British Airways - 2
I'm putting this on the BA thread even though you may feel initially it is not a BA issue.
Mrs WHBM
just went London City - Munich - St Petersburg, Russia, on Lufthansa. There was a 30 minute connection at MUC which LH were happy to book but I raised my eyebrows at it. Arriving there 8 minutes late, so 22 minutes to go, there was a ground agent ready and waiting at the aircraft door for this one passenger, with a van, to transfer directly to the departure gate. Connection made.
Now having done many a connection at Heathrow over the years, this is a service that BA would never even think of offering. Goodness, you would actually be turned away before you start at T5 if you turned up at security 30 minutes before departure. Airside transfer vehicle for one economy class pax to make a tight connection ? "You're 'avin' a larf, mate !"
By the way, why were we on LH in the first place ? Return fare on LH £230. Fare today on BA direct to St Petersburg when we went to book, over £800. Of course BA justify their higher fares on the grounds they provide a "better service". Hah !
We've both been regulars on BA to St Petersburg over many years. Possiby time for a change.
Mrs WHBM
just went London City - Munich - St Petersburg, Russia, on Lufthansa. There was a 30 minute connection at MUC which LH were happy to book but I raised my eyebrows at it. Arriving there 8 minutes late, so 22 minutes to go, there was a ground agent ready and waiting at the aircraft door for this one passenger, with a van, to transfer directly to the departure gate. Connection made.Now having done many a connection at Heathrow over the years, this is a service that BA would never even think of offering. Goodness, you would actually be turned away before you start at T5 if you turned up at security 30 minutes before departure. Airside transfer vehicle for one economy class pax to make a tight connection ? "You're 'avin' a larf, mate !"
By the way, why were we on LH in the first place ? Return fare on LH £230. Fare today on BA direct to St Petersburg when we went to book, over £800. Of course BA justify their higher fares on the grounds they provide a "better service". Hah !
We've both been regulars on BA to St Petersburg over many years. Possiby time for a change.
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BA price rises leave a quarter of seats empty
In a deeply pessimistic assessment of the American airline industry, Moody's, the credit ratings agency, said yesterday that the business models of many carriers were “unsustainable”. The agency's analysts said that US airlines were particularly vulnerable to high oil prices and even large carriers could be forced into bankruptcy.
The record high price of oil has increased operating costs for airlines around the world and many are struggling to survive.
The American carriers collectively lost about $2 billion (£1billion) in the first quarter of this year and they are reducing capacity to cut their losses. Thousands of jobs are expected to go when at least 10 per cent of scheduled flights are cancelled later this year.
European airlines are also suffering from high fuel costs with British Airways giving warning that its profits could be wiped out this year and Ryanair saying that it was likely only to break even or may possibly lose money this year.
However, the US carriers are suffering most as they have fleets of very old aircraft. These use about 40 per cent more fuel than the latest generation of planes and therefore cost substantially more to fly.
Moody's said: “In the current environment, with many airlines seeing a more than 30 per cent year-on-year increase in their fuel costs, nearly 50 per cent of an average ticket is consumed by fuel, leaving inadequate coverage of other key costs such as labour, equipment rentals, debt service and overheads. Without an ability to cover costs and earn an adequate return, the business model for most airlines cannot be sustained under current fuel price conditions.”
Airlines in the US are attempting to raise extra revenue by introducing new fees, such as a $15 charge for checking a first piece of baggage and another $30 for checking the second.
Carriers are also charging for water and coffee onboard and have introduced fuel surcharges to ticket prices to cover the higher cost of oil.
BA has also responded to rising fuel prices by introducing the surcharges, which have increased from £70 for a long-haul return flight at the start of last year to £218. This is now more than the basic flight for a typical London to New York fare.
Moody's said: “We do not believe it will be possible for airlines to cost-cut or capacity-reduce their way back to profitability. Long-term industry viability will depend upon a pricing environment in which airlines can adequately recover the significant costs of fuel, labour and capital investment.”
However, airlines may struggle to continue increasing fares in the face of slowing economies in the US and UK. The worsening economic situation on both sides of the Atlantic means that passengers have less money to spend on travel, so higher fares may force them to stay at home.
BA said this week that increased charges and the slowing economy had contributed to 87,000 fewer passengers travelling with it last month. The airline's load factor - the measure of how many people each aircraft carries - fell 3.8 percentage points to 76.7 per cent, meaning that nearly one in every four seats was empty.
By comparison, Ryanair's load factor in June was 84 per cent, down 1 percentage point on the same period last year.
Load factors are a good measure of how well an airline is performing as empty seats produce no revenue but cost money to transport from one side of the world to the other. An analysis by The Times of BA's load factors in recent years shows that the situation for the British flag carrier has worsened markedly in the past few months.
The onset of summer has led to higher load factors than earlier this year, as is normal for the airline industry, but the increases in BA's passenger numbers has been at a much lower rate than in 2007 and 2006.
The weaker growth in passenger numbers coincides with a dramatic jump in BA's fuel surcharge this year. The airline has increased its charge three times since February from £128 for a long-haul return to £218.
Doug McVitie, managing director of Arran Aerospace, an aviation consultancy, said: “Demand for air travel falls off in direct response to rises in fares so now is not the time to be soaking the customer with these surcharges. There is a tipping point at which airlines have to absorb more of the increased costs, no matter what that does to their profit margins.”
The record high price of oil has increased operating costs for airlines around the world and many are struggling to survive.
The American carriers collectively lost about $2 billion (£1billion) in the first quarter of this year and they are reducing capacity to cut their losses. Thousands of jobs are expected to go when at least 10 per cent of scheduled flights are cancelled later this year.
European airlines are also suffering from high fuel costs with British Airways giving warning that its profits could be wiped out this year and Ryanair saying that it was likely only to break even or may possibly lose money this year.
However, the US carriers are suffering most as they have fleets of very old aircraft. These use about 40 per cent more fuel than the latest generation of planes and therefore cost substantially more to fly.
Moody's said: “In the current environment, with many airlines seeing a more than 30 per cent year-on-year increase in their fuel costs, nearly 50 per cent of an average ticket is consumed by fuel, leaving inadequate coverage of other key costs such as labour, equipment rentals, debt service and overheads. Without an ability to cover costs and earn an adequate return, the business model for most airlines cannot be sustained under current fuel price conditions.”
Airlines in the US are attempting to raise extra revenue by introducing new fees, such as a $15 charge for checking a first piece of baggage and another $30 for checking the second.
Carriers are also charging for water and coffee onboard and have introduced fuel surcharges to ticket prices to cover the higher cost of oil.
BA has also responded to rising fuel prices by introducing the surcharges, which have increased from £70 for a long-haul return flight at the start of last year to £218. This is now more than the basic flight for a typical London to New York fare.
Moody's said: “We do not believe it will be possible for airlines to cost-cut or capacity-reduce their way back to profitability. Long-term industry viability will depend upon a pricing environment in which airlines can adequately recover the significant costs of fuel, labour and capital investment.”
However, airlines may struggle to continue increasing fares in the face of slowing economies in the US and UK. The worsening economic situation on both sides of the Atlantic means that passengers have less money to spend on travel, so higher fares may force them to stay at home.
BA said this week that increased charges and the slowing economy had contributed to 87,000 fewer passengers travelling with it last month. The airline's load factor - the measure of how many people each aircraft carries - fell 3.8 percentage points to 76.7 per cent, meaning that nearly one in every four seats was empty.
By comparison, Ryanair's load factor in June was 84 per cent, down 1 percentage point on the same period last year.
Load factors are a good measure of how well an airline is performing as empty seats produce no revenue but cost money to transport from one side of the world to the other. An analysis by The Times of BA's load factors in recent years shows that the situation for the British flag carrier has worsened markedly in the past few months.
The onset of summer has led to higher load factors than earlier this year, as is normal for the airline industry, but the increases in BA's passenger numbers has been at a much lower rate than in 2007 and 2006.
The weaker growth in passenger numbers coincides with a dramatic jump in BA's fuel surcharge this year. The airline has increased its charge three times since February from £128 for a long-haul return to £218.
Doug McVitie, managing director of Arran Aerospace, an aviation consultancy, said: “Demand for air travel falls off in direct response to rises in fares so now is not the time to be soaking the customer with these surcharges. There is a tipping point at which airlines have to absorb more of the increased costs, no matter what that does to their profit margins.”
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BA price rises leave a quarter of seats empty
British Airways flights are now taking off with almost a quarter of their seats empty after higher airfares and a slowing economy led to 87,000 fewer passengers using the airline last month.
The airline said it carried 2.9 per cent fewer passengers than the same month last year with traffic to Africa, the Middle East and the United States the weakest.
The load factor on BA’s aircraft, a measure of how full each plane is when it flies, fell 3.8 per cent to 76.7 per cent. This means nearly one in every four seats is now empty on BA flights.
The traffic figures are disappointing as June typically signals the beginning of the summer holiday season and an increase in the number of passengers travelling.
BA blamed the fall on “significant” increases in ticket prices due to the record high price of oil and a tough consumer environment in the UK.
The high cost of fuel is troubling all carriers and American Airlines gave warning yesterday that it could cut 7,000 jobs and ground yet more aircraft. It expects to take a one-off charge of $1.3 billion to cover the cost of redundancies.
In an attempt to reduce costs further BA, AA and Iberia, the Spanish flag carrier, are expected to try to merge their operations later this month.
The Times reported yesterday that the three airlines were close to seeking approval from competition regulators to press ahead with the deal.
A BA spokeswoman said yesterday: “BA has been in talks with American Airlines and Iberia for some time, but no decisions have been reached.”
The proposed merger has been attacked by rivals, including Virgin Atlantic, who claim it will limit competition.
A Virgin spokesman said: “We would oppose this attempt to create an anticompetitive alliance. It would form a dominant mega-power on trans-Atlantic air routes from two of the largest EU members, forcing up ticket prices for passengers and restricting choice.”
The airline said it carried 2.9 per cent fewer passengers than the same month last year with traffic to Africa, the Middle East and the United States the weakest.
The load factor on BA’s aircraft, a measure of how full each plane is when it flies, fell 3.8 per cent to 76.7 per cent. This means nearly one in every four seats is now empty on BA flights.
The traffic figures are disappointing as June typically signals the beginning of the summer holiday season and an increase in the number of passengers travelling.
BA blamed the fall on “significant” increases in ticket prices due to the record high price of oil and a tough consumer environment in the UK.
The high cost of fuel is troubling all carriers and American Airlines gave warning yesterday that it could cut 7,000 jobs and ground yet more aircraft. It expects to take a one-off charge of $1.3 billion to cover the cost of redundancies.
In an attempt to reduce costs further BA, AA and Iberia, the Spanish flag carrier, are expected to try to merge their operations later this month.
The Times reported yesterday that the three airlines were close to seeking approval from competition regulators to press ahead with the deal.
A BA spokeswoman said yesterday: “BA has been in talks with American Airlines and Iberia for some time, but no decisions have been reached.”
The proposed merger has been attacked by rivals, including Virgin Atlantic, who claim it will limit competition.
A Virgin spokesman said: “We would oppose this attempt to create an anticompetitive alliance. It would form a dominant mega-power on trans-Atlantic air routes from two of the largest EU members, forcing up ticket prices for passengers and restricting choice.”
Look on the bright side - it's good for staff travel!
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Gee, these journalists must be the same bright spots who predicted oil over $150 this year and the failure of the baseless credit industry. Sign me up to follow these idiots who are always months/years after the fact and still manage to get it wrong.
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Ba Jfk-man
I don't know how much it costs BA to get a 767 from MAN to JFK and back, but this time last year I was charged less to travel JFK-LHR-MAN than it would have been to go JFK-MAN direct. Oddly enough, westbound, the direct flight was the cheaper (or less expensive).
Perhaps a half-hearted attempt to justify closing the route by generating reduced passenger demand?
Perhaps a half-hearted attempt to justify closing the route by generating reduced passenger demand?
Man-jfk
Dairyground:
Correct!
I tried several times last year to check best deal MAN-JFK and was frequently offered a routing via LHR.
I think they fill the LHR flights first.
This year I tried to use some air miles to get to JFK.
The web site always seems to try and route you thru LHR. again!!
However when I telephoned the BA Exec club and requested MAN-JFK direct availability, I got it!
I think BA did the same thing with the old MAN-LAX route
They dont really want to keep the route open so they direct traffic, especially premium, which makes the money, via LHR
then say its not cost effective.
Well of course it is'nt, they make sure that this is the case.
BA want all traffic via their hub , LHR. Fact..
Correct!
I tried several times last year to check best deal MAN-JFK and was frequently offered a routing via LHR.
I think they fill the LHR flights first.
This year I tried to use some air miles to get to JFK.
The web site always seems to try and route you thru LHR. again!!
However when I telephoned the BA Exec club and requested MAN-JFK direct availability, I got it!
I think BA did the same thing with the old MAN-LAX route
They dont really want to keep the route open so they direct traffic, especially premium, which makes the money, via LHR
then say its not cost effective.
Well of course it is'nt, they make sure that this is the case.
BA want all traffic via their hub , LHR. Fact..
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i think you will find a lot of airline offer cheaper routes if you have a stop off along the way. i travel to the states about 6 times a year and i often get good deals with KLM, LH, SAS and AF all from UK airports via the airlines hub and then onto long haul than fly direct from UK (whether it be a regional airport with a departure such as EWR with CO or with a legacy carrier like BA/UA/AA via somewhere like ORD/JFK or IAD)
wierd how it works sometimes
wierd how it works sometimes
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For How Long
Ham Phisted
Look on the bright side - it's good for staff travel
Its great to get seats for the family but how long will this last if we dont get bums on seats?
2 years ago it was easier to just book a deal on the net.in peak.
Now were getting seats to any destination...
Is this the sign of the times.have to go off to LHR
Then 4 off . I think I will try some staff travel..
Look on the bright side - it's good for staff travel
Its great to get seats for the family but how long will this last if we dont get bums on seats?
2 years ago it was easier to just book a deal on the net.in peak.
Now were getting seats to any destination...
Is this the sign of the times.have to go off to LHR
Then 4 off . I think I will try some staff travel..
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BA warns the oil price will wipe out profits
Martin Broughton, the chairman of British Airways, admitted today that profits are likely to be wiped out this year as soaring fuel costs and the economic downturn pile the pressure on the UK's flagship airline.
Mr Broughton told shareholders at BA's annual meeting that it would be a "considerable achievement" if BA broke even for the current financial year.
The airline's chairman said that, with the oil price surging above $140 a barrel amid fears of a global recession, BA and its peers are "up to our necks in the biggest crisis the aviation industry has ever known".
He spelled out to investors that, with oil at $85 a barrel - a price last reached in February - BA would be on course for handsome profits.
Mr Broughton told shareholders at BA's annual meeting that it would be a "considerable achievement" if BA broke even for the current financial year.
The airline's chairman said that, with the oil price surging above $140 a barrel amid fears of a global recession, BA and its peers are "up to our necks in the biggest crisis the aviation industry has ever known".
He spelled out to investors that, with oil at $85 a barrel - a price last reached in February - BA would be on course for handsome profits.
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Couldn't this have been tagged on to the WW rough ride thread? It's just more of the same, after all.
AGM today and WW says fares to go up and capacity to go down. So no news there then.
AGM today and WW says fares to go up and capacity to go down. So no news there then.
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...........er, what effect did the mismanagement of terminal 5 have on profits.
For that matter, the lack of management people skills leading to perhaps morale being at an all time low amongst front line staff.
Easy to just blame it on the price of oil - I guess BA's competitors are getting all the cheap oil then!
For that matter, the lack of management people skills leading to perhaps morale being at an all time low amongst front line staff.
Easy to just blame it on the price of oil - I guess BA's competitors are getting all the cheap oil then!
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What is your point? Mismanagement and one-off T5 transitions still produced a 10% operating profit (way above competitors). With all competitors struggling as well, it is quite clearly the oil price that has delivered this blow to the profits.
Mismanagement might help to raise the cost base above what it should be, but nowhere near what all airlines are equally facing with current oil prices.
Mismanagement might help to raise the cost base above what it should be, but nowhere near what all airlines are equally facing with current oil prices.
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Winter UK Domestic timetables...
Heard that BA are going to cut domestic routes this winter...
GLA already has lost the first am Mon-Fri LHR service. EDI and ABZ are bracing themselves. NCL and MAN too...
Been advised by a BA source that EDI will also have just one am departure before 0830hrs instead of 2 as of summer 09 schedule.
GLA already has lost the first am Mon-Fri LHR service. EDI and ABZ are bracing themselves. NCL and MAN too...
Been advised by a BA source that EDI will also have just one am departure before 0830hrs instead of 2 as of summer 09 schedule.
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Nigel Turner (BD) was on BBC R4's "Today" last week. Not route cuts this winter, but frequencies will be reduced, so LHR routes and busier regional routes in and out of MAN look likely.
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BA Winter shedule cutbacks
News has been filtering out today from the aircraft maintenance planning group of the likely network cutbacks from winter 08
LHR Shorthaul operation.............5% reduction in services
LHR Longhaul operation..............6% reduction in services
LGW Shorthaul operation......15-20% reduction in services
LGW Longhaul operation..............No significant reduction
With regard to LHR Longhaul operation it now seems between 4 and 6 747-400s will be put into long term storage in the desert,whilst a further 8 400s will be base parked on a weekly rotating basis.....Most likely scenario for this is...a/c will fly friday to monday,(busiest time for l/h network apparently),and then be parked up for rest of week!
Operation plan to fly 777s more intently over winter period.....With regard to ZZA-ZZC it seems that these a/c will be retired/sold during 2009.
Announcement on new fleet orders,(777-300s) now due first week in August
LHR Shorthaul operation.............5% reduction in services
LHR Longhaul operation..............6% reduction in services
LGW Shorthaul operation......15-20% reduction in services
LGW Longhaul operation..............No significant reduction
With regard to LHR Longhaul operation it now seems between 4 and 6 747-400s will be put into long term storage in the desert,whilst a further 8 400s will be base parked on a weekly rotating basis.....Most likely scenario for this is...a/c will fly friday to monday,(busiest time for l/h network apparently),and then be parked up for rest of week!
Operation plan to fly 777s more intently over winter period.....With regard to ZZA-ZZC it seems that these a/c will be retired/sold during 2009.
Announcement on new fleet orders,(777-300s) now due first week in August
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Interesting news, particularly so as Walsh said at the AGM that no aircraft would be parked and there are significant recruitment plans for 744 pilots as of about two days ago. If they are going to park 10% of the fleet you'd think somebody would have told Flight Ops.
Junior trash
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Currently flying with a recruiter, they are way behind on 744 recruitment and cant fill the slots quick enough. Grounding 4-6 and parking 8 in the week is much more than a 6% cut. Its 25% of the 747 fleet.
And how much more intensely can they fly the 777s they are already 1 short as it is.
And how much more intensely can they fly the 777s they are already 1 short as it is.