PPRuNe Forums - View Single Post - British Airways - CC Industrial Relations Mk VI
Old 25th Feb 2010, 23:03
  #1514 (permalink)  
JayPee28bpr
 
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Litebulbs #1500

Where are you getting your £400m improvement in the financials from? The consensus forecasts I'm looking at suggest BA's loss for the year is now expected to be ~£565m. Prior to the Q3 trading statement, consensus forecasts were ~£600m loss, so the improvement is closer to £35m rather than £400m. A small profit (~£30m) is forecast for 2011. To put that in perspective, £30m will be about a 3% return on capital, following two years in which shareholders' funds will have declined by half.

I really think you need to widen your horizon a bit, and take a look at some of BA's other stakeholders, not just its various employee groups. When you consider the T&C changes being discussed here in the context of a 50% drop in shareholders' funds, and a decline in share price from the peak in early-2007 of 578p to 210p as of yesterday, a result for existing staff of no pay cuts and no compulsory redundancies is surely pretty good.
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