WHAT FUTURE DOES BRITISH AIRWAYS FACE?
DOUGLAS MCNEILL ASTAIRE SECURITIES
In many ways, BA is well placed. It has ample stock reserves and can tap the stock market for more cash. The trading environment is difficult because of the absense of premium class passengers, but that traffic will return. But if oil spikes like we saw last summer, it will be a concern.
GEOFF VAN KLAVEREN BNP PARIBAS
There’s been no significant increase in BA’s revenues, so it’s sensible to cut costs, which is what it’s doing. For a viable future, BA needs to sort out its pension deficit to allow it to merge with Iberia. The tie-up is necessary, so it can compete with AirFrance KLM and Lufthansa.
JOSHUA RAYMOND CITY INDEX
As we enter the summer period, we’ll see if BA has durability. If they can’t pack their planes, it raises the question whether they’ll have to ask the government for a bailout. BA is the UK’s GM, but for the aviation sector, and it looks likely that the govenrment won’t provide a bail out.
HOWARD WHEELDON BGC PARTNERS
British Airways will come through this. This is an unprecedented crisis and these are unprecedented times. The airline needs every ounce of support it can get, and it’s delightful to see that it’s staff are choosing to support the airline by agreeing to paycuts. It’s the start of a courageous battle.