Font size: A A A A
Home > Supplier Information > Air Travel
Related topics: Air Travel,United Kingdom
Font size: A A A A

British Airways Tries to Raise Emergency Cash

July 17, 2009 By: Jena Tesse Fox


Troubled British Airways plans to raise nearly a billion dollars of emergency cash funding as it tries to survive the current economic downturn, CNN is reporting. CEO Willie Walsh said the plan would help the airline maintain its position as a global premium business.

The news is an indication of bad times at BA, which is facing the threat of summer strikes by ground staff. Earlier this month, its pilots accepted a pay cut in exchange for the promise of shares to help the airline save money.

The airline said it would try to raise $978.6 million in two ways, the company said. Half the money will come from a $489 million convertible debt issue. They are essentially IOUs that will be repaid with interest or converted into BA shares in the future. The airline's pension fund has also allowed the company to draw on bank guarantees set aside for the pension in case of bankruptcy. That means it will have access to as much as $540 million if it needs to draw on cash.

The airline lost $163 million in the first quarter of the year, ending June 30, the company said Friday in a pre-announcement of its earnings. That figure was slightly better than the market expected, the airline said, but it also means the company is losing about $1.6 million a day.

As of June 30, the airline had approximately $2.04 billion of cash and general facilities of around $212 million.

What do you think of this $type?

This comprehensive guide begins at Alfava Metraxis and ends at Doctor Who Magazine wins the ACE Press Award 0 Following its record breaking ABC figure earlier this year, Doctor Who Magazine had cause for further celebration at the 2014 ACE Press Awards held viagra bedeutung online apotheke at the Museum of London. This may take a second or two.