EasyJet/Wizz: battle for air supremacy

© Provided by The Week

“The pandemic has transformed the airline industry in unexpected ways,” said Nils Pratley in The Guardian. The Hungarian budget carrier Wizz Air (now valued at £5bn) is bigger in stock-market terms than easyJet, whose £3.25bn value now stands at roughly half its former level. Hence, perhaps, “Wizz’s cheeky takeover bid”, which, while swiftly batted away by easyJet, “will have come as a blow to the corporate ego”. All the more so since the airline’s dire finances have now forced it to go cap-in-hand to shareholders hoping to raise another £1.2bn via a rights issue. 

  • SEE MORE UK travel industry ‘choked’ by Covid restrictions
  • SEE MORE What does ethical travel look like now?

EasyJet has already raised £5.5bn of debt and equity since the pandemic started, and is currently burning through “£40m of cash a week”, said Lex in the FT. Prospects may look somewhat less “murky” if, as indicated, the Government moves to scrap heftily priced PCR tests (a serious travel deterrent) for the double-jabbed. But investors still “wary” of easyJet’s “post-pandemic growth story” could well view this rights issue as “a choice between being diluted out of the water or throwing good money after bad”. 

The difficult truth, said Matthew Lynn in The Daily Telegraph, is that “the glory days of low-cost flying are over”. Even assuming it becomes less of a hassle as the pandemic eases, aviation will be hard hit as we move to a net-zero economy. “Demand will never get back to where it was and neither will profits” – and that means industry consolidation. “The bright orange airline” still has a lot going for it, including a strong brand and a decent product, but sooner or later it will have to start finding partners. “If not, there will be higher offers – and it can’t tell them all to Wizz off.” 

Internet Explorer Channel Network
News Related

OTHER NEWS

Selena Gomez Privately Emailed Facebook Execs About Hateful Content Back In 2020

© Photo: Kevin Mazur/Getty Images for Global Citizen VAX LIVE Selena Gomez Selena Gomez slammed Facebook for not doing more to tackle hate speech in a private email sent to ... Read more »

Police in Haiti say brutal gang snatched 17 foreign missionaries

© Provided by Al Jazeera Children walk on the courtyard of the Maison La Providence de Dieu orphanage in Ganthier on Sunday where a notorious gang abducted 17 missionaries from ... Read more »

Bowen Yang Steals The Spotlight As Hilarious Oompa-Loompa In ‘SNL'

[tp_video id=”1f622e7a-2f63-11ec-9439-0242ac110006″] © Photo: Will Heath/NBC Bowen Yang as an Oompa Loompa and anchor Colin Jost during Weekend Update Rami Malek is earning rave reviews thanks to his turn hosting ... Read more »

Capital formation: States maintain robust capex pace, so do CPSEs

© Provided by The Financial Express The Centre also roped in CPSEs for pushing public capex, which is key to an investment-led economic growth revival. Aided by impressive growth in ... Read more »

Covaxin for children? Making trial data public will create trust in paediatric-use vaccines

© Provided by The Financial Express With very few Covid-19 vaccine candidates having received any form of approval for paediatric use across the globe—even those that have are restricted to ... Read more »

Statue of Robert E. Lee removed from Dallas park now on display at golf course

A statue of Confederate General Robert E. Lee that the city of Dallas removed from a public park is now on display at a golf course in West Texas, the ... Read more »

Receiving finance is key to SA's climate adaptation and mitigation plan, says Minister Creecy

While global leaders prepare to head to the global climate action conference COP26 in Glasgow, Scotland, at the end of October, South Africa has made it clear that climate financing ... Read more »

The fight is on for the heart and soul of Matatiele — can the AIC claw back votes in the town where the ducks have flown away?

The raison d’etre of the formation of the African Independent Congress more than 15 years ago has been to fight for the reincorporation of Matatiele, from the Eastern Cape to ... Read more »

$86M bus ‘war room' empty, falling apart two years after MTA ribbon cutting

The MTA spent $86 million on a “bus command center” that has been empty for more than two years. Brooklyn, we have a problem. The MTA spent $86 million on ... Read more »

T20 World Cup 2021: Team India mentor MS Dhoni joins squad for campaign after CSK's IPL 2021 win

© Provided by Zee News The iconic former India captain Mahendra Singh Dhoni on Sunday (October 17) joined the Indian team camp as its mentor for the T20 World Cup, ... Read more »

Qld cop in court over NSW border breach

A Queensland police officer accused of helping sneak his daughter across the NSW border while on duty has faced court for the first time. © Dan Peled/AAP PHOTOS A Queensland ... Read more »

Mayor and community elder to appear at IBAC hearings

The mayor of a council in Melbourne’s north-east and a respected community elder will be questioned at public anti-corruption commission hearings this week as part of a major corruption inquiry ... Read more »

Lelaki tua dijel kerana cederakan pencuri yang rembat ikan dalam kolam. Ramai warganet luah rasa tak puas hati

USIA semakin lanjut lazimnya dihabiskan bersama keluarga tercinta. Apatah lagi ketika umur semakin senja, rasanya ramai yang meluangkan masa untuk bermain dengan cucu, beribadah ataupun memenuhi list percutian yang masih ... Read more »

Tottenham's Tang Jiali and Celtic's Shen Mengyu offer Chinese football pathway to better future

Former PSG player Wang Shuang of China celebrates scoring a goal with teammate Wang Shanshan. Photo: Reuters It is more than two months since one of the darkest hours of ... Read more »

Murder investigation into ‘shocking act of violence' as 14-year-old killed at Glasgow station

© Police Scotland Justin McLaughlin was rushed to Queen Elizabeth University Hospital, Glasgow, but could not be saved. – Police Scotland A murder investigation has been launched into a “shocking ... Read more »

U.S. Secretary of State Blinken discusses Afghanistan with Qatar

© Reuters/JONATHAN ERNST FILE PHOTO: U.S. Secretary of State Blinken in Washington (Reuters) – U.S. Secretary of State Antony Blinken spoke with Qatari Deputy Prime Minister and Minister of Foreign ... Read more »

FBI seeks information on New Zealand man who allegedly coerced women into making sexually explicit videos

The FBI is offering a $50,000 reward for information leading to the arrest of a New Zealand man who they say repeatedly coerced hundreds of women into making sexually explicit ... Read more »

Fantasy Football Early Week 7 Waiver Wire: Sterling Shepard returns as potential must-start WR

The Giants have been hit just about as hard as any team in the NFL by injuries, at least when it comes to the skill positions, and they lost Kadarius ... Read more »

Sleepy school board races are waking up to Covid and critical race theory debates

The Blue Valley School District in Johnson County, Kansas, boasts some of the top public high schools in the state. Generally, candidates for the school board sail to victory unopposed, ... Read more »

DC Metro pulling 60% of fleet for Blue Line derailment investigation

D.C. Metro is pulling more than half its fleet of railcars on Monday for an investigation into a derailment on the Blue Line last week. © Provided by Washington Examiner ... Read more »

Fauci says he is polarizing because he supports 'science, data, and hard facts' and not conspiracy theories

© The White House Dr. Anthony Fauci, speaking on June 22, 2021. The White House Dr. Anthony Fauci has advised the White House on COVID-19 since the start of the ... Read more »

Ahead of MC polls, civic body launches ‘Corporation Aapke Dwar'

© Provided by The Indian Express The Chandigarh Municipal Corporation (MC) is set to begin service at the citizen’s doorstep with the ‘Corporation Aapke Dwar’ initiative, beginning from Sector 45 ... Read more »

'Home Town' Fans' Hearts Are Aching After Erin Napier Posts Rare Photo of Her Daughter With Ben

© Gary Gershoff – Getty Images Home Town star Erin Napier revealed that Ben was away on a business trip. She shared an adorable photo to show just how much ... Read more »

Bank of England boss warns of interest rate rise with energy prices up

© Provided by Daily Mail MailOnline logo The Bank of England gave another warning yesterday that it will raise interest rates amid the surge in the price of energy. Governor ... Read more »

‘Definitely a relief': Preps back in school after 74-day absence

Tens of thousands of Melbourne prep students have returned to school this morning after a 74-day absence, in a staged return to face-to-face learning that has been fast-tracked to account ... Read more »

Australia locked out the world. Now it's returning the favour

Through the rigours of COVID-19 lockdowns and lockouts, Australia’s psyche has lurched, shifting the outside world from opportunity to threat — and Australia’s political elite are eager to mine the ... Read more »

Tas three-day lockdown to end on time

Hobart and southern Tasmania are exiting a snap lockdown as scheduled, but some extra precautionary COVID-19 restrictions will remain. © Rob Blakers/AAP PHOTOS A three-day lockdown in southern Tasmania will ... Read more »

Concerns About Diversity as Black Staff Members Leave Congress

© Sarahbeth Maney/The New York Times While the 117th Congress is the most diverse yet, representation among congressional staff falls far short of reflecting the population of the United States. ... Read more »

Brian Austin Green Celebrates 1 Year with Girlfriend Sharna Burgess: 'Damn I'm Lucky'

Although Brian Austin Green‘s time with Sharna Burgess on Dancing with the Stars has ended, the couple’s romance is going strong. © Provided by People Matt Winkelmeyer/Getty Brian Austin Green ... Read more »

Junior partner in Australian coalition gov't says it won't rush into net zero

© Reuters/David Gray FILE PHOTO: Birds and a plane are seen flying above emission from the chimneys of a chemical plant located near Port Botany in Sydney By Colin Packham ... Read more »

No place in the world for stateless 4-year-old in Sarawak

© Provided by MalaysiaNow In the corner of a room in a shoplot in Sarawak, four-year-old Rayyan (not his real name) sits playing with two small toy cars. He pushes ... Read more »

Lane Kiffin should be next LSU coach with Ed Orgeron era ending

One of the best jobs in the country is opening. LSU, just two years removed from winning a national championship and going a perfect 15-0, is moving on from Ed ... Read more »

Sebi turns to big data to nail the smart violators

Mumbai: India’s capital markets regulator is casting its net wider to catch the savvier violators of the country’s stock market laws. While the Securities and Exchange Board of India so ... Read more »

Top banks raise India's flag in NDF market from GIFT City

At least seven lenders, including Axis Bank, HDFC Bank and ICICI Bank , are harnessing the GIFT City facilities to mark a robust Indian presence in the non-deliverable forward (NDF) ... Read more »

Auto, metals and IT stocks look strong: Analysts

Technical analysts see the Nifty heading to 18,600 this week and the Bank Nifty touching 40,000 — both hitting record highs in the process. Indian benchmark indices gained over 2% ... Read more »

Auto debit bounce rates for loan EMIs come down

Mumbai: In signs that asset quality is on the mend, the NACH debit bounce rates by value for September came in at their lowest level since the pandemic began. Data ... Read more »

Buying in under-owned stocks to keep the season of records going

Mumbai: Indian stock indices could extend their record-breaking rally this week as continued purchases by bullish domestic investors into under-owned stocks could keep the momentum going. With optimism around the ... Read more »

The independent Republic of Cape Town: Storming into a nightmare vision of the year 2045

CapeXit seems an attractive idea in some respects, given the total mess the ANC is making of the rest of South Africa. Yet, every time I’m tempted to join their ... Read more »

One weakness too many? State's years of failure enabled the disasters that beset us

While there are many reasons for the current weakness of our state, involving the pandemic, inequality and poverty, it seems clear the main reason is political. © Copyright (c) Daily ... Read more »

LA County wants Vanessa Bryant to take a psychiatric exam before trial to prove the leaked of photos of Kobe Bryant's helicopter crash caused her emotional distress

© Frazer Harrison/Getty Images Kobe Bryant and Vanessa Laine Bryant Frazer Harrison/Getty Images Vanessa Bryant, Kobe Bryant’s widow, is suing the Los Angeles County Sheriff’s Department. She says deputies leaked ... Read more »