The real test for IAG and BA's strategy is the next big industry downturn.
After 9/11 and the 2008 financial crisis, BA was in a considerable position of weakness. Post 9/11 was essentially a "lost decade" for the airline in terms of no investment in new aircraft and progressively shrinking route network and passenger numbers (from ~40m to ~30m pa).
That has now largely been reversed with passenger numbers up at record levels and a large number of formerly suspended routes reinstated (Seoul, Kuala Lumpur, Inverness, Belfast etc).
If IAG is in a position of relative strength in the next industry crisis then everything WW has said about the need for airlines to cover their cost of capital across the cycle will have been vindicated.
It's also a bit unfair to say that WW/AC don't care about customer service. IAG do monitor the NPS scores across all the group's airlines. But it's very obvious that in the case of short-haul they really see punctuality as the driver of customer satisfaction, not complimentary food.
Last edited by nguba; 30th Jul 2017 at 10:22.