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"Sell airlines. Buy airports"
Issues
...and the reason for this statement? The financial performance of airlines as a whole has been very poor for shareholders.
There are of course exceptions with some highly profitable carriers and some periods when many airlines have made attractive
rates of return. Nonetheless, many investors are still attracted to the sector, while many governments wish to
dispose of their national airline.
Crises come and go for airlines, but the average long term incremental unit
revenue that needs to be achieved by an airline is often greater than the market clearing price for its seats, so that with
a perishable product in a competitive market, yields are always under pressure. Different carriers have different strategies
for responding to this situation, some seeking premium traffic prepared to pay for premium service, while others go for volume
and low costs. Many seek economies of scale by establishing commercial links with other carriers on a route or network
specific basis, by merging or by joining an alliance.
Services
Privatisation and commercialisation strategies
Commercial
and operational due diligence
Traffic forecasting and development of business plans
Experience
Operational
and Commercial due diligence on Royal Jordanian prior to privatisation
Lead technical witness for Alitalia during successful
arbitration with KLM on termination of alliance
Valuation of Heathrow slot holding for major global airline
Commercial
and operational due diligence of a European charter airline for an investor
Review of cost allocation principles for
South African Airways
Development of Five Year plan for Tarom Romanian Airlines
Feasibility study for a west African
LCC for a leading private equity fund
Operational and commercial review of eastern European LCC
Valuation of Ryanair
for a potential investor
Preparation of Five Year plan for THAI Airways International
Vendor due diigence on traffic
and revenue prospects of VLM prior to sale to Air France
Advice to Aer Lingus trade unions on selection of a strategic
partner
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