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British Airways' New Fare Structure Expansion  
User currently offlineFlynavy From , joined Dec 1969, posts, RR:
Posted (12 years 1 month 2 weeks 16 hours ago) and read 3878 times:

The following article was recently published in the New York Times, and I thought I would share it here.

As some of you may already know, in addition to reducing its fleet size and cutting 10,000 jobs, British Airways has recently introduced a new fare structure.

First introduced in April, the new fare structure eliminated the Saturday-night-stay and advance-purchase requirements on 18 of 189 BA's routes. It now appears that by the end of the summer, the airline will have this fare structure in-place on all of its 189 routes. In addition, this new structure is aimed at directly competing with Europe's low-fare carriers (i.e. Ryanair, easyJet) and at retaining their business-class passengers. Due to the growth of low-fare carriers in Europe--especially in England--BA lost $348 million on its short-haul routes last year.

Here in America, major airlines (especially Delta) are looking at this bold move by BA. It should be interesting to see whether or not some U.S. airlines follow suit.

You can find the rest of the article by following this link: http://www.nytimes.com/2002/08/10/business/10FARE.html?8hpib.

Later,
Chris in Orlando

2 replies: All unread, jump to last
 
User currently offlineAT From United States of America, joined Jul 2000, 1044 posts, RR: 0
Reply 1, posted (12 years 1 month 2 weeks 14 hours ago) and read 3840 times:


as of now, the article says the new fare structure will be available on all of BA's EUROPEAN flights.
Will this some day be applicable on trans Atlantic flights as well?


User currently offlineQantas744 From United Kingdom, joined May 2004, 246 posts, RR: 5
Reply 2, posted (12 years 1 month 2 weeks 8 hours ago) and read 3799 times:

Unlikely I think.

Mainly because the reason BA and a few other full fare airlines are changing their pricing structures is to counter the threat of competition from the low cost carriers throughout Europe. And seeing as Bermuda II prevents any real competition for BA across the Atlantic, there is no reason why they would change things.

BA is not gonna start selling unrestricted cheap tickets on long haul routes unless another airline does it first-which is very unlikely.


Matt



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