[SergeantMajor]

Really good to see Willie has become chairman of oneworld; another feather in his cap, and a further validation of his leadership when CEO at British Airways.

[AnthonyDunn]

@ ArthurDimlock – 07/03/2014 16:47 GMT

+1

Very droll!

[transtraxman]

“Airline group IAG narrows losses as Iberia improves”
BBC News 9-5-14

http://www.bbc.com/news/business-27337542

18% increase in Revenue Passenger Kilometers for April 2014

http://www.iairgroup.com/phoenix.zhtml?c=240949&p=irol–
newsArticle&ID=1929227&highlight=

2014 Q1 loss operating loss reduced 70% to €150 from 2013

http://www.iairgroup.com/phoenix.zhtml?c=240949&p=irol-newsArticle&ID=1929226&highlight=

[Hippocampus]

An excellent performance by Willie and the team at IAG in what is always the weakest quarter for all airlines.

A very small loss for BA is a superb result in a quarter without benefit of Easter and Iberia is making huge progress with significant productivity improvements to come

Well done Willie and IAG!

[KarlMarx]

Don’t get me wrong, as I like BA and think it is a well run airline, but the hyperbole over a loss is remarkable.

Let’s save the celebrations for the whole year results, shall we?

[BusinessBabble]

It is not a hyperbole, all European airlines make a loss over the quieter winter months, if the loss is smaller than prior years or forecast it is a cause for celebration.

[KarlMarx]

Sorry BusinessBabble

“A very small loss for BA is a superb result ” is hyperbole.

I will be the first to acknowledge good full year results, but a loss in one quarter is what it is, even with seasonal considerations. Good maybe, very good at a pinch, but not superb. Superb = a profit.

[BusinessBabble]

Fair enough KarlMarx, I agree I won’t be cracking open the champagne!

[LuganoPirate]

I have to agree with you KarlMarx. It’s like funds who celebrate the fact they lost you less money than their competitors!!!

[transtraxman]

CAPA comes up again with a detailed analysis. 11 May ´14

“IAG’s 1Q losses narrow. Discipline over capacity, capital and costs provides momentum”

http://centreforaviation.com/analysis/iags-1q-losses-narrow-discipline-over-capacity-capital-and-costs-provides-momentum-167403

Might I highlight the following…
“…it does seem that IAG is achieving a structural improvement in its profitability as a result of strong discipline over capacity, capital and costs and a firm stance on labour productivity. More than its European legacy peers, the momentum is with IAG.”

“According to IAG CFO Enrique Dupuy, BA’s breakeven result was “a very significant achievement” when compared with other legacy carriers in Europe. 1Q is typically loss-making for the majority of European airlines. ……. he added: “That doesn’t mean that we are happy with it” and said that further improvements could be made.”

“IAG has now added to its guidance that it expects to improve operating profit by at least EUR500 million compared with the result of EUR770 million in 2013. However, this target…is the least optimistic interpretation of IAG’s guidance,…..”

“Unlike the other two{AF/KLM & Lufthansa}, whose 2014 targets look achievable but probably challenging, IAG is the only one with clear scope to raise its guidance.”

Compare the analysis in this arfticle with the biased negative opinions of the “talkdowners” instigated on a similar thread.

[BigDog.]

mm Yangon Airways, I think it is just within Walsh and his teams’ competency – will be tough though and they will need to raise their game extensively. I reckon 4-5 years and a couple of £ billion restructuring costs initially with a further quarter to half £ billion each quarter for a few further years as they’ll lose all the goodwill and cooperation.

Yangon currently runs a fleet of 3 (three). Is Walsh upto the task? Maybe if Jeremy Clarkson, who has a reputation for bridge building in the region, is engaged as the cultural relationship lead and VK/SM as business ethics strategist and implementing 4 class cabin within the ATR 72.

http://en.wikipedia.org/wiki/Yangon_Airways

Am confident after £billions of investment that there will eventually be £millions in profit with Walsh and SM jigging in the aisles.

https://www.youtube.com/watch?v=2dbL4NYrbKk

…”Yangon airways embraces the Myanmar philosophy that one’s kindness and affection will be reflected to oneself. Sincerity, politeness and honesty are unique attributes of the Myanmar people.”…

They’ll need to replace the “kindness and affection” part of the philosophy with “distrust and bullying” to develop a low moral, low motivation fear based culture for starters.

Methinks Walsh should also add another £10million pa to his annual bonus up front just for the cheeky presumption he can turn it around plus another £20million (in advance, non-refundable) if he can make it profitable by 2024 plus a further £30million when IAG corporate reporting & domicile is transferred to Myanmar or Liberia.

Parody on a parody on a parody.

Meanwhile, in reality, IAG continues to underperform the FTSE and LH (by 10% YTD) as well as AF/KLM by 40% in both YTD and over 2 years.

[canucklad]

I had to recheck the date when I read the Yangon speculation.

What my numbskulls deduce is this. It’s like McDonald’s taking over Agnes. & Angus’s Scone emporioum in Aucterader. Or even more cruely Dorothy and Toto stumbling across Ron Jeremy and Ben Dover on the yellow brick road.
Either way the result is going to be the same.
.

[TominScotland]

Canucklad and BigDog – I think you condemn too easily……..

Don’t you think that SeargentMajor has hit on a brilliant strategy here which could be the saviour of major airlines such as BA, EK and SQ? Its a suggestion that the likes of that other frequent poster, SergeantMajor, would never have had the imagination or temerity to even dream of………..

[SimonS1]

I agree Tom.

What I particularly like is the world is full of Seargent/Sergent/Sargeant Majors who have such varying strategy. Keeps it all interesting really.

And Asia is so promising as a region….

[canucklad]

My above comment was made in the fuzziness of an early Sunday morning mist. Now that I’ve had a wee lye in and awoken again to bright sunshine and as I prepare myself for the smell of freshly cut grass I have indeed noticed that the speculation that IAG are going to jump on their white charger and ride to the rescue of Ying Yang Yong airways was not made by SM has inspired me to ask the following of Seargent major.

If I was a shareholder I would want to know exactly how IAG can use its acquisition to be a niche market differentiator in the SE Asia market. But firstly I’d like to know what niche market differentiator means please ?

Of to cut the grass,then pack and down to my local . Have a great sunny Sunday everyone. : )

[Author]

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