Recent problems with the new T5 Terminal at Heathrow have resulted in more problems for BA when will they recover their No1 position.

Branson is definitely right, that's why his business go from strength to strength.



Branson to ministers: let BA go bust


Sir Richard Branson has rubbed salt in British Airways wounds by declaring BA practically worthless, and urging the government to resist any attempts to bail it out.

Bransons comments will incense BA management, which this week will hold vital talks with cabin crew and ground staff over pay cuts, lay-offs and changes to working conditions aimed at saving 100m a year.

Willie Walsh, chief executive, who is trying to stem big losses and has warned that BA faces a fight for survival, wants a deal by June 30.

Branson, who founded Virgin Atlantic, BAs biggest commercial rival, said ministers should not be tempted to step in. It would not be in Britains interest, he said.

We and others are standing by ready to take on their routes and runway slots at Heathrow if they get into serious trouble. I thought the US governments bail-out of the car companies was a bad idea and its the same for BA.

Virgin had looked at a bid for BA, Branson said, but concluded that the companys liabilities in particular its pension deficit were too great.

Its not worth much anymore because of the liabilities. We were thinking about if the shares went under 100p (they closed on Friday at 136p), but it would be better to wait for its demise, he said.

Yesterday a BA spokesman said: This is fantasy. There are no talks with government, and there will be no talks. We have opposed state aid and our position has not changed.

The fraught relationship between the airlines has worsened. Keith Williams, BAs finance director, recently questioned Virgins claims of a profit, saying its figures went into Virgin accounting territory.

It emerged this weekend that Walsh has snubbed a request to give evidence to the House of Commons transport committee on July 1 the day after the deadline for the union talks. MPs are preparing a report on the future of aviation.

Given the extremely wide ranging nature of the subject of investigation which goes far beyond BA he has reluctantly declined, an airline spokesman said.

It's really good to see Walsh is sweating now... and even better when the market opens tomorrow morning.



BA's Walsh leads the way but few follow
Tom McGhie, Financial Mail
21 June 2009, 1:12pm


A rallying cry by Willie Walsh to his 40,000 troops at British Airways to work for free for up to four weeks has met with a less than enthusiastic response.

Only 200 have agreed to forgo pay - and unlike Walsh, who will give up a month's money, they will lose just one week's wages.

The disappointing response follows the announcement last month of a record 401m annual loss.

Insiders called Walsh's pleas a gimmick. 'It was never likely that they would follow Willie's lead,' said one.

Walsh will give up his July pay, worth 61,000. Chief financial officer Keith Williams, who earns 435,000 a year, will also give up a month's salary. The company refused to confirm whether any other directors, including chairman Martin Broughton, who earns 350,000, would follow.

But Walsh has had some success in negotiating with BA's engineers. About 3,000 are believed to have agreed a new pay structure, enabling the airline to make big savings. This follows a deal with 3,200 pilots to cut their pay by about 10% and accept 78 redundancies. In return, they will be given shares worth a total of 13m. Walsh is also trying to secure fresh terms over 4,000 voluntary redundancies.

NO CAPETOWN?? 99p soon.

I guess Capetown has jumped off BA long time ago.

No he has not,hes still here,
in for the longterm,so you just worry about yourself,happy to hold,as for virgin looking at ba,branson should buy back the 49%share of his company owned by singapore airlines who have been trying to sell for somtime before he looks at BA,but then he is full of gimmicks,BA will be around long after Walsh has gone.

Sir Richard will get their routes soon, they will go bankrupt unless British Government put money into them. I hope taxpayers cash will not be used to prop up this poor Company.

I hope they dont get taxpayers money too,i am confident they will not need it.
happy to hold.

Yet another british icon being destroyed by weak management and belligerent unions.

Maybe the Arabs will buy it at a knockdown price, just for the routes

BA may not last for long, let alone ''in for the longterm''.

10 YEAR CHART

British Airways workers have rejected management plans to cut costs through thousands of job losses and a two-year pay freeze.

A union spokesman said feelings among the airline workers were "running high" at a meeting held today of more than 2,000 employees, close to Heathrow airport. "They have sent a very clear message that they don't want us to make any further concessions that would lead to an assault on their terms and conditions," he said.

BA is struggling to cope with the downturn in air travel and in May reported losses of 401m.

It has already stirred controversy by asking staff to take unpaid leave, reduce hours or even work for nothing for up to a month to conserve cash, a request that unions branded "insulting".

Fresh talks with BA are due to be held on Wednesday.

There is no threat of strike action but disruption over the summer is a clear possibility. BA was hit by an unofficial strike in 2003 over terms and conditions and was grounded again in 2005 by a dispute over catering staff.

BA pilots reached a deal last month that will see them taking a 2.6% pay cut and save the airline 26m. The current talks cover other workers including cabin crew, baggage handlers and check-in staff. It is believed there are still wide differences between the management and unions.

The carrier had hoped to reach a deal by a self-imposed deadline of the end of last month, but has now called in the arbitration service Acas.

BA said last month that 7,000 staff had applied for voluntary pay cuts, including 800 who agreed to work for nothing for up to a month. BA chief executive, Willie Walsh, who has given up his pay for July, said it had been a "fantastic" response. Unions, though, have accused the airline's managers of putting workers under pressure to accept a cut, which the airline denies.

Unions have also noted that Walsh is far better placed to work without pay for a month his monthly earnings of 61,000 are twice the average annual salary for cabin crew.

gone up 10% in last week

and will continue to rise.

yes still is capetown.......do the opposite to what hyleo says after the event and you'll do well

up to over 140p now

.

marni.
I dont expect this to do too much overnight as there are many hurdles to get over,i do see 200p in the next six months.

BA slumps to 94m quarterly loss.

as a slightly risky longer term investment, BA is probably worth a flutter.
i have certainly got it on my own watch list with a view to (probably) buying in the near future

should have bought 2/3 days ago when i started monitoring and sp was only 130/132!