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Old 6th Nov 2009, 18:07
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Walnut
 
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However buried in the figures were NAPS pension liabilities of £2.6B, (using BA's numbers not the trustees) Since they said in the same report they only had about £1.5B of cash, then the stock market reaction was bizarre. Technically I believe BA is close to bankruptcy. Staff costs are about 20% of their outgoings, so even cutting circa 5000 staff or about 1/8th of their headcount will only save £200Mpa max. Until revenue is improved then serious problems will continue.
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