International Consolidat... Share Discussion Threads

[hamhamham1] 14/3/2020 13:08

That's where you need to be careful and not rush in. Additional debt or share price dilution are just a couple of options which could affect the shares price of any company that needs money.

[m1k3y1] 14/3/2020 13:07

waikenchan......complete nonsense.
IAG is not even close to being like flybe.

IF HM Gov offer cheap loans to airlines, IAG would be mad not to take advantage of it and I suspect they will but there will be NO loans for shares deal.

In addition, IAG is a Spanish company, so is it the responsibility of HM Gov to offer support or Spain. Having said that, maybe it is the EU's responsibility , as they are insistent on the EU ownership requirements for EU airlines ?

The German Gov isn't hanging about and Lufthansa have already asked for support apparently.
I don't see how countries cannot offer support to airlines in this situation. It will be across the board.

[waikenchan] 14/3/2020 12:55

Wouldn't surprise if BA needed emergency goverment loan once its cash reserves dries up. The makings of a flybe 2.0 - especially once other countries start closing borders to UK and Spain (as places already have)

[careful] 14/3/2020 12:53

It seems to me that people and organisations are ignoring the leadership of the government and making their own decisions.

No need for HMG to cancel flights.
As if BA or FlyBe or anyone wish else to make flights that are almost empty.


The CEO of BA was talking tough yesterday to the employees.
All of a sudden this unionised company has some sort of power over the workforce.
'If you don't like it, then go on strike for six months.,

An ideal solution for BA.
No wages, no fuel costs, reduced outgoings.
The power has shifted back to management.

This situation has created a new world, there will be some strange side effects.
The threat of 'industrial action', will be meaningless in a lockdown.

[montyhedge] 14/3/2020 12:53

250p on its way, I reckon, still values IAG at 5 billion.

[cyberian] 14/3/2020 12:28

How BA re-organize even UK domestic flights on further reflection and to complain is rather futile when you look at the disasters of other people stuck away from home and really suffering. Guess one has to put ones own frustrations aside for the time being...social distancing seems to be the only way forward, and many companies are taking the initiative and leaving some Governments (UK) behind the curve.

[heialex1] 14/3/2020 12:28

Agreed. Having a clown in charge when there is a real crisis is scary, but the one thing he does know is he will have to do whatever it takes to keep the economy going for his re-election. There will be enormous fiscal and monetary stimulus across the world like has never been seen before.Don't be surprised to see helicopter money finally be tried

[thefartingcommie] 14/3/2020 12:23

fwiw....IAG,DTG+Ryanair .....from the technicals cld fall by 40%+...before sustained recovery.

[cyberian] 14/3/2020 12:13

Even flights to Inverness, Scotland are being cancelled/re-booked....our return flight cancelled yesterday, and re-booked for one at 7.00 am instead of 12.20 pm on 6th April. One must assume that previously booked passengers are cancelling trips as surely they have the planes and pilots for UK domestic. Problem is like many now is whether to cancel hotels etc. IF possible as uncertainties continue. Trying to postpone a trip to Azerbaijan and Georgia for early May but that has been subjected to other issues on State decisions...like even NZ...who wants to travel there now with 14 days isolation. Anyway, with such near term worries and possible further extensions on travel arrangements/restrictions unfortunately IAG has to be even more radical in cuttings costs...have no idea where the share price will be over coming weeks.

[loganair] 14/3/2020 11:21

The whole of Europe seems to be closing down.

Denmark is soon due to close its land boarders.

Poland and the Czech Republic to now allow entry to any but their own citizens, not even other EU citizens will be allowed to enter.

Venezuela has just reported its first cases of the coronavirus.

[tornado12] 14/3/2020 11:20

Governments talking about 6-8 weeks before the peak is passed. That’s major losses for all, but for airlines will see major survival risk losses. I’m back from working as expat due to uncertainty in travel both from government crackdowns and possible flight stoppages. As a weekly BA traveller these are unprecedented times and unfortunately it’s going to get worse much before the situation stabilises. I still think BA heading for 200p and I’m sure they will have to suspend future dividend into 2021. Its total disaster but outside any company control

[loganair] 14/3/2020 10:42

I do not understand what the UK airlines are playing at. If I was in their shoes as from Friday mid-night I would have stopped all flights to Spain instead airlines have spent precious money they need to preserved sending flights to Spain to only have them be turned back.

[loganair] 14/3/2020 10:19

Jet2 cancel all flights to Spain: Planes turning back to UK after coronavirus shutdown. Seven flights heading to Spain from the UK this morning were made to turn back before they could land.

Important to remember, BA being part of IAG have both Iberia and Vueling in their group and these two airlines will basically be completely grounded for the next two weeks.

[loganair] 14/3/2020 10:16

One airline I use to work for, their largest aircraft type was leased by the hour, therefore if the aircraft wasn't used then the airline didn't pay for it.

However most leases airlines pay a monthly lease which is the same whether the airlines uses the aircraft or not.

[m1k3y1] 14/3/2020 10:13

They will ground the 380's as they are not as cost effective as say 777's.
In addition, there is talk that they may see this as an opportunity to redeploy / make redundant the eurofleet cabin crew.
BA have been wanting to do this for some years but have met with union resistance.
One thing is for sure, BA will look for opportunities in this mess.

[careful] 14/3/2020 09:59

Leasing and wet leasing, these details are important.
Not using the aircraft saves a fortune, but detail of the contacts must be complex.

The pain in part must get transferred to the leasing companies who own the aircraft, but they must have their own slick lawyers also.

[loganair] 14/3/2020 09:51

The big airlines in the United States are already saying it is going to cost them $3bln each to get through this.

Important does the airline own its own aircraft, if not what are the leasing arrangements and how much debt is the airline carrying.

It is important to always remember the 'Debt Kills Companies.'

[careful] 14/3/2020 09:19

They should survive for 6 months ok.
Drastically reduced fuel costs, no cap ex.
A bit like closing a hotel for refurbishment.
It is the crazy travel bug that will be the problem.
They will not get back to normal easily, out of fashion with flared trousers and cuban heels.

We are all pleased for little Greta and her climate change activists.
They have got what they wanted.
Seems like divine intervention.
Say what you want about the Almighty, humans faff and fudge and get nothing done.
when he decides to stop us ruining his planet he fixes it in a few weeks.

[loganair] 14/3/2020 09:06

Sadly at the end of the day I can easily see the share price collapsing to 50p.

[watfordhornet] 14/3/2020 08:45

Yes - will be interesting to see how quiet and meek those pilots will be now. Doubt they will be compla8ning about loss of benefits

[hamhamham1] 14/3/2020 08:33

I'd like to see a lot of these big companies debt level profile and relative to profits in 12 months time.
How many will rush to use their current credit lines whilst they are still in place?
For a lot of companies it will be just about survival and not to worry about debt levels.