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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 1st Aug 2020, 11:38
  #1461 (permalink)  
 
Join Date: May 2011
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Was it you that told me to deliver hard facts?

The €8.1B includes the rights issue. That is hopeful by itself. Bridging loan, hopeful, at best. Buy another Airline, don't make me laugh.
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Old 1st Aug 2020, 11:47
  #1462 (permalink)  
 
Join Date: Dec 2003
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Originally Posted by Dannyboy39 View Post
You really expect the Tory-backed Times to speak highly of unions - Unite in particular?
When did you last read the Times, not recently I'm sure.
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Old 1st Aug 2020, 11:53
  #1463 (permalink)  
 
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kungfu panda

The rights issue hasn’t happened yet.

Here’s a hard fact (they are not allowed to lie or spin to the City):

"IAG continues to take action to strengthen its balance sheet and liquidity position including more than halving its operating cash costs and significantly reducing its capital spending. At the end of June liquidity stood at €8.1 billion.Based on our current capacity planning scenario, we would reach breakeven in terms of Net cash flows from operating activities during quarter 4 2020.”
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Old 1st Aug 2020, 11:59
  #1464 (permalink)  
 
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I have had it with this thread as I suspect most pilots have. The Armageddon views of several current posters is truly depressing. I cannot imagine why current crew would want to impart such negativity amongst their colleagues unless they either had an ulterior motive or are just plain unpleasant.
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Old 1st Aug 2020, 12:00
  #1465 (permalink)  
 
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777JRM

Yes. At the End of June. It's now August and everything looks a whole lot worse than it did in June. That's why the share price is languishing.
You're talking about a rights issue that raises nearly the total market Capitalisation of IAG. That is unrealistic. If Qatar put in that kind of money, it's shareholding would be upwards of 70%.
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Old 1st Aug 2020, 12:23
  #1466 (permalink)  
 
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BA will survive maybe as a result of the combined effort of Qatar and the British government. It will not survive in it's own right as a going concern. The Qatar money maybe a big issue to the Americans.
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Old 1st Aug 2020, 12:27
  #1467 (permalink)  
 
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kungfu panda

Qatar may be legally limited to how much of IAG they can own.

This implies that other institutions will be able to take part in the rights issue.
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Old 1st Aug 2020, 12:32
  #1468 (permalink)  
 
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I believe the rights issue is because the Board realise that itís the cheapest way to gain some more time.
As WW has repeatedly stated the company has barely 20% revenue at the moment, with L/H to the states almost zero.
They have a willing buyer in Qatar so the issue should be funded. Someone has mentioned why Qatar? I believe itís because they too have problems with the Saudi over flight ban, they have plenty of cash and are always looking to diversify. Look at their huge investments in the City. So this is not a normal transaction, just pragmatic for both parties.
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Old 1st Aug 2020, 12:34
  #1469 (permalink)  
 
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777JRM

Yes absolutely. Qatar will put in €800m. IAG want to raise €2.7B.

But the share price is dropping fast because institutions are selling, not because of the rights issue. If the rights issue actually went ahead the shares right now are probably worth around 90p.
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Old 1st Aug 2020, 15:50
  #1470 (permalink)  
 
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I'm an outsider looking in. But let me get this straight. Ba pilots have accepted a paycut, meanwhile Ba owner Aig is still proceeding with the acquisition of Air Europa. It looks like you guys have been hustled. And I thought that the french were the surrender artist's.

Last edited by lear999wa; 1st Aug 2020 at 16:20.
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Old 1st Aug 2020, 17:03
  #1471 (permalink)  
 
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Yes but whatever the rights and wrongs of the deal, mergers and acquisitions are normally made via lease, leverage or share offers whereas salary comes out of revenue....now read the previous posts about revenue.
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Old 1st Aug 2020, 21:30
  #1472 (permalink)  
 
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Perhaps if BA had approached this whole afair in a more professional manner we would be further towards a solution now instead of banging heads. Remember, the opening salvo to this was BA announcing 12000 plus compulsory redundancies and further redundancies for everyone else with an offer of a new contract on vastly inferior pay and T & Cs.
If, just if they had got around the table first, talked about the problem and discussed solutions in an open and honest exchange as has happened during previous crisis we could have avoided all this animosity and come out of this with a bit of pride and a spirited attitude to the future. But no, what we have is a bitter, dissalusioned workforce who will either walk away next week despising their previous employer or you will have the chosen ones, equally bitter and angry but forced into accepting their lot as their is no alternative.

Remember it wasn't so long ago that BA was sending everyone pin badges and invites to '100 year' celebrations because "our people are our biggest asset". What a crock!

This could have been handled so much better. Only one person is to blame.
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Old 1st Aug 2020, 22:44
  #1473 (permalink)  
 
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Maybe a few others are complicit too - those gangsters known as ‘Management Committee’.

Agree with the above: the actions of a bully.
BA seems to like picking fights: pilots, cabin crew, engineers, ground crew, government, even its own customers, have been victims.
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Old 2nd Aug 2020, 04:07
  #1474 (permalink)  
 
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The current version of BA is in it's death throws. The only way to have saved it would have been to furlough 80% of staff indefinitely and quickly, without any discussion. Which of course would be legal in the U.S. but is not in the UK. If they had done that then they would already be calling people back from furlough.
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Old 2nd Aug 2020, 06:54
  #1475 (permalink)  
 
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To paraphrase a former colleague (I believe he's one of those who has taken VR): the management at the company has spent years terrorising it's staff with threats of job cuts - the "T "word was definitely used.

It's been the management style for a long long time and it has resulted in Unions whose first response to claims of a crisis is the company is crying wolf..and that in turn has resulted in the banging of heads that TURIN mentioned.

The whole management/union dynamic has been one of perpetual confrontation/low level conflict, even when the billion plus euro/STG profits were briefly rolling in.
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Old 2nd Aug 2020, 08:38
  #1476 (permalink)  
 
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Actually I think TWO are to blame, W and C.
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Old 2nd Aug 2020, 09:17
  #1477 (permalink)  
 
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Wiggy

Correct.
When the profits rolled in: sorry folks, nothing for you, but AC gets a 61% raise.
When the economy tanks: sorry folks, YOU have to suffer, because WE spent the money on share buybacks, special dividends, fines for incompetence, and fuel-hedging.
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Old 2nd Aug 2020, 09:51
  #1478 (permalink)  
 
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Be extremely aware when Qatar wants to increase it share in IAG. Expect maintenance to move to Doha, expect all kinds of nasty things to occur. At the end of the day they only look at their own interests. And then you have the geopolitical issues between Qatar and the rest of the gulf on top of it.
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Old 2nd Aug 2020, 10:27
  #1479 (permalink)  
 
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It’s a bit late for London property then.
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Old 2nd Aug 2020, 11:47
  #1480 (permalink)  
 
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You're still thinking about Qatar as a white knight. You need to read other people's experiences with these guys. The culture of the company will be toxic like you've never seen before. And forget BALPA, they certainly won't talk to those guys.
They want BA for the North Atlantic routes. The Americans don't want more Qatar flights.
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