BA long-haul – where to next & with what? Winter 2015/16+

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Viewing 15 posts - 316 through 330 (of 645 total)

  • AnthonyDunn
    Participant

    @FCTraveller – 06/11/2015 18:51 GMT

    Except that if IAG’s Capital Markets Day 2015 is to be believed, the gap between the Atlantic Joint Business (AA/BA/IB/AY) and *Alliance has reduced from 12.7% to 2.8% since 2011 (see p. 84). Now, a lot of that could have been down to AJB members other than BA but which European economy has been the most buoyant over the past few years, which airline operates the most TATL services and where do those premium pax most probably originate?

    Beyond that, what I found utterly dispiriting upon reading the presentation from cover-to-cover is that (okay, so the clue is in the title…!) the entire focus was on cost savings and synergies. Beyond the possibility of onboard wifi across c.90% of the IAG fleet by 2019, (err, yes and so what…?) there was just about no mention of any benefits and improvements the fare-paying passenger might expect over the 2016-2020 planning period. Period. New aircraft with seat “densification”…? An exercise in assaulting the language first and restricting passenger blood circulation next.

    Just about the only mention that the dear old fare-paying passenger received was in the context of how RASK could be shifted up a few notches with CASK held firmly down. Sure, so this was pitched at City Analysts but even they must be aware that you can have the most optimal accounting systems, the most cost-effective procurement processes, the leanest operating procedures and pay only “at market” wage rates. But without passengers (or their revenues), because they’ve been almost totally ignored, none of these amounts to a can of beans.

    It’s not just their capital assets and staff that IAG’s bean counters are out to sweat, it’s you and me.

    EDITED to add:

    I sincerely hope that things never get this bad:

    https://www.youtube.com/watch?v=GNYKuIN4MxE


    FDOS_UK
    Participant

    I have taken 6 BA flights this year, 3 of them domestic redemptions.

    I don’t plan to fly the airline in the foreseeable future and the content of this capital markets day reinforces that decision, there seems to be an over focus on the financial perspective and an under focus on the customer perspective.

    By way of comparison, I just took an EK Y flight from MAN to DXB yesterday:

    34″ pitch
    Superb IFE
    Excellent F&B
    Nice and efficient cabin crew
    On time departure and early arrival

    Like SimonS1, I wouldn’t go near BA when this level of product is available.


    rferguson
    Participant

    My first thought when I read about the 777’s going back into the hanger to be reconfigured was will this also provide the perfect opportunity for BA to also quietly reconfigure Y to 10 abreast?


    greyhawkgeoff
    Participant

    I agree with rferguson , the 777-200’s will go 10 across in Y. from 2017 onwards. In listening to the capital markets presentation, one heard more detail spoken and that was greater than the written word. I recall that it was neither expressly stated one way nor the other, but we have heard previously that a study was being done for Keith Williams.

    Given BA’s distinct upbeat view on the densification (ouch!) of the Airbus fleet – ‘just 3 or so still os’ and the weight reduction+ increased space/comfort claimed for new slimmer seats it seems a no brainer, especially as the hulls are to have upwards of 10 years left in them now. So at the next major check service – a complete strip down and refurb is distinctly advantageous to the bottom line.

    The question for those of us that use the 777 fleet almost exclusively is whether they will put in the promised new Club seating at the same time. The same arguments apply as for the Y seating, and the payback period suggests it worth doing sooner rather than later eventually, given that the present CW seat and IFE now is anything but class leading or even mid league table. Perhaps the real gain in this is a bigger WTP cabin at the same time, again with upgrade seating to see out the last decade odd of service.

    And AnthontDunn you have to be right, the presentation is about funding and financial results, it was not ever a trade presentation on the benefits and virtues of BA flights.


    MrMichael
    Participant

    An interesting conundrum for IAG, how to satisfy its customers when talking to its investors? Ultimately they cannot, and do not seem to have tried, and good for them. For IAG to increase profits (the only reason it exists) is to cut costs and or increase revenue. Cutting costs is relatively easy in some cases, harder than others. I have read a lot on here on the so called BA cuts to service and facilities, the easy cuts.

    I fly BA/IB regularly, and have seen myself some of these cuts. The loss of cheese and crackers on most inbounds for example. Might only be a 30p, saving, but times that by X million inbound inflight meals and there we see a saving of millions. So while I am sad at the loss of my little bit of rubbery cheddar as a passenger, as a shareholder I enjoy the benefits the saving has bought the company, and that has resulted in my getting a dividend, and thus able to buy more cheese, mature cheddar from Fortnums no less.

    So while I understand people beng disapointed at the loss of some benefits of flying with BA, ultimately remember it is a business and ultimately it has to answer to its shareholders…..not its customers.


    TimFitzgeraldTC
    Participant

    Ah the great capitalist myth, that business must only look to increase its bottom line and the shareholders! No, business has to answer to its stakeholders – the shareholders, the staff and the customers. You can’t have profits if you have no customers, or people to deliver the products of an organisation. Anyway that’s a debate for a pub and pint.


    FDOS_UK
    Participant

    TimFitzgeraldTC – 09/11/2015 22:13 GMT

    +1

    http://balancedscorecard.org/Resources/About-the-Balanced-Scorecard


    sparkyflier
    Participant

    TimFitzgeraldTC – 09/11/2015 22:13 GMT

    +1


    AnthonyDunn
    Participant

    @TimFitzgeraldTC – 09/11/2015 22:13 GMT

    +1

    The essential difference between the Anglo-American model of (right-wing) capitalism and the Rheinische model (of social democratic) capitalism. Now, notwithstanding the problems currently being experienced at LH, which country and which model has delivered the most successful export-oriented economy: Britain or Germany?


    MrMichael
    Participant

    TimFitzgeraldTC, I don’t see the myth about it. A business must serve its customers, increase its customer base and keep the customers it has already got to survive, but not any one of those a any price. It has to find that sweet spot to make a profit whereby the money spent on supplying the product is less than you can sell it for. That in a complex product such as an airline is a constantly changing field of play, them having to compete with the 5 star airlines and the LoCo,s. They are clearly close to the sweet spot as evidenced by increasing pax loads and increasing profits. No business can ignore its customers needs and preferences, it won’t be profitable very long. But if it does not listen to its shareholders it won’t survive for 5 minutes, shareholders own it, and if they don’t like what is happening the CEO goes to be replaced by someone that does concentrate on shareholder value.

    It is strange that in this forum one often sees the like of the ME3 being slated for not listening to individual customers problems when the occur, and that a few less pax will not be noticed. Do people think BA should be different, it flies god how many people every day, long haul and short haul, and a few voting with their feet will not make a great deal of difference. As an IAG shareholder I don’t like to see BA lose a customer, but equally I do not expect the business to make a loss from pampering to a few people who have unrealistic expectations of an airline that does not claim to be 5 star, and has no ambitions to be so. If people choose to vote with their feet…..fine…..BA will get someone else to sit in the seat who will have more realistitic expectations and the seat can turn a profit. However if those numbers voting with their feet become a more significant churn then the sweet spot has been lost and something needs to change to retain the existing customer base and get people back.

    When people get use to paying £X for a b c d e and then find themselves paying the same for a b c d then I understand that is annoying and alternatives to protect value for money should be sought. However the missing e item may not be something many people hold great value to, and the loss of a few pax who that was important to is less in cash terms than the saving of getting rid of it. When BA did away with cheese on inbounds (replaced with nothing at all) some people I am sure were miffed, and some may not fly BA any more due to it, but I bet you a bottom dollar than when deciding it was expected the saving on cheese and crackers was bigger bucks than the pax that would no longer fly BA.

    That is the point I was making, not that pax should be ignored ( nor staff either) but that the bottom line is, and has to be, profit.


    AnthonyDunn
    Participant

    @ MrMichael – 10/11/2015 11:59 GMT

    Now it’s several months since my last BA outing. And you’re telling me that I can no longer expect cheese and biscuits on the return leg of my forthcoming foray back to FCO? I have long since got used to buying my own tucker when flying cattle class so that I had something edible rather than the embarrassing spectacle that is the BA “wrap”.

    With no lounge at FCO (fire burned down the last one) and, from January 2016, there will be no BA Galleries lounge at LGW, just how on earth does BA expect people to buy their CE product when there is just about nothing else to it beyond tier points (and ever devaluing Avios)? But this does deliver better shareholder value…

    Personally, I think that I might choose to deliver better shareholder value to EZY’s shareholders if this carries on. Maybe that’s also why I chose to go with CX to BKK en route to Myanmar rather than with BA. A decreasing amount of hard and soft product value for me translates to lower shareholder value generation for IAG shareholders from me then.


    FCTraveller
    Participant

    Well said @AnthonyDunn.

    In order to create value for the shareholders, you need to give value for money to customers or you will lose them.


    sparkyflier
    Participant

    Also a well-said from me. I have just become a BA Gold member, and have had good flights with them, but I have also tried Qatar and SQ, both of which were terrific and made BA seem rather bucket n spade.

    Their J was arguable better than BA First. I know they have a different “business model”, but all these cuts BA accountants add up to a less desirable and mediocre offering and and I know I will be trying other carriers in the next few months…


    MrMichael
    Participant

    The thing is AnthonyDunn as I was trying to explain is that you do indeed have a choice. As an IAG shareholder I regret that BA is not your first choice, I regret it will not be getting more of your revenue. However pax numbers are increasing, including in business so one has to ask, does BA need to spend more than it does to get that revenue. While loads are high, then no, it does not need to, and as a business it should not. If BA could exceed your expectations for a reasonable sum then it should do so, but if that sum exceeds any likely return then clearly it should not. Predominately on this forum are business people, out there travelling around the globe to maximise the profits for the business they are representing. I doubt many will spend too much more than necessary to retain the business or to get new business, you spend what you NEED to spend, and no more.


    Speedbird189
    Participant

    According to USA Today, British Airways is to send its 787 to Baltimore from August 1st next year. I assume the route will operate with a -8 series, the closest to 767 capacity.

    This eradicates any rumours surrounding the withdrawal of the route.

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