Tuesday, December 8, 2009

Britsh Airways Crisis

In the midst of current financial crisis, it appears that British Airways is one of the carriers suffering the most, not only seeing a dip in premium traffic but also recording its lowest one-day share fall since British Airways unveiled plans to raise about 600 million pounds ($1 billion) through a combination of bondholder debt and bank credit, when it reported a first-quarter loss of 100 million pounds.
Chief executive Willie Walsh told reporters the moves eliminated any short-term threat of a financial crisis at the airline. ‘This puts to bed the suggestions British Airways is in any sort of risk in the short term.
BA also reported an operating loss of 100 million pounds for the three months ending June 30, on revenues of 1.98 billion.
British Airways have been suffering from what many consider the worst conditions ever due to falling passenger numbers in the face of global economic turmoil, and traditional carriers have faced intense competition from budget operators. e 9/11..
British Airways, one of Europe’s biggest airlines, has asked staff to work for free next month as part of what management describe as a battle for “survival”.
The company has seen revenues plummet amid a downturn in the air travel industry. In an internet address, the chief executive painted a grim picture
BA’s biggest problem is a sharp fall in first class and business passengers, a crucial market for the company. It is currently in talks with staff on broader pay cuts and redundancies

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