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Old 19th Apr 2008, 22:24
  #2369 (permalink)  
One Sixty until 4.
 
Join Date: Aug 2007
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Bye Bye BA

Happy to be corrected by Industry insiders, but I recall stories in the past that BA encouraged travel companies to siphon business travellers via LHR. This was done through payment of a higher commission than if the pax were booked onto BA's MAN originating routes with a subsequent transfer to the ultimate destination.

So with artifically reduced Business flyer loads on MAN based routes, the figures showed that the J class market is extremely limited in the Regions. It made the cessation of mainline routes that bit easier on the basis of yield.

BA has operated a business strategy of shifting the premium pax via its London hub (and fair play to them for creaing profits that way).This strategy was assisted by a lack of real competition. The European opposition had at most one or two flights per day to MAN, so the LHR connection was obviously preferable to making the trek to FRA or CDG and the return leg. BA had it all stitched up - and they objected to licence applications from other would-be operators even though BA had no intention of operating the route themselves.

But things change. Mainland operators now fly several times a day to MAN from the main Euro hubs providing the worldwide connections. The improvements in rail travel mean the domestic traveller is using Virgin trains to get to London. I expect the LHR shuttles to steadily lose pax - to the point that they also become uneconomical and BA axe them or reduce frequencies. BA could end up losing the bulk of the regional J class pax to the foreign competition.

We're realistic enough to know that MAN can't sustain routes to all corners of the globe, but to stealthily jettison those outside the M25 and to present yourself as the national airline just grates a bit.

One Sixty until 4. is offline