Monday, 22 June 2009
British Airways
British Airways are the next big business to go cap in hand to the government for a bailout, In America the car industry was given a lifeline by the taxpayers because it was felt it "could not be allowed to fail" now it looks like the airline industry in this country will be looking for the same. I don't want to see BA go to the wall, nor do I think they should be helped either, if the business is sustainable let the banks finance the deal. if our flagship Airline is allowed to crash (no pun intended) it may in the long term help the Country, business's are getting complacent because they know the taxpayer will be their to dig them out of a hole. If the airline did go under there are enough carriers still out there to take up the slack, all routes would be picked up the passenger would hardly feel the difference, after all when I get on a plane I just want to get to my destination I don't particularly care who's name is printed on the side of the plane, Sir Richard Branson is already circling ready to pick the bones, that's what free enterprise is. lets get back to basics in business, you find a product market it and sell it, if its value people buy, if its not they dont, simple isn't it. British Airways is not even an attractive proposition for a takeover thanks to the massive hole in their pension fund estimated at around three billion pounds, with a market capitalisation of only 1.57 billion, you do the math's.
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