Reply To: WHAT’S HAPPENING TO IAG & BA

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BeckyBoop
Participant

BigDog, the reason why BA doesn’t operate point to point World wide destinations from other airports outside of London is because their is very little return. There isn’t sufficient traffic that wants to go to these airports or to these cities to justify that. You might be able to get some services. You are not going to be able to get a regular frequent service to multiple cities. The only way you can do that is through a major international hub airport, where you can supplement the direct demand that exists with transfer traffic.

BA’s long-haul aircraft are typically configured in what they call a “premium rich configuration” as there is large demand for this type of product in London. The demand for premium product outside London is smaller in comparison. The premium market in London is twice the size of Paris. Paris is twice the size of Frankfurt and Amsterdam. It is 10 or 20 times the size of the market in other UK airports. They would have aircraft configured in a way that is extremely inefficient for airports other than the London airports that they fly from. It just wouldn’t make sense for their business.

They could have a dedicated fleet of aircraft configured for these airports, but that adds complexity and cost. If they felt that they could do that and make money doing it, then they would certainly would look at that. But, historically, they have not been able to do that and is not something that fits very well with their business model. There are other airlines that can do it better, typically the LCC and that’s why you see the growth coming from airports outside London.

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