I49 Air and Space Transport

Qantas breaks dividend drought with record profit

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Original article by Michael Smith
The Australian Financial Review – Page: 15 & 22 : 25-Aug-16

Qantas has reported a 2015-16 net profit of $A1.029bn, compared with $A557m for the previous financial year. The airline’s pre-tax underlying profit rose from $A975m to a record $A1.53bn. Shareholders will receive a final dividend of $A0.07 per share, which is the carrier’s first payout since 2009, while Qantas will repurchase up to $A366m worth of its shares. Meanwhile, employees will receive a cash bonus ranging from $A2,500 to $A3,000.

CORPORATES
QANTAS AIRWAYS LIMITED – ASX QAN, JETSTAR AIRLINES PTY LTD, VIRGIN AUSTRALIA HOLDINGS LIMITED – ASX VAH, CITIGROUP PTY LTD

Virgin’s $1b rescue plan

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Original article by Michael Smith, James Thomson
The Australian Financial Review – Page: 1 & 10 : 16-Jun-16

Virgin Australia Holdings will seek to reduce costs by $A300m a year via a restructuring program, which will include phasing out some smaller planes and job cuts at management level. Virgin will also raise $A852m from shareholders via a rights issue at $A0.21 per share, compared with the stock’s closing price of $A0.26 on 15 June 2016. China-based HNA Group recently invested $A159m in Virgin, which aims to commence flights to China and Hong Kong.

CORPORATES
VIRGIN AUSTRALIA HOLDINGS LIMITED – ASX VAH, HNA GROUP, SINGAPORE AIRLINES LIMITED, VIRGIN GROUP LIMITED, NANSHAN GROUP, ETIHAD AIRWAYS, TRANSPORT WORKERS’ UNION, AIR NEW ZEALAND LIMITED – ASX AIZ, CITIGROUP PTY LTD

Chinese in race for 20pc of Virgin

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Original article by Andrew White
The Australian – Page: 19 & 28 : 1-Jun-16

Chinese airline operator HNA Group will pay $A159m for a 13 per cent stake in Virgin Australia Holdings. The placement was priced at $A0.30 per share, and Virgin CEO John Borghetti says the Chinese group is likely to lift its stake to 19.9 per cent. The stakes of Virgin’s major shareholders – Air New Zealand, Singapore Airlines, Etihad and Virgin Group – will be diluted as a result of the placement. HNA’s businesses include Hainan Airlines and Hong Kong Airlines.

CORPORATES
VIRGIN AUSTRALIA HOLDINGS LIMITED – ASX VAH, HNA GROUP, AIR NEW ZEALAND LIMITED – ASX AIZ, SINGAPORE AIRLINES LIMITED, ETIHAD AIRWAYS, HAINAN AIRLINES COMPANY LIMITED, HONG KONG AIRLINES LIMITED, WEST ASIA AIRLINES LIMITED, QANTAS AIRWAYS LIMITED – ASX QAN, MACQUARIE WEALTH MANAGEMENT

Virgin-Air NZ divorce could trigger bid

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Original article by Michael Smith
The Australian Financial Review – Page: 1 & 8 : 31-Mar-16

Air New Zealand has indicated that it may divest its 25.9 per cent stake in Virgin Australia Holdings to provide capital for its own growth strategy. Ailevon Pacific Aviation Consulting’s Oliver Lamb says there has been speculation in the aviation industry as to which of Virgin’s three largest shareholders would sell out first. Virgin shares closed at $A0.34 on 30 March 2016, valuing Air NZ’s stake at about $A310m. Virgin could potentially become a takeover target if Air NZ sells its stake.

CORPORATES
VIRGIN AUSTRALIA HOLDINGS LIMITED – ASX VAH, AIR NEW ZEALAND LIMITED – ASX AIZ, AILEVON PACIFIC AVIATION CONSULTING, SINGAPORE AIRLINES LIMITED, ETIHAD AIRWAYS, VIRGIN GROUP LIMITED, QANTAS AIRWAYS LIMITED – ASX QAN, DEUTSCHE BANK AG, ANSETT AUSTRALIA HOLDINGS LIMITED, VIRGIN AMERICA INCORPORATED

Virgin signs partner deal with Alliance

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Original article by Jamie Freed
The Australian Financial Review – Page: 30 : 16-Feb-16

Australian-listed Alliance Aviation Services has posted a 2015-16 interim net profit of $A4.1m, which is 35 per cent lower than previously. The group, which specialises in the provision of charter flights for the "fly-in, fly-out" market, has been hit by the decline of the resources boom. Meanwhile, Alliance has secured a partnership agreement with Virgin Australia Holdings which will allow both groups to expand their charter operations.

CORPORATES
ALLIANCE AVIATION SERVICES LIMITED – ASX AQZ, VIRGIN AUSTRALIA HOLDINGS LIMITED – ASX VAH, QANTASLINK, COBHAM AVIATION SERVICES, AIRNORTH, SKYWEST AIRLINES LIMITED, VIRGIN AUSTRALIA REGIONAL AIRLINES PTY LTD, QANTAS AIRWAYS LIMITED – ASX QAN, DEUTSCHE LUFTHANSA AG, AUSTRALIA. BUREAU OF TRANSPORT AND REGIONAL ECONOMICS

Air New Zealand doubles down on Houston route

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Original article by Jamie Freed
The Australian Financial Review – Page: 24 : 22-Jan-16

Air New Zealand will face competition on the New Zealand-US route from mid-2016, when American Airlines and United Airlines commence flights on the route. Meanwhile, Air NZ has reduced its capacity on the Auckland-Los Angeles and Auckland-San Francisco routes in response to strong demand for airfares for its recently launched flights between Auckland and Houston. The carrier will offer five flights on the route each week from March.

CORPORATES
AIR NEW ZEALAND LIMITED – ASX AIZ, AMERICAN AIRLINES INCORPORATED, UNITED AIR LINES INCORPORATED, QANTAS AIRWAYS LIMITED – ASX QAN, MACQUARIE EQUITIES LIMITED, JETSTAR AIRLINES PTY LTD, CHINA EASTERN AIRLINES CORPORATION LIMITED, VIRGIN AUSTRALIA HOLDINGS LIMITED – ASX VAH

Oil price drop to fuel Qantas profit

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Original article by Jamie Freed
The Australian Financial Review – Page: 15 : 11-Jan-16

Paul Butler of Credit Suisse says the sharp decline in the price of Brent crude oil and jet fuel in recent months should boost the earnings of Qantas over the next two years. Shareholders at the carrier’s 2015 annual meeting were told that its fuel bill for 2015-16 will be around $A3.61bn, but Butler forecasts that this could potentially fall by around $A110m. He adds that hedging could allow Qantas to slash its fuel costs by another $A160m in 2016-17.

CORPORATES
QANTAS AIRWAYS LIMITED – ASX QAN, CREDIT SUISSE (AUSTRALIA) LIMITED, VIRGIN AUSTRALIA HOLDINGS LIMITED – ASX VAH, STANDARD AND POOR’S CORPORATION, MERRILL LYNCH (AUSTRALIA) PTY LTD, DEUTSCHE BANK AG

Qantas and American to fly new trans-Pacific routes

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Original article by Jamie Freed
The Australian Financial Review – Page: 13 & 14 : 7-Jan-16

Qantas and American Airlines intend to expand their joint venture’s trans-Pacific routes. The airlines are seeking final regulatory approval for flights between Australasia and mainland North America, stating in a submission filed with the US Department of Transportation that they would add at least two new trans-Pacific routes. This will be possible once Boeing starts delivering its 787-9 aircraft to Qantas in 2017.

CORPORATES
QANTAS AIRWAYS LIMITED – ASX QAN, AMERICAN AIRLINES INCORPORATED, BOEING COMPANY, UNITED STATES. DEPT OF TRANSPORTATION, AIR NEW ZEALAND LIMITED – ASX AIZ, AIR CANADA

Qantas shares bumper profit with investors

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Original article by Jamie Freed
The Australian Financial Review – Page: 13 & 18 : 16-Dec-15

Qantas expects a 2015-16 interim underlying pre-tax profit of $A875m to $A925m, compared with $A367m for the previous corresponding period. The airline has benefited from factors such as lower fuel prices, higher revenue and cost reductions in the current half-year. CEO Allan Joyce has signalled that Qantas will look at returning surplus cash to shareholders in the next several years, while Matthew Spence of Merrill Lynch expects the carrier to launch a share buyback with the release of its half-year accounts.

CORPORATES
QANTAS AIRWAYS LIMITED – ASX QAN, MERRILL LYNCH (AUSTRALIA) PTY LTD, JETSTAR AIRLINES PTY LTD, VIRGIN AUSTRALIA HOLDINGS LIMITED – ASX VAH, WOOLWORTHS LIMITED – ASX WOW, BP AUSTRALIA LIMITED

Dollar discourages US trips: United Airlines

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Original article by Lisa Allen
The Australian – Page: 20 : 10-Dec-15

United Airlines has reported a fall in the number of Australian tourists flying to the US. Brian Znotins, vice-president for network planning at the airline, believes that this trend is the result of the weakness of the Australian dollar against the US currency. There will be no increase in the airline’s services from Sydney and Melbourne to Los Angeles.

CORPORATES
UNITED AIR LINES INCORPORATED, AUSTRALIAN BUREAU OF STATISTICS