Iberia to Lose 4500 jobs - 25 airframes

[Wirbelsturm]

How about starting by rewarding ALL staff with share options to ease the pain?

It was offered to BASSA as well you numpty, BASSA turned it down.

The BALPA negotiated (good word eh?) scheme starts this year, thus, if the strict triggers are achieved, there will be no share payout until 2014.

Nice to have a good team negotiating for your work group isn't it, they achieve positive things, not just getting back what was taken off them during their tantrums.

[Watersidewonker]

[It was offered to BASSA as well you numpty, BASSA turned it down. [/QUOTE]
Before the goal posts were moved so far that BASSA were put in a position where they couldn't negotiate. BASSA never 'turned it down'. Please stick to the correct facts Wirby, not ones you were fed.

[Wirbelsturm]

Wonker,

The 'goalposts' as you call them were changes required BECAUSE you failed to come up with effective cost savings and CONSTANTLY failed to meet deadlines due to incompetence or incalcitrance, you decide which.

BASSA had their hands held throughout the negotiations, BA bent over backwards to try and accommodate BASSA, all to no avail.

I didn't need to be 'fed' the information, I followed it all from both sides at the time and have the ability to make up my own mind as to what occurred. Unlike the membership of BASSA who received the official communications that the ONLY communications that should be read were BASSA comms and everything else was lies and fabrication.

The FACT is that BASSA WERE offered a share deal. They turned it down. Probably too busy trying to get ST back.

[Watersidewonker]

Wirby, we can go round forever. Time will eventually tell exactly what went on behind the scenes and intentions of all parties. The big court case (ECHR) is brewing, let's wait for the verdict and analysis of the events leading up to those dark days.
Anyway blue sky's ahead - what you going to spend your bonus on? New car?

[cldrvr]

Watch tomorrow for a profit of 270 mill, exactly the same superavit Ib had
before the merger.

Ooops, you are slightly out there, make that a total operating LOSS at IB of 896MN, yes you are reading that right, -896Mn. IB traffic down by 3.1% and non-fuel unit cost up by 4.2%.

IAG as a whole had to take a writedown of 202Mn because of IB restructuring cost and 343Mn in intangible asset write-downs because of IB.

Compare that with a capacity growth at BA of 5.4%, passenger revenue increase of 8.9% and non-fuel unit costs being flat for the year. And of course a PROFIT of 295Mn for 2012

Well done BA, IB could learn a lesson from you.

IF it wasn't for IB, IAG would have had a measly net loss of 23Mn, thanks to IB it is now 885Mn (after tax)

[cldrvr]

We also have an update on the cash at IB, it now stands at 808Mn, so you guys can just about have your 4 planned strikes and continue to lose 2Mn a day and you should just about make it till the summer.

[cldrvr]

One other titbit of info one can read in the consolidated statements is that once more BA is purchasing its aircraft while IB has to resort to leasing them,

BA is healthy, growing, expanding and is on course to remain a great airline for decades to come.

[cldrvr]

Let me quote one more item here and then I will let the slagging match here unfold once more.

Unions were given the opportunity to negotiate, they refused so IB had no choice but to revert to its options as given to it by the Spanish government under Spanish law, this has nothing to do with the Brits or BA.

Gladly IAG is very clear in who is responsible for the restructuring at IB:

The Transformation Plan requires permanent structural change in the Iberia business to enable it to return to profitability and growth. The plan is being executed within Iberia’s own financial resources. Iberia failed to reach agreement with the unions before a deadline of January 31, 2013 and has therefore commenced the imposition of a 15 per cent capacity reduction, pay cuts and productivity improvements under new Spanish labour laws.

There is a risk of Iberia management and unions not achieving the required changes now and, as a result of continued cash burn, being unable to fund the required changes in future years.

[Wirbelsturm]

Careful Cldrvr!

You're posting facts, not heresay, that doesn't go down well on this thread.

Please stick to the correct facts

Now we've cleared up what the facts were can you take your own advice?

The big court case (ECHR) is brewing

Yawn. Still got the champers on ice?

[Wirbelsturm]

what you going to spend your bonus on? New car?

Yep, I was thinking along the lines of the new McClaren P1, that should leave me with enough to get a first class world cruise with a bit left over for that Caribbean island I've had my eye on.

[cldrvr]

I posted a few posts with facts and figures, but let's keep it simple here for us pilots and have a look at the segmented profit/loss, that is the breakdown of each half, British airways and Iberia.


BA, profit 2012 295Mn.
IB, loss 2012 896MN.



Oops

[cldrvr]

I don't like to quote my own post, it is a bit I told you so, however I warned a few days ago about the breach of covenants at IB. A company like IB is usually forced to the brink by its own covenants, it happens every day with countless companies, they may have some cash left but they are forced into administration by its covenants with lessors, landlords or debt holders.

I posted this a few days ago:

Going by the cash on hand at IB and the next 3 confirmed strikes, you guys
may well breach your covenants in the next month, you just wait what will happen when the creditors call in the loans.

If you read the fineprint, IB had breached its covenants with 8 lending institutions in 2012, a lot earlier than I expected. 2 of the 8 have already waived the breach, the remaining 6 will hopefully waive the same by March 2013. However a payment in full of 239Mn is due this year caused by the breach. The problems at IB are far from over and are growing by the day.

I also posted quite a few pages ago that IB does not own its own airframes, unlike BA and there will be lots more covenants called in if IB does not improve rapidly, they may have 800Mn now, but once they breach 2-3 more covenants that 800Mn won't last long.

[Omnipresent]

And without IAG behind Iberia, the creditors would not have waived the covenant breaches.

[cldrvr]

We can't make assumptions here, we weren't privy to the negotiations of the covenant breack, but it is safe to say that under normal circumstances a breach of covenants would see an onslaught of bondholders calling in their debt, they would fall over themselves trying to get paid and the early bird catches the worm.

This may well be a case of IAG assuring the debtholders that restructuring was taking place and things would improve, the March deadline for the remaining 6 finance institutions may well coincide with some kind of undertaking on IB's part to make some inroads with the employees by that time.

[Dave Clarke Fife]

The latest financial figures make for sobering reading.......



British Airways owner reports £862m loss amid battle to revive ailing Spanish flagship Iberia | Mail Online

[Count Niemantznarr]

Thank you CLD for highlighting IAG's recent breaches of covenants.

More information here

IAG breaches financial covenants on A340 leases - Airfinance Journal - March 2013

Another little problem for IAG is what to do about Bankia's 12% holding in IAG, which it has been ordered to dispose of by the Spanish government. Walsh was not able to persuade QATAR to pick up these shares, and other prospective purchasers look a little thin on the ground.

[Count Niemantznarr]

Wonker

The 'goalposts' as you call them were changes required BECAUSE you failed to come up with effective cost savings and CONSTANTLY failed to meet deadlines due to incompetence or incalcitrance, you decide which.

BASSA had their hands held throughout the negotiations, BA bent over backwards to try and accommodate BASSA, all to no avail

The facts are Wurvlsturn that you do not have a clue what went on in negotiations between the company and BASSA. Iberia staff are very clear how their own negotiations have compared to the situation that BASSA was in.

You haughtily comment on airlines like SAS and Alitalia regarding wage costs, but these airlines were not brought to their knees due to cabin crew pay. Your simplistic analysis does not bear scrutiny when you witness the profits BA have just announced, even though their Flight Crew are among the highest paid in the world.

Walsh never intended to turn on his pilots, so your so called skilled negotiations were a foregone conclusion. The fact is that your fate has been put on the back burner, and as one pilot has already stated on this thread, there is no stomach in the BA flight crew community for any sort of strike action. You are dead meat when Willie turns his attention to dealing with the huge endemic costs and waste of our Bidline, and the burgeoning liability of Flight Crew pay to the bottom line.

[bex88]

wow, actually the above post probably does have some truths in it. To be fair we all know there are going to be downward pressures on T&C's but BA pilots are certainly not the best paid in the world. New joiners don't get the terms that once were. Bid line, well I can see the pros to it but it must cost a lot to administer and generate inefficient flight coverage. I am certain this along with the ability to swap fleets every 5 years will be one of the first cost cutting measures. Its has been acknowledged that some of our cabin crews are on a minimal basic salary but could it also be acknowledged that salaries for our new and some existing pilots have also already been reduced?

Arriving at BCN you should have seen the number of Veuling aircraft parked up, and again the same at BHD with flybe. Times are tough and infighting will only end up in the same fate.

[Juan Tugoh]

The facts are Wurvlsturn that you do not have a clue what went on in negotiations between the company and BASSA.

Walsh never intended to turn on his pilots

Consider the two quotes; the first claims that Wirbelsturm was not at the negotiations so did not have a clue what went on there, the second claims that the Count has knowledge of WW's intentions. Interesting as the Count was not in WW's head, yet claims to have knowledge of his intentions.

That is some breathtaking hypocrisy in one small post, Orwellian doublethink at its finest.

[Watersidewonker]

Count, be careful - we don't want Wirby going into a right wing tailspin this morning. How dare a presumed tea and coffee operative dare to venture in to aviation finance - in wirbyworld people like you should do what he/she told me to do, "just serve the coffee".
Next thing there'll be accusations of your photography teacher at Southampton penning your posts!