Qantas,
Emirates form alliance
Qantas
Airways entered into an agreement with Emirates and inked a 10 year partnership
deal in an attempt to bolster its sagging international division. The Australian airline will now move its
European flights hub, currently in Singapore, to Dubai. It will coordinate with Emirates on pricing
of tickets, flight scheduling and will put in place a profit sharing model
effective April 2013. No equity will
change hands.
"This
is the most significant partnership the Qantas Group has ever formed with
another airline, moving past the traditional alliance model to a new
level," said Qantas CEO Alan Joyce. "It will deliver benefits to all parts
of the Group."
The
Australian airline’s international operations are under severe strain with the
international division alone losing AU $450 million in a year while the company
lost AU $245 million.
The
announcement of a new partnership had a positive effect on Qantas shares which rose
5.8 percent in late morning trade.
Qantas will
end its 17-year partnership with British Airways on March 31, 2013.
Entergy
Chairman and CEO to resign
Meanwhile, Entergy
Corporation(NYSE:ETR) has announced that Chairman and CEO J Wayne Leonard will
retire on January 31. Executive Vice-President
and Chief Financial Officer Leo Denault will take over. Leonard has been blamed for the slow
restoration of electric power after Hurricane Isaac. But company spokesman Chanel Legarde has
insisted that the two issues are unrelated, saying "The succession plan we
announced today is the result of ongoing conversations with the board of
directors that have occurred over many months."
Leonard
took over as CEO and joined the board of directors on January 1, 1999. He took up additional role of chairman in
2006.
"During
his tenure of financial leadership as CFO, the company delivered the highest
operational earnings per share and highest operating cash flow in company
history in 2011 and 2010, respectively," according to an Entergy press
release.
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