This may seem a far-fetched scenario, but not according to Walsh’s own doom-laden forecasts. BA is in trouble, with recession and the banking crisis – banks accounted for nearly 40% of BA’s business-class traffic – pushing it to its worst-ever loss in the financial year that ended in March.
In recent weeks Walsh has issued dire warnings to staff, saying that almost all the business is unprofitable, the current awful trading situation will only get worse and that the company faces “a fight for survival”.
I'm begining to think that Willie is a bit of a Drama Queen with this "sky is Falling" routine.
Does he think that BA is the first airline to experience a large loss? He should look at his Amrican partner AA. They have experienced such huge losses over the years that make his look insignificant in comparison. Instead of crying about it though, they went on with their job and tweeked/changed their model around in hopes of getting out of it.
BA, on the other hand, seems to have chosen to cry that their highly milked business-class traffic has dried up. Grow up Willie, if your exorbitanly high yield Business traffic is down, change your yield management to reduce it's impact. Maybe even start trying to show some respect to your Y customers that up to now have only managed to show contempt for.
They need to do something proactive to improve their profitability. Crying about it in the media and asking employees to "work for free" only makes them look silly.