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Share Watch Prices on July 14 and weekly percentage change FTSE 100 INDEX




THOMAS COOK -7.9% £1.24

CARNIVAL -3.5%£21.36

Bmi regional to enter phase of expansion

Gary Noakes

BMI REGIONAL has signalled the start of an expansion phase after marking its first two years as an independent company. Chief executive Cathal O’Connell

said the carrier was on a sound financial footing but declined to confirm whether it was in profit. However, he added: “We’ve gone through a period of significant change – all those strategic activities are now coming together and that has an impact. It is coming out of a period of change and going into a period of stability.” Sector Aviation Holdings

bought bmi regional in June 2012. Sector Aviation is funded by Stephen and Peter Bond, who are investors in another Scottish

PROFIT PROVISO BA orders 20 new Airbus craft

BRITISH AIRWAYS has earmarked an order of 20 new Airbus aircraft for its short-haul fleet, amid warnings from its parent company they could be reallocated if BA’s short-haul arm does not make “a profitable return”. IAG announced this week that

it had converted 20 of the 100 Airbus A320neo options, which it announced in August 2013, into firm orders. However, it admitted these aircraft would be reallocated to Iberia or Vueling if this part of the BA business did not make “a profitable return”. An IAG spokesperson said: “We are

12 17.07.2014 Bmi regional is entering a period of stability

carrier, Loganair, and who previously owned Bond Offshore Helicopters. The Bond brothers acquired bmi regional from British Airways, which offloaded it

after buying it as part of the BMI brand portfolio. O’Connell said great progress

had been made since then. “Our schedules are in a very stable

targeting an improvement of £100m- £150m by 2015.” They declined to disclose whether this referred to the Gatwick part of the airline’s business. BA has also targeted an

improvement of £150m-£200m from its long-haul network. Progress made at Iberia is

expected to result in a fall in interim losses when IAG reports half-year figures on August 1. The Spanish flag carrier’s losses

IAG chief executive Willie Walsh

in the first quarter of 2014 fell year-on-year from €202m to €111m and the airline is expected to show another improvement. IAG is well into a cost-cutting plan at Iberia and has announced redundancy talks with 1,500 staff IHG 1%£24.59

position, the network is optimised with partnerships with Lufthansa and Brussels Airlines, and our base at Aberdeen is very strong, driven by the oil and gas industries.” Some of bmi regional’s expansion

has concentrated on flights within Europe. The carrier’s Frankfurt to Karlstad service, operated as a Lufthansa codeshare, goes twice daily on September 1, when two new routes, Berlin Tegel and Gothenburg to Kalmar in southern Sweden commence. More expansion in Europe was likely, O’Connell said, together with the UK regions. “Right now, we have no plans to

serve the London market,” he said. Bmi regional operates 18 aircraft –

49 and 37-seat Embraer jets – seven of which are allocated to private hire and ad-hoc work, including Premier League football charters. O’Connell said the fleet was “pretty much” all deployed and that additional aircraft were being considered. “We are certainly not closed to

staying with the 50-seater type,” he said. Bmi regional has the option to drop the “regional” part of its name. O’Connell said this was also being evaluated.

following 3,100 job losses already at the carrier. IAG’s results for January to March

revealed losses of €150m, down year on year from €278m, with British Airways contributing a deficit of just €5m to this. IAG chief executive Willie Walsh

said Iberia’s position would improve because of pay and productivity deals that took effect in April which were not reflected in the Q1 figures. Iberia last made a full-year profit

in 2008, but has been in the black in several quarters since then, most lately in the third quarter of 2013. IAG is targetting a €1.8bn

operating profit in 2015. Its share price is around 328p, with the 52- week range between 263p and 457p.

Patrick Whyte 020 3714 4115

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