cusaeng
Posts: 90
Joined: Thu Jan 12, 2006 8:27 pm

Financial Impact Of Aug Disruption To Ba

Wed Sep 06, 2006 8:48 am

from ba intranet
"During the period August 10-17 the airline cancelled some 1,280 flights which affected some 80,000 customers. The airline estimates that the financial impact for the month of August was around £40 million. This includes lost revenue and increased costs of hotel accommodation, catering and baggage repatriation."

bbc report

how can one put a price on the number of peoples lives that could have been waisted by terrorists.

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cu-saeng ... I wanna fly but they wont let me ! grrr
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I wanna fly but they wont let me :( grr
 
steve6666
Posts: 435
Joined: Thu Sep 04, 2003 1:58 am

RE: Financial Impact Of Aug Disruption To Ba

Wed Sep 06, 2006 8:58 am

Quoting Cusaeng (Thread starter):
how can one put a price on the number of peoples lives that could have been waisted by terrorists.

It's irrelevant to this calculation, as BA are stating the losses/increased costs or opportunity costs of unused capacity arising on them, not society as a whole.

The government is responsible for deciding the social costs of lost lives etc and responding accordingly. It's an area of economics called cost-benefit analysis. Either the government thought the potential costs of loss of life etc outweighed the potential benefits of maintaining capacity, or they thought that maintaining a general level of hysteria would benefit the current regime in keeping the masses in check. Make your own mind up.
eu nasci ha dez mil anos atras, e nao tem nada nesse mundo que eu nao saiba demais
 
cusaeng
Posts: 90
Joined: Thu Jan 12, 2006 8:27 pm

RE: Financial Impact Of Aug Disruption To Ba

Wed Sep 06, 2006 9:04 am

I dont think its irrelevant at all.

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cu-saeng ... I wanna fly but they wont let me ! grrr
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[Edited 2006-09-06 02:05:38]
I wanna fly but they wont let me :( grr
 
wrighbrothers
Posts: 1807
Joined: Wed Jul 27, 2005 8:15 am

RE: Financial Impact Of Aug Disruption To Ba

Thu Sep 14, 2006 12:43 am

Quoting Cusaeng (Thread starter):
how can one put a price on the number of peoples lives that could have been waisted by terrorists.

We can't, but the whole point is, BA is a business, and when businessses lose money it's bad news ,for them atleast, and while BA aren't arguing about the risk to travelers, I doubt they are too pleased withthe amount of money they lost.

Quoting Cusaeng (Thread starter):
The airline estimates that the financial impact for the month of August was around £40 million.

If I remember correctly, that was the same amount of money that BA lost during the Gate Gourmet strike.

Wrighbrothers
Always stand up for what is right, even if it means standing alone..
 
David L
Posts: 8547
Joined: Tue May 18, 1999 2:26 am

RE: Financial Impact Of Aug Disruption To Ba

Thu Sep 14, 2006 12:49 am

Quoting Cusaeng (Thread starter):
how can one put a price on the number of peoples lives that could have been waisted by terrorists.

Should they just tell their shareholders "you don't need to know - don't worry about it"?

As Steve6666 says, they're not "putting a price on the number of peoples lives that could have been waisted by terrorists". They're putting a price on how much the cancelled flights and extra expenses cost. It's relatively simple arithmetic.