Monkeyboi From United Kingdom, joined Oct 2004, 457 posts, RR: 3 Posted (8 years 9 months 1 week 6 days 16 hours ago) and read 7033 times:
Like us, love us or hate us....seems we are doing something right!
From UK Daily Mail, Sun 13th March:
"BA makes history with profits record"
"British Airways is about to stun the industry by becoming the world's most profitable airline for an unprecedented second successive year. The company will report operating profits of more than GBP525 million for the year ending March 31 when it announces final results in May. The financial triumph in the face of huge fuel price rises and ruthless competition from subsidised rival American carriers will form a remarkable legacy from Rod Eddington, the carrier's departing Australian CE. When he arrived in 2000, morale was low, the company reported pre-tax losses of GBP241 million and was languishing at 21st place in the profitability league. The figures to be announced on Friday May 13 are expected to trigger bonuses for all employees. Eddington told Financial Mail that cutting costs was 'part of a never ending journey'. He said: 'You can never relax, you have always got to keep an eye on them.' In his five years at the airline, Eddington has axed 15,000 jobs, but staff costs and the price of aviation fuel continues to rise. And BA still has to finance huge debts, though they have fallen from GBP6 billion to GBP3.5 billion...."
OzGlobal From France, joined Nov 2004, 2684 posts, RR: 4 Reply 1, posted (8 years 9 months 1 week 6 days 16 hours ago) and read 7009 times:
Quoting Monkeyboi (Thread starter): The financial triumph in the face of huge fuel price rises and ruthless competition from subsidised rival American carriers will form a remarkable legacy from Rod Eddington, the carrier's departing Australian CE.
Great result! I assume the 'subsidised rival American carriers' is a reference to protracted Ch 11 protection.
When all's said and done, there'll be more said than done.
We are indeed doing something right. Despite all the difficulties of the past year, the bad press and all, this is a significant achievement for all of us who work for BA and have worked to ensure that we succeed. Let's hope we can continue to do what we've been doing and serve our customers with pride....and of course achieve bigger profits.
Monkeyboi From United Kingdom, joined Oct 2004, 457 posts, RR: 3 Reply 7, posted (8 years 9 months 1 week 6 days 14 hours ago) and read 6809 times:
An article to the same effect also led the front page of the Observer Business Section today.
And although Qantas, Emirates etc have been making record profits for years, none of them quite at the GBP525 million mark. When has Qantas ever made anywhere near the region of AUD1.28 billion profit?? (the equiv of GBP525 million).
Beno From Australia, joined Aug 2002, 428 posts, RR: 4 Reply 10, posted (8 years 9 months 1 week 6 days 13 hours ago) and read 6719 times:
Quote: And although Qantas, Emirates etc have been making record profits for years, none of them quite at the GBP525 million mark. When has Qantas ever made anywhere near the region of AUD1.28 billion profit?? (the equiv of GBP525 million).
Actually QF is set to report a $1.2billion profit later this year after reporting a $601.3 million half year profit in Feb.
AIR MALTA From Malta, joined Sep 2001, 2414 posts, RR: 1 Reply 12, posted (8 years 9 months 1 week 6 days 6 hours ago) and read 6546 times:
when is BA going to add some new routes because Europen passengers are now turning to AF and LH because BAs route map is not anymore so interesting. BA has quit a lot of important markets where money could be made : Asia, South America... They are still weak in Eastern Europe and West Africa.
AlanUK From , joined Dec 1969, posts, RR: Reply 13, posted (8 years 9 months 1 week 6 days 5 hours ago) and read 6449 times:
Having worked at BA for 6 years now, it is rewarding to finally read some positive press on the company (especially from the Daily Mail which, more than any other paper, loves to bash BA for any reasons...).
Terminal 5 will be the biggest intra-airport move of any airline in the World, and promises to cut costs massively, and offer the World-class terminal facility BA deserves to compete effectively with LH and AF in Europe.
Having done an internal training course day, I have, for the first time in ages, heard of INVESTEMENT rather than CUT! A feel-good word for all staff at BA! New on-demand IFE, alongside with noise cancelling headphones for F/C are on the cards, as well as brand refresh for F and Club Europe... There was even a hint of new plane orders, although nothing for the next two years, or until debt has been lowered further.
Speedbird2155 From United Kingdom, joined Feb 2005, 856 posts, RR: 5 Reply 14, posted (8 years 9 months 1 week 6 days 5 hours ago) and read 6446 times:
Quoting AIR MALTA (Reply 12): BA has quit a lot of important markets where money could be made : Asia, South America
Obviously money wasn't being made from those routes, otherwise BA would have kept those routes. BA operates into markets that make sense for BA to be there. BA won't simply fly to a destination just to be able to say that they fly to x number of destinations or to some market where the airline is making a loss. The fact that despite not having an "interesting" route map and still can make the profit that we did, is credit to BA's route planners and all staff.
AIR MALTA From Malta, joined Sep 2001, 2414 posts, RR: 1 Reply 16, posted (8 years 9 months 1 week 6 days 5 hours ago) and read 6429 times:
Quoting Speedbird2155 (Reply 14): The fact that despite not having an "interesting" route map and still can make the profit that we did, is credit to BA's route planners and all staff.
It may work in the short term, but BA is loosing a lot of potentail passengers to AF and LH. I explained that previously. In Austria as in Tunisia (where I lived), nobody thinks of BA when wanting to go to a destination outside the UK. BA is also regarded as an expensive airline. The natural choice of our company is to book with AF or LH because they have a wider choice of destinations and also more connections to their hubs. I had to battle with my company to get to Dubai from Vienna via LHR with BA. My boss told me that I am driving the costs higher if I fly BA. The reason I wanted to fly BA is that they offered a more flexible schedule to and from Dubai which I needed because I was connecting to and from Sanaa in Yemen which has limited connections to the outside world. I wanted to make sure that if I could fly from Sanaa to Dubai, I would not have to wait long for my next flight to Europe. That was only possible through BA because other European airlines had flights at around 2AM wheras BA had up to 3 flights a day to LHR. And I have had a bad experience with LH. I landed from Sanaa at around 8 AM in DXB to wait for my LH flight which was at 03h10 AM the next morning.
So here is an example of why BA can be a better option but whenever I make a work trip, I get LH or AF flights because nobody thinks of BA here.
So BA must start to think about it because if people do not think about BA instinctively I won't work for them in the long term.
Ts-ior From Tunisia, joined Oct 2001, 3318 posts, RR: 6 Reply 17, posted (8 years 9 months 1 week 6 days 4 hours ago) and read 6404 times:
BA once established a kind of agreement with TU to make Tunisian travellers transfer via LHR, as if TU should put its noise on every thing !!! This stopped when BA returned to LGW a few years ago. At that time, late 90s i think, prices were higher than those proposed by RAM, AF, LH or the regrettable SR
Speedbird2155 From United Kingdom, joined Feb 2005, 856 posts, RR: 5 Reply 19, posted (8 years 9 months 1 week 6 days 4 hours ago) and read 6365 times:
Quoting AIR MALTA (Reply 16): I had to battle with my company to get to Dubai from Vienna via LHR with BA. My boss told me that I am driving the costs higher if I fly BA. The reason I wanted to fly BA is that they offered a more flexible schedule to and from Dubai which I needed because I was connecting to and from Sanaa in Yemen which has limited connections to the outside world. I wanted to make sure that if I could fly from Sanaa to Dubai, I would not have to wait long for my next flight to Europe.
I would certainly expect that given the geographical location of Vienna, it would be cheaper to connect on AF or LH as you have to fly further to connect thru LHR. Therefore if costs are important to your company as you said, taking the shortest and cheaper option is what they are after. However, you pointed out that BA offered a more convenient schedule and if that was the key consideration, then the additional costs involved would be justified.
I would also suggest that one of the strengths of BA is having a schedule that allows our customers the flexibility they need. This includes the number of frequencies on those routes that justify multiple flights and also flight times that customers what and appreciate. BA won't compete on a price basis if it is uneconomical to do so and I would think that trying to offer a similar fare as AF and LH from Vienna to DXB would be such a situation.
Ready4Pushback From United Kingdom, joined Dec 2004, 364 posts, RR: 0 Reply 20, posted (8 years 9 months 1 week 6 days 4 hours ago) and read 6327 times:
Quoting AlanUK (Reply 13): Terminal 5 will be the biggest intra-airport move of any airline in the World, and promises to cut costs massively, and offer the World-class terminal facility BA deserves to compete effectively with LH and AF in Europe.
I agree, but I think a third runway at LHR would also help competing.
In a nutshell, its where US airlines can continue to trade but with protection from creditors. It is often used as part of a major restructuring effort by that carrier, as they can usually push through labour concesssions they may well not get otherwise. Some carriers have used it to great advantage in the past (such as CO in the 90s) to restruture before re-emerging leaner and fitter. Well that's the theory anyway......
Just when I thought I could see light at the end of the tunnel, it was some B*****d with a torch bringing me more work
Cornish From United Kingdom, joined Feb 2005, 8187 posts, RR: 55 Reply 24, posted (8 years 9 months 1 week 6 days 3 hours ago) and read 6268 times:
Quoting Ready4Pushback (Reply 23): In the meantime do they just go more and more in the red, or does someone (like the taxpayer) pay their bills?
It depends - basically the Ch.11 is supervised by the bankruptcy court who can for example decide to cancel some of the debts. It could even hand the assets over to the creditors. The court oversees and approves any significant business decisions made by the airline in question. Bills get paid on the basis of priority I believe, but creditors have to wait rather than get paid from the tax payer.
Some go further into the red and could concievably get liquidated. Others do emerge either fitter or eventually go back to Ch.11 (like US air) as the restructuring was not enough. some go to Ch.7 which is liquidation basically.
However one drawback is that the carrier in Ch.11 has often in the past used the period to lower fares and undercut the competiton who are not in Ch.11.
Just when I thought I could see light at the end of the tunnel, it was some B*****d with a torch bringing me more work
25 AIR MALTA: If I have to wait 20 hours for my flight at DXB having started my trip 6 hours before from Sanaa, let me tell you that it will cost them in overtime
26 Speedbird2155: I'm happy to hear that you had a good BA trip to and from DXB. Just try harder to convince your company that it is worth it to use BA more in the fut
27 AIR MALTA: Oh no, my company has an agreement with low fares No, they work with a travel agency which provides the lowest fares available. And unfortunately BA
28 Monkeyboi: I think Rod Eddington will get a nice little bonus in his farewell pay packet when these profits are announced! I feel a little sorry for Willie Walsh
29 Ready4Pushback: Thanks Cornish. When I was in Chicago at the beginning of the year, there were quite a few people on my course that didn't think there should be such
30 Andreas: I am somewhat flabbergasted that my post was deleted...WHY????? I just asked, and hereby ask again: On what financial ratios did Mr. Eddington base hi
31 AIR MALTA: I talked with an AF flight attendant on my flight to JNB. She told that for that flight which leaves Paris at 23h00 arriving at JNB at 10h00, they ha
32 Monkeyboi: Hi Andreas, I have no knowledge of company finances so am not sure what ratios were used. I guess it is based on the quarterly profits made in the las
33 Andreas: Monkeyboi: Thx, I'll try to find some financial review! For the time being I am somewhat sceptical that this true, no matter which ratios are used, bu
34 Monkeyboi: I was suprised as well! We (the staff) at BA have heard nothing but terms like 'we are struggling for survival' and 'if we don't cut costs we will go
35 AlanUK: Monkeyboi, Some clarification, it's £35 (not £40) that Eurofleet crew receive for a turnaround of less than 170 minutes at Heathrow only, and only i
36 AlanUK: BA crew to JNB/CPT get the following deal: DAY 1: LHR-JNB/CPT DAY 2: OFF (arrive early morning) DAY 3: OFF DAY 4: OFF (depart late evening) DAY 5: JN
37 Monkeyboi: Its £37.41 if you want to get all precise lol )
38 AlanUK: Wow, that's gone up!!! inflation I suppose! thanks for the precision!
39 Cornish: The issue over a shorter third runway to the north is conditional on certain environmental conditions being met. Any new runway would like be around
40 Ready4Pushback: Are there going to be any decisions on this any time soon? When are we expecting another announcement?
41 AlanUK: On this issue (3rd runway), Isn't it possible to replace one of the runway (N or S) with a double runway (like in SFO), by squeezing the taxiways slig
42 Cornish: It was in the aviation white paper - Stansted runway no.2 comes first. I think the environmental question for LHR's regional runway was assessed in 2
43 Cornish: The plan is to build it to the North of the A4, between there and the M4. There's not the space by the existing runways to put in an extra one.
44 BestWestern: Andreas - the recent BA investor presentation is available here... http://www.corporate-ir.net/ireye/ir...item_id=ea,1032250,141585&layout=0 Their inv
45 Ready4Pushback: I love your text map of LHR. You should be in the planning department!
46 AlanUK: Lol, ok, Ready4Pushback... I've photoshoped my text planning, and this is what I mean: Like SFO really...
47 Ready4Pushback: Yes but you can text (as in SMS) the text to your mates if you really wanted to. Here's one of BHX: ------------- Runway 1 EH T1 Not as interesting as
48 Cornish: I dare you to do AMS with runways going in all sorts of directions
49 BestWestern: Or London City.. LCY ------Runway 1 Terminal
50 DoorsToManual: Great to see we're in a position to announce some profits come May; let's keep our feet on the ground though, and remember that the portion of revenue
51 LHR27C: Alan - re your parallel runway to 27L/09R idea, it wouldn't really work because there isn't enough space between T1,2,3 and T4. There's a certain rest
52 BestWestern: Why not use Northolt as a short haul airport - and introduce a transfer rail link to Heathrow? - Northolt is right beside a rail link, and if we remov
53 AlanUK: LHR27C: Thank you, I thought so too! Oh hell... Just shave a bit of T4 off to allow it!!! Seriously though, the USA must have more relaxed ruling, as
54 Cornish: That'll give the drivers some scary moments coming along the A40 !! Problem is its not just the airlines who want to fly into LHR, its the local govt
55 Revelation: Yes, no taxpayer funds are expended, other than perhaps court costs. So it's not a 'subsidy' per se, it's just a part of the business environment in
56 AngelAirways: I ask the same question... and knowing the sort of rubbish that gets published in the daily mail, I am very skeptical.
57 Cornish: Thanks for the clarification Revelation. Yes when people from other countries tend to talk about how unfair Ch.11 is to their countries' airlines the
58 AirbusCanada: SQ made a Operating profit of $1,062.0(US$Millon) in the first nine months of 04/05, and if you dont' count their high amortization expenses to tax p
59 Shamrock_747: Although personally I doubt the statement "world's most profitable airline" is 100% correct it is superb to see how well BA are doing, particularly wh
60 Trekster: With all that is going on in the Aviation world, eg, many of the Major and minor airlines in the states Struggling, or even going out of business, it
61 Jmc757: Great result for British Heathrow Airways!! Perhaps they could use some of this cash to buy an atlas and look up Britain. They'd realise theres a whol
62 Singel09: How can a company in dept of GBP 3.5 billion deliver such messaging ... misleading ... to say the least ... how can you consider your company healthy
63 AlanUK: Singel09: Most airlines have some degree of debt. To my knowledge, only LH doesn't have any in Europe. But to recude debt from 6bn to 3.5bn at BA is a
64 Singel09: Alan, Agree .. but still ... why are banks accepting the HUGE debt ? Mause
65 AeroWesty: When people talk about how unfair the bankruptcy laws are in the U.S., or "subsidized American carriers", I remind myself how a carrier to our north
66 RRFan: 525 million GBP is a tonne more than USD or AUD so it is the biggest profit by far
67 Businessflyer: The graphs from the BA presentation speak for themselves. BA made a larger operating profit (EBIT) than all the other operators. However: 1. This is a
68 Scotron11: Agree .. but still ... why are banks accepting the HUGE debt ? BA's debt is quite low in airline terms. Look at the long-term debt of DL and BA's deb
69 Travelin man: I find it ironic that there are complaints about "subsidized US airlines" in an article trumpeting British Airways' profits, much of which can be attr
70 AeroWesty: Let's not be too harsh on our subsidized bretheren, after all, they are purchasing quite a few Boeings of the XL size with their ill-gotten gain.
71 Scotron11: BA, the defenders of unadulterated capitalism! (except when it comes to Heathrow, of course). Well, you have to consider that LHR is BA's home. Their
72 BOEING747400: I thought that would be Singapore Airlines as it always has been this way?
73 Scotron11: I thought that would be Singapore Airlines as it always has been this way? SQ is fully owned and run by the Singapore government.
74 Cornish: Of course lets not forget that AA and UA also benefit hugely from this archaic rule too. For UA in particular, if they needed to they could sell thei
75 Scotron11: For UA in particular, if they needed to they could sell their LHR operations for some quick and much needed cash. This has been rumoured for some tim
76 Cornish: Of all the non-LHR carriers, CO is probably the most keen to fly into LHR, partly due to its strength in the UK market and also its codeshare with VS
77 Travelin man: True about the JFK run. However, the fact remains that BA benefits hugely from Bermuda II, and its stifle on competition. It benefits all 4 carriers,
78 Cornish: Absolutely agree with you about BA benefiting from Bermuda II. However not quite true about BA serving all cities from LHR - they serve most, but I t
79 BestWestern: UA already did this in early 2004 to Qantas.