Reply To: BA long-haul – where to next & with what? Winter 2015/16+Back to Forum
@MrMichael, I think this is a typical beancounter view, we’re making money, passengers are increasing, so we don’t really need to spend more? This may be an extreme example but let’s not forget Blackberry. The writing was on the wall for a number of years that iOS and Android were serious competitors and indeed they continued to increase market share and profits for some time. But eventually the penny dropped with the customers and they lost their dominant position almost overnight. In the airline industry, passengers’ horizons are quite short, anyone travelling on a premium fare can switch to another, better carrier right up to the last minute. The airlines cannot react quickly, their horizon is over many years. BA is now running with an old outdated product in CW and they are far surpassed by many other airlines. For example, to name but one, AA’s business class product is far superior to BA’s. In the rest of the world, they are bettered by many other airlines in J and F. There is still no sign of a new CW product and even if they unveiled one today, it will be years before it’s rolled out. You may be able to improve on the nuts and cheese relatively quickly but it takes years to install things like new seats and WIFI, the stuff that really counts. So it may be good times for the bean counters at BA at the moment but the worry for shareholders is that they are not in a position to compete effectively and the risk is that they start losing premium passengers in droves without the means to get them back.