IAG a House of Cards?
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at 10:09 by SimonS1.
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VintageKrugParticipant1. BA required the scale and cash delivered via the acquisition of IB in order to purchase bmi.
2. IB’s South American network is unrivalled because although TAP may serve more destinations, IB’s business focus and frequency means it has a stronger network, and when you add in the codeshares with American Airlines via oneworld’s MIA hub means it is entirely justified to suggest that IB has an unrivalled South American network.
I post more links supporting what I state than anyone on here, and the doublespeak perpetuated by Saviour_Monk/Bruce98 and whatever previous handles were used as well as his cohorts doesn’t change that.
It’s surprising that someone like Saviour Monk, who joined just a few weeks ago (shortly after the time others departed this board), and who tends to post late in the evenings and very early in the mornings just as the other poster did, and now has around 60 posts (not counting those deleted), a good proportion of which are solely focussed on criticising my posts, and some clearly personal attacks on me and others, is allowed to continue to post here:
—We can add this to the canon of personal attacks and insults, some people never change:
Savior_Monk (now posting as Bruce98) – 09/08/2012 18:09 GMT again attacking VK:
I would not hold your breath.
This poster tends towards bluster, rather than facts.
Savior_Monk – 26/07/2012 16:03 GMT wrote in response to VK:
“you despicable prat”
Savior_Monk – 23/07/2012 11:35 GMT wrote in response to VK:
“Not really, it’s more a question of whether you have sensible judgment or think like a prat.”
Savior_Monk – 15/07/2012 12:02 GMT wrote:
“Gosh, this Vintage Krug is a nice piece of work?”
Savior_Monk – 14/07/2012 04:36 GMT wrote in response to VK:
“What planet are you on pal?”
Savior_Monk – 09/07/2012 07:12 GMT in response to epeek06:
“Idiotic comment above.”
….not a bad rap sheet for just 36 posts, since joining three weeks ago.—
9 Aug 2012
at 20:14
VintageKrugParticipantBeckyBoop – 09/08/2012 16:20 GMT
If you want to get a better idea of who WW his strategy have a look at some of the interviews below…
Willie Walsh, CEO of International Airlines Group, interview at UWE
http://www.youtube.com/watch?v=G9iMCO5TqZI
Willie Walsh talks Leadership
http://www.youtube.com/watch?v=0MFfb7ddDdc
I wonder if he will ever do a TED video?
—
I’m sure it can’t be long before a TED video emerges; he is writing the book on how to revolutionise failing businesses and overcome dysfunctional unions.
Long may that continue.
9 Aug 2012
at 20:16
BucksnetParticipantBA did not need to merge with IB as it had over £1 billion in free cash with which to buy BMI, and could easily have borrowed the £172 million if it had too.
The codeshares with American Airlines via oneworld’s MIA hub is another reason why BA does not need IB. Besides which, if BA bought TAP then TAP would be in oneworld not IB.
9 Aug 2012
at 20:22
BeckyBoopParticipantYou should all read this…. its what WW told city analysts about the company’s plans across a range of issues recently. Might not answer all your questions in great detail but is a summary of how WW see’s things….
http://www.abtn.co.uk/feature/0717680-willie-walsh-bmi-iberia-and-olympics
9 Aug 2012
at 20:59
CallMeIshmaelParticipantI am even more worried for BA. Take a look at the first video posted by those blindly following Walsh.
http://www.youtube.com/watch?v=G9iMCO5TqZI
1min 15 sec in Walsh makes a scary couple of statements from October 2011….
Personally I think the conditions are better than being portrayed by the media”
then
“The portrayal of the global economic environment is so negative it is having a drag on business confidence”
He appears to be asserting that it was the portrayal of the global economic environment that was the problem, not the economic environment itself!
The reality of it is, since Walsh made the cavalier statement around Oct 2011 the situation has deteriorated further!. Spain alone has moved from no bailout needed, to reserving €50 billion, to having €100 billion reserved for its banks.
Assets in IAG’s major shareholder Bankia being overvalued by billions; Exiting the Euro is being discussed..what else is there to be uncovered?CEOs need to be right on the big calls. The economy is a big judgement call, Walsh called it 100% wrong.
If his strategy was based on his economic view, that conditions were better than being portrayed, I worry for BA.
Badly advised, Arrogant, naive, wishful thinking, delusional?
Certainly scary.
9 Aug 2012
at 21:22
BeckyBoopParticipanthttp://www.abtn.co.uk/feature/0717680-willie-walsh-bmi-iberia-and-olympics
Iberia restructuring…
“We always said there would be restructuring within Iberia but now we are committed to further restructuring. The scale and timescale of restructuring is accelerating because of the weakening financial situation and environment in Spain. Iberia’s short and medium-haul did not make money and the long-haul profits are still not sufficient to make up for this. Iberia’s cost base and conditions are out of line with the market. Both short and long-haul need fundamental structural change. We do not have that plan finalised yet – the development of the business plan will continue over the next few weeks and we hope to finish it by the end of September. “
Possible Spanish exit from the euro…
“We have a small team working with external advisors on this. Clearly this is what you would expect any company to do in terms of risk management. The plan is quite detailed and I believe more advanced than most other companies operating in the current environment. We will continue to update the audit committee and board on a regular basis.”
Financial outlook…
“A number of factors have improved in he last three months – BA’s business remains firm and the Bmi integration remains on track. We were previously targeting break-even this year, however in the light of Spain’s macro-economic headwinds we are now forecasting a small operating loss in 2012.”
9 Aug 2012
at 21:33
LeTigreParticipantBy the way, I have long considered the pessimistic media a barrier to economic growth. Is an employer going to recruit more staff when reminded everyday that no-one else is doing so?
I really enjoyed reading the interview Becky posted, it proves my theory that Qantas and BA are plotting against Emirates together, especially when he says BA has been briefed at every stage. Totally giving the game away!
9 Aug 2012
at 21:34
VintageKrugParticipantSssh. Tell no-one…. 😉
I think the Emirates/QF outcome will be good for oneworld, and BA in particular.
9 Aug 2012
at 21:45
CallMeIshmaelParticipantIn Walsh’s leadership video, he asserts he is “Brutally Honest”, he tells it as it is.
Could Walsh show leadership, walk the talk even when pertaining to himself, and be brutally honest by admitting he called the economic situation totally wrong.
Spain…
http://www.bbc.co.uk/news/world-europe-18338616
even China’s growth falls sharply amid slowing demand from export markets “Trade data has come in dramatically below expectations” This isn’t opinion, it is hard data.
http://www.bbc.co.uk/news/business-19204617
it is about time for Walsh to get real and admit that stating
Personally I think the conditions are better than being portrayed by the media
was wrong. Time for some honesty.10 Aug 2012
at 09:08
VintageKrugParticipantI understand from a source (which I won’t name, before you ask me to) that he’s a late-starter “academic”, with some connection to Gatwick/Brighton (that bit wasn’t clear), possibly a member of the Socialist Worker Party or similar anti-capitalist organisation.
His hatred of Walsh is very heartfelt indeed, given the history, but the exact reasons for it shouldn’t really be aired here. They are not “academic” in nature.
The continual bumping of this thread – and other similar threads – by those persuing a personal vendetta is getting dull.
We’ll probably have to wait until his return to the staffroom at around 3.30pm for a response, and his usual pre-weekend pro-Union, anti-Walsh stirring post, timed to co-incide with the BT moderators heading to their country homes for the weekend.
10 Aug 2012
at 09:25
VintageKrugParticipantIAG is the only way BA can ever compete as a serious, global force.
The merger is already delivering tangible savings, more than were anticipated and ahead of schedule.
No-one denies turning around IB will be a challenge, but that is the challenge which the IAG Board and its management have a good plan to address, and while profits in the short term are muted, the longer term outlook is exciting.
Would you prefer BA remained a standalone, UK based carrier in time becoming a relative minnow with no hope of competing agaist the might of the Middle Eastern and European mega-carriers and constrained in its expansion plans by a full-to-capacity Heathrow Hub, eventually to be taken over by one of the larger entities?
The above scenario was simply one of decline and fall, and was a certainty until the Iberia deal came along.
Are you seriously suggesting IAG sells Iberia in the current market? Seriously?
10 Aug 2012
at 11:09
BucksnetParticipantAny savings being made are more than offset by the massive losses IB are making. BA is a profitable stand alone business that can more than earn its way in the world. If it needs to merge with anyone then the merger partner should be someone more suitable, and not the dead weight corpse that is IB.
There are no profits in the short term, and what is this exciting longer term outlook?
IAG does not need to sell IB, and indeed no one will buy it. What needs to happen is a demerger.
10 Aug 2012
at 11:28 -
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