FlyerTalk Forums - View Single Post - Another threat by IAG to pull out of airport LCY this time
Thread: Another threat by IAG to pull out of airport LCY this time
View Single Post
Old Feb 3, 2016 | 2:16 pm
  #10  
crazy8534
50 Countries Visited
Community Builder
All eyes on you!
10 Years on Site
 
Join Date: Jun 2013
Location: UK, TX, UAE
Programs: BA GGL, FB Ult, BA Amex Prem, Amex Plat, Hilton Diamond, Mucci
Posts: 6,419
Originally Posted by corporate-wage-slave
This got second billing in the printed FT UK editions today, lower front page.

I think there is a point here. BA has 40% of LCY's passengers. The current owners are trying to sell LCY for £2bn, which is over a 40 times multiple of earnings (EBITDA basis). Now someone forking out £2bn for LCY will have many other places to get a 20 or even 15 times multiple, so it doesn't make sense for anyone to buy LCY at that price unless they can double earnings - ypu may as well toddle down the post office and invest your cash there. And doubling passenger numbers from LCY seems unlikely in the extreme.

So what WW is doing is effectively adding a FUD factor to potential buyers.
Precisely- and IMHO what he is doing is a favour for all of us, BA customers or otherwise, who use LCY as you can guarantee that if they double their charges the airlines won't be absorbing the costs.
crazy8534 is offline  
Reply