Originally Posted by
Roger
Page 76 of the BA annual report:
The Group accounts for its investments in Iberia as an associate although the Group holds less than 20% of the issued share capital as the Group has the ability to exercise significant influence over the investment due to the the Group's voting power (both through its equity holding and its representation on key decision-making committees) and the nature of the commercial relationships with Iberia.
and
On June 9, 2006, the Group's shareholding in Comair Ltd, was reduced from 18.3% to 12.9%. Due to the Group's ability to exercise significant influence
the investment in Comair Ltd was accounted for by the equity method. In September 2006, the Group's shareholding in Comair Ltd decreased to 10.92%
and the Group no longer had the ability to exercise significant influence over the investment, at which time the investment was reclassified as an available-for-sale financial asset.
I for one was surprised to learn that SA loses money hand over fist on its European routes, especially in view of their prices virtually matching BA and VS ex LHR. It's because its planes sit on the tarmac for half a day at LHR, FRA, JNB, CPT etc and is the reason why 747s are out of the window.
I understood that JNB/CPT were the most profitable routes for BA and VS after Nigeria. Is this still the case?
I believe the JFK route is still more profitable, but the individual JNB/CPT flights (more the JNB flight) are among the most profitable flights/sectors. At least, this is what I have always been told by BA staff and managers. One would hope this is the case, considering the price of tickets compared to similar long-haul stretches.
The SA 747s are out of the picture also because their lease costs soared, making them unprofitable on the route because of the issue you mention: sitting around for so long in London. But BA flights also sit around all day in JNB...? (they arrive in the morning and depart in the evening) KLM apparently is among the most effective at exploiting the JNB route, as it has both daytime and night-time flights to minimise downtime.
Surprised to hear about Comair getting less important and possibly up for sale. It also seemed as though, from conversations with local BA staff, that BA was pretty much here to stay.