BA Says Bankruptcy Suggestion 'Ludicrous'

"This is the most ludicrous request imaginable to resolve our income dearth. It will come as no bombshell to those people living in the genuine world that this is not an decision under consideration," BA said in a receipt.

BA was retorting to remarks from Donald Duval, chief actuary of annuitys adviser Aon Consulting, who said the airline may poverty to go into bankruptcy to restructure, a trail surveyed by numerous US haulers. His remarks were conceded in media news.

"We are one of the most profitable airlines in the world, our half-year working profit was GBPA?437 million (USD$776.3 million)," BA said. "We have almost GBPA?2 billion (USD$3.55 billion) money in the layer. We want to find an acceptable answer to the annuitys shortfall that lockeds annuitys for our personnel and the upcoming of our concern."

The airline has a annuity shortfall of GBPA?1.4 billion (USD$2.49 billion) and Chief Executive Willie Walsh said in an interview in the airline's own newspaper final week that BA "will commence chatting to NAPS (New Airways annuity idea) components in the impending months about our offers to decipher this shortfall, for decipher it we must, once and for all".

The British Air Line Pilots Association (BALPA), which epitomizes most of BA's pilots, said on Thursday that it would ponder attack action depending on BA's schemes.

"BA pilots are position absolutely business on this supply," said BALPA broad desk Jim McAuslan. "They are irate. From what the group says, they could mislay up to 36 percent of their annuity entitlement. This is not acceptable."

BA said it was halfway through a communications crusade meant at telling some 34,500 annuity plot affiliates about the implications of the scarcity.

"It is unprofessional and unhelpful for BALPA to discourse of industrial action at this time when the group has not put frontward any schemes on annuitys yet - neither have we begun correct discussions with BALPA.".

Source: Reuters