PPRuNe Forums - View Single Post - BA Direct Entry Pilot.
View Single Post
Old 25th Nov 2017, 15:51
  #4063 (permalink)  
RexBanner
 
Join Date: Feb 2005
Location: Botswana
Posts: 890
Likes: 0
Received 0 Likes on 0 Posts
BMRR the real fact is the revenue generated by the premium seats on the beach fleet far outweighs what BA/IAG could earn by sticking a load of Level A330’s onto the same routes and filling them up with cheap fares. The margins are far better (even after crew costs).

IAG aren’t in this for the consumer, there’s no reason why they would give up that section of the market and, in future, make less money operating the same routes in a low cost fashion. Make no mistake Level is all about making Norwegian bleed and getting rid of a permanent threat to their profits and return for shareholders. The only reason it even works is because IAG got some end of line A330’s for a ridiculously low price. Going forward that’s not going to be sustainable.

I get the paranoia but ultimately an airline (or airline group) wants to maximise its profits as much as possible (hence the battle with Norwegian in the first place). I very much doubt IAG are in the business of sacrificing profit just to target and decimate the T’s & C’s of a small portion of its workforce.

Last edited by RexBanner; 25th Nov 2017 at 18:04.
RexBanner is offline