Advertisement


British Airways

Aviador

Administrator
Staff member
I've upgraded to support F4A!
Jan 12, 2009
12,325
3,249
323
HEAD OFFICE
Thread starter Admin #1
BA flight makes emergency landing in Nigeria

A British Airways plane bound for London with 155 passengers and 14 crew on board made an emergency landing in northern Nigeria on Saturday after smoke was detected in the cockpit, the airline said. The pilot of flight BA 82, which originated in Nigeria's capital Abuja, safely landed the Boeing 777 aircraft in Kano.

"The flight crew detected smoke in the cockpit and took the decision to divert as a precaution," British Airways said on Sunday.

"We apologise to passengers for the inconvenience caused."

Smoke was first detected in the cockpit early on Saturday during a flight from London to Abuja. BA said its engineers inspected the plane and believed the problem had been fixed.

About an hour after the plane departed from Abuja, crew again reported smoke in the cockpit and diverted to Kano.

A BA official said the passengers will be flown to London on another flight as quickly as possible.

Africa's most populous country suffered a series of air disasters in 2005 and 2006 which killed hundreds of people, including scores of school children.

Experts say many Nigerian airports do not have effective navigational, surveillance or communication equipment, while the emergency services lack proper search and rescue abilities.

Source
 

Advertisement


Aviador

Administrator
Staff member
I've upgraded to support F4A!
Jan 12, 2009
12,325
3,249
323
HEAD OFFICE
Thread starter Admin #2
British Airways warns of £150m loss

British Airways has issued a profits alert, with a warning that it is heading for a £150m operating loss this financial year, hit by the economic downturn and the weak pound.

Shares in the UK flag-carrier fell 6pc to 137.3p by mid-afternoon trading, further weakening BA’s negotiating hand in its all-share merger talks with Spain’s Iberia.

BA said: “Further economic weakness in January and the outlook for February and March combined with the fall in sterling are impacting our outlook for the year”.

While BA said revenue guidance remained unchanged, with sales expected to be up at least 4pc in the financial year to March 31, the airline now expects a full-year operating loss.

BA’s previous guidance, at the half-year results on November 7, said: “We remain focused on delivering a small operating profit in the current financial year.”

BA added that it now expected to make a third-quarter operating loss of around £50m, when it reports on February 6, though this is after a £56m non-cash charge relating to currencies.

While BA has benefited from passengers buying tickets in dollars and euros, these gains have been more than offset by the impact of the weak pound on non-fuel costs. BA now expects such costs to rise year-on-year from an expected 5pc to 8pc.

These expenses include the costs of staff, ground handling operations and landing charges at European and US airports where BA has to pay in the local currencies and is hit by sterling’s weakness.

A spokesman said the benefits to revenues from the weaker pound were “more than outweighed by the dollar and euro costs that we have”.

BA added that fuel guidance was “largely unchanged at around £3bn as the lower price of fuel is being offset by a lower fuel hedging benefit for the year and currency impacts”.

Last week competitor Air France/KLM warned on profits, while across the Atlantic both American Airlines and United issued fourth-quarter losses.

The BA spokesman said: “The whole industry is facing the same conditions.”

Source
 

Aviador

Administrator
Staff member
I've upgraded to support F4A!
Jan 12, 2009
12,325
3,249
323
HEAD OFFICE
Thread starter Admin #3
BA to halve emissions by 2050

British Airways has pledged to halve its CO2 emissions by 2050, saying that this is the most ambitious target set by any airline. It has promised to reduce its net carbon output from 16 million tonnes in 2005 to 8 million by the middle of the century.

Chief executive Willie Walsh said: ‘Halving net CO2 by 2050 is an extremely challenging target. But it is one I am sure we can achieve.’ He said the cuts would be achieved through investment in cleaner aircraft, use of alternative fuels, more efficient flight routings and the spread of emissions trading from Europe to the whole world.

He added: ‘We have taken climate change issues very seriously for a long time. More than a decade ago, we became the first airline to publish fuel efficiency targets – and we have achieved an improvement since then of almost 30%.'

‘We are the only airline to have experience of emissions trading, and we have helped fund research into lower-carbon aviation fuels. We are currently working closely with Rolls-Royce to develop alternative fuel opportunities.’

Source
 

Aviador

Administrator
Staff member
I've upgraded to support F4A!
Jan 12, 2009
12,325
3,249
323
HEAD OFFICE
Thread starter Admin #4
Airline reports loss of £70m

British Airways is considering a pay freeze for its 42,000 staff after reporting a £70m loss in the first nine months of its financial year.

BA is also looking at possible further voluntary redundancies and is talking to unions over "pay and productivity".

It reported a £1bn increase in costs to £7bn in the nine-month period following last year's record fuel prices and more recently the weakness of the pound.

Source
 

Aviador

Administrator
Staff member
I've upgraded to support F4A!
Jan 12, 2009
12,325
3,249
323
HEAD OFFICE
Thread starter Admin #5
BA hints at job losses as revenue falls

British Airways has raised the possibility of significant job losses in the coming year and warned that its revenue will fall by 5 per cent.

The airline was updating shareholders on its outlook for the year and hinted that it may have to pay for job losses. The company has already cut the headcount in management by about 500 from 1,400 but these costs have been accounted for.

The airline has so far declined to speculate on whether jobs would also be lost from cabin crew and its operations division. BA is negotiating with trade unions to freeze the pay of its 45,000 staff.

In a statement BA said: "A similar operation result for 2009-10 to that forecast for 2008-09 has been targeted, before any severance costs in 2009-10."

BA has said that it expects an operational loss of £150 million in the year to the end of March and the airline's latest guidance suggests that the losses next year will be similar.

The carrier said that revenue would fall from an estimated £9 billion this year by 5 per cent, or around £450 million.

BA will also cut capacity by 2 per cent this summer to reflect the downturn in demand from passengers. It has already cut capacity by 3 per cent.

One positive aspect is that lower oil prices will enable BA to cut its fuel bill by £220 million next year after a £950 million increase this year.

BA said yesterday that business and first class passenger numbers had fallen by 20 per cent last month because of the recession and heavy snow. Economy passenger numbers were down 5.5 per cent.

Source
 

Aviador

Administrator
Staff member
I've upgraded to support F4A!
Jan 12, 2009
12,325
3,249
323
HEAD OFFICE
Thread starter Admin #6
British Airways Could be Headquartered in Spain

After merging with Iberia, the government of the United Kingdom says that they will not intrude on British Airways being based in Spain. Both British Airways and Iberia are anticipated to continue operations as separate companies under a new parent company once the agreement is finalized. However, the parent company may be based in Britain or Spain.

Geoff Hoon, the Transport Secretary, says that they will be totally at ease if the companies make the decision to base the parent company in Spain. Using the Madrid and Heathrow airports as double hubs with combined operations is strategic for the future and may be very successful, he continued. However, both are private companies, which is crucial to Britain, Hoon said. He also added that it was the governments who decided what was best to do at one time, and he doesn’t think governments will be very good at deciding these types of things.

It is likely that the new company will retain listings both in Madrid and London. Willie Walsh, the Chief Executive of British Airways, is anticipated to continue working in his new position in the airline, while Fernando Conte, the Iberia Chairman, will become the Chairman over both carriers.

Another possible sticking point in the details of the merger are the stakes that each companies’ investors will have in the new parent company. Reports in Spain indicate that the shareholders of British Airways will only have a 55% hold in the new company, which is down from the almost 70% that was proposed when the merger was announced.

Source
 

Aviador

Administrator
Staff member
I've upgraded to support F4A!
Jan 12, 2009
12,325
3,249
323
HEAD OFFICE
Thread starter Admin #7
Perhaps we should change the airlines nick name from 'London Airways' to 'Madrid Airways'....? :rolleyes:
 

Aviador

Administrator
Staff member
I've upgraded to support F4A!
Jan 12, 2009
12,325
3,249
323
HEAD OFFICE
Thread starter Admin #8
BA may clip Concorde’s wings and sell her to Dubai

There is some corner of a foreign desert that is for ever England. Dubai already has the Queen Elizabeth 2, the world’s fastest cruise ship, and now it is bidding for Concorde, the fastest airliner.

Forty years ago tomorrow, the British version of the graceful delta-winged aircraft took to the skies on its maiden flight.

The 22-minute journey made by 002 from Filton, Bristol, to Fairford, Gloucestershire, prompted an outpouring of national pride that swept aside complaints about the cost, soot and, of course, the deafening roar.

Yet the anniversary celebrations will be overshadowed for many Concorde enthusiasts by the disclosure that British Airways may betray a promise to put a Concorde on public display at Heathrow and instead cut it into pieces and ship it to the Gulf.

A Dubai-based consortium, advised by former BA Concorde crew, is planning to turn the aircraft into a tourist attraction, possibly on one of the manmade palm-shaped islands. It would be jointly marketed with the QE2, which was sold to Dubai last year to become a floating hotel.

The aircraft’s wings would have to be sliced off before it could be loaded on to a ship.

BA grounded its seven-strong Concorde fleet six years ago and gave six to museums. But it kept one, Alpha Bravo, and for the past six years hid it away behind the airline’s engineering base at the eastern end of Heathrow. Only those who know where to look will see the distinctive slender nose.

By contrast, an Air France Concorde stands proudly on a plinth outside the airline’s headquarters at Charles de Gaulle airport, Paris. Another one is preserved at the Paris Air and Space Museum by former engineers who regularly run the electronic and hydraulic systems.

BA ordered in 2003 that Concorde’s systems should be disabled. Jock Lowe, the marque’s former chief pilot, accused the airline at the time of undermining efforts to operate heritage flights.

Despite making up to £20 million profit a year from Concorde during 27 years of commercial flights, BA is refusing to help any of the groups seeking to get the aircraft back in the air. It has repeatedly rejected requests to publish a feasibility study. BA claims it showed that it would be too expensive, but it will not share the figures with the Save Concorde Group, which believes it could raise sponsorship for a return to flight. A BA spokesman said: “It is an internal document and wasn’t intended to be shared. It has commercial information in it.”

The airline has also been distancing itself from Concorde in its branding. Two years ago, BA removed a model of Concorde from a roundabout on the approach road from the M4 to Heathrow where it had been for 16 years. It has been replaced with a model of an Emirates Airbus A380 superjumbo.

Ben Lord, of the Save Concorde Group, said: “Sending it to Dubai would be a kick in the teeth for Britain’s aviation heritage. Chopping off its wings and putting it on a ship would be the final insult.”

A source close to the Dubai consortium said it would spend several million pounds restoring the aircraft’s interior, much of which was removed and used as spares on other Concordes. He said: “If any Concorde was going to return to flight, Alpha Bravo would not be the one because it did not have the safety modifications made to others after the Paris crash in 2000. It would be very well taken care of in Dubai.”

BA admitted that it was considering removing Alpha Bravo from Heathrow, but refused to comment on its discussions with the Dubai consortium.

Source
 

TheLocalYokel

Administrator
Staff member
Jan 14, 2009
11,135
4,532
243
Wurzel Country
Admin #9
G-BOAF, the last UK Concorde built and the last Concorde ever to fly sits, somewhat edgily, next to a small visitor centre at her birthplace at Filton.

She is in the open air exposed to all weathers and the long-awaited museum of Bristol aircraft, with AF as the centre-piece, is still years away. Some land next to Filton aerodrome has been donated but, as always, the challenge is raising finance, even more difficult in today's economic times.

It was always said that if any British Concorde flew again it would be G-BOAF, but nearly six years, and many more to come, in all winds and weathers must raise serious questions as to serviceability.

That said, I never believed any Concorde would fly again after November 2003.
 

Aviador

Administrator
Staff member
I've upgraded to support F4A!
Jan 12, 2009
12,325
3,249
323
HEAD OFFICE
Thread starter Admin #10
I'm just glad that I had the opportunity to see the bird flying. Not once did I get bored of watching the aircraft land or take off at Leeds Bradford Airport on it's biannual visits to the airport. The most annoying thing was that I never managed to get a decent photo of the aircraft for one reason or another.
 

Aviador

Administrator
Staff member
I've upgraded to support F4A!
Jan 12, 2009
12,325
3,249
323
HEAD OFFICE
Thread starter Admin #11
British Airways showdown looms as Willie Walsh seeks to cut staff pay

British Airways has proposed a shake-up of employee pay and conditions in a move that could lead to substantial cuts in remuneration and holidays for its 13,500 cabin crew.

The proposals are believed to be at the forefront of a cost-cutting drive under which BA wants to reduce its in-flight budget of £567.9 million by £82 million. Cabin crew are regarded internally at BA as having the best compensation package.

The airline, which says that it needs to save money because of the downturn in the aviation sector, has issued staff with 32 money-saving proposals. These include cutting annual leave from 36 days to 34, a two-year pay freeze and a reduction in bonuses for working on long-haul routes.

More than 1,500 cabin crew met on Monday to discuss the proposals and unanimously rejected permanent changes to their terms and conditions. It is understood that they told BA they were willing to discuss “temporary solutions to a temporary downturn” and said that any attempt to make these permanent could lead to strike action.

BA has also proposed that new employees should have different terms and conditions with almost none of the benefits enjoyed by present cabin crew. Under these proposals, more than 2,000 crew could be taken on in the next two years, possibly employed by a separate entity modelled on low-cost carriers such as Ryanair.

The airline is in discussions with all 45,000 employees about pay and conditions in an attempt to reduce its overheads. BA has predicted that it will slump to a £150 million operating loss this year after a £900 million profit last year. The airline is struggling with falling demand from passengers and higher costs due to exchange rates.

Cabin crew have traditionally been the most militant part of BA's workforce and there are fears that a showdown between management and staff could lead to industrial action.

BA and Unite, the union that represents cabin crew, were at pains to play down any possible conflict with both sides saying that discussions were continuing. The airline said that the 32 proposals were ideas for discussion with staff and no decisions had been made about their implementation.

But analysts believe that this is the showdown that Willie Walsh, the chief executive, has been spoiling for and that BA wants to use the economic crisis as a once-in-a-lifetime opportunity to restructure its employee contracts.

BA said on Monday: “Like all airlines, we have been hit by a worsening economic crisis and to respond to this we need to improve productivity and performance across the airline. Rather than present any firm proposals we have put together a list of ideas and opportunities on how we could reduce cabin crew costs.”

Proposed changes for new employees include:

— Fewer pay grades and promotion based on merit not seniority

— Pay at a fixed hourly rate with increases based on merit not seniority

— No extra payments for long-haul trips or making back-to-back long-haul flights

Proposed changes for existing employees include:

— Cutting the layover in foreign cities. The layover in Los Angeles, for example, would be reduced from two nights to one

— Reduce crew numbers on 777 aircraft by one

— All additional payments for flying to certain destinations such as Madras, Beijing and Calcutta could be removed

Source
 

Aviador

Administrator
Staff member
I've upgraded to support F4A!
Jan 12, 2009
12,325
3,249
323
HEAD OFFICE
Thread starter Admin #12
EU competition probe could hit BA's American dream

Multiple anti-trust investigations question transatlantic agreements

Seven airlines, including British Airways (BA), are being investigated by Europe's competition watchdog over concerns that transatlantic co-operation could be breaking monopoly laws.


The European Union's Competition Commission launched two separate enquiries yesterday, one into the relationship between Star Alliance members Air Canada, Continental, Lufthansa and United Airlines, the other into the proposed tie-up between Oneworld members BA, Iberia and American Airlines.

BA said the move was simply a procedural necessity for clearance of its American scheme. But the Commission warned that while the opening of proceedings does not necessarily imply conclusive proof of an infringement, it does mean there are sufficient concerns to merit scrutiny.

Jonathan Todd, the watchdog's competition spokesman, said: "It would be misleading to suggest opening a formal anti-trust investigation is routine."

The Commission's main concern is that consumer interests may be threatened by agreements between airlines to co-ordinate fares, capacity and timetables, and share revenues. "The level of cooperation in question appears far more extensive than the general cooperation between these airlines and others which are part of the alliances," the statement from the regulator said.

Regulators' involvement in the BA/American scheme began when the process was mooted last August. The deal requires anti-trust immunity (ATI) under US law, the application for which is currently being considered in Washington. In Europe, there is no mechanism for ATI approval, with the onus on the individual company to prove that activities contravening collusion rules bring benefits to consumers.

BA has been discussing the issue with the Commission since last summer, the carrier said yesterday. "As far as we are aware this investigation is a normal part of the process," a spokeswoman said. "The only difference this formal, procedural step makes is that the national authorities of EU countries can no longer investigate the proposal themselves because it makes it an EU-wide examination."

The BA enquiry focuses on future plans only. But the examination of Star Alliance members – which already have ATI status – refers to existing activities. And SkyTeam, the other alliance with ATI, is also subject to a competition investigation in Brussels.

BA needs a deeper transatlantic agreement to help it compete with ATI-advantaged Star Alliance and SkyTeam members. The current attempt is the third time BA and AA have tried to get together. In 1999, and again in 2002, applications for ATI were either turned down, or required BA to give up an impossible number of Heathrow's restricted take-off and landing slots.

This time, things are different, says Willie Walsh, the BA chief executive, in response to vociferous opposition from rivals such as Virgin Atlantic. BA argues that the liberalisation of transatlantic flights, thanks to the Open Skies treaty of March 2008, has already opened up "Fortress Heathrow" and changed the nature of the market.

Over time, aviation industry experts expect the industry to be dominated by a few global alliances. The only way to ensure efficiency benefits is to go beyond basic code-sharing into closer-knit, ATI-type agreements and, given the size of the US market, all such groupings will need a US carrier. So if BA's American dream comes to nothing, it will be forced to look elsewhere.

Gert Zonneveld, an analyst at stockbroker Panmure Gordon, said: "If the American deal doesn't go through then it will be an end to co-operation between the two carriers. They will have to go their separate ways and the quest for another transatlantic partner will start over."

Source
 

Aviador

Administrator
Staff member
I've upgraded to support F4A!
Jan 12, 2009
12,325
3,249
323
HEAD OFFICE
Thread starter Admin #13
BA's premium passengers fall 17%

British Airways' premium passenger numbers continued their downward trajectory last month as the recession took its toll on the top end of the aviation sector.

BA said that its first-class and business-class passenger numbers were down by 17.2 per cent while economy passenger numbers were down by only 4.2 per cent.

The overall reduction was 6.5 per cent compared with the same month a year ago.

The airline said that market conditions remained unchanged and that the decline in passenger numbers were in line with previous months.

Last month BA said that it had lost £401 million in the year to the end of March and the trading environment was too volatile for it to give any guidance on how it might perform this year.

Meanwhile, Ryanair, the budget carrier, said today that its May traffic rose by 9 per cent to 5.5 million.

Its load factor, a measure of how full its aircraft are, also increased by one percentage point to 81 per cent.

Source
 

Aviador

Administrator
Staff member
I've upgraded to support F4A!
Jan 12, 2009
12,325
3,249
323
HEAD OFFICE
Thread starter Admin #14
Walsh: BA facing ‘fight for survival’

British Airways is facing a ‘fight for survival,’ its chief executive said. Willie Walsh wrote in the airline's staff newspaper: ‘It's critical that we all recognise that the diagnosis for our airline is now critical.’

He said the crisis facing the aviation industry ‘has never been more serious. There has been a significant shift in consumer attitude, with people wanting more and paying less. And things are getting worse. We haven't yet reached the bottom and everything points towards a protracted downturn.'

Walsh said some areas of the business had made progress on pay and productivity negotiations but elsewhere change ‘has been slow.’ He has set a deadline of June 30 to complete talks with unions.

Source
 

Aviador

Administrator
Staff member
I've upgraded to support F4A!
Jan 12, 2009
12,325
3,249
323
HEAD OFFICE
Thread starter Admin #15
BA ‘could close pension scheme to current members’

British Airways has not ruled out following Barclays lead and closing its final salary pension scheme to its 100,000 existing members, the Telegraph reports. The airline said yesterday that all options to tackle its pension deficit would be reviewed at the completion of the current triennial actuarial review. Early conclusions from the review, which began in April, are expected in September.

BA estimated at the time of its full-year results last month that, on an accounting basis, its two final salary schemes – the Airways Pension Scheme and the New Airways Pension Scheme – had a £2.9bn deficit, up £1.2bn from previous estimates. The airline is currently contributing around £320m a year to the two schemes – a sum that has grown with the fall in equity markets.

Asked if BA could follow Barclays and close its scheme to existing members, a spokesman for the airline told the newspaper: ‘When the actuarial review is completed, we will have discussions with the trustees on how the schemes should be funded in the light of the valuation findings. We will explore all options as part of a funding review.’ He stressed that closing the scheme was not under active consideration, saying: ‘It is premature to suggest that we would go down any particular route.’

BA closed its final salary scheme to new members in 2003. While closing the scheme to existing members would remove a major millstone, any move would risk a bruising confrontation with the workforce. Most of the 30,000 people in the APS are retired but around half of the 70,000 in NAPS still work for the airline.

Source
 

Aviador

Administrator
Staff member
I've upgraded to support F4A!
Jan 12, 2009
12,325
3,249
323
HEAD OFFICE
Thread starter Admin #16
BA pilots to take pay cut

Pilots at British Airways are set to take a voluntary pay cut to help the airline weather a disastrous plunge in traffic that has led to it reporting record losses, the Times reports. The unprecedented move will be discussed this week at a meeting of the BA section of Balpa, the UK pilots’ union.

Pilots are likely to be balloted on a range of cost-saving measures, including a small across-the-board pay cut, industry sources told the newspaper. The union, which has held talks with BA ahead of the meeting, hopes to have a package in place by the end of this month.

Willie Walsh, BA’s chief executive, has warned staff the company is in ‘a fight for survival’. He is seeking cost cuts across the board, seeking to drive through permanent reductions in pay and conditions. While some groups of staff have played ball, Mr Walsh said recently that talks with cabin crew had yielded little. Some staff say they will only make temporary concessions to help in the current crisis.

The leaders of all BA’s unions are to meet tomorrow to discuss the airline’s plight, with another report suggesting up to 10% of BA's staff could face the axe.

Source
 

Aviador

Administrator
Staff member
I've upgraded to support F4A!
Jan 12, 2009
12,325
3,249
323
HEAD OFFICE
Thread starter Admin #17
Fears of strike action as BA tells cabin crew 2,000 jobs must go

British Airways has told its cabin crew that it wants to cut 2,000 jobs, leading to fears that the airline could be hit by a summer of strikes.

It is understood that BA’s management has already begun working on contingency plans to deal with possible industrial action during the busy holiday period. The airline told its 14,000 cabin crew last week that it was looking for the equivalent of 2,000 voluntary redundancies and if these cuts cannot be achieved, the losses could become compulsory.

More than 2,500 jobs have already gone at BA in the past year as it seeks to cut costs amid a severe downturn in the airline industry. BA’s pilots have agreed to 100 voluntary redundancies and will vote next week on a series of cuts to pay and conditions.

However, other big segments of BA’s workforce including the cabin crew, are expected to reject the airline’s proposed cost reductions. Ground staff overwhelmingly rejected revised pay and conditions last week. The management will begin intensive talks with unions today after the airline set a deadline of June 30 to agree new terms.

BA has put 32 money-saving proposals to its cabin crew, including cutting annual leave from 36 days to 34. It also wants a two-year pay freeze and a big reduction in the allowances paid to crew who fly longhaul.

There is also speculation that BA may seek to close its final salary pension scheme as its deficit grows. The deficit is thought to have nearly doubled to £3 billion, which is more than the market capitalisation of the airline.

Unions representing BA’s workforce have indicated that they are willing to accept short-term changes to pay and conditions but will not accept permanent changes, raising the prospect of industrial action after June 30.

A BA employee who contacted The Times said: “BA looks as though it is heading for strikes this summer. They want to use the recession as an excuse to decimate the terms and conditions of thousands of BA’s long-term, loyal employees.” BA is suffering from a collapse in passenger numbers as a result of the economic downturn and lost £401 million last year.

The International Air Transport Association (Iata), which represents 230 airlines worldwide, said yesterday that it expected 2009 to be another horrific year for the industry. It increased its estimate of industry losses to $9 billion (£5.6 billion) this year up from a previous forecast of $4.7 billion.

Giovanni Bisignani, director general of Iata, said that there had been growing signs of a bottoming-out of the recession, but any recovery in air traffic faced several “severe headwinds”, including high consumer debt and business stocks. BA is so concerned about its prospects for this year that it has refused to give any guidance on its expected financial performance.

A spokesman for the airline said: “It is important that we make progress in our talks with staff. The airline industry is facing very serious crisis in what is undoubtedly the most difficult trading environment it has ever been in. We need to make our airline as competitive as we can and this means reducing our controllable costs.”

A spokesman for Unite said it was in negotiations with BA, but would not comment until later this week. Shares in British Airways closed down 5.6p or 3.67 per cent at 146.8p

Source
 

Aviador

Administrator
Staff member
I've upgraded to support F4A!
Jan 12, 2009
12,325
3,249
323
HEAD OFFICE
Thread starter Admin #18
Walsh: airlines can do nothing to stimulate demand

Airlines are powerless to spur demand for travel in the global recession, Willie Walsh, chief executive officer of British Airways, said. He told reporters yesterday that there is ‘nothing we can do in the current environment to stimulate traffic, particularly in the premium market. It doesn’t respond to pricing activity.’

International air travel fell for an eighth month in a row in April as airlines cut flights amid a worsening economy and rising job concerns. The International Air Transport Association (IATA) predicted yesterday airline losses may be $9 billion this year, almost double a previous forecast. Mr Walsh said: ‘Until we get some stability in both the economic and aviation markets, it’s going to be a very difficult environment.'

Source
 

Aviador

Administrator
Staff member
I've upgraded to support F4A!
Jan 12, 2009
12,325
3,249
323
HEAD OFFICE
Thread starter Admin #19
BA highlight ‘cash rich’ competitor threat

British Airways has highlighted the risk ‘cash rich’ rivals pose to its operations in the current financial year, abtn reports. BA said in its annual report: ‘Some competitors have cost structures that are lower than ours or have other competitive advantages such as being supported by government intervention. A particular threat in the current economic environment is cash rich competitors growing market share and acting irrationally to force other airlines out of the market.’

Willie Walsh, BA's CEO, said: ‘Competition remains fierce, particularly at Heathrow and on important transatlantic routes. The need to deliver world-leading customer service and operational performance, to invest boldly and meet stringent environmental standards are more acute than ever.’

BA said fare discounting by competitors in the past had had a ‘negative effect’ on its results. It said it was ‘generally required to respond to competitors' fares to maintain passenger traffic.’

Source
 

Aviador

Administrator
Staff member
I've upgraded to support F4A!
Jan 12, 2009
12,325
3,249
323
HEAD OFFICE
Thread starter Admin #20
The bottom line is BA are too expensive and it has taken a recession for them to realise it.
 

Advertisement


Top Bottom