will decimate BA (cost base being their biggest problem)
Considering BA were making a profit 12-18 months ago with a ridiculously high bottom line (£30k average cabin crew wage - £66k for CSDs!
) and BA having a relatively 'mature' (the right word?) crew, I would assume that within the next 10-15 years when BA/IB/AA pretty much will become one - I dread to think how competitive they will be.
They have this on their side:
1. Economies of scale
Every possible cost you could think will fall in price per unit. They will be the biggest airline in the world in terms of traffic, revenue miles, passengers and aircraft. Already BA/IB are calculating massive savings from their merger, never mind when AA are in town!
2. Largest airline across the Atlantic
BA currently have more flights than any other carrier between Europe and the US and Canada. IB pretty much have South America sown up. AA would just add to both.
3. Heathrow
The biggest asset for BA. Their dominance at the airport is what is keeping them afloat. The lack of slots is limiting competition which in BA's current state would see them crying to the Chancellor.
4. South America
IB/AA cover the market more than any other international airline.
If we take BA as of this evening - they are in a bad state. However, within the coming years as they marry IB and get ever closer to AA (if the next stage of the US/EU agreement goes through it will only be a matter of time), plus a plummet in the bottom line (economies of scale/retirement of high earners), they look very much stronger.
Also take into account the BE share which BA don't seem reluctant to disown and their lucrative LCY operation.
The major players on the international stage in the western world are going to include:
AA/BA/IB
LH(inc. subsidiaries)
AF/KL
CO/UA
DL/NW
Plus the low cost airlines on either side of the Atlantic.