BA Cash Boost

British Airways have announced a couple of deals to bolster its cash balance and, as reported in The Times give it enough cash to continue operating until at least the end of 2010 despite heavy losses.

The BA Pension fund trustees have forgone £330m in guarantees – effectively tying up this amount in BA’s credit lines – in exchange, it is reported, for alternative securities later this year to reduce the fund’s growing deficit.

Additionally BA’s institutional investors have weighed up the Risk / Reward and shelled out £350m through a convertible bond.

Will it be enough? Time will tell.