PPRuNe Forums - View Single Post - Could British Airways really go bust or not?
Old 21st Jun 2009, 22:38
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racedo
 
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In short the answer is Yes they can the likelihood is NOT as there would be some type of Assistance offered which would ensure it doesn't happen.

Based on the media article 40% of the Premium passengers were bankers who aren't going to be flying anywhere for a while. There isn't another group who can easily fill that gap in the medium and I doubt in the long term at the prices companies were willing to pay. There goes a huge cash influx.

Ultimately it will come down to the amount of cash they posess as there is a figure reached when bankers start to get worried and suppliers reduce their credit from 7-8 weeks down to 1 week.

9/11 changed the marketplace and while post 9/11 the industry boomed there was a clear warning that the slowdown for 1 year after that day was the time to look at what you were doing and slim down accordingly to match revenue and costs.

I believe in 10 years time people will look at the Salaries people were on now and wish they could earn that amount.
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