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IAG: BA restructuring may cost 12,000 jobs

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IAG: BA restructuring may cost 12,000 jobs

Old 29th Jul 2020, 11:30
  #1401 (permalink)  
 
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Looks like BA are going to shut the HQ:

https://www.headforpoints.com/2020/0...e-head-office/

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Old 29th Jul 2020, 11:32
  #1402 (permalink)  
 
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Originally Posted by autothrottle View Post
Be careful with this. Governments that Nationalise tend to streamline more aggressively before selling off. .
Fair warning..I suspect some in the company think somehow they can force re-nationalisation and this will solve all their problems.

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Old 29th Jul 2020, 11:56
  #1403 (permalink)  
 
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Originally Posted by 747-436 View Post
Looks like BA are going to shut the HQ...
And move it to East base at Hatton Cross...

It is our understanding that the airport operations team will move into the British Airways offices at Terminal 5, whilst the global operations team – including senior management – are going into Technical Block C at Hatton Cross.
Rename it Speedbird House and it truly will be back to the future ..
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Old 29th Jul 2020, 12:32
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I believe the idea that the airline is in danger of nationalisation is credible. After all the trains buses and tube system are effectively being Government funded with very few passengers. Various countries eg Germany are taking equity stakes in exchange for funding.
Once Brexit takes place IAG will have to be broken up if BA is going to be allowed to function freely in the U.K. It is planning to sell Waterside so clearly it is in a deep hole as the cash raised, assuming it is saleable, is only going to be minimal
The UK will need a national carrier with the two contenders Virgin and EasyJet unable to provide the complete coverage needed. What might make the Government pause is the potential for an almost financial bottomless pit
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Old 29th Jul 2020, 12:39
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That is exactly what I think. There two of us, almost a done deal...
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Old 29th Jul 2020, 13:18
  #1406 (permalink)  

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Once Brexit takes place IAG will have to be broken up if BA is going to be allowed to function freely in the U.K.
Please explain because you clearly know something we don't.
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Old 29th Jul 2020, 13:29
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IAG will be broken up. Not sure that it'll have anything to do with Brexit but each country will want to save their national carrier. I imagine that the British government will foresee a need to have a national carrier post "transition ".
I mean, how can they plan on trade with the far reaches of the commonwealth and the world without a practical Airline.

I think that we are rapidly going beyond the point of believing that IAG can survive in it's own right. Maybe some are still clinging to hope.
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Old 29th Jul 2020, 13:44
  #1408 (permalink)  
 
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Originally Posted by kungfu panda View Post
I imagine that the British government will foresee a need to have a national carrier post "transition ".
The danger is any assumption (if there is one ) that that carrier would have to be "rump" BA.

Given BA's popularity with the general public one vote winner might be Virgin for long Haul, some iteration of Easyjet to pick up Short Haul?

I get very uneasy with the rhetoric I'm hearing from some of my cabin crew friends that the government won't let BA go/BA fail. I hasten to add I don't think we are anywhere near that ATM but there's some dangerous talk doing the rounds.
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Old 29th Jul 2020, 14:01
  #1409 (permalink)  

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I read a lot of fanciful guesswork but you have written nothing based on hard facts,
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Old 29th Jul 2020, 14:13
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Hard fact: Company losing £31m per day
Hard Fact: Summer passenger numbers/Recovery less than hoped
Hard Fact: Distribution of a Vaccine will not be before the end of Q1 2021
Hard Fact: BA has 5 months worth of Cash
Hard Fact: If successful a rights issue will raise £2.8B giving an additional 3 months cash

What do you mean, there are insufficient hard facts? Guesswork? The writing is on the wall, the same as it was with Norwegian.
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Old 29th Jul 2020, 15:07
  #1411 (permalink)  
 
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These aren’t hard facts.
BA have stated a cash-burn of £20m per day.
The rest is speculation.
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Old 29th Jul 2020, 15:12
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Every time I see the daily loss figures they appear to go up by another million or so?
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Old 29th Jul 2020, 15:14
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kungfu panda

Who knows?
How did British Leyland work out?

Jaguar Land Rover is a British company, wholly owned by an Indian company, Tata, since 2008 I think.
Looks like the 49% rule is being abused?
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Old 29th Jul 2020, 15:18
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777JRM

No, within reason, what I said were clear facts. I understand the need to stick your head in the sand. We did at Norwegian. We could see what was going on from 2015. There was time to digest reality. With BA the situation has happened so fast, there's not been time to overcome the shock and become pragmatic.
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Old 29th Jul 2020, 15:43
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Norwegian had an unsustainable growth model, low profit margins and extreme bad luck with airframes/engines. Hardly comparable.
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Old 29th Jul 2020, 15:45
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Here’s a clear fact:

https://simpleflying.com/british-airways-newquay-pso/

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Old 29th Jul 2020, 15:48
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Contradiction?
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Old 29th Jul 2020, 16:43
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Originally Posted by Superpilot View Post
Norwegian had an unsustainable growth model, low profit margins and extreme bad luck with airframes/engines. Hardly comparable.
They were losing money at a mathematically unsustainable rate with a certain outcome. Totally comparable.
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Old 29th Jul 2020, 16:54
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BA will undoubtedly require a bailout. The only question is will it be public, private or both. Personally my money is on the latter, followed by the former.

The politics are interesting. As others have said, does the government really want Brexit Britain to suffer the embarrassment of its national airline going bust within a couple of months of striking out on its own? Not to mention the practicalities of being an island trading nation with no connections to the outside world. Personally I don’t think the conservatives have the stomach to watch Lufthansa, Air France and others move in and take over at Heathrow, it’s just too much of an embarrassment too early in the project. The politics of providing a bailout are easier in some ways and harder in others. We’re a national disgrace on the one hand but we are (were) highly profitable unlike virgin and while we are owned by a Spanish company, we’re not owned by a billionaire tax exile. Fairly good odds that the taxpayers get their money back eventually too.

Personally I think IAG makes for a fairly enticing medium to long term investment opportunity. Profitability was high before Covid, anyone sensible knows that the demand will return and resume its previous expansion over coming years but we will have slashed the cost base in the meantime. Some fairly chunky returns to be had somewhere down the line potentially. The only question I have as a private investor in the meantime is, how much am I going to be diluted?

The current drastic restructuring of the business has all been done with one eye on these realities. Who do you think the shiny brochures about a different future are designed for? It’s not us! When they eventually go cap in hand to shareholders / HMG they will be able to say, “look, we sacked as many as we reasonably could, we retired the old planes, we gave everyone pay cuts, rewrote contracts, we even closed the headquarters down and sold the artwork for gods sake!”
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Old 29th Jul 2020, 19:13
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Originally Posted by Northern Monkey View Post
Not to mention the practicalities of being an island trading nation with no connections to the outside world.
You forgot shipping.
Maritime presence helped create the world’s largest empire.

And it still goes on: have you seen the size of some of these ports, especially in China?!

But I agree: maybe a rights issue, Qatar join in to lower their average price (they say they are in for the long-term), maybe the UK govt too if they spy a profit for the taxpayer.

IAG Cargo appears to be doing well, increasing their prices during Covid, and their LHR facility is as big as T5!
With a monopoly of slots at LHR, I wouldn’t write them off just yet.
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