British Airways set for stormy AGM
British Airways chief executive Willie Walsh can expect a hot reception at the company's AGM tomorrow where unions and employees have planned a number of protests. The record pre-tax loss of £401 million, which was announced last year, could be dwarfed by this year's figure as the company continues to cut costs and retrench the business.
Amid signs of concern within the company it has been revealed that institutional shareholders have been approached about a potential fundraising which could top the £500 million mark. These funds appear to be required to pay down part of the company's debt and put the company itself on a much firmer footing. Even though there have been a number of concessions from various staff on the British Airways payroll, the company still appears set to announce further job cuts and cost reductions in the short to medium term.
There is no doubt that the next few weeks are vital for the future standing of British Airways and while very few believe the company will go under there is no doubt that the sector itself is struggling. If British Airways is in such a mess how are others in the sector, both in the UK and overseas, finding the current environment?
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