Originally Posted by
London Dude
Lima is South America's second largest city, and it's a foodie's heaven with some of the world's top-rated restaurants. Add to that Machu Picchu, and I'd say it should make for a very attractive destination for a certain type of upmarket tourism, which might well warrant a five-a-week 777/787/A350 service from LHR perhaps?
If only it were true.
The previous attempt, from memory of the monthly/yearly stats I used to read from the Business Objects report, weren’t good. I don’t know about the yields, but those mustn’t have been good either. It also was almost a route guaranteed to give you onload two weeks out as a staff passenger using his yearly bookable, which was saying a lot.
Don’t forget that unfortunately BA lives in a world of very finite resources. Planes, people - especially in the current circumstances - and crucially slots. Since those are of a fixed amount, and can’t easily be increased, to open a route means to close down, or reduce, another. And in this situation BA will need to get the most out of the investment. I already mentioned that, for most business cases, a ROIC > 15% and repayment period in less than 3 years had to be the minimum. Whether we like it or not, there’s more money to be made in flying to Nashville, or Austin, than to LIM. I wish HAL built the third runway but kept it half empty to recover disruption and the other half for new and underserved destinations. Then I wake up
Plus, and that’s another biggie, BA lost his “mate” down there. The end of the LATAM JV and the airline going in bed with Delta has meant that there’s little potential for partnerships with local players…which you need unless you’re a moron like myself and like to suffer on a bus to the Cordillera Blanca or Cusco. Almost costed me the marriage, that one.