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Old Dec 14, 2016 | 6:57 am
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whats next at BA?

Cost cutting in all cabins..Unhappy premium passengers..looming strikes...whats next?

I'm wondering if something major is going to happen soon...someone to take the fall or if its business as usual..and no one really cares at BA. I just get the feeling that something is on the horizon..or maybe i'm just overreacting and this is just business in the 21'st century?
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Old Dec 14, 2016 | 7:06 am
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Looming strikes?
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Old Dec 14, 2016 | 7:14 am
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Transatlantic airfares continue to fall due to new entrants
Premium cabin fares continue to fall due to global overcapacity

Airlines with a high cost structure and/or generous cabin configurations (e.g. reverse herringbone) struggle financially and make a inappropriately low return on capital

BA is no longer a "world leader" but is a viable business that earns an appropriate return on capital
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Old Dec 14, 2016 | 7:17 am
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Originally Posted by ajeleonard
BA is no longer a "world leader" but is a viable business that earns an appropriate return on capital
Isn't that the status quo?
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Old Dec 14, 2016 | 7:25 am
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Originally Posted by Paralytic
Isn't that the status quo?
Not really, because currently, BA yield is going sharply down (much faster than costs) whilst AF and LH is up.
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Old Dec 14, 2016 | 7:46 am
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Isn't this thread posted every week?
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Old Dec 14, 2016 | 7:59 am
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Originally Posted by obduro
Isn't this thread posted every week?
Quite with each new thread in a slightly different guise.

Any service shortfall no longer brushed off, or dealt with in situ, but carefully catalogued, preferably with pictures and then backcombed into the big narrative that BA is ruining its brand with senseless cost cutting
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Old Dec 14, 2016 | 8:00 am
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Yep, strikes

https://www.theguardian.com/business...w-christmas-ba
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Old Dec 14, 2016 | 10:11 am
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I can't foresee Cruz lasting very long if current complaint trends echoed on here continue...surely?!
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Old Dec 14, 2016 | 10:27 am
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Originally Posted by jock
Cost cutting in all cabins..Unhappy premium passengers..looming strikes...whats next?

I'm wondering if something major is going to happen soon...someone to take the fall or if its business as usual..and no one really cares at BA. I just get the feeling that something is on the horizon..or maybe i'm just overreacting and this is just business in the 21'st century?
If you have insight into BA's market research, that will likely answer your questions.

It is customers speaking to BA about what customers want from the market. While the infintesimal market share represented by FT whinge about the selection of champagne in F, the large corporate customers shouldering the cost structure of filling aircraft with paying customers are telling BA to cut the frills.

If indeed BA could fill its F cabin with 8, 10 or 12 people paying the full F fare basis with no discounts, avios, upgrades or other give-aways, one hopes that F today would be the F of old. But, without being privy to BA's load and distribution data, I do not think it possible anymore.

As an example, a single on one of BA's services JFK-LHR tomorrow in full fare F marketed at $10,916 / GBP 8,592.
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Old Dec 14, 2016 | 10:30 am
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I think just more of the same - cut, cut, cut - if you hit bone, put a little flesh back and bandage it with PR - i.e. - pending improvements to CW next year.
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Old Dec 14, 2016 | 12:13 pm
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BA fall out with HAL over cost of 3rd runway and are evicted from LHR or structural defects are found during completion of the First Wing which require complete closure of T5? OK I will get better odds on Hull City winning the premiership.
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Old Dec 14, 2016 | 12:15 pm
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At some stage they will make you buy food on board.
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Old Dec 14, 2016 | 12:49 pm
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Originally Posted by rockflyertalk
I can't foresee Cruz lasting very long if current complaint trends echoed on here continue...surely?!
I wouldn't bet on that. By contrast, however, you can rightly foresee the current complaint trend continuing if Cruz does stay!!!
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Old Dec 14, 2016 | 2:32 pm
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Originally Posted by orbitmic
Not really, because currently, BA yield is going sharply down (much faster than costs) whilst AF and LH is up.
I assume you talk about RASK. FX adjusted RASK was down 5.9% in Q3 for IAG (no public data for BA) but FX adjusted CASK was down 5.4%. From investors' point of view, IAG actually did much better than expected in keeping spread relatively constant. LH's FX adjusted RASK was down 6.7% in Q3 while AF's FX adjusted RASK was down 6.5% in Q3. So i would say IAG did much better than AF and LH unless you already see Q4 data that suggests otherwise.

Last edited by littletiger; Dec 14, 2016 at 2:40 pm
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