International Consolidat... Share Discussion Threads

[m1k3y1] 29/4/2020 08:38

The FT

Quote:
"It added that total cash and undrawn general and committed aircraft finance facilities amounted to €9.5bn at the end of March, including €6.95bn of cash, cash equivalents and interest-bearing deposits".

[take_that] 29/4/2020 08:36

I'm confused why the CEO has announced this, at this time. I was under the impression that redundancies could not be threatened while staff are furloughed. I would imagine that this is just starting of talks and that HR1s are not being started with the unions.....yet.However, why not try and keep as many staff on the Governments furlough option for as long as it continues? No top up for the higher earners but at least 2500 pounds per month for them, is better than zero. This does not seem logical or motivating for a beleaguered workforce.I've heard that cabin crew get an enhanced furlough option above the 2500 pounds, if their salary was greater. From the pilots perspective, they haven't even begun furloughing. So why not fully utilise these to save cash already and going forward?So I'm left wondering whether there is an ulterior motive here. Could it be to resist Virgins Government assistance plea. Could it be bring the Government to the table and focus their minds, given the state aid being offered to European competitors.....I don't know.

[volsung] 29/4/2020 08:33

Might be a decent buy at 185p

[buywell3] 29/4/2020 08:32

Looks like a chart new low could come today

Playing with it now

Sellers in charge

dyor

[npp62] 29/4/2020 08:25

DTG are obviously a different animal in terms of the business model. Their management team are highly competent, and credible, as is the wider team. They cut costs right back to the bone as soon as it was obvious what was happening, but they have drawn down a 100M credit facility since this started. They also have a Logistics arm which continues to operate and earn money for the group. However I've trimmed my holding right down there, as I have here, because clearly nobody knows when flying will get back to normal just yet.

[soho2] 29/4/2020 08:21

You are probably right (sadly)....

[demo trader] 29/4/2020 08:19

ex-IAG employees are happy to work for Tesco and ALDI, no choice

205.4p, bought few



Unlucky some1 bought 2.5m shares after close yesterday.

[montyhedge] 29/4/2020 08:17

Still market cap 4 billion, how?

[buywell3] 29/4/2020 08:11

Plus is that company can cherry pick staff

Create new contracts but

How big will the next quarter loss be 5 Billion Euros or less ?

No flights probably = no income

COE to step in IMO at some point IMO

dyor


Reality setting in now

These numbers will look great when compared to next ones IMO

[soho2] 29/4/2020 08:10

Union will be powerless... "go on strike"! There are no customers anyway so zero impact on their customers.

[montyhedge] 29/4/2020 08:08

Unions will screw them on redundancy compensation.

[sux_2bu] 29/4/2020 07:59

Good work SilkStag.

Any thoughts on DTG too ?

[silkstag] 29/4/2020 07:25

At 31 December 2019 IAG had:

£13 bn current liabilities
£16 bn long term liabilities
£11 bn contracted to buy 79 new aircraft, no loss in accounts..

versus:
£4 bn cash
£7 bn other current assets.
£24 bn fixed assets.

Net assets £7 bn (wrongly assumed £11 bn new planes worth £11 bn)

Fixed assets fall 33% ie £8bn, group has negative balance sheet.

£23bn costs in 2019, revenue decimated, 1 year trading losses will burn £6bn.
£11bn plane buy obligations will cost £4bn to abort or dump the old planes?
£1bn cash to pay redundancies [Good skilled loyal people. Grim].

£11 bn cash dies in 1 year = 6+4+1

Plus £8 bn Plane/kit write-downs.

Total 1 year loss £19 bn [to 31 March 2021].

Compare that to £7 bn net assets at 31 December 2019.

These are rough numbers. May take 18-24 months not 12. But this is why I believe that WW and his team are now working 98% for the creditors, not the shareholders (rump 2% punt equity = 10p value on refinancing).

Target share price 10p by July 2021. All imho. DYOR.

[jailbird] 29/4/2020 07:19

Extremely worrying times for the travel industry

[hamhamham1] 29/4/2020 07:18

The 12k threat was sabre rattling to the gov IMO. They want a good offer of help from the from which will give them full control for the duration and a better exit position.
Why didn't they just announce the actual redundancies, rather than a plan to make redundancies???
If it was just BA, it would be easier to sort, the joint Spanish situation complicated things.
But on the other hand, if the air travel industry is going to be substantially smaller for a couple of years, then the industry needs to cut its cloth accordingly, then rehire when demand grows. Other industries no doubt will expand in the next couple of years, so jobs will be created there.

[jailbird] 29/4/2020 07:14

I am beginning to think now IAG may well need to raise money at some point . I am sure it would be considered to buy a failed competitor or slots , but now I am thinking it will be just to survive

The cash is helped to by time but revenues are not going to pick up anytime soon and this and next year will be reporting losses

We still have not heard about the state of the other airlines in the group.

[montyhedge] 29/4/2020 07:13

I can't see a dividend for at least 3 years. I fly quite a bit, not anymore until vaccine.

[nw99] 29/4/2020 07:07

1.8 that's a huge amount of money gone

[jailbird] 28/4/2020 23:51

Btw insolvency will not happen anyway

[spacedust] 28/4/2020 23:51

How much will 12000 redundancies cost? Around £400m to £500m is my guess.

Plus 1.3 bn loss so almost 2bn lost.

140p tomorrow I'm afraid.....

[jailbird] 28/4/2020 23:51

Even if BA goes insolvent , the pension schemes are protected ..Well certainly the closed ones which are final salary schemes

[sr2day] 28/4/2020 23:45

All is not lost,a lot of their staff should consider nursing as change of career.there will always be a demand although the job may not be as glamorous.The NHS could easily absorb another 25000 nursing staff.

[bmnsa] 28/4/2020 23:43

We can look forward to.

[bmnsa] 28/4/2020 23:42

Who will now pay for BA workers pensions,if the ponzi is broken,they need currant workers to pay in for others to continue taking out. This system is everwhere. Stock market returns into pension funds will crash too,so dream on for your future pension payments. Across all the failing sectors it's a 1930's type Depression imo.