Alphavalue/Divacons | British Airways pilots are set to vote next week on a 79-page pay deal described as ‘kamikaze’, putting the airline on the brink of a strike.
Despite the tension, British Airways has the upper hand in the negotiations: its debt and pension liabilities are much lower than those of Deutsche Lufthansa (reduce, Target Price €7.4/share), giving it the financial leeway to concede on wages or weather the impact of the strikes.
Furthermore, the strength of the BALPA union is significantly diluted, as less than half of the pilots are eligible to vote, leaving control of the situation in the hands of management.
IAG: Reduce, Target Price €4.93/share.
