PPRuNe Forums - View Single Post - IAG: BA restructuring may cost 12,000 jobs
Old 29th Apr 2020, 14:37
  #56 (permalink)  
nicolai
 
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It doesn't take long for an airline the size of BA to lose a billion pounds, or two billion pounds. BA will be bust next year without one of: significant government funding, significant cost cutting, or significant and rapid resumption of air travel. The government isn't going to lift a finger that's clear (and the short-sighted environmental monomaniacs who think air travel and transport is an optional luxury that must be destroyed will only encourage that), nor is the government (of many countries) going to allow a rapid resumption of air travel.

So BA has cut costs or go bust.

And had it all gone fine this year, would everyone have been liking BA if they sat on their money instead of giving it to shareholders - and shareholders includes your pension funds, your personal stock investments (UK ISAs, and so on), life insurance companies, and all that sort of thing. Hardly "fat cats", actually your bread and your butter?

It's easy to blame a company for making a profit and paying a dividend last year instead of sitting on the cash. I can tell you for sure that companies do get blamed for not paying dividends if they make a profit - then they're selfish fat cats not paying out to their well-deserving shareholders who need a return on their investment.

Don't be so fast to criticise BA when they acted as companies are demanded to act in normal economic times and now they have to handle a deadly (to the company) crisis on their own.


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