Aviation

Thursday

Martin Vander Weyer

In defence of Amazon

We should take heart from BP’s £5.1 billion second-quarter loss, accompanied by a halving of its dividend. What’s good about that? Nothing — except that the loss reflects a write-down of the value of oil and gas assets that shifts the company to a more realistic footing for an extended period of low oil prices and reduced demand, indicating resilience rather than impending doom. In recent times, BP has lived through Deepwater Horizon, history’s most politicised oil-rig disaster, and extricated itself from TNK-BP, history’s nastiest Russian joint-venture. It operated when oil was below $20 a barrel in 2001 and when it hit $147 in 2008. It has plans to achieve

Thursday

Martin Vander Weyer

Is it too late to jump on the gold bandwagon?

The price of gold has been rising since the earliest virus reports from China in December. Adherents regard it as a hedge against inflation, bad government, economic turmoil, weak currencies and negative real returns on financial alternatives, all of which are present threats. For pessimists, this week’s headlines — above-inflation pay rises for 900,000 UK public-sector workers, the EU’s €750 billion debt-fuelled recovery package, the WHO’s report of 260,000 new Covid cases in a single day — all represent arguments for this ultimate safe-haven holding. Too late to jump on the bandwagon? I’m no natural pessimist and (as I’m about to reveal) I’m a hit-and-miss forecaster, but I do see

Saturday

Martin Vander Weyer

Airlines are no special case when we all need a bailout

The world needs airlines — and, barring Armageddon, will still have some when this crisis is over. It will also still have aircraft, pilots and airports. The aviation industry, accustomed to volatility as it is, should be well capable of restructuring and regrowing in response to renewed demand, even if bankruptcies are left behind. I know that sounds glib, but airlines on both sides of the Atlantic have been loud in calling for state aid as traffic has collapsed — and in the cruel process of deciding how governments can equitably relieve the virus’s financial impact on every business and family, all such claims demand scrutiny. The Chancellor says he’s