I know that members of this board have a huge attachment to the BA brand and service. But should IAG consider the roll out of a Vueling or Iberia Express type model at a secondary airport, such as LGW?
I recognise that some will be concerned at erosion of BA proper, but I wonder if BA need to respond:
- With no new runways in SE England on the horizon, should IAG not secure a stronger footprint at other airposrts, ortherwise there is a risk that all their eggs are stuck in the Heathrow basket;
- there seems to be a market developing for a better LCC, I see that easyjet's performance has improved at the same time it has moved away from some of the more unpopular elements of the LCC model (seat assignments etc) in the hope of capturing higher value (inc business) passengers. This must have had some impact on BA.
- LH are undergoing a similar process with the Germanwings rollout;
- I see that Norwegian are expanding at LGW, do BA need to act soon?
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BA no doubt need to do something.
But hats off to EZY, they give the punters what they want, from the airports that they want it
cs
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Doesn't really seem to fit in on BA flyertalk anymore, hey ho, times change, I'm still around and might post from time to time, still read forum and PMs
Compared to a few years ago BA is in better financial shape. Though with the Iberia tie up the combined revenue is mixed.
I think BA and most 'national' carriers have for years struggled to find the right balance in the face of competition from the low cost carriers. The 'enhancements' in the short haul experience is evidence of this. I think it is a tricky balance.
BA already tried the low cost model when they had Go. They obviously decided it didn't work for them, since they sold it. Yes, times have changed, but perhaps it would be a distraction to be working on a low cost airline in addition to the full service offering of BA.
Of course, it's a well-known fact, as we are repeatedly told by some on this board, that one simply CANNOT make money flying point to point and one must ALWAYS choose a single hub through which to route all your passengers for efficiency's sake.
BA already tried the low cost model when they had Go. They obviously decided it didn't work for them, since they sold it. Yes, times have changed, but perhaps it would be a distraction to be working on a low cost airline in addition to the full service offering of BA.
True. But in hindsight I wonder if BA might have decided to retain Go. It was profitable and was sold at a time BA and many airlies were struggling.
On the issue of including a LCC, it appears that IAG has already decided that this is part of their business, with the move to buy Vueling (and Iberia Express). But they have yet to offer such an operation in the UK market.
I wonder if IAG don't leap soon, it may be more difficult to enter the UK LCC market.
I see that it would be separate from BA, but in the same way IB FF'ers can earn points with Vueling, I can see that a similar ararngement with any IAG LCC in the UK might give the operation some advantage.
I don't see that the people that fly Easyjet are a different pool of customers that fly BA and some may be persuaded to choose an IAG LCC operation if it had some modest link with BAEC, but recognise that any substantial link would undermine the LCC model of keeping costs down, ie no or v. limited lounge access, but some modest point earning opportunities?
They have scrapped all regional flights which do not feed LH
Mixed Fleet will, over time, bring down labour costs to nearer LCC levels
They have begun to charge for seats etc for non status pax
The only game changer left is to close Gatwick, but they have just had a chance to do that with the acquisition of the bmi slots at Heathrow and chose not to
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But the parent company has had their difficulties making Iberia Low cost. I am sure they are looking at it. No doubt they will complain that there isnt the room at heathrow.
Given BA's recent advertising it may seem a bit cynical if they suddenly started a LCC. I agree with others who state full service hub & spoke airlines and point to point LCCs cover different types of travel pattern and should be able to be equally profitable in their own areas. The full service airlines will probably always predominate on long haul routes anyhow for the foreseeable future.
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