Reply To: BA’s strike & JAL bankruptcyBack to Forum
As a regular BA traveller and a BA shareholder, the Union’s position does seem out of date and foolish.
However, I believe a bigger threat to BA is its premium cabin pricing policy. It may have worked years ago, but it is now also out of date and foolish. Why? Yes it is a premium carrier and can charge a premium – but with the quality of the competition today, it seems to think the premium can be substantial – very out of date. Now they will tell you that premium fares have to be HUGE as they offer LARGE discounts to corporates to attract their custom. In today’s air travel market this view is both out of date and foolish. The low cost carriers have shown to grow, be profitable and succeed, you need to price your product competitively to the whole market. Doing so has been shown to grow custom, loyalty and profits. Surpised Willie Walsh has forgotten what he learnt at Aer Lingus… except charging for seat pre-allocation….. As a shareholder, and a traveller, I would ask all of BA to wake up, see the market as it is today, ditch your antiquated yield managment systems and play in the real market – please.