Reply To: WHAT’S HAPPENING TO IAG & BABack to Forum
The reality is that the strategy is suffering. Walsh has admitted very belatedly, that he got the IB merger wrong and it should have been delayed – he chose to ignore the signs obvious to most laymen let alone pundits.
One would have hoped if there had been a delay then the BA shareholders would not have been fleeced as they undoubtedly were.
The Spanish economy goes from bad to worse indicating it will be a long time before there is a positive ROI
It is a great pity BA merged with a corpse, the lost opportunity cost has been huge. Bypassing the corpse and buying Vueling direct would have been the smart play, giving BA a loco partner, based in the only affluent part of Spain, with excellent connections to southern France HS rail. As IB would be in its self imposed death throes Vueling could have picked up the traffic and pace. A great opportunity lost.
Some posters have complained that there is a anti-BA bias yet little is said about BA direct long haul having deserted a large tranche of the country. The strategy of exiting the UK regions has resulted in it becoming more London Airways than British Airways and has opened the door, in the regions for mid-east carriers et al to grab long haul market share previously taken by BA.
Take Manchester Airport for example – it serves nearly 200 foreign destinations with direct flights from Las Vegas to Lahore, Calgary to Cancuun. See if you can find BA operating any!
I hope and expect BA will continue to prosper, however this will be mainly down to its highly privileged/protected position in a constrained Heathrow as opposed to any leadership strategy no matter how poorly executed.
[Edit – the first part of this post was in response to an inaccurate post concerning IAG strategy by VK which on 18/05 was deleted]