easyJet to launch loyalty scheme
Reuters report that British low-cost airline easyJet will expand its holiday business and add a loyalty scheme as new CEO Johan Lundgren seeks to make his mark on the company after reporting strong first-half results. easyJet said on Tuesday it would invest more in easyJet Holidays, with Lundgren positioning the company to better compete against his former employer holiday company TUI and its rival Thomas Cook . Lundgren also said he would focus on attracting business passengers and introducing a new loyalty programme, strategies which he believes will drive higher returns for shareholders. The frequent flyer program will be launched in the next financial year he said on the BBC this morning.
Bloomberg report that easyJet Plc’s new chief executive officer put his stamp on the company, moving to boost the discount airline’s holiday unit and attract more business travellers while posting a smaller-than-expected first-half loss. easyJet said its pretax loss narrowed to 18 million pounds in the six months through March 31. Analysts had predicted a loss of 74 million pounds, based on four estimates.
Lundgren, who became CEO after Carolyn McCall left to run ITV , said easyJet had one of its “best results ever in the winter trading period.” The demise last year of Monarch and Air Berlin together with insolvency proceedings at Alitalia, reduced competition in a traditionally weak travel season. The first-half loss narrowed from 212 million pounds a year earlier as the collapse of rivals helped easyJet lift ticket prices and an early Easter boosted revenue. Excluding start-up costs for a new operation at Berlin Tegel airport the company would have posted a profit of 8 million pounds. Full-year pretax profit should be in a range of 530 million pounds to 580 million pounds, Lundgren said.
Airport wind limit review debated
It is urgent and legitimate to review the operational limits of Madeira’s airport, said the Vice President of the Regional Government, in the debate that is taking place in the Legislative Assembly this morning. Pedro Calado noted that “47 percent of the 500 flights that were affected already in the first four months of this year were only due to a difference of one or two knots in wind intensity.” Pedro Calado said he had some difficulty in understanding why it is that “with 15 knots of wind the airport is considered totally safe and with 16 knots is already dangerous”.
He said the regional government was “working on several fronts in order to find the best solutions that mitigate these constraints and translate into significant improvements for the economic context of our Region”. It also guarantees that “ANA, the entity that manages the airport of Madeira, is in perfect harmony with the Regional Government, and maintains that the revision of the wind limits is legitimate.”