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IB On It's Way To Record Profits  
User currently offlineBullpitt From Spain, joined Mar 2004, 871 posts, RR: 8
Posted (6 years 9 months 1 week 5 days 13 hours ago) and read 2436 times:

Hi all

Just read it in Cinco Dias ( a Spanish economy newspaper) IB's level of reservations and the great financial performance up to now indicates that IB could present it's best ever financial results.

Not bad for such a BAD airline.  bigthumbsup . Business plus is up 15% and the long haul occupation is over 93%

It seems our clients have a better opinion than the gurus in A-net.  scratchchin  What fools.  sarcastic 


These are my principles but if you don't like them I have others
13 replies: All unread, jump to last
 
User currently offlineOHLHD From Finland, joined Dec 2004, 3962 posts, RR: 25
Reply 1, posted (6 years 9 months 1 week 5 days 13 hours ago) and read 2400 times:

Quoting Bullpitt (Thread starter):
Just read it in Cinco Dias ( a Spanish economy newspaper) IB's level of reservations and the great financial performance up to now indicates that IB could present it's best ever financial results.

Very good news! But why should IB then be sold. They seem to be healthy


User currently offlineBullpitt From Spain, joined Mar 2004, 871 posts, RR: 8
Reply 2, posted (6 years 9 months 1 week 5 days 13 hours ago) and read 2388 times:

Hi all

That's a different story. IB doesn't need to be sold the problem is its actually doing so well the bigger fish are looking at her with greedy eyes.  yummy 



These are my principles but if you don't like them I have others
User currently offlineGatoVolador From Spain, joined Apr 2007, 435 posts, RR: 1
Reply 3, posted (6 years 9 months 1 week 5 days 7 hours ago) and read 2257 times:

... and the current shareholders do not care about the business. They consider Iberia as a non strategic investment in their investment portfolio. That's why many (if not all) of them would be happy to sell the shares and allocate the gains in their core businesses.

A pity...


User currently offlineIberiaA319 From Spain, joined Sep 2005, 574 posts, RR: 38
Reply 4, posted (6 years 9 months 1 week 5 days 6 hours ago) and read 2210 times:

Iberia reached a profit of € 75 million for Q1 and Q2, which is an excellent result (compared to the losses of 9 million during the first six months of last year). The revenue income increased 2.6 % and the operating expenses decreased 0.7 per cent (in spite of the rising fuel costs).

The load factor went up to 80,2 % (77,8 % in the same period of last year). According to the Plan Director of 2006 and 2008, IB focused on domestic and European routes to its hub in Madrid, and reducing the offered capacity in Spain. Even an increase in the operating revenue was reached with less resources (compared to last year).

Last month (September 2007) the load factor rose up to 85 %, 1.5 % more than in 2006. As mentioned before, the number of passengers in business class increased 15 %. Also more passengers travelled to the Americas (26.2 % more to North America, where the new routes were an important factor, 8.6 % more to Central America, and 5.5 % more to South America, with a load factor in September of 93.3 % (!). On domestic flights, IB reduced the offered seats considerably (15.2 %) and just the flights to Madrid had an increase (1.1 %).

All these figures were published today. Let's see what happens with the offer of Texas Pacific Group and British Airways.....


User currently offlineBullpitt From Spain, joined Mar 2004, 871 posts, RR: 8
Reply 5, posted (6 years 9 months 1 week 5 days 5 hours ago) and read 2174 times:

Hi all

Quoting IberiaA319 (Reply 4):
All these figures were published today. Let's see what happens with the offer of Texas Pacific Group and British Airways.....

Well some  butthead  will probably go and invest in Vueling.  crazy 

Quoting GatoVolador (Reply 3):
... and the current shareholders do not care about the business. They consider Iberia as a non strategic investment in their investment portfolio. That's why many (if not all) of them would be happy to sell the shares and allocate the gains in their core businesses.

A pity...

Actually El corte ingles I have my doubts, Caja Madrid would be more than happy to make a quick profit although with these results they might want more than what TPG are offering. Let's not forget the Lara family who are very interested in hopping into IB if the price is right.



These are my principles but if you don't like them I have others
User currently offlinePlaneHunter From Germany, joined Mar 2006, 6714 posts, RR: 78
Reply 6, posted (6 years 9 months 1 week 5 days 4 hours ago) and read 2153 times:

Quoting Bullpitt (Thread starter):
It seems our clients have a better opinion than the gurus in A-net.

Being profitable doesn't mean that everything is perfect. It's a fact that IB's onboard product (LCC-style on European routes, basic Eco service on longhaul) is inferior to many other carriers - one major reason why I and other service-orientated travelers wouldn't fly the airline unless there's no other choice. It's good for IB that it can fill its planes for whatever reasons - but that is no reason to slam all those who criticize the carrier for its service level.


PH



Nothing's worse than flying the same reg twice!
User currently offlineSemsem From Israel, joined Jul 2005, 1779 posts, RR: 3
Reply 7, posted (6 years 9 months 1 week 5 days 4 hours ago) and read 2138 times:

I really enjoyed both my flights on IB to the States. I am glad they are doing well. The crew were so so and the entertainment not so great. But the legroom was good and the food was among the best and generous in portions. I also like Madrid Airport for connections. However they are stingy giving airmiles on discounted tickets.

User currently offlineBullpitt From Spain, joined Mar 2004, 871 posts, RR: 8
Reply 8, posted (6 years 9 months 1 week 5 days 3 hours ago) and read 2087 times:

Hi all

Quoting PlaneHunter (Reply 6):
It's good for IB that it can fill its planes for whatever reasons

The reason is quite simple people get what they pay for and that's what they want. No one would fly IB if the competitions was so much better like some people make it seem.



These are my principles but if you don't like them I have others
User currently offlineEUROBUS From Spain, joined Nov 2004, 313 posts, RR: 0
Reply 9, posted (6 years 9 months 1 week 4 days 16 hours ago) and read 1983 times:

Quoting Bullpitt (Reply 5):
All these figures were published today. Let's see what happens with the offer of Texas Pacific Group and British Airways.....

Recently I have been reading that BA is interested in taking over BMI for strategic reasons. I believe this would geperdise any interest in IB. What do you think?



Who says airports are boring places?!
User currently offlineColumba From Germany, joined Dec 2004, 7057 posts, RR: 4
Reply 10, posted (6 years 9 months 1 week 4 days 16 hours ago) and read 1981 times:

Hopefully they can put the profit into good use. Invest in new routes and aircraft and stay independant. Would be sad to see IB go.


It will forever be a McDonnell Douglas MD 80 , Boeing MD 80 sounds so wrong
User currently offlineGatoVolador From Spain, joined Apr 2007, 435 posts, RR: 1
Reply 11, posted (6 years 9 months 1 week 4 days 14 hours ago) and read 1911 times:

Quoting Columba (Reply 10):
Hopefully they can put the profit into good use. Invest in new routes and aircraft and stay independant. Would be sad to see IB go.

It's an option. There is currently a group of Spanish investors preparing a takeover, and Caja Madrid, that currently has a 10% of the shares, could (we don't know but they are studying it) take part of it.

Let's see what happens. This is a very difficult operation, and BA-TPG is slowing dramatically the process of the bid. In 6 days there is a reunion of the board of Iberia, and BA has promised to send the offer before this, but the same happened last month, and now some newspapers already say that BA-TPG could delay it again up to the first 15 days of November.

The takeover speculation is damaging Iberia, which is willing to sign a contract with Airbus and cannot do that due to the uncertainty in terms of ownership and the projects of these owners.

Also the new labour agreements would need to be negotiated after the elections that will take place in the unions by Oct. 30th, and for sure there will be another delay that will make impossible to substitute the current agreements by Jan 1st, which is their expiration date.

And in the meanwhile, TAM opened a new route to MAD from Brazil; Air Canada to Canada; etc. etc., and these are bad news to IB, considering that any of the routes being opened by other carriers were also targeted by Iberia in the short & medium term, but unfortunately they cannot do anything due to the paralysis of the fleet. (10 A340 had to be urgently searched, both brand-new and second-handed, but it is not enough!)


User currently offlineTurbulence From Spain, joined Nov 1999, 963 posts, RR: 21
Reply 12, posted (6 years 9 months 1 week 4 days 13 hours ago) and read 1884 times:

We should be careful on profits by Iberia. First, because of concurrence on existing routes. Second, because same passengers with less offer means off course better occupancy rates and operational profits, but not necessarily more passengers. Third, although I have written the best words for Iberia in the past, do not forget that much of the income is from tercerising services (many frequencies in AirShuttle and many long haul flights are no longer served by Iberia, but by Audeli), and fourth, from selling immobilizated and actives (I think last one was participation in Amadeus). When there won't be anything else to tercerise or to sell, where will they find more income?

Enjoy turbulence!!!


User currently offlineGatoVolador From Spain, joined Apr 2007, 435 posts, RR: 1
Reply 13, posted (6 years 9 months 1 week 4 days 12 hours ago) and read 1855 times:

Quoting Turbulence (Reply 12):
First, because of concurrence on existing routes.

For sure, and that's why Clickair was created and IB refocused to long-haul (and its associated short haul network out of MAD). Iberia is moving to markets in which the elasticity of the demand (the willingness to switch to a competitor that has cheaper fares) is much lower. In the long-haul, even if price remains important, the schedules, the number of frequencies, the strenght in a region over the competitors, etc. are key factors. Price is one of them, but not the determinant one. (Also it's not the same a competition with Air France or with TAP, which is healthier, than with Ryanair, that is blowing the product up and changing it completely. There are two very different worlds.)

Quoting Turbulence (Reply 12):
Second, because same passengers with less offer means off course better occupancy rates and operational profits, but not necessarily more passengers.

IB itself will grow in terms of passengers, even if short haul passengers from BCN are thrown out of the game. Also notice that quality is better than quantity. Even if IB shows an increasing passengers figure, and it will show it, it's also better to have one Business Class passenger than five Barcelona - Bilbao tourist class passengers.

On top of that, Clickair is performing well, and the overall result (Iberia + Air Nostrum + Clickair) is clearly increasing compared to the one of Iberia + Air Nostrum. Don't forget that even if IB owns a 20% of Clickair. they have the right to receive more than 50% of the dividend, and that the have the right to buy up to the 80% of the shares. Then, considering that in 2012 they expect a 12M passengers only from BCN (then more from SVQ, BIO, PMI...), Iberia + Clickair + Air Nostrum will clearly increase both in terms of quantity (pax carried) and quality (competition in prices in the short haul, and stimulation of the premium demand in the long haul).

Quoting Turbulence (Reply 12):
do not forget that much of the income is from tercerising services

I disagree. Audeli's impact in the income statement of Iberia is marginal. Audeli will only operate 4 A340, which is a small production, and the earnings obtained by IB with the wet-lease are almost zero. In the past, when they operated a good number of B757s in a money-pump business as the Air Shuttle, Audeli was much more profitable because costs were lower and prices charged high, resulting a very good margin. But now with Audeli in the long range (operating with FAs from Iberia), the advantage is very low.

IB will recuperate the production of these A340 as long as a new agreement is reached with SEPLA, as it already happened with the FAs. If Audeli remains there is to push SEPLA to accept some new conditions in exchange of the recuperation of the production, and the most important reason, because Audeli means a "instantaneous" increase of the long haul fleet (due to the impossibility to sign a contract with Airbus up to the end of the takeover in place), which is needed.

Quoting Turbulence (Reply 12):
from selling immobilizated and actives (I think last one was participation in Amadeus). When there won't be anything else to tercerise or to sell, where will they find more income?

It's not the case. This is a record in operating profits (i.e.: without considering any extraordinary sale). By the way, any asset was sold in 2007. (I'm against the sale of assets without any reason, but let's accept that Viva Tours, Iberswiss, or some shares in Amadeus were not strategic investments, and therefore they can be converted into cash to, for example, make a bid abroad that could enhance the core-airline business. The sale was good for Iberia, and it was not traumatic in the sense that any main activity - airline, cargo, handling, and maintenance - was affected. On top of that, IB has really a LOT of investments that could be sold - and that's precisely what interests Texas Pacific Group -, so I think that sometimes we abuse when we say that IB has sold everything to increase profits. Actually, it only sold a few non key investments, but many still remain.)


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