BA Connect
Join Date: Aug 2002
Location: Switzerland, Singapore
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maybe because the E-Jet is much cheaper than an A318, as other airlines also found out. Ordering them now doesn't mean that they have to come next day...
And Embraer also promises to certificate for LCY - and it will be about the same difficulty.
Dani
And Embraer also promises to certificate for LCY - and it will be about the same difficulty.
Dani
Sell off BACon ? Well here are the financial options.
1. Sell to another airline (a "trade sale"). Difficult for BA because any other such airline is likely to be a competitor.
2. Sell to management. This is a euphemism for "Sell to mangement who have borrowed millions from financiers". And the financiers invariably want their money back, plus plus plus, in the medium term (typically about 4-5 years). And who would be in the market then ? See 1. above.
3. Sell to Venture Capitalists. Just a more open version of 2. above, with the same end result.
What is the value of BACon ? Typically it's the real value of the assets if you sold them on the secondhand market, often not much if the aircraft are leased, plus about 3-5 times annual profits, which we all believe is diddly squat, less any reorganisation costs like staff reductions. So there's not a lot in it for BA. Remember BA buying Dan-Air for £1 ?
From a purely financial perspective the best route which would maximise BA's revenue would be to franchise it out, preferably in sections rather than one chunk. This would be a complete going-back on the past decade in this area and lead to all sorts of "Grand Old Duke of York" comparisons. But it would give BA the best financial return.
By the way, have you ever seen the loads on BA out of LCY (especially midday), the routes abandoned, or the lack of subsequent expansion on the routes still operating ? It's not a gold mine.
1. Sell to another airline (a "trade sale"). Difficult for BA because any other such airline is likely to be a competitor.
2. Sell to management. This is a euphemism for "Sell to mangement who have borrowed millions from financiers". And the financiers invariably want their money back, plus plus plus, in the medium term (typically about 4-5 years). And who would be in the market then ? See 1. above.
3. Sell to Venture Capitalists. Just a more open version of 2. above, with the same end result.
What is the value of BACon ? Typically it's the real value of the assets if you sold them on the secondhand market, often not much if the aircraft are leased, plus about 3-5 times annual profits, which we all believe is diddly squat, less any reorganisation costs like staff reductions. So there's not a lot in it for BA. Remember BA buying Dan-Air for £1 ?
From a purely financial perspective the best route which would maximise BA's revenue would be to franchise it out, preferably in sections rather than one chunk. This would be a complete going-back on the past decade in this area and lead to all sorts of "Grand Old Duke of York" comparisons. But it would give BA the best financial return.
By the way, have you ever seen the loads on BA out of LCY (especially midday), the routes abandoned, or the lack of subsequent expansion on the routes still operating ? It's not a gold mine.
Join Date: Feb 2005
Location: Isle of Man
Age: 71
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In case anyone is interested in facts (unusual I know in a rumour network!) there is a paint programme for the current fleet. Of necessity it is being done on a fairly piecemeal basis, but the 3 Dash's with World Tails are being painted along with 2 RJ's and an Embraer in October. With luck the rest may follow suit in dribs and drabs.
I must say there are some very interesting theories out there. Certainly giving cause for concern in our office.
skiddy
I must say there are some very interesting theories out there. Certainly giving cause for concern in our office.
skiddy
Join Date: Jun 2001
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Loads are completely irrelevant as to whether a route makes money or not. Ticket yield is what is important to any commercial department exclusive of the LCC's.
And the BACON EDI-LCY are certainly not being operated like the rest of the airline. Its a mainline product and incidentally the banks block off seats on the routes that they don't always use!
Its an expanding network that BA in concentrating its efforts on!
And the BACON EDI-LCY are certainly not being operated like the rest of the airline. Its a mainline product and incidentally the banks block off seats on the routes that they don't always use!
Its an expanding network that BA in concentrating its efforts on!
