Originally Posted by Steady-EDI
What surprised me about this was the ‘any prospect’ bit coupled with the timing. Correct me if I’m wrong, but isn’t BA Connect just 8 months old? Was there a prospect of profitability when it was launched and something has changed? Or was it a basket case from the word go and the re-branding was just a matter of doing something to try to stem the losses while a suitable deal was sought?
As the deal and the terms of the transitional arrangements have been agreed, given the time it takes to seek potential buyers, conduct vendor/acquirer due diligence, agree commercial terms with the ultimate buyer etc, the decision to sell must have been made a long time ago.
Originally Posted by Steady-EDI
Next, the cynic in me wonders whether what we’re seeing here is – a least in part – a breathtaking example of WW demonstrating beyond all doubt that he is a hard manager who, on finding a limb of the organisation that is under-performing, will not hesitate to hack it off. Despite its undoubted successes, BA faces some massive issues, including the pensions deficit (which probably has the capacity to bring down the company altogether) and a depressing ability to demonstrate a lingering taste for 70s-style industrial relations. Is it way too cynical to think that WW is, in part, establishing his credentials for bigger decisions to come?
The next one to watch will be LGW. According to several posts on this board, he’s already said that, in the absence of demonstrable profitability, he won’t go the board with a fleet renewal proposal. But we all know that the 737s are starting to present a poor image, so just carrying on and doing nothing doesn’t sound like much of an option. I sense that an even bigger crunch point is coming.
Willie Walsh has made clear that every part of the business must be profitable, so if LGW isn't...
Given Willie Walsh was, AFAIK, the first BA executive to ever criticise BAA on the record, he has certainly shown that he won't tolerate any nonsense, and in light of the activities of BA ground staff in recent years, this is a good thing.