PPRuNe Forums - View Single Post - BA Could Run Out of Cash in Five Months?
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Old 7th Oct 2001, 13:05
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evolante
 
Join Date: Jul 2000
Location: California
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Unhappy

This post is not surprising - if anything eight months seems optimistic.

BA are negotiating with all suppliers other than fuel and aircraft lessors - for a 3 month interest free extension on settling bills

Recent work undertaken in March/April by a BA contractor was not settled in full until late September

The comment about aircrat values falling is true in the short term - BA will need to consider that older aircraft in their fleet will end uo potentially being parked or at best with dramatically reduced sale values - 50% would be my guess.

A widespread sale and lease back of owned assets would unlikely appeal to banks and leasing companies at this time of uncertainty.

As with Virgin - the question has to be - where will the cash come from?
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