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Old 6th May 2002, 08:13
  #44 (permalink)  
CapedCrewsAider
 
Join Date: Mar 2002
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Snooky:

you are quite clearly not receptive to the facts. GB Airways has never 'nicked' any of your aircraft. It would appear that not only do you think all routes worldwide are your birthright, now all new aircraft off production lines worldwide are also rightfully yours. The facts are as I stated, not your local rag.

Similarly as you all claim to be working so hard, productivity etc. (Or are you saying you are idle at the moment).How would all you overworked BA pilots find time to operate any more routes. I assume you would have to recruit more pilots. I suppose your argument now is that this work belongs to unemployed pilots.

As it seems that BA seem incapable of entering into any venture without making a complete horlicks of it could I on behalf of all the other pilots in the UK ask BA to stay off OUR (the rest of the UK airline industry) routes so that at least WE ( the rest of the uk airline industry) can profit from them.

Would BALPA also represent the best interests of the UK industry as a whole and not come up with (anti-competetive) harebrained schemes such as S'CRAP or whatever it's called. There will always be someone leaner and meaner waiting in the wings to cash in on BAs failings.

BALPA should concentrate on the real problems in BA i.e. throwing management at every tiny problem, and not pander to the misconceptions of their insular pilot workforce.

BA pilots may be interested in this City analysis of the outlook for BA.

'There appears to be little direction in this share recently as the lack of any news one way or the other leaves the stock blowing in the wind. The most obvious issues, such as the security situation and the price of oil, have left BA pretty well untouched. The two issues are obviously linked, and the violence in the Middle East has caused the most worries to those who watch the oil price. Fears earlier this year that the conflict would not be contained and would spread to the rest of the region have been unrealised. Such concerns had lead to a rise in nearly a third in oil price in the last year. The recent intervention by the USA seems to have cooled fears recently, and since Israel pulled out of Hebron over the weekend the price appears to be settling near $26.50 for Brent June delivery, and Jet A1 at $28.80 over the last month. These values are within the 'ballpark' for planning. So although the situation is more worrying then at this time last year, we seem to have found a level plateau of hysteria.

In the airline sector in general, many carriers are reporting good loads, not the least BA, but particularly the no thrills operators. The inference is therefore that travel by air is not a dead duck, simply one that price pressure is bearing down on. The astute consumer is prepared to fly, prepared to pay, but only what he thinks is value for money. Some good news in that Air NZ will finish a difficult year at close to break even, some bad news that United seems to be unable to address its industrial issues and is just looking up Chapter 11. In all of this it seems that our dearly beloved BA will go for about £547m loss for this year, which is better than we expected.

So in the absence of any 'real' news I have once again bought beer, lunch etc for some dear friends in the hope of finding one or two answers. It is apparent that loads are good, but with limited yield, and repeat business is also holding up well. Future sales are also helping to address the current mantra of 'cash is King!' (and presumably still it's President Emeritus). Bleating about yields will not help one bit, cutting its cloth to suit its budget is much more likely to lead to profit.

Things that have not gone well include yet another IT cock-up with the infamous department once again failing to manage a mission critical system effectively. If there is a department in the company that could usefully be outsourced, it must surely be this one. BA badly needs expert help and management in this area. It is abundantly clear that BA must fully embrace web based technologies and get them right. Correspondents to this and other annals seem to have little faith in the current strategists for IM at BA, so here is nettle waiting to be grasped.

Engineering seems to have been hit very hard by Future Size and Shape, with the base at MAN closed and mechanics being laid off. I find this an area of concern since one of BA's main strengths is its operational integrity and reliability. Use of local contractors will not in my opinion lead to an increase in quality, only a drop in price, and will simply put BA 'in the queue' behind the increasing numbers of other operators at the airports it flies to. If BA ends up waiting for essential maintenance and servicing between flights, using the same contractors as the competition, then they will have discarded an important tactical advantage for little gain.

Cost cutting has hit LHR with many of the staff having shifts cut, and overtime reduced. This had an adverse effect on the ability of handling personnel to operate effectively. Together with the baggage handlers 'clocking off' and drivers being in short supply, this has led to a number of instances of delayed departure, crews being in the wrong place, perishable cargo left rotting, and bags left behind. Once again a product critical function that needs to be carefully managed to ensure that the staff are motivated and operate efficiently to underpin that 'operational integrity' that defines BA.

The dispatchers, who are loading supervisors have seen their numbers reduced. Without these people, the aircraft simply cannot depart or even arrive without delay. If you have sat on an aeroplane that landed on schedule, only for you to wait half an hour for someone to open the door, it is likely that this is the person you are waiting for. BA have adopted a predictable solution, whilst cutting these vital staff, they have increased the number of managers in that department.

The Cabin Crew budget remains at a staggering £485m, nearly three times the equivalent budget for Virgin for instance. Bigger airline you say, but not when you consider that BA have recently increased the number of Managers Customer Service to 104. These individuals, despite their name, do not serve customers or fly on aeroplanes. In an effort to save money they will be reducing the number of cabin staff on some flights. I can only imagine that this will adversely effect the standard of service on board, meaning that premium passengers will not have their expectations met, let alone exceeded. The quantities of catering are also being reduced, with even the number of bread rolls being limited. Eat before you go seems to be the watchword. Surely more focus on the on-board product will deliver more revenue than petty minded penny pinching.

Lastly, the pilots appears to be heading into turbulence. The new Director appears to be of the 'old school' and believes optimum performance is achieved from maximum aggro. There is also a new computer system (Oh dear) being introduced to reduce the amount of fuel used by the aeroplanes, which the pilots are unhappy about. Given the recent success rate of their IT department, I should expect we will all be asked to get out and push the last thousand miles. To treat such a group in this way is very concerning indeed, given their potential to seriously damage the company in the event of industrial action. Very disappointing.

My assessment remains fairly similar therefore to my previous posts. I suggest that the outlook for BA remains relatively good within the sector, provided one or two important issues are addressed. I still think that Future Size and Shape has yet to yield the promised savings. I sense a relaxation on the part of the company and a sigh of relief from vulnerable staff. Make no mistake, unless BA takes action to root out underperforming management staff, the company will not reach the '10%' return that Rod has targeted. Good staff are key to the success of any customer service industry, and rely on happy motivated people to achieve it. Industrial action is the last thing the company needs right now, and I'm afraid the management are not taking this seriously.

This stock is a potential outperform, but must try harder.'


Thses are your real problems. Not GB Airways.
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