Ryanair pulls out of deal with Boeing
Budget airline Ryanair has today revealed it has pulled out of talks with aircraft giant Boeing after the pair were in discussions about a potential 200 aircraft order. While the company has suggested talks ended because the pricing or contractual terms conditions were not to its liking, it is common knowledge that the UK industry is struggling and literally every penny will count in the weeks and months to come.
While there is no suggestion that Ryanair is in financial trouble, there is a need for all airlines to pull back on investment in the short term and concentrate on consolidating their position in the business arena. Ryanair has been one of the more successful budget airlines of recent times although the collapse of Flyglobespan earlier this week has impacted upon confidence in the sector.
As with the UK banking sector, the UK airline industry which will leave the ongoing recession will be a very different animal to the one which entered the recession. The UK business arena itself will be a much scaled-down version of the "excessive" model we saw before the recession although no doubt those excesses will return in due course once the memories of the recession have faded.
Share this..
Related stories
Glossary Of Investment Terms (A)
ABI
As the name suggests, the Association of British Insurers (ABI) is an association which represents British insurers who are one of the largest investors in stocks, shares and other investment assets in the UK. The ABI is a very influential association and one which carries an awful lot of sway in the UK.
Accumulation Date
The date when income will be paid by...
BSkyB forced into a corner over ITV stake
A three-year battle to overturn a UK competition commission ruling that BSkyB should sell down its 17.9% stake in competitor ITV looks like coming to an end. The Court of Appeal yesterday upheld the competition commission ruling that BSkyB should sell its 17.9% stake down to 7.5% due to "undue influence" the stake gives the company over ITV. While BSkyB has 28 days to consider a further appeal...
Read MoreQatar Holdings reduces stake in Barclays bank
Qatar Holdings (the investment vehicle of the Qatari royal family) has today announced plans to reduce its significant shareholding in Barclays bank. The group will exercise various warrants to acquire 379 million shares at an exercise price of 197.55p and fully intends to sell the shares into the open market. As a consequence, Barclays bank shares fell by just under 5% this morning although this...
Read MoreMoody's warns of problems in UK brewing sector
Credit rating agency Moody's has confirmed that the bleak outlook for the UK pub sector could continue for some time to come with many of the U.K.'s biggest pub owners facing significant cash flow issues as debts continue to mount and business levels continue to tail off. So how will this impact upon the UK pub sector in the short to medium term?
Even though the rate of pub closures...
BSkyB agrees to sell part of ITV stake
After a very expensive two-year legal battle BSkyB has finally agreed to sell around 10% of the company's near 18% stake in ITV. The situation can be traced back to the Competition Commission ruling back in 2008 which concluded that BSkyB could have undue influence over ITV it was able to maintain its 17.9% stake. The overall state stake is now running at a loss of £330 million and has been nothi...
Read More