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Old 14th Aug 2006, 17:06
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Skylion
 
Join Date: Jul 2003
Location: UK
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True,- BA's "debt" has been going down annually , but that is largely just another year's aircraft leasing and financing costs,- not bundles of spare money from profits. As each year goes by and these costs are paid ,they reduce the outstanding liability under the contracts. Eventually as the leases expire and the aircraft are handed back to the leasing companies and banks the debt becomes zero. Wonderful . The only problem then is that there are no aircraft left, so all flying ceases. By not adding much needed long haul aircraft over the last few years BA have been able to show these " debt reduction" figures ,but they are acheived at the expense of expansion and handing markets and market share to the competition. Fact is BA is far from flush with cash and , relatively, they are shrinking. It is called managed decline.
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