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Muilenburg to become Boeing CEO July 1,
succeeding McNerney
Boeing president and COO Dennis Muilenburg will succeed Jim
McNerney as Boeings CEO July 1, the company said Tuesday.
McNerney, who has been Boeings CEO for the past decade, will remain
chairman of the companys board of directors and will continue working
as a company employee until retiring at the end of February 2016, Boeing
said in a statement. Muilenburg has been elected a member of the board.
McNerney, 65, said Muilenburg, 51, will bring a rich combination of
management skills, customer focus, business and engineering acumen, a
can-do spirit and the will to win. Ray Conner, who recently celebrated his
60th birthday, will continue as president and CEO of Boeing Commercial
Muilenburg has been a Boeing employee for 30 years. In a statement, he
said becoming Boeing CEO was a tremendous honor and responsibility,
adding, Our company is financially strong and well positioned in our
Among other projects, McNerney led Boeing during the development and
entry into service of the 787. Last year, he asserted Boeing was in a derisked position after years of taking technological risks developing the
787 and dealing with periodic bouts of labor unrest. My view is the next
10 years are significantly de-risked compared to the last 10 years, he
said in early 2014. Technologies from the 787 are now harvested and
Boeing noted that the companys annual revenue was $90.8 billion last
year, 73% higher than revenue of $52.5 billion in 2004, the year before
McNerney became CEO.
Since becoming president and COO in 2013, Muilenburg shared with
McNerney oversight of day-to-day business operations with a focus on the
companys growth and productivity initiatives, key customer relationships
and leadership-development programs, Boeing said. From 2009-2013,
Muilenburg was president and CEO of Boeing Defense, Space & Security.
IATA - Creating a Framework for African
The International Air Transport Association (IATA) called for governments,
safety regulators and industry to take action to drive aviation connectivity and
infrastructure development in Africa for the economic and social development
of the continent.
Africa is set to be one of the fastest-growing aviation regions over the next
20 years, with annual expansion averaging nearly 5%. This opens up
incredible economic opportunities for Africa. But aviation faces considerable
challenges, and for its potential to be realized, correct policies must be
developed. Smarter regulation, and a focus on delivering the safety and
connectivity commitments of the African Union, will be crucial to establishing
Africa as a global aviation powerhouse, said Tony Tyler, IATAs Director
General and CEO.
Tyler made his remarks at the IATA Africa and Middle East Aviation Day in
Nairobi, Kenya. The event is bringing together key stakeholders under the
theme Connecting Africa focusing on the development of frameworks to
promote connectivity in regulations, commerce, and operations.
In his speech, Tyler identified key challenges needing to be addressed:
Safety Safety must always be our first priority. Africa experienced zero jet
hull losses in 2014, an excellent result. The all-aircraft accident rate, however,
remains considerably higher than the global average. The Abuja Declaration
commitments by African governments must be followed up with action to
increase compliance with ICAO standards. IATA is moving forward with
assistance for airlines that are eligible for the IATA Operational Safety Audit
(IOSA). For airlines ineligible for IOSA, a new IATA Standard Safety
Assessment (ISSA) has been developed.
Smarter Regulation African nations have an opportunity to enact
smarter regulation to enable better aviation connectivity.
Implementation of the Yamoussoukro Decision will open up air
routes within the continent and provide opportunities for more than 5
million additional passengers a year. Those African governments yet
to ratify the Montreal Convention 99 and Montreal Protocol 14
treaties, on global standard airline liability and the treatment of
unruly passengers respectively, should do so without delay.
Infrastructure The provision of appropriate infrastructure, offering
the right capacity at the right price, is essential for the growth of
sustainable air services across Africa. The International Civil
Aviation Organization (ICAO) has very clear guidelines on
infrastructure fundingand Africa has an opportunity to be a leader
in this field by developing its infrastructure in close consultation with
the industry.
Environment The industry is committed to meeting its carbon
emissions targets. In particular, our goal of carbon-neutral growth
from 2020 is of utmost priority. The negotiations for a global marketbased measure to tackle carbon emissions from aircraft are entering
a crucial phase ahead of the 2016 ICAO Assembly. It is vital that
African governments support a workable solution, in order for a
measure to be in place in time for the industrys 2020 goal of
carbon-neutral growth.
The opening session of the Aviation Day featured participation from
senior government and industry leaders including John Kipngetich
Mosonik, Kenyas Permanent Secretary for Infrastructure &
Transport; Dzifa Attivor, the Minister of Transport for Ghana; Barry
Kashambo, Regional Director Eastern and Southern Africa, ICAO;
Elijah Chingosho, Secretary General of AFRAA; and Gilbert Kibe,
Director General of the Kenya Civil Aviation Authority..
Lufthansa First Class now offers exclusive
travelling experience on the highway too
Lufthansa First Class passengers and Lufthansa Private Jet guests
can now enliven the waiting time before their next take-off with a
special experience by taking a Porsche 911 or Panamera for a
spin through Munich, the sub-Alpine landscape or Lower Bavaria.
The Porsche First Class Excitement offer is available for all
Lufthansa, Swiss or Austrian Airlines passengers, Lufthansa HON
Circle members or Lufthansa Private Jet guests who possess a
valid First Class boarding ticket for that day. With Lufthansa First
Class, we offer our customers the highest travel quality. This is
suitably complemented by the exclusive offer from Porsche, which
turns the waiting period before take-off into a luxurious experience,
says Thomas Klhr, the Lufthansa Passage Executive Board
member for Finances & Munich Hub.
And this is how it works: The Lufthansa First Class Personal
Assistant accepts reservations in the First Class Lounge and
arranges the car rental. Passengers can book their sports car online
before the flight, or make a spontaneous on-the-spot decision as
long as the chosen offer is available.
Back at the airport, your First Class flight starts as usual. A
limousine takes passengers straight to the apron position beside the
aircraft. Once on board, the passengers enjoy First Class menus by
famous star chefs and a selection of premier wines. A bed two
metres long rounds off a relaxed flying experience.
Ryanair remains Europe's most popular airline
The International Air Transport Association's (IATA) World Airline
Transport Statistics confirmed on Tuesday that Ryanair remained
Europe's favourite airline, carrying more international scheduled
customers than any other company.
To celebrate the news, Ryanair released 100,000 seats for sale
across its European network, at prices starting from 19.99 for
travel in July & August that will be available for booking until 25
According to forecasts, Ryanair will carry more than 100m
customers in 2015.
The Irish Budget airline carried over 86.3m international passengers
last year, 30m more than second-placed Easyjet (56.3m) and
almost 40m more than third-placed Lufthansa (48.2m). Emirates
was the fourth most popular airline, followed by British Airways,
Air France and Turkish Airlines.
The Association also commented that passenger travel on
international markets rose 3.8% in April compared to a year ago,
slower than the 4.6% result in March.
In addition, there was a rise in premium international air travel
volumes in April compared to March, but given developments in
demand drivers and the inherent month-to-month volatility in the
data, this does not necessarily mean an upturn in the trend, it said
in a statement.
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Jet Airways Jumps Second Day Even as Etihad
Denies Stake Report
Jet Airways India Ltd. surged a second day even after
Etihad Airways PJSC denied television reports that it may
boost its 24 percent stake in the company.
The shares jumped 5 percent on Wednesday to 300.05
rupees as of 10:12 a.m. in Mumbai after climbing as much
as 6.8 percent earlier. Etihad said Tuesday it isnt in talks
with the government about raising the stake. Jet Airways
said yesterday the television reports are incorrect.
Bloomberg TV India reported Tuesday that Etihad
approached Indias Aviation Ministry for permission to raise
the shareholding, and that the administration isnt keen on
giving approval. The report cited unidentified government
Mumbai-based Jet Airways sold a 24 percent stake to Etihad
in 2013, becoming the first Indian carrier to receive
investment from a foreign airline after the government eased
rules. Theres now more competition in India after the local
ventures of AirAsia Bhd. and Singapore Airlines Ltd. began
Avianca Brazil set to join Star Alliance
Avianca Brazil is expected to become the newest member of
the Star Alliance family this week.
Star's 27 member airlines, who are currently gathered in
Warsaw for the twice-yearly Chief Executive Board Meeting,
will vote on Wednesday June 24 to approve the Brazilian
airline's seat at the table, joining its Colombian-based
sibling Avianca.
The move will fill a hole created in the South American
market when Brazil's TAM merged with Chilean airline LAN
to create LATAM, and left Star Alliance for Oneworld, which
also counts Qantas among its members.
"TAM leaving left a gap, so we need a second carrier to
replace TAM" Star Alliance CEO Mark Schwab has
previously noted.
Avianca Brazil is primarily a domestic airline, with flights to
some 20 cities in Brazil plus the Colombian capital
of Bogota.
The Avianca group comprises a clutch of South American
airlines and is the continent's second-largest airline after
Star Alliance has also been scoping out Brazil's Azul Airlines
to bolster its position against Oneworld.
John Smiles
Ryanair is flying high but is it a good investment?
Ryanair released its annual results for year ending 2015 on Tuesday, 26th
May. The results were exceptionally strong and beat both Ryanair
management's earnings guidance and the estimates of investment analysts.
Revenues grew by 12% to 5.64bn with net income up 6% to 867m and its
net income margin improved to 15%, compared to 10% in 2014.
Ryanair's strong operational performance was driven by its newly launched
"Always Getting Better customer focused strategy which has helped improve
customer satisfaction levels; its low fares offering; its best "on-time arrivals
record in the industry and its renewed focus on primary airports. This has led
to higher levels of repeat customers and improved efficiency.
Ryanair carried an additional 10.5 million passengers last year totalling 90.6
million, and aims to fly more than 100 million passengers this year, which
would be a historic milestone.
The airline's operational efficiency also improved significantly and its Load
Factor grew 6% to 88% in the year. Management forecasts a further 2%
improvement to 90% in the current year.
Ryanair has continued to take market share off its Low Cost Carrier (LCC)
competitors such as EasyJet, Aer Lingus, Air France and Lufthansa as
competitors struggle to compete with Ryanair on average fares (?47 vs.
156). Ryanair can sustain these lower fares because of its much lower cost
per passenger (Ryanair 29, EasyJet 52 and Lufthansa 74 average cost
per seat).
Ryanair expects to capture strong market share gains in German and other
key markets throughout Europe as traditional flag carriers cut capacity.
From a shareholder point of view, Ryanair returned 630m through dividends
and share repurchases during the year and in addition, the company grew its
net cash position by 200m to 364m. This very strong net cash position
coupled with its strong Free Cash Flow generation ability will likely lead to
increased special dividends and share repurchases in the future.
Analysts maintain a positive outlook for Ryanair given the airline's strong
growth outlook, high cash generative ability, strong management and
potential for further shareholder returns.