• From The BBC:

    British Airways plans to raise more than £600m to help it weather the recession, the airline has said.It will issue £350m in convertible bonds to existing shareholders and also release bank guarantees from its UK defined benefit pension schemes. Observers say the carrier wants a safety net in case it faces industrial action from cabin crew over pay, as well as tough summer trading. BA also predicted it had lost £100m in the three months to the end of June. But it added that this was “slightly better than market expectations”. “Following discussions with institutional investors, we’re taking action to improve our liquidity and strengthen our position within the industry,” BA chief executive Willie Walsh said. “This goes hand-in-hand with our cost reduction and efficiency initiatives, which are designed to create the right conditions for our sustainable, long term profitability.” Shares riseBA said the new funding would increase liquidity at the airline from £1.25…

    Click to read the full article »

    Posted by Jon @ 3:39 am

Leave a Reply

Your email address will not be published. Required fields are marked *