Debt crisis may strike company behind Iberia and British Airways
As the European Central Bank and political leaders fight for the survival of the euro, the parent company behind Spain’s Iberia and British Airways are studying the consequences of the growing turmoil in the debt-ridden countries of southern Europe. According to the Wall Street Journal, IAG has set up a crisis group to prepare a roadmap in case of a Spanish exit from the euro. At the group, which meets every two weeks, members examine how a “SpanExit” will affect the airline business.
One analyst says: “You must have plans ready for any situation, especially in the aviation industry where the surprises are almost queuing up. But it is very early to start preparing for a Spanish exit.”
In an attempt to avoid being hit by a Spanish crisis, IAG has reduced its exposure to Spanish banks over the last six months. The company has also cut its business with banks in crisis-hit countries such as Greece, Ireland, Portugal and Italy.
The Wall Street Journal
[photo courtesy oneworld]