IAG airline Level Europe files for insolvency

Austrian short-haul budget carrier Level Europe plans to file for insolvency, it said on Thursday, becoming the latest airline casualty of the coronavirus crisis despite the financial might of parent IAG <ICAG.L>.

The small airline, previously known as ANISEC, began operating in 2018. It has six Airbus short-haul jets and is part of IAG-owned Vueling Group.

British Airways owner IAG also operates a long-haul airline called Level, which is separate from Level Europe, an IAG spokeswoman said.

Level Europe blamed the COVID-19 pandemic for its move to cease trading, joining a growing list of airline failures after planes across the world were grounded for months during coronavirus lockdowns.

Anglo-Spanish group IAG, which also owns Iberia and Aer Lingus, said in April that it had 10 billion euros (£9 billion) of liquidity, but Chief Executive Willie Walsh has said it is burning through cash as the crisis continues and has warned that British Airways is "fighting for survival".

British Airways has said it needs to axe 12,000 jobs.

While IAG's airlines have used furlough schemes and accessed government-backed loans, they are not in line for government bailouts like European rivals such as Air France-KLM and Lufthansa.

An administrator will be appointed once insolvency proceedings have been filed, Level Europe said in its statement.

Source: Yahoo Finance


30 signs you are financially comfortable

A new study commissioned by Skipton Building Society (SBS) has revealed 30 signs of being financially comfortable, including having savings and being able to go on a last minute holiday without feeling guilty.

The study, which polled 2000 adults, reveals signs of financial comfort include both material factors, such as having disposable income, as well as abstract factors, such as having others consider you wise and a good source of financial advice.

Kris Brewster, the head of products for SBS, said “it is more about making sensible decisions when it comes to spending and saving”, rather than “having a lot” financially.

Worryingly, less than half of those polled said that they were in a good place financially, and of that minority, 56% were over 55. One in four said that they do not know what the future holds for them financially.

Despite these bleak findings, one in seven of those polled said that they believed that they were sensible with money. The average respondent had approximately £228 a month of disposable income. According to the study, however, that is not enough to put you in the category of financial comfort. Instead, the research suggests that disposable income of over £500 a month is needed.

The following are the 30 signs factors which identify the financially comfortable:

  • Having savings
  • Not being in debt
  • Not having to count down the days until payday
  • Not regularly using savings to get through the month
  • Having paid off your mortgage
  • Having a "rainy day" fund
  • Being able to buy what you like without having to worry
  • Being able to afford emergency house maintenance
  • Having more than £500 disposable income a month
  • Being able to afford occasional treats for yourself
  • Budgeting effectively
  • Having a good credit score
  • Being able to eat out in restaurants without it being for a special occasion
  • Making sensible spending choices
  • Being able to go on more than one holiday a year
  • Being confident about the future
  • Being able to go on a last minute holiday without feeling guilty
  • Having the ability to make wise decisions about money and spending
  • Owning more than one property
  • Being able to make financial decisions without seeking advice
  • Not arguing over money with friends and family
  • Not having to check the price of clothes when shopping
  • Having multiple investments
  • Having good knowledge about financial services on the market
  • Not gambling or relying on a successful bet for income
  • Being generous when it comes to lending money to loved ones and donating to charity
  • Paying for others’ meals when out rather than splitting the bill
  • Being well-read when it comes to money management
  • Buying from the leading clothing and food brands
  • Having others approach you for advice about finances as they see you as a source of good advice

While some of the factors - such as having savings or a good credit score - may be unsurprising indicators of being financially comfortable, it is perhaps also unsurprising that so few young people identify as financially comfortable when factors include owning multiple properties or having various investments. For young people, in particular, these are rare luxuries.

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Is Personal Debt getting in the way of your life goals?

Whether it is the application for a mortgage, a new car, the cost of further studies or a business start-up, personal debt can severely impact on your goals and prospects as lenders measure up your application. Strategic financial advice when weighing your lending options against your wider commitments can help you reach your long-term aims faster.

Economic Impact

The impact of personal debt on the economy is manifold, but shapes the terms of your loan and wider economic prognoses of the lenders.

With household debt to GDP anticipated to reach 88.50 % by the end of the third quarter (Trading Economics), additional financial stresses for the winter season may negatively impact the turnover of businesses in the fourth quarter.

While government research notes that ‘growth in total debt is still low compared with pre-recession rates’ (Research Briefing, 2018), nonetheless, debt remains at a high level against historic trends. Highlighting a rise of 8.6% of unsecured debt, consumers require a clear perspective of their liabilities and interest rates, in step with their household income.

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Cost of over-indebtedness

The Money Advice Service (MAS) estimates that 8.3 million people in the UK are over-indebted and that 22% of UK adults have less than £100 in savings, making them highly vulnerable to a financial shock such as job loss or large unexpected bills. The National Audit Office (NAO) also reported that:

  • £18 billion estimated minimum value of personal debt is owed to government, utility companies, landlords and housing associations; and,
  • Approximately 5,000 consumer credit lenders are regulated by the Financial Conduct Authority.

Personal debt can hinder your aspirations for individual, and business ventures, and may even restrict your choice of career. Find out what we can do to put you back on track.

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