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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 6th Jun 2020, 09:20
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From IAG memo.
ReAcquistion of Air Europa.
‘Transfers IAGs Madrid hub into a true rival to Europe’s four largest hubs,Amsterdam,Frankfurt London Heathrow
and Paris Charles De Gaulle.
Reestablishes IAG as a leader in the highly attractive Europe to Latin America and Caribbean market.’

Spanish Practice erosion of British Airways
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Old 6th Jun 2020, 11:24
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Originally Posted by Phantom4
From IAG memo.
ReAcquistion of Air Europa.
‘Transfers IAGs Madrid hub into a true rival to Europe’s four largest hubs,Amsterdam,Frankfurt London Heathrow
and Paris Charles De Gaulle.
Reestablishes IAG as a leader in the highly attractive Europe to Latin America and Caribbean market.’

Spanish Practice erosion of British Airways

Yet Spanish law offers greater protection (than UK) for employees’ rights?
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Old 6th Jun 2020, 11:37
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Originally Posted by The Foss
where has it been announced that the plan is to pull out of Gatwick? The cost base there is already relatively low. And how would they use LHR crew on ‘miserly pay and conditions’? If they are LHR crew they will be on the LHR pay scales, and therefore more expensive than current BA LGW crew...
https://www.bbc.co.uk/news/business-52489013
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Old 6th Jun 2020, 11:42
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Originally Posted by Phantom4
From IAG memo.
ReAcquistion of Air Europa.
‘Transfers IAGs Madrid hub into a true rival to Europe’s four largest hubs,Amsterdam,Frankfurt London Heathrow
and Paris Charles De Gaulle.
Reestablishes IAG as a leader in the highly attractive Europe to Latin America and Caribbean market.’

Spanish Practice erosion of British Airways
So IAG, which is the Spanish owner of the UK national carrier BA, is investing money to make MAD a true rival of LHR (which means IB, Vueling etc vs BA). It is all pretty clear.
Is the UK government going to allow this?
Does the UK Gov want to protect the UK economy and UK jobs?

I genuinely believe the UK Gov needs to move quickly to avoid permanent damage to the flag carrier and therefore to the UK Economy.
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Old 6th Jun 2020, 12:08
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LGW closure story above is over a month old. Internal company comms indicate the LGW operation will continue.
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Old 6th Jun 2020, 12:27
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Originally Posted by bucket_and_spade
LGW closure story above is over a month old. Internal company comms indicate the LGW operation will continue.

Yes, I know but I was just answering the previous post. The threat to permenantly close LGW was one of the opening salvos in BA's carefully orchestrated press release. Frightened the bejesus out of everyone. It's a common tactic, threaten the worst then come back with a really bad offer thats not as bad but achieves the company goal.
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Old 6th Jun 2020, 13:13
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Originally Posted by 777JRM
Yet Spanish law offers greater protection (than UK) for employees’ rights?
Which might explain why unemployment in Spain is over 3 times worse than the UK - businesses will do everything to avoid recruiting people who they may not be able to get rid of easily in a downturn.
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Old 6th Jun 2020, 13:16
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Originally Posted by ILS27LEFT
So IAG, which is the Spanish owner of the UK national carrier BA, is investing money to make MAD a true rival of LHR (which means IB, Vueling etc vs BA). It is all pretty clear.
Is the UK government going to allow this?

WW covered this in his interview on Sky. It is not IAG who are buying Air Europa, the purchase is being funded by Iberia out of their budget who are an independent operating entity within the Group and whose Management make their own commercial decisions..
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Old 6th Jun 2020, 13:36
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Originally Posted by Jet II
WW covered this in his interview on Sky. It is not IAG who are buying Air Europa, the purchase is being funded by Iberia out of their budget who are an independent operating entity within the Group and whose Management make their own commercial decisions..
When dividends are paid or shares are bought back, where does the money come from? How are individual OpCo cash reserves contributed? Whilst they may say an acquisition by another OpCo has no effect on the others, I do not believe it for one moment. The Spanish companies have long hated the contributions BA makes towards its NAPS pension deficit for instance, and I am sure that was a big driver behind its closure a few years back.
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Old 6th Jun 2020, 13:44
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Originally Posted by Jet II
WW covered this in his interview on Sky. It is not IAG who are buying Air Europa, the purchase is being funded by Iberia out of their budget who are an independent operating entity within the Group and whose Management make their own commercial decisions..
So, why is WW involved? Surely this BA redundancy plan is just management making their own commercial decisions. Sorry, I don't buy it. If IAG are not involved with this Iberia purchase, a major financial transaction by any measure, then what is the point of them being there. Lets face it, WW is steering this entire process.
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Old 6th Jun 2020, 14:24
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Typical smoke and mirrors.
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Old 6th Jun 2020, 14:35
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Originally Posted by TURIN
So, why is WW involved? Surely this BA redundancy plan is just management making their own commercial decisions. Sorry, I don't buy it. If IAG are not involved with this Iberia purchase, a major financial transaction by any measure, then what is the point of them being there. Lets face it, WW is steering this entire process.
Watch the full interview - it answers all your questions.


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Old 6th Jun 2020, 14:53
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Is he seriously trying to suggest the IAG board are having no say in the purchase of Air Europa?... it's total bollocks.
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Old 6th Jun 2020, 15:09
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When a dividend needs to be paid, but Iberia has no cash to contribute because they’ve spent it all on the acquisition, where does the money then come from?
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Old 6th Jun 2020, 15:15
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Well dividends are (should be ) a result of the trading period, so the next dividend is never guaranteed. On that basis, the dividend will fall out smaller unless any ( if available ) reserves are used.
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Old 6th Jun 2020, 16:24
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A second, new S188 for BA pilots

The BA pilots company council has just informed it's members that BA issued a new S188 letter on Wednesday evening (3rd June) stating that 1080 pilot jobs are now under threat (an increase). Additionally, BA has also now included the 'fire and rehire' clause it has been throwing at other areas of BA, i.e. if agreement is not reached between BALPA and BA, then the employment of all pilots will be terminated, and new contracts, with new terms and conditions, will be offered. How generous of them. Pretty obvious what the Ts & Cs, and pay will be like.
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Old 6th Jun 2020, 16:36
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How many on the original S188?
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Old 6th Jun 2020, 17:04
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This fire and rehire idea. Is it actually legal? It seems very extreme even for the UK as it makes the unions completely redundant. Surely there must be a way to stop something like this happening?
Best of luck to all involved.
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Old 6th Jun 2020, 17:26
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Red face

Originally Posted by Oh gaim
How many on the original S188?
The original S188 was 955 headcount reduction from volume adjustment, plus 175 headcount reduction from efficency changes = 1130.

It is now 1080 plus 175 = 1255.
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Old 6th Jun 2020, 17:27
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Believe me, I take no pleasure in saying this, but I told you so.
I'm utterly astonished that BA have reward BALPA by increasing the numbers and threatening compulsory redundancy.
UNITE and GMB have nothing to lose now.

I understand that BA are coming to an understanding with regard to an enhanced VR package though. At least that's something.

Good luck all.
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