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-   -   IAG: BA restructuring may cost 12,000 jobs (https://www.pprune.org/terms-endearment/631988-iag-ba-restructuring-may-cost-12-000-jobs.html)

Phantom4 6th Jun 2020 09:20

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

777JRM 6th Jun 2020 11:24


Originally Posted by Phantom4 (Post 10803668)
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?

TURIN 6th Jun 2020 11:37


Originally Posted by The Foss (Post 10803283)
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

ILS27LEFT 6th Jun 2020 11:42


Originally Posted by Phantom4 (Post 10803668)
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.

bucket_and_spade 6th Jun 2020 12:08

LGW closure story above is over a month old. Internal company comms indicate the LGW operation will continue.

TURIN 6th Jun 2020 12:27


Originally Posted by bucket_and_spade (Post 10803797)
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.

Jet II 6th Jun 2020 13:13


Originally Posted by 777JRM (Post 10803757)
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.

Jet II 6th Jun 2020 13:16


Originally Posted by ILS27LEFT (Post 10803773)
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..

GS-Alpha 6th Jun 2020 13:36


Originally Posted by Jet II (Post 10803862)
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.

TURIN 6th Jun 2020 13:44


Originally Posted by Jet II (Post 10803862)
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.

esscee 6th Jun 2020 14:24

Typical smoke and mirrors.

Jet II 6th Jun 2020 14:35


Originally Posted by TURIN (Post 10803895)
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.



Dannyboy39 6th Jun 2020 14:53

Is he seriously trying to suggest the IAG board are having no say in the purchase of Air Europa?... it's total bollocks.

GS-Alpha 6th Jun 2020 15:09

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?

Tartiflette Fan 6th Jun 2020 15:15

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.

Abbey Road 6th Jun 2020 16:24

A second, new S188 for BA pilots
 
The BA pilots company council has just informed it's members that BA issued a new S188 letter on Wednesday evening (3rd June) stating that 1080 pilot jobs are now under threat (an increase). Additionally, BA has also now included the 'fire and rehire' clause it has been throwing at other areas of BA, i.e. if agreement is not reached between BALPA and BA, then the employment of all pilots will be terminated, and new contracts, with new terms and conditions, will be offered. How generous of them. Pretty obvious what the Ts & Cs, and pay will be like.

Oh gaim 6th Jun 2020 16:36

How many on the original S188?

aviationvictim 6th Jun 2020 17:04

This fire and rehire idea. Is it actually legal? It seems very extreme even for the UK as it makes the unions completely redundant. Surely there must be a way to stop something like this happening?
Best of luck to all involved.

Abbey Road 6th Jun 2020 17:26


Originally Posted by Oh gaim (Post 10804044)
How many on the original S188?

The original S188 was 955 headcount reduction from volume adjustment, plus 175 headcount reduction from efficency changes = 1130.

It is now 1080 plus 175 = 1255.

TURIN 6th Jun 2020 17:27

Believe me, I take no pleasure in saying this, but I told you so.
I'm utterly astonished that BA have reward BALPA by increasing the numbers and threatening compulsory redundancy.
UNITE and GMB have nothing to lose now.

I understand that BA are coming to an understanding with regard to an enhanced VR package though. At least that's something.

Good luck all.


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