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Old Dec 28, 2011, 9:44 am
  #91  
 
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Originally Posted by Jimmie76
What I was curious about was whether this was life or death for BA as Happy seems to be suggesting was the case.
There are lots of unknowns here, including the extent to which passengers would simply buy tickets where today they use FF tickets. I see the FF scheme as like a Bakers Dozen. It's ingrained in the system so that I expect to get about every 10th ticket 'free', but does that mean I'm paying more than I need for all the others, and for groceries & credit card purchases, to give me the illusion of getting something for free? I must be on the basis there's no free lunch.

In the specific case of BA, if you took away the entire FF scheme overnight from BA alone then it believe it would tip BA into operating losses which would not be sustainable for long, in no small part because the FF scheme influences sales of a large number of tickets.

How much of that revenue is directly contributed by Chase is hard to tell, but I assume BA feels it needs a relationship with a US Visa / Mastercard issuer to be competitive in a market that, even though it's dropped a bit in recent years, still contributes a big chunk (IIRC North America is 25-30%?) of BA revenues.

If all airlines dropped their FF schemes it would be a different story and the market would stabilize in a different way.
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Old Dec 28, 2011, 10:05 am
  #92  
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Originally Posted by Jimmie76
What I was curious about was whether this was life or death for BA as Happy seems to be suggesting was the case.



I agree that there is money to be made from the sale of miles, it's just that unlike some airlines I don't suspect BA are in such dire straits that they are reliant to such a massive degree on the sale of miles. I am *happy to be proved wrong though.

*(un)
And for that, since British Airways is now a brand owned by IAG, we have to delve into their finances. I don't have the time to do that, but take a look at their share price and tell me what you think.

http://shareprices.com/detail?chart_...requency=daily
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Old Dec 28, 2011, 10:20 am
  #93  
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Originally Posted by bernardd
In the specific case of BA, if you took away the entire FF scheme overnight from BA alone then it believe it would tip BA into operating losses which would not be sustainable for long, in no small part because the FF scheme influences sales of a large number of tickets.
I dont think that. On the LHR routes to New york, sin and hkg then its possible. But not on the leisure routes out of LGW. Nor I havent noticed on my trips to LAX and MIA.

Also when I was doing more euro trips there appeared to be less FF members. IN the UK and Europe BA is against in some regards, Ryanair and Easyjet.
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Old Dec 28, 2011, 10:26 am
  #94  
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Originally Posted by origin
Next years Euro trips for will be only using the RFS. I normally go for long weekends about 4 times a year. Hopefully my health wil improve to enable me to use the scheme.
I hope your health improves very soon, and certainly in time for you to make a good use of it.
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Old Dec 28, 2011, 11:39 am
  #95  
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Originally Posted by LTN Phobia
I hope your health improves very soon, and certainly in time for you to make a good use of it.
thanks
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Old Dec 28, 2011, 11:52 am
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Originally Posted by origin
Nor I havent noticed on my trips to LAX and MIA.
How on earth do you expect to recognize who has contributed what to BA's total revenue?


Originally Posted by origin
Also when I was doing more euro trips there appeared to be less FF members. IN the UK and Europe BA is against in some regards, Ryanair and Easyjet.
I'm not sure the point you're trying to make here? One of the things that gets some passengers to opt for BA against more logical routings / pricings / schedules compared with Easyjet is the lure of FF miles, particularly when someone else is buying the ticket.
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Old Dec 28, 2011, 11:57 am
  #97  
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Originally Posted by bernardd
I'm not sure the point you're trying to make here? One of the things that gets some passengers to opt for BA against more logical routings / pricings / schedules compared with Easyjet is the lure of FF miles, particularly when someone else is buying the ticket.
Price is what matters to people and timing.
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Old Dec 28, 2011, 11:58 am
  #98  
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Originally Posted by origin
Price is what matters to people.
To some yes, to others (me included) value is more important.
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Old Dec 28, 2011, 11:59 am
  #99  
 
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Originally Posted by origin
Price is what matters to people.
BA had better hope it isn't everything - they won't survive unless they achieve above average fares, which is part of the reason for a loyalty scheme.
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Old Dec 28, 2011, 12:02 pm
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Originally Posted by Swanhunter
To some yes, to others (me included) value is more important.
Exactly - it's a weighted judgement. We each have our own weightings that probably change over time and with the purpose of the travel but the loyalty scheme plays a vital part.
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Old Dec 28, 2011, 12:04 pm
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Originally Posted by origin
Price is what matters to people and timing.
Rubbish.

Convenience (of departure and arrival airport) and service proposition is most important (particularly on longhaul).

Short haul is more about timing.
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Old Dec 28, 2011, 12:05 pm
  #102  
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Originally Posted by bernardd
BA had better hope it isn't everything - they won't survive unless they achieve above average fares, which is part of the reason for a loyalty scheme.
A group of people are leisure customers. They have a long haul flight each year and arent worried about the FF scheme. Which is why I included many LGW routes with my compariison with Easyjet. They will look at the price and time of the flight.

As swanhunter has said, there are people who worry about other things not just price.

But I find often some points on here, not necessary by yourself, seem to forget that there are many flights that dont have FF customers. My main family holidays before I left uni were without FF schemes, even though I flew BA to the US.
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Old Dec 28, 2011, 12:07 pm
  #103  
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Originally Posted by rossmacd
Rubbish.

Convenience (of departure and arrival airport) and service proposition is most important (particularly on longhaul).

Short haul is more about timing.

Would you not include timing of the flight as part of the convenience as well?
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Old Dec 28, 2011, 12:10 pm
  #104  
 
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Originally Posted by origin
Would you not include timing of the flight as part of the convenience as well?
Definitely not on longhaul.

KL flight departs from an airport 50miles from home, and will get me to my meeting on time and KL is 10% cheaper than BA. BA flight departing from local airport (3miles away) but I will arrive 1hr late, BA wins.
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Old Dec 28, 2011, 12:10 pm
  #105  
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Originally Posted by rossmacd
Rubbish.

Convenience (of departure and arrival airport) and service proposition is most important (particularly on longhaul).

Short haul is more about timing.
For the majority of the flying public price most definitely is the deciding factor. I've known many people who would rather fly to AMS to connect rather than fly direct from GLA. All for the sake of saving a few quid.
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