The Morning Briefing: Aviation and the Olympics, private sector, profits
"The Morning Briefing" is SmartPlanet's daily roundup of must-reads from the web. This morning we're reading about the aviation industry.
1.) How can the aviation industry expect to perform in 2012? With rising fuel costs and a volatile economic landscape, what do two key aviation bodies predict will happen in 2012? Global airline organization IATA and European air traffic body Eurocontrol predict a number of scenarios, including flight cutbacks, ticket price rises and passenger declines.
2.) How profitable is the private sector within aviation? The Director General of the Nigeria Civil Aviation Authority (NCAA), Dr. Harold Demuren, has urged the private sector to invest in the aviation industry, promising that such moves would be highly profitable and lucrative investments. It has also been suggested by NCAA that Nigeria's air transport sector is one of the fastest growing in the world.
3.) Will the Olympics disrupt business-class demand? The owner of British Airways, Willie Walsh, has warned of impending disruption to services caused by the Olympic Games -- especially within the lucrative business market. Apart from disrupting the normal flow of business, it is a common trend for business travelers to reschedule in order to avoid flying issues. It is also expected that BA will be introducing a fare hike this year due to rising fuel costs.
4.) BBA Aviation underlying earnings up 13 percent. BBA Aviation experienced an underlying pre-tax profit increase of 15 percent, to $170.2m last year. Revenues surged by 17 percent at $2,136.7m while underlying earnings before tax, interest, depreciation and amortisation rose by 13 percent, at $260.5m. Net debt levels have also fallen.
5.) Jet Aviation acquires Enterprise Jet Center FBO at Hobby Airport. At Hobby Airport in Houston, Texas, Jet Aviation has acquired the Enterprise Jet Center FBO (fixed-base operator). This move has meant the acquisition of its 14th FBO to a global network of premium aircraft services and support. The Enterprise Jet Center provides fuel, catering, cleaning, repair and overhaul services to private aircraft.
Bonus: American Airlines announces nonstop service between Washington Reagan - Los Angeles
Image credit: Enrique Galeano Morales
This post was originally published on Smartplanet.com