British Airways and CitationAir by Cessna signed (14-Jun-2010) a relationship agreement to offer premium travel benefits to passengers on both sides of the Atlantic. CitationAir is a wholly-owned subsidiary of Cessna Aircraft Co (Wichita Business Journal, 15-Jun-2010). The new PrivateConnect service will provide BA customers with access to CitationAir’s fleet of Cessna Citation aircraft, at a pay-per-hour rate with no contract or long-term commitment. As part of the new association, CitationAir customers will receive complimentary chauffeured transportation from the FBO to the British Airways terminal when flying internationally on BA. PrivateConnect will be available to British Airways Executive Club members, passengers who have flown the airline in the previous 12 months and organisations that hold a corporate account with the airline. All trips going to or from a British Airways flight will include escorted transportation from the British Airways terminal to the CitationAir aircraft, or vice versa. [more]
British Airways announces new Atlantic service for premium passengers
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IAG's Capital Markets Day on 4-Nov-2016 was the first since its formation in 2011 when it lowered any of its medium term financial targets. It cut its 2016-2020 average EBITDAR goal, in spite of adding in Aer Lingus for the first time. This followed two cuts to 2016 operating profit guidance during the course of this year, as a result of "a tough operating environment". It has been hit by adverse currency movements, mainly resulting from the UK's Brexit vote, in addition to ATC strikes and terrorist events.
To its credit, IAG has responded to the more challenging trading conditions by lowering its planned capacity growth and capital expenditure during its 2016-2020 strategic plan. These steps are necessary if it is to have a chance of meeting its ambitious goal to sustain a 15% return on invested capital. This target is unchanged, despite the lower profit outlook.
In 3Q2016, IAG's rolling four quarter return on capital fell, after rising more or less continuously since it began to target this measure in 2013. It has consistently been more profitable than either of its two main European legacy airline group rivals (Air France-KLM and Lufthansa). Nevertheless, the downward step highlights the challenge in meeting its own demanding target.