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Kuwait Info.

All-new Mercedes-Benz E-Class to set segment pace in Kuwait

May 28th, 2009

The new Mercedes-Benz E-Class, launched yesterday by Abdul Rahman Albisher & Zaid Alkazemi Co, authorized General Distributor for Mercedes-Benz in Kuwait, is the pacemaker when it comes to safety, comfort and environmental compatibility in its market segment.

Addressing a launch event at the Mercedes showroom in Shuwaikh yesterday, Horst J Neuber, General Manager, Albisher & Alkazemi Co, said, “We expect the new E-Class to be a firm favorite with our customers and build an even stronger following than the outgoing model.” The new E- Class will be available in Kuwait exclusively from Albisher & Alkazemi Co from May 26 onwards, he informed.
With its unique combination of driver assistance systems, this saloon further consolidates the leading position of Mercedes-Benz in the luxury class.

Features include a drowsiness detection system, Adaptive Highbeam Assist and the proximity control system which is capable of performing automatic emergency braking when there is acute danger of a collision. Mercedes-Benz has improved the already exemplary long-distance comfort of the E-Class even further in the new saloon, principally through the use of intelligent body shell technology with up to 30 percent greater rigidity, further improved seats and a newly developed suspension whose shock absorbers au
tomatically adjust to the current driving situation. The optional air suspension now works in combination with an electronic damping system.

For more than 50 years, the E-Class saloons and their predecessors have been acknowledged as trendsetters in the safety field. The new saloon continues this tradition with an unrivalled combination of the very latest assistance and protection system whose concept and development are based on what actually happens during accidents.

These technologies make the E-Class an “intelligent partner” able to see, feel, react reflexively in critical situations and if necessary act independently to prevent accidents or mitigate their consequences. With this concept, the new Mercedes model not only protects its own occupants, but also contributes decisively to the greater safety of other road users” said Palli Musthafa, Senior Manager Sales & operations, Albisher & Alkazemi Co..
Safety, comfort

The outstanding safety and comfort of the E-Class are matched by its environmental compatibility and economy: the four- and six-cylinder engines are direct-injection units, and consume up to 23 percent less fuel than before.

Petrol engines
Mercedes-Benz equips the BlueEFFICIENCY models E 200 CGI and E 250 CGI that will arrive later this year with the newly developed four-cylinder direct petrol injection engine with a displacement of 1.8 liters, turbocharging and variable intake and exhaust camshafts. The E 200 CGI BlueEFFICIENCY (184 hp) is equipped with a six-speed manual transmission and the ECO start/stop function as standard, and consumes only 6.8 liters of premium petrol per 100 kilometers (combined NEDC consumption, provisional figure)
. This equates to 159 grams of CO2 per kilometer.

Mercedes-Benz equips the V6 and V8-models as standard with a seven-speed automatic transmission, steering wheel selector lever and shift paddles.
Mercedes-Benz offers the new system in a lighting package that includes bi-xenon headlamps, the Intelligent Light System and LED daytime driving lights.
The Lane Tracking package for the new E-Class includes Blind Spot Assist familiar from the S-Class, and as a new development, Lane Keeping Assist which seeks to prevent the vehicle from leaving the road unintentionally. When the system recognizes that the car is drifting from its lane, the driver is prompted to take counter steering action by brief but unmistakable vibrations of the steering wheel.

Night View Assist from the S-Class is now also available as an optional extra for the new E-Class. Mercedes-Benz has improved this system with a special pedestrian detection function: as soon as Night View Assist Plus recognizes pedestrians ahead of the car, they are highlighted in the onboard display to provide a greatly enhanced warning effect.

Thanks to an innovative technology, the new E-Class is very sensitive to its driver’s attention level, and warns him or her of drowsiness in good time.
Typical Mercedes attention to detail has also been lavished on the interior of the new E-Class where the designers have ensured that every feature appeals in both emotional and functional terms with its form, color or material. The result is a harmonious whole-an atmosphere in which the car’s occupants immediately feel safe and protected, and long journeys can be enjoyed without any feeling of effort or stress.

Kuwait Times

ITQ8 Forum third meeting May 31

May 28th, 2009

ITQ8 Forum will hold its third meet on May 31 in Kuwait with the theme of “Planning for a successful ERP System Implementation”. The forum is convened by Chandrashekhar Nene, CIO of Wataniya Airways under the initiative of United Business Group, organizers of the forum said yesterday.

Nene will deliver an introductory talk on the “Need for ERP and extracting value from the system.” Nene as he is known in Kuwait IT fraternity has an extensive experience of over 31 years. He has successfully concluded complex ERP projects, for 4 major corporations in Asia, Africa and Middle East regions.

In the recent past the Enterprise Resource Planning (ERP) systems have been an important building block within the IT architecture of majority of corporations at Kuwait. This has primarily been the result of the immense pressures put in by the recessionary trends in the global market.

ERP systems are, if used judiciously, an excellent tool to manage the corporate expenditure and improve the financial performance. Therefore, a presentation on this subject, by a senior IT practitioner would very useful for all our members of the IT fraternity, the organizers added.

This talk would be followed by a detailed presentation by Sriram Papani, Senior Vice President, at Satyam Computer Services Ltd. He will present on the “Successful Implementation of the ERP system in an Organization”. Papani has an extensive experience of over 22 years, in the field of Enterprise Applications, who heads Satyam’s Enterprise Application Practice globally.

This will be followed by a presentation on HP Procurve Solutions by a Technical Expert from the Hewlett Packard, Systems, (HP) team. The United Business Group, along with some prominent IT professionals in Kuwait has launched the ITQ8 forum on November 13, 2008. The inaugural event, sponsored by IBM and Lenovo, happened to be a tremendous success with over 100 enthusiastic participants from the IT space.

According to the organizers, UBG has partnered with industry giants like IBM, Lenovo and HP and also works closely with the likes of Satyam, Kale Consultants, Nalsoft etc on various projects. United Business Group has been phenomenal in bringing together the IT Fraternity under one umbrella, the ITQ8 Forum, in a very short time.

The second meet of the ITQ8 Forum, held on January 29, 2009, was attended by over 100 decision makers from the IT domain with experts like Dr Fadi Chehayeb, CIO, National Bank of Kuwait. The ITQ8 Forum will be held at the Crowne Plaza Hotel, Farwaniya at 6.30 pm.

Kuwait Times

Swine flu hits Bahrain

May 26th, 2009

A man returning from a trip to New York has been confirmed as having the first case of the new H1N1 flu in Bahrain, Al Arabiya television reported yesterday, citing the Gulf state’s health ministry. The channel gave no further details. On Sunday, the United Arab Emirates said a man who arrived on a flight from Canada had been confirmed as the first case there. The UAE daily Gulf News quoted an unnamed official as saying the man was a Canadian doctor of Pakistani origin, who had gone to a hospital in the city of Al Ain to be tested for his flu symptoms.

Kuwait times

Blast hits NY Starbucks

May 26th, 2009

A small bomb rocked a Manhattan coffee shop in the early hours of yesterday, causing material damage but no injuries, police said. The blast struck near a Starbucks cafe in a residential neighborhood on the Upper East Side of Manhattan. The shop was closed at the time of the incident. “We are going to analyze the type of explosive that was used,” said police spokesman Raymond Kelly. “It is described by bomb experts as a low explosive.” The incident evoked memories of three similar events in the c
ity. “After the Mexican consulate, the British consulate, the Times Square bombing event at the recruiting station, we have this event,” said Kelly. “They all happened between 3:30 and 4:30 am, that is the immediate similarity we are looking at.” Jackie Klempay, a local resident told local television crews of the ordeal.”There was a huge boom. I thought it was either a gas explosion or a truck running into the building.

Kuwaittimes

Female MPs make first visit to Assembly

May 26th, 2009

Women MPs made their first official visit to the National Assembly yesterday as Islamist MP Mohammad Hayef clashed with Shiite MP Adnan Al-Mutawwa over school textbooks. Female MPs Maasouma Al-Mubarak and Aseel Al-Awadhi called for the formation of a homogenous and capable government that can submit its program of action and defend it.

Mubarak denied that she has called for the appointment of three women in the Cabinet, adding that she only called for appointing ministers on the basis of competence and for increasing the representation of women in the Cabinet but only on the basis of competence and ability. Mubarak also added that she comes to the national assembly with the aim to achieve more understanding and cooperation between the government and MPs. She denied reports that the four women are forming a bloc.

The lawmaker said she will contest the post of deputy speaker and that so far has received good parliamentary support. Her success will boost women?s representation and boost Kuwait?s image abroad, she said. Mubarak said that if she does not succeed, she will contest for membership in the committees of foreign affairs, women and education.

Al-Awadhi meanwhile said that there is a general consensus among MPs to ask the government to submit a development action program, adding that she has learnt that the plan is ready and will be submitted soon. Awadhi said she plans to contest for the women?s affairs and educational committees in the Assembly. She said that formation of the Cabinet is the sole right of the prime minister and that she has no reservation against any minister, but hoped the new Cabinet will fulfill the aspirations of the Kuwait
i people.

Meanwhile Shiite MPs Hassan Jowhar and Mutawwa criticized outgoing Education Minister Nouriya Al-Sabeeh and called on the prime minister not to retain her. Mutawwa also called for removing controversial religious content from school textbooks, especially those which carry hardline views, adding that ?we should teach our children peaceful coexistence.?

Islamist Sunni MP Mohammad Hayef quickly responded to the calls by describing them as ?sectarian motivated? and called on the prime minister to appoint a moderate personality as education minister. Some Shiite activists claim that some subjects in school textbooks criticize their sect and should be removed. Sunnis like Hayef meanwhile insist those are the pure teachings of Islam and should not be scrapped.

In another development, MP Mohammad Al-Mutair criticized the health ministry?s handling of the swine flu cases among US soldiers and cast doubt over the ministry?s account. He specially doubted the health ministry?s claim that the soldiers did not come into contact with the local population, saying that the soldiers came through Abdullah Al-Mubarak airbase at Kuwait International Airport, hinting that some Kuwaiti airport officials could have come into contact with the infected soldiers.

Mutair called for a probe into the fact that US soldiers enter and leave Kuwait without any supervision and without passing through Kuwaiti security and military authorities. The health ministry meanwhile confirmed yesterday that all the 18 US soldiers left Kuwait after receiving treatment. The announcement came after a Kuwaiti medical team inspected a US base in northern Kuwait.

Kuwaittimes

North Korea declares it conducted nuclear test

May 25th, 2009

North Korea claimed it carried out a powerful underground nuclear test Monday — much larger than one conducted in 2006 — a major provocation in the escalating international standoff over its rogue nuclear and missile programs.

The regime “successfully conducted one more underground nuclear test on May 25 as part of measures to bolster its nuclear deterrent for self-defense,” the country’s official Korean Central News Agency said.

Russia’s Defense Ministry confirmed an atomic explosion at 9:54 a.m. (0054 GMT) in northeastern North Korea, estimating the blast’s yield at 10 to 20 kilotons — comparable to the bombs that flattened Hiroshima and Nagasaki.

Hours later, the regime test-fired three short-range, ground-to-air missiles, the Yonhap news agency reported, citing unnamed sources. U.N. Security Council resolutions bar North Korea from engaging in any ballistic missile-related activity.

President Barack Obama called the moves “blatant defiance” of the Security Council and a violation of international law that would only further isolate North Korea.

North Korea’s claims “are a matter of grave concern to all nations,” he said, calling for international action in a statement from Washington. “North Korea’s attempts to develop nuclear weapons, as well as its ballistic missile program, constitute a threat to international peace and security.”

The U.N. chief said Monday that if North Korea’s claim can be confirmed, its announcement of a second nuclear test would represent “a clear violation” of a United Nations Security Council resolution.

“I sincerely hope that the Security Council will take necessary corresponding measures,” U.N. Secretary-General Ban Ki-moon told The Associated Press, declining to specify what further moves, or sanctions, he would urge the 15 council members to take.

The council scheduled emergency consultations on North Korea’s actions for Monday afternoon.

British Prime Minister Gordon Brown condemned the test as “erroneous, misguided and a danger to the world.”

Japanese Prime Minister Taro Aso said the Security Council will meet at 4:30 p.m. Monday in New York (2030 GMT).

“North Korea’s nuclear test poses a grave challenge to nuclear nonproliferation and clearly violates U.N. Security Council resolutions,” he said in Tokyo. “We are not tolerating this at all.”

Even China, North Korea’s traditional ally, issued rare criticism of Pyongyang, with the Foreign Ministry saying in a statement posted on its Web site that Beijing was “resolutely opposed” to the test.

North Korea’s bold defiance raises the stakes in the standoff over its nuclear program. In the past two months, Pyongyang has launched a rocket despite international calls for restraint; abandoned international nuclear negotiations; restarted its nuclear plants; and warned it would carry out the atomic test as well as long-range missile tests.

The rise in tensions comes amid questions about who will succeed impoverished North Korea’s authoritarian leader, 67-year-old Kim Jong Il, who is believed to have suffered a stroke last August. North Korea also has custody of two American journalists — accused of entering the country illegally and engaging in “hostile acts” — who are set to stand trial in Pyongyang on June 4.

“This is a political act more than a military act,” said Jim Walsh, an international security expert at the Massachusetts Institute of Technology.

Walsh said domestic factors related to North Korea’s political transition were likely the main factor.

Monday’s atomic test was conducted about 50 miles (80 kilometers) northwest of the northern city of Kilju, Russian Defense Ministry spokesman Alexander Drobyshevsky said, speaking on state-run Rossiya television.

Kilju, in the northeastern province of North Hamgyong, is where North Korea conducted its first nuclear test in October 2006 in a surprise move that also angered China and drew wide-ranging sanctions from the Security Council.

An emergency siren sounded in the Chinese border city of Yanji, 130 miles (200 kilometers) to the northwest. A receptionist at Yanji’s International Hotel said she and several hotel guests felt the ground tremble.

North Korea boasted that Monday’s test was conducted “on a new higher level in terms of its explosive power and technology of its control” than in 2006.

Pyongyang is believed to have enough weaponized plutonium for at least a half-dozen atomic bombs. However, experts say scientists have not yet mastered the miniaturization needed to mount a nuclear device onto a long-range missile.

Ten to 20 kilotons would be far more than North Korea managed in 2006. U.S. intelligence officials said the 2006 test measured less than a kiloton; 1 kiloton is equal to the force produced by 1,000 tons of TNT. However, Russia estimated the force of the 2006 blast at 5 to 15 kilotons, far higher than other estimates at the time.

Radiation levels in Russia’s Primorye region, which shares a short border with North Korea, were normal Monday several hours after the blast, the state meteorological office said.

In Vladivostok, a city of 500,000 people about 85 miles (140 kilometers) from the Russian-North Korean border, translator Alexei Sergeyev said he wasn’t concerned about the test and doesn’t fear North Korea.

“Their nuclear program does not have military aims — their only aim is to frighten the U.S. and receive more humanitarian aid as a result,” said Sergeyev.

The reported test-firing of short-range missiles took place at the Musudan-ri launchpad on North Korea’s northeast coast, some 30 miles (50 kilometers) from the nuclear test site, Yonhap said. Unnamed sources described it as a ground-to-air missile with a range of 80 miles (130 kilometers).

Japan’s coast guard said Friday that North Korea warned ships to avoid waters off the coast near the launch site, suggesting Pyongyang was preparing for a missile test. Yonhap also reported brisk activity along the northeast coast last week.

South Korean troops were on high alert but there was no sign North Korean soldiers were massing along the heavily fortified border dividing the two nations, according to an official at the Joint Chiefs of Staff headquarters in Seoul. He spoke on condition of anonymity, citing agency policy.

The two Koreas technically remain at war because their three-year conflict ended in a truce, not a peace treaty, in 1953.

Tensions have been high since conservative President Lee Myung-bak took office in Seoul in February 2008 saying Pyongyang must fulfill its promises to dismantle its nuclear program before it can expect aid.

South Koreans, meanwhile, were grappling with the suicide two days earlier of Lee’s liberal predecessor, Roh Moo-hyun, whose death elicited condolences from Kim Jong Il. Kim held a 2007 summit in Pyongyang with Roh, who championed reconciliation with North Korea.

North Korea had agreed in February 2007 to a six-nation pact to begin disabling its main nuclear reactor in exchange for 1 million tons of fuel oil and other concessions. But Pyongyang abruptly halted the process last summer over a dispute with Washington over how to verify its 18,000-page list of past atomic activities.

Talks hosted by Beijing in December failed to resolve the impasse, and North Korea abandoned the six-nation negotiations last month in anger over the U.N. condemnation of its rocket launch.

North Korea claims it launched the rocket to send a satellite into space; South Korea, Japan and other nations saw it as a way to test the technology used to launch an intercontinental ballistic missile, one capable of reaching the U.S.

Yahoo news

Deadly Indian riots after Sikh shooting in Austria

May 25th, 2009

Two protesters were killed in India on Monday as mobs went on the rampage after a guru was shot dead in fighting between rival Sikh communities in Austria, police said.

The two men were killed in separate incidents when police opened fire to disperse angry crowds who rioted in many cities and towns across the northern state of Punjab.

They were protesting against the death of Sant Rama Nand, who was killed by fellow Sikhs in a temple in the Austrian capital of Vienna as he addressed 200 worshippers Sunday.

Demonstrators in Punjab torched four carriages of a train in the city of Jalandhar, police said, despite a curfew imposed to halt the violence.

In the Sikh holy city of Amritsar, police fired tear gas to control crowds after protesters torched dozens of buses. About 12 people were injured.

“One person was killed at Lambra village by the army bullet and another one was shot dead at Jalandhar by police in order to control the mob,” a police officer who declined to be named told AFP.

Indian Prime Minister Manmohan Singh, himself a Sikh, said he was “deeply distressed” by the attack on the guru and issued an appeal for calm.

“Whatever the provocation, it is important to maintain peace and harmony among different sections of the people,” he said in a statement.

Sant Rama Nand, 56, died and 16 other people were injured in Vienna during the temple attack, which was reportedly over a dispute about the role of castes in the Sikh religion.

A second guru, or “teacher,” Sant Niranjan Dass, 66, was among those wounded as Sikhs fought each other with guns and knives inside the temple.

The two gurus, who belong to a group representing low-caste Sikhs, were visiting Vienna to meet worshippers.

Leaders at the temple, which opened in 2005, have campaigned against the caste system, but their stance has angered other Sikhs in Austria.

Guru Nanak, who founded of the Sikh religion in the early 16th century, denounced the Hindu hierarchy of castes and taught that all people were equal regardless of caste or gender.

Indian Foreign Minister S.M. Krishna blamed the attack on clan rivalry.

“Two groups of people owing allegiance to different families have set up confrontation amongst themselves and let the gurdwara (temple) be made the place where attacks and counter-attacks have taken place,” he said.

Vienna police said Monday that six Indian men who lived in Austria had been arrested over the pre-planned assault.

Four of the alleged attackers were in a critical state in hospital, but the remaining two have been questioned, police said.

In Jalandhar, the Indian city where many low-caste Sikhs live, army patrols were out in force as protesters furious at the guru’s death obstructed trains and erected road blocks on national highways to stop traffic.

“Officers have been deployed at sensitive points to check any untoward incidents,” said police superintendent R.K. Jaiswal.

The Sikh religious community has about 2,800 followers in Austria and 25 million worldwide, most of them in northern India.

Yahoo news

Saudi aid to thousands displaced by quake

May 25th, 2009

Saudi authorities on Sunday distributed aid to the thousands displaced by the violent tremors that have rocked part of the western Al-Madinah Province over the past week.

Around 627 families, totalling of 4,600 people, evacuated from the Al-Ais area of the province have received 2,000-3,000 riyals ($533-$799) in weekly financial assistance, Ibrahim al-Sultan, governor of the nearby city of Yanbu, was quoted as saying by Saudi daily Arab News on Monday.

The families are currently being put up in hotels and apartments in the city, the newspaper said.

Saudi authorities at the beginning of last week declared a state of emergency in Al-Ais and ordered a complete evacuation of the area due to the tremors, which have measured as high as 5.6 on the Richter scale.

At the epicentre of the tremors, a village called Harrah al-Shaqah, dangerous gases and unusually hot air and water were seen coming up from the ground.

Roger Musson, of the British Geological Survey in Scotland, told Maktoob Business on Thursday a volcanic eruption was “imminent” and could be the biggest to occur in more than 1,000 years.

However, the Saudi Geological Society (SGS) said seismic activity has dropped off in the last couple of days, with only a handful of minor tremors measuring around 3.0 reported in the 24 hours to Sunday at 2 p.m., Arab News said.

The newspaper said people would be allowed to return to their homes once the SGS had given the all-clear.

US soldiers infected with swine flu transit through Kuwait

May 24th, 2009

Kuwait’s Health Ministry yesterday confirmed some US soldiers who used Kuwait as a transit point were infected with swine flu. The confirmation came after a US newspaper report claimed that 18 US military personnel in Kuwait bases tested positive for swine flu. The cases are the first reported in Kuwait. Health Ministry Undersecretary Dr Ibrahim Al-Abdulhadi told KUNA the US soldiers were quarantined at their military base. “Each case was characterized as being a mild flu-like symptom,” the American military said in a statement. “All but … a couple have been treated and returned to duty.” No further details were provided.

The US Embassy said cases have “tentatively” been confirmed without adding details and that the soldiers did not come into contact with the Kuwaiti population. “We are aware that H1N1 influenza cases have been tentatively confirmed among US military personnel assigned abroad, including soldiers transiting via US military bases in Kuwait,” the embassy said in a statement.

The individuals concerned have been isolated and treated by US military doctors at US military facilities. They have not come into any contact with the Kuwaiti population,” it said. The US government and the government of Kuwait have closely coordinated monitoring and response measures, it added.

Al-Abdulhadi said the American soldiers, whose names or ages were not disclosed, were transiting through Kuwait. He said they were examined and given appropriate medication. Most of the infected soldiers left Kuwait already and the rest were being treated in the hospital of the military base, whose name nor location were not mentioned, and would be leaving the country later, said Al-Abdulhadi. Kuwait is safe, he confirmed, and was following recommendations and measures of the World Health Organization (WHO). He said the Health Ministry would be holding a news conference today to give more details about the US soldiers’ case.

Earlier, the Head of Public Relations at the Ministry of Health Faisal Al-Dowsari, in a statement to KUNA, said that a WHO official will be visiting today to discuss the recent developments related to swine flu. He added that the expert would discuss the causes of the disease and the means to prevent the spread of the H1N1 virus, as well as ways to treat it. WHO announced recently that swine flu has spread to about 42 states with about 11,168 cases registered and 86 deaths. Kuwait was not on its list of countries where the virus is present. Kuwait is used as a staging area for soldiers heading to or from the war in Iraq.

Maj Kristi Beckman, speaking from Central Command headquarters in Tampa, Florida, said everyone who tested positive for the virus was quarantined in military health facilities approved by officials from the Kuwaiti Ministry of Health.

Kuwait’s Ministry of Health is aggressively screening anyone arriving in Kuwait to prevent the virus from entering the country, Beckman said. Anyone who exhibits symptoms of the illness is immediately isolated and tested using WHO and Centers for Disease Control guidelines, she added. “The embassy in Kuwait has been working with the Kuwait Ministry of Health and other US military elements in Kuwait just to assure we’re safeguarding the health of all residents in Kuwait,” Beckman said. About 15,000 US soldiers are stationed in Kuwait. About 135,000 troops fighting in neighboring Iraq.

Kuwaittimes

British Airways dives into red

May 23rd, 2009

British Airways suffered a heavy ?375 million loss in the past year as high fuel costs and slumping demand hit home, it said yesterday, and saw no sign of immediate improvement amid the downturn. BA logged a loss after tax of ?375 million ($590 million) in the 12 months to March 2009 after net profit of ?712 million a year earlier, it said in an earnings statement.

In the last twelve months we have gone from a record profit to a record loss due to the current tough economic environment,” said BA chairman Martin Broughton. “That only serves to underline the extremely difficult trading conditions that we are facing… and any recovery is likely to take longer than initially envisaged. “The revenue outlook continues to be weak during the current financial year but we expect lower fuel prices to reduce our fuel costs by approximately 400 million pounds,” added Broughton
, who ruled out any dividend payout.

BA suffered an operating loss of ?220 million for the period, reversing year-earlier operating profit of ?878 million, and it also reported a pre-tax loss of ?401 million for 2008/09. Revenue rose 2.7 percent to ?8.99 billion. “Reduced passenger and cargo demand and high fuel prices last summer contributed to our 220 million pounds operating loss as our total fuel bill reached almost three billion pounds,” said BA chief executive Willie Walsh. “The prolonged nature of the global downturn makes this the har
shest trading environment we have ever faced and, with no immediate improvement visible, market conditions remain challenging,” Walsh added in the statement.

Reacting to the results, investors sent BA’s share price sliding 6.33 percent to 152.5 pence in early trade on London’s FTSE 100, which was flat. “It doesn’t matter how you look at it, these are dreadful figures from British Airways,” said Manoj Ladwa, senior trader at ETX Capital in London. “Although the market did expect the economic environment and recent high oil prices to impact performance, investors will question whether the company can stay competitive in the current market place. “It seems the onl
y way forward for many airlines is to consolidate and it couldn’t come sooner for BA,” added Ladwa.

British Airways is currently in merger talks with Spanish rival Iberia. In addition the British carrier is seeking a tie-up with American Airlines. Last year, American Airlines, British Airways and Iberia signed an agreement to cooperate over flights between North America and Europe to help them overcome high fuel costs. The move has drawn fierce opposition from Richard Branson’s Virgin Atlantic, which claims such a partnership would threaten the survival of rivals.

Regarding its merger with Iberia, BA yesterday said “management anticipates that the talks… will take several months to conclude.” Speaking about the proposed partnership with both American Airlines and Iberia, BA said it was optimistic that anti-trust immunity would be approved in the next six months that would rubber-stamp the deal. Standing in the way however is Branson, who last week put the finishing touches on Virgin Atlantic’s “final submission” to the US Department of Transportation to try to blo
ck the deal.

Kuwaittimes