LONDON, June 21 — Sir Richard Branson has rubbed salt in British Airways’ wounds by declaring BA practically worthless, and urging the government to resist any attempts to bail it out.
Branson’s comments will incense BA management, which this week will hold vital talks with cabin crew and ground staff over pay cuts, lay-offs and changes to working conditions aimed at saving £100 million (RM570 million) a year.
Willie Walsh, chief executive, who is trying to stem big losses and has warned that BA faces a “fight for survival”, wants a deal by June 30.
Branson, who founded Virgin Atlantic, BA’s biggest commercial rival, said ministers should not be tempted to step in. “It would not be in Britain’s interest,” he said.
“We and others are standing by ready to take on their routes and runway slots at Heathrow if they get into serious trouble. I thought the US government’s bail-out of the car companies was a bad idea and it’s the same for BA.”
Virgin had looked at a bid for BA, Branson said, but concluded that the company’s liabilities — in particular its pension deficit — were too great.
“It’s not worth much anymore because of the liabilities. We were thinking about if the shares went under 100p (they closed on Friday at 136½p), but it would be better to wait for its demise,” he said.
Yesterday a BA spokesman said: “This is fantasy. There are no talks with government, and there will be no talks. We have opposed state aid and our position has not changed.”
The fraught relationship between the airlines has worsened. Keith Williams, BA’s finance director, recently questioned Virgin’s claims of a profit, saying its figures went into “Virgin accounting territory”.
It emerged this weekend that Walsh has snubbed a request to give evidence to the House of Commons transport committee on July 1 — the day after the deadline for the union talks. MPs are preparing a report on the future of aviation.
“Given the extremely wide ranging nature of the subject of investigation — which goes far beyond BA — he has reluctantly declined,” an airline spokesman said. — The Sunday Times
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KTMB has an arrogant but incompetent management team who has lost touch with the real business world. It also has an arrogant and pampered workers union and an officers association that resist change and wants to dictate how the railway should be run and who runs the railways. The management and union are the biggest stumbling block for progress in the Malayan Railways and of course the interference of politicians had also put KTMB into what it is now.
Racist policies, even though it might not be officially stated, had also contributed greatly to the downfall of KTMB. If KTMB wants to survive it should look for professionals who can work rather then fill up vacancies with Malays only even though they might not have any management experience and who have served many incompetent years.
The government should not waste any more effort or resources to maintain KTMB and let KTMB go bust and the workers go unemployed if the management and unions cannot get together to save KTMB by being more productive, less demanding and to live within what it earns.
There is no reason to waste good money on KTMB if KTMB itself does not want change.