Originally Posted by
Vokes55
Finally a sensible post in this thread.
BA know that Norwegian are trashing their yields - just check out the prices on BA flights to US destinations served by Norwegian vs. those that aren’t.
If they didn’t see the Norwegian model as a credible threat, they’d have ignored them and let them burn themselves out.
Thing is, IAG have hangar 51, NAS don't. IAG have a much wider scope ofobusiness to experiment with, see what works, what doesnt, NAS don't.
I think the potential takeover was nothing more than IAG identifying weakness in the business model before reconfiguring level for the kill. It's why they are loss leading certain markets. You only have to see densification of BA 320/321 and LGW 777 to see that this is a fight across the group for IAG. Not to forget that IAG can burn cash for a lot longer than NAS. What was the profit before share buyback last year for the group? NAS aren't turning much of a profit due to their overheads and debt servicing. Plus they cannot reconfigure quick enough to survive the IAG onslaught imho. Matter of time.
Imho the pay to use wi-fi in business and first is a big mistake from BA. Inflate the prices 5 quid and offer it free to every business class or first customer. People will resent the time spent entering in card details when it effectively is less than 0.1% of the face of the ticket cost. For Business travellers WiFi is essential. NAS have this right.