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BA owner burning cash, says quarantine plan will make it worse

Video Credit: Reuters Studio
Published on May 11, 2020 - Duration: 01:32s

BA owner burning cash, says quarantine plan will make it worse

British Airways owner IAG has exhausted every avenue to shore up its finances and is burning through cash, its CEO said on Monday, as the aviation industry warned of the fresh damage it would suffer if Britain quarantines international arrivals.

Francis Maguire reports.

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BA owner burning cash, says quarantine plan will make it worse

Airline group IAG is burning through cash and there are few options left to support its finances.

That's what CEO Willie Walsh said on Monday (May 11) to the UK's parliament transport committee.

"This is the greatest crisis we have ever faced.

We've probably exhausted every avenue that I can think of at this stage to shore up our liquidity.

The cash has been reducing significantly, and that will be the case as we go through May, June and July." IAG - which owns British Airways and Vueling among others - warned they may review plans to resume flying in July.

Walsh said that would happen if the British government brings in a quarantine for most people coming into the country by air.

"The announcement yesterday of a 14-day period coming into the UK is... well, it's definitely going to make it worse.

There's nothing positive in anything I heard the Prime Minister say yesterday." Airlines UK - a trade body which represents BA, easyJet and other UK carriers - sounded a similar alarm to Walsh.

They warned quarantine measures would see the industry call for more government support and could destroy any hopes of a quick recovery.

The trade body urged the government to come up with an alternative to its quarantine plan.

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