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How Can BA compete to SYD without the A380?

How Can BA compete to SYD without the A380?

Old Nov 6, 04, 2:15 am
  #76  
 
Join Date: Aug 2004
Programs: AA Exp- 4MM; UA 1K; BA Gold; 9W Plat; SPG Plat; Hilton Diamond; LH FT; DL Gold
Posts: 458
Different philosophies - volume vs frequency

In my view the debate over low-frequecy, high capacity, hub flts vs high-freq, medium capacity, direct flts in not over. It is clear that there are different market segments but whether they are all viable is open. BA does not need to make a bet yet - it can wait for some actual experience to influence its decision while it gets its debt in order. While the benefits of being a launch customer may be lost, for an airline of BA's size, Airbus at least will find a way to offer the deal it gave VS or SQ.

Airbus is trying to develop a competitor to 7E7. This tells me that their current and prospective customers have clearly expressed in the 7E7 feature set (long-range, medium to low capacity, fuel efficiency without a significant premium over a 767).

There have already been enough initial orders for the 380 to indicate that on certain trunk routes (Europe-SE Asia, Europe-US west coast, US-SE Asia, Australia-Europe, possibly Australia - US) there is sufficient demand to supprot 380 operations. 380 ops needs complementary aircraft or feeder traffic anyway (to connect from the hubs).

BA IMHO has the luxury of time to wait and make the right decision rather than a quick decision. On this one at least, I support the current mgmt cautius stance.
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