Willie Walsh News
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British Airways owner International Consolidated Airlines Group SA said it raised 390 million euros ($507 million) in convertible bonds to fund the takeover of Spanish discount carrier Vueling SA.
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British Airways parent IAG SA posted a wider first-quarter loss as the pound weakened against the dollar and euro and workers at Spanish unit Iberia staged 10 days of strikes over 3,000 job cuts.
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British Airways parent IAG SA acquired control of discount carrier Vueling Airlines SA for 123.5 million euros ($160 million) as Europe’s third largest airline group seeks to stem losses in Spain.
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British Airways parent IAG SA said it will buy 18 Airbus SAS A350 wide-body planes with a list price of almost $6 billion for the U.K. carrier.
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IAG SA Chief Executive Officer Willie Walsh, who led the company’s creation via a merger of British Airways and Spain’s Iberia, said he favors a further bout of consolidation to boost revenue while paring costs.
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Less than a year ago, Airbus SAS was struggling to secure orders for its biggest A350 variant as airlines decried the plane as flawed. Now the company is trying to figure out how to meet resurgent demand.
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Willie Walsh , chief executive officer of British Airways Plc , has caught the merger bug.
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British Airways parent International Consolidated Airlines Group SA pledged to push through a plan to shrink Spanish division Iberia by 15 percent and deliver a profit rebound this year following a group-wide loss in 2012.
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British Airways parent IAG won backing for its bid for Vueling Airlines SA from the Spanish discount carrier’s board after raising the offer by 32 percent.
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IAG Chief Executive Officer Willie Walsh said he’ll move forward with a cost-cutting strategy at the Madrid-based Iberia unit of Europe’s third-largest airline after unions spurned the latest plan to reduce headcount.
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