British Airways
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Fare surcharges - pots & kettles
Maybe Virgin is trying to stitch up its minority shareholder by triggering the probe. For example - SQ in its 22 April 2005 press release - "The revised surcharge is in line with the latest increases of other international airlines and is subject to official approval in some markets."
Meanwhile, BA scored own goals - in its 8 September 2005 press release -"We believe that it is better to be transparent with our customers about the
price of fuel by showing the level of fuel surcharge they are paying rather than hide the costs by raising fares behind the scenes like some other airlines
choose to."
I notice that on the BA website the fuel surcharge is no longer separately shown - if only BA had done that from the start.
Meanwhile, BA scored own goals - in its 8 September 2005 press release -"We believe that it is better to be transparent with our customers about the
price of fuel by showing the level of fuel surcharge they are paying rather than hide the costs by raising fares behind the scenes like some other airlines
choose to."
I notice that on the BA website the fuel surcharge is no longer separately shown - if only BA had done that from the start.
Too mean to buy a long personal title
Originally Posted by Analcyst
I notice that on the BA website the fuel surcharge is no longer separately shown - if only BA had done that from the start.
Finding out the current level of the fuel surcharge itself has always required a bit of digging.
Originally Posted by Skipness One Echo
On a sombre note, does anyone know if the troubles at Varig are an opportunity for BA to get back their former 777s G-ZZZD / E which are on lease to the Brazilians. They are still desperate for long haul capacity at EGLL.
2. Ex-Varig aircraft have a reputation for having unexpected engineering "surprises" for new operators. Ask Finnair, who took an MD-11 from Varig a short while ago.
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Price Fixing
I see the US lawyers have started a Trust Action against BA. If BA loses Hundreds of millions in legal fees and maybe fines as a result of the actions of senior managers presumably that would constitute Gross Misconduct and require the return of their recent huge bonuses and the loss of their pension rights. Now wouldnt that be ironic.
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This was in the Independent Online today,
http://news.independent.co.uk/busine...cle1116883.ece
Urgent need for action at BA
British Airways has thus far handled its spot of bother with the competition authorities over alleged price fixing in lamentably poor fashion. Initial reaction was like that of a rabbit paralysed in the headlights of an oncoming car. It didn't seem to know quite how to respond, beyond naming two of its most senior executives as having been put on leave of absence for the duration of the inquiry. In so doing, BA has already, in effect, tried and convicted them.
Price fixing is these days no laughing matter. It is a criminal offence carrying the harshest
possible of penalties. For an organisation as reliant on public trust and goodwill as British Airways, it is essential that the matter is cleared up at the earliest possible opportunity.
A damage limitation exercise is already under way, to the effect that no other executive knew anything about the price fixing alleged. Yet this kind of off-the- record spin really doesn't suffice in circumstances like these.
It may well be true, but there's no independent evidence to support it. What the City needs to know is whether this was just an isolated incident, perpetrated more in naivety than deliberate chicanery, or whether it is endemic, running right through the culture of the organisation and its chain of command like a stick of Brighton rock. As ever in circumstances like these, the fear has to be that it is the latter.
There's no point in waiting for the judgement of the Office of Fair Trading. That's going to take for ever, and in the meantime everyone will continue to speculate. BA needs to order its own independent investigation as a matter of urgency, both to establish the facts, and, if they are bad, to recommend appropriate action. Only then will the boil be properly lanced.
http://news.independent.co.uk/busine...cle1116883.ece
Urgent need for action at BA
British Airways has thus far handled its spot of bother with the competition authorities over alleged price fixing in lamentably poor fashion. Initial reaction was like that of a rabbit paralysed in the headlights of an oncoming car. It didn't seem to know quite how to respond, beyond naming two of its most senior executives as having been put on leave of absence for the duration of the inquiry. In so doing, BA has already, in effect, tried and convicted them.
Price fixing is these days no laughing matter. It is a criminal offence carrying the harshest
possible of penalties. For an organisation as reliant on public trust and goodwill as British Airways, it is essential that the matter is cleared up at the earliest possible opportunity.
A damage limitation exercise is already under way, to the effect that no other executive knew anything about the price fixing alleged. Yet this kind of off-the- record spin really doesn't suffice in circumstances like these.
It may well be true, but there's no independent evidence to support it. What the City needs to know is whether this was just an isolated incident, perpetrated more in naivety than deliberate chicanery, or whether it is endemic, running right through the culture of the organisation and its chain of command like a stick of Brighton rock. As ever in circumstances like these, the fear has to be that it is the latter.
There's no point in waiting for the judgement of the Office of Fair Trading. That's going to take for ever, and in the meantime everyone will continue to speculate. BA needs to order its own independent investigation as a matter of urgency, both to establish the facts, and, if they are bad, to recommend appropriate action. Only then will the boil be properly lanced.
Last edited by Golden Ticket; 28th Jun 2006 at 18:51.
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Is it any coincidence that the OFT are now muscling into BAA's operations? Apparently 72% of airline passengers in Britain start or end their journey at a BAA controlled airport and there is allegedly a lack of choice! (Wow! It takes a whole Government department to work that one out?)
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Is it any coincidence that the OFT are now muscling into BAA's operations? Apparently 72% of airline passengers in Britain start or end their journey at a BAA controlled airport and there is allegedly a lack of choice!
Would probably be good for everyone involved to pay a commercial rate than whatever is set by the CAA as a price cap. I digress from the thread however...
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BA new aircraft orders put on hold.
Paxing All Over The World
It is, of course, one of the tasks of a CEO to keep the company's options open at all times. Saying that the company 'may purchase' is very easy to say and, indeed necessary for him to say, whether he means it or not. Given the current circumstances, he cannot say anything else but the nature of the game is that he still has to say it. 
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Not saying anything new. This is from July 2005:
British Airways to consider acquisition of new aircraft
Airline Industry Information, July 20, 2005
AIRLINE INDUSTRY INFORMATION-(C)1997-2005 M2 COMMUNICATIONS LTD
British Airways said on Tuesday (19 July) that its board would review plans to acquire new long-haul aircraft within nine months.
Possible new aircraft include the 555-seat Airbus A380 double-decker and Boeing Co's 777 and mid-sized 787, British Airways' chairman told the airline's annual shareholders meeting, adding that the carrier does not need to take a decision on fleet upgrade yet.
Also at the meeting, the airline's new CEO Willie Walsh said that he expected to adhere to plans for cutting costs.
It would also be interesting to know what the actual question that was put to him was and his full answer. Welt am Sonntag is a German paper so of course it's going to be of greater interest to a German readership that BA may consider European-built aircraft than non-European.
And, agreeing with PAXboy, he's not about to give Boeing a let-out re price in any negotiations over new equipment.
British Airways to consider acquisition of new aircraft
Airline Industry Information, July 20, 2005
AIRLINE INDUSTRY INFORMATION-(C)1997-2005 M2 COMMUNICATIONS LTD
British Airways said on Tuesday (19 July) that its board would review plans to acquire new long-haul aircraft within nine months.
Possible new aircraft include the 555-seat Airbus A380 double-decker and Boeing Co's 777 and mid-sized 787, British Airways' chairman told the airline's annual shareholders meeting, adding that the carrier does not need to take a decision on fleet upgrade yet.
Also at the meeting, the airline's new CEO Willie Walsh said that he expected to adhere to plans for cutting costs.
It would also be interesting to know what the actual question that was put to him was and his full answer. Welt am Sonntag is a German paper so of course it's going to be of greater interest to a German readership that BA may consider European-built aircraft than non-European.
And, agreeing with PAXboy, he's not about to give Boeing a let-out re price in any negotiations over new equipment.
Sims Fly Virtually
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Many moons ago (when I was but a whipper-snapper just out of apprenticeship!) BA was slated for ordering 737, rather than the "European" Airbus. At that time, BA (only just "ex-BEA and ex-BOAC") was pretty much Government owned, but going private. The original Airbus was designed with a range aimed at the "mid-European airline" market, and just couldn't hack the range required by an airline whose base was right at one edge of the region. The 757 was the right aircraft for the job.
Nowadays, BA can chose the right aircraft for their requirements without criticism. Whether they go for the "mass transit" market with the 380. or the "distributed market" for the DreamLiner, is a matter for the BA board to judge.
And certainly a good time to "dip their toes in the water" and get the best deal that they can!
Nowadays, BA can chose the right aircraft for their requirements without criticism. Whether they go for the "mass transit" market with the 380. or the "distributed market" for the DreamLiner, is a matter for the BA board to judge.
And certainly a good time to "dip their toes in the water" and get the best deal that they can!
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That BA are now considering 380 at all must be an indicator of the level of discounting EADS are offering and the possibility of slots opening up but my money would still be on 748. Probably doing a "reverse Iberia" - putting pressure on Boeing for negotiating purposes.
ExSimGuy - Your point is very well made. The original 320-100 was so surpassed by the 320-200 that it's not surprising BA passed first time out. Nonetheless it would be good to see BA follow through and rationalise the rest of the fleet - maybe even some 318s to replace the 146...
If BA hadn't got rid of so many 757s they might be able to dusk all the EF 767s rather than some... and even take on the threat from CO/AA/NW and their wingleted 757s into places like MAN, BRS, etc.
ExSimGuy - Your point is very well made. The original 320-100 was so surpassed by the 320-200 that it's not surprising BA passed first time out. Nonetheless it would be good to see BA follow through and rationalise the rest of the fleet - maybe even some 318s to replace the 146...
If BA hadn't got rid of so many 757s they might be able to dusk all the EF 767s rather than some... and even take on the threat from CO/AA/NW and their wingleted 757s into places like MAN, BRS, etc.
Originally Posted by MarkD
Nonetheless it would be good to see BA follow through and rationalise the rest of the fleet - maybe even some 318s to replace the 146...
If BA hadn't got rid of so many 757s they might be able to dusk all the EF 767s rather than some... and even take on the threat from CO/AA/NW and their wingleted 757s into places like MAN, BRS, etc.
If BA hadn't got rid of so many 757s they might be able to dusk all the EF 767s rather than some... and even take on the threat from CO/AA/NW and their wingleted 757s into places like MAN, BRS, etc.
Also as far as I know all the 767s have now been 'dusked'.
As for taking on the big yanks in the regions, forget it. London Airways donchaknow.
