[Scandinavian]

BA dropped the World’s favourite tagline a number of years ago. They are no longer the carrier carrying most international passengers anymore. Ryanair, Easyjet and Lufthansa are definitely ahead nowadays. Maybe even Emirates too. Ryanair carried 8M passengers alone in August. 7.5M of them were probably “international”. BA on the other hand probably carried closer to 3M passengers.

BA hasn’t been able to expand too much at Heathrow plus they have stopped all international flights from the UK regions and reduced international services at Gatwick. This has significantly reduced their number of international passengers! In 2010 BA carried 32M passengers compared to 40M in 2002. However, profitability is not ensured just by the number of passengers carried.

BA’s must recent tagline was upgrade to British Airways (I think):

http://www.upgradetobritishairways.ba.com/

[VintageKrug]

Indeed, focussing on profitability rather than the massive losses endured by the unionised and State run carrier of old is the way for BA to succeed in future.

BA is very different from the State run carrier of old, and while previously it was in the enviable position of having a monopoly on most routes, this is not the case any longer as the new breed of carriers move in, many of which happen to have former BA/BOAC people at the helm.

It’s right that this should be the case as BA could never satisfy the demand for air travel in the modern era; other carriers will of course continue to exceed the number of passengers carried. This isn’t an issue for BA, as margin and profitability are more important these days.

BA has reduced (marginally) the number of passengers carried while increasing its focus on premium passengers (you only have to look at the 777 seatmap to realise how few economy passengers BA carries) there’s only twelve full rows of economy on a four class bird:

http://www.seatguru.com/airlines/British_Airways/British_Airways_Boeing_777-200.php

Competing with Ryanair on number of passengers carried is a mug’s game.

Profitability is where it’s at now, and the new advertising campaign being launched by BA later this month will assert the brand in a way which hasn’t been possible until now.

Now the shackles of recent history have been thrown off, there’s a bright future at BA, re-asserting itself as a premium carrier in the premier league; it’ll take a few years to get there, but with a new fleet, new cabin crew and management able to direct standards on board without Union interference, the opportunities are considerable.

[Tete_de_cuvee]

What is propaganda?

a) A male goose with good etiquette.
or
b) The majority of Vintage Krug’s posts.

[DisgustedofSwieqi]

Tete

I agree.

Also, I don’t see why I should overpay today, for jam tomorrow, when I can pay a reasonable price and have jam today.

[Scandinavian]

eh? Tete and Disgusted –

If you can’t come with something constructive, then don’t bother posting anything. It’s tiresome.

VK’s answer is pretty spot on in this case.

[DisgustedofSwieqi]

Scandinavian

Why don’t you take your own advice?

I just love it when one posts a realistic post (I can buy better value than BA) and someone takes offence.

BA has no given right to my business, despite what some posters may think.

[LPPSKrisflyer]

IIRC BA branded itself ‘the world’s favourite airline’ after privatisation and it was at the time of the Landor livery when Lord King was chairman so not associated with it being a state run carrier.

Lufthansa, using the same measure of international passengers carried then did use the title for a while (‘the world has a new favourite airline’ so very tongue in cheek) but now it really is worthless publicity up against the likes of Ryanair as no sensible full service airline would wish to compete against them on any front.

BA have a long way to go to be up there with the best, I have my doubts about whether it will be achieved as I think the problem is much deeper rooted than anything to do with cabin crew or unions or similar. There seems to be pretty poor staff morale across the board among operational staff which I think is the result of some very poor management practices and entrenched attitudes at Waterside. To change BA there needs to be a change from the top which there now has been but also a significant clear out at Waterside of old attitudes. It’s about a lot more than tweaking the food service only to cut it again when the cost of oil rises a cent a barrell.

When that happens, there may be hope.

[VintageKrug]

I would challenge the assertion that morale is especially low; it has certinly improved since earlier in the year based on my recent (admittedly anecdotal) experience. At check-in, at the lounges, at the gate and on board my recent experiences was one of a positive, happier and engaged workforce.

Indeed I have noticed a significant change from my flights in Q2 where there were definite signs of customer-facing weariness.

How this is manifested within other areas of the operation, I couldn’t comment on.

We have to remind ourselves that until just twelve weeks ago, BASSA was holding the airline to ransom and had taken out of play ten of millions of pounds of potential product investment – the very investment which was allegedly causing the low morale.

Every company needs a change of approach from time to time; I happen to think that Willie Walsh did EXACTLY the right things to address structural issues. It’s also good to see him move on to higher things; the general isn’t always the b est man to win the peace, as was proven in Churchill’s electoral defeat after the War.

Now that management are once again (if they ever were) free to actually manage BA and its employees, focus should rightly shift back onto them and their ability to manage. And inevitably as the landscape of management has changed, so some of the individuals who worked effectively within the old landscape may need to be replaced by those with a new approach.

I don’t think that criticises their actions in the past, just recognises that what worked before (when BASSA had a stranglehold on the operation) won’t work in the future.

So I also welcome change, and the new brooms of people like Frank van der Post, who has some very exciting plans for us customers.I would also revise my statement about BA being at the very top of premium service; I don’t actually think that’s the right level these days. BA needs to be consistent, and a little better than satisfactory, with the occasional ability to delight.

We should also remember it takes years to turn around an organisation, so change won’t be instant, but it’s clear that tangible change is already happening and the pace will accelerate in the coming months with the excellent new “heritage” campaign beginning to draw a line under the recent past, and once again looking forward to a brighter future.

[First-Pax]

Your name says it all VK. Some of us remember the days when it was Vintage Veuve Cliquot in Club and Krug in First. – with far superior catering and delivery.

Now that all the internal squabbling is over (for now at least) can BA please get back to what is important in any service industry – and that’s giving the customer what they pay for.

Actions speak louder than words !

[VintageKrug]

I think you’re right, First-Pax.

But there’s a huge amount of investment happening at BA. New http://www.ba.com/first cabin, new aircraft (shorthaul A320s, Embraers delivered longhaul 777-300ERs being delivered 787 and A380s (subject to manufacturer) coming along from next year, the Height Cuisine programme, BAEC rejig, global lounge refresh, retraining for cabin crew and of course the new champagne in First and Club World.

So as fares harden, so the quality of the product is improving across the board.

[First-Pax]

Looking forward to it , VK – looking forward..

[MartynSinclair]

I dont have access to the numbers but the answer may be found by comparing costs, from bygone days to today.

First Pax recalls the “bygone days” where Vintage pop & service in general was far superior, presumably on BA.

I wonder what the price of a business/first was then and index that price forward to today.

There is more pressure on budgets today becasue pax have a far wider choice, resulting in suppliers trying to drive costs down. Unless you get an Orient Express or a Silversea’s (the cruise line for those not familiar) style service where price is secondary to service, Business and First SERVICE not SEAT offerings are not going to be comparable to bygone days. Its simply not affordable for the airlines at the business and first sale prices 2011.

Perhaps in the future Airlines will offer pax the choice of an economy class seat with fine dining and a to executive passengers a large bed to sleep, with economy style food, simply because, those that want to sleep, may not require a gourmet meal and those that cant sleep, may use the gourmet meal to while the time away along with a decent IFE.

Times, habit, costs and benefits are continually evolving.

Have a nice weekend wherever you are (hopefully not stuck on the M1!!).

[First-Pax]

With respect Martyn, First Class should be what the phrase implies – the very best.

I am not quibbling about cost (and I don’t when I travel on Silversea or Seabourn) – I just want the best and am prepared to pay for it. Surely BA can achieve this in the same way that Singapore, Emirates and others manage to?

We are entiltled to expect the higest standards in 5* restaurants & hotels and that should also apply to the premium cabin on the UK’s No 1 airline if they truly want to live up to the title ‘World’s favorite’.

[MartynSinclair]

Agreed First-Pax, but the service can only be provided if the income and profit is being generated.

I do not believe, but can not support this statement with hard facts or references, that sufficient income is being generated to enable the kinds of service you seek to be offered.

What I do know is that the price of a front end travel is being reduced and CLEARLY, there are many upgrades (free) occupying FIrst and Business class seats, thereby reducing airlines income. As competition increases, it drives prices down and in turn service and benefits reduce.

I believe the exception is in Singapore Suites where their policy is among the strictest, even banning reward tickets.

Silversea/Seabourne are pure luxury, but passengers generally pay full price (yes some discounts exisit, but not many) so the products make revenue and create profit.

When I can get a 40% discount on a business class ticket to BKK by starting in Milan instead of London, there has to be something very wrong in the pricing structure.

Go to a Michelin star restautrent, pay Michellin star prices, fly First or Business, look for the discounts, the FULL benefits and service one should expect are understandbly not there.

[VintageKrug]

One should consider that it costs BA 60% less (not fewer!) to crew a Mixed Fleet flight.

That 60% saved can be plowed right back into the customer experience, without increasing costs.

I actually don’t buy the “BA is expensive” mantra; for premium leisure advanced fares (where price is most sensitive) BA premium cabins can be had for a bargain, especially in the current sale or using the 10% shareholder discount.

For exEurope, it’s also highly competitive.

For direct service, particularly short notice, you pay a premium exUK and are also hit with ridiculous APD for which we have Mr Brown to blame.

But the hard product remains competitive and/or market leading on most routes, and with new F and new WT+ and WT continues to evolve.

While I think there are a lot more people actually paying for F than MS thinks, it is absolutely true that in recent years the premium cabins have been more easy to upgrade to and as a consequence as revenue has declined, so has the on board product. But as prices harden, and more people purchase the product, there is revenue to invest into the product, and there is no doubt that that is happening.

It would have been unsustainable to invest into the soft product of F while there was still a recession underway, and the revenue generated from paying passengers wasn’t there, and BASSA still held its Sword of Damocles over the airline.

Now the economic and industrial relations issues have lessened (though not entirely gone away) it’s right that more investment happens; it’s tough to time this well, and inevitably that means some paying customers get a raw deal.

But in the long term, I’m confident BA will find the right levels of service and hard/soft product (not necessarily the very best levels, but consistent and solid levels) and that, coupled with a significantly lower cost base provided by Mixed Fleet and other new management and workforce approaches will deliver a sustainable future for the airline, and for future customers as well.

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