Originally Posted by
Tartiflette Fan
".... But M, all in the same Group, and with a CEO who has stated he is against intervention for one of the OpCos in the Group but appears to be happy to take it for another.."
Since discrete figures have been published for BA, presumably - as you would expect - each company is run separately and maybe the Spanish divisions are not making much/any profit. IAG may also be being pressurised by the Spanish government to make minimal cuts and being rewarded for not doing so.
Anyway, as MM has pointed out ( and the optics are irrelevant ) no company can afford to use its cash reserves to employ 25% of its staff to sit at home for six or nine months, as it may need those reserves later if this terrible situation continues.
You’re right - it needs those reserves to pay shareholders special dividends (like the €700 million last year) and the directors their bonus and share options. Didn’t the CEO get a pay raise of 62%?
Not forgetting share buybacks, which were €1 BILLION over the last two years.
Oh, and buying other airlines, such as the tabled Air Europa purchase for another €1 BILLION.
If a grounded airline has a cash burn of $10m per day, then IAG’s $9bn liquidity can last approx 3 years, before any further borrowing is needed.