91Èȱ¬

Does London really need a third major runway route/Heathrow extension now that the British commercial airline industry is simply just the plaything of foreign interests and their profits?

@Nautonier:
Of London does need the third runway at Heathrow!! what a silly question ;-)
How else these "foreign interest" would be able to make more money off the back of the British people and international business people traveling through?

TOO BIG TO FAIL

This merger is the first evidence of the absence of the moral hazard caused by the bailout of the banks.

They have said themselves this is a measure to 'protect' each loss making company. i.e. by creating something that would have to be on the political agenda to bailout (because the job losses would be huge)

The fact they they are already both loss making - simply will prove that "2 wrongs don't make a right"

I haven't got the time to go into the consumer aspect of this and the consequences - of course they will be dire too as the giant megalopolis company takes over the skies (of course shared with the other giant monopolies)

....but don't worry, I'm sure it will all be regulated properly - at the tax payers expense of course!

I see tears at the end of this runway as we continue to keep zombie companies alive. The customer service at Iberia is atrocious and BA is fast catching up. Fine, most would fly no frills but some people will stop paying for premium that sucks. In the end, this synergy means cost cutting only and the tax payer ends up paying for another free G&T on BA.

It is impossible to escape the idea of two drowning people clinging together for safety!

How is BA's pensions time-bomb these days...?

It will be interesting to see what Unite think of this one, because I suspect that when the cost-cutting starts, militant cabiin crew will be somewhere close to the top of the list...

Today's big news is this merger - it was all over the news this morning. However the choice of headline is becoming more and more obstructive in that it's hiding the real stories.

Not long after I mentioned the continuation and deterioration of the Greek crisis on Roberts blog - ignored by the main stream media - that suddenly the 91Èȱ¬ journalist found their pens and started to report it.

Some poor Beeb journo was up to midnight last night completing this story.


Isn't it good that our public news service is so 'on the ball' and concentrating on the 'important issues' that it misses the next stage of the crisis.

Still - I suppose if the Government don't reveal it in a statement to the press - then it simply doesn't get reported.

Well done Beeb - and can you also clear up why on Breakfast news this morning you reported the FTSE finished up 1.15% yesterday when it infact finished down about 0.6% (if memory serves me correctly)

Is this yet another sign of the truth being subject to 'election rules'?

Willie's always wanted to get some Spanish fly!

5. At 09:51am on 08 Apr 2010, John_from_Hendon wrote:

"How is BA's pensions time-bomb these days...?"

Clearly good enough for Iberia (or is that merely a sign of their desperation?)

Love this line by the way - it should have been this mornings headline because it sums up the entire fiasco perfectly.

"two drowning people clinging together for safety!"

Why is it that nobody else seems able to see the lunacy in this merger - I mean are BA in the middle of a strike? How does that fit in with the expected 'cost cutting' aka 'job cuts' - now that the Union are warmed up - how easy will it be to join with the Spanish unions and create a 'giant strike' situation.

I mean they could probably arrange it with Lufthansa (who are due to strike again next week) - and bring the whole of European air travel to a standstill.

3. At 09:20am on 08 Apr 2010, writingsonthewall

You beat me to it!

Still, we could let them fail without worrying about the ATM being 'temporarily out of order'.

Couldn't we?

The creative accountants at work once again here. After these last few years making a company bigger has made no difference as far as I can see. If anything the profits go down, but board room pay goes up.

A legal way to get rid of debt and risk?
And what will Heathrow do if BA went down after spending all that cash on a new terminal?
Never mind...... business is risk as we are constantly being told.

This comment was removed because the moderators found it broke the house rules. Explain.

Any idea on whether the new company will be based in the UK or Spain (or other) for tax purposes?

11. At 10:29am on 08 Apr 2010, barry white wrote:
And what will Heathrow do if BA went down after spending all that cash on a new terminal?

Retail park?

2.

Yet another foreigner telling us how to run our country ... more for the benefit of foreigners!

What a Dodo Brown mess!

3. At 09:20am on 08 Apr 2010, writingsonthewall wrote:

TOO BIG TO FAIL

Don't be ridiculous, the government would never bail out a company of this size on our behalf again. Why would they do that when they can just lend dodgy loans through RBS now like they've done with the UK governments land agency.

The government lending to itself through its semi nationalised bank using a capital/lending ration less than half that used in the private sector... 'there may be trouble ahead...'

Do BA shareholders realise what they are letting themselves in for? As a previous comment stated Iberia onboard service levels lead a lot to desire(I made this comment recently on on their "customer surveys"),but also their "rolling stock" is a bit ancient and tatty,in both EU and Intercontinental flights and possibly needs a complete renewal.

Strange policy.

BA is a company who's reputation is such that I would pay extra to fly with - Iberia's is one that I would pay extra NOT to fly with.

If BA wants a merger why not try LAN, giving it access across South America. They have new planes, new configurations, and the customer service is very very good.

By contrast Iberia has old planes, old configurations and service is appalling. As an example, Long haul over the Atlantic passengers don't even get individual Video screens, but just those in the centre of the cabin (not even in the aisles)- this for 12 hour flights. Vegetarian options contain glycerine. The seat belt signs are kept on for 3 hours + from take off so passengers can't stretch their legs (this is not safety related - a common ploy if you listen to airline staff). How much will the new monstrosity have to pay for new planes?

Can someone also state why the new board will incorporate virtually all the old board members - BA + Iberia, surely there should be a 50% reduction - just one company. But is it one rule for Cabin Staff and one for the highly paid executives?

This comment was removed because the moderators found it broke the house rules. Explain.

10. At 10:16am on 08 Apr 2010, copperDolomite wrote:

"You beat me to it!"

it's terrible isn't it - the responses are becoming so obvious because the mistakes are getting more and more noticeable.

At least we're learning about 'too big to fail' - even if these 'clever business folk' still don't get it.

...and to think Mr Rose was defending his kind this morning after being labelled 'a bit dizzy' by believing the Tories numberwang game with NI cuts.
For Big willie and Iberia to pull this off immediately afterwards shows me they're either playing 'TBTF' deliberately - or they really are stupid. (but the public probably think they're clever because of their bank balances)

It won't matter anyway as Spain is next on the list to go down the soveriegn default tube.

#7. writingsonthewall wrote:

"Not long after I mentioned the continuation and deterioration of the Greek crisis on Roberts blog - ignored by the main stream media - that suddenly the 91Èȱ¬ journalist found their pens and started to report it.

Some poor Beeb journo was up to midnight last night completing this story.

Actually, that story was completed shortly after midnight yesterday morning, which means it was written several hours before your post.

But why let the facts get in the way of your own sense of self-importance?

#15. nautonier wrote:

"Yet another foreigner telling us how to run our country ... more for the benefit of foreigners!"

This is a merger between two private companies. Nothing to do with foreigners "telling us how to run our country".

8. At 10:13am on 08 Apr 2010, DebtJuggler wrote:
Willie's always wanted to get some Spanish fly!

oooooooooooooooooooooooooooooooooooouch!

Why do we need all these 'national' airlines anyway? None of them are working profitably.
Perhaps now we should consider having just one European Airline.
At least then when we book a ticket we'll know which plane we'll be flying on.

I have to say that I feel a bit sad, purely in nationalistic terms, that this new airline will be Spanish.

Although the company will have its primary listing on the LSE and will have its "operational" headquarters in the UK, the company will be a Spanish registered company will therefore be known as a Spanish company when referring to it in the press and in the financial community.

I feel that BA is a little less "British" this morning. Cadbury déjà vu!

WOTW.
Actually, the FTSE was up yesterday. I suggest you find better information sources.

Sadly, Unite rose to the bait laid by the hedge-fund managers behind the Willie Walsh 'effect'?

Unite knew, and should have explained to it's members the truth, that Iberia fund-managers, would not accept the BA 'pensions black hole' created by BA use of 'pension holiday'?

£billions was made behind the scenes on BA stocks - how will Unite explain their withholding their knowledge to Unite members?

The elephantaclausrus in the room with mahaharajah Gordon on its back is too big to fail and if it ever learns to fly then themasses had better watch out ,it'll be more than a pat test coming their way.

Every member of every Union should ask questions of their Union.

1) How much does your union executive earn?
2) What is the pension plan for your union executive?
3) Is your union publishing its accounts and costs and open for scrutiny?
4) What is the real motive for calling for strikes.
5) If your union is unwilling to publish audited accounts - ask why?
6) Does your union leaders and executives have 'other' political' interests
that your subscription may be 'subsidising'?

Robert Peston was quiet about Iberia and BA during the Unite strike for cabin crew, even though HYS posters were clear and evident about the 'manipulation'?

No, Robert, you are totally impartial on your professional approach? Well done you.

Perhaps you might expose all those 60 'British' companies opposing NI increase? Perhaps you might expose that the majority import most products; outsource financial services and don't need any excuse to shed jobs in UK, but the NI controversy is one to 'hang on'?!!!

BA-Ibe.''Consolidated'' reminds me of old gold shares. More ''consolidation'' to come ???

Unamed management spokesperson...
We are ''not waving'',''not drowning'', either,
...actually,... flying high !!!

Clearly, drugs are not good for you ConAir.

21. At 12:20pm on 08 Apr 2010, rbs_temp wrote:

"Actually, that story was completed shortly after midnight yesterday morning, which means it was written several hours before your post."

Au contrai mon amie - I have been watching carefully for 'Greek stories' for a couple of weeks and this was not on the website yesterday. If you had bothered to check the article yourself you would see this paragraph:

"In some see-saw trading, interest rates on 10-year borrowing went over 7%. Germany pays a little over 3% on borrowing the same currency for the same period."

Going over 7% happened yesterday - not today, today it rose further above 7%. - but don't let any facts get in the way of your sniping.

"But why let the facts get in the way of your own sense of self-importance?"

Speaking of which, how are you these days RBS_Temp? - you've been very quiet lately - is it because things aren't turning out as you hoped? Is it because reality is starting to bite in your world - I mean this is "only a recession" still - isn't it?

Your last snipe was based around my calling of a 'winter of discontent' - which of course I admit was wrong. It is of course a 'spring / summer of discontent' - unless you class the shutdown of UK transport through strike action merely a 'blip' in the smooth running of things.

...and before you climb back on your high horse and start hailing 'what strikes' - the legal action taken by employers has merely inflamed the situation - meaning there is every likelihood these strikes will raise more and more conflict.

...but what are they striking for - they should be happy to have a job shouldn't they? - are you one of the free market supporters that think 'free and fair negotiaions for trade' should exclude the negotiation between labour and capital exchange?

So many contradictions - so little space to point them all out...

... Says it all!

The runway might get very, very busy at some point - just before the airport shuts permanently!

22. At 12:27pm on 08 Apr 2010, rbs_temp wrote:

#15. nautonier wrote:

"Yet another foreigner telling us how to run our country ... more for the benefit of foreigners!"

This is a merger between two private companies. Nothing to do with foreigners "telling us how to run our country".

>>>>>>>>>>>>>>>>>>>>>>>>>>>

That's your opinion!

This is my opinion!

Its a another Dodo Brown sell out mess and a third runway more for the benefit of foreign investors - and not Britain!

And there goes a report that AA are going on strike over terms and conditions - yip, pensions.

Expect a report from 91Èȱ¬ in a bit.

RBS_Temp - and now they've made it the headline!!! (or was it like that already???)



Check out these stories - surely you can see the light - I mean it's blindingly bright in the middle of your eyes!





Let's just hope the Governments of the world have fixed that contagion lark - I'm sure they have, they wouldn't risk a second crisis now would they?

Peston, stop gassing about mergers that will never happen and report on the unfolding disaster they call sovereign debt.

29. At 1:24pm on 08 Apr 2010, corum-populo-2010 wrote:

"Every member of every Union should ask questions of their Union."

As should every shareholder ask the same of their board....oh wait a minute, they just do an Enron and lie their way out of it with the assistance of the Auditors - or they cover it all up like the Lloyds due dilligence and the RBS purchase of ABN Amro.

So what should we expect next, BA flight crew to be predominantly Spanish?

26. At 1:04pm on 08 Apr 2010, hootsmon wrote:

"WOTW.
Actually, the FTSE was up yesterday. I suggest you find better information sources."

By how much? - I'm not disputing what you say but it doesn't look like the 1.15% the 91Èȱ¬ claimed this morning.

In fact it looks like a start of 5770.34 and a finish of 5762.02.

38 Uphios wrote:
So what should we expect next, BA flight crew to be predominantly Spanish?

-----------------------------

Well at least they'll be easier on the eye ;o)

National governments. Mainly HMG, Have taken it upon the taxpayer to provide the infrastructure whereby the low cost carriers can flourish.

Look upon it a bit like having a road network connecting to cheap out of town supermarkets.

We will eventually have to bail out what is left of the flag carriers.
But that is in the future.
Meanwhile rotate.

WOTW. You are right. It appears the Beeb used the 01 April figure of +1.15%, the tickertape obviously got stuck.
Yesterday the start was actually 5780.35=>5762.06, -0.32%
B Airways (which will be now known as International Airlines Group)will be listed in UK on the LSE, for all thse tax domicile conspiracy theory junkists.
Branding will remain as is. Head office functions (wasteful fat cats) will take the brunt of cost savings €400m in 5 years, over 'front line services'.
Interesting parallel.

BTW, on the FTSE 'down' figure. Bear in mind, Wednesday is a dividend day. There were some fairly chunky payouts, e.g Pearson 23p or so.
Net, it probably was up.
Cue some tiresome diatribe about evil dividends, capitalism, forward asset pricing models....natch