British Airways owner IAG secures £900m loan from Spanish government – but it can’t be used to help stricken UK airline which is cutting 12,000 jobs amid coronavirus crisis
- International Airlines Group has received a £900m loan from the Spanish govt
- IAG is the parent company of British Airways which is loosing 12,000 jobs
- The Madrid money can only be used on IAG’s Spanish firms Iberia and Vueling
- IAG has not sought a loan from the UK government to secure jobs at BA
- Here’s how to help people impacted by Covid-19
British Airways‘ parent company has signed agreements for £900 million of loans backed by the Spanish government, but the money cannot be used to help its UK airline which is cutting up to 12,000 jobs.
IAG said the money can be used to help its Spanish carriers Iberia and Vueling mitigate the economic impact of the coronavirus pandemic.
There are ‘restrictions on the upstream of cash to the rest of the IAG companies’, the firm added.
International Airlines Group, owner of British Airways, has secured a £900m loan from the Spanish government to secure jobs at Iberia and Vueling. Under the terms of the loan, the cash can only be used on its Spanish airlines
IAG, who are seeking to get rid of 12,000 staff at British Airways has not sought any loans from the British government to reduce the scale of the job loses
IAG has not requested a loan from the UK Government.
It announced this week that up to 12,000 jobs will be lost at BA, representing more than a quarter of the workforce.
On Thursday it emerged that the airline may not resume operations at Gatwick, the UK’s second busiest airport.
In a letter to staff, BA chief executive Alex Cruz wrote: ‘There is no Government bailout standing by for BA.’
Trade union Unite’s national officer for aviation Oliver Richardson said: ‘The fact that Iberia is seeking support from the Spanish government should be welcomed and is a common sense approach to preserving jobs and services, following the immense damage the Covid-19 pandemic is causing to the aviation sector.
‘What is concerning is that the parent company IAG is not seeking a similar solution for British Airways.
‘Rather than seeking to preserve jobs and workers’ terms and conditions, and act for the good of the aviation sector, British Airways is guilty of an act of smash and grab opportunism which is designed to boost their profits in the future and to try to force other operators out of the UK aviation sector.’