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Aeroflot not considering stakes in foreign airlines; Cimber Sterling gains as SAS falls

31-May-2010

European airline shares were mixed on Friday (28-May-2010) as wider markets slipped and oil prices declined 0.8% to USD73.97.

In key markets, UK’s FTSE (-0.1%), France’s CAC (-0.3%) ended the session lower, while Germany’s DAX (+0.2%) rose slightly.

Aeroflot not considering stakes in foreign airlines

Aeroflot (-1.1%) fell. CEO, Vitaly Savelyev, confirmed the carrier no longer has any interest in acquiring shareholdings in carriers outside Russia. The carrier considered purchasing shares in Alitalia, Austrian Airlines and JAT Airways in the past. But it recently agreed to take control of six regional carriers from state technology company, Rostekhnologii. A structure of that agreement has not been finalised.

Also in Russia, the country’s Federal Aviation Agency reported a 32.4% year-on-year rise in passenger number for Apr-2010, to 3.8 million. Load factor also rose 6.2 ppts to 76.1% for the month.

Turkish Airlines agrees to wage increases

Turkish Airlines (+2.8%) gained after avoiding strike action from its staff last week. The carrier agreed with Hava Is, the union representing 11,000 workers at the carrier, to a 6% wage increase over the first half of 2010 and a 5% wage increase over the second half of the year.

The union last week gave Turkish notification of its intent to strike over wages and working hours. The notification triggered a 60-day negotiation period. Under Turkish law, six-days notice is required before a strike can be held.

Cimber Sterling gains, SAS falls

Elsewhere, Cimber Sterling (+7.7%) was the biggest gainer of the day, shrugging off a 0.7% fall in the Copenhagen Stock Exchange. All other Nordic stock exchanges moved higher. However, SAS (-3.5%) closed lower.

Europe Airline Daily reports the very latest on what’s happening in the European aviation market, including news on routes, fleets, traffic and financials. Stories featured in today’s issue include:

Europe selected airlines daily share price movements (% change): 28-May-2010


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