I agree Rex, the best margins are to be made in premium seats, as long as you can put bums on seats without too many upgrades. I also agree that a return to very high oil prices would put a strain on low cost long haul travel margins. Holiday makers are not so keen on paying for premium seats though. The people buying these low cost seats were never going to buy premium seats from BA, so they are not directly taking revenue from BA. Level is tapping into a completely separate market, however any expansion of Level at LGW uses slots that could have been used by BA. IAG is about diversification without extreme interference with the BA brand, and Level helps to achieve that aim. Veuling did not arrive at LGW, but the threat was used to improve efficiencies there, which then filtered across to short haul at LHR. The same tactic could very easily be utilised against BA long haul, and that is bad for BA pilots whether or not Level survives in the long term. “Guys, we are going to use these new slots to expand Level unless efficiencies are made.” Sound familiar?