A new strategic plan announced by Iberia last week contains good news for the cabin systems industry. It pledges an investment of Eur150 million in an economy-class upgrade and a new long-haul business class product, along with other passenger service improvements.
Reporting its 2008 financial performance, the Spanish carrier said it had made a Eur32 million profit, the 13th consecutive positive annual result. The airline stayed in the black despite having to spend Eur1.7 billion on fuel, 46 per cent more than in 2007. The pain was eased slightly by a Eur241 million reduction in non-fuel operating costs as a result of the route rationalisation and other economy measures initiated by the airline’s 2006-08 strategic plan.
Iberia says the targets in the plan were met or even surpassed – revenues by eight per cent, profits by 54 per cent – to leave the business valued at a net Eur1.6 billion and well placed to withstand the recession. The new 2009-11 plan aims to restore earlier levels of profitability and achieve 15 per cent growth in pre-tax earnings.
The airline says the plan is focused mainly on growing revenues via improvements in customer service while continuing to trim costs and capacity. A total of Eur150 million is earmarked for “a comprehensive renovation of tourist class, launch of a redesign for long-haul business class, remodelling of VIP lounges at key airports, streamlining of boarding procedures for business travellers, changes in all processes, and a determined effort to improve the treatment of passengers.”
The DoD has changed its structures and is been increasing efforts to facilitate access to loans by companies interested in working with artificial intelligence, advanced materials and semiconductors, biotechnology and quantum science.
India has approved millions of dollars in new military purchases, most of which will go to public sector companies.
The main obstacles to overcoming risks in the region are a lack of a strong cybersecurity culture and inadequate funds to invest in this domain given a widespread Chinese presence in the region.
MBDA is adapting to supply chain pressures as the Russian invasion of Ukraine leads to increased demand for armaments.
Despite the additional funding promised this week, the UK armed forces still look set to face cutbacks, and maintaining international commitments to AUKUS and GCAP may limit the options for other programmes.
This week on the Shephard Defence Podcast, senior naval reporter Harry Lye and military training & simulation reporter Norbert Neumann chat with Professor John Louth.
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