BA CEO sees '08 EBIT up to 10 pct of sales: Press
MILAN: British Airways forecasts its operating profit will rise to 10 percent of sales in 2008 and the airline will decide in September on how to bolster its long-haul fleet, its Chief Executive told an Italian newspaper.
British Airways' operating profit was 602 million pounds ($1.19 billion) in the year to March 31 and the group said last month it expected revenues to come in at the lower end of its 2008 guidance of 5 to 6 growth.
"This year, we expect EBIT (earnings before interest and tax) to improve to 10 percent of revenues," CEO Willie Walsh told Il Sole 24 Ore in an interview published on Friday.
Walsh, who has said he could see BA buying 10 to 15 Airbus 380 superjumbo aircraft, told the newspaper a decision on its long-haul fleet would be made in a few months' time.
"We need to substitute 34 planes -- 20 Boeing 747-700 and 14 Boeing 767. A single type is not suitable to all our demands, we could buy two or three different types," he said.
British Airways, which owns 10 percent of Iberia , has joined a group headed by U.S. private equity firm TPG that is bidding for Iberia.
TPG in March approached the Spanish airline with an indicative price of 3.6 euros per share, valuing it at 3.4 billion euros ($4.56 billion).
"The consortium wrote to Iberia's board -- 'We want to see the accounts to launch an offer.' Now it is up to them to reply," Walsh said.
With regards to troubled Italian airline Alitalia, Walsh said he did not believe Air France was behind Aeroflot in its bid for the Italian government's stake in the carrier.
The CEO reiterated BA is not interested in Alitalia nor in the Italian market.
"We are not interested in the Italian carrier. Every time I hear about it I wonder how it can possibly still operate," Walsh said.
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