While I feel really sorry for those affecte at BA, I dont feel that sorry. Inept accounting practices (on a dub-lhr-jfk in J the dub-lhr for £1) and an oversized managment that they will not cull means this is something of thier own making. I dont doubt their strategy towards profitability but it was based whether they accept it or not, on maintaining a quadropoly at LHR. These routes are highly profitable to AA and UA, even more so than VS/BA. They dont have flat beds and butler service, they offer the same crap they do on all other routes. But they charge £5000 for LHR rtn instead of £2800 at CDG/FRA. What does BA do, it needs the alliance with AA to cut cost and make it competitive with the Star Alliance, but it needs to maintain its prices. Branson will have the same problem of course, however he is ready to become part of the *A throught his partnership with SQ, and even more importantly he has a smaller and I believe now the classics have gone the way of the norwegian blue newer fleet. He is already adapting to the neww market conditions, not by removing J class seats a la KLM but removing low yield eco seats and installing more premium economy seats. The business dynamic has changed and companies arent paying the mega costs any more, at the same time they arent going to subject thier employees to the torture of economy.
BA should have said yessir to the DOT, I dont think they will get a third chance. And dont write of BMI