[Scandinavian]

Disgusted – I think you fail to see the whole picture in terms of product innovation and development during the last ten years in Europe.

Yes, the on-board product has suffered rounds of penny pinching in the last ten years (food being the area where it is most obvious). However, seating in business and first class has improved greatly, as too has in-flight entertainment, which require huge investments from airlines. BA has led the European airlines and been at the forefront with the Middle East*3 and some Asian carriers. The hardware we take for granted today, is actually relatively new and far superior than it was ten/twelve years ago.

Secondly, there has been a huge amount of product innovation focused on the on-ground product. Here I feel that the European majors have been ahead of their Asian and Middle Eastern competitors. Innovations such as: ticket free travel, on-line bookings, self check-in, on-line check-in, mobile check-in, automated baggage drop, fast track at airport etc. etc. have resulted in a vastly simplified on-ground experience (in-spite of increased security). Some of these tools have been “borrowed” from the low cost carriers who led a simplification in travel, but it is the European legacy carriers who generally have made them industry standard.

Compared to SAS and Finnair, BA has not led the field in on-ground product innovation. Many of the “simplified” on-ground tools named above were available in Northern Europe years before BA and Lufthansa introduced them.

Nevertheless it highlights that legacy carriers have been innovative in the past years – just with more focus on cabin hardware and the on-ground product than on food and wine offerings.

[Henkel.Trocken]

I seem to remember the SE Asian carriers experiencing significant recession in 2003 both before and after SARS so it’s disingenuous to suggest that they haven’t.

It’s not either correct to suggest that all their crew are on short contracts and minimal terms and conditions. It is well known that SIA fall in to that mould but apparently a Singapore Girl is much sought after once her two three year contracts are up if she is not one of the few that are retained. TG OTOH have a significant number of far more senior crew on what are for SE Asia very generous terms and conditions.

That has not stopped TG being a highly competative airline operating outside of state control, investing in new aircraft and so on. They have also recognised publicly that their place in the market is not competing with SQ or CX but it is to provide decent quality at reasonable cost and they do that very well.

[DisgustedofSwieqi]

Scandinavian

Thanks for patronizing me, appreciate that.

There has been some innovation in the air over the past 10 years, e.g. decent short haul seats being replaced by economy ‘space savers’ (BA, LH, LX etc), with the middle kept free, thinner and thinner seats being introduced to cram more in (LH, LX etc.)

The New Club World product at BA was rolled out in 2000/2001 and the First flat bed in the mid-90s. Both of these products were highly innovative in their day and I take my hat off to BA for their first to market initiative. But everything since has been a variant (by other airlines) or a refresh (nice updates, but not innovative.)

The ground initiatives you mention were largely driven by cost saving objectives, yes they are often convenient, but the customer service outcome is a spin off. As well, the locos drove much of this innovation, to aim for cost leadership reasons.

Regardless of the above, how have the airlines changed their business models to deal with a changing world?

[Scandinavian]

Disgusted

I have absolutely no desire or need to patronize you.

Ground initiatives started off as cost saving innovations but are no longer so. Airlines have realised that a competitive advantage can be gained by improving the whole on-ground process especially on short-haul routes. Sure much of it becomes industry wide after a number of years but there is a window of opportunity if an airline has a first mover advantage (Qantas Domestic and SAS are two carriers focused on on-ground innovation).

In terms of business models, I don’t think that legacy carriers have undergone major changes in the last years. However, some of them have gained a clearer understanding of what their core/key markets are instead of trying to offer everything to everybody. In my opinion BA has a clearer sense of focus than e.g. Lufthansa and Air France.

BA is certainly less focused on volume transfer traffic compared to in the 80s and 90s preferring to concentrate on more profitable point to point traffic from London and high-yield transfer traffic. Gone are regional UK services and the majority of services to European leisure destinations giving BA a more focused operation which plays on its strengths and is focused on BA’s most profitable customers. This does not represent a shift in BA’s business model but rather a more clearly focused business model.

What is the paradigm shift that you are waiting for?

[DisgustedofSwieqi]

“What is the paradigm shift that you are waiting for?”

For a start, treating passengers as valued customers would be good.

Flying Chinaman has made this point many times.

[FlyingChinaman]

Just arrived BKK on Cathay with some American friends for the Chinese Moon Festival..

They were so affected by the gracious service on CX as they have never travelled on Asian airlines before, only used to US and some EU carriers.

They wow to take CX or other top Asian airlines)for their future flights to Asia.

Treating passengers special (in premium or otherwise) is a sure way of winning and retaining their custom. A blue print for modern day business model.

Apart from further investment, BA should immediately instruct their PA to curtain off their FIRST class section and allow passengers from this cabin to get off first. It is not difficult to do as many of the US carriers are doing this already!!!!

[DisgustedofSwieqi]

“It is not difficult to do as many of the US carriers are doing this already!!!!”

And the middle eastern carriers, too. For business, as well as first.

[RichHI1]

I am afraid the BA practice of deplaning First after everybody else when using door 2 shows a management focused on efficiency not customers. this may please shareholders short term but it will reduce market share long term if not corrected.

[First-Pax]

Just returned from LCA in Club Europe and the quarter bottles of Champagne ran out in each direction – very early into the flight…

Has anybody else suffered the same problem?

[RichHI1]

Yes once on 6.30pm LIS-LHR. Was told they did not get as many as usual on loading.

[VintageKrug]

There’s a new Champagne being launched in Club World from October; should be an improvement on the Lanson.

[First-Pax]

Maybe they can use the Lanson in Club Europe instead of running out all the time !

[RichHI1]

VK no reply on the Krug comment. What is the best way to influence BA to serve Krug in First? I can buy it in the airport but one is not allowed to serve one’s own alcohol on board. Maybe we can get BA to charge corkage and then when the new security machines are installed, I can carry on a nice bottle of 1990? I can dream… (after all I can buy Caviar at LHR to carry on, goes well with Appetizer on AA).

[Binman62]

RichH1

Please do not give BA any ideas on charging additional fees…they will only take you up on it and then state that it is aservice enhancement in response to passenger demand!!

[First-Pax]

RichH1 – a man (or woman) after my own heart !

What’s a few ££’s more to get a proper First product? Let’s get back to the good old days !

[Author]

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