[BeckyBoop]

Bad news!!

IAG reports a 249 euro loss in first quarter earnings wider than what was foracasted by analysts.

http://uk.reuters.com/article/2013/05/10/uk-iag-results-idUKBRE94906S20130510

[VintageKrug]

It’s all Willie’s fault – which method of putting to death would the usual suspects prefer?

[BigDog.]

http://www.youtube.com/watch?v=XPCgOE6tKdk

… just hope being toxic, he isn’t recycled but is exported and used as land-fill 😉

…and yes it is all Willie’s fault.
He could have pressured IB to start restructuring prior to merger, just as IB told BA to get its Pension Fund and Cost base sorted.

He could have listened to advisers that Spain was actually/in reality a long term basket case and not his own beliefs that it was merely “perceived” as having problems.

He could have stopped the wedding to the corpse and saved BA billions.

etc..etc..

…but no, the guy couldn’t see past his goal of self aggrandizement and self enrichment – regardless of the astronomical cost to BA stakeholders.

[FormerlyDoS]

But little Willy won’t go ……..

http://www.youtube.com/watch?v=4FguJqN5VQw

[FormerlyDoS]

“It’s all Willie’s fault – which method of putting to death would the usual suspects prefer?”

Seems some people don’t understand the concept of accountability.

[Shearer]

The loss is €278m

[canucklad]

FDOS….It is quite “Sweet” of you to remind us of WW’s contribuitions to BA’s shareholders bank accounts……

He Willie Will be happy with today’s political posturing’s though…

[BigDog.]

The markets don’t like it, not just the fact it is another loss – which was expected, but more importantly the size of it €278m – which appears was not expected.

Analysts/fund managers like to be comfortable that companies whom they invest in, keep them well updated, this appears to be a surprise.
(A 3% overnight fall specific to IAG and not its industry sector)

If it is a surprise to fund managers that either IAG weren’t in full control or IAG had chosen not to keep the market updated, such behaviour will lose investors confidence.

[canucklad]

BigDog……. I was hoping somebodywould correct me………….or rather rebuke me….

I used the phrase BA share holders….

Is there such a thing anymore ?
I

[BigDog.]

Well given the prior merger discount to BA shareholders still applies to those still holding their shares, then yes, from an IAG perspective BA shareholders exist.

BA shareholders were the largest stakeholders overall 55% wrt the merged entity – IB 45%. Walsh sold out BA shareholders, IMO the split should have been at least 66%-33%.

You are correct though, in stock market terms, BA shareholders no longer exist.

[canucklad]

Thanks BigDog…..

Can I make a propasal to everyone. who has an opinion on BA’s performance……especially those contruibuitors who have identified themselves as havign a stake in BA because they are shareholders…..

Identify IAG as your stake , not BA…..it’s IAG paying, or not as the case maybe …..not BA…..

[BigDog.]

It is interesting though, as AnthonyDunn pointed out in a different thread, that IAG still financially reports BA and IB separately before subsequently consolidating them. Something I don’t believe AF/KLM do, nor LH/LX do.

The CAPA analysis bears this out, clearly showing the state of the IB corpse.

[canucklad]

Probably a political move…as they tackle the Spanish government and more importantly the IB unions…..

A warts and all comparison……..

Probably in the same way, its convienant for the French to bully the dutch and hide AF’s figures by camouflaging them with KLM’s…..

[VintageKrug]

It’s really BA management in charge of the whole shebang, though, isn’t it?

They have their newly positioned placemen running IB and have only relatively recently begun to assert control.

Rather than a corpse, I’d suggest IB is a somewhat obese patient which has gorged unhealthily for too long on the fat of State vested interests and largely been in thrall to its Unions.

IB is now being put on a crash diet (unfortunate turn of phrase, but I’ll let it stand) and should emerge leaner and more effective in the future.

In the meantime, should the gastric band not work, there is vueling waiting in the wings to take up the Iberia routes on renewed T&Cs which are more compatible with current economic necessity.

So there’s a Plan A which is in hand, though until recently being impacted by intransigence of the Unions, and a Plan B which is well thought through and presents an easy get out of jail card if required.

BigDog is quite right, however, to highlight the poor information flows which have lead this to become a “surprise” to analysts.

However, thinking more strategically for a moment there may well be method in their madness if IAG is trying to depress the share price to make it more appealing for Qatar to step in and take over Bankia’s shareholding….things may not be as clear cut as they at first seem….!

[FormerlyDoS]

“there may well be method in their madness if IAG is trying to depress the share price to make it more appealing for Qatar to step in and take over Bankia’s shareholding”

Are you stating that the directors of IAG are manipulating the share price, to cause loss to a shareholder?

[Author]

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