IAG: BA restructuring may cost 12,000 jobs

[Jet II]

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.

[polax52]

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.

[3Greens]

Over 50% of BA traffic is connecting traffic from short haul to Longhaul. BA operate a hub and spoke airline at LHR. LH and SH can really only co exist or not at all.

[kungfu panda]

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.

[bringbackthe80s]

Either way, not looking good at all.

[Jet II]

Originally Posted by polax52

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.

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?

[Bombardierguy]

I'm sorry, but bailing out Spanish and Irish jobs in IAG is no business of the U.K. tax payer. This would represent a blatant misuse of public funds.

[747-436]

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?

[Walnut]

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?

[Twiglet1]

The unmentionable aircraft in UAE has just had a second slashing of the workforce. Its going to be a rough ride

[Plastic787]

To put that in perspective Etihad were struggling with an over saturated market even prior to Covid. But yeah things are bad.

[Maxfli]

Bailing out Spanish & Irish jobs

Originally Posted by Bombardierguy

I'm sorry, but bailing out Spanish and Irish jobs in IAG is no business of the U.K. tax payer. This would represent a blatant misuse of public funds.

I am intrigued as to how the UK Governments decision to extend IAG a guarantee for a £300m loan constitutes;
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

[PC767]

With the news that BA flight crew are now being furloughed, where does this leave pilots in the holding pool? Will the pool still be financed by furloughed pilots on 80% pay?

[ollie135]

Surely they'll be furloughed too, they are still employees of the company after all?

[wiggy]

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..

[bex88]

The extended furlough is different in you can be furloughed part of the time. But yes Wiggy you are correct. Days off and leave are still that. Rostered work days with no work available are furlough.

[wiggy]

Thanks bex, after posting I belatedly stumbled across some "FAQs" relevant to this and the concept of things like "flexi-furlough" are slightly clearer now.

Good Luck with all this.

[White Van Driver]

Originally Posted by PC767

With the news that BA flight crew are now being furloughed, where does this leave pilots in the holding pool? Will the pool still be financed by furloughed pilots on 80% pay?

Yes. The CRS pool pilots are still paid for by all the working BA pilots, furloughed or not.