Market News
AMR (AMR)
U.S. legacy carriers like American Airlines, parent AMR (NYSE:AMR) are getting eaten up by their budget-carrier rivals, losing significant market share to the younger upstarts over the last six years, according to data released Monday from AirFinancials.com, said MarketWatch. Between 2003 and 2009, domestic capacity at the legacy airlines have declined by 85 billion available seat miles (ASM), or by 21%, on average. Over the same period, capacity among low-cost carriers added over 84 billion ASMs.
"The challenge for the old legacy airlines is to find a way to be cost competitive with these growing domestic carriers that have never incurred some of the legacy expenses," AirFinancials.com said
Mar 8 · 3:09:00 PM · Source: MarketWatch
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by Steve Wieczorek
Allegiant Travel Company (ALGT)
Allegiant (NASDAQ:ALGT) to acquire six Boeing B757-200s according to the Center for Asia Pacific Aviation. Allegiant's shares slipped 0.2% yesterday, as the carrier signed a forward purchase agreement to acquire six B757-200 aircraft, signalling a change from a single-aircraft fleet of MD-80s. The introduction of the B757 aircraft will enable Allegiant to expand its leisure travel strategy into Hawaii, a market which it cannot serve with its existing fleet of MD-80s.
Allegiant expects to invest between USD75 million and USD90 million through 2012 acquiring and preparing this fleet for service. The LCC currently operates 46 MD-80 aircraft and expects to have 54 aircraft in service by the end of 2010
Mar 8 · 2:50:00 PM · Source: Center for Asia Pacific Aviation
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by Steve Wieczorek
JetBlue Airways Corporation (JBLU)
Fitch Ratings affirmed the Issuer Default Rating (IDR) for JetBlue Airways (NASDAQ:JBLU) at 'B-' and the senior unsecured rating, which applies to approximately USD470 million of convertible notes, at 'CC' with a Recovery Rating of 'RR6', according to the Center for Asia Pacific Aviation. The airline's rating outlook has been revised from 'Negative' to 'Stable'. JetBlue’s shares slipped 0.2% on Friday.
Fitch stated the affirmation of JBLU's ratings and the outlook revision reflect its view that the airline is in a “good position to deliver improved operating results and a second consecutive year of positive free cash flow (FCF) as the economy recovers in 2010”.
Mar 8 · 2:22:00 PM · Source: Center for Asia Pacific Aviation
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by Steve Wieczorek
Southwest Airlines (LUV)
Southwest Airlines shares gained 0.6% on Friday, upon the release of the carrier’s Feb-2010 traffic results according to the Center for Asia Pacific Aviation. Southwest stated weather-related flight cancellations during the month reduced passenger revenues by an estimated USD15 million. Comparatively, Continental and US Airways have estimated losses of USD25 million and USD30 million, respectively, due to the February storms, which caused airlines to cancel thousands of flights and resulted in delays to many others.
However, the low cost carrier's (LCC) passenger revenue per available seat mile (PRASM) is estimated to have increased in the 16-17% range in the month (although these results were partially a result of the cancelled services). Southwest has reported strong growth in unit revenue since Sep-2009, with Feb-2010’s PRASM levels the highest since Southwest emerged from PRASM declines in Aug-2009.
Mar 8 · 2:16:00 PM · Source: Center for Asia Pacific Aviation
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by Steve Wieczorek
Coca-Cola (KO)
The main trade association representing Coca-Cola Co., PepsiCo Inc., and other beverage companies plans to release a report Monday showing that sales of soda and other drinks in U.S. secondary schools have dropped sharply since 2004, in a sign that efforts to improve nutrition in schools are progressing. Sales volume of beverages shipped to schools from bottlers fell 72% between the first semester of the 2004-05 school year and the first semester of the current academic year, according to the report, which was compiled for the American Beverage Association by economic research firm Keybridge Research LLC. The report showed a 95% decline in sales volume of full-calorie soft drinks, such as Coca-Cola and Pepsi-Cola, and a 94% decline in juice drinks. Full-calorie soft drinks accounted for just 6.8% of beverage volume shipped to schools last semester, while they made up 40% of the product mix in 2004.
This is great news for the health of kids in the country. I wouldn't worry too much about the sales decline for Coke and Pepsi - over time they will figure out how to sell more healthier drinks in the schools.
Mar 8 · 1:20:00 PM · Source: Wall Street Journal
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by Rich Pike
Cablevision (CVC)
Cablevision said it would agree to government calls for
binding arbitration with ABC Disney in order to immediately return ABC to
Cablevision customers. ABC Disney pulled ABC off Cablevision as negotiations continued on a new agreement, removing the channel
from more than 3 million New York area homes. The channel was reinstated Sunday night in time for the Oscars.
Cablevision has been able to reach agreement with every other major
broadcaster in New York, and has proposed to ABC Disney terms for ABC that
are as good or better than the terms in all these agreements.
Mar 8 · 1:11:00 PM · Source: Reuters.com
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by Rich Pike
Ford (F)
With the rapid convergence of in-car technology and the Internet, Ford said today it is offering a suite of security features to protect the personal information of millions of Ford owners from the threat of computer hackers and viruses. Ford's popular SYNC system allows owners to connect
digital media players and Bluetooth-enabled mobile phones to their vehicle's
entertainment system and operate them with voice commands. The mobile phone
also is a gateway to a number of Internet "cloud" services through SYNC's
Traffic, Directions and Information application that provides turn-by-turn
directions, business searches and more.
Ford is adapting methods and technologies most often associated
with the fast-paced IT world to secure its mobile device-to-car connections
from unwanted entry. Think firewalls, virus protection and
password-controlled access.
Mar 8 · 1:05:00 PM · Source: Reuters.com
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by Rich Pike
McDonald's (MCD)
McDonald's Corporation today announced global comparable sales growth of 4.8%in February. Performance by segment was as follows: U.S. up 0.6%; Europe up 5.4%; Asia/Pacific, Middle East and Africa up 10.5%.
In Asia/Pacific, Middle East and Africa (APMEA), comparable sales rose 10.5% for February, led by strong results in Japan, China and Australia. The celebration of Chinese New Year in many markets contributed to the month's performance. Throughout APMEA, consumers continued to respond favorably to the region's compelling value offerings, great tasting premium menu selections and relevant convenience.
Mar 8 · 12:59:00 PM · Source: Company Press Release
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by Rich Pike
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