IAG: BA restructuring may cost 12,000 jobs
Join Date: Jan 2002
Location: West Country
Posts: 1,266
Plastic787
I'm not sure its that simple. Given the ownership structure of BA with it being simply part of a Spanish based Company then any nationalization may only be possible with the agreement of IAG - they may want a significant payment for the brand name even if you can have the assets for free. In that scenario and with the current demands on the Treasury will Rishi see any value in spending money to buy an airline that will be a drain in the exchequer for possibly years to come?. If the Government is unwilling to pay then there is probably more value for IAG in breaking up the airline and selling off the assets, slots etc.
I'm not sure its that simple. Given the ownership structure of BA with it being simply part of a Spanish based Company then any nationalization may only be possible with the agreement of IAG - they may want a significant payment for the brand name even if you can have the assets for free. In that scenario and with the current demands on the Treasury will Rishi see any value in spending money to buy an airline that will be a drain in the exchequer for possibly years to come?. If the Government is unwilling to pay then there is probably more value for IAG in breaking up the airline and selling off the assets, slots etc.
Join Date: Jan 2009
Location: california
Age: 62
Posts: 333
I don't agree with that. The UK government will likely only get involved post IAG bankruptcy. At which point it will pick up the remnants of BA at fire sale prices. BA will then be re-privatised in the future. I expect that the taxpayer will make money out of the deal in the long term. In my view though, the government will not touch the shorthaul, it's not in their interest to compete on routes that are already served by British carriers. Longhaul that's different, they'll see the need for an intercontinental flag carrier serving destinations which other British carriers do not.
Unfortunately the slots do not belong to IAG to sell off. They operate them or they lose them.
Unfortunately the slots do not belong to IAG to sell off. They operate them or they lose them.
Join Date: May 2011
Location: shenzen
Age: 40
Posts: 327
If BA is nationalised, which is very likely. As you say, the company relies on SH to feed the LH but that won't happen.Therefore you're looking at a much smaller, LH only company.
The company is saving the jobs in hope of restarting in April and therefore keeping the slots. But it's just a gamble.
The company is saving the jobs in hope of restarting in April and therefore keeping the slots. But it's just a gamble.
Join Date: Jan 2002
Location: West Country
Posts: 1,266
But if IAG are at risk of bankruptcy then then it is quite likely that they will have a fire sale of assets in the group to try and prevent their collapse. So BA and Iberia could be broken up and sold off long before any collapse of the parent company IAG. Of course in that scenario IAG would love to sell BA as a going concern to the Government - but will the Government want to buy?
Join Date: May 2000
Location: London
Posts: 382
I agree that S21 will be difficult. At least with the S20 season just gone people will have been booking for this right up to March and maybe beyond as initially a lot of people thought this would be over in a few months. So despite the massive amount of refunds airlines still had some money in the bank. How many people will be booking for S21? I would suggest a few are but it won't be many so airlines simply aren't getting any money coming in, as many rely on money in the bank for future travel to keep going.
If IAG falls how many airlines will go before it as they are one of the stronger ones?
If IAG falls how many airlines will go before it as they are one of the stronger ones?
Join Date: Jan 2006
Location: Cyprus
Age: 73
Posts: 269
Does anyone know the current share register of IAG There has just been a significant rights issue with lots of shares changing hands. It is very noticeable that IAG recently has been trading on the FTSE as one of the most traded, in some cases by a significant margin. Was this because large numbers of former shareholders chose not to take up their allotment Who actually holds a controlling interest. Is it Qatar?
Join Date: May 1999
Location: Europe
Posts: 153
Bailing out Spanish & Irish jobs
a) UK Taxpayers money
b) Bailing out Spanish & Irish jobs
The Spanish Government has committed 3 times as much.
https://www.paddleyourownkanoo.com/2...sh-government/
Staff in other airlines in the group have also suffered redundancies, accepted more onerous terms along with paycuts of 50% to 70%
More Bad News on the way......
https://uk.news.yahoo.com/ba-owner-s...?.tsrc=applewf
Join Date: Feb 2001
Location: The Winchester
Posts: 5,915
Having tried to follow this simply for academic interest I think I need somebody to provide the "CliffsNotes" on the latest plan...it almost seems to my little mind as if pilots will brought out of "furlough" to perform a rostered duty", then drop back into it again...I must be misunderstanding it..

Join Date: Jun 2020
Location: UK
Posts: 24