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The UK aviation industry is getting a lift from both manufacturers of planes and the companies that operate them, according to Chief Investment Officer Haig Bathgate.


The decision by carrier Emirates to order 50 Airbus A380s is a boost to manufacturing in the UK – wings for the superjumbos are made at Broughton in Wales and Filton near Bristol, supporting thousands of jobs.

The air-transport sector should also get good news when Easyjet releases its results tomorrow, which the company indicated last month should be at the top end of expectations. Easyjet's fortunes are in the ascendant partly because it operates on premium routes and therefore manages to attract higher fares from business travellers. That's in contrast to difficulties at Ryanair, which has built its business on flying to lower cost, second-tier airports that happen to be further from the cities they serve.

A signal that the UK economy overall is improving can be seen in the results at Majestic Wines, which said today it increased sales and profits. This may indicate a step-up in activity by the British consumer, a trend that may be noted by the Bank of England's Monetary Policy Committee when they release the minutes of their last meeting later this week.

Haig also commented on Aberdeen Asset Management's purchase of Scottish Widows Investment Partnership, which will make it Europe's largest listed fund-management business.

This content was generated prior to Turcan Connell Asset Management Limited operating as Tcam.

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