Long Haul Fleet [how will it change]
#16
Join Date: Jan 2005
Location: UK
Programs: Mucci. And BA Gold previous awards - Gold 11, Silver 7, Bronze 4.
Posts: 4,280
#17
Join Date: Jan 2003
Posts: 3,775
I just dont see how a 787 or an A350 can replace 744's without cutting massively the number of passengers being carried and the lose of revenue and profit
Don't confuse losing passengers with a drop in revenue - a cut in capacity results in more demand which pushes fares up. That is what Bob Ayling was trying to achieve when he wanted to concentrate on First and Club sales. Unfortunately, he was misquoted as saying we didn't want "ordinary" customers - something he never actually said or meant!
Surplus capacity, caused by a glut of wide-bodied aircraft flying high-density routes, causes seat sales resulting in full aeroplanes but yielding little profit - hence the colossal amount of transfer business transacted at European hub airports.
Taking out the surplus with leaner, more efficient, more comfortable, more cost-effective aeroplanes is the key to sustainable revenue growth.
#18
Join Date: Dec 2006
Location: in a cabin
Posts: 6,526
#19
Join Date: Apr 2005
Location: UK
Programs: IC Hotels Spire, BA Gold
Posts: 8,685
Yes but both PA and TW suffered major crashes just a few years prior to their going under with PA103 and TW800. Notwithstanding they certainly each had financial difficulties at the time, it is generally accepted these crashes were not insignificant in their demise. This is not the case with BA