Fusiones y Adquisiciones

📍 Over 100,000 tourists visited the Badaling section of the Great Wall of China on October 3, causing up to two-hour-long traffic jams during Golden Week. Badaling, 70 kilometers northwest of Beijing, is a well-preserved and famous part of the wall. During Golden Week, China experienced 1.9 billion domestic trips, with 155 million train tickets booked online. Golden Weeks, aimed at boosting tourism and domestic spending, occur during Chinese New Year and from October 1-7, the latter marking the anniversary of the People's Republic of China's founding in 1949.

✈️ Boeing, the American aircraft manufacturer, faces a critical economic situation with ongoing losses of $6 billion due to a month-long strike. The company announces urgent measures including the dismissal of 17,000 workers (10% of its workforce), the end of Boeing 767 cargo plane production, and an additional year delay for the 777X—a competitor to the A350. This delay, unrelated to the strike, stems from a material flaw connecting engines to wings, affecting clients like Emirates and Lufthansa. The 767 production halt will result in $3 billion in losses due to unmet signed commitments.

✈ Privatization of TAP, Portugal's state airline, set for the first half of 2025. Meetings held in Lisbon with Air France-KLM, Lufthansa, and IAG, owner of Iberia and British Airways. The Portuguese Prime Minister is finalizing interviews with potential candidates and aims for a complete sale, despite opposition calling for a partial privatization. Sale conditions to be established by December this year, focusing on Lisbon's future as a hub.

✈ Ryanair to reduce its presence in Germany by summer 2025 due to taxes and airport charges, impacting flights across many locations. The airline will exit Dortmund, Dresden, and Leipzig, with operations primarily serving Mediterranean tourist destinations, especially Spain. Operations will be cut by 60% in Hamburg and 20% in Berlin, favoring competitor EasyJet in Berlin. Ryanair will cease to operate 22 routes serviced this summer and overall flights in Germany will decrease by 12%.

🛫 Air France flight AF662 from Paris Charles de Gaulle to Dubai encountered missiles overhead on October 1, in the afternoon around 17 UTC. The Boeing 777 300, registration F-GSQU, was flying north to south into the Persian Gulf. Following this, flight AF218 to Mumbai returned to Paris, and flight AF257 from Singapore to Paris landed in Delhi for refueling due to a route change necessitated by the situation. French media report a lack of direction from air traffic control, while U.S. media indicate a forewarned missile launch, corroborated by Israeli alerts. An investigation has been initiated in France regarding the risk exposure of the flight.

🚀 Jet2's Boeing 737 en route to Tenerife Sur from Stansted Airport faced a tense situation when dealing with a "highly disruptive" passenger. The crew had to shorten the route for a rapid landing and aborted the approach twice due to wind shear, diverting to Gran Canaria Airport, where the plane landed without further incidents. Upon arrival, police authorities awaited to evacuate the disruptive individual.

✈ Air France's smallest airline aims to cut costs by €450 million annually to restore profitability. Measures include enhancing productivity, reducing expenses, simplifying organization, postponing non-urgent investments, and exploring new revenue streams. Specific strategies comprise outsourcing, suspending non-core activities, introducing onboard products, expanding paid catering, considering maintenance outsourcing, operating fewer flights, and better aligning intercontinental and European flights. Productivity is expected to improve by at least 5% next year through automation, mechanization, and decreased absenteeism. No details on layoffs were provided.

🛫 Spirit Airlines' stock plunged on Friday due to bankruptcy rumors, while American Airlines' shares rose by 6% sharing many routes with Spirit. Spirit is negotiating an orderly payment suspension with creditors. US competition authorities blocked Spirit's merger with JetBlue, leading to a crisis at Spirit and a $192 million loss in the last fiscal year. Questions arise about the viability of low-cost carriers as Spirit operates 198 aircraft, including 54 Airbus A321s and 136 A320s.

✈️ Cebu Pacific, a low-cost airline from the Philippines, signed a deal for 70 Airbus A321 aircraft, with an option to purchase another 70. The contract was sealed in Manila by Cebu CEO Mike Szucs and Airbus's regional sales director Benoit de Saint Exupery. Cebu currently operates a fleet that includes 37 Airbus A320s, 19 A321s (13 of which are the neo version and the rest A321-200), and 9 A330-900s, in addition to 14 ATR 72s for shorter routes. The airline has previously operated the B757 but no longer has any Boeing aircraft. Airbus has been expanding its presence in the Far East, a region once dominated by Boeing.

🚀 Renfe acquires significant stake in Longitude, owner of Italian rail operator Arenaways, to manage regional lines in Italy from 2025, competing with Trenitalia. Begins in Piedmont region, with two lines: Cuneo-Saluzzo-Savigliano (28 daily services starting January 2025; 5,840 yearly trains; 160,819 km annually) and Ceva-Ormea (10 daily trains; 2,320 yearly; 81,200 km per train). Expands Renfe's presence beyond France and Czech Republic. Arenaways certified to operate in Italy until 2029, facilitating Renfe's compliance with regulations.