Willie in the cheap seats

Many tend to think of Willie Walsh as the feisty British airways chief executive who took on some bolshie unions and triumphed.

But Walsh left day-to- day management of Ba a time ago to focus on global expansion, with the Iberia merger and the 2015 purchase of aer Lingus from under the nose of Ryanair.

Walsh has read the runes and recognises that, while premium flying is International airlines Group’s (IAG) major earner, the public has a hunger for no-frills. The launch of Level, jetting out of Barcelona to Latin america and US destinations, is regarded as a success and it will soon add flights from Paris. IAG also uses aer Lingus as a cheaper option for transatlantic travellers.

It has now snapped up a 4.6pc stake in norwegian, the creation of entrepreneur Bjorn Kjos, who follows in the tradition of cheap and cheerful transatlantic pioneer Sir Freddie Laker. norwegian offers a oneway ticket from Gatwick to new york on the Dreamliner for £100 but with minimal leg room and no glass of water.

The prospect of IAG bidding for norwegian sent the share price soaring. Running long-haul carriers across the atlantic can eat up cash and, as norwegian has expanded its routes, finances have come under stress. Walsh’s intervention could come as a tonic.

airline deals are never easily concluded, because it is a highly regulated sector.

The European Union would take a look and we can expect Sir Richard Branson to raise habitual objections.

There are likely to be concerns about IAG domination of slots at Gatwick. EasyJet, which has been seeking to link up with norwegian on long-haul flights from Continental airports, may not be overjoyed.

Consumers will worry that bargain basement fares may rise. Better to book your flight on a financially robust carrier than suffer the fate of passengers on Monarch, air Berlin and other airline casualties.

Trophy hunter

WHAT do First Group, GKN and De La Rue have in common? all three are unfashionable firms with battered shares. But that does not mean they are down and out.

aberdeen-based First Group is an underperformer. It hasn’t paid a dividend since a 2013 rights issue, and its shares fell 40pc before private equity entrepreneur Leon Black of apollo Management began building a stake, and this week made an offer.

Black probably doesn’t know too much about how Britain’s train franchises work, but as a great art collector he might like the look of First’s US bus network Greyhound.

The owner of Edvard Munch’s The Scream, he has an interest in heritage. Whether he has heard of Jeremy Corbyn’s plans to take franchises such as the Great Western into public ownership is less clear.

If big investors Schroders and Jupiter had to decide between Black and Labour’s loony fringe, it is not hard to guess which way they would jump.

The pity is that long investors in solid British enterprises don’t seek change from the inside rather than run for the door.

Rehearsing all the GKN arguments again now may be pointless. But if investors were so distrustful of the company’s board, why didn’t they lobby for new management?

Instead, they put themselves in the hands of the get-rich- quick Melrose executives who have just realised £170m of bonuses.

The greed of Melrose chiefs should not be viewed differently from the fattest of fat cats – Jeff Fairburn at housebuilder Persimmon, Sir Martin Sorrell of advertising agency WPP and other executives of quoted firms who pick the pockets of investors.

a national interest defence of First Group, when many UK rail franchises are in the hands of overseas investors, is pointless. But one does have a message for Mr Black – if you can afford to buy the best in fine art, perhaps you could upgrade the breakfast on the London Paddington-to-Cardiff line.

That is not asking much.

Sky wars

DISNEY is learning the hard way that the City referee, the Takeover Panel, makes no Mickey Mouse exceptions.

If Rupert Murdoch’s 21st Century Fox is unable to complete its bid for the 61pc of Sky it doesn’t own by the time Disney acquires most Fox assets, then Disney must pick up the baton and buy the minority at the pledged price of £10.75p a share.

That is if Comcast hasn’t spoiled the party with a better offer.

Confused? Don’t be. The panel wants equal treatment for all investors.