Ryanair Holdings (RYA) raked in £7.7million a day in extra charges from its passengers over the summer holidays. A surge in the number of people paying extra to reserve a seat or bring a second bag on board helped the budget airline generate £1.4billion from add-ons in just six months. In results posted yesterday, the Irish-based carrier revealed the amount it generated from ‘ancillary sales’ soared by 28% in the six months to the end of September. Ryanair flew 86million passengers in that time, 11% more than during the same period last year. In a statement to the stock market, the airline said ‘more guests chose priority boarding and preferred seat services’, but critics say passengers are effectively being forced to pay extra following a crackdown on cabin baggage.
International Consolidated Airlines Group SA (CDI) (IAG) has agreed to buy Spanish rival Air Europa for €1billion (£860million), in another round of consolidation in the market. IAG, which also owns two Spanish carriers – Iberia and Vueling – said it is looking to turn Madrid airport in a ‘true rival’ to the four major European airports of Amsterdam, Frankfurt, Heathrow and Paris Charles De Gaulle. The group said Air Europa – which has 66 planes and flies to Europe, Latin America, the United States, the Caribbean and North Africa – will retain its name for the time being. IAG boss Willie Walsh said the acquisition would generate additional financial value for shareholders as the group would become more cost efficient and a significant player in the Europe-to-Latin America and Caribbean markets.
Mothercare (MTC) has brought in restructuring experts from accountancy giant KPMG, raising concerns for the future of its 79 stores and 2,500 staff. The retailer, which fell to a £36.3m loss and shut 55 stores last year under a controversial company voluntary arrangement (CVA), has been trying to sell its UK arm. The company is now considering closing more stores or asking landlords for rent cuts, but a sale is believed to be preferred, The Sunday Times reported. Mothercare boss Mark Newton-Jones wants its UK stores to become franchises, to mirror its profitable international business – effectively turning the retailer into a branding and product supplier.
Takeaway.com has changed its bid for fellow food delivery service Just Eat (JE.) in order to fight off competition from another suitor. In the latest chapter of a battle for Just Eat, Amsterdam-listed Takeaway.com tabled an offer that will go through if 75% of Just Eat shareholders accept. The threshold could be dropped as low as 50% plus one share. It was previously structured as a ‘scheme of arrangement’, which required 75% of both companies’ shareholders to vote in favour. Takeaway.com’s move comes as it tries to fend off interest from rival suitor Prosus, the Dutch arm of South African technology giant Naspers, which gatecrashed the deal with a £4.9billion hostile bid.
