Willie to do a Shamrock with BA!!!!

[apaddyinuk]

OK, I know its from the Daily Mail and technically they hate BA so they will write anything but here it goes anyways!!!

http://www.thisismoney.co.uk/news/article.html?in_article_id=400470&in_page_id=1&ito=1565

BRITISH Airways' incoming chief executive Willie Walsh is lining up a series of drastic cost-cutting measures that could make outgoing boss Rod Eddington's hefty cuts pale into insignificance.



SET FOR TAKE-OFF: BA is on course for no-frills flights and the end of business-class on some routes

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Walsh, just nine days into the job, wants to slash BA's 3,500-strong workforce at its head office and intends to introduce a no-frills service on short-haul flights.

He is keen to make his mark in a way that will dwarf Eddington's Future Size and Shape programme, which saved the airline £850m a year after axing 13,000 jobs.


The tough-talking Irishman, who takes over from Eddington in September, has taken charge of the airline's review into its shorthaul operations. Some pointers on the results of the review were expected at BA's full-year results tomorrow, but any update is now at least six months away after Walsh's intervention.


He wants to end business-class tickets on flights to places like Paris and Frankfurt and move bookings online to slash overheads. He was a notorious cost cutter at Irish airline Aer Lingus.

Walsh, who is being viewed internally as a 'tough cookie', wants to 'take the axe' to the 3,500 employees who work at BA's opulent Waterside headquarters, which lies in the shadow of Heathrow.


He believes he can strip out duplicated jobs at Waterside, home to the airline's-commercial, financial, strategic and training arms. This would also allow him to look at disposing parts of the prime 280-acre site.


Walsh, 43, has taken little time in making his presence felt at the airline, which was savaged by Eddington. News of the impending cuts comes a day before BA's results tomorrow, where the 'world's favourite airline' is due to unveil its highest fuel bill in more than a decade due to the massive leap in the price of oil.

[J-Class]

I'ts interesting that BA both 'aims to boost business and first-class business' (Bloomberg article, May 13) and Willie expects to get rid of CE. I think BM, LH, SK and others will start enjoying life much more if he does.

[Wizofoz]

which was savaged by Eddington

By "Savaged" I suppose they mean "Rescued from being a chronic, loss making lemon to being a profitable airline with hopes of surviving"?

[BEagle]

Quite a few customers have stopped using LH ever since they dumbed down their European Business Class 'service' last year.......

A ba no-frills short haul service? What GOes around, comes around!

[Quidnunc]

"Quite a few customers have stopped using LH ever since they dumbed down their European Business Class 'service' last year......."

And your evidence for that? Don't tell me... a mate overheard someone who once knew a bloke who lived inthe same town as a BA manager chatting to someone else in the pub.

[BEagle]

Increasingly empty seats on flights I've been on, statements from LH customer service and anecdotal evidence from LH Cabin Crew.......

LH customer service told me they'd had 'thousands' of complaints about the reduction in quality of their European Business Class service.

Most amusing was the LH cabin crew member who told me that the level of catering in Economy immediately after the cutbacks last year was "Like prison food - bread and water!". But they get the infamous cheese and lettuce bun nowadays :yuk:

Back to the thread - wasn't GO pretty successful as a ba low-cost offshoot?

[You Gimboid]

Quidnunc

Isn't that the preferred means of media research these days?

[safetypro]

Vizofoz - The Mail made a typo. "Savaged" should have read "Salvaged". What a difference one letter makes.

[WHBM]

Simplistically, there are two types of top execs.

1 - The Optimist. Creative. Sees the revenue potential in things and people. Expansion minded. Has too many good ideas, just hopes they will work out somehow. Thinks profit is increased by expanding revenue more than costs. Probably from a commercial background. Needs to be controlled otherwise they spend all the money on increasingly mad ideas and you're broke through too high costs.

2 - The Pragmatist. Sees management in terms of cost-cutting, often without thinking what those who are cut actually contribute, just hopes it will work out somehow. Has not enough good ideas. Thinks profit is increased by reducing costs while maintaining revenue. Probably from an accounting background. Needs to be controlled otherwise they cut off the good parts of the business along with the bad, and p--- off the best talent who leave to develop things elsewhere, and you're broke for lack of revenue.

Willie firmly belongs in Group 2. Who will be his control from Group 1 ?

[Parcelpup]

Fair point WHBM but I don't think Willie was an accountant. Wasn't he originally a pilot with Aer Lingus?

Hopefully he will be the shakeup that BA really needs as Rod Eddington really only did half of what was needed.

Perhaps he'll end these infamous payouts to the Cabin Crews for turning up for work.

[cumulo-granite]

So what does all this mean for BA SH at LGW? The way I see it, there are 2 options:

1.) Make it finally work by lowering the cost base significantly and ALL that entails (no small task)

2.) Quit LGW and centralise SH operations in LHR T5 at the end of 06 / beginning of 07

Now that the 'Hub without the hubbub' is long dead, surely any LH BA traffic ex LGW will be largely unaffected by any such change? Believe LH is doing OK ex LGW now?

One glance at the South Terminal these days reveals the extent of BA's 'competitor problems at LGW'....so orange in only 3 and a half years...

CG

[NigelsFriend]

"Perhaps he'll end these infamous payouts to the Cabin Crews for turning up for work. "

ParcelPup....would like to kmow ehat your on about! I do receive a monthly salery for turning up to work!