Monday, August 31, 2009

JetBlue/Lufthansa seeking codeshare partnership, Ryanair, easyJet and AirAsia shares slip

31 August 2009

Lufthansa is not only actively securing its European partnerships. The German airline and JetBlue reportedly plan to file a request with the US Department of Transportation today seeking regulatory approval to enter a codeshare partnership.

Lufthansa acquired a 19% stake in the New York JFK-based LCC last year for USD300 million. JetBlue's shares gained 2.5% on Friday.

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In Europe, Air Berlin's shares slipped 2.0%. The carrier stated it plans to meet with Vereinigung Cockpit Union on 02-Sep-09 to discuss an improved pay offer to pilots at its LTU unit and seek to avert a strike. Also in Europe, easyJet and Ryanair shares were also weaker, down 0.7% and 0.2%, respectively.

In the Asia Pacific region, AirAsia shares slipped 1.5%, while Virgin Blue's shares soared 10.0%. Air New Zealand stated it is not planning to purchase a stake in or merge with Virgin Blue.

Virgin Blue, which is celebrating its ninth birthday, reported a full year net loss of AUD160 million (USD132 million) in the 12 months to Jun-2009 (hurt by falling passenger demand amid the "toughest operating conditions” in its nine year history and one-off costs (AUD74 million) associated with the launch of its long haul V Australian operations. See separate report: ‘Virgin Blue expects breakeven in FY2010 after sinking to a deep loss in FY2009

Selected LCCs daily share price movements (% change): 28-Aug-09

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