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The British Airways giant, owned by the Spanish-British International Airlines Group (IAG), warns in a letter to its employees that they are considering leaving operations in Gatwick, the BBC writes.
The company has suspended all activity at the airport since early April, due to the corona virus and the strict travel restrictions that have been introduced.
“As you know, we have suspended flights to and from Gatwick since early April. It is not certain when or if this business will resume,” British Airways management writes to its staff.
The letter says that a quarter of the 4,300 pilots may lose their jobs. On Tuesday British Airways announced that they must cut 12,000 of the airline’s 42,000 employees.
An important part of Norwegian
The airline’s announcement comes at the same time that the Norwegian competitor is in intense negotiations with bondholders. More than twelve hours after the deadline for negotiations between Norwegian and the bondholders, no updates have yet been made on Friday morning.
The airline gave lenders a deadline Thursday night to say yes to the rescue plan. Without a settlement, the risk of bankruptcy increases. One problem for several bondholders is that the value of the mortgage is highly uncertain due to the crown crisis.
Since last fall, bondholders in two of Norway’s bond loans have had take-off and landing rights (slots) at Gatwick airport as collateral. In a Norwegian investor presentation last fall, he says a third party on Norwegian’s behalf has valued the rights at $ 380 million (NOK 3.9 billion at the current dollar exchange rate).
Slot machines have been used as collateral in bond loans denominated NAS07 and NAS08 totaling NOK 3.3 billion at the end of 2019.
It will affect the demand
It is not clear which rights are valued to this day. This time Norwegian has hired a new third party, Seabury Capital Group in New York, to assess the mortgage in connection with the ongoing restructuring. This calculation is an important part of discussions with bondholders.
It’s unclear what British Airways’ message on Thursday will have to say about the value of the promise to Norwegian bondholders, but it is clear that the demand for slots in Gatwick will be significantly affected if British Airways decides to leave the flights there. in the future.
Norwegian has not answered questions about the progress of talks with creditors in the past 24 hours.
“As soon as we have something new to say, a message will be sent through the Oslo Stock Exchange,” Norwegian Chief Information Officer Lasse Sandaker-Nielsen wrote in a text message before 08:00 on Friday morning.(Terms)Copyright Dagens Næringsliv AS and / or our suppliers. We want you to share our cases using a link, which links directly to our pages. Copying or any other use of all or part of the content may only be made with written permission or as permitted by law. For more terms see here.
