International Consolidat... Share Discussion Threads

[jailbird] 29/5/2017 08:31

Their IT issues are all linked to their check in system recently deployed to save costs . it is very flakes and resilience is not the best. This is proved with power outage or network problem occurs .It can bring the airline down globally .This is supported by the Indian Co TCS. This is the root cause of it.It was a high risk IT change in strategy. The spend on this was hundreds of millions .As IAG is a group of Cos they needed to integrate and streamline their IT support processes to save costs.But Iberia and Air Lingus retain their core check in systems with global core Co used by other airlines .Amadeus and Sabre and Galileo are the main used by all airlines.Yes outsourcing has not helped as key skills have been lost. But that is not cause if it.Outsourcing is a false economy and BA have not finished doing this yetThey may decide to rethink this now But I doubt it.The brand and customer service has been damaged This Co owns a massive chunk of heathrow slots . It will bounce back from this. But they cannot afford repeat failures of the IT systems .

[mr woodentop] 29/5/2017 08:26

only down 3% on spanish market at present. This would seem to indicate expected profit hit in the region of 70m euro. I think this is a bit low

[qantas] 29/5/2017 07:54

How much will the shorters make out of this one on Tuesday.


Please do your own research...

[buywell3] 29/5/2017 07:48

I have just looked at the 5 year chart



Bottom chart lows indicate around 380p possible

RSI should hit 10 or less for this currently just starting its drop

Happy days for some , not so happy for others

dyor

PS

I wonder which UK banks are holding IAG debt ?

[buywell3] 29/5/2017 07:38

According to good olde advfn these look like around 8M shares a day


So roughly half buys half sells 4M of each

I reckon on normal trading IAG could weather around 10 days of soaking up sells of 5M a day

However I think we will see over 20M shares get traded today in Spain

Tomorrow 25M in London and another 20M in Spain

So I think that IAG can just about last the week in buybacks before their AGM authority to buy 500M euros of their own shares is exhausted

[bricktycoon] 29/5/2017 07:35

This will crash the share price big time reputation in tatters my guess £5 by 11 am the big shorts will be all over this on open in London Tuesday morning gla

[buywell3] 29/5/2017 07:30

Of course they are but the IAG BOD still can buyback around 360 Million euros worth of their own shares in what is left of 2017

That at around 7 euros would equate to circa 52 Million shares approx

Just take a look at average daily vols

[panic investor] 29/5/2017 07:25

After what I read on twitter last night the issues are far larger than they are letting on

[buywell3] 29/5/2017 07:24

So the buyback programme was for 500M euros

Rough calc so far is they have done around 50 buyback days of an average of 400,000 shares a day at a price of around 7 euros , look at the RNS's

so 2.8 Million Euros a day X 50 = 140 M euros

They can buyback another 360 M euros worth approx and then run out of ammo

That could happen today in Spain when the market opens BUT can they risk using all their ammo in one day ?

My guess is that the BOD will ring around all the major investors to beg for their support ie to buy more shares instead of selling

Some will some won't

I also now learn that the real reason for the problem is that the CEO shed loads of UK IT staff and relocated the call centre to India

Quality issues have been cited

Probably true many companies have tried the India call centre trick , most to their chagrin I would venture.

My guess is that in the fullness of time we will learn that it was a power problem in India

When we do the CEO will do the walk


Like I said this company will be traded in Spain today

[amt] 29/5/2017 07:15

This situation is bad. What happened to back up systems. A lot of explaining to do. Hate to think of the impact on share price both short and medium term. The direct cost might not be so big but its the impact on reputation thats important. Not good for UK either when the international airline has problems.

[buywell3] 29/5/2017 07:03

You guys not very quick .... next question

2. How many shares have they bought so far in 2017 ?


06 March 2017

Transaction in Own Shares

Share Buy-Back Programme Further to the announcement by International Consolidated Airlines Group, S.A. ("IAG" or the "Company") on 24 February 2017 that it intends to carry out a share buy-back of €500 million during the course of 2017, IAG announc...

[buywell3] 29/5/2017 06:23

OK listen up

1. IAG have been doing buybacks so how much more money can they use to do this ?

IAG will be trading in Spain today

The TA for this share is that it was overbought

How many more of its own shares it can buy is KEY

If it can't absorb the flood of sell orders this could hit 500p in a day

My guess is that inexcess of 10,000 international passengers have been stranded , in excess of 15,000 short haul passengers ditto

Circa $200 Million payback

Plus damage to brand and cancellations another $200 Million plus for 2017

Has the problem now been properly fixed ?

Will the systems crash again ?

[chiefbrody] 28/5/2017 22:57

Cool. Cheap direct ticket to Bangkok please BA ?

[diku] 28/5/2017 22:18

Counter act damage limitation.. I can see heavy summer hols promotional discounts coming...

[chiefbrody] 28/5/2017 18:01

What they gonna call that? The Walking Dead :-)

[alphorn] 28/5/2017 17:27

Now a strike by some at Alitalia.

[panic investor] 28/5/2017 14:18

indeed you could make money both ways there with 4 trades !

[chiefbrody] 28/5/2017 12:08

I have EZJ as well. IAG down. EJZ up. Easy come easy go ;-)

[chiefbrody] 28/5/2017 11:42

Lol @ 500p.20% off?You think this will cost half a billion?Granted markets always overreact but 100p off would be insane.

[napoleon 14th] 28/5/2017 11:26

chiefbrody - you hold these? I'm real glad I don't!
Not being a killjoy, but 12-18p might be the new spread on the fall. Partly depends on how they get things back to normal.
Meanwhile, you have to reckon on the cost of flights that never happened, planes & crews in wrong places, airport fees on imobilised planes, hotel etc costs of those stranded, claims for damages (wrecked holidays etc) & loss of goodwill.
I'd look at 500p for opening & even then it depends on news.
Bad show.

[diku] 27/5/2017 22:07

Bet those Pilots and cabin crews are having a jolly good time off in hotels...

[chiefbrody] 27/5/2017 19:09

Just a glitch (no pun intended) in the share price advance.

[chiefbrody] 27/5/2017 19:08

I'll guess at 12-18p ;-)