Reply To: WHAT’S HAPPENING TO IAG & BA

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BigDog.
Participant

Thanks for posting this transtraxman.

Interesting information wrt Short Haul/Mid-Haul

…”BA’s decline on short/medium-haul routes was accompanied by the disposal or closure of a number of subsidiary companies in this segment, including Deutsche BA, BA Citi Express and BA Connect. BA also ceased franchise operations with franchisees BMED and GB Airways. It seemed that low-cost competition was persuading it to abandon all but hub feeder routes and a few niche point-to-point routes between key business destinations. Its own experiment with setting up an LCC, Go, ended in a management buy out and subsequent sale to easyJet (the latter also eventually bought BA franchisee GB Airways).”….

…exiting a profitable (for those with good leadership) high growth market is an interesting strategy??

Although IAG paid over the top for Vueling it is good to see Walsh has, all be it extremely late, eventually tuned into profitable short haul business. However given Walsh has been at the helm for 8 years now, yielding Easy, Ryan et al so many years head start, allowing them to become so well established, is reprehensible from a BA shareholder perspective.

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