I keep holding on for the 'surprise factor'. Hopefully will be a positive one; I think the team have done well in turning the ship; lots of upside if they can win some new contracts. Some downside risk in contract renewals in products division short term. Proving to be a long waiting game. This year should see some operational leverage from the new volumes since Nov, depending on how much start-up costs required.
Does the modest profit and increased attendance at this years IFSA event indicate a significant change in industry fortunes? The jury seemed out among some of the companies vying for airline business. Some were encouraged by the airlines' approach to improving the experience for the passengers.
I think its fifty-fifty. Every year, airlines have a different need, said Adeline Tran, Sales and Service Manager at the caterer Air Fayre in Los Angeles.
Sadly you, I , Card Player and SpikeyDT may well be the only people following this company. They keep on winning new contracts and issuing upbeat management reports and the share price barely moves. But with a Piotroski Fscore of 8 and market cap one-quarter of sales, a major re-rating must eventually come, perhaps when they start paying dividends again.
By the way, the standard "About United" post-merger blurb states:
"United Airlines and United Express operate an average of 5,605 flights a day to 374 airports on six continents from our hubs in Chicago, Cleveland, Denver, Guam, Houston, Los Angeles, New York/Newark, San Francisco, Tokyo and Washington, D.C."
Pre-merger, united had about 3,600 flights per day.
Therefore, on the basis of the 2011 figures, Air Fayre handles about 4.47% of all the meals served on United flights (post-merger with Continental).
The whole team is still celebrating at Air Fayre in Los Angeles after the caterer received top honors and the title of Overall Best Performance Kitchen from United Airlines at an awards event in Chicago on April 19th.
Each year, United Airlines honors its best caterers by handing out awards in several categories to kitchens across is network.
For its outstanding achievement in 2011, AirFayre was presented with three awards by the carrier. Air Farye received both the Best International UP Meal Score Hub Kitchen award (scored by passengers) and Best Reliability, for the second consecutive year. Air Fayre also received the Overall Best Performance Kitchen award
It is such an honor to receive Uniteds Best Caterer award on only our third year of operation and to be recognized for on-time performance and meal quality for two years in a row, said Joe Golio, President and CEO at AirFayre. These awards truly speak for the success of Air Fayres business model and commitment to providing the highest quality meals and service at the lowest possible cost. We cannot be more excited to share this achievement with our team and continue providing United with the best quality of service.
In 2011 Air Fayre catered nearly 24,000 domestic and international departures out of LAX for United
As per Journey Groups 2011 accounts, Air Fayre serviced 25,037 flights (68.6 flights a day) versus 26,500 flights last year (72.6 flights a day), as United Airlines consolidated some flights to improve load factors and offset higher fuel prices. The number of meals served increased to 1,996,627 meals from 1,878,097 in 2010. This compares to 1,672,500 meals in 2009.
Therefore, it would appear that Air Fayre serviced just over 1,000 flights in 2011 which were not United flights.
The above compares to Alpha Flight's Best Reliability award for handling 1,000 and 3,000 departures per year for United from Heathrow.
"While the cost battle rages at the low end, airlines are also competing on quality for business class, returning to the early days of flight when lavish meals were used to lure wealthy ship and train travellers into the air."
"Great food United recently announced an upgrade to their premium menus and it shows. Both flights offered a 5 course meal with 4 choices for a main. The food is worth a story of it's own so stay tuned for a full report."
Journey Group has after some years moved back into operating profit, though accounting for the executive bonus share scheme pushed them into a reported loss. With the Piotroski Fscore back up to 8 (or 9 if you use the operating profit) they are a screaming buy, even given the recent run-up in the share price. When they were last making a profit in 1994-2004, average EPS according to DataStream was 6.88p.
Excellent news. Net cash of £2.11m and adjusted pre-tax profit of £360,000 - the first since 2005. They are clearly not now going to go bust. Even after this morning's rise in the share price, market cap of just over £10m is still only one-quarter of revenue. Unfortunately I may the only person following this company...
been out and about so just catching up on news - I agree good progress - would have been nice to see more but can't complain - the turnaround trend continues and surely we are likely to see further progress by interims. I also like the structure of the reward scheme - I'll be v pleased if they can take us up to 15p... just a shame our starting point is so low again !
An excellent report from Stephen Yapp yesterday. They might still be making a small loss, but they are no longer in any danger of going bust, they are well positioned for growth (bug*er-all here but plenty in the Middle and Far East), they are almost debt free and their market cap is one-quarter of sales.
In response we have seen no posts except this one, and the share price has barely moved. Not much evidence of an efficient market in this share at least.
I've just bought a rather miniscule 2,807 shares at 4.63p. I tend to start with tiny stakes especially when there's a spike and a big spread. That's just my style, I'm not advocating it, and could soon be wishing I'd bought more.
I don't know much about patents, does anyone know if the US patent on the business model could be challenged?
Good to hear someone else is a believer/ hoper! frusset, did he suggest a target price? Coincidentally I was checking CAA passenger stats yesterday and for also LAX; looking positive compared to 2009 figures at least til October which is latest data released. December will take a hit in UK due to snow but I think we have some great trends in support if Yapp can continue his turnaround in ops & gain new contracts to fill spare capacity.
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