BA Chief executive warning to staff.

[Animagus]

I’m worried for my brother. He’s BA cabin crew on long haul out of Heathrow. As a pp said, the basic wage is dreadful and the crew have mortgages, bills etc just like the rest of us. I’d like to think the company is big enough with reserves to see it through the worst, but you just don’t know.
Very stressful time for all involved.

[SimonB]

Good luck to the cabin crew. I think mixed fleet will be okay in the long run but short term it’s a bit of a concern.

[Gill635]

Trust me when I say it’s horrendous, and EVERYONE is worried.

They can trim back any department to the bare bones, literally no one is safe right now

[craigdaniels@b]

My best friend lost her job with Thomas cook when they folded, she had worked for them for 18 years. She was then lucky enough to get a new job with BA as long haul cabin crew and was due to start her training course in May. She has now been told all courses from April have been cancelled and contracts withdrawn. She’s currently in a holding pool and they’ll contact her should they start the courses up again. Such bad luck and feel so sorry for all concerned.

[Gill635]

Originally Posted by craigdaniels@b

My best friend lost her job with Thomas cook when they folded, she had worked for them for 18 years. She was then lucky enough to get a new job with BA as long haul cabin crew and was due to start her training course in May. She has now been told all courses from April have been cancelled and contracts withdrawn. She’s currently in a holding pool and they’ll contact her should they start the courses up again. Such bad luck and feel so sorry for all concerned.

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Gosh how awful!

[Tinkerbell]

Originally Posted by craigdaniels@b

My best friend lost her job with Thomas cook when they folded, she had worked for them for 18 years. She was then lucky enough to get a new job with BA as long haul cabin crew and was due to start her training course in May. She has now been told all courses from April have been cancelled and contracts withdrawn. She’s currently in a holding pool and they’ll contact her should they start the courses up again. Such bad luck and feel so sorry for all concerned.

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Puts not getting a few loo rolls into perspective !

[Guest]

Originally Posted by bighal

BA and IAG are in good enoufh state to survive be it with some hob losses but they won't fold. It will pass. Some flights from China have restarted.

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Do you think so? I looked at their accounts (and also Disney’s) the other day, prompted by another dibbers questions and I didn’t think the IAG balance sheet looked particularly strong. I didn’t spend a lot of time on it and certainly may have missed something. But I have just done a couple of back of fag packet calculations of the basic liquidity and solvency ratios and whilst they are not as bad as I thought they might be, they are not great and does not leave them in a position of strength. I think they will need help tbh.

Originally Posted by Claudette

It is indeed a massive amount of profits. I have worked for financial services giants for 28 years and none of them have ever delivered annual profits of that magnitude.

So I have taken a similar cursory look at IAG latest annual financial results. IAG is the parent company of British Airways, Iberia, Air Lingus and I think a few others as well.

The revenue is much smaller than Disney revenue, about 35% of Disney per year. It also primarily is from one source, passenger numbers, whereas Disney has multiple revenue streams such as revenue from films etc. The profits of IAG have been around €1-3billion in recent years versus the $11-13 billion of Disney.

What would concern me more is the balance sheet. I mentioned that Disney had $94billion of equity and $42.5billion of retained earning reserves. This is what gives a company its strength. Balance sheet, not profit. By comparison IAG has €7billion of equity of which only around €0.5billion of retained earnings related reserves. They are not in the same league as Disney.

Disney has stated their staff will continue to be paid, they can afford it. I think IAG are more likely to tackle the costs, they will need to take significant cost-cutting measures in my opinion. A business cannot flourish or be run through cost cutting, but there are times when it needs to be done.

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