flynavy
Posts: 2177
Joined: Fri Mar 15, 2002 1:48 am

British Airways' New Fare Structure Expansion

Sun Aug 11, 2002 12:32 am

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
Change is: one airline, six continents!
 
AT
Posts: 882
Joined: Tue Jul 25, 2000 12:16 pm

RE: British Airways' New Fare Structure Expansion

Sun Aug 11, 2002 3:11 am


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?
 
qantas744
Posts: 1658
Joined: Wed May 05, 2004 6:25 pm

RE: British Airways' New Fare Structure Expansion

Sun Aug 11, 2002 8:16 am

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
you can't buy time but you can sell your soul and the closest thing to heaven is to rock'n'roll

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