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Old 1st Aug 2006, 11:35
  #131 (permalink)  
barryt
 
Join Date: Feb 2005
Location: Cape Town
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PAXBoy I can understand and appreciate BA's risk management strategy with regard to acquiring the A380, and it makes sense, but there is also a fine balancing act that will be required, because (as I believe), there will come a time when they will need to act, and when (not if, I believe) they do, it will yet still be a trade-off between "problems" and maintaining the economics of their own business - and they will go to the back of the queue when they put in an order, like anyone else (unless they perform special "tricks" ... . If they leave it too long, it will begin costing them dearly, since I believe the uptake on orders for the A380 will only increase, and begin to snowball over the next 2 or 3 years. One argument has always been that there isn't really a market to accomodate enough of them in the air. And it's a valid one. Except it assumes the kinds of pax will remain the same. And the fares will remain roughly the same. I believe a new "thing" is starting, and it's rather subtle. I believe more and more people are going to begin flying (people who perhaps previously couldn't afford to), and the era of "low cost international carriers" is upon us. I really believe there is a subtle change taking place in "pax profile", for want of a better word. And it's going to support the A380. And I believe it will ultimately make the continuing operations of the 747 uneconomical by comparison. Singapore Airlines etc have been quick on the uptake, and in my opinion, very shrewd indeed. They are going to make a "killing" in the future I think....Although all this will take a good few years I though probably, who knows HOW many years, but the whole scenario could be on us a lot quicker than we think, and BA could easily be caught with their "pants down" as it were, so whether they like it or not, it makes good business sense to maintain some kind of tangible hold on putting orders in for the A380....Richard Branson knows what he's doing... But then again, he's always been light-years ahead of BA....
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