PPRuNe Forums - View Single Post - British Airways - CC Industrial Relations Mk V
Old 6th Jan 2010, 18:48
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LD12986
 
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romans44 - With respect, it is somewhat naive to think that just because BA hasn't imposed changes by way of 90 days' notice of termination of contract, doesn't mean they haven't considered doing so, and won't do so.

Consider the following:

1. BA is already set to make another record loss this financial year which could have been mitigated substantially had BASSA played ball from the outset and agreed to sensible changes. BA can't keep on making heavy losses forever.

2. The 12 day strike threat will have already done a lot of damage to BA.

As soon as the strike threat was known holders of those lucrative fully flexible bookings will have been able to take their business elsewhere. All available seats for the 12 day strike period were taken off sale from when the 12 day strike was announced until the High Court stopped the strike - these seats being last minute bookings that would have commanded revenue at or near to full fare.

A lot of customers will have been put off making future bookings with BA, not least because of the ongoing strike threat, impacting on both revenue and cash flow.

3. The disruption due to snow before and after Christmas (not helped by BASSA repeatedly refusing to allow the disruption agreement to be put in place) will have cost the airline a lot in lost revenue, hotel accomodation, diversion costs etc.

This all in what is traditionally a very difficult quarter for airlines in any event. Unless things turnaround soon, BA may not have any option.

Last edited by LD12986; 6th Jan 2010 at 19:02.
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