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Old 20th Jul 2010, 08:12
  #651 (permalink)  
JayPee28bpr
 
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Litebulbs #649

What is more offensive, scab or bassamentalist?
I think you're missing the point. Nobody in the investment community cares. The point of making an investment is primarily to make money. Any activity by the company has to be viewed simply in terms of whether it adds to sustainable (ie long term) profitability. Name calling amongst the staff is irrelevant. It isn't going to have a material impact on profits long term. Those that insist on doing it will get managed out of the business one way or another eventually, though if it really is just one person calling someone a scab and another calling someone a BASSAmentalist, I suspect most outsiders would just tell both to grow up.

In terms of the current dispute, the real issue from an investment perspective is, and always has been, is BA a good enough long term risk to warrant financing their fleet renewal needs? What has been lost in all the minutiae of the last 12 months is that there is more to BA than the cabin crew bubble. BA has an old, gas guzzling fleet which, with oil now at $75-ish and rising, versus sub-$30 and steady a few years ago, is now a very painful problem that needs addressing. However, nobody is going to finance resolving that problem if BA has more expensive and less flexible crew (flight and cabin) than its competitors. Investors want comfort that sufficient cash flow will be derived in order to pay them back. Cutting flight operating costs via reductions in cabin crew staff numbers and more flexible use thereof is key to delivering better cash flow.

What your fellow reps in Unite/BASSA simply fail to comprehend is that there are many other stakeholders in BA's business who all believe they have a legitimate claim on the business. BA does not exist to meet the needs of just its staff. Staff are a key stakeholder (or holders if you want to break down by function). They are not the reason the business exists though. At some point the bulk of BASSA's members will realise this fact. Unfortunately it appears many will have unnecessarily paid a considerable price to be taught this lesson.
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