TUI Group shareholder to increase stake; British Airways cabin crew still considering strike
European airline share movements returned to negative territory on Monday (30-Aug-2010) as wider markets closed marginally lower. Trading was quieter due the UK Bank Holiday, with investors remaining concerned over the global economic recovery.
Another rise in oil prices (+0.6%), to USD74.70, also sent airline shares lower.
TUI Group shareholder looks to increase stake
TUI Travel was flat for the day, despite parent, TUI Group, making its biggest rise in almost eight weeks after its largest investor, Alexei Mordashov, stated he wants a blocking minority stake in the company. Mr Mordashov’s S-Group Travel Holding GmbH filed for permission with the German Federal Cartel Office to increase its share in TUI from 15% to more than 25%. A regulatory decision is due on 27-Sep-2010. The group gained 5.1% for the day as a result.
See related CAPA Profile: Privatisation and Ownership
British Airways cabin crew still considering strike action
British Airways was also flat for the day. Cabin crew union, Unite, stated during trading that its members are prepared to renew industrial action over the carrier’s refusal to return travel perks to cabin crew that conducted a strike earlier this year and involve arbitrators in disciplinary procedures. Unite plans to meet with British Airways in early Sep-2010 to resolve the disputes. British Airways has not countenanced revoking its decision to reduce crewing levels on flights.
See related CAPA Profile: Industrial Relations
Lufthansa cabin crew negotiations delayed
Lufthansa (-0.4%) slipped after cabin crew union, UFO, delayed their seventh round of wage negotiations, due to take place over the first two days of this week. A new date for talks will be determined this week. UFO delayed the talks so that its new chief union negotiator could be briefed.
Elsewhere, Eurofly (-1.7%) continued to fall, followed by Norwegian (-1.4%) and Cimber Sterling (-1.2%), despite rises in Nordic share markets. Iberia (+0.4%), SAS (+0.4%), El Al (+0.3%) and Air France-KLM (+0.1%) were the only carriers to gain for the day. Iberia shares benefited from the carrier reporting a 2Q2010 net profit the day prior.
Europe selected airlines daily share price movements (% change): 30-Aug-2010