Tuesday, 3 June 2014

Etihad invests in Alitalia

Etihad 'ready to invest in Alitalia'

Jun 02, 2014 08:00AM GMT

 

Etihad 'ready to invest in Alitalia'

Etihad Airways has finalised the conditions it requires for a major investment in Alitalia following months of negotiations.

Etihad did not give further details, but in a TV interview Italy's transport minister said the UAE carrier was ready to invest around €600 million in the loss-making Italian flag carrier.

Reports say that Abu Dhabi-based Etihad will receive a 49% stake in Alitalia.

The deal needs to be confirmed by the board of Alitalia and other parties.

Alitalia has agreed as many as 2,900 job cuts under the deal and the Italian government has agreed to back a redundancy scheme for affected staff,Reuters reported.

Alitalia handles about 25 million passengers a year, but is weighed down by debts of about €800 million.

Etihad said in a statement that the Italian government “looks favourably” at a tie-up between the two airlines.

Etihad president and chief executive James Hogan said: “We are delighted to be able to move forward with this process and look forward to the successful conclusion of the proposed transaction with Alitalia.

“An equity investment in Alitalia will be beneficial not only for both airlines, but, more importantly, it will give more choice and broader travel opportunities to business and leisure travellers into and out of Italy.”

Alitalia chief executive Gabriele Del Torchio said: “This investment will provide financial stability and confirms Alitalia's key strategic role as an infrastructure player in the travel and tourism industry in Italy for long-term growth.”

The airline’s president Roberto Colaninno added: "We are delighted to move forward with Etihad Airways providing Alitalia with an ideal strategic partner enhancing the company's long term growth perspectives."


 

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Fastjet adds new board members

Richard Bodin among three Fastjet board appointments

Jun 02, 2014 08:39AM GMT

 

Richard Bodin among three Fastjet board appointments

African budget carrier Fastjet has named three board appointments and plans to recruit a non-executive chairman.

Chief commercial officer Richard Bodin, who previously served as a consultant with easygroup from the start of the project to develop the carrier in November 2011, is among the trio joining the board.

Bodin is a former managing director of Jet2Holidays and has also worked for Virgin Holidays and Lowcosttravelgroup.

Lawyer Krista Bates joins the airline as general counsel while chartered accountant Clive Carver becomes a non-executive director.

Chief executive and interim chairman Ed Winter said: "These appointments add strength to Fastjet's board as we continue our expansion beyond Tanzania.

"Richard was a part of the team that developed the original Fastjet business plan, and as chief commercial officer he has played a vital role working alongside me to prove the low-cost model can be successful in Africa. I have no doubt his input will be invaluable at board level.

"Krista has been providing legal services to Fastjet for the past 20 months through her role as a corporate consultant at a leading Nairobi law firm.

“Having Krista as a part of the team will be a huge advantage, given her wealth of experience and knowledge gained in both England and Africa.

“Clive adds essential and extensive city experience to the board as we move forward in this next phase of our development.

"We will announce the recruitment of a non-executive chairman in due course."

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Funding for Egypt

Saudi and UAE ready $20bn boost for Egypt's El-Sisi

Saudi and UAE ready $20bn boost for Egypt's El-Sisi
A supporter of Abdelfattah el-Sissi joins celebrations in Tahrir Square, Cairo, Egypt. Saudi Arabia and the UAE are thought to be preparing an aid package to support his government
Picture: AMR NABIL/AP
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By Andrew Critchlow5:47PM BST 01 Jun 2014

The oil rich Arab nations are looking to help Egypt's new leader and prevent the Muslim Brotherhood rebuilding a legitimate support base on the back of a weak economy.

Saudi Arabia and the United Arab Emirates are thought to be readying a financial aid package of $20bn (£12bn) to boost Egypt’s economy and support the incoming government of ex-Field Marshal Abdulfattah el-Sisi.

The oil-rich Middle East powerhouse Arab nations, which combined account for more than a tenth of the world’s supply of crude, have already held preliminary talks with authorities in Cairo to discuss how the line of funding will be structured, according to a report in the Arabic media over the weekend.

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Abu Dhabi has already pumped $4.9bn into supporting the economy in Egypt - the most populous Arab states in the Middle East - as it seeks to support Mr El-Sisi and prevent the Muslim Brotherhood from rebuilding a legitimate support base on the back of a weak economy. The government in Riyadh has also pumped almost $5bn into supporting the Egyptian economy already as it seeks to influence events in Cairo and prevent a reawkening of political unrest across the region.

The brotherhood has been banned as a “terrorist” organisation in Egypt since the overthrow of Mohammed Morsi.

Qatar’s support for the brotherhood movement especially in Egypt had driven a wedge between Doha, Saudi Arabia and a number of other Gulf states . However, all sides in the Gulf Co-operation Council agreed to resolve their differences on the issue last month.

Egypt’s economy - once seen as progressive in terms of liberalisation and foreign investment - has failed to recover since the ousting of former President Hosni Mubarak’s regime during the Arab Sprint uprisings which saw a number of governments in the region fall. El Sisi - who is backed by the army - is understood to have won 97 pc of the vote, according to state media last week.

Meanwhile, Egypt stock market plunged on Sunday amid reports that a new government would move quickly to impose a capital gains tax. The EGX30 benchmark index closed 4.22pc lower, or at 7,894.7 points, continuing to slide after trading was suspended after the broader EGX100 index fell by 5pc.

During the Arab Spring uprisings the Egyptian stock market was closed for a period of months.

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Friday, 16 May 2014

FCO warns of travel to Mombasa

Tui Travel customers evacuated from Kenya

May 16, 2014 07:43AM GMT

 

Tui Travel customers evacuated from Kenya

Thomson and First Choice clients are being evacuated on charter flights from Kenya’s coast after the Foreign & Commonwealth Office warned them to leave because of terror threats.

Thomson said on its website that the decision to repatriate all customers currently on holiday in Kenya was a “precautionary measure”.

Both Tui Travel-owned companies said they were cancelling flights to Mombasa until at least October.

Half of the tourists were due to leave yesterday from the international airport at Mombasa, Kenya’s main coastal city. The rest were booked on a second chartered aircraft due to fly home today. The company was understood to have about 500 clients in the country.

Other British tourists booked by other companies were not being evacuated, a holidaymaker staying a hotel on Diani beach south of Mombasa and outside of the FCO’s new alert zone, told The Telegraph.

The FCO warned on Wednesday that tourists should not travel to Mombasa city or to popular beaches to its north because of the threat of terrorism, and those already there should leave immediately.

A Tui Travel spokesman confirmed that it had evacuated all its customers from Kenya “as a precaution”, including those whose accommodation was outside the FCO’s alert zone.

"The Foreign and Commonwealth Office is now advising against all but essential travel to Mombasa island, Kenya," the company said.

"Thomson and First Choice have been continuously monitoring the situation as it developed and have been working very closely with the FCO and follow its advice at all times.

"As a result of the change in FCO advice, the decision has been taken to cancel all our outbound flights to Mombasa, Kenya up to and including 31 October.

“As a precautionary measure, we have also taken the decision to repatriate all customers currently on holiday in Kenya back to the UK.

"Our experienced overseas resort team are updating all our customers currently on holiday in Mombasa of the change in FCO advice."

The company added that customers due to fly to Mombasa before November should contact its call centre or their travel agent.

"We understand that many customers will be very disappointed about the cancellation of their holiday to Kenya," it said.

"However, in these types of situations we have to follow the FCO advice."

Muriithi Ndegwa, managing director of the Kenya Tourism Board, said: "We are indeed disappointed by the FCO's decision to enforce this advice against non-essential travel to some areas of Mombasa.

"We will work tirelessly with the British Government to demonstrate the enhanced security in place to ensure the safety of British visitors.”

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