So what's
this US regulatory filing all about, then?
Quote:
British Airways currently operates twice daily all business class service between London City Airport (LCY) and New York (JFK). ...
Effective June 11, 2012, the British Airways PIc LCY-JFK-LCY service will be operated by BA Limited, a newly created British Airways subsidiary, using the same two A318 aircraft now operated by British Airways Pic. BA Limited anticipates that the UK Civil Aviation Authority will issue a Type A Operating License and Air Operator Certificate to BA Limited on June 11, 2012 authorizing the service proposed here. Because the two A3I8 aircraft used to operate the service cannot be listed on two AOCs simultaneously, and because each aircraft operates daily LCY-JFK service, in order to avoid service interruptions, each will be deleted from the British Airways AOC on the same date that the CAA issues the new BA Limited AOC and the new BA Limited operating license.
Something is afoot, no?
Cyrano - it seems you were right to pick up on this.
Do you remember how around 2005, when banks were falling over themselves to lend you money for a mortgage to buy a property ? In return for the cash loan, the bank would take a first charge on your property in the event of default. The bank would then securitise the mortgages into a bond, and sell it to other investors.
It seems that BA has now decided to do a securitisation of part of their business and some associated slots !
Can only guess that this means that IAG are currently having great difficulty raising cash in the bond market at sensinble interest rates by normal means, and are being forced to put up some valuable collateral to entice investors into lending them the money.
This will generate big fees for the relevant banks, but it indicates that wholesale investors (pension funds, insurers, etc) perceive IAG as far from a healthy company and generally a bad risk.