eagle4121

Maybe they are trying to compete on a saturated market where to making money requires a sizeable airline with full low cost business model.

Raffles

Because of the vast amounts of money generated by airline credit cards in the US, there have been proposals suggested for a big bank to start or buy an airline, purely so that it can generate credit card revenue.

Before you dismiss this as nonsense, note that American Airlines is valued at 3% of the valuation of JP Morgan Chase - buying AA wouldn't even touch the sides.

sxc

Don’t forget that subcontracted ground staff are still people with jobs. If BA shuts down, then those ground staff will probably be sacked by their companies too.

oneworldglobetrotter

Sad news, especially when the cost of flying out of LHR is going to increase dramatically if HAL get their way and double passenger charges as they are proposing.

WW always wanted a presence a LGW so that BA could have a stronger negotiating position with HAL at LHR. Similar to LH, who use MUC and FRA to compete for traffic growth and routes.

BA are now in the hands of a monopoly at LHR.

Akoz

How much would they get for the slots though? Would there not be currently available slots from the Virgin / Norwegian pool?

BAeuro

BA will need to make a decision on selling flights soon, otherwise travellers looking at S22 will go to other airlines. They would be best transferring the schedule like for like up to LHR (just for now), so bookings can keep flowing.

Plus, LHR will be full by 2024/5. So what happens then? Do BA start hiking fares due to limited supply or move back into Gatwick.

Dilettante

Long (l-o-n-g) shot but would pulling out of Gatwick not remove a lot of the crossover between IAG and easyJet? The same easyJet who just rebuffed a takeover attempt?

dca100

Maybe there will be another fire sale of fixtures and fittings. I've got space in my hall for one of those horse lamps!

vectismanpaul

They may still need the lounges for the long haul flights!

Bohinjska Bistrica

The Gatwick slots BA has are worth next to nothing presently, surely? Not going to raise much money out them I can't imagine. At any rate, the suspension of the usage rules won't go on forever and anyone that wants to bide their time will find them up for grabs soon enough when BA doesn't use them.

Not good at all. Hopefully something can be salvaged from this but it looks pretty bleak; a total juxtaposition with the first recent favourable government announcements on travel.

Akoz

I'm not so sure.
If the plan is still to launch a BA(LowCo) Ltd and the pilots aren't playing ball, they would have to go down the redundancy/rehire route, which would also mean fewer staff numbers in the short term until training starts.

Binning the current schedule allowing a few months (say starting sales round Christmas) would demonstrate a break in continuity. A three month gap before hiring staff would also mean that the risk of employment tribunals are avoided.

Also having off loaded the staff, BA could then also wait to see what happens to the slot rules for s22. This may allow then to delay even longer then a s22 start.

If the current rules are extended (for which I believe there already is provision). Then they can hand back 50% of slots at no cost provided they operate 50% of the remaining slots, they would then get the full slots back in future years. This could be serviced by the few long haul services and a few W rotations from LHR. In this cast they could push a LGW LowCo launch further down the line.

While the slot rule relaxation may not be as generous, there may still be something.

IMHO. Any sale of slots at this current time is likely to raise very little if anything and nothing like what they paid for them or what it would cost to buy some in 2024 onwards.

Fundamentaly I think that they will do what ever they can (subject to reasonable costs) to keep the slots and not allow in new competitors or further EZY expansion in the medium to long term.

Symmetre

Pray BA doesn't follow Air Canada's example with its "low cost" operation, rouge. That's where they take a bunch of mainline aircraft, shoehorn in more seats till you have an inhumane 29-inch pitch throughout, then staff them with new pilots and junior flight attendants who are paid half what their mainline peers earn, with no pension whatsoever. Cut onboard service to the bone, then have the audacity to charge consumers the identical fares that they formerly paid for mainline service.

Air Canada's rouge operation is "low cost" only for the airline. It is not low cost to the public.

To complete the package, sell this new service to the public and existing airline staff by initially claiming it will serve holiday routes only, then gradually extend it into overall operations, ultimately using it to replace mainline service on all but the most lucrative routes where current competition simply won't allow it.

jayjaygee

It wouldn't surprise me if Wizz made another unsuccessful bid for EZY. If that's rejected it could make for some uneasy conversations at EasyHQ and maybe IAG's plan all along was to reduce BA at LGW for a purchase of EZY.

There's still lots of movement to come in the respective share prices over the next 6-12 months.

sfozrhfco

Frankly, the airport and those workers are likely better off without BA--which is basically slot squatting at the moment. If another carrier comes in and can fully utilize all the slots that generates more revenue for the airport, the shops/restaurants at the airport, and the ground staff that are needed for those flights.

Hydebear

Don't forget IAG are still trying to get the EU to approve their consumption of Air Europe....doesn't preclude a purchase of EZY but makes life complicated!