cx750
Posts: 150
Joined: Tue Dec 07, 2004 7:32 am

BA India Profitability/Margins

Thu Feb 24, 2005 1:42 am

Although it is evident that British Airways does very well in India, does anyone have specifics, i.e. load factors, margins, profitability?
 
TKMCE
Posts: 819
Joined: Thu May 16, 2002 12:18 pm

RE: BA India Profitability/Margins

Thu Feb 24, 2005 3:11 pm

BA flights are full ex Chennai - so says them! But full doesnt always mean profitabilty - and competition in the route is fierce!

As I understand BA ex India has commonrated fares to DEL/BOM/MAA/CCU/BLR and HYD. Dont think this is a smart move as this means that a HYD BOM or BLR BOM sector is built into this fare on S2 or 9W and unless BA gets a very good pro rata deal, their revenue is going to take a hit. I would say this move is more a fire fighting measure to counter LH's services to BLR and the recently started HYD services.
 
jaysit
Posts: 10186
Joined: Thu Jun 01, 2000 11:50 pm

RE: BA India Profitability/Margins

Thu Feb 24, 2005 3:24 pm

From what I've heard (and experienced), BA's load factors in First, ClubWorld, and WTPlus to India are very high. In effect, they have a hold on premium fare paying passengers on their India routes. Thus, they can discount cattle class all they want and still make a profit.
Atheism is Myth Understood.
 
Nimish
Posts: 2922
Joined: Mon Feb 14, 2005 6:46 pm

RE: BA India Profitability/Margins

Thu Feb 24, 2005 4:23 pm

Well, to give some colour to the pricing, BA is able to offer confirmed seats on BLR-LHR-BLR in M class (with BLR-BOM on S2) at Rs 33K, while the same trip booked at the same time with LH (Q class) is Rs 44K, and seats are still waitlisted. This is for a booking made last week for travel this weekend.

Quoting TKMCE (reply 1):
BLR BOM sector is built into this fare on S2 or 9W and unless BA gets a very good pro rata deal, their revenue is going to take a hit


I'm sure they have an attractive pricing arrangement with S2, since the common rated fare is applicable for S2 only.
Incredible India!
 
B747-437B
Posts: 8777
Joined: Thu May 30, 2002 6:54 am

RE: BA India Profitability/Margins

Thu Feb 24, 2005 6:57 pm

Quoting Nimish (reply 3):
BA is able to offer confirmed seats on BLR-LHR-BLR in M class (with BLR-BOM on S2) at Rs 33K, while the same trip booked at the same time with LH (Q class) is Rs 44K, and seats are still waitlisted


BA has added a second flight to Mumbai on selected days during the winter open skies period, so they have a huge amount of last-minute excess capacity to dump.
"The A340-300 may boast a long range, but the A340 is underpowered" -- Robert Milton, CEO - Air Canada
 
behramjee
Posts: 4388
Joined: Sat Aug 02, 2003 4:56 am

RE: BA India Profitability/Margins

Thu Feb 24, 2005 7:06 pm

According to Branson in December when the UK CAA handed out the India flight allocations...he claimed that BA made an overall profit in 2003 of 30 million dollars on its UK-INDIA-UK routes...any truth to that?
 
karan69
Posts: 2706
Joined: Mon Oct 04, 2004 7:57 pm

RE: BA India Profitability/Margins

Thu Feb 24, 2005 7:22 pm

I'm sure they have an attractive pricing arrangement with S2, since the common rated fare is applicable for S2 only.

That is very strange, considering that they have a tie up with Jet Airways.

Jaysit is right about the fact that they make good revenue from "premium pax", mostly all major Bollywood celebrities fly BA .

Also i had a word with the manager for South and Central India, who told me that atleast from BOM and DEL they have very high loads on club class
 
IndianGuy
Posts: 3126
Joined: Fri Jul 07, 2000 3:14 pm

RE: BA India Profitability/Margins

Thu Feb 24, 2005 9:03 pm


I'm sure they have an attractive pricing arrangement with S2, since the common rated fare is applicable for S2 only.

In these kind of deals (between a domestic carrier and a carrier like BA), can the domestic leg be taken on any flight/routing or is it for specific flights only? For eg does a pax booked on LON-BLR necessarily have to take the 0830 hour connx to BLR o can he opt for any of the other flights operating that day? Also is the BOM-BLR leg treated as full Y/J or is it discounted tix?
 
Nimish
Posts: 2922
Joined: Mon Feb 14, 2005 6:46 pm

RE: BA India Profitability/Margins

Thu Feb 24, 2005 10:51 pm

Quoting Indianguy (reply 7):
can the domestic leg be taken on any flight/routing or is it for specific flights only


I think the S2 flight can be changed at your choice (for instance take the morning flight or previous day flight instead of the night flight for BLR-BOM).

Quoting Indianguy (reply 7):
Also is the BOM-BLR leg treated as full Y/J or is it discounted tix?


The class booked on S2 is "W" - whatever that stands for.
Incredible India!
 
TKMCE
Posts: 819
Joined: Thu May 16, 2002 12:18 pm

RE: BA India Profitability/Margins

Thu Feb 24, 2005 11:04 pm

Ok - reg whether it is Jet or Sahara or both, I was talking to a BA bloke yesterday and he was quite clear it was both.

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