[SergeantMajor]

canucklad, I fear you are confusing capacity with all-important yield.

As AMcWhirter says, it’s all about yield on the SYD route, though I’d disagree with him about the logic of flying an A380 to SYD; I think it’s this A380 generated overcapacity which made the JSA uneconomical for Qantas, and continues to challenge them structurally as an airline.

More evidence, if any were needed, that BA was right to hold back ordering its A380s. A side effect of this is that BA uses the increased MTOW version.

As you are required to disembark the aircraft in SIN anyway, a plane change has minimal impact on passengers.

The benefits of a stop off in Singapore as opposed to the Middle East are many and various. Though I wouldn’t say this will stop BA trying it in the future…

esselle, I see BA has fares from £4369 rtn in F for March (note there is no fare sale on currently) and most months beyond that are not much more – your data point suggesting BA costs “in the low £9ks” is indeed disingenuous.

http://www.britishairways.com/travel/low-price-finder/public/en_gb

If you suggestion that Singapore Airlines charges in the low £6ks, then BA is cheaper.

[esselle]

Thanks SM for picking up my typo; I meant to say low 8k’s.

Picked random flights, last week in February. SQ is cheaper.

[cityprofessional]

Hmmm, choice between BA and SQ, for the sake of argument in J class…

Well, my personal preference says SQ, but the corporate discount (>£1k) says BA

That’s pretty much decided then 😉

[Jimmywright]

SergeantMajor one point of order, it was BA who delayed their A380 deliveries not Airbus. If you were talking about SQ, QF and EK for example then yes the delays were Airbus delays and in the case of SQ at least the new product due for release with the A380 ended up being seen first on the 777-300ER’s.

http://www.businesstraveller.com/news/ba-delays-a380-deliveries

[canucklad]

Morning SM

To clarify, in my post that you referred to I meant market share.

Again I will admit to you that I’m not an expert on airline phraseology, nor do I claim to be anything but an armchair quarterback when it comes to airline management.

So I’m assuming that “Yield” = ARPU per flight sector

If I’m right I will put forward my assertion that there is a direct link between market share and profitability, hence how airlines have sophisticated formulae to manage their “yield” figure!

In other words, the more masses that fly in “Y” allow the company flexibility, by reducing the profit line on a particular sector.

I’ll term it Asdanomics. ASDA are successful because they rely on heavy footfall, Waitrose also make a profit but they need to be savier, because they rely on a much “narrower” group of loyal customers whose expectations are higher. ASDA can afford a larger degree of churn and still remain profitable, it would take a small bit of churn at Waitrose before they started to lose money.

IMO , BA’s management can’t make up its mind if it wants to be an ASDA or a Waitrose !!

it’s also why I believe business onlymodels and long haul low cost models struggle !!

[Author]

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