Originally Posted by
SchmeckFlyer
Where have you heard this before?
Page 76 of the BA annual report:
The Group accounts for its investments in Iberia as an associate although the Group holds less than 20% of the issued share capital as the Group has the ability to exercise significant influence over the investment due to the the Group's voting power (both through its equity holding and its representation on key decision-making committees) and the nature of the commercial relationships with Iberia.
and
On June 9, 2006, the Group's shareholding in Comair Ltd, was reduced from 18.3% to 12.9%. Due to the Group's ability to exercise significant influence
the investment in Comair Ltd was accounted for by the equity method. In September 2006, the Group's shareholding in Comair Ltd decreased to 10.92%
and the Group no longer had the ability to exercise significant influence over the investment, at which time the investment was reclassified as an available-for-sale financial asset.
I for one was surprised to learn that SA loses money hand over fist on its European routes, especially in view of their prices virtually matching BA and VS ex LHR. It's because its planes sit on the tarmac for half a day at LHR, FRA, JNB, CPT etc and is the reason why 747s are out of the window.
I understood that JNB/CPT were the most profitable routes for BA and VS after Nigeria. Is this still the case?