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Future Of BA, Sunday Times Article.  
User currently offlinereadytotaxi From United Kingdom, joined Dec 2006, 3360 posts, RR: 2
Posted (3 years 4 months 4 weeks 1 day 19 hours ago) and read 14374 times:

The London Sunday Times color magazine has a 5 page article on the woes of BA past and future.
Very interesting read. The Sunday Times web site is now pay to view,don't know if this includes the magazine as well as the newspaper section.
The article covers the past glory days and the recent strike and what people would like to see going forward.
Keith Williams who got Willie Walsh's old job was invited to contribute to the piece but declined.
The magazine published a few facts,theirs not mine feel free to correct.

"10yrs ago the airline flew more long haul international passengers than any other airline, today it is 30m compared with Ryanairs 73m,only short haul."

"At 73m passengers a year Ryanair is the worlds largest international airline."

"Emirates Dubai terminal is the largest building in the world by floor space"

chart



you don't get a second chance to make a first impression!
15 replies: All unread, jump to last
 
User currently offlineBongodog1964 From United Kingdom, joined Oct 2006, 3682 posts, RR: 3
Reply 1, posted (3 years 4 months 4 weeks 1 day 19 hours ago) and read 14332 times:

At the moment I would think that BA has a better future ahead of it than the Sunday Times under the management of Rupert Murdoch !!!

User currently offlinekaitak From Ireland, joined Aug 1999, 12594 posts, RR: 34
Reply 2, posted (3 years 4 months 4 weeks 1 day 19 hours ago) and read 14331 times:

I thought it was a very good and interesting article, but I thought Keith Williams made a major mistake by not participating in it. The Sunday Times is a mass production quality newspaper and it would have been a good opportunity for him to expound his views on the company and its future.

Poor judgment call.


User currently offlineGrid From Kazakhstan, joined Apr 2010, 624 posts, RR: 0
Reply 3, posted (3 years 4 months 4 weeks 1 day 19 hours ago) and read 14189 times:

Quoting readytotaxi (Thread starter):
"10yrs ago the airline flew more long haul international passengers than any other airline, today it is 30m compared with Ryanairs 73m,only short haul."
Quoting readytotaxi (Thread starter):
"At 73m passengers a year Ryanair is the worlds largest international airline."

"Emirates Dubai terminal is the largest building in the world by floor space

I understand those are not your facts; what was the point in the article citing them?

The first one is sort of comparing apples to oranges. What would help is if they stated what revenue was made on those passengers - is long-haul or a short-haul passenger more profitable?

It seems to speak more about "reclaiming glory" rather than making money or providing a service. Who cares if a terminal is the largest building in the world by floor space?



ATR72 E120 E140 E170 E190 Q200 717 727 737 747 757 767 777 A319 A320 A321 A330 A340 MD11 MD82 MD83 MD88 MD90
User currently offlineLHRFlyer From United Kingdom, joined Apr 2010, 822 posts, RR: 1
Reply 4, posted (3 years 4 months 4 weeks 1 day 19 hours ago) and read 14113 times:

I've not read the article, but I am cautiously optimistic about BA's future.

All of the major structural issues have been addressed: working practices (on the ground and in the air), the pensions deficit etc. Militant trade union behaviour has now been curtailed. Operationally it is much much stronger than a few years ago now that T5 has bedded in. Baggage handling has improved beyond recognition and punctuality is very good.

Investment in new aircraft and the product is coming and there are soundings that new long haul routes (both westbound and eastbound) when new aircraft arrive.

IAG's Q2 results are out on Friday and if the premium traffic performance is anything to go by, they shoud be strong results.

The Middle Eastern carriers are a threat, but they are just as much of a threat, if not more, to LH, SQ and QF etc. BA still has a very strong transtlantic O&D market on its own doorstep.

The past few years have been quite volatile but at least the company has faced up and tackled its problems (even if in a highly public way at times) rather than getting locked into a dangerous spiral of unprofitability and inability to invest to keep up with the competition.

[Edited 2011-07-24 07:31:56]

User currently offlineFlyCaledonian From United Kingdom, joined Dec 2003, 2104 posts, RR: 3
Reply 5, posted (3 years 4 months 4 weeks 1 day 19 hours ago) and read 14036 times:

Quoting Grid (Reply 3):
It seems to speak more about "reclaiming glory" rather than making money or providing a service. Who cares if a terminal is the largest building in the world by floor space?

But don't forget that for a long BA marketed itself as the 'World's favourite airline'. That was something that stuck firmly in the mind of the public (and was partly behind BA's 'World Tails' too), and I guess the point of the article is that BA has gone from that position to where it is today.

There are lies, damned lies and statistics - I wonder how much context the various figures the article seems to use are put into?

BA and IB were late to the game, in terms of the formation of IAG when compared to Lufthansa Group and AF-KL. However, how much of that is down to thwarted ambition, corporate arrogance (from BA) and regulatory decisions?

In the 1990s BA was trying to get deals all over - UA, CO, eventually US and they were then stood up for AA - and look how long that deal eventually took to come to fruition. In Europe, SN, KL (twice) and LX all slipped through the net. To my mind, the loss of KL and LX in the 2000s are two deals that, either of which, would have changed the game for BA. KL would have allowed BA to build on the tongue-in-cheek claim that AMS was London's third airport to use KL to provide the connections that BA can't at LHR. LX would have been a quality Central European carrier that would have benefitted both BA and oneworld.



Let's Go British Caledonian!
User currently offlinereadytotaxi From United Kingdom, joined Dec 2006, 3360 posts, RR: 2
Reply 6, posted (3 years 4 months 4 weeks 1 day 19 hours ago) and read 14003 times:

Quoting kaitak (Reply 2):
but I thought Keith Williams made a major mistake by not participating in it

Has he made a public statement about the companies direction under his leadership since taking office, did I miss it?



you don't get a second chance to make a first impression!
User currently offlineLHRFlyer From United Kingdom, joined Apr 2010, 822 posts, RR: 1
Reply 7, posted (3 years 4 months 4 weeks 1 day 19 hours ago) and read 13881 times:

Quoting FlyCaledonian (Reply 5):
In the 1990s BA was trying to get deals all over - UA, CO, eventually US and they were then stood up for AA - and look how long that deal eventually took to come to fruition. In Europe, SN, KL (twice) and LX all slipped through the net. To my mind, the loss of KL and LX in the 2000s are two deals that, either of which, would have changed the game for BA. KL would have allowed BA to build on the tongue-in-cheek claim that AMS was London's third airport to use KL to provide the connections that BA can't at LHR. LX would have been a quality Central European carrier that would have benefitted both BA and oneworld.

I agree. Losing KL and LX was a mistake.

Quoting readytotaxi (Reply 6):
Has he made a public statement about the companies direction under his leadership since taking office, did I miss it?

He has given interviews to the press since taking over as CEO, focussing on forthcoming product investment.

Depending on the timing of research of thie article, it may not have been appropriate to give an interview to an in depth feature, given the very sensitive nature of negotiations on the cabin crew dispute, where quotes could easily have been taken out of context.


User currently offlinejfk777 From United States of America, joined Aug 2006, 8499 posts, RR: 6
Reply 8, posted (3 years 4 months 4 weeks 1 day 18 hours ago) and read 13532 times:
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Quoting FlyCaledonian (Reply 5):

In the 1990s BA was trying to get deals all over - UA, CO, eventually US and they were then stood up for AA - and look how long that deal eventually took to come to fruition. In Europe, SN, KL (twice) and LX all slipped through the net. To my mind, the loss of KL and LX in the 2000s are two deals that, either of which, would have changed the game for BA. KL would have allowed BA to build on the tongue-in-cheek claim that AMS was London's third airport to use KL to provide the connections that BA can't at LHR. LX would have been a quality Central European carrier that would have benefitted both BA and oneworld.

Building upon past mistakes, BA could acquire a Scandanavian airline which might be for sale, SAS. BA gets lots of feed out of Scandanavia, so why not, it would give IAG a north central European hub. It would also help IAG to Asia since SAS has strong routes to China, BA is strong to Hong Kong and Singapore but average to Thailand, China, Japan and non existent to South Korea. Flights coudl also start in Madrid fly to Copenhagen and on to Asian countries.


User currently offlinejonathanxxxx From United States of America, joined Feb 2011, 673 posts, RR: 1
Reply 9, posted (3 years 4 months 4 weeks 1 day 17 hours ago) and read 13398 times:

Quoting jfk777 (Reply 8):
Building upon past mistakes, BA could acquire a Scandanavian airline which might be for sale, SAS. BA gets lots of feed out of Scandanavia, so why not, it would give IAG a north central European hub. It would also help IAG to Asia since SAS has strong routes to China, BA is strong to Hong Kong and Singapore but average to Thailand, China, Japan and non existent to South Korea. Flights coudl also start in Madrid fly to Copenhagen and on to Asian countries

SAS seems like a good addition. The only thing is that I thought they were in bad financial shape? Also they already have AY in OW so having both AY and SAS would be way too much overlap. If anything I think they should go after an East/Central European Airline. Maybe Malev or S7? (Don't know if that would work though).


User currently offlineIBA346 From France, joined Jan 2010, 29 posts, RR: 0
Reply 10, posted (3 years 4 months 4 weeks 1 day 16 hours ago) and read 12326 times:

Quoting jfk777 (Reply 8):
Building upon past mistakes, BA could acquire a Scandanavian airline which might be for sale, SAS.

I guess we should think of a purchase of SAS (Or Malev, S7, TP etc) as a purchase by IAG, not BA. When thinking about growth opportunities for BA we are talking about growth opportunities for the BA brand. These are possible but - if we follow recent trends - they are limited to the launch of a few additional long haul routes from LHR when slots permit, growth of long-haul leisure at LGW, increase in city flyer operations at LCY and new Openskies destinations from ORY. BA may well become a profitable but low-growth brand in the IAG portfolio.


User currently offlinegoblin211 From United States of America, joined Jun 2010, 1209 posts, RR: 0
Reply 11, posted (3 years 4 months 4 weeks 1 day 16 hours ago) and read 12111 times:

The merger should help. I mean that's why they merged right? Whenever these analysis are made then it shows much negativity about the airline when they're really just focusing on a certain market. Maybe the euro airlines are not doing as good as they should in the Middle East but the middle east airlines certainly aren't doing better than euro airlines in Europe now are they?

That's why I don't like these kinds of articles and since this is from a newspaper they're just trying to find someone else in financial trouble so they don't feel so bad about themselves. I think it's hardly a good evaluation of a company.



From the airport with love
User currently offlineByrdluvs747 From United States of America, joined Jul 2004, 2464 posts, RR: 1
Reply 12, posted (3 years 4 months 4 weeks 1 day 15 hours ago) and read 11609 times:

One place I would love to see BA(OpenSkies) grow is ex-CDG. I know about the slot issue, so I am talking slow growth in this case. However, it would give both AA/BA some leverage against DL/AF on routes like ORD-CDG by offering connections on intra-France routes.

Quoting jfk777 (Reply 8):
BA could acquire a Scandanavian airline which might be for sale, SAS.

Anything IAG does in nothern Europe should be in cooperation with AY. Now that OW has a counter to LH in central Europe with AB and to some extent MA, BA needs to help OW by focusing on southern europe. IG is still independent, however they are talking about a merger with AZ(raises some competition issues if you ask me) so BA would have to move faster than their usual glacial pace.



The 747: The hands who designed it were guided by god.
User currently offlineJL418 From Italy, joined Jun 2009, 493 posts, RR: 6
Reply 13, posted (3 years 4 months 4 weeks 1 day 13 hours ago) and read 9940 times:

Quoting Byrdluvs747 (Reply 12):
IG is still independent, however they are talking about a merger with AZ(raises some competition issues if you ask me) so BA would have to move faster than their usual glacial pace.

Buying IG would be quite a mistake in my opinion. The airline hasn't a lot to offer, its share of the Italian market is quite little and most of its hardware is so dated that can be served alcohol in Sweden. The company has just merged with Eurofly in an attempt to keep both carriers afloat.


User currently offlineByrdluvs747 From United States of America, joined Jul 2004, 2464 posts, RR: 1
Reply 14, posted (3 years 4 months 4 weeks 1 day 13 hours ago) and read 9177 times:

Quoting JL418 (Reply 13):
most of its hardware is so dated

True, but they do have a good number of A319/320 planes as a result of the Eurofly merger. I'm sure if they were bought by IAG those 15 MD80's would be replaced fairly quickly.

Quoting JL418 (Reply 13):
The airline hasn't a lot to offer

Well they must have something to offer since BA,IB, and AY all codeshare with them. A base at MXP and FCO has plenty of potential, and from what I see of IG's map, there would need to be some route alignment but nothing so drastic that it would scare away BA.

Quoting JL418 (Reply 13):
its share of the Italian market is quite little

I recognize they're not the size of AZ. However, with a resource infusion from IAG and an influx of OW traffic I'm willing to bet they can give AZ a good challenge on many routes.



The 747: The hands who designed it were guided by god.
User currently offlinedalalways From United States of America, joined Dec 2009, 97 posts, RR: 0
Reply 15, posted (3 years 4 months 4 weeks 22 hours ago) and read 3448 times:

Quoting Bongodog1964 (Reply 1):
At the moment I would think that BA has a better future ahead of it than the Sunday Times under the management of Rupert Murdoch !!!

I peed a little in my shorts I laughed so hard at that...LOL You kicked my day off right! Thanks  


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