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Old 10th October 2008 | 12:49
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BOAC
Per Ardua ad Astraeus
 
Joined: Mar 2000
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meaningless if BA operates services inhouse at a lower cost than an outsourcer - thereby raising the headcount figure, but operating more efficiently.
- unfortunately a good theory but does not work in practice when each department is made a self-budgeting 'profit centre' and thus charges 'users' (other departments) an above market rate to cover the high running costs of an overstaffed outfit. This happened at LGW with MT who were charging 6-7 times the commercial rate for each crew transport journey. Could we get it changed? No. Too many 'industrial issues'.

Of course the money 'circulates' inside BA but all departmental budgeting/accounting costs money/time/manpower to process so it is not cost neutral as it appears. Again - it is much nicer to have your own people doing your own engineering/dispatch/check-in etc but it does cost more.
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