British Airways is looking at offering voluntary redundancy to pilots as an alternative to compulsory dismissals and could extend the plan to other workers, the company said in a letter to staff. The unit of IAG is discussing the step with the British Airline Pilots’ Association, according to the communication from its management committee. British Airways aims to cut as many as 12,000 jobs to preserve cash and cope with a slow recovery from the coronavirus pandemic. The carrier warned previously it would dismiss all of its 4,300 pilots and rehire them on new contracts in the absence of a deal to save money, Balpa said Saturday. While talks may be progressing with pilots, the Unite and GMB unions have declined to engage in negotiations, the note said, appealing to workers to seek their participation. BA said it’s burning through 20 million pounds a day even with staff furloughed and operations largely grounded, and that the drain on cash will limit options if agreements can’t be reached soon.<br/>
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Malaysia Airlines’ parent company has not received any commitment from sole owner Khazanah Nasional Bhd for 5b ringgit ($1.18b) in financial aid, the airline said on Thursday. Bloomberg earlier reported that Khazanah, Malaysia’s sovereign wealth fund, was considering providing as much as 5b ringgit for the national carrier to resume operations halted due to the coronavirus pandemic. The Bloomberg report said the cash infusion could happen in the coming weeks, if approved. Malaysia Aviation Group said it had not received any funding commitment to ride out the slump in bookings but Khazanah has been supportive of the group’s efforts to address and cope with the pandemic impact. “As we are currently realigning our Long Term Business Plan to the changing aviation landscape, we are in continuing discussions with Khazanah on the level of support needed moving forward,” it said. The airline group has said previously it was working closely with shareholder Khazanah Nasional for financial support while also taking steps to defend its cash position to sustain business during the coronavirus crisis.<br/>
A group of bondholders of LATAM Airlines Group is in talks to supply up to $1.5b in a debtor-in-possession loan within the Chapter 11 proceeding in the US, two people with knowledge of the matter said Thursday. Bondholders including Blackrock, Australia’s Macquarie Group, HSBC and Chile’s Moneda Asset Management, are informally discussing the issue with investment bank Moelis & Co. The exact value of the DIP loan will be defined during the talks, but it is expected to be within the $1b to $1.5b range, the sources added. LATAM filed for US bankruptcy protection last month, aiming to restructure $18b in debt. It was the world’s largest airline to date to seek an emergency reorganization due to the coronavirus pandemic.<br/>