty Restructured Group International network with >50% capacity to Asia Strong licence to operate, highly trusted brand that supports diversification Integrated Group portfolio delivers majority of earnings from stable, advantaged Domestic Airlines and Loyalty 1.
    [Show full text]
  • United Airlines / United Express Reciprocal Jumpseat
    Updated July 22, 2020 United Airlines / United Express Reciprocal Jumpseat Frequently Asked Questions What’s changing? Starting June 1, 2020, jumpseat-qualified United (UA) and United Express (UAX) employees in Dispatch, Flight Operations and Inflight Services will be able to electronically self-list for a qualifying jumpseat in employeeRES. UAX carriers include: Air Wisconsin, CommutAir, ExpressJet, GoJet, Mesa Airlines, Republic Airlines, and *SkyWest Airlines (*Flight Operations and Dispatch only). • UA employees will be able self-list for UAX flights within the 50 United States and can continue to self-list for mainline UA flights worldwide. • UAX employees will be able to self-list for UA/UAX flights operating only within the 50 United States. employeeRES will verify jumpseat eligibility and priority during the listing process, which will be reflected in Aero, the system used by customer service representatives (CSRs) at airports, after check in. What’s not changing? UA and UAX employees from Dispatch, Flight Operations and Inflight Services and UA Inflight- qualified management will still be able to list for a jumpseat at the gate with a CSR. Employees with controlled jumpseat privileges, including maintenance groups and select management employees, cannot self-list in employeeRES or with a gate CSR, and must follow established processes to receive authorization for a jumpseat. Why are we making this change? Being able to self-list in employeeRES frees up time for CSRs at gates allowing them more time to complete critical tasks before departure and focus on delivering caring service to our customers. Improved automation in Aero also allows CSRs working the gates to accurately see flight deck and cabin jumpseat availability.
    [Show full text]
  • Punctuality League
    Published: January 2015 2014 Punctuality League On-time performance results for airlines and airports © 2015 OAG Aviation Worldwide Limited. All rights reserved OAG Punctuality League – Annual on-time performance results for airlines and airports Usage and attribution This information can be reproduced either in whole or in part, online or in print, for non-commercial purposes only but must include attribution to OAG and a link to www.oag.com. Disclaimer The intended recipient (“The Customer”) acknowledges that all data provided by or available through OAG is owned either by OAG Aviation Worldwide Ltd or by a third party provider (“The Owners”) and that the customer shall not acquire any ownership or interest in such data. OAG data is solely for the benefit and purposes of the intended recipient and may not be disclosed to, used by or copied by anyone other than the intended recipient. OAG Aviation Worldwide Ltd has used reasonable efforts in collecting and preparing data in the report but cannot and does not warrant that the information contained in this report is complete or accurate. OAG Aviation Worldwide Ltd hereby disclaims liability to any person for any loss or damage caused by errors or omissions in this report. 2 © 2015 OAG Aviation Worldwide Limited. All rights reserved Contents Foreword 5 Overview 6 Categories and Criteria 6 Airports: Small Category – <10m seats per annum 8 Airports: Medium Category – 10-20m seats per annum 10 Airports: Large Category – >20m seats per annum 12 Top Airlines: All 14 Top Airlines: Mainline Category
    [Show full text]
  • Delta Air Lines: a Financial Analysis and Corresponding Recommendations for Delta Air Lines, Inc
    University of Mississippi eGrove Honors College (Sally McDonnell Barksdale Honors Theses Honors College) 2016 Delta Air Lines: A Financial Analysis and Corresponding Recommendations for Delta Air Lines, Inc. Emily Bush University of Mississippi. Sally McDonnell Barksdale Honors College Follow this and additional works at: https://egrove.olemiss.edu/hon_thesis Part of the Accounting Commons Recommended Citation Bush, Emily, "Delta Air Lines: A Financial Analysis and Corresponding Recommendations for Delta Air Lines, Inc." (2016). Honors Theses. 300. https://egrove.olemiss.edu/hon_thesis/300 This Undergraduate Thesis is brought to you for free and open access by the Honors College (Sally McDonnell Barksdale Honors College) at eGrove. It has been accepted for inclusion in Honors Theses by an authorized administrator of eGrove. For more information, please contact [email protected]. Delta Air Lines: A Financial Analysis and Corresponding Recommendations for Delta Air Lines, Inc. by Emily Marie Bush A thesis submitted to the faculty of The University of Mississippi in partial fulfillment of the requirements of the Sally McDonnell Barksdale Honors College. Oxford May 2016 Approved by: ___________________________________ Advisor: Professor Victoria Dickinson © 2016 Emily Bush ALL RIGHTS RESERVED ii ABSTRACT Delta Air Lines: A Financial Analysis and Corresponding Recommendations for Delta Air Lines, Inc. This alternative thesis project is a financial analysis of Delta Air Lines, Inc. Utilizing the 10-K Financial Statements from 2009 to 2013, along with some correlating outside resources, a full business and financial analysis was completed. Starting with the business background and operations, and then working into analysis of the Financial Statements, corresponding recommendations were created for tax, audit and advisory planning strategies.
    [Show full text]
  • Titel Der Präsentation
    Lufthansa Group Conference & Roadshow Presentation March / April 2016 Disclaimer in respect of forward-looking statements Information published in this presentation concerning the future development of the Lufthansa Group and its subsidiaries consists purely of forecasts and assessments and not of definitive historical facts. These forward-looking statements are based on all discernible information, facts and expectations available at the time. They can, therefore, only claim validity up to the date of their publication. Since forward-looking statements are by their nature subject to uncertainties and imponderable risk factors – such as changes in underlying economic conditions – and rest on assumptions that may not occur, or may occur differently, it is possible that the Group’s actual results and development may differ materially from the forecasts. Lufthansa makes a point of checking and updating the information it publishes. However, the Company is under no obligation to update forward-looking statements or adapt them to subsequent events or developments. Accordingly, it neither explicitly nor implicitly accepts liability, nor gives any guarantee for the actuality, accuracy or completeness of this data and information. Page 2 The Lufthansa Group is based on three strong pillars - Synergetic portfolio of premium hub airlines, profitably growing P2P airlines and high margin aviation services - New organizational structure to create efficiencies and to help implementing seven fields of action The Lufthansa Group benefits from a sound financial setup - Strong balance sheet, investment grade rating, sustainable free cash flow generation - Clear and consistent dividend policy with industry leading pay-out ratio The Lufthansa Group has good FY15 results - Passenger airlines drive results improvement; improvements at MRO and Catering; Logistics below PY - Adj.
    [Show full text]
  • Jetblue Airways
    MARKETING JETBLUE AIRWAYS ter earnings call on 26 April that for Mint was especially crucial on Mint has continued to exceed all of the US west coast, where JetBlue the airline’s expectations. is not as well known as some of its “In the last 12 months, both peers. JetBlue’s average Mint cus- New York to Los Angeles and San tomer flies once every four to six Francisco produced double-digit weeks. Strong consistent sales in unit revenue growth every single Mint have helped to keep fares month,” says Hayes. low, says Perry. The airline itself had underes- “Not only did they do Mint, timated how successful Mint they branded their fares, which would be. “We created something means they took product away that had a disruptive effect,” says from customers but it still went JetBlue Perry. “You don’t want to be positively,” said a panel judge. overconfident but we underesti- Despite billing Mint as a pre- “People would go to hen JetBlue Airways mated the significant impact.” mium product, the airline says parties and be told introduced a US trans- Given the results produced by Mint is never intended to repli- Wcontinental premium Mint, it might surprise the indus- cate the premium cabins on its they’ve got to fly this product – dubbed Mint – in mid- try to hear that the airline had not rivals that are usually flown by new product” 2014, the airline industry looked devoted a lot of time to what business travellers who work for askance at the carrier. What were Perry calls “traditional” market- major corporations.
    [Show full text]
  • Delta Airlines: a Strategic Analysis
    Merrimack College Merrimack ScholarWorks Honors Senior Capstone Projects Honors Program Spring 2018 Delta Airlines: A Strategic Analysis Erin McKenna Merrimack College, [email protected] Follow this and additional works at: https://scholarworks.merrimack.edu/honors_capstones Part of the Business Analytics Commons Recommended Citation McKenna, Erin, "Delta Airlines: A Strategic Analysis" (2018). Honors Senior Capstone Projects. 32. https://scholarworks.merrimack.edu/honors_capstones/32 This Capstone - Open Access is brought to you for free and open access by the Honors Program at Merrimack ScholarWorks. It has been accepted for inclusion in Honors Senior Capstone Projects by an authorized administrator of Merrimack ScholarWorks. For more information, please contact [email protected]. BUS 4402W STRATEGIC ANALYSIS AND DECISION MAKING SECTION E Honors Capstone Part 1 Erin McKenna I,Erin McKenna, acknowledge that I have adhered to the Academic Integrity Policy described in the Merrimack College student handbook. October 3rd 2017 1. Introduction This report will look at the Fortune 500 company Delta Air Lines. This report will look Delta Air Lines’ strategy as well as an external analysis of the different factors in the industry. Although Delta Airlines is in two different industries, airline and refinery, this report will focus specifically on their position in the airline industry.The purpose of this report is to see where Delta Airlines stands in the Airline Industry and whether or not their strategy is effective. I will be using many different sources in this report with the majority of the information coming from Bloomberg and Delta’s company website. This report will use a variety of different models, graphs, and other analytical tools in order to examine the industry.
    [Show full text]
  • Binding Agreement for Bmi Purchase
    BINDING AGREEMENT FOR BMI PURCHASE Following the announcement on November 4, 2011, International Airlines Group (IAG) and Deutsche Lufthansa AG (Lufthansa) have today reached a binding agreement for IAG to acquire British Midland Limited (bmi). The cost is £172.5 million in cash though the price is subject to significant reductions. bmi consists of three distinct business units – bmi mainline, bmi regional and bmibaby. Transaction highlights: Acquisition of bmi for £172.5million in cash IAG’s Heathrow slot portfolio to increase by up to 56 additional daily slot pairs Lufthansa to take on bmi’s defined benefit pension scheme Lufthansa has the option to sell bmi regional and bmibaby before completion Significant price reduction if Lufthansa does not opt to sell bmibaby before completion Deal subject to competition clearance Earnings per share (EPS) accretive by 2014 at the latest 2015 operating profit target of €1.5 billion to increase by more than €100 million with consequent increase in EPS Underpins goal of 12 per cent return on capital employed by 2015 Restructuring costs spread over three years and significantly lower in total than bmi’s current annual losses Willie Walsh, IAG chief executive, said: “Buying bmi’s mainline business gives IAG a unique opportunity to grow at Heathrow, one of our key hub airports. Using the slot portfolio more efficiently provides the option to launch new longhaul routes to key trading nations while supporting our broad domestic and shorthaul network. “This deal is good news for the UK as we will maintain a comprehensive domestic schedule including Belfast. Our plans to expand our longhaul network would guarantee growth by making Britain better able to compete on a global scale.
    [Show full text]
  • American Airlines
    AMERICAN AIRLINES FLIGHT ATTENDANT AGREEMENT Between AMERICAN AIRLINES, INC. and THE ASSOCIATION OF PROFESSIONAL FLIGHT ATTENDANTS DECEMBER 13, 2014 TABLE OF CONTENTS Section 1 Recognition and Scope .......................................... 1-1 Section 2 Definitions………………………………………..2-1 Section 3 Compensation ........................................................ 3-1 Section 4 Expenses ................................................................ 4-1 Section 5 Moving Expenses .................................................. 5-1 Section 6 Crew Accommodations ........................................ 6-1 Section 7 Uniforms ............................................................... 7-1 Section 8 Vacation ............................................................... 8-1 Section 9 Sick Leave ............................................................ 9-1 Section 10 Scheduling .......................................................... 10-1 Section 11 Hours of Service ................................................. 11-1 Section 12 Reserve Duty ...................................................... 12-1 Section 13 Temporary Duty Assignment (TDY) .................. 13-1 Section 14 International Flying ............................................ 14-1 Section 15 Foreign Language Speaker ................................. 15-1 Section 16 Deadheading ....................................................... 16-1 Section 17 Co-Terminals ...................................................... 17-1 Section 18 Charters ..............................................................
    [Show full text]