tv Business - News Deutsche Welle October 28, 2017 3:02am-3:16am CEST
into neighboring bangladesh. clear for landing good almost four decades off the air berlin first took off the now bankrupt ally and sees its final flight we take a look at what the end of an era in the airline industry means for the carriers star and you the consumer. also coming up another german company faces tough times w. the world's biggest carmaker pays dearly for its emissions cheating scandal posting a dramatic drop in profits. this is your business update i'm helen on free in berlin good to have you with us it's bye-bye to the bankrupt and i made its final journey on friday night an emotional moment for the passengers on board and the stouter aside
a sad moment for consumers consolidation in the an oil industry means some routes set to get pricea without doubt a sad day for the airline staff as well but the trustee in the bankruptcy says the bulk of jobs could be saved so for now their future remains up in the air. to get a better end for many air berlin employees and some are not mincing their words about c.e.o. thomas. louis freeh. before you go to sleep he. knew you when you move in there. you know even though took the helm of air berlin earlier this year is guaranteed at least four point five million you. rose and thousands of employees are furious that
they are being left high and dry three out of four of the eight thousand air berlin employees will lose their jobs look tons and two german states declined funds to guarantee employment for a few months more customers may also get a real deal. felt by consumers less on offer less flights on offer over time that gap will be partially filled by mainly by lost tons and tons as low cost affiliates euro wings and possibly by easyjet or commodore but negotiations are ongoing and it's far from certain whether that is going to be successful time has run out for air berlin and its rivals are lining up for its remaining assets but the real painful consumers may only be beginning after old industry experts predict travelers who have not only fewer options but also more expensive ones as germany's second largest airline disappears. lot on its final
day of business and then achieve what it right it could and its prime sell tickets at a price high enough to make a profit the add ons last flight was sold out for weeks some say it's going to six times the usual foot so time to take a look back at a company that started out small and many say try to get to bake. it all began in one thousand nine hundred seventy eight when air berlin usa was born a charter airline with two planes and seventy eight employees the first flight took tourists from berlin to the spanish island of mine york up the carrier soon became known for flying to europe's warmer regions like the mediterranean in one thousand nine hundred ninety eight the holiday charter airline entered an era of transformation and began offering more flights and more destinations by two thousand and three air berlin was the second largest carrier in germany. three
years later it went public on the frankfurt stock exchange and was valued at more than five hundred million euros air berlin continued to expand with acquisitions that included german leisure airline l t u but the airline has been running in the red since two thousand and eight that forced former c.e.o. and founder you off him to step down in twenty eleven that same year new chairman made on signed a groundbreaking deal with gulf airline he had one of the leading carriers in the middle east became the largest shareholder of air berlin. it's a milestone in the history of air travel in aeronautic history. with the deal air berlin joined the one world airline alliance but business didn't improve despite cost saving measures and restructuring efforts in twenty fifteen air berlin posted a record loss of four hundred fifty million euros eight he had once again came to the rescue but to no avail air berlin began making headlines for all the wrong
reasons canceled flights lost luggage customer confidence and satisfaction dwindled the airline went bust after negotiations that rivals considered unfair acquired eighty one aircraft and routes from its former rival now many flights within germany will only be offered by one carrier and a lot of passengers fear their berlin's the miners will soon lead to a big hike in ticket prices. for the amazon microsoft and google's parent company alphabet have in common one or three american companies just keep on growing turning and better results quarter after quarter beating analysts expectations and the stock markets well it's. sales like prime day help attract customers and are driving amazon's profit to new heights but amazon isn't just making money with direct sales it's also earning more with online
advertising and turning up the pressure on market leader google amazon recently opened a new office in new york with around two thousand employees dedicated to selling ads. and amazon cloud services remains the market leader when it comes to helping smaller companies into the cloud over the last three months amazon earned over two hundred fifty million dollars with demand for cloud services growing by the day microsoft is also doing solid business with its cloud solution its flagship cloud platform is called and helps companies manage their websites apps and company data . microsoft vos such an adela has managed to successfully shift the tech giant away from its dependency on windows to a one stop shop for digital enterprise last quarter microsoft earnings topped six point six billion dollars google's parent company alphabet made
a name for itself with its search engine but it's profiting from the expanding ad market targeting smartphones and tablets. its quarterly profits put it well ahead of its competition and six point seven billion dollars in the third quarter. we can bring in our financial correspondent who is that now yes tech is back with a bang strong earnings all trade press. it was an exceptional day for tech stocks and companies and that especially true for amazon the stock gained almost one hundred thirty dollars a good thirteen percent and that stock is valued now at one thousand one hundred dollars by the way this price increase means that the market valuation of amazon just on friday alone increased by a good sixty billion dollars that is basically what the federal express his words in general but also the other stocks and microsoft was a gain of
a good six percent intel up seven percent and alphabet also trading up by a good four percent so it was really an incredible day for tech stocks shortly before the weekend yes go to new york thanks and have a great weekend. well tech stocks doing well but v.w. net profits collapsed last quarter down over fifty three percent to ring in a little over a billion euros now that is jew in part to higher costs from the diesel gate scandal the german car maker is currently refitting hundreds of thousands of cars rigged to cheat on those and missions to us is certainly dented fox fog and reputation especially in the united states and rachel stu it sent us this report. in a quiet corner of baltimore poet thousands of folks back in cars sitting idle it's
a kind of car purgatory where they never make it back on to the road or are they just in for the scrappy. nearly half a million cars were affected by the diesel great scandal in the u.s. the disgraced models have landed in sites like this across the country gathering dust while the company works out what to do with them. in july the u.s. government approved a fix for many of these cars but customers be willing to give these diesels a second chance oh no never i wouldn't even consider buying a boat wagon period i mean if there are facts and i could be assured that there are facts i'm not sure about buying a diesel car in general but that's how i feel that's it's like fake lab data and you can't really get away with that so i wouldn't really trust i would trust a company or that. the bill for clearing up after diesel gate is already pushing thirty billion dollars mounting costs or taking their toll on v.w. with the company returning lower than expected third quarter results folks wagons
north american group declined an interview but told d. w. our top priority is to make the settlement process the seamless and convenient as possible we are working hard and dedicating substantial resources to make sure this is the case. but how is this affecting the company's ability to focus on the future and many manufacturers are investing huge amounts in emerging technologies such as automation and electric vehicles competition from silicon valley companies like tesla and google means traditional car makers are under pressure to keep up. china is going to have all electric cars produced by twenty forty. by twenty thirty they clearly want to have only electric cars so in europe there are really good incentives right if they want to survive they have to follow these technologies. part of the v.w. diesel settlement did include a commitment to invest in zero emissions technology on the funding of environmental
projects but for now a top priority for v.w. will be to get cars like these ones in baltimore fixed and back on sale absent that's it you're up to date with the latest from the wild all business from will find us on facebook follow us on twitter at the w on disco business on there as well as an essay help raise my handle have a great weekend. when
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on twitter and facebook. yeah to my store and i think one day this war will be considered a cruel and unjust war but. certainly all citizens of ukraine every man woman and child is she not the only friend their homeland is the enemy invades. no one wants russia here don't need to nuke which is the. rebel against the mighty global news that matters. d. w. made for mines. climate change. waste. pollution. isn't it time for good news eco africa people and projects that are changing our fire meant for the better it's up to us to make a difference let's inspire. the do it guys.