Britair
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Joined: Fri Aug 27, 1999 3:50 am

British Airways Is Winning Back Traffic From The N

Sat Dec 07, 2002 12:49 am

Forward bookings on British Airways' flights show year on year increases of over 41 per cent from some of its major UK regional bases over the Christmas and New Year period, with Edinburgh and Glasgow proving to be the top performers.

In April this year, the airline was the first traditional carrier to restructure its fares policy, throwing out booking restrictions and slashing fares by up to 80 per cent.

More recent reductions introduced fares as low as £49 return on domestic flights and £59 return for European flights.

Mike Bathgate, British Airways' General Manager, Commercial said: "We continue to compete effectively with the no-frills airlines by offering full service on the ground and in the air, and providing excellent value fares available to book all year round".

Forward bookings from Edinburgh are 41 per cent up on last year; Glasgow is up 31 per cent; Birmingham by 30 per cent and Manchester has increased by 25 per cent over the same period last year.

*The figures quoted are correct as at 6 December, 2002 and are for the period 16 December - 6 January. They include services operated by franchise and subsidiary partners.


 
Britair
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RE: British Airways Is Winning Back Traffic From The N

Sat Dec 07, 2002 12:51 am

ooops...the whole title was supposed to be:

British Airways is winning back traffic from the no-frills airlines.

 Smile
 
David_itl
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Joined: Wed Jun 27, 2001 7:39 am

RE: British Airways Is Winning Back Traffic From The N

Sat Dec 07, 2002 12:55 am


Having bought the December timetable for MAN not more than an hour ago, I quote thus from the 2001 annual review:

BA/British Regional continue to perform consistently badly at MAN, losing 4.9% and 3.0% of their domestic and international passengers respectively during 2001. Most other scheduled carriers made modest gains. BA's share of our key scheduled international market has dropped from 31.5% in 1990 to 20.2% in 2000 and now to just 18.6% - "the world's favourite airline"?.

David
 
Britair
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RE: British Airways Is Winning Back Traffic From The N

Sat Dec 07, 2002 1:03 am

David, while I take your claim as valid, it should also be remembered that BA/CitiExpress at Manchester has gone through some significant changes in the past 12 months most notably the replacement of the 737 fleet with BAe146/AVRO RJ's. This drop in capacity is reflected in the passenger number decline.

However, while I agree the regional focus has slipped, over all the signs are encouraging....


BA's passenger traffic up by 5.5%

British Airways Traffic and capacity statistics for November show that although the travel market remains subject to global economic and political uncertainty, the revenue outlook has stabilised.

In November 2002, overall load factor improved by 5.0 points to 66.5%.

Passenger capacity, measured in Available Seat Kilometres, was 1.3% below November 2001 while traffic, measured in Revenue Passenger Kilometres, rose by 5.5%

This resulted in a passenger load factor improvement of 4.4 points versus last year, to 68.3%.The rise in traffic comprised a 5.0% increase in premium traffic and a 5.6% increase in non-premium traffic. Cargo, measured in Cargo Tonne Kilometres, increased by 11.5%.

Strategic developments

BA announced its longhaul flying programme for the summer 2003 season recentley which reflects the airline's drive to maximise revenue on profitable routes, reduce its cost base and work its assets harder.

Seven additional weekly flights between Heathrow and Chicago will be added next year plus five additional weekly flights between Heathrow and Newark, New York, three additional weekly flights between Heathrow and Toronto and three additional weekly flights between Gatwick and Houston.

Services from Heathrow to Houston which currently operate via Washington will operate via Chicago. Flights to Melbourne via Singapore will also increase from five per week to a daily service.

On South American routes, the airline's daily service to Rio de Janeiro via Sao Paulo will reduce to four flights per week. A non-stop service to Buenos Aires, which operates three times per week, will fly, in future, via Sao Paulo. These changes are due to the economic downturn in Brazil and Argentina which has led to a drop in passenger demand on these routes.

In November the airlines low fares to Europe got even lower with the introduction of a special early booking fare. The airline now offers a new lower fare on 74 routes with flights from £49 return in the UK and £59 to Europe, when purchased at least 30 days in advance of travel. There are no Saturday night stay restrictions and the fare is fully combinable with all other fares.


So while Manchester may have fallen i think it is unfair to say we are no longer "The World's Favourite" based on this!!!

Cheers  Smile

 
David_itl
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RE: British Airways Is Winning Back Traffic From The N

Sat Dec 07, 2002 1:27 am

It's a good job I didn't quote the next sentence comprising 4 words, the last 3 of which was "on you, BA". Guess the word that starts that sentence!

Similar story with cargo with BA having slipped from 3rd place to 6th place with a 22% decline in cargo throughput! (That sentence appears in this section as well, this time with the word "again" added).

If someone could devolve the regional operation and make it an independent unit, it would help stop the perceived BA's London-only bias that has been built up i.e. operate as few as possible long-haul flights from here and persuade all long-haul "partner" airlines to drop MAN and make passengers go on the shuttle services instead before going to where they want to go!

David
 
Tango-Bravo
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Joined: Sun Jun 17, 2001 1:04 am

RE: British Airways Is Winning Back Traffic From The N

Sat Dec 07, 2002 1:42 am

Since I don't see pax #s declining for BA's no-frills competiton, looks to me like more of a case of the "Southwest Effect" at work in the U.K. than BA "winning back traffic." Reasonable, equitable fares without all the convoluted games and restrictions, along with reliable service, benefits all airlines in a given market; there's plenty of traffic for all to succeed when you offer what people really want: to get from point A to point B quickly at reasonable cost, with minimal hassle. The games "full-service" airlines think they must play (with fares and perks) is exactly what keeps traffic below its potential levels.
 
Britair
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RE: British Airways Is Winning Back Traffic From The N

Sat Dec 07, 2002 1:50 am

David I see your points. Not that I want to start a "London Airways" thread, I can only say that BA, (as you know) is largely driven by profit, unfortunately the yields just arent there in the regions. Sad but true. I know the CitiExpress team well and times are tough for them right now. The money isnt there like it used to be before the low cost days. Our partners have acted due to financial losses as well, we never ordered Cathay or Qantas to discontinue services to MAN.

On the bright side BA is still a major employer in the regions, with big centres in Manchester (CitiExpress/ContactBA/Rapport), Newcastle (contactBA/IM), Belfast (ContactBA), Glasgow (ContactBA/Exec Club), Cardiff (BAMC), Bristol (CitiExpress), Peterborough (Accoladia). So not everything is London-centric.  Smile

 
Skymonster
Posts: 3428
Joined: Fri Oct 12, 2001 7:53 pm

RE: British Airways Is Winning Back Traffic From The N

Sat Dec 07, 2002 2:14 am

I've never been a big fan of BA, but as far as I'm concerned its simple:

At the moment, BA on many occasions is offering a lower price for a more attractive product than are the LoCos... Geneva last week and again next week, Nice this week, the list goes on. On each occasion, for similarly timed services, BA offered a lower fare and threw in the gin and tonics. I'm in the fortunate position where I don't have to suffer the trials and tribulations of the LoCos (thank God), but even if I did whilst BA continues to offer an attractive product at a competitive price they will be providing my seats.

Whilst BA's yields may be taking a hit with their lower fares strategy, I think that the message is beginning to get across. The ads on TV are effective, and if anyone is in any doubt check out BA's share price - already up by a large margin (getting on for 100%), they're likely to go back into the FTSE 100 very shortly, and analysts are putting a taget price on them double what it is today.

Andy
There are old pilots and there are bold pilots, but there are no old bold pilots

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