Originally Posted by
Globaliser
I fear that we may have reached exactly this point in BA. The holy grail is in sight, so now we slash and cut everything in sight, abandoning all thought for the longer-term future of the company. Which worries me greatly.
I'm sure BA has slashed some parts of the service, but my experience is it hasn't slashed as badly as AA etc. Will cutting more reduces costs faster than it cuts revenue? That's the billion dollar question.
Thanks to one and all for the explanation of the 10% margin. I'm not surprised that it seems so arbitrary, and it still seems like 50 million in crew savings isn't going to make a lot of difference in a business that can make or lose more than that in fuel price hedges. I guess it's a nice round number but at 0.25% of revenue I would have figured there were bigger fish to fry first.