p18 City mar13 Paul 10/3/09 20:36 Page 18
City & finance
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BA relegated
Astraeus insists
to ‘junk’ status
it is not for sale
BRITISH AIRWAYS has warned that it expects to
make a loss for the second year running.
It predicted a loss for the 2009-10 financial
Chris Gray.
supply leased aircraft to a broad range of air-
year similar in size to the £150 million loss ASTRAEUS Airlines has insisted it is not for sale lines for the foreseeable future, our business
predicted for the 2008-09 year, coming to an end and will be providing its sister company Iceland model would not fit with the trading format of
this month. Express with another aircraft as its parent group Meridian Aviation and its trading partners.”
The warning led to credit rating service expands. Astraeus is owned by Icelandic investment
Standard & Poor to downgrade BA to “junk” The Gatwick-based company, which leases group Fons HF, which also owns Iceland
status, meaning it was not thought suitable for aircraft and crew, moved to scotch rumours that Express, and has bought an Icelandic tour
investment. Standard & Poor said it was unlikely it was about to be sold to Meridian Aviation. operator.
to class BA as appropriate for an investment The rumours suggested Meridian was inter- Astraeus director Shaun Monnery said Iceland
grade rating for “several years”. ested in an acquisition so it could use Astraeus Express would be operating flights for the tour
BA is planning more cost-saving measures as a aircraft for a summer Turkey programme. operator so needed another aircraft. Astraeus
result of the prediction of a second year of losses. But an Astraeus spokesman said: “There is no already provided three aircraft for Iceland
It has already scrapped about 500 management foundation in it. Astraeus is not for sale.” Express and will now add another Boeing 757.
jobs and the airline warned of more “significant He said Meridian did approach Astraeus about It will join Iceland Express’s current fleet of
headcount reductions”. using the company’s aircraft but Astraeus one B757 and two B737s from mid-May.
Capacity for this summer will be reduced by declined because of “incompatibility of our “The additional equipment will be addressing
about 3% year-on-year, with most of the cuts at respective business models”. the consequent increased demand on a number
Gatwick, where capacity will fall by 10%. The spokesman added: “While our business of routes to and from Iceland throughout the
The airline also said it expected a decision on is profitable and has contracts and orders to year,” said Monnery.
a merger with Iberia soon. Chief executive Willie
Walsh said he was confident a deal could be
completed because difficulties over pensions and
share of ownership had been overcome.
Emirates content
on Amadeus GDS
EMIRATES has put its full range of content on
the Amadeus global distribution system in a
five-year deal.
The airline said fares, schedules and said: “This addition gives the consumer far
inventory on Amadeus will be the same as
Tui buys Aussie
greater choice. People will be able to travel with
that offered through any indirect or direct us throughout Australia and New Zealand across
channel, distribution provider or website. tour specialist all our brands, and can go pretty well anywhere
“We are delighted to offer Amadeus travel they want with our group of companies.”
agents efficient access to our full range of TUI TRAVEL subsidiary OzXposure has bought OzXposure was principally known for covering
content,” said Keith Longstaff, divisional Adelaide-based Adventure Tours Australia. Western Australia, while ATA covered the
senior vice-president at Emirates. The parent company signed the deal to buy outback and east coast. ATA also includes brands
“We remain fully committed to working with the escorted tours specialist to boost its small- such as Outback Safaris, Wayward Bus, Oz
the travel agency channel as we continue to group adventure programme in Australasia. Experience and Adventure Tours New Zealand.
expand our reach, providing a high-quality It believes the acquisition will give OzXposure ATA’s upmarket “Safari in Style” tours will
service with the latest routes between Asia, the widest range of itineraries on the market. combine with OzXposure’s Australian Pinnacle
Europe and the Americas.” OzXposure managing director Martyn Shapter Tours to target premium travellers.
18 13.03.2009
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