International Consolidat... Share Discussion Threads

[hamhamham1] 22/3/2020 11:33

If it was that simple then they wouldn't be looking for money, companies try to make out they dont need the money when asking for money, for face saving and negotiating.
How much of that money in the bank is prepaid monies for flights which have beem cancelled and must be repaid?
If flights stay near zero for 6 months then that's £5bn eaten up and even when they resume it's going to be a gentle curve IMO, consumer confidence is shattered.

[m1k3y1] 22/3/2020 11:29

careful.....suggest you look at the latest RNS from IAG


Quote "The Group has strong liquidity with cash, cash equivalents and interest-bearing deposits of €7.35 billion as at 12 March. In addition, undrawn general and committed aircraft backed financing facilities amount to €1.9 billion, resulting in total liquidity of €9.3 billion".

[m1k3y1] 22/3/2020 10:59

200m a week ? If that is accurate for BA , I don't see why they would need a bailout .
800m a month , with 9.3B in liquidity .

I really don't understand this criticism of companies paying dividends.
To say that IAG has paid too much in divi's since 2015 is frankly ridiculous.
Maybe the reporter would prefer that they pay no dividends, which , no doubt he would also criticise.

large numbers of pension funds and private investors rely on divi payments to support their investments and it is right that companies should reward shareholders for investing in them.
Most companies only pay a divi of circa 3% anyway , which is minimal in my view.

[hamhamham1] 22/3/2020 10:39

Bad move politically for Easyjet to pay that divi, should have cancelled it due to extraordinary circumstances. The gov won't look kindly on that when Easyjet come with their begging bowl.

[loganair] 22/3/2020 10:37

Budget airline EasyJet has asked its pilots and cabin crew to take two months unpaid leave even though the carrier’s senior management are only taking a 20 per cent pay cut for three months. Move comes as airline hands £60m to its founder and shareholder Sir Stelios Haji-Ioannou.

EasyJet (EZJ.L) to press forward with a £174m ($202m) dividend payout to shareholders — despite appealing to the UK government for taxpayer help to deal with fallout from the coronavirus pandemic.

[hamhamham1] 22/3/2020 10:24

Dividends are going to pretty well disappear from most companies for a few years I reckon.

[careful] 22/3/2020 10:18

Todays Sunday times 'BA faces bailout..."

BA is burning £200m per week.

Oliver Shah.
Elsewhere net debt £7bn.
Criticism of billions given away in over generous dividends in recent years.
£4 bn in dividends and buybacks since 2015.

They are likely to need baling out and it seems HMG will eventually take an equity stake in a part nationalisation.
Initially a loan secured by assets with a convertable element.

[hamhamham1] 22/3/2020 10:16

That comedian does some funny podcasts, may help get through these long days coming...

[hamhamham1] 22/3/2020 09:59

Toon. That's why I reckon all the govs in the world will get together and agree that debt incurred through tacking this virus can be written off, like 3rd world debt was. Else it's such a chain around the world's economic neck for a long time. Special measures.
And after this, there will be virus budgets and stockpiling by each gov and global policies / processes to tackle any future outbreaks.

[toon1966] 22/3/2020 09:01

Mind boggling sums of money will be spent by the US Gov to fight Covid-19 and support the economy. Interesting that any bailouts will come with conditions, such as no share buybacks and restrictions on executive pay.

[milliecusto] 21/3/2020 23:39

Will be a long struggle to get back up to a decent share prices, the banks are testament to that, time to sell.

[gaffer73] 21/3/2020 22:52

The Virus - a flu like virus which caused worldwide panic and a 30% fall in financial markets until it quickly disappeared after 6 months.

[paa65] 21/3/2020 22:26

Dictionary definitions, year 2045School - buildings where children used to be gathered together for education up to 2020.Kissing - show of affection between two people using lips and mouths. Made illegal in 2021 to manage transmission of The Virus.Private Industry - an historical part of the economy, not government owned, once popular in many nations of the world, prior to The Virus.

[m1k3y1] 21/3/2020 20:08

I suspect that Walsh will see an opportunity to offer redundancies or new MF contracts to various crew groups.

They have been wanting to do this for some years and this presents them with the perfect situation in which to do it.
If UK GOV doesn't want to offer sensible financial support, why would Walsh agree to implement the GOV's 2500pm employee subsidy. and not make employees redundant .

[m1k3y1] 21/3/2020 19:56

ham...lots of airlines are operating ferry flights on behalf of various governments, to repatriate people at the moment.

Do not forget that IAG has a substantial and profitable Cargo business that will still be operating.

[hamhamham1] 21/3/2020 19:55

Counting seats on AIG flights back to UK is not the point. Everyone is trying to use their carrier flag airlines to get home before shutdown. What are the flight volumes like on outbound from UK?

[m1k3y1] 21/3/2020 19:53

I find it laughable that Branson declined to proceed with his sale of 31% of VS to Air France-KLM (who are themselves in trouble) for 220m but is now requesting financial support from UK GOV.

He could well end up with GOV owning a percentage of Virgin , for much less than the share value he had agreed with Air France-KLM .

I am not sure that Delta will be happy with that scenario though.

[m1k3y1] 21/3/2020 19:48

If Walsh says IAG doesn't need financial support from UK GOV.......I am inclined to believe him.

[m1k3y1] 21/3/2020 19:47

Smithy..Qatar already have 25.1% .

Logan......technically UK are no longer in the EU. However they have to adhere to EU rules during the transition period.

Quote "In reality, any government can do what ever it likes whether the EU likes it or not."
Of course they can but there are always consequences and if you want to benefit from buying into a successful airline with potential profit earning capability, not complying with EU ownership rules would not be a good idea.

I also suspect that the US GOV would not be impressed if UK GOV stuck two fingers up to airline cross border agreements.

[smithys2019] 21/3/2020 18:16

Logan, IAG burn rate estimated was 1.15 bn a month for a complete shutdown. From FR24, BA are nowhere near a complete shutdown yet. Still operating40% of their routes. Will be very interested to see the actual figures. I’m making a bet that Q1 figures will be bad but beat market sentiment.

Mate flew back from the Far East in club the other day and the aircraft was full. Not a single seat spare. So I think the company have probably done a good job of cancellations and rebooking.

Either way, I’m expecting a release from IAG first thing Monday morning Pre market open. If not tomorrow.

I would expect first step if needed will be a government bond held against landing slots as collateral together with Qr increasing their holdings of IAG shares to max permitted (25%). I would further expect a market rights issue well before the government get involved.

[loganair] 21/3/2020 18:13

Landing slots at airports can not be sold to governments, only to other airlines.

[albert3591] 21/3/2020 18:09

How about £1.50 opening share price take it or leave it,leave it and you will go bust