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leelaw
Topic Author
Posts: 4517
Joined: Sat May 29, 2004 4:13 pm

Pensions Before Planes, BA's Walsh Sresses

Thu Jun 08, 2006 3:00 pm

British Airways intends to resolve its pension issue before it moves forward with significant long-haul aircraft orders and does not want to take delivery of any new types ahead of its 2008 move into London Heathrow's Terminal 5, CEO Willie Walsh confirmed earlier this week at a meeting of oneworld executives ahead of the IATA AGM.

...Walsh added that BA does not feel pressure to move quickly on successor types. "We have a relatively young fleet. Replacement is not an immediate requirement," he said, adding that fleet expansion will come ahead of replacement...

...With regard to the A380, the carrier needs to be satisfied that the additional cost and complexity associated with a new fleet type is justified by increased capability and performance. "The A380 is in evaluation, but you have to bring a strong argument for BA to have [it] in our fleet," he stated. He noted that BA operates 57 747s and does not see the A380 "as a necessary replacement for this huge number of aircraft..."


http://atwonline.com/news/story.html?storyID=5314

Walsh continues to stick to his knitting since taking the helm.
Lex Ancilla Justitiae
 
scouseflyer
Posts: 2192
Joined: Wed Apr 26, 2006 7:02 pm

RE: Pensions Before Planes, BA's Walsh Sresses

Thu Jun 08, 2006 7:02 pm

So we don't reckon that the 20 copies of the T7 are they are UFo are for BA then.
 
Lumberton
Posts: 4176
Joined: Fri Jul 29, 2005 7:34 am

RE: Pensions Before Planes, BA's Walsh Sresses

Thu Jun 08, 2006 7:08 pm

Quoting Scouseflyer (Reply 1):
So we don't reckon that the 20 copies of the T7 are they are UFo are for BA then.

I think that's a safe bet. BTW, what kind of a "strong argument" would persuade Mr. Walsh that the A380 would work for BA?
"When all is said and done, more will be said than done".
 
trekster
Posts: 4319
Joined: Fri Dec 26, 2003 2:47 am

RE: Pensions Before Planes, BA's Walsh Sresses

Thu Jun 08, 2006 7:08 pm

The BA intranet has a talking point about the 380, and should we get it.

I personally dont think we will. I see us getting the new 747 as its current models are doiong great for the airline, or even one ofthe other new airbus/boeing jets, but not the 380
Where does the time go???
 
scouseflyer
Posts: 2192
Joined: Wed Apr 26, 2006 7:02 pm

RE: Pensions Before Planes, BA's Walsh Sresses

Thu Jun 08, 2006 7:10 pm

Quoting Lumberton (Reply 2):
I think that's a safe bet. BTW, what kind of a "strong argument" would persuade Mr. Walsh that the A380 would work for BA

Other airlines making a [email protected] of profit with them?
 
HS748
Posts: 621
Joined: Tue Oct 11, 2005 3:01 am

RE: Pensions Before Planes, BA's Walsh Sresses

Thu Jun 08, 2006 7:46 pm

This is old news and gets posted at least once a week.
 
Danny
Posts: 3749
Joined: Thu Apr 25, 2002 3:44 am

RE: Pensions Before Planes, BA's Walsh Sresses

Thu Jun 08, 2006 8:00 pm

Quoting Lumberton (Reply 2):
BTW, what kind of a "strong argument" would persuade Mr. Walsh that the A380 would work for BA?

This "strong argument" would have to be a sequence of events actually. First, A380 have to be proven in service as reliable aircraft offering excellent CASM. Then Virgin, Singapore, Qantas etc will get competetive advantage over BA and will start to put huge pressure on BA on the routes that they compete with lower tickets prices. If that happens Willy Walsh will have no choice but to get it as well.
 
Oykie
Posts: 1951
Joined: Sat Jan 07, 2006 9:21 am

RE: Pensions Before Planes, BA's Walsh Sresses

Thu Jun 08, 2006 8:00 pm

After reading Walsh statement I think that in the future we will see fewer planes in the A380/747 range. They currently have 54 747 which I believe after reading this will be a mix of 777-300ER and 747/A380.

Quoting Lumberton (Reply 2):
I think that's a safe bet. BTW, what kind of a "strong argument" would persuade Mr. Walsh that the A380 would work for BA?

I would think that the strong argument for getting the A380 would be if it performs much better than anticipated when it enters service.

BTW would it be possible for BA not to buy either the 787 or the A350 and opt for the 777 as a replacement for the 767-300ER instead? That would reduce the number of aircraft types in the BA fleet.
Dream no small dream; it lacks magic. Dream large, then go make that dream real - Donald Douglas
 
vv701
Posts: 5895
Joined: Fri Aug 19, 2005 10:54 am

RE: Pensions Before Planes, BA's Walsh Sresses

Thu Jun 08, 2006 10:42 pm

The last time the subject of this thread - pensions - got even a mention was the seventh word of the first sentence of the thread!
 
leelaw
Topic Author
Posts: 4517
Joined: Sat May 29, 2004 4:13 pm

RE: Pensions Before Planes, BA's Walsh Sresses

Fri Jun 09, 2006 7:11 am

Quoting Danny (Reply 6):
Then Virgin, Singapore, Qantas etc will get competetive advantage over BA and will start to put huge pressure on BA on the routes that they compete with lower tickets prices. If that happens Willy Walsh will have no choice but to get it as well.

I'm not sure how effective such a competitive strategy will be against BA at fortress LHR, where BA has a lot of slots to play with; consequently, there are a lot scheduling options to adjust capacity to meet market conditions. However, don't be surprised to see the yields plummet on the city pairs constituting the Kangaroo Route where there'll be a lot of early A380 action and presumedly a significant spike in capacity; things could get brutal.

FWIW, someone posting in today's "A380 progress" thread claims that VS will convert its order for A380s into an order for A350s.
Lex Ancilla Justitiae
 
Ken777
Posts: 10037
Joined: Thu Mar 11, 2004 5:39 am

RE: Pensions Before Planes, BA's Walsh Sresses

Fri Jun 09, 2006 7:23 am

Taking care of a £2+ billion pension problem does seem like a wise idea for now. I don't see that BA needs to rush anything.

On the 380 side they have plenty of time to see how the plane does after 6 to 12 months of ironing out any initial kinks. When normal daily operations results are available they can make a decision.

Since Boeing hasn't sold out the first 5 years of 748 production BA has no need to rush into this plane either.

On the 787 side there is also plenty of time to wait and see. I wouldn't be surprised to see some refundable deposits on slots if Boeing ramps up production, but no orders for a while.

The 350/370 is the same. Since there is no need to rush to order why worry about it? Just let things mature and decide later.

With the new LHR terminal demanding attention and a need to move on pensions I think BA has their hands full these days. Get the pension issue resolved at a level that doesn't get the workers angry and move on the future when it's comfortable to do so. Both Boeing and Airbus will be happy to accommodate then.
 
jacobin777
Posts: 12262
Joined: Sat Sep 11, 2004 6:29 pm

RE: Pensions Before Planes, BA's Walsh Sresses

Fri Jun 09, 2006 9:03 am

Quoting Leelaw (Reply 9):

I'm not sure how effective such a competitive strategy will be against BA at fortress LHR, where BA has a lot of slots to play with; consequently, there are a lot scheduling options to adjust capacity to meet market conditions. However, don't be surprised to see the yields plummet on the city pairs constituting the Kangaroo Route where there'll be a lot of early A380 action and presumedly a significant spike in capacity; things could get brutal.

i've been mentiong this ad nauseam...

current A380 purchasers who will by flying the infamous Kangaroo Route..

1)SQ
2)QF
3)EK-probable yield killer
4)MH
5)VS-Branson mentioned they would like to run it at this route (if not, then the A380 to LAX and/or JFK)....

add these potential carriers....

6)QR -have already mentioned they will
7)EY- follow EK
"Up the Irons!"

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