Mood not so good - It will be "another good year for the US airline industry", according to Moody's credit ratings agency, but growth in Europe and the USA will be slower and profits lower than last year. Asia still faces "a difficult environment", except China. EVA's early recovery - Taiwanese carrier EVA Air made a profit for 1998 of $1.92 million after tax, compared with a predicted loss of $20.5 million. Preliminary figures show $1.32 billion turnover for 1998. Boullioun cleared - Deutsche Bank's purchase of Boullioun Services for $120 million has been approved by regulators. The commercial aircraft lessor aims to have a 150 plane portfolio "within the next few years" CAA protects - The UK's Civil Aviation Authority has formed a Consumer Protection Group which will manage the ATOLsystem, regulate the financing of airlines and ATOL holders, applications for operating and route licenses and consumer issues such as insurance standards, passenger liability and conditions of carriage. Amadeus issued its first Y2K booking on 5 January 1999. UK business grows – UK domestic business travel will grow 15.7% in 1999-2002, according to Business Travel. Virgin has beaten BA in its bid to fly a twice weekly route to Shanghai made available under a new UK-China bilateral. Virgin aims to begin flying in the summer schedule using an Airbus A340. Alitalia loses - Alitalia will this year have to give up its privileged access to Italy's international traffic rights, in accordance with the European Commission's 1997 approval of its last tranche of state aid. Meanwhile the carrier reorganising internally to reflect its move towards privatisation and ties with KLM by decentralising decision making and spending. Heads roll? - Rumours of top executive sackings are rife in the industry with Robert Ayling, Dominico Cempella, Xabier de Irala at the top of the hit list. BA's chief executive, who is blamed for weakening profits and a lack of progress on the alliance with American, gave his public backing of the chairman of Iberia, despite his own tenuous position. As for Alitalia's managing director and chief executive, recent changes to the political guard in Rome have revived whispers that he is off to turn around the country's financially disastrous railways.
Source: Airline Business
