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Old 3rd July 2008 | 06:08
  #60 (permalink)  
Walnut
 
Joined: Jan 2006
Posts: 270
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From: Cyprus
This purchase of L'Avion looks stranger & stranger, one wonders what business model BA is really following?
Assuming they really did pay £28M for the airline (excluding cash) then each a/c has to generate £40,000 profit pd to cover that cost spread over a year. So between a full load of say 50 club equivalent pax that's £800 per pax. And that's before fuel or any other operating costs are added in.
Next the L'Avion a/c are configured differently & go to EWR, so there does not seem to be much commonality.
In fact I do believe that it is BA that has got it wrong with its route selection, EWR is much better as a hub for onward US connections & it is also easier to get into Manhatten.
So I believe the rational for this purchase is to make Open Skies grow as quickly as possible,regardless of profits, in order to justify the future purchase of chunks of BA as forecast by the pilots union
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