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IAG 2018 Full Year Results [18 Boeing 777-9 ordered, plus 24 options]

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IAG 2018 Full Year Results [18 Boeing 777-9 ordered, plus 24 options]

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Old Feb 28, 2019, 5:06 am
  #46  
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Originally Posted by orbitmic
Thanks. To clarify, are you saying that I am mistaken that the 77X is intended to have an economy cabin layout of 10 abreast as opposed to 9 abreast for the 350?
It must be 10-abreast. That is the default Boeing configuration I believe. It would require a major suspension of disbelief for BA to install 9-abreast on a plane that is 10cm wider than the existing refitted 10-abreast BA 777 fleet.
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Old Feb 28, 2019, 5:07 am
  #47  
 
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Originally Posted by orbitmic
Thanks. To clarify, are you saying that I am mistaken that the 77X is intended to have an economy cabin layout of 10 abreast as opposed to 9 abreast for the 350?
The 777X cabin width is wider (at 5.96m) which should allow 18in wide 10 abreast seating in economy. In comparison the A350-1000 cabin width is 5.61m (narrower than the 777) so the maximum would be 9 abreast.
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Old Feb 28, 2019, 5:08 am
  #48  
 
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Originally Posted by Brisbane Road
This is what came to my mind as well. Seems very odd to be running two very similar long haul aircraft with a pretty high fleet count for both. Not an expert but I believe there aren’t that many other carriers that do this for obvious reasons.
Doesn't it offer some protection against unforeseen problems, like the 787 RR engine issue. Also, I assume it gives you an in with both Airbus and Boeing for future orders, with both thinking they can expand either way, thus increasing BA purchase price leverage?
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Old Feb 28, 2019, 5:10 am
  #49  
 
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Originally Posted by orbitmic
Thanks. To clarify, are you saying that I am mistaken that the 77X is intended to have an economy cabin layout of 10 abreast as opposed to 9 abreast for the 350?
No, that part is true. A wider cabin will allow for a slightly more comfortable 10-abreast layout which is intended to be standard.

I was referring to trying to achieve a similar capacity to the a350-1000; there was no active attempt to squeeze in more seats to match capacity. The 777-9 is simply larger and offers more capacity. That's just the way it comes.
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Old Feb 28, 2019, 5:16 am
  #50  
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Originally Posted by hemschmall
I was referring to trying to achieve a similar capacity to the a350-1000; there was no active attempt to squeeze in more seats to match capacity. The 777-9 is simply larger and offers more capacity. That's just the way it comes.
Thanks indeed, higher capacity, as mentioned I was wrongly thinking of the 778 which I believe has the same standard capacity as a 351. To clarify, on my point on the seat layout, I was not suggesting that the 10 abreast would mean smaller seats or were in the same width as at th 35X, just that I prefer rows of 9 to rows of 10 (and for that matter rows of 8 to rows of 9) at constant seat width.
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Old Feb 28, 2019, 5:18 am
  #51  
 
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Originally Posted by BOH
Seems a bizarre decision to order a virtually identical type with similar capacity and range and mission profile, thereby increasing the costs by running two fleet types.
I wouldn't agree, they aren't similar in terms of capacity. Whilst (I don't think) we know what the config of the A350 for BA will be, we do know that the 777-9 will have 325 seats. That's more than the 77W and puts it in the same league as the 744. I don't think the A350 will come close to this sort of seating capacity, especially when a 4 class config is put together. Also, cargo is important and the 777-9 can carry more of it than an A350.

Given the cessation of the A380 and the fact that no one wants to order new 747s, the 777-9 is the largest option out there, which is quite important when it comes to maximising capacity in a slot constrained airport.
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Old Feb 28, 2019, 5:18 am
  #52  
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Despite the hikes in the fuel price, competition from LCC's/state funded airlines and all the tales of gloom and doom one reads about it has to be said these results look pretty solid.
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Old Feb 28, 2019, 5:37 am
  #53  
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The continued effort to reduce non fuel related costs sounds to be a pre-empter for product and staffing cuts once again. So, will be interested to see which way they plan to do this and line their own pockets.
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Old Feb 28, 2019, 5:54 am
  #54  
 
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Originally Posted by lost_in_translation
A few other interesting bits from the call transcript.

Struggling on Hong Kong due to 'overcapacity' (it's all CX's fault, in other words) and "that's something that we'll probably be adjusting for the year" so possibly a down-gauging to Hong Kong in the works? "A lot more to come" on reducing non-fuel unit costs which sounds ominous. Lots of assurance that the 777s will be retrofitted with the new Club World but this is clearly going to be an extremely slow process.
Interesting note. CX’s fault could be more than capacity, but quality Perhaps a hint on the new 351 without F by the way?
Anyway among all destinations, only HKG is mentioned?
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Old Feb 28, 2019, 6:04 am
  #55  
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Originally Posted by SLGO

Interesting note. CX’s fault could be more than capacity, but quality Perhaps a hint on the new 351 without F by the way?
Anyway among all destinations, only HKG is mentioned?
Asia is 'lower strategic significance' for BA as an explanation of why the numbers there are flat and Hong Kong is singled out as a particular route that's 'lagging', no others in Asia mentioned.

Don't disagree that it's a quality point as much as capacity one as CX has made several comments about wanting to acquire further LHR slots (hence why they started LGW). Purely anecdotal but at both my current and previous finance sector employer everyone who has discretion on flight choice requests to fly CX to HKG rather than BA, including myself.
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Old Feb 28, 2019, 6:26 am
  #56  
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Originally Posted by lost_in_translation
Struggling on Hong Kong due to 'overcapacity' (it's all CX's fault, in other words) ...
Originally Posted by lost_in_translation
Don't disagree that it's a quality point as much as capacity one as CX has made several comments about wanting to acquire further LHR slots (hence why they started LGW).
It would be interesting to know which cabins are suffering from overcapacity. I know that HKG has long struggled with yields and traffic in Y, and AIUI that's a cabin in which CX has a strategic advantage that BA cannot resonably hope to compete against, leaving aside all issues of quality.
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Old Feb 28, 2019, 6:29 am
  #57  
 
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Originally Posted by Globaliser
It would be interesting to know which cabins are suffering from overcapacity. I know that HKG has long struggled with yields and traffic in Y, and AIUI that's a cabin in which CX has a strategic advantage that BA cannot resonably hope to compete against, leaving aside all issues of quality.
Quality has to be part of it on the HKG route. I imagine BA will struggle to compete with CX in every cabin. They also have the upper hand in lounges ex LHR.
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Old Feb 28, 2019, 7:02 am
  #58  
 
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Originally Posted by Globaliser
It would be interesting to know which cabins are suffering from overcapacity. I know that HKG has long struggled with yields and traffic in Y, and AIUI that's a cabin in which CX has a strategic advantage that BA cannot resonably hope to compete against, leaving aside all issues of quality.
What's the strategic advantage in Y? More useful onward connections...? Must say that every time I've perused CX fares from the UK they seem to be rather high in all cabins.
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Old Feb 28, 2019, 7:04 am
  #59  
 
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I believe on the 777X GE engines are the only option. I'm presuming the same holds for 777-9, I can't imagine BA opting for GE specifically?
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Old Feb 28, 2019, 7:30 am
  #60  
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Originally Posted by etiene
What's the strategic advantage in Y? More useful onward connections...?
AIUI, a catchment area that in theory spreads across the whole of "greater China". An extension of that reasoning would presumably bring the Philippines in as well.
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