Qatar is coming to the rescue of BA and Iberia

Qatar Airways has promised to pump hundreds of millions of dollars into BA and Iberia as they fight to survive the coronavirus pandemic. International Airlines Group (ICAGY), which owns both European carriers said Friday that it plans to raise as much as E2.75b from shareholders, including Qatar's state-owned airline, to help weather the deepest crisis in aviation history.<br/>The company plans to use the money to pay down debt and increase the amount of cash it holds, as it prepares for several years of depressed demand.<br/>The aviation industry has been decimated by the pandemic and IAG does not expect global passenger demand to return to 2019 levels before at least 2023. British Airways has already announced plans to cut up to 12,000 jobs, more than a quarter of its workforce, and is retiring its entire fleet of Boeing 747s four years ahead of schedule. "Our industry is facing an unprecedented crisis and the outlook remains uncertain," CEO Willie Walsh said. "However, we strongly believe that now is the time to look to the future and strengthen IAG's financial and strategic position," he added. Qatar Airways is the group's largest shareholder with a 25.1% stake. IAG said Qatar would support the capital increase, implying it will provide nearly E688m in new funds. "Qatar Airways ... has confirmed its support for the proposed capital increase and irrevocably undertaken to subscribe for its pro rata entitlement," IAG said. Qatar is seeking two seats on the board. Shareholders will vote on the appointments and the capital increase in September.<br/>