Jat Airways is nearing bankruptcy, according to Serbia’s Press newspaper. The Serbian government has been attempting to sell a 51 per cent stake in the troubled carrier since late June to raise money to revitalise it. But no buyers have come forward. It already has reduced onboard food service to lower costs and has laid off employees based outside Serbia. It reportedly has €250 million ($355.4 million)in debt. … [Read more...] about Europe/CIS: Serbia’s Jat Airways nearing bankruptcy
Carriers
Europe/CIS: “No way BA-AA!” says Virgin’s Branson
Virgin Atlantic president Richard Branson said he was prepared to spend heavily to try to prevent a planned tieup between British Airways, American Airlines and Spain’s Iberia. “If it is approved we believe Virgin Atlantic will be damaged (along with) ... any smaller carriers on these routes,” Branson told reporters recently, adding he would spend “millions of dollars” in a bid to block the tie-up. He said he would start by painting “no way … [Read more...] about Europe/CIS: “No way BA-AA!” says Virgin’s Branson
Europe/CIS: Finnair grapples to find cost-savings
Finnair said recently that it has given its employee groups two weeks to examine three possible cost-saving alternatives. A spokesperson told Reuters that one option is a salary cut of 5 per cent across the company, the second a 15-month salary freeze and the third 400 layoffs. Employees would get some money back if the airline meets certain financial targets, although it said it may report an operating loss in the second half. … [Read more...] about Europe/CIS: Finnair grapples to find cost-savings
Europe/ CIS: Cargolux adds second Miami frequency
Following the start of weekly services to Miami in April of this year, Cargolux Airlines International S.A., Europe’s largest all-cargo airline, added a second weekly frequency to Miami, with continuation to Houston, operational since 24 July. On board Cargolux’s B747-400 freighters to Miami – Houston, is mostly machinery, oil well equipment and automotive parts are loaded, contributing to the growth of local industries. Importantly, Cargolux will offer connections on … [Read more...] about Europe/ CIS: Cargolux adds second Miami frequency
Europe/ CIS: Lufthansa to take over Brussels Airlines
Lufthansa will take over Brussels Airlines, the carriers announced recently, in a deal that potentially values the Belgian carrier at €250 million (US$355.6 million) and could pave the way for its entry into Star Alliance. In a first step, LH will take a 45 per cent “strategic” stake in Brussels Airlines parent SN Airholding for €65 million. It will have the option of acquiring the remaining 55 per cent from 2011. The two-phased agreement is dependent upon approval of … [Read more...] about Europe/ CIS: Lufthansa to take over Brussels Airlines
Europe/ CIS: Alitalia rescued from death throes
The last unions holding out against a deal to salvage beleaguered Italian national carrier, Alitalia agreed late last month to a plan which will see the bankrupt airline’s assets to a group of Italian investors. The breakthrough with the AVIA and SDL unions, which represent mostly fl ight attendants, came after a meeting with the investors and government offi cials, the premier’s office said. All nine Alitalia unions are now on board. Pilots, who had been resisting the deal, … [Read more...] about Europe/ CIS: Alitalia rescued from death throes
