Business: Good week - Bad week

Good week

HEATHROW USERS After the chaos that ensued when London's Heathrow airport ground to a halt in December as a result of its inability to cope with a bout of heavy snow, users of the airport had good news this week. Operator BAA is to invest £50 million ($81 million) in a series of improvement measures suggested by Professor David Begg in his inquiry into the PR disaster. The proposed improvements include new equipment, more staff and better communication.

 

 

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Bad week

CANADA'S CARRIERS Pre-tax profits in the nation's airline industry are to fall 37% to C$785 million ($802 million) this year. That is the verdict of a study by independent researcher The Conference Board of Canada, which expects the massive rehire effort of late 2010 to swell labour costs. But it is material costs that are forecast to drive cost growth averaging 6.5% a year in 2011-14, as airlines proceed with delayed investments targeting fuel efficiency.

 

 

Source: Flight International