UK government says no industry-wide bailout for aviation

[torvalds]

Originally Posted by sheikhthecamel

And a whole lot of unemployed people who are consuming less, paying less tax and drawing benefits. There are several "layers" of indirect consequences.

The chancellor doesn't want to bail them out either... I guess he (and his team) knows a thing or two about this whole situation we are in right now.
An airline will be replaced by another airline and the unemployed will be employed again (paying tax, etc). Or is it going to be the end of mankind as we know it?

[covec]

Originally Posted by torvalds

The chancellor doesn't want to bail them out either... I guess he (and his team) knows a thing or two about this whole situation we are in right now.
An airline will be replaced by another airline and the unemployed will be employed again (paying tax, etc). Or is it going to be the end of mankind as we know it?

Just wondering in the light of your comment if governments - and airlines - have their fingers deep inside the Derivatives Pie...those self-same financial vehicles that helped fuel the 2007-2008 crisis.

Derivatives are such a large part of the global flow of cash as to be unquantifiable. Someone somewhere is going to be left with a very large bill/loss. And I suspect that that is why bail-outs are not popular with governments at present. I hope not.

[PeterWeb]

Originally Posted by esscee

Notice Singapore have installed temperature sensing equipment at entry points, so they can check each arrival's body temp.

Yes, and in other public spaces - though they are aware that fever is sometimes a short-term and sometimes a non-existent symptom of Covid-19, so it's just another layer of protection.
(See https://www.todayonline.com/singapor...ations-experts )

Singapore - along with South Korea and Taiwan and maybe Hong Kong - are among the early success stories in this disaster, and we should all be paying close attention to them.

[Sky journalist] checked many times by people in full Hazmat gear! Now if China is doing that to prevent people bringing the virus back in to their country, then they must know much more about it than what they have released to the rest of the world.

I disagree. The infection rate and mortality rate estimates released to the world as far back as late January were plenty bad enough to warrant serious concern everywhere. But a lot of people chose not to trust those numbers and to minimise the risk they represented - this in spite of years of warnings from those most knowledgeable about the world's vulnerability to a new pandemic.

There were plenty of correct arguments about "it's way too soon to take these numbers as firm" and an equal number of specious arguments about how much better health systems or population health might be elsewhere, or how the virus (somehow) wouldn't get to the rest of us, so we needn't worry.

That worked out well.

[wisecaptain]

Rexbanner , IAG have no right to a bailout until they take steps to raise equity. As usual 'employees' are taking a hit while shareholders are given priority.
IAG must sell off/dilute its share base by selling all those hundreds of millions of stock buybacks they did . Then they must go to the debt markets to raise further capital if required.
Only then if that is insufficient can they be considered for govt loans.
These airlines have failed to ensure sufficient capital backstops , 1 month is not enough so they must do the above to ensure their survival .
If they dont then they dont deserve to survive at the tax payers expense .

[marchino61]

Originally Posted by wisecaptain

Rexbanner , IAG have no right to a bailout until they take steps to raise equity. As usual 'employees' are taking a hit while shareholders are given priority.
IAG must sell off/dilute its share base by selling all those hundreds of millions of stock buybacks they did . Then they must go to the debt markets to raise further capital if required.
Only then if that is insufficient can they be considered for govt loans.
These airlines have failed to ensure sufficient capital backstops , 1 month is not enough so they must do the above to ensure their survival .
If they dont then they dont deserve to survive at the tax payers expense .

Who exactly do you think will buy IAG equity - at any price?

Debt maybe, but equity is a non-starter.

[cashash]

Originally Posted by marchino61

Who exactly do you think will buy IAG equity - at any price?

IAG currently trading at £1.98 - so someone must be buying.

[marchino61]

Originally Posted by cashash

IAG currently trading at £1.98 - so someone must be buying.

I suppose a rights issue at say £1.00 might be possible, but that might only raise a billion or two. I don't know if that would be enough, given its revenue last year was closer to 20 billion.

[covec]

Radio Scotland reporting easyjet has funds until August?

If they can cancel their new aircraft order then the situation improves?