Will BA Go Bust!
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Will BA Go Bust!
Before you answer the question, best you read: http://business.timesonline.co.uk/to...cle6543863.ece & then take a look at what the the Virgin King has to say.
Branson to Ministers: Let BA go bust.
By Dominic O'Connell at The Sunday Times
Sir Richard Branson has rubbed salt in British Airways’ wounds by declaring BA practically worthless, and urging the government to resist any attempts to bail it out.
Branson’s comments will incense BA management, which this week will hold vital talks with cabin crew and ground staff over pay cuts, lay-offs and changes to working conditions aimed at saving £100m a year.
Willie Walsh, chief executive, who is trying to stem big losses and has warned that BA faces a “fight for survival”, wants a deal by June 30.
Branson, who founded Virgin Atlantic, BA’s biggest commercial rival, said ministers should not be tempted to step in. “It would not be in Britain’s interest,” he said.
“We and others are standing by ready to take on their routes and runway slots at Heathrow if they get into serious trouble. I thought the US government’s bail-out of the car companies was a bad idea and it’s the same for BA.”
Virgin had looked at a bid for BA, Branson said, but concluded that the company’s liabilities – in particular its pension deficit – were too great.
“It’s not worth much anymore because of the liabilities. We were thinking about if the shares went under 100p (they closed on Friday at 136½p), but it would be better to wait for its demise,” he said.
Yesterday a BA spokesman said: “This is fantasy. There are no talks with government, and there will be no talks. We have opposed state aid and our position has not changed.”
The fraught relationship between the airlines has worsened. Keith Williams, BA’s finance director, recently questioned Virgin’s claims of a profit, saying its figures went into “Virgin accounting territory”.
It emerged this weekend that Walsh has snubbed a request to give evidence to the House of Commons transport committee on July 1 – the day after the deadline for the union talks. MPs are preparing a report on the future of aviation.
“Given the extremely wide ranging nature of the subject of investigation – which goes far beyond BA – he has reluctantly declined,” an airline spokesman said.
Question is! What's in store for us Downunder?
Branson to Ministers: Let BA go bust.
By Dominic O'Connell at The Sunday Times
Sir Richard Branson has rubbed salt in British Airways’ wounds by declaring BA practically worthless, and urging the government to resist any attempts to bail it out.
Branson’s comments will incense BA management, which this week will hold vital talks with cabin crew and ground staff over pay cuts, lay-offs and changes to working conditions aimed at saving £100m a year.
Willie Walsh, chief executive, who is trying to stem big losses and has warned that BA faces a “fight for survival”, wants a deal by June 30.
Branson, who founded Virgin Atlantic, BA’s biggest commercial rival, said ministers should not be tempted to step in. “It would not be in Britain’s interest,” he said.
“We and others are standing by ready to take on their routes and runway slots at Heathrow if they get into serious trouble. I thought the US government’s bail-out of the car companies was a bad idea and it’s the same for BA.”
Virgin had looked at a bid for BA, Branson said, but concluded that the company’s liabilities – in particular its pension deficit – were too great.
“It’s not worth much anymore because of the liabilities. We were thinking about if the shares went under 100p (they closed on Friday at 136½p), but it would be better to wait for its demise,” he said.
Yesterday a BA spokesman said: “This is fantasy. There are no talks with government, and there will be no talks. We have opposed state aid and our position has not changed.”
The fraught relationship between the airlines has worsened. Keith Williams, BA’s finance director, recently questioned Virgin’s claims of a profit, saying its figures went into “Virgin accounting territory”.
It emerged this weekend that Walsh has snubbed a request to give evidence to the House of Commons transport committee on July 1 – the day after the deadline for the union talks. MPs are preparing a report on the future of aviation.
“Given the extremely wide ranging nature of the subject of investigation – which goes far beyond BA – he has reluctantly declined,” an airline spokesman said.
Question is! What's in store for us Downunder?
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Originally Posted by Tankengine
Dixon's last job was to try and merge QF and BA!
Or so it is rumoured
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wod, that sounds about right from my recollection. Seriously could you imagine the pickle that Qantas would be in if we had been taken over by the now defunct APA bid or worse done a deal with BA and taken on their nightmare industrial agreements and debts
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My point Wod is that Dixon DID want a 55/45 deal when a 95/5 deal might still be bad! Of course that would not have happened if the APA deal got up anyway!
If BA folds and stops operating then we will do a better on the LHR run!
If BA folds and stops operating then we will do a better on the LHR run!
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Tankengine - Point taken
Incidentally, if BA folded who would pick up the slack on the Kangaroo Route?
Obviously Virgin Atlantic, who already operate down here, would expand, but who else is there in the UK who could take up Long haul and transatlantic ops?
Incidentally, if BA folded who would pick up the slack on the Kangaroo Route?
Obviously Virgin Atlantic, who already operate down here, would expand, but who else is there in the UK who could take up Long haul and transatlantic ops?
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...& SIA, Qatar, Etihad, Virgin Australia, Cathay, QF (if it survives).
Branson is on the money.
BA is a pension fund with an airline attached.
There is a high probability it will not be bailed out as the British government is so heavily indebted already, but with an election on the horizon....
True capitalism is destructive.
I think it's known as 'creative destruction'.
Not a lot of help for those working at BA now, and this is just my view.
Branson is on the money.
BA is a pension fund with an airline attached.
There is a high probability it will not be bailed out as the British government is so heavily indebted already, but with an election on the horizon....
True capitalism is destructive.
I think it's known as 'creative destruction'.
Not a lot of help for those working at BA now, and this is just my view.
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Tis time for some 'Disruptive Innovation' by the likes of BA,Qantas,Etc.
Nothing against; SIA, Qatar, Etihad, Cathay, Etc but would presonally much rather see QaBa doing the flying between the UK and Auss.
Nothing against; SIA, Qatar, Etihad, Cathay, Etc but would presonally much rather see QaBa doing the flying between the UK and Auss.
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no way/cut the cord
rumor has it the pension deficit is around 3 billion pounds and growing. you have to understand that all former senior managers/pilots/engineers/cabin crew,etc.(eg.after 5 years at BA Sir ROD E is on a life long pension from BA of a 6 figure number) are being paid a pension. there is no way thay can fund this now or in the future. what's the answer? some BA unions contemplating strike actions over summer (that would certainly accelerate the end game).
I think unless the UK government finds an innovative solution i cant see them operating another 2 years.
I think unless the UK government finds an innovative solution i cant see them operating another 2 years.
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......interesting to note that Dixon was also recently given the gig as "Aviation Consultant" with SEABURY.
If the name of this company does not ring any bells.
Google it !
This was the crowd that QF contracted to facilitate the APA bid process.
The stench around this sorry saga makes me want to puke !
If the name of this company does not ring any bells.
Google it !
This was the crowd that QF contracted to facilitate the APA bid process.
The stench around this sorry saga makes me want to puke !
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Don't lose too much sleap Stubby.
Even if the Government's Aviation Policy Review cuts the Roo some Sale Act slack, any future change in Qantas' ownership will be via Employee Buyin - Not! Management Buyout.
Even if the Government's Aviation Policy Review cuts the Roo some Sale Act slack, any future change in Qantas' ownership will be via Employee Buyin - Not! Management Buyout.
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I can appreciate your concern woodeneye but until QaBa can do uk-aus direct then they may have some competition on the said routes via Asia or the Middle East so it is fair game for any others.
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They have a solution
They simply go broke, and set up a company to buy at the fire sale, and start again with a different name, but wthout the debts.
Look at history.
Look at history.
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Jetstar saves QF Group
One for the Qf/Jetstar bagging fraternity.
Part of BA's problem is cited as their over emphasis of Premium classes to the detriment of Economy.
Perhaps the QF strategy of trying to look after all segments of the market through Mainline to Jetstar has been just a little bit helpful to the Group results..
(Helmet, coat, door)
Part of BA's problem is cited as their over emphasis of Premium classes to the detriment of Economy.
Perhaps the QF strategy of trying to look after all segments of the market through Mainline to Jetstar has been just a little bit helpful to the Group results..
(Helmet, coat, door)
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Tough Call,
LCC's work at the moment with low fuel costs and brand new aircraft that are cheap to run/maintain.
Certainly beat an old, fuel guzzling mainline fleet that needs to be replaced.To top it off premium traffic is down.
How profitable would Jetstar be with old 737 classics, 767's or 744's all needing lot's of attention.I'd argue it would be just as bad as mainline.
I'll agree a good hedge at present.
If and when the economy picks up again with higher fuel costs then it's not as rosy for the LCC's as we saw a few years back.
Swings and Roundabouts
LCC's work at the moment with low fuel costs and brand new aircraft that are cheap to run/maintain.
Certainly beat an old, fuel guzzling mainline fleet that needs to be replaced.To top it off premium traffic is down.
How profitable would Jetstar be with old 737 classics, 767's or 744's all needing lot's of attention.I'd argue it would be just as bad as mainline.
I'll agree a good hedge at present.
If and when the economy picks up again with higher fuel costs then it's not as rosy for the LCC's as we saw a few years back.
Swings and Roundabouts
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I agree that BA has made itself to dependant of Heathrow, we all mostly think of BA as London Airways anyway.
I'd like to think if the gov. was to step in which i have a feeling they would if BA fals off the cliff to expect BA to change from becoming so dependant of Heathrow and move back into Britain.
I'd like to think if the gov. was to step in which i have a feeling they would if BA fals off the cliff to expect BA to change from becoming so dependant of Heathrow and move back into Britain.
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Who will go bust first BA or VS?
It is all politics with Branson.
According to the European edition of todays Financial Times, BA is better funded than VS, so I would say VS 1st then BA!
FT.com / Lex / Transport & Infrastructure - British Airways
According to the European edition of todays Financial Times, BA is better funded than VS, so I would say VS 1st then BA!
FT.com / Lex / Transport & Infrastructure - British Airways
