p14 city apr3 1/4/09 17:25 Page 14
City & finance
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Air France-KLM set
for a ¤200m loss
German giant GfK
AIR FRANCE-KLM has warned it expects to make
buys Ascent MI
an operating loss of about ¤200m this financial
year, despite last month predicting it was still on
track to make a small profit.
Fourth-largest research firm’s purchase – hailed as welcome
The forecast contrasts with last May, when the
news in the transactions market – will help strengthen UK
airline predicted a ¤1bn profit for this year.
However, sharply deteriorating business travel
company’s cruise and airline bookings analysis. By Chris Gray
revenue, combined with a decline in leisure and
cargo traffic have hit profitability further. TRAVEL research company Ascent Ascent’s reach in the UK travel
It also suffered as its fuel hedging meant it did MI has been acquired by GfK Group market.
not benefit from recent falls in the oil price. for an undisclosed sum. “We aim to provide a complete
The airline now expects overall revenue to fall The acquisition of Ascent MI picture of the UK leisure travel
6%. It has reduced capacity on its passenger will give Germany-based GfK, the market. We have an excellent
business by 3.4% for the summer season. fourth-biggest market research mix of agent information but
Chief executive Pierre-Henri Gourgeon said its company in the world, data on also want to add cruise and air-
2009-10 financial year would start in April in a UK travel bookings to add to its lines, and it is this element that
“context of unprecedented difficulty, with little information on other worldwide the operational capacity of GfK
visibility on how the economy will evolve”. markets for the first time. will help us with,” said Smalley.
It will also help Ascent MI “Through the GfK platform
■ City route for France-KLM subsidiary, p20 develop its plans to add the cruise and network, we have found a
and aviation industries to its strategic international partner
analysis of leisure travel sales figures. for future growth and we look forward to further
Tuifly: scheduled
Ascent MI’s chief executive, Sarah Smalley developing our range of services.”
(pictured), becomes managing director of the Dawsons LLP partner Laura Harcombe, who
deal for Air Berlin
renamed company GfK Ascent MI. advised on the deal, said it was positive news at
Smalley said she would stay with the new a time when there was a general slowdown in
company for at least three years. corporate transactions.
TUI’s German airline Tuifly has signed a deal She said both companies gained from the deal GfK made a profit of ¤158.7m last year, up by
with Air Berlin that will see it stop operating because Ascent MI benefited from GfK’s ¤1.1m from ¤157.6m the year before, according
scheduled flights and focus purely on charters. operational capacity and GfK benefited from to results reported last week.
Air Berlin will lease 17 of Tuifly’s aircraft and
their crews, and operate them on city-pair routes
under the Air Berlin brand.
Tui Germany will continue to fly 21 aircraft on
W&O tips cuts to increase profits
charter routes for its tour operation business.
Tui Travel is paying ¤64.8m for a 19.9% stake
in Air Berlin, which is in turn paying ¤36.3m for LUXURY travel group Western & Oriental expects because of big cuts in interest rates. Savings
a 19.9% stake in Tuifly, which lost ¤35m last year. its results for the six months to the end of March have included integrating all Western &
Tui said the Air Berlin deal would end dilution this year to surpass earlier estimates. Oriental’s London businesses, except Rainbow
of its tour operator margins caused by excess The results follow a round of cost-cutting that Tours, into one main office in Victoria.
capacity and secure the future of the airline. has saved £900,000 in this financial year and One reservation and back-office system is also
The deal does not affect Tui’s UK airline, potentially another £2m in the next. now used for all the tour operating businesses.
Thomson Airways, which operates separately. Analysts now expect the group to post a small Howell said the firm expected to make more
profit for the six months to March 31, compared savings this year as it remained “cautious” about
with a loss of £900,000 the previous year. the economy and consumer spending trends.
The guidance was issued ahead of the official Western & Oriental suspended an acquisition
posting of the group’s first-half results. programme last year as the downturn gathered
Chairman David Howell said gross profits were pace.
ahead of expectations and costs were lower than
expected, although interest received was lower ■ Agents ‘should focus on client wellbeing’, p23
14 03.04.2009
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