Yes terrible numbers, hence the rights issue announced by WW today.
When I last looked the share price at 187p puts the company outside the FTSE 100 at a future valuation
Hence BA will find future borrowings will be harder ie not investment grade
Qatar who currently have a 25% share have said they will take up their share, with defaults I can see their share increasing up to 49%, the max allowed
Assuming the January to March period they broke even that means the true cash burn is circa €600 pm so this extra cash buys them 4 months
At this point the airline will be Nationalised but maybe with a twist. Qatar will buy the other half cheaply and come to an arrangement with the U.K. government on ownership

If BA were to be spun out of IAG and nationalised, why would American Express invest £750m in a multi-year deal with IAG Loyalty?

Amongst the highlights for the six months announcement was this:

“Based on our current capacity planning scenario, IAG would reach breakeven in terms of Net cash flows from operating activities during quarter 4 2020“

Amongst all this madness, anybody know how many managers are to be "cut". For that matter whether they will have their pay cut or "fire and re-hire" but at a lower pay level?

I risk appearing picky but even so the point should be made that ATM "the Unions" doesn't include the pilots' association, BALPA.

We are awaiting the ballot result on acceptance or not of measures applicable to the pilot group.

I am sure there is going to be a absolute blood bath. Closing waterside, get your personal items before the 7th of August. Does anyone really think waterside is coming back? Don’t make this a us and them.

ESSCEE: Indeed the letters of notice have been or are en route to Cabin Crew and the rest of the BA ground staff. A friend (opps control) of mine should they decide to continue in employ of BA will lose £20000 from their salary. Another CC a more junior staffer will lose £10000. As sad as the complete situation is, it is a mere reflection of what will happen to many employees world wide in all types of employment.

Those quoting returning to profit by whatever date is surely a best / benevolent estimation or an assumption. I fail to to understand where passengers are going to come from when so many will be unemployed or on reduced incomes. I hope there is a return to profit but it can only be a greatly reduced income!

A successful rights issue depends on investors believing that demand will come back prior to the company running out of Cash. That looks increasingly unlikely.
The British government will nationalise the company when it's worth nothing I.e. the shareholders will not get anything. OK OR (ii) the creditors will take control as in the Norwegian case OR (iii) as somebody said, there'll be a deal between Qatar and the UK government to take control.

Qatar taking control is extremely unlikely because Qatar Airways is wholly owned by the Qatar government. I would imagine that the Qatari government wholly owning BA would be politically unpalatable. Air Italy were prevented from extending services to the United States because of the Qatari money involved. That lead directly to the closure of Air Italy. Qatar has received criticism over human rights, the financial backing of terrorist organisations and it's relationship with Iran.

"................It is not even the beginning of the end. But it is, perhaps, the end of the beginning."Winston Churchill

The harsh reality is that the steps taken thus far (across all IAG OpCos) have failed to stem the haemorrhaging of cash.
If revenues remain at their current level, 50% salary will be unsustainable, let alone 80%.

BA retiring it's only A318 and so the LCY-SNN-JFK link is lost.

Some optimism:

“...an additional 1,875 cargo flights operated in quarter 2. Cargo revenue for quarter 2 was a record €369 million, up from €281 million in quarter 2 2019”

Yes quite right to point that out so thank you, I should have been more specific. I understand BALPA have actually been doing something productive rather than damaging the brand on a public and social platform. A much more professional approach.

Problem now is we are still awaiting the result and there are disturbing rumours starting to circulate that BA moved the goalposts in the last few days/hours.......

Would you kindly share this rumour Wiggy?

BALPA should at least acknowledge a yes or no decision ballot outcome?

All the best to all involved, it truly is terrible.

wiggy


I think it’s a similar story with office staff; things may be changing from what was expected. The pessimistic amongst us may think that Unite (and the other unions) approach is going to lead to further job losses elsewhere in the business. The longer this carries on and the longer BA are unable to make any feasible savings in reducing head counts the more ruthless BA will become. As I say that’s the pessimistic view and not one that will be shared by everyone.

I can see them auctioning off things from the museum next.

CaptainSox


It is possible that the financial results are being used as leverage to change the deal that was voted on?
Shameful.

What next? An even worse ‘deal’ being imposed?

There is no point showing our hand by sharing the result if BA have backed out. If they have changed things then the vote is pointless anyway.

Not much I can add, other than the membership expected to hear the (electronic) ballot result much earlier today.

Nothing has come out from BALPA.

Current rumour is, as cloud1 has said, is that the situation is changing faster than BA expected and they (BA) now want to change the details of the agreement post ballot closure.....

Woah...let me get this straight. You negotiate a deal, it’s accepted pending voting approval. Voting occurs to presumably accept said deal then other side says “wait, we change our mind”. Is that it in a nutshell?

That's the current popular rumour..

The electronic ballot closed 1600 BST last night (Thursday).

Late last night there was a cryptic comment from the Company Council (CC) about a delay in announcing the result because they were "awaiting final agreement documents from BA management"....read into that what you will but a fair few members quiet understandably went :confused: :confused:

Of course it could all be innocuous, and the 24 hour plus delay in announcing the results could be down to IT probs or similar but in the absence AFAIK of any statement from the CC, the mention of awaiting documents last night, and the Q2 figures this AM it's not surprising that rumours about a goal post move or worse still an attempt at a bait-and-switch are doing the rounds.