Category Archives: News

Etihad allows flyers to bid to keep adjacent seats empty

THERE are few things that airlines will not now put a price on. Even so, Etihad Airways has come up with an intriguing idea. The Adu Dhabi-based carrier is offering flyers the chance to bid to keep adjacent seats on a flight empty. Passengers can suggest the price they are willing to pay to block up to three berths, and the chance to stretch out a bit.

Anyone who regularly suffers the ignominy of economy-class flying knows that there is no finer feeling than discovering that a flight is half empty and that there is no need to sit cheek-by-jowl with fellow members of the hoi polloi. Most travellers can recount with glee a journey in which they found they had an entire row to themselves, could raise the armrests, and sleep soundly and horizontally for the duration of the flight. It is surely the only time that it is preferable to have a booked ticket in the middle column of seating. (A particularly pleasing <a…Continue reading
Source: Business and Finance

Qatar Airways wants a 10% stake in American Airlines

IT SEEMED, at first blush, to be a masterclass in how to bait a rival. For years, American Airlines, along with other big American carriers, has complained of “unfair” competition from Middle Eastern operators, which stand accused of taking state subsidies. On June 22nd one of those accused, Qatar Airways, said it planned to take an unsolicited 10% stake in the firm.

In a regulatory filing, it was revealed that Qatar, which reported a profit of $540m in 2016, wants to buy at least $808m of American’s shares. The move has not gone down well with some. Doug Parker, American’s boss, described it as “puzzling”. One airline union accused Qatar of “using enormous government subsidies to gain a greater foothold in US markets”. Adding “They’re coming after our routes, which means the jobs of our members are at stake.”

Politicking from America, in turn, has been making life tough for Qatar’s national carrier. This month Donald Trump backed the decision of several Gulf states to cut diplomatic ties with…Continue reading
Source: Business and Finance

Why the falling oil price isn’t hurting markets

INVESTORS could easily get confused about the impact of oil-price rises on the economy and markets. The story seemed to be clear: high prices bad, low prices good. The two great oil shocks in the 1970s were unambiguously bad for Western economies—ushering in stagflation and transferring spending power to the oil-producing countries. In turn, low oil prices in the late 1990s coincided with the dotcom boom.

But when oil fell in the second half of 2015, that was seen as a bearish sign for the global economy and markets. Now oil is falling again, with both Brent crude and West Texas intermediate dropping more than 20%. But the decline has barely made a dent in the upward march of the S&P 500 index.

The key to the differing market reaction is why the oil price is falling. Back in 2015, the fear was falling demand. Investors worried in particular that the Chinese economy was slowing. If that assumption had been right, demand for much more than oil would have suffered. The equity markets did not…Continue reading
Source: Business and Finance