BA out of the FTSE 100?
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BA of the FTSE 100?
I believe to have caught a report on CNN that BA is being kicked of the FTSE 100 due to very poor performance. Is there anything to it? 
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BA Kicked Out Of FTSE 100
British Airways (LSE: BAY.L - news - msgs) is to be kicked out of the prestigious index of leading UK shares for the first time in its history as a private company.BA, along with EMI and International Power (LSE: IPR.L - news - msgs) , is set to be demoted from the FTSE 100 in the latest quarterly reshuffle of Britain's biggest plcs.
September 11
The airline's demotion follows a brutal year for the firm.
The company axed jobs, capacity and routes as it struggled to cope with a fall in demand.
The slowing global economy and aftermath of September 11 meant sales fell away and profits collapsed.
In May it unveiled losses of £200m - the first full-year losses since it was privatised 15 years ago.
Shares
Its share price has reflected the dramatic change in the group's fortunes.
On the day of the terror attacks, BA's stock dived 21% to 208p.
Over the entire year, the shares have collapsed by almost 49%.
On Tuesday night, they closed up 3p at 135p, giving it a value of £1.46bn, but not enough to save BA from demotion.
British Airways (LSE: BAY.L - news - msgs) is to be kicked out of the prestigious index of leading UK shares for the first time in its history as a private company.BA, along with EMI and International Power (LSE: IPR.L - news - msgs) , is set to be demoted from the FTSE 100 in the latest quarterly reshuffle of Britain's biggest plcs.
September 11
The airline's demotion follows a brutal year for the firm.
The company axed jobs, capacity and routes as it struggled to cope with a fall in demand.
The slowing global economy and aftermath of September 11 meant sales fell away and profits collapsed.
In May it unveiled losses of £200m - the first full-year losses since it was privatised 15 years ago.
Shares
Its share price has reflected the dramatic change in the group's fortunes.
On the day of the terror attacks, BA's stock dived 21% to 208p.
Over the entire year, the shares have collapsed by almost 49%.
On Tuesday night, they closed up 3p at 135p, giving it a value of £1.46bn, but not enough to save BA from demotion.
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Whilst the events of September 11th 2001 dealt a blow to the company that in itself cannot be the only reason for the poor performance. As a shareholder I believe that too many people are using September 11th to mask old managerial inefficiencies in this and many other companies. It is a disgrace.
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As a shareholder and employee, I have watched the share price fall steadily from £7 to it's present level over the last 5 years. Sept 11th caused a glitch, but the long term trend is due to poor management. It was galling to hear the financial press relating BA's current share price to the events a year ago today when the fault lies almost entirely on the desks of those at Waterside.
The directors must be so ashamed that the link to the share price history on their website (link here) has been removed or hidden!
The directors must be so ashamed that the link to the share price history on their website (link here) has been removed or hidden!
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What Danny and EDDNR have said is very true - if 9/11 hadn't happened BA would still be in the same mess.
Appaling management cannot be excused by outside events, the sooner the board (who seem to treat the airline like a personal air-taxi service) and the senior management are gone the better.
I may seem annoyed, but if you had lost as much as me you would be too!
Appaling management cannot be excused by outside events, the sooner the board (who seem to treat the airline like a personal air-taxi service) and the senior management are gone the better.
I may seem annoyed, but if you had lost as much as me you would be too!
So close to staying...!
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Just to add insult to injury - this on Ananova
Ryanair asks London Stock Exchange for admission to FTSE 100
Ryanair Holdings PLC said it has today written to the London Stock Exchange seeking admission to the FTSE 100.
Ryanair said its application is rooted in the belief that there should be at least one representative of the airline industry in the FTSE 100 index to replace British Airways. Ryanair said it is the second largest airline by passenger numbers operating to and from the UK, and the second largest airline in Europe by market capital, currently £2,742 million.
Ryanair's financial director, Howard Millar said, "Today Ryanair's market capital is almost twice that of British Airways, and growing... As one of Europe's fastest growing and most profitable airlines, we believe Ryanair should be admitted to the FTSE 100 Index to replace British Airways which has been ejected".
© AFX News
Story filed: 15:29 Wednesday 11th September 2002
Ryanair asks London Stock Exchange for admission to FTSE 100
Ryanair Holdings PLC said it has today written to the London Stock Exchange seeking admission to the FTSE 100.
Ryanair said its application is rooted in the belief that there should be at least one representative of the airline industry in the FTSE 100 index to replace British Airways. Ryanair said it is the second largest airline by passenger numbers operating to and from the UK, and the second largest airline in Europe by market capital, currently £2,742 million.
Ryanair's financial director, Howard Millar said, "Today Ryanair's market capital is almost twice that of British Airways, and growing... As one of Europe's fastest growing and most profitable airlines, we believe Ryanair should be admitted to the FTSE 100 Index to replace British Airways which has been ejected".
© AFX News
Story filed: 15:29 Wednesday 11th September 2002
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As a BA employee I am saddened but not at all surprised that BA has fallen out of the FTSE 100. I spent 41 mins today waiting for crew transport. I do not know how much it cost the company but the Capt was adamant that BA was paying him £1 a minute unnecessary overtime just to wait for transport. He did not want the overtime - he would rather have got away from work on time and missed the rush hour snarl-up on the M25. We were not left stranded however due to lack of transport. It seems that it is the transport dept rule that bus drivers cannot carry pax in 2 directions. Now I know some people like to have a dig at BA pilots, but could you imagine if we became too precious to carry pax to AND from a destination. BA will only regain its status as once proud national flag carrier if it stamps down on groups like this.
Believe me. This is just one example of ludicrous laziness or wastefulness that must be eradicated.
Believe me. This is just one example of ludicrous laziness or wastefulness that must be eradicated.
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I don't think companies "apply to join" the FTSE 100. I think you're either in or not based on the total value of your company. Nor does it have to have a "representative" from each industry. This looks like a tacky PR stunt by Ryanair.
After the trackers have sold their shares, it would be a good time to buy. Then sell them back to those same trackers when BA returns to the FTSE 100 in due course.
After the trackers have sold their shares, it would be a good time to buy. Then sell them back to those same trackers when BA returns to the FTSE 100 in due course.
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Question to BA shareholders,
You have known for years the company is a dog, why didn't you sell your shares ?
You might work for BA but an emotional attachment to a company means you should NEVER consider investing in it. It almost always leads to bad investment decisions.
There are thousands of companies listed on the London exchange, I would advise looking elsewhere.
As the legendary investor Warren Buffet has said: a lot of investers would be a lot better off if the Wright brothers had never left the ground!
Regarding Ryanair: a company must be UK domiciled to be included in the FTSE 100. I believe this is not the case with Ryanair and O'Leary knows it. He is not stupid. It was a silly PR stunt.
You have known for years the company is a dog, why didn't you sell your shares ?
You might work for BA but an emotional attachment to a company means you should NEVER consider investing in it. It almost always leads to bad investment decisions.
There are thousands of companies listed on the London exchange, I would advise looking elsewhere.
As the legendary investor Warren Buffet has said: a lot of investers would be a lot better off if the Wright brothers had never left the ground!
Regarding Ryanair: a company must be UK domiciled to be included in the FTSE 100. I believe this is not the case with Ryanair and O'Leary knows it. He is not stupid. It was a silly PR stunt.
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Well, WindyLemon or GustyOrange or GaleforceLime!
As a shareholder and employee, I believe in the company I work for! Undoubtedly (and even your EasyJet and RyanAir customers will agree!) BA has the most professional operation, the most up to date equipment, and the best trained staff worldwide! Our only problem is our Senior Management!
Holding shares gives me a very small voice once a year when I'm allowed to vote at the AGM.
Once we get rid of our Board and jettison Skippy from 36000 feet as "surplus to requirements", I'm sure BA will bounce back!
As a shareholder and employee, I believe in the company I work for! Undoubtedly (and even your EasyJet and RyanAir customers will agree!) BA has the most professional operation, the most up to date equipment, and the best trained staff worldwide! Our only problem is our Senior Management!
Holding shares gives me a very small voice once a year when I'm allowed to vote at the AGM.
Once we get rid of our Board and jettison Skippy from 36000 feet as "surplus to requirements", I'm sure BA will bounce back!
