Turkish Airlines looks to expand in 2011; Lufthansa slips; Aeroflot makes marginal gain
Turkish Airlines (-2.8%) was one of the biggest falls of the day, despite stating during trading it plans to add 20 widebody aircraft to its fleet in 2011. The new aircraft are expected to help the carrier lift turnover to in excess of USD8 billion next year.
- Turkish Airlines plans to add 20 widebody aircraft to its fleet in 2011, aiming to increase turnover to over USD8 billion.
- Lufthansa is set to commence mediated talks with the UFO flight attendants union to resolve an ongoing wages dispute.
- flybe and Dart Group experienced a decline in their share prices at the end of trading.
- Aeroflot plans to sell a 51% stake in its subsidiary, Nordavia, to Taimyr Airlines.
- Aegean Airlines, El Al, and Aer Lingus saw an increase in their share prices.
- Turkish Airlines announced plans to launch services to ten new destinations in 2011, including Los Angeles, Shiraz, Valencia, Malaga, Erbil, and Basra.
The carrier also announced plans to launch services to ten new destinations in 2011. Among the new destinations are Los Angeles, Shiraz, Valencia, Malaga, Erbil and Basra. The carrier also plans to add destinations in China, France, Vietnam and the Philippines.
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Lufthansa to commence talks with flight attendant union
Lufthansa (-0.1%) also slipped on news it plans to commence mediated talks with the UFO flight attendants union on 20-Dec-2010, covering their ongoing wages dispute. The parties hope to resolved the dispute by mid-Jan-2011. Lufthansa wants to extend its existing wage freeze until the end of 2011, in return for guarantees not to cut staff until the end of 2012.
flybe (-3.1%) and Dart Group (-1.6%) were also down at the end of trading.
Aeroflot to sell stake in Nordavia
Aeroflot (+0.1%) made a marginal gain. It was reported during the day that the carrier plans to sell a 51% stake in Nordavia, its subsidiary that operates in the north-west of Russia. Aeroflot has reportedly approved the agreement under which Taimyr Airlines would acquire a 51% stake in Nordavia, which has failed to fit into Aeroflot's new development strategy. The Aeroflot board reportedly unofficially approved the agreement in Nov-2010 and will officially discuss the sale at the end of Jan-2011. Nordavia operates a fleet of 23 aircraft.
Elsewhere, Aegean Airlines (+3.3%) made the biggest gain for the day, with El Al (+2.6%) and Aer Lingus (+1.3%) also up.
Europe selected airlines daily share price movements (% change): 17-Dec-2010
Source: Centre for Asia Pacific Aviation, Yahoo! Finance & Reuters