British Airways raises $750 million by mortgaging 48 aircraft
Links on Head for Points may support the site by paying a commission. See here for all partner links.
British Airways has raised a further $750 million to shore up its finances by mortgaging 48 aircraft.
The deal was arranged by Citi – the security documentation is here. It is a legal requirement to notify Companies House when additional security is given against the assets of a business, as this has an impact on both shareholders and potential and existing lenders.
If you have made an unsecured loan to British Airways plc, for example, you are now relying on a smaller pool of assets to repay you if the company goes into receivership.
Schedule 1 towards the back shows the assets involved:
2 x Airbus A318 (built 2009)
4 x Airbus A319 (built 2001)
24 x Airbus A320 (built 2001-2010)
10 x Airbus A321 (built 2004-2009)
7 x Boeing 777 (built 2000-2014)
1 x Boeing 787 (built 2016)
There are clearly a few dogs here, as there is little residual value in 20 year old short-haul aircraft.
The bulk of the $750 million, in reality, comes from the Boeing 787-9 and the two 2014 Boeing 777-300ER aircraft included in the package.
One quirk is the two Airbus A318 aircraft. These are the aircraft bought to operate the London City Airport to New York JFK service.
Only one of the two aircraft is currently being used by British Airways. The second plane was taken over by Titan Airways when BA cut the London City service down to one flight per day – you can see it here landing in St Helena last month. There was an assumption that British Airways had sold the aircraft to Titan but it is clearly only leased.
Why did British Airways do this?
It is sensible that British Airways is doing what it can at the moment to sustain its cash pile.
However, cynics may suggest that the airline is doing everything it can to avoid having to take Government funding. Whilst Iberia and Vueling have taken €1 billion from the Spanish Government, and IAG – BA’s parent company – has taken £300 million from the UK Government – British Airways itself has taken nothing.
The cost of servicing this mortgage is almost certainly higher than the cost of servicing a ‘soft’ loan from the UK Government especially as 48 old aircraft are not the most attractive security package in the current environment.
It is possible that British Airways is trying to avoid taking Government funding until it has pushed through the proposed pay cuts, weakened contractual terms and mass redundancies which are currently under consultation.
PS. If you are reading this but are not a regular Head for Points visitor, please consider signing up for our FREE weekly or daily newsletters. They are full of the latest Avios, airline, hotel and credit card points news and deals to improve how you travel. To sign up, visit this page of the site or click any of the ‘Subscribe’ links on this page. Thank you.
How to earn Avios from UK credit cards (January 2025)
As a reminder, there are various ways of earning Avios points from UK credit cards. Many cards also have generous sign-up bonuses!
In February 2022, Barclaycard launched two exciting new Barclaycard Avios Mastercard cards with a bonus of up to 25,000 Avios. You can apply here.
You qualify for the bonus on these cards even if you have a British Airways American Express card:
Barclaycard Avios Plus Mastercard
Get 25,000 Avios for signing up and an upgrade voucher at £10,000 Read our full review
Barclaycard Avios Mastercard
Get 5,000 Avios for signing up and an upgrade voucher at £20,000 Read our full review
There are two official British Airways American Express cards with attractive sign-up bonuses:
British Airways American Express Premium Plus
30,000 Avios and the famous annual 2-4-1 voucher Read our full review
British Airways American Express
5,000 Avios for signing up and an Economy 2-4-1 voucher for spending £15,000 Read our full review
You can also get generous sign-up bonuses by applying for American Express cards which earn Membership Rewards points. These points convert at 1:1 into Avios.
American Express Preferred Rewards Gold
Your best beginner’s card – 20,000 points, FREE for a year & four airport lounge passes Read our full review
The Platinum Card from American Express
50,000 bonus points and great travel benefits – for a large fee Read our full review
Run your own business?
We recommend Capital on Tap for limited companies. You earn 1 Avios per £1 which is impressive for a Visa card, along with a sign-up bonus worth 10,500 Avios.
Capital on Tap Business Rewards Visa
10,500 points (=10,500 Avios) and NO FX fees Read our full review
Capital on Tap Pro Visa
10,500 points (=10,500 Avios) plus good benefits Read our full review
There is also a British Airways American Express card for small businesses:
British Airways American Express Accelerating Business
30,000 Avios sign-up bonus – plus annual bonuses of up to 30,000 Avios Read our full review
There are also generous bonuses on the two American Express Business cards, with the points converting at 1:1 into Avios. These cards are open to sole traders as well as limited companies.
American Express Business Platinum
50,000 points when you sign-up and an annual £200 Amex Travel credit Read our full review
American Express Business Gold
20,000 points sign-up bonus and FREE for a year Read our full review
Click here to read our detailed summary of all UK credit cards which earn Avios. This includes both personal and small business cards.
Paul stuart 
Drake 
mr_jetlag 
J 
ChrisBCN 
Lady London 
Dubios 
AndyGWP 
Andrew 
Rob 
Alex M 
Comments (53)