BA owner has faith in AMR survival

By Rhys Jones

LONDON | Tue Nov 29, 2011 10:27am EST

LONDON (Reuters) - British Airways and Iberia parent IAG (ICAG.L) said its transatlantic joint venture with American Airlines would continue to operate as normal after AMR Corp (AMR.N), the carrier's parent company, filed for bankruptcy protection.

"We have every confidence in the future of American Airlines. We are pleased they are taking this step which shows commitment and determination," IAG, which has a joint venture with American Airlines on transatlantic routes, said in a statement on Tuesday.

AMR Corp filed for voluntary Chapter 11 bankruptcy protection earlier on Tuesday after failing to win a deal with pilots earlier this month to pare its labour costs.

"Our joint business, which is a revenue sharing agreement, continues to operate as usual," IAG added.

Shares in IAG, which have fallen 11 percent in the last three months, were 2.1 percent down at 141.5 pence by 1445 GMT, valuing the company at around 2.7 billion pounds.

American said the bankruptcy would have no direct legal impact on operations outside the United States and it was not considering debtor-in-possession financing.

"From a bookings perspective perhaps an airline in chapter 11 could be less attractive to consumers so sentiment could be hit," said Stephen Furlong, an analyst at Davy Stockbrokers.

"I don't think this will change IAG's strategy though and American will continue to be an important part of its business."

ORDER UNCERTAINTY?

Earlier this year American Airlines placed one of the largest aircraft orders in aviation history with planemakers Boeing Co (BA.N) and Airbus (EAD.PA), which could total more than 900 airliners, valued at nearly $40 billion.

American placed an initial order for 260 Airbus A320 aircraft with an option to buy an additional 365 for a possible total order of 625. The airline also placed an initial order with Boeing for 200 of its 737-family of aircraft, with options to buy an additional 100. If all the options are exercised, Airbus will deliver a full two-thirds of American Airlines' new narrowbody fleet.

Shares in Airbus owner EADS were 3.2 percent down at 20.66 euros by 1440 GMT, while Boeing shares in New York were up 0.8 percent at $65.54.

AMR had been the only major U.S. carrier to avoid bankruptcy proceedings in the past decade, a move its rivals had used to restructure their labour agreements and cut costs.

Finland-based carrier Finnair (FIA1S.HE), part of American Airlines' oneworld alliance, said it was confident American would be able to pull through by lowering their cost base.

"I want to underline that all other American air carriers have already gone through this process, so they are the last one here. They will continue their operations as usual, so the filing will not have an impact for their customers nor the oneworld cooperation which we have with them," said Finnair spokeswoman Paivyt Tallqvist.

(Editing by Adveith Nair and David Cowell)

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Pompey owner Antonov steps down

By John Sinnott
BBC Sport Pompey went into administration in February 2010 Portsmouth could be docked points after chairman Vladimir Antonov resigned as its parent company Convers Sports Initiatives entered administration.

Controlled by London-based Russian businessman Antonov, CSI only took over Championship club Pompey in June.

"I don't hold out much hope the club will avoid at least a 10-point loss," lawyer Guy Thomas told the BBC Sport.

"It's disappointing for the club to find itself in this position," said Pompey chief executive David Lampitt.

Pompey became the first Premier League club to enter administration in 2010.

The club was consequently deducted nine points on its way to relegation from the top flight.

In a statement, the club insisted that "Portsmouth Football Club (2010) Limited - the company that operates PFC - is not in administration and continues to trade".

However the Football Association has previously indicated that those clubs whose parent company enter administration will be subject to a points deduction process.

"It will have to be decided whether CSI and Portsmouth were effectively run as one economic entity," insolvency lawyer Thomas of Taylor Walton told BBC Sport.

"The penalty - ranging between 10 and 25 points - will depend on the outcome of that review."

And what happened to Portsmouth's Championship rivals Southampton in 2009 offers a worrying precedent for Pompey fans.

Then, Saints' parent company Southampton Leisure Holdings went into administration and though the club hoped to avoid deduction, an independent investigation by the Football League found the club & SLH were "inextricably linked as one economic entity".

Continue reading the main story Matt Slater,
Sports news reporter

"Almost three years ago to the day, Portsmouth nearly beat AC Milan on a stirring night of European football. Pompey were the FA Cup holders and solid Premier League performers. How things have changed. News that the club's parent company has filed for insolvency protection would be shocking news at most other clubs but not Pompey. Crisis has become the norm. A second spell of administration looms, Pompey's seventh regime in 27 months, and a points deduction looks likely. Never has a club needed fit and proper persons at the helm more urgently."

Southampton were subsequently deducted 10 points.

"The matter will be considered by the Board of the Football League as and when all the facts surrounding the administration of the club's parent company become available," said a Football League spokesman.

Colin Farmery, who runs a Portsmouth supporters website, told BBC Radio Solent that CSI's insolvency could have a significant impact on the football club.

"The worst case outcome is that because the club is potentially going insolvent for the second time in 18 months, the Football League may take a dim view of that.

"The other side of that is the Football League approved these people of being fit and proper of running a football club."

Farmery added: "On a basic level, if CSI are involved in insolvency proceedings, that will have an impact on Portsmouth football club - and time will tell how big that will be."

Antonov, who last week was arrested in an inquiry into asset stripping, secured the sale of Portsmouth from Hong Kong businessman Balram Chainrai, director of Sports Holdings (Asia) Ltd in June. Portpin is another Chainrai company.

Chainrai first took over at Fratton Park in February 2010, placing Portsmouth in administration after initially investing £17m in the club, and "reluctantly" assuming control when previous owner Ali Al Faraj defaulted on loan payments due to him.

Last week, Portsmouth's former owners Portpin Ltd re-emerged as an interested party in the club's future after filing a charge at Companies House over the parent company making it a secured creditor over CSI.

"I want to assure staff and fans that we will continue to do everything possible to safeguard the position of the club and its longer-term future," added Lampitt.

Last week Antonov and his business partner Raimondas Baranauskas appeared in court in connection with the alleged asset stripping of a bank in Lithuania.

Prosecutors in Lithuania want to question Antonov and Baranauskas as part of an investigation into claims involving Snoras Bank.

The men were arrested in London on Thursday after Lithuanian authorities issued extradition warrants.

Both were released by Westminster Magistrates' Court on conditional bail.

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