BlueShamu330s
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British Airways/IAG Aim For World Leadership

Tue Jan 10, 2012 12:56 pm

Interesting article:

Quote:

"It can be a fine line between survival and success, just as the blowtorch of a threatened existence provides a powerful motive to pursue ambitious goals.

Last month’s International Airlines Group (IAG)/British Airways move on bmi is only one more piece in the strategic kaleidoscope opening out in front of the Group Chairman, Willie Walsh. The world is his oyster at present. Answering a question following the bmi purchase announcement, Mr Walsh said that despite the uncertain economic environment that Europe’s politicians have created, this was a time of opportunity. His airline is well placed now to capitalise and, as bad news for others spells bargains in the marketplace, the time could well be ripe. In the process, London Heathrow Airport is firmly in the spotlight as Virgin Atlantic also remains a sale possibility. Yet for BA and all of its major rivals, the elephant in the room remains how to service shorthaul network connections profitably.

The “opportunity” for British Airways is not a modest one; it is to establish the carrier and Iberia as the world’s leading airline group. From British Airways’ precarious position just two years ago, as union pressures to preserve the status quo threatened to shut the airline down, the now-merged carrier is once again poised for greatness. 2012 will be a defining year for IAG........."
more in the link below

http://www.centreforaviation.com/ana...hip---and-long-term-survival-65790

Rgds
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AIR MALTA
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RE: British Airways/IAG Aim For World Leadership

Tue Jan 10, 2012 1:39 pm

I have read this article today and I have been surprised by the fact the shorthaul is being considered now as an important market to IAG. I remember that at some point after 2001, there were even rumours that BA would turn into an almost complete longhaul operation and that it won't serve the likes of AGP, RAK or NAP anymore.

A few years later, BA is still operating shorthaul and is actually expanding again there having added GOT, LUX and GIB from LHR and some other routes from ex GT.

Another thing that has surprised me is the higher cost base of LH or AF/KL when compared to IAG. However, LH seems to have a bigger shorthaul and regional operation that works better. How do they manage to do that?

All in all IAG being able to get hold of BMI is better for BA and might be the start of a long way up the rankings in the wold of aviation. I do believe BA will expand in Asia and Africa but it will also keep valuable shorthaul and domestic feed.
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peanuts
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RE: British Airways/IAG Aim For World Leadership

Tue Jan 10, 2012 1:56 pm

Quoting AIR MALTA (Reply 1):
shorthaul is being considered now as an important market to IAG.

It would have to be, if BA/IB is to survive long term. Otherwise it would become a Pan Am, a carrier without the short haul/domestic network (in BA/IB's case, a European network) to feed the long haul capacity. MAD and LHR will play crucial roles in this.

If BA wants to be a leader and fight the Middle Eastern carriers, a robust short haul network is an essential component to its operations.

There are ways to compete with EK and the likes. Many ways. But it will require a metamorphosis on AIG's part. Good to hear they are actually willing to take on the challenge. Let's hope union attitudes will be realistic and go along with the necessary steps.

[Edited 2012-01-10 06:05:01]
 
ozglobal
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RE: British Airways/IAG Aim For World Leadership

Tue Jan 10, 2012 2:04 pm

Quoting blueshamu330s (Thread starter):
The “opportunity” for British Airways is not a modest one; it is to establish the carrier and Iberia as the world’s leading airline group.

That will take a huge improvement in service culture at IB if premium customers are to see them as an attractive opiton. I know I need to be close to out of options before I fly IB in long haul J. If I do, I know better than to expect to enjoy anything more than a sleep. This is also the best way to 'enjoy' the cabin service  
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LX138
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RE: British Airways/IAG Aim For World Leadership

Tue Jan 10, 2012 2:10 pm

I always get alarmed when I hear airlines wanting to be the 'biggest' or wanting global domination.

However to add to this Willie Walsh has recently 'suggested new services to China, South Korea, Indonesia and Vietnam'. Sounds interesting, maybe Seoul might come back after all.

http://www.travelweekly.co.uk/Articl...s-purchase-of-bmi-a-good-deal.html

Discuss...  
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LHRFlyer
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RE: British Airways/IAG Aim For World Leadership

Tue Jan 10, 2012 2:19 pm

Before anyone comments, I don't think IAG/Willie Walsh has ever made a claim to aim for "world leadership". A major role in consolidation of the industry yes, but not world leadership.
 
Bongodog1964
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RE: British Airways/IAG Aim For World Leadership

Tue Jan 10, 2012 2:21 pm

Hot air and waffle, any EU based airline will always struggle whilst our concept of "fairness" allows competitors in, whilst we are restricted elsewhere.

Even our much quoted unrestricted airports in Continental Europe are constrained by planning laws, atc congestion, land availability, energy trading laws etc.
I'm sure WW would love to have the freedoms enjoyed by Emirates, Qatar etc.
 
commavia
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RE: British Airways/IAG Aim For World Leadership

Tue Jan 10, 2012 2:25 pm

IAG has a bright future built on a strong base. Building their operation at Heathrow through the BMI purchase will be a massive strategic leap forward.

Quoting LX138 (Reply 4):
However to add to this Willie Walsh has recently 'suggested new services to China, South Korea, Indonesia and Vietnam'. Sounds interesting, maybe Seoul might come back after all.

I definitely think these new slots will allow BA to open up plenty of new longhaul flying to emerging and growth markets - particularly in Asia. At a minimum, I think Seoul needs to be priority #1, along with perhaps Kuala Lumpur, Jakarta, possibly some new/expanded markets in China, and perhaps Ho Chi Minh City and/or Osaka, Nagoya, etc.

Quoting Bongodog1964 (Reply 6):
Hot air and waffle, any EU based airline will always struggle whilst our concept of "fairness" allows competitors in, whilst we are restricted elsewhere.

Even our much quoted unrestricted airports in Continental Europe are constrained by planning laws, atc congestion, land availability, energy trading laws etc.
I'm sure WW would love to have the freedoms enjoyed by Emirates, Qatar etc.

The main competitive disadvantage European carriers face relative to competitors like the Gulf carriers isn't about being "restricted" - it's about the systematic politically-driven vendetta against the industry in Europe. I firmly believe that by far the biggest benefit Gulf carriers get compared with BA, Lufthansa, Air France-KLM, etc. has nothing to do with open markets vs restrictions, or subsidies, or cheap fuel - it's about operating from home markets where the governments go out of their way to do everything possible to make the local airlines successful. In Europe these days it appears to be precisely the opposite.
 
HUYfan
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RE: British Airways/IAG Aim For World Leadership

Tue Jan 10, 2012 11:04 pm

Seoul, Osaka are likely when the 787s arrive. I would alse say KUL has a chance along with more China. I think Jakarta is unlikely, and Vietnam depends on the growth of tourism in the country.

Kind regards

Mike
 
Sydscott
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RE: British Airways/IAG Aim For World Leadership

Tue Jan 10, 2012 11:17 pm

Quoting commavia (Reply 7):
along with perhaps Kuala Lumpur, Jakarta,

Jakarta would be a good tag on for a flight to Kuala Lumpur or as extension of the BKK service now that it won't continue to Sydney.
 
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lightsaber
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RE: British Airways/IAG Aim For World Leadership

Wed Jan 11, 2012 12:04 am

Quoting commavia (Reply 7):
The main competitive disadvantage European carriers face relative to competitors like the Gulf carriers isn't about being "restricted" - it's about the systematic politically-driven vendetta against the industry in Europe.

I've proposed that the only reason the mid-east hubs were able to become significant hubs is due to the artificial constrains on European hubs:
1. Put in a night curfew, enables the late night waves in the mid-east.
2. Constrict flights, that drives up fares that help enable new entrants.
3. Contricting flights also means that new non-stop markets cannot be served. For BA/LHR that would have required the 3rd runway. Splitting hubs (LHR/LGW) does not work as that eliminates 'easy connections.'
4. Lack of hotels and other infrastructure at LHR that would facilitate connections. I'm not saying they're not there, I'm implying they aren't up to the mid-east standards (e.g., DXB will gain an additional 5* and 4* in airport hotel with concourse 3).

IAG will do well with the BMI slots. That said, it would be better for them to have the 3rd runway at LHR and T6. It won't happen and I accept that... Hence why hubbing will shift to MAD, BER, and competing hubs.

The european hubs also have to deal with upcoming new aircraft that should help fragment the TATL market. Those hubs will have a choice:
1. Accomodate the smaller gauge TATL fragmentation that will double as feed to Asia or
2. Accept that the TATL hubbing will occur on the other side of the Atlantic with other carriers, including the mid-east carriers snipping off the connecting traffic.

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AIR MALTA
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RE: British Airways/IAG Aim For World Leadership

Wed Jan 11, 2012 8:38 am

Interesting article today about the uncertainties over BMI. BMI might not have enough cash to go on after March 31. If this happens LH or IAG could walk away from the deal. Somewhere in this article, it is said that IAG is the best outcome for BMI's problems. Hope the EU does not take much more time to sort this out.

http://www.ft.com/intl/cms/s/0/424c7...0-3b9b-11e1-a09a-00144feabdc0.html
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mikey72
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RE: British Airways/IAG Aim For World Leadership

Wed Jan 11, 2012 9:35 am

Quoting AIR MALTA (Reply 11):
Hope the EU does not take much more time to sort this out.

  

Sorry..I'm not laughing at what you said... just the irony when related to the current financial debacle engulfing the EU.

Besides, anything that is for the benefit of either France or Germany within the EU will be fast-tracked through any bureaucracy and red tape pretty quickly.

So I wouldn't worry...it wil happen soon.

[Edited 2012-01-11 02:05:48]
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AIR MALTA
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RE: British Airways/IAG Aim For World Leadership

Wed Jan 11, 2012 10:15 am

Quoting mikey72 (Reply 12):
Sorry..I'm not laughing at what you said... just the irony when related to the current financial debacle engulfing the EU.

Oh yeah, but when it goes to BA, things also get complicated.
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incitatus
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RE: British Airways/IAG Aim For World Leadership

Wed Jan 11, 2012 3:37 pm

Quoting commavia (Reply 7):
or cheap fuel - it's about operating from home markets where the governments go out of their way to do everything possible to make the local airlines successful.

Mind you with the help of the EU which finances a very large aircraft that is sold by the dozens to the Middle Eastern carriers for a very low price. Go figure
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