GOL, Brazil´s low-cost, low-fare airline, announces that its Board of Directors has given its operating company the green light to enter into a R$ 75.7 million loan with the BNDES (Brazilian National Economic and Social Development Bank).
The tenor of the BNDES loan is six years with an interest rate of 2.65 percent over the long-term borrowing rate, currently set at 8.15 percent in reais.
Brazilian authorities decided to advance to June the auction of Brazilian flag carrier Varig in a final effort to ward off the airline´s collapse, announced the National Civil Aviation Agency, ANAC.
The beleaguered airline burdened with debts of over $3 billion is currently under court supervised bankruptcy reorganization.
Worldspan, L.P. reported financial results for the first quarter ended March 31, 2006. The Company reported revenues for the quarter of $262.1 million, operating income of $54.3 million and net income of $36.5 million.
The company´s financial outcomes for the quarter benefited from a reduction in expenses of $11.3 million related to contractual payments that were received from certain former online travel agencies towards settlement of disputes.
Tourism Minister Felix Jimenez says that new investment in the tourism sector could reach $5.3 billion between 2006 and 2008, making tourism a leading force in foreign investment in the Dominican Republic.
Most of the investment is now going into expensive real estate developments, golf projects and marinas. As reported in local Spanish-language newspaper Hoy, there is concern that tourism at present is not benefiting the people.
British Airways has shown a 27 percent rise in annual profit. Europe´s third largest carrier also raised its forecasts for the year, with higher ticket prices and demand for flights offsetting soaring fuel costs.
The airline´s short-haul business is profitable for the first time in a decade as it tackles competition from low-cost carriers by cutting ticket prices.
Carlyle, the UK investment fund, has been Iberostar’s pick to sell its travel division to. Carlyle has inked an exclusive letter of intent with Spain’s Iberostar and only the final signature is missing for the British group to get a grip of the Spanish company’s business operations, currently owned by Miguel Fluxa.
The UK investment fund has reportedly shelled out over €900 million for Iberostar’s travel division that embraces the Iberojet tour operator, some 500 Iberia Travel Agencies and the Service Division. The Fluxa family will keep its reins on the hotel division, a segment that comprises more than 90 lodgings and over 58,000 rooms in 13 countries.