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Old Apr 20, 2015, 1:59 pm
  #46  
 
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Originally Posted by paul4040
BA are introducing an even lower fare to accommodate this. What is objectionable about that?
Because we're not stupid and know how these things works. This even lower fare will very quickly become the base fare as we know it today.

I don't think it'll lose them much custom though.
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Old Apr 20, 2015, 2:00 pm
  #47  
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Originally Posted by paul4040
BA are introducing an even lower fare to accommodate this. What is objectionable about that?
It's an outrage, how dare they offer my employer a lower fare at the expense of my status benefits! If it weren't for the fact that my employer chooses the tickets I fly on, I would change to another airline

(I'm being sarcastic for the avoidance of any doubt)
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Old Apr 20, 2015, 2:07 pm
  #48  
 
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Originally Posted by psollitt
No lounge access and no priority boarding on the lowest tickets ? really ? How much custom would that loose them ! they have lost the plot with this .. people would NOT stand for that after all the negative changes they have hit us with so far !
Why would they sell rock bottom fares (which is presumably what competing with LCCs entails) in a way that enables people to sit in lounges enjoying food and drink that would no doubt remove any margin from the fare?
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Old Apr 20, 2015, 2:10 pm
  #49  
 
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Originally Posted by destere
Doing a rough and dirty calculation, you're probably looking at around 1.5 million seats a year. More accurate figures of course welcome.
4,000 per day? Understand BA has well over 100 long haul aircraft, so feels low - maybe 1.5x that?

Being very simplistic and saying 110 aircraft, average 50J seats, 1.6 average sectors per day and 70% load factor

Even at 6,000 per day, ~2m p.a. that's an extra £10 per pax (or ~£5 per meal)
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Old Apr 20, 2015, 2:12 pm
  #50  
 
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Originally Posted by simons1
Interesting, bearing in mind WW told analysts last Autumn:
Ha! That must have been everybody wandering back to ET laughing and saying "these guys paid how much more for exactly the same seats!)
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Old Apr 20, 2015, 2:21 pm
  #51  
 
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Originally Posted by lorcancoyle
4,000 per day? Understand BA has well over 100 long haul aircraft, so feels low - maybe 1.5x that?

Being very simplistic and saying 110 aircraft, average 50J seats, 1.6 average sectors per day and 70% load factor

Even at 6,000 per day, ~2m p.a. that's an extra £10 per pax (or ~£5 per meal)
Those calcs assume the £20M is per year. It could be over the next 5 years.
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Old Apr 20, 2015, 2:26 pm
  #52  
 
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Originally Posted by simons1
Why would they sell rock bottom fares (which is presumably what competing with LCCs entails) in a way that enables people to sit in lounges enjoying food and drink that would no doubt remove any margin from the fare?
the ' rock bottom ' fare I bet would just be the same cost as the existing fare .. but with less benefits ...
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Old Apr 20, 2015, 2:39 pm
  #53  
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Originally Posted by lorcancoyle
Even at 6,000 per day, ~2m p.a. that's an extra £10 per pax (or ~£5 per meal)
For many routes most of that tenner could be applied to the one 'proper' meal. (Even better: spend £10 to improve lunch/dinner and wine and also give passengers a £2 Boots or M&S voucher to completely replace the generally poor breakfast and "afternoon tea" offerings.)

Originally Posted by Paralytic
Those calcs assume the £20M is per year.
Probably because that's the way Raffles reported it in his blog post, which is worth reading as it has a little more detail than the summary that opened this thread.
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Old Apr 20, 2015, 2:43 pm
  #54  
 
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Originally Posted by psollitt
the ' rock bottom ' fare I bet would just be the same cost as the existing fare .. but with less benefits ...
+1
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Old Apr 20, 2015, 2:58 pm
  #55  
 
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Originally Posted by psollitt
the ' rock bottom ' fare I bet would just be the same cost as the existing fare .. but with less benefits ...
Yes! but as usual a lot of people wouldn't see through this little trick by BA.
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Old Apr 20, 2015, 3:00 pm
  #56  
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Originally Posted by psollitt
the ' rock bottom ' fare I bet would just be the same cost as the existing fare .. but with less benefits ...
Originally Posted by headingwest
Yes! but as usual a lot of people wouldn't see through this little trick by BA.
It's not that complicated is it? The overall price paid by the customer is lower and in return it comes with fewer benefits.

Often referred to as 'choice'.
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Old Apr 20, 2015, 3:00 pm
  #57  
 
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Originally Posted by psollitt
the ' rock bottom ' fare I bet would just be the same cost as the existing fare .. but with less benefits ...
Well we don't know that. On the face of it, a lower fare level that doesn't offer lounge benefits is a good thing - it offers more choice to the consumer. All things being equal, you choose to pay even less if you want to forego your lounge use, or pay the same level to keep lounge use. And BA can better keep with the low cost carriers who don't have lounge overheads. Whether the 'rock bottom' fare level would be cranked up to the existing HBO levels is hard to know, but it is a competitive environment and you pays your money and takes your chances.
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Old Apr 20, 2015, 3:05 pm
  #58  
 
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Originally Posted by Flexible preferences
Well we don't know that. On the face of it, a lower fare level that doesn't offer lounge benefits is a good thing - it offers more choice to the consumer. All things being equal, you choose to pay even less if you want to forego your lounge use, or pay the same level to keep lounge use. And BA can better keep with the low cost carriers who don't have lounge overheads. Whether the 'rock bottom' fare level would be cranked up to the existing HBO levels is hard to know, but it is a competitive environment and you pays your money and takes your chances.
Silly me, and I thought that I had payed for the use of the lounge with my previous flights and loyalty to the airline. After all I'm not able to sit in the lounge because I've booked an economy ticket, it's because I've earned the status. But if someone wants to pay twice for the privilege then that's up to them.
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Old Apr 20, 2015, 3:11 pm
  #59  
 
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Originally Posted by Paralytic
Those calcs assume the £20M is per year. It could be over the next 5 years.
Or over the next 20M years.
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Old Apr 20, 2015, 3:18 pm
  #60  
 
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Originally Posted by golfmad
It's not that complicated is it? The overall price paid by the customer is lower and in return it comes with fewer benefits.

Often referred to as 'choice'.
The price paid by the customer will be the same , the level of benefits will be less ... this is an 'enhancement ' too far .. will we have the ridiculous situation of having gold and GGL card holders holding signs outside terrace lounges begging silver members to sign them into terrace lounges ???
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