concorde001
3rd Feb 2006, 16:17
According to ba.com and BBC News, BA recorded the following profit for the three months to Dec 31st 2005:
· Pre-tax profit of £164 million (Same period in 2004: £151 million )
· Operating profit of £175 million
· Operating margin at 8.2 per cent
· Net debt at £2.2 billion
BA's nine-month profits were up by 2% to £529m
HERE IS MY SUMMARY OF THE:
Q3 2005/2006 British Airways Earnings Conference Call, given by Willie Walsh (CEO of BA) and his two colleagues. (Today - 3rd Feb 2006 AT 2PM GMT)
Pensions - BA has not finalised its decision on the pension deficit
It will evaluate possible decisions in the next few weeks and prepare consultations with trade unions. A decision on pensions will be made by Sep/Oct 2006 and BA are confident of no industrial action.
94 managers will have gone by March 2006 with the remaining signposted for redundancy to follow
Terminal 5 - remains a key priority for BA. Major progress has been made with the unions over changes in work practices. An agreement was singed with the unions on 23rd January which will see 25% reduction in ground handling staff. Many of the changes will be implemented by December 2006.
BA has seen record sales on ba.com and they continue to rise. Bangalore saw an increase in selling costs, but overall selling costs are anticipated to fall.
Fleet Expansion - longhaul will only see expansion after the move into Terminal 5 is complete. BA have made no decisions, however they continue to discuss with Boeing and Airbus. The company remains focused on strengthening the business, however longhaul capacity is required in some areas. On some longhaul aircraft BA will increase the size of premium cabins and this will start in late 2006/early 2007.
Open Skies - BA is waiting for the consultation process and the final rules to be agreed. For BA, the ownership rules "lack clarity". BA are in favour of Open Skies and expect it to be in place in about 18 months. BA is confident that its product is superior to others and is not worried about competition. With Open Skies, BA will transfer capacity to the US from LGW to LHR.
Renewal of ATI with AA - Willie Walsh said "We have not seen anything that will give us the confidence to pursue ATI with AA as there would be a regulatory price we are not willing to pay. It is unlikely we will make another application for ATI with AA"
Premium Traffic - it is improving across the market, but BA are seeing a gain in market share. Shorthaul yield remains weak as usual, but longhaul is much better. BA are also "watching with interest" UA's recent reduction in flights at LHR.
BA Connect - cost base will come down, but BA want to drive additional load factor. Current CitiExpress load factor stands at 60% which BA wants to increase with Connect.
Dividend - will be considered by the Board at year end
Gatwick Express - BA would prefer to see the service remain, but it was announced today that the express service will end.
Enjoy!
Concorde001
· Pre-tax profit of £164 million (Same period in 2004: £151 million )
· Operating profit of £175 million
· Operating margin at 8.2 per cent
· Net debt at £2.2 billion
BA's nine-month profits were up by 2% to £529m
HERE IS MY SUMMARY OF THE:
Q3 2005/2006 British Airways Earnings Conference Call, given by Willie Walsh (CEO of BA) and his two colleagues. (Today - 3rd Feb 2006 AT 2PM GMT)
Pensions - BA has not finalised its decision on the pension deficit
It will evaluate possible decisions in the next few weeks and prepare consultations with trade unions. A decision on pensions will be made by Sep/Oct 2006 and BA are confident of no industrial action.
94 managers will have gone by March 2006 with the remaining signposted for redundancy to follow
Terminal 5 - remains a key priority for BA. Major progress has been made with the unions over changes in work practices. An agreement was singed with the unions on 23rd January which will see 25% reduction in ground handling staff. Many of the changes will be implemented by December 2006.
BA has seen record sales on ba.com and they continue to rise. Bangalore saw an increase in selling costs, but overall selling costs are anticipated to fall.
Fleet Expansion - longhaul will only see expansion after the move into Terminal 5 is complete. BA have made no decisions, however they continue to discuss with Boeing and Airbus. The company remains focused on strengthening the business, however longhaul capacity is required in some areas. On some longhaul aircraft BA will increase the size of premium cabins and this will start in late 2006/early 2007.
Open Skies - BA is waiting for the consultation process and the final rules to be agreed. For BA, the ownership rules "lack clarity". BA are in favour of Open Skies and expect it to be in place in about 18 months. BA is confident that its product is superior to others and is not worried about competition. With Open Skies, BA will transfer capacity to the US from LGW to LHR.
Renewal of ATI with AA - Willie Walsh said "We have not seen anything that will give us the confidence to pursue ATI with AA as there would be a regulatory price we are not willing to pay. It is unlikely we will make another application for ATI with AA"
Premium Traffic - it is improving across the market, but BA are seeing a gain in market share. Shorthaul yield remains weak as usual, but longhaul is much better. BA are also "watching with interest" UA's recent reduction in flights at LHR.
BA Connect - cost base will come down, but BA want to drive additional load factor. Current CitiExpress load factor stands at 60% which BA wants to increase with Connect.
Dividend - will be considered by the Board at year end
Gatwick Express - BA would prefer to see the service remain, but it was announced today that the express service will end.
Enjoy!
Concorde001