[canucklad]

The ambiguous double speak within the BA denial reinforces my original suspicion that the a secret Future Long Haul Proposition team have been NDA’d and have started the process of eventual implementation of LH BOB.
As I’ve said before, IAG and BA’s top decision makers are so linear in their problem solving thinking, it’s inevitable that their response to the threat of Norwegian is simply to replicate as opposed to differentiate.

[Tom Otley]

You may be right.

Everything I’ve heard and understood leads me to the opposite conclusion – that there are no plans for this, but you’re right, the denial has that word “currently” in it – as we’ve made clear in the news piece

British Airways denies long-haul buy-on-board plans

and so there will be the suspicion that things might change sooner rather than later, and that means that plans are currently afoot…

.

[StephenLondon]

These ‘denials’ are exactly the same wording as BoB Euro Traveller, and look what we ended up with? In fact, the moment that BA were denying it, they had a team working on implementing it.

It is interesting that just the one journalist from the Sunday Times seemed to have this story. Did he slide up to Mr. Cruz and get additional details that Tom and others missed out on? I have that funny feeling in my gut that Sr Cruz is less than trustworthy.

For my thinking, it strikes me as odd that BA are keen on attracting the £169 FLL brigade, at the cost of the £999 ones. Surely by making a better product, more people will be willing to pay the difference as they are getting better value, no? Or are we, as consumers, so fickle that we will cheap-out in the end? If not, let those that are extremely price sensitive fly with Norwegian. Keep the ‘premium’ for BA and attract people willing to spend £359, or £449 or £765. We saw this relentless pursuit for low fares in the US, and everyone entered Chapter 11 because of it.

What the bean counters have never seemed to be able to quantify are the number of customers who leave the airline because of the lowering of standards, quality and ‘premium’. They demand to know what the additional revenue will be for adding items into the service (the justification) but can’t figure out what the loss is from disgruntled passengers leaving the airline forever.

I am old enough to remember the days of Laker Airways and his Skytrain, where you had to buy tickets for meals in advance. There was always a drama with someone who ‘lost’ their meal ticket…usually found out when they then claimed to have lost their drink ticket (which didn’t exist IIRC). And look what happened to poor old Laker. Will BA be next?

[FDOS_UK]

StephenLondon

+1 – good analysis.

[Tom Otley]

“It is interesting that just the one journalist from the Sunday Times seemed to have this story. Did he slide up to Mr. Cruz and get additional details that Tom and others missed out on?”

He did an interview one-on-one at the end of the event, and during that asked the question and got the answer.

Given that the whole event was designed to showcase the investments that BA is planning, you can imagine how pleased everyone is (not).

I’ve already said on here several times that I think it’s a non-story – as in, I don’t think it will happen. There are no plans for it I have been told, several times, in the last 24 hours.

But if the CEO said it – even in the form of “may” – then he said it and it becomes a story – one which has easily over shadowed all the publicity about the First Wing, the new lounges, and the changes to Club World.

[FDOS_UK]

Tom, it’s there already

– buy a superior meal
– buy sweets (and tuck boxes removed)

It isn’t a big stretch of the imagination to see that modified to include alcoholic drinks.

Beyond that, when BA’s financials are hit (and it is when, not if, given some key indicators over the the past 12-18 months), desperation could go beyond this (in the Y cabin).

I see BA’s future strategy as being to offer full service in the F/J cabins, something in betwee in W and BoB in Y.

By the way, I have no sympathy for BA in the media promoting this story over the ‘jam tomorrow’ feel good stuff (although I hope you enjoyed your freebie), as they have used their strong brand/Heathrow dominance to make a sustained series of cuts – the media have now realised there is a story in this and are looking for negative spin – BA deserve all they are getting, IMHO. If you don’t protect your brand equity, more fool you ……

And maybe the CEO needs a bit of media training in how to answer loaded questions?

[Tom Otley]

Yes, fair enough.

[canucklad]

I’d agree with your analysis FDOS of being there already, although I’d use the word “almost” to be a bit more accurate.

Without doubt, and possibly excepting the U.S. carriers, in my opinion, BA far exceeds other carriers in their contempt for their Y passengers.

And although I agree with most of Stephen London’s analysis, I’m don’t agree with the point made about competing directly on price with Norwegian. They might advertise minimal matching fares to comply with ASA regs, but that’s where it will end .

But, the track record of other propositions ,notably, HBO and short haul BOB provides enough evidence that their marketing spin about protecting low fares, is exactly that. Spin. There hasn’t been a reduction in fares,quite the opposite in fact.

Finally,to Tom’s point about loaded questions. It’s worth remembering that English is not Snr Cruz’s first language, and when faced with a difficult question, I just wonder if his LCC upbringing came to the fore. Cheekily I’ll add that he was probably stressed at all this talk of premium investment. 🙂

[FDOS_UK]

Canucklad

When I say ‘it’s there already’, I don’t mean full BoB, but partial; BA did drop free tuck boxes for Y pax and introduce paid for sweets, as well as introducing the option of buying meals (to replace the standard free offer), thus my view that now they have done this, the decision to extend could be easier.

https://www.britishairways.com/en-gb/information/food-and-drink/long-haul-economy-dining?clickpage=resp-information–food-and-drink–index&kmtag=c&ban=||DP|3×1|CTA1|||||||||L2|||||||

As to Cruz’s ability to speak English, have you read his resume?

http://mediacentre.britishairways.com/factsheets/details/86/Factsheets-3/26

If you draw a multi million pound package, setup your own interviews, in a controlled environment and then say words that create a media ‘sh!tstorm’, there won’t be much sympathy from me 😉

[Rockdrive]

BA are already trialling a new meal service in Europe Club cabin. It’s not good. Sampled from Lanzarote to Gatwick (26 March). Cabin crew not happy either about new process and quality of food – it was not nice and an example of cost cutting. On this flight the team ran out of drinks in the economy cabin. On a 4 hour route this can’t be pleasant.

In speaking with the cabin manager, the overall feedback was a business not listening to customers or staff; taking decisions at a senior level based on short term financial objectives and asset stripping via IAG to leverage contributions from BA savings in other areas such as the new low cost airline out of Barcelona.

Mr Cruz like his predecessor Mr Williams are focusing on driving down the value chain versus brand differentiation on product service and offer. If passengers want budget there are plenty of carriers. If customers want a premium then allow them to access such a product. They will pay for it.

The only reason BA has not fallen more rapidly is because of the hoards of corporate travellers and frequent flyers desperately hanging on to their avios / miles. It won’t last however.

BA need to fix the broken long haul, increase the quality of the food on-board, re-engage the crew, and properly listen to the customers. It feels like a business saving it’s way to plan. And that never ends well.

[CathayLoyalist2]

I have yet to find a company that has saved its way to prosperity. On the past two occasions when I have flown BA long haul I have asked the CSD’s whether, at any time, they the cabin crew have been consulted about cabin layout to make both their lives easier and the customers journey more enjoyable/comfortable. In both cases they were long term, or should I say long sufferers BA employees and the answer was a resounding ‘no’. Interesting article in the Harvard Business Review about companies that survive and flourish during a downturn. They are not the ones that ‘slash and burn’ rather those that continue to invest selectively and drive operational efficiencies. Poor leaders generally know “the price of everything and the value of nothing” and all that does is incubate a culture of “couldn’t care less”.

[Tom Otley]

Was it this article?

Rethinking Some Assumptions About Global Business

[CathayLoyalist2]

Tom , it was another article that at the time was comparing the last three recessions at looked at the companies that had fared best. The conclusions were selective investments and operational efficiencies. I’ll try and find it albeit it might a few years old , that said the message is still more than relevant. Interesting the comment in the article you highlighted from Jeffrey Immelt. I had the pleasure of speaking with him when he was in Singapore, again a few years back, and asked him what he needed to do to raise his own performance bar. His reply “I need to talk and engage with people I normally do not talk to or engage with”. Rather apt I thought, something Snr.Cruz and other supposed leaders should take on board.

[Tom Otley]

Interesting discussion here on Skift
British Airways and the Problem of Fees, Frills and Perspective

[CathayLoyalist2]

Interesting article and it re-emphasizes, in my opinion, that the leadership at BA is at “sixes and sevens” and more pertinently a disjointed vision let alone purpose. By way of comparison if you look at Mercedes say 15 years ago their models, then fewer in number sat exclusively towards the upper end of the market. Fast Forward to 2017 and they have successfully over the past few years expanded the range of cars tapping into lower price segments with less features but maintaining/keeping the brand image and integrity. Maybe BA could learn a lesson or two!

[Author]

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