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BA owner IAG to raise $3.3 billion to ride out COVID crisis

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LONDON (Reuters) – British Airways owner IAG (ICAG.L) plans to raise 2.75 billion euros ($3.27 billion) from shareholders to repair the coronavirus-sized hole in its finances and brace for a more chaotic future.

Chief Executive Willie Walsh said the plan, backed by biggest shareholder Qatar Airways, was needed to survive the most severe crisis in aviation history after the group lost more in one quarter than it has ever lost in a year.

“These are really extreme times,” Walsh told the BBC, adding IAG had hoped to be flying at about 50% capacity by July, but was instead at 20%.

“We’re seeing a much slower and more gradual build-up,” he added.

Airlines around the world have been brought to their knees by the halt to flights, forcing tens of thousands of job cuts, in what Walsh said was a crisis much worse for airlines than either 9/11 or the global financial crisis.

“This is worse by any measure, by many times,” he told investors.

Walsh said the proposed fundraising would give IAG, which also owns Iberia and Aer Lingus, a “very comfortable buffer” to withstand its worst-case scenario planning. Travel is not seen recovering to pre-pandemic levels until 2023.

Competitor Air France-KLM (AIRF.PA), which has secured a state-backed rescue to underpin its finances, also said on Friday it was ready to cut capacity plans further due to the anaemic recovery.

IAG on Friday slid to a second-quarter operating loss before exceptional items of 1.365 billion euros.

Goodbody analysts said the results showed how network carriers like IAG – with connecting short-haul and long-haul routes – would find it more difficult to recover than budget carriers such as Ryanair (RYA.I) and easyJet (EZJ.L).

Shares in IAG fell 7% to their lowest since 2012 at 167 pence, and are down 72% this year.

Cash call

The capital increase, which is fully underwritten, is conditional upon shareholder approval on Sept. 8, which Walsh said would be his last day in the job after the postponement of his retirement to steer IAG through the pandemic.

Qatar Airways, which owns 25% of IAG, has proposed adding two directors to IAG’s board after backing the move. Walsh said of the new appointments: “I don’t think it signals anything other than Qatar’s support for our business.”

As well as Walsh being succeeded by Iberia boss Luis Gallego, chairman Antonio Vazquez will be replaced at the beginning of 2021 by Javier Ferran.

Walsh told Irish radio he believed shareholders would be supportive of the capital increase, which will be launched as soon as possible after approval at the meeting.

IAG said the proceeds would not be used to fund the acquisition of Air Europa, the Spanish airline it agreed to buy for 1 billion euros last November, a deal it said it is trying to restructure.

Spanish media have reported that IAG is seeking a reduced price of 500-600 million euros.

Walsh said he was optimistic British Airways would reach a deal with cabin crew trade union Unite over the 12,000 jobs the airline says it needs to cut, explaining that the scale of the downturn should now be clear to the union.

Separately, UK pilots’ union BALPA said late in the evening that British Airways pilots have accepted a jobs deal with reduced pay of about 20% and some compulsory job cuts estimated at around 270.

After months of grounded planes, the tentative return to flying in Europe, needed to salvage the summer season that provides the bulk of airline profits, has been threatened by signs of rising COVID-19 cases and new travel restrictions.

Britain brought in quarantine rules for arrivals from Spain last week and has said it is looking at other countries. The United States and India, two big markets for British Airways, remain subject to quarantine rules.

Reporting and photo: Reuters

Business

BBM brings Vaseline, Hellmann’s, BRU Coffee to Maldives market

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Bestbuy Maldives (BBM) extended their strong and decades old partnership with Unilever International, by adding to their brand portfolio – Vaseline, Hellmann’s, and BRU Coffee for the Maldivian market.

The collaboration was announced at a Business gathering held at the Manhattan Business Hotel, attended by over 300 trade partners from across Maldives.

With this partnership, BBM strengthens its retail offerings across the Maldives archipelago. Vaseline, a trusted name in skincare, and Hellmann’s, known globally for quality food products, will now be available through BBM’s distribution network.

“Vaseline is a name that generations trust for skin care. And Hellmann’s is a global icon in flavours. We’re proud to bring both to shelves across the Maldives and enrich everyday living for our customers,” said Muksith Hussain, Business Head – Retail.

In the hospitality sector, BBM introduces Bru Coffee as an addition to its HORECA (Hotel, Restaurant, Café) offerings. BRU Coffee provides a quality beverage option for hotels, resorts, and restaurants across the Maldives.

“BRU is one of the most loved coffee brands in the region. With this launch, we’re giving our hospitality partners a versatile product that delivers on both taste and reliability that can be consumed as a beverage and for the purpose of dessert preparation, something they can serve with confidence,” said Hisham Girsy, Business Head – HORECA.

The gathering served as a platform for BBM to engage with its valued trade partners and introduce these new brands to the market.

A.V.S Subrahmanyam, Chief Operating Officer at BBM, remarked: “BBM is built on relationships. This event reflects our commitment to not just introduce great products but to support, connect, and elevate our trade partners. We’re in this together, and the journey ahead is promising.”

As BBM continues to grow its portfolio and global partnerships, the focus remains clear delivering excellence, building trust, and shaping the future of trade in the Maldives.

Bestbuy Maldives (BBM) is a leading distribution company in the Maldives, connecting international brands with local businesses across retail and hospitality sectors. With a customer-focused approach and extensive distribution network, BBM continues to be a trusted partner in the Maldivian market.

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Redefining corporate retreats at Cinnamon Dhonveli Maldives

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MICE travel is undergoing a sea change—quite literally. No longer limited to traditional conference rooms and structured schedules, Meetings, Incentives, Conferences, and Events (MICE) are now about creating moments that inspire, rejuvenate, and bring teams closer together. At Cinnamon Dhonveli Maldives, the boundaries between business and leisure blur, offering a setting that transforms work into a pleasure.

Just a 20-minute speedboat ride from Malé, Cinnamon Dhonveli Maldives is the ideal destination for teams looking to escape the expected. Here, brainstorming sessions take place on powder-soft beaches, where the rhythmic waves set the pace for new ideas. Mornings might begin with yoga by the ocean, followed by strategy meetings in open-air pavilions. Afternoons invite collaborative workshops under swaying palms or team-building activities that include snorkelling, paddleboarding, or even a friendly beach volleyball match.

Dining at Cinnamon Dhonveli Maldives elevates every corporate event with fresh, sea-to-table cuisine, designed to fuel both body and mind. From curated group dinners under star-streaked skies to themed private banquets, every meal becomes an experience in itself. For those looking to celebrate milestones or reward top performers, the resort’s scenic locations offer the perfect backdrop for gala evenings or intimate cocktail gatherings.

Accommodation blends comfort with elegance, offering ocean-view suites and beachside retreats that allow participants to rest, recharge, and return with a fresh perspective. Despite the remote charm, connectivity is never an issue—seamless Wi-Fi and business-friendly amenities ensure that productivity doesn’t pause, even in paradise.

Cinnamon Dhonveli Maldives turns corporate travel into something memorable. Whether it’s a leadership retreat, a high-level conference, or an incentive escape, the resort offers a canvas for events that leave lasting impressions. Here, business goals are pursued in harmony with nature, creativity flows effortlessly, and the line between work and well-being fades.

Let your next MICE experience be more than a meeting—make it a journey worth sharing.

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Visit Maldives presents cultural, food festival to celebrate 2025

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Maldives Marketing and Public Relations Corporation (MMPRC/ Visit Maldives) has announced the ‘Maldives Culture and Food Festival’, a two-day extravaganza showcasing the Maldivian cuisine, local arts and craft, and entertainment.

The festival will take place at Central Park, Hulhumale’, on New Year’s Eve, December 31st, 2024, and continue into New Year’s Day, January 1st, 2025, offering a unique and immersive experience for locals and tourists alike.

This exciting initiative by MMPRC is a collaborative effort involving key partners such as the Ministry of Tourism (MOT), Housing Development Corporation (HDC), MyHulhumale’, Business Center Corporation (BCC), Male’ City Council, Waste Management Corporation Limited (WAMCO), the Maldives Police Service, Maldives National Defence Force (MNDF), Public Service Media (PSM), Maldives Airports Company Limited (MACL), Dhiraagu, Ooredoo, Manta Air, Maldivian, Ace Travels, and Gulf Air. It promises a dynamic programme filled with performances, activities, and food stalls. Attendees will have the opportunity to savour authentic Maldivian dishes, explore traditional arts and crafts, and witness captivating cultural performances.

On December 31st, the festivities will begin at 20:00 with doors opening to the public. A spectacular drone show will be held, depicting a tourist’s journey through the beautiful Maldives. The evening will continue with captivating cultural performances including Boduberu performances, and “Dhafi Negun”. A New Year’s Eve countdown will also take place, culminating in a dazzling fireworks display to welcome 2025.

The celebrations will continue on January 1st 2025 from 16:00 to 22:00, with the festival reopening and featuring food and arts and crafts stalls. A range of family-friendly activities will be available, including a police and fire truck showcase, a climbing wall, a bounce house, and a Transformers display. Additionally, the festival will feature energetic Boduberu performances and an exciting Roboman showcase.

“MMPRC is proud to present the first Maldives Culture and Food Festival,” said Ibrahim Shiuree, CEO and MD of MMPRC. “This event is a key initiative to celebrate the achievements of the Maldives in 2024 and to promote the diverse cultural heritage of the Maldives while providing a memorable experience for locals and visitors. We invite everyone to join us in celebrating the Maldivian spirit as we bid farewell to 2024 and welcome the new year.”

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