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Old 15th Dec 2001, 18:34
  #28 (permalink)  
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Recover,

I accept some of what you are saying, but refer you back to my second post where I acknowledge that the T's+C's are a fairly small cost issue in relation to the waste elsewhere within BA....and I definitely agree about the coffee-drinkers by the stream!

Scope clauses or not, I still maintain that when EOG had not even come close to identifying or sorting out their own costs (albeit many of these costs being at head office), it makes no business sense to integrate a profitable CFE operation in this way into EOG.

Even if the atrocities of September 11th had never happened, I am certain that the whole of BA shorthaul at LGW (EOG + CFE) would end up losing money, and Rod would be back with his knife to make drastic cuts....having now demonstrated that short-haul at LGW does not work!

End result.....BA pilot job losses at LGW! Surely a more practical business approach, rather than integrating in this way, would have been the better long-term solution?

Again I would re-state that within months of the integration starting, CFE routes were beginning to deteriorate as the focus and expertise was lost on yield management, and costs started going through the roof.

Commercial suicide? I think so.

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