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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, 03:26
  #741 (permalink)  
 
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Possible cessation of BA op at LGW!.

I believe in a leaked BA LGW 1 st May memo it was stated 'there is no certainty as to when or if these services can or will return'.

BA have 74 routes accounting for 17% of LGW capacity being about 20% of all operatrions at Gatwick. There is direct competition on 75% of these destinations. With exception of check-in staff the ground handling/dispatch was outsourced some years ago. I doubt that operating a wing of BA there is relatively low cost.

May be just a bluffing?
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Old 6th Jun 2020, 07:47
  #742 (permalink)  
 
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Originally Posted by The Foss View Post
where has it been announced that the plan is to pull out of Gatwick?
From yesterday’s interview with Willie Walsh on sky news:

What about this campaign from Unite for you to lose slots at Heathrow? If you lose 25% of staff will you need as many slots in the future?

“It is a challenge I will be honest with you, but don’t forget this is across the British Airways group, so British Airways has a significant operation at London City, at Gatwick and at other airports so it’s not just about Heathrow. But clearly we would like to for the future, secure all of the slots that we currently have at Heathrow. That may not be possible. It may require us to leave some of the slots that we don’t intend to operate, but we would like to see, given that slots at Heathrow tend to be at a premium, we’d like to see if we can retain all of those. If we can’t because the business can’t afford to do so that will be a regrettable decision, but it just puts into context the crisis we are facing today.”

So he did not directly say he would pull out of Gatwick, but he appears to suggest he would rather lose Gatwick and London City operations before losing a single Heathrow slot.
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Old 6th Jun 2020, 08:38
  #743 (permalink)  
 
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Originally Posted by HZ123 View Post
Possible cessation of BA op at LGW!.

I believe in a leaked BA LGW 1 st May memo it was stated 'there is no certainty as to when or if these services can or will return'.

BA have 74 routes accounting for 17% of LGW capacity being about 20% of all operatrions at Gatwick. There is direct competition on 75% of these destinations. With exception of check-in staff the ground handling/dispatch was outsourced some years ago. I doubt that operating a wing of BA there is relatively low cost.

May be just a bluffing?
But they (or Virgin for that matter) do not want to give up the slots - they only want to lease them out. Understandably, the likes of Wizz want some certainty in their operations rather than be kicked out when the market picks up.

Watching Wizz in the background to all of the other airlines floundering is quite something... it's almost as if they're in a parallel universe to everyone else.

I don't know how, but there needs to be a better mechanism of allocating slots - all the current grandfathering system does is protect the status quo and impedes competition.
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Old 6th Jun 2020, 08:55
  #744 (permalink)  
 
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With regards redundancy, you cannot make a position redundant only to employ again in the exact same job role, the role has to have been diminished and a new different role created. For example, if you have a business with a van driver/logistics only position, you can make that position redundant but you could re-employ them (on different terms as they can re-apply) or someone else with a different role, such as warehouse and logistics.

So how you can make a Captain redundant and re-employ them on reduced terms I'm not sure as you can't them make them Captain and cabin crew, the position wouldn't allow it.
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Old 6th Jun 2020, 09:14
  #745 (permalink)  
 
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Welcome to the world of Aircraft Managers, Aircraft Assistant Managers and Aircraft Operating Engineers!
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Old 6th Jun 2020, 10:20
  #746 (permalink)  
 
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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, 12:24
  #747 (permalink)  
 
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Originally Posted by Phantom4 View Post
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, 12:37
  #748 (permalink)  
 
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Originally Posted by The Foss View Post
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, 12:42
  #749 (permalink)  
 
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Originally Posted by Phantom4 View Post
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, 13:08
  #750 (permalink)  
 
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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, 13:27
  #751 (permalink)  
 
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Originally Posted by bucket_and_spade View Post
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, 14:13
  #752 (permalink)  
 
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Originally Posted by 777JRM View Post
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, 14:16
  #753 (permalink)  
 
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Originally Posted by ILS27LEFT View Post
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, 14:36
  #754 (permalink)  
 
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Originally Posted by Jet II View Post
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, 14:44
  #755 (permalink)  
 
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Originally Posted by Jet II View Post
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, 15:24
  #756 (permalink)  
 
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Typical smoke and mirrors.
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Old 6th Jun 2020, 15:35
  #757 (permalink)  
 
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Originally Posted by TURIN View Post
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, 15:53
  #758 (permalink)  
 
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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, 16:09
  #759 (permalink)  
 
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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, 16:15
  #760 (permalink)  
 
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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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