[WillieWelsh]

I’m glad I already have moved!

[AnthonyDunn]

SimonS1 – 24/04/2015 05:42 GMT

+1

At the risk of sounding like a scratched record (Heaven forbid…), everything is set out in the Capital Markets 2014 presentation which makes clear that it is financial targets and regaining the cherished goal of obtaining an investment grade debt rating that comes first.

http://www.flyertalk.com/forum/british-airways-executive-club/1626856-iag-capital-markets-day-2014-a.html

It is absolutely clear that the finance function rules the roost at IAG/BA with the marketing and customer-facing functions bowing before the bean-counters. What accountants seem never to understand is that you can have the most perfectly developed accounting system in the world but it does not deliver a product or service.

[Stowage222]

Anthony – and so exit stage left Postman Frank!

[PeterCoultas]

This thread (WN4BA) has a missing elephant – comparisons with competitors. For “grockles” travel, recent transatlantics with UA and with SQ from aussi make BA economy look good (transatlantic) and very poor (from aussi). For example UA food from SFO to LHR was an offer of chicken or pasta plus soft drink – the “chicken” turned out to be a half breast with rubber pasta! Wine was available at an approximate mark up of 5x over cost, no available nibbles on the long flight before a microwave basic sandwich just before arrival. BA certainly win here especially as the mileage accrual of 1,495 on flown distance of 11,629 due to changed earn rules at UA.

JohnnyFox points out that long haul food is not that bad on BA economy but I worry that introducing “pay gormet” options will encourage reduced quality “free” options to encourage pay-up. The only advantage of the definitely loco position of UA (and ??? other US carriers) was the low load factor that allowed us to board late and snag much better seats!

Economy flights with SQ were dramatically different. Excellent meal options served by enthusiastic friendly & relaxed crew – no problem with drinks, offers of refills, and suggestions of nibbles available throughout the flight if you felt peckish. Not only that but even a vanity bag with goodies to make the flight more comfortable. Mileage accrual: 100%!

BA will clearly lose travelling to Asia but win transatlantic though I begin to wonder about a cheap asian route to the west coast – EDI – BEI – SEA longer but possibly more comfortable than with a US carrier or even BA?

[AMcWhirter]

PeterCoultas –

SIA’s economy class has always had a good reputation. But I wonder if SIA will still maintain the high standards for its normal economy when premium economy is launched shortly ?

Something will have to change otherwise it will be difficult for SIA to justify the price differnce between the two economy classes.

[PeterCoultas]

AMcWhirter:

I’m sure you are right – the introduction of ‘Premium’ economy or EcoPlus (UA) is a huge money spinner for the sale of seats (at around half business prices) that are about the same comfort level as old economy!

At least flat bed business is a real difference on long haul and there are decent food options but 2-4 inches extra leg room and the same rotten eco food for so called premium seats – how can people be so gullible

[AMcWhirter]

PeterCoultas-

I have written another article on premium economy which will appear in our June issue.

Although the product is expanding it is not necessarily a ” huge money spinner” because it sells well on some route but not on others.

Look at what Cathay Pacific has had to do.

http://www.businesstraveller.com/news/101241/cathay-to-axe-premium-economy-routes

Premium economy varies from route to route, airline to airline, market to market. It can be expensive but airlines do offer deals from time to time.

[FCTraveller]

SimonS1:

I think it will wipe out the benefit because they are making you pay for it and they will do this through higher ticket prices. I don’t think they will introduce new lower Y fares stripped of Tier benefits but instead will introduce probably much higher Y fares with Tier benefits included. So what used to be a benefit of Tier membership will now become something they will allow you to purchase. Same as with HBO fares, they did not introduce lower fares, they just made passengers pay a higher fare for checking a bag. The benefits of Silver and Gold have absolutely no value to me when I’m travelling long haul because I get those benefits offered to me through my class of travel. The value comes when I travel Y short haul. Loyal customers then start looking elsewhere.

[AMcWhirter]

Now that B/Iberia are joining ELFAA (Vueling is already a member) there may well be further changes to the short-haul product in the future.

http://www.businesstraveller.com/news/101603/ba-and-iberia-join-budget-airline-group-elfaa

[WillieWelsh]

I wonder how much more they can cut. Easyjet looks smarter every day.

[sparkyflier]

I became BA Silver again a couple of months ago. In the past couple of years or so, my travels were mainly short haul so I did not accrue so many points.

But while most BA staff are very good, there is so much cost cutting and bean counting it really does impact on my impressions and willingness to choose BA… The extra small investments could make a huge difference, but the accountants simply do not care for these things, but their actions do impact on my demand for their product.

I am now travelling both short and long haul frequently and am looking at other products – indeed on a recent trip in Europe I chose KLM, and really liked it, especially the 3 inches extra leg and knee room!

[MrMichael]

A lot of regulars on here will be aware that I tend to defend BA from the somewhat ridiculous accusation that it is just out to make money. For clarity, I consider that BA making money for shareholders is the sole reason for its existence, taking people from a to b is just how they do it, but is not its reason for being there.

Sparkflyer makes an interesting point about accountants running BA, indeed his point is actually correct in any business. I find it a cyclical thing, 3 or 4 years with an accountant at the helm reigning in costs, followed by 3 or 4 years of a service orientated CX out to increase market share and put the sparkle back in to business. And then it goes round again. I never heard of an accountant that was also a marketeer, the two do not go well together as anyone that has studied Belbin will know.

http://www.belbin.com/rte.asp?id=8

[PeterCoultas]

FCTraveller + 1

[esselle]

Following on from my comments on another thread (lounge disasters), I spent far too long in the F lounge over a couple of days in T5 this week.

The wines on offer went from rubbish, to quite good, to, briefly, really rather nice, to average, to rubbish.

To me, this sums up the whole BA experience; you are never quite sure what to expect.

Just glad my tickets are paid for with other people’s money, as I wouldn’t pay with my own.

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