Iberia ends dispute with pilots - Iberia has struck a deal with its pilots that paves the way for the integration of subsidiary Aviaco and the unification of its Airbus fleet. The company has dropped plans to sue pilots for damages for strike action earlier this year and pilots have agreed to the sale of regional subsidiaries Binter Mediterraneo and Binter Canarias. The company lost Ptas4 billion ($25 million) in the first quarter because of the pilot action and severe traffic control problems which forced it to cut 30 daily services. Iberia projects a 23% fall in full year 1999 profits to Ptas43.1 billion.
Duty free no more - Denmark has vetoed the extension of tax free sales beyond the 30 June deadline.
AB Airlines sells slots - AB Airlines has sold seven weekly slots at London Gatwick used for routes to Shannon and Nice to Virgin Atlantic for £2 million ($3.2 million).
Gate Gourmet grows bigger - SAirGroup has bought the world's third largest in-flight caterer, US-based Dobbs, for $780 million. With the acquisition of this $890 million a year operation from VIADcorporation, SAirGroup's Gate Gourmet subsidiary has boosted annual sales to $2billion, closing the gap in market share with Lufthansa-owned LSG/SKy Chefs.
The SAirGroup is pursuing an aggressive acquisition strategy in this market, buying kitchens in Australia and Ecuador earlier this year.
Source: Airline Business
