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Old 24th Jun 2009, 10:33
  #1143 (permalink)  
Carnage Matey!
 
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You might want to take a look at the Flyertalk forums to see what BAs regular flyers think of the food and entertaintment offerings on board. Whole threads devoted to which champagne is on board, or withering complaints about the IFE. I'm not sure your analysis is entirely correct JP. For point to point traffic perhaps for the independent buyer then yes it is, but BA makes the majority of profits from corporate contract customers, for whom price is an issue but also service, recognition, priority booking and myriad other factors. Deals can be swung on the basis of how many gold cards the company execs will be granted. If BA followed Ryanair we'd go under, it's not our market. I like to use an analogy with the car industry. Skoda make perfectly good, cheap, accessible cars with few frills and they sell extremely well. But BMW and Mercedes make expensive cars and they sell very well too. Why? Because the market is not homogenous, it's not one type of customer who values price over service, or service over price, or convenience over reliability, or anything else. It's a big, diverse marketplace, and there are lots of people who would rather pay the money and fly on bmi or BA or Lufthansa than Ryanair. I know I do. It's a popular misconception that Ryanair have stolen their market from the the traditional airlines. They haven't. What they have done is far more clever, they have created a new market from scratch from those who couldn't afford to fly previously. Yes, they've pinched a small proportion of customers from the majors, but Ryanair won't be the death of BA. Even Michael O'Leary doesn't think that.
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