My prediction for Friday the 6th (think they should have kept this announcment to Feb 13th,a Friday!!).I can only predict a IFS department none of us could ever have seen coming!!.
This is the day of the 3rd Quarter results, I imagine nothing else will get announced that day. Maybe this date is making people think there will be a big IFS announcement as my experience is things like this don't have a date set for their announcement.
We at BA have a cash reserve of approximately £1.8 billion.
Over the last ten years we have made enough profit year on year that if we lost £150 for the next 3 years we would still be in profit!!.This takes into account the new B777's.
The actual loss could be about £240 million but this is offset by some profit last year, hence £150m.
Yes BA does have large cash reserves but once you get below a billion it gets a bit tougher and around 500m then you will start to get problems with obtaining credit etc so then suppliers will start demanding cash quicker and it starts to become a downward spiral.
BA, or any other company cannot sustain losses of approx £300 million a year which is what it could potentailly be next year if it does nothing, and that is all departments, not just the one in question here.