Re: BACitiExpress The final solution!
Willie Walsh is quoted in the Telegraph as saying "CitiExpress has been something of a challenge for us. The financial performance of this business has not been good enough. All parts of the business must contribute to us reaching the target of a 10pc operating profit margin."
I fail to see how reducing fares (from £99 return to £25 one-way) on a 49-seater aircraft (which already operate at 70% load-factors) will result in a higher yield. I find this especially the case considering the loss of Club Europe revenue.
How can this possibly result in BACX turning round a £30million/year loss into a 10% profit margin?
More immediately, re-branding is yet another step down the road in preparing BACX for sell off or a management buy out. If a new livery is unveiled next week (as suggested by the postcards) then it wont be long until BA profits from the sale of BACX.