IAG FY Results 2017
Feb 23, 2018, 2:58 pm
#31
Join Date: May 2009
Location: PHL
Posts: 2,842
Just a correction, AA/BA will have 24 weekly flights on LHR-PHL this summer.
Feb 23, 2018, 4:48 pm
#32
Join Date: Dec 2009
Location: Flatland
Programs: AA Lifetime Gold 1MM, BA Gold, UA Peon
Posts: 6,109
Customers won't (can't) pay higher fares, hence all those cheap deals you cite. Their economies are in the toilet, their countries are uncertain places to live in, and they're feeling tight. That's outside BA's control, all it can control is some of its costs. It can't increase revenues easily. Not an enviable situation to be in, commercially.
Here's the thing .... the Qsuite density is surprisingly high. They lost ZERO seats swapping the old rubbish 777 seat for the suite, because the introduction of cubby holes for your feet saved a huge amount of space. Very interesting example of how you can go from a seat that people actively avoided to genuine best in class and still have a 42 seat cabin.
BA actually has a huge amount of flexibility if they are willing to go down the cubby hole route.
BA actually has a huge amount of flexibility if they are willing to go down the cubby hole route.
Feb 23, 2018, 4:49 pm
#33
Join Date: Feb 2012
Programs: BA Executive Club Bronze
Posts: 155
Some interesting points from the internal presentation for staff today:
- The results are a good news story. All very positive numbers, something to be proud of. The main blip is that non-fuel unit costs continue to rise vs. -1% target
- Alex Cruz says that BA wants to equal or better Delta's business class seat - hinted very strongly that we will see something similar with a door, extra privacy etc. Went on to say "And if we are to introduce something like what Delta are doing, it means we'll have to take a look at what we are offering in First. We won't be able to have something like this (gestures at Delta seat image) and continue with our current First proposition".
- NPS is now positive thanks to investments in WT Catering etc. "part of Plan4"
- Original Ł400 million investment in CW was "emergency money" to start the transformation
- 20 new lounges to open across the network this year (3rd party I would assume)
- 2019 is centenary of airline that is now BA. New uniform as part of the celebrations. To be designed together with staff.
Last edited by TWEED1A; Feb 23, 2018 at 5:02 pm Reason: Elaborated on AC´s quote
Feb 23, 2018, 5:52 pm
#34
Join Date: Dec 2014
Location: UK
Programs: BA, U2+, SK, AF/KL, IHG, Hilton, others gathering dust...
Posts: 2,552
Some interesting points from the internal presentation for staff today:
- The results are a good news story. All very positive numbers, something to be proud of. The main blip is that non-fuel unit costs continue to rise vs. -1% target
- Alex Cruz says that BA wants to equal or better Delta's business class seat - hinted very strongly that we will see something similar with a door, extra privacy etc. Went on to say "And if we are to introduce something like what Delta are doing, it means we'll have to take a look at what we are offering in First. We won't be able to have something like this (gestures at Delta seat image) and continue with our current First proposition".
- NPS is now positive thanks to investments in WT Catering etc. "part of Plan4"
- Original Ł400 million investment in CW was "emergency money" to start the transformation
- 20 new lounges to open across the network this year (3rd party I would assume)
- 2019 is centenary of airline that is now BA. New uniform as part of the celebrations. To be designed together with staff.
Feb 24, 2018, 12:03 am
#38
Join Date: Feb 2009
Location: YYC
Programs: BA bronze, Aeroplan peon
Posts: 4,744
Interesting how BA was a market leader 20 years ago with the CW flat bed and now they are considering basically copying an existing seat. Given the pace of BA lately, that means it won't be universally fitted across the fleet for another decade and will be complete obsolete when it's finally finished being rolled out.
Feb 24, 2018, 5:41 am
#39
FlyerTalk Evangelist
Join Date: Feb 2004
Location: London
Programs: BA, VS, HH, IHG, MB, MR
Posts: 26,871
Some interesting points from the internal presentation for staff today:
- The results are a good news story. All very positive numbers, something to be proud of. The main blip is that non-fuel unit costs continue to rise vs. -1% target
- Alex Cruz says that BA wants to equal or better Delta's business class seat - hinted very strongly that we will see something similar with a door, extra privacy etc. Went on to say "And if we are to introduce something like what Delta are doing, it means we'll have to take a look at what we are offering in First. We won't be able to have something like this (gestures at Delta seat image) and continue with our current First proposition".
- NPS is now positive thanks to investments in WT Catering etc. "part of Plan4"
- Original Ł400 million investment in CW was "emergency money" to start the transformation
- 20 new lounges to open across the network this year (3rd party I would assume)
- 2019 is centenary of airline that is now BA. New uniform as part of the celebrations. To be designed together with staff.
I’m still amused that despite every BA employee apparently spending all day every day cutting costs, they still went up (exc fuel). I mean ....!
‘Good’ news is that all Eurofleet CSDs are being fired so that will save a few quid .....
Feb 24, 2018, 7:18 am
#40
Original Poster
Join Date: Jan 2003
Location: London, UK
Posts: 5,655
Is Delta a typo? Did you mean Qatar?
I’m still amused that despite every BA employee apparently spending all day every day cutting costs, they still went up (exc fuel). I mean ....!
‘Good’ news is that all Eurofleet CSDs are being fired so that will save a few quid .....
I've not yet flown in the Delta A350 seat, but it is just a Thomson Vantage XL with a door. However it has got good reviews from the blogosphere, for what that's worth.
It's interesting how the Plan4 message is being portrayed internally, as certainly to investors at the results call yesterday it's very clear that it's a cost control initiative first and foremost.
Mar 15, 2018, 8:11 pm
#41
Join Date: Jul 2011
Posts: 1,663
Mar 16, 2018, 1:52 am
#42
Original Poster
Join Date: Jan 2003
Location: London, UK
Posts: 5,655
Arguably of more relavance are the LH Group results, which have increased significantly due to the demise of Air Berlin. Plus there appears less of an upward cost pressure than with the IAG/BA results.
I’m know there are more experienced people than me, but it appears Carsten has done a better job than Willie in steering an airline group of similar size.
Are we getting to the point where the EU3 (IAG, LH, AF/KLM) will always be profitable like the US3?
https://investor-relations.lufthansa...eschichte.html
And the annual report:
https://investor-relations.lufthansa...-AR-2017-e.pdf
Mar 16, 2018, 3:47 am
#43
Join Date: Jul 2014
Location: Edi
Posts: 2,203
Cathay just announced a loss of $1.25B HKD. Looks like leaving OW is even more likely.
Mar 16, 2018, 4:02 am
#44
Original Poster
Join Date: Jan 2003
Location: London, UK
Posts: 5,655
Cathay just announced a loss of $1.25B HKD. Looks like leaving OW is even more likely.