Reply To: BA Seating

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Good morning,

Let’s first address the question of pooling resources and assets between American Airlines and BA. A few years back, BA along with IB and AA received approval for a Joint Venture on the North Atlantic business. Wikipedia defines a JV as:

“A joint venture (JV) is a business agreement in which the parties agree to develop, for a finite time, a new entity and new assets by contributing equity. They exercise control over the enterprise and consequently share revenues, expenses and assets. There are other types of companies such as JV limited by guarantee, joint ventures limited by guarantee with partners holding shares.”

So we can assume that BA and AA share revenue and cost on each-others’ North American flights including domestic/European feeder flights on this side of the Atlantic, and domestic/Canadian/Caribbean flight across the pond.

I am neither a big fan nor do I find the current BA offering in CW and F to be dreadful. From my home market, I find good price/performance ratio with BA for what I pay for my tickets to North America and Asia. I rarely spend more than equivalent of £2,000 on a Club/Business ticket to anywhere I go (Australia and NZ is not on my list yet) and can use Avios to upgrade to First for a reasonable price.

I suspect that BA can continue to milk their substantial corporate market in Greater London for another couple of years with the current offering.

I have a dear friend just about to adventure out on 3 segments on the new AA B77W, I’ll try to get some feedback from him.

Lastly, my personal view is to keep some “regionalisation” in mind when looking at competition. From my point of view, I tend to compare BA’s offer with the LH Group and AF/KLM. In this respect, I find the BA F offer a poor cousin, but CW stand out compared to AF/KLM and the mother-ship Lufthansa German Airlines. I can’t understand the poor planning in Cologne when it comes to their Business Class offer. The First Class is second to none, but Business is poor specially when compared to the stars of their own group: Austrian and Swiss. I think it is slightly misleading to compare BA to CX or even SQ as they are not BA’s main competitors. Both the AF/KLM group and LH Group come out poorly in comparison as well with CX and SQ with the notable exception of LH/LX and AF First.

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