The Independent posted today that Iberia is losing £1000 per minute (in excess of £525m per year).
I must ask, what were the BA analysts doing when thought Iberia’s finances were good enough to merge the two airlines?
The ironic thing is, IAG net profit/loss is around ~£0. Meaning BA is earning just as much as Iberia’s losing.
If BA hadn’t merged it could boast record profits. Far larger than even the likes of Emirates or United and almost as much as Ryanair & easyJet combined. But I have no sympathy for them, that’s what they get for not doing their research and investing in a company that would have probably bankrupt by now if it wasn’t for the constant bleeding of BA profit.
By: Dazza - 22nd November 2012 at 15:30
The Iberia Report is 2010, as the man said, not 2011………
The link was to highlight the fact that BA have indeed issued an annual report since 2010, contrary to the assertion that they hadn’t in Matt’s post…
Perhaps I should have made that clear…:rolleyes:
-Dazza
By: Doors4 - 22nd November 2012 at 08:33
I would think Walsh, BA and IAG took on Iberia in the belief that they could turn it’s fortunes around, the recently announced restructure being part of this.
By: charliehunt - 21st November 2012 at 14:26
It doesn’t seem as if any of the PIGS’ airlines are doing particularly well at the moment,(
Which is hardly surprising, I suppose…….and presumably the boyant South American economy is not helping TAP and Iberia enough?
By: Matt-100 - 21st November 2012 at 14:20
I wonder how TAP is doing in comparison, as the other flag carrier on the Iberian peninsula ?
I don’t have any exact figures, but I know they’re doing badly too. A few weeks ago it was thought the Portuguese government might not even get 1/2 as much from selling/privatising the airline as was previously expected.
It doesn’t seem as if any of the PIGS’ airlines are doing particularly well at the moment, a shame because I quite like the new Alitalia product (PTVs installed on their short haul A320s!) 🙁
By: charliehunt - 21st November 2012 at 13:24
Really?
http://www.iairgroup.com/phoenix.zhtml?c=240949&p=irol-reportsannual
-Dazza;)
The Iberia Report is 2010, as the man said, not 2011………
By: carl727uk - 21st November 2012 at 12:50
I wonder how TAP is doing in comparison, as the other flag carrier on the Iberian peninsula ?
By: Dazza - 14th November 2012 at 22:40
The fact neither Iberia or BA has posted an annual report since 2010 would also suggest their finances are now tied with IAG.
Really?
http://www.iairgroup.com/phoenix.zhtml?c=240949&p=irol-reportsannual
-Dazza;)
By: Matt-100 - 14th November 2012 at 22:03
Just because they don’t operate under the same brand name (eg. when Delta merged with Northwest) doesn’t mean they haven’t merged.
BA and Iberia have merged but keep separate brand names, just like Air France KLM.
http://news.bbc.co.uk/1/hi/business/8608667.stm
It even says “merger” in the first sentence of the stronger together page of the BA website.
http://www.britishairways.com/travel/british-airways-and-iberia/public/en_gb?cookiesAccepted=newvispop
And can I ask? If BA and Iberia do indeed keep their finances separate, why are all new aircraft orders placed through IAG? I’m of the understanding the profits are pooled into IAG and funds are taken out when necessary (eg. new aircraft purchases). The fact neither Iberia or BA has posted an annual report since 2010 would also suggest their finances are now tied with IAG.
By: Dazza - 14th November 2012 at 21:03
when BA decided to merge.
Its not a merger either, BA and IB operate as seperate companies within IAG…
-Dazza
By: MSR777 - 14th November 2012 at 18:52
Can’t see it myself. I’m told that Willie Walsh is as savvy as MoL, and then some. I’d be very surprised indeed, if he had made this kind of commitment, without knowing all the facts.
By: Matt-100 - 14th November 2012 at 17:13
Well, do you really think the likes of France and Germany would have granted Greece Euro membership had they known Greece was faking its financial figures?
You must wonder if there was imperfect market information about Iberia’s finances when BA decided to merge.
By: Dazza - 14th November 2012 at 16:47
Do you really seriously think BA would have formed IAG with IB on a whim without having first looked in fine detail at the financial side of the deal?:eek:
And another thing IB are not bleeding BA’s profits, IB has no access to BA’s money just as BA has no access to IB’s money…
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November 14, 2012 at 3:10 pm