Russian Prime Minister, Vladimir Putin, stated air travel in Russia is experiencing a boom, with passenger traffic now exceeding 2008 levels (Itar-Tass, 07-Jul-2010). The Russian Government has invested EUR1.2 billion in airports over the past two years. Russian passenger traffic increased 32.3% year-on-year over 1H2010.
Russian PM states country experiencing air travel boom
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"Chinese investors in Europe’s airports 2016": Europe is in favour again. A CAPA report
China is investing huge sums on its own airports – up to USD130 billion over the next 15 years - but Chinese inward investment to other countries for the same purpose elsewhere is not insignificant. While Africa, in particular, has been on the Chinese radar for years, Europe, where some of the first Chinese airport investments were, is once again in favour.
There is a wide range of investments in airport assets at all points on the scale, from global hubs to remote secondary level airports: a range of investment by organisations such as sovereign wealth funds – via giant retail companies and Big Data conglomerates – right down to smaller engineering companies and industrial concerns. And they are taking over large parts of the supply chain too, with catering suppliers like Gategroup and Servair either acquired or targeted, as well as ground handling companies such as Swissport.
A new 50-page CAPA report, "Chinese investors in Europe’s Airports 2016", addresses these issues and reviews the recent investment history.
Vueling NEXT Part 2: new CEO to lead IAG's LCC in restructuring bid to achieve IAG targets
Vueling's new CEO, Javier Sanchez-Prieto, is leading a programme ('Vueling NEXT') to improve its profitability, both through revenue enhancement and cost efficiency gains. Among other aims this hopes to reduce Vueling's high levels of seasonality, to raise aircraft utilisation and to improve labour productivity. Given ambitious financial targets by IAG – action is needed.
Part 1 of CAPA's analysis of Vueling examined its capacity growth and profitability trends since its acquisition by IAG in 2013. Vueling's operating margin and return on invested capital are on a downward trend, hence the new initiative to reverse these trends.
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