The first major UK airline bailout has taken place, says Gwyn Topham in The Guardian. No-frills carrier easyJet has secured a £600m loan from the Treasury and Bank of England’s emergency coronavirus fund. It has also promised to borrow another £407m from commercial creditors.
Nonetheless, easyJet’s founder Stelios Haji-Ioannou still thinks that it still could run out of cash in the near future, insisting that predictions that large-scale international flights could resume by June are “wildly optimistic”. He thinks that the loan simply “pushes the insolvency boundary back from August to late-autumn, early winter”.
Meanwhile, the battle between Haji-Ioannou and the easyJet board over a £4.5bn contract easyJet has signed with Airbus shows no sign of letting up, says Nikou Asgari in the Financial Times. Although Haji-Ioannou argues that the “long-term viability” of the low-cost airline rests on the Airbus order being cancelled, the board has refused to terminate the contract, arguing that they can change the delivery dates. Haji-Ioannou has now said he wants to oust easyJet’s chief financial officer, Andrew Findlay.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
EasyJet is unlikely to be the only British airline needing state aid, says Oliver Gill in The Daily Telegraph. Virgin Atlantic has been discussing an emergency loan, but agreeing a bailout that “did not leave the British taxpayer at risk” has proven to be “problematic”. Not only has Virgin “struggled with profitability” but its decision to lease rather than own its planes means that there is “little security to put up against a state loan”.
-
Halifax: House price slump continues as prices slide for the sixth consecutive monthUK house prices fell again in September as buyers returned, but the slowdown was not as fast as anticipated, latest Halifax data shows. Where are house prices falling the most?
-
Rents hit a record high - but is the opportunity for buy-to-let investors still strong?UK rent prices have hit a record high with the average hitting over £1,200 a month says Rightmove. Are there still opportunities in buy-to-let?
-
Pension savers turn to gold investmentsInvestors are racing to buy gold to protect their pensions from a stock market correction and high inflation, experts say
-
Where to find the best returns from student accommodationStudent accommodation can be a lucrative investment if you know where to look.
-
Best investing appsLooking for an easy-to-use app to help you start investing, keep track of your portfolio or make trades on the go? We round up the best investing apps
-
The world’s best bargain stocksSearching for bargain stocks with Alec Cutler of the Orbis Global Balanced Fund, who tells Andrew Van Sickle which sectors are being overlooked.
-
Revealed: the cheapest cities to own a home in BritainNew research reveals the cheapest cities to own a home, taking account of mortgage payments, utility bills and council tax
-
UK recession: How to protect your portfolioAs the UK recession is confirmed, we look at ways to protect your wealth.
