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BA delays at LHR - Computer issue

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BA delays at LHR - Computer issue

Old 4th Jun 2017, 22:03
  #521 (permalink)  
 
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Originally Posted by Heidhurtin View Post
it would be nice to have some hard evidence to perhaps fight off some impending "efficiency measures". .
The current reversal of the telecoms and financial service centre outsourcing of the 2005 era is a fairly clear example as is the string of outsourced IT, government and production fiascos.

Unfortunately it is still too easy to make a business case for it - using a template provided by a large outsourcing consultancy or the contractor themselves - and those at the top always vote for the cheap magic solution
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Old 4th Jun 2017, 22:58
  #522 (permalink)  
 
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Rush to judge

Folks; I get the desire to point the finger offshore; but has any actual eveidence for this as the root cause been presented?
This appears to be a local data center outage and is most likely the result of poorly documented design or (sadly) simple user error at its heart. You can't power a D.C. from the subcontinent.
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Old 5th Jun 2017, 07:47
  #523 (permalink)  
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It's not just BA - this weeks Economist points out 9 major airline IT failures in the last 2 years (BA 4!), Expressjet, United, Delta, Southwest & American)

It's systemic - in 2015 (the last year figures are available) airlines only spent 2.7% of revenues on IT - this is half the norm across all industries

You get what you pay for.......................
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Old 5th Jun 2017, 08:00
  #524 (permalink)  
 
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The bean counters in those airlines will have been counting the cost of the system failures and hopefully sharpening their pencils over the allocation of operating funds.

With regards to passenger orientation and reduced cabin services, Delta recently started re-introducing meals on certain sectors.
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Old 5th Jun 2017, 08:09
  #525 (permalink)  
 
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Originally Posted by 3db View Post
Peter47
If BA goes bust .
That wont happen. The government will step in to prevent it EU or no EU rules.
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Old 5th Jun 2017, 08:25
  #526 (permalink)  
 
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I very much doubt the uk government has any appetite for saving BA .

In any event it will not be necessary, much as it pains me to say so ,BA is still one of the best known global brands with an almost unrivalled network.

As I work for a competitor I sort of wish them down but realistically the routes, slots and brand are so valuable that I can't ever see that happenning.

There is nothing wrong with BA that can't be fixed but they do need to look very hard at some of their practices .

E.g. I do enjoy listening to BA crews bleat about how they are "pilots for BA " in the business lounges of 5 star city centre hotels around Europe but is this really cost effective/sustainable ?
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Old 5th Jun 2017, 08:47
  #527 (permalink)  

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I do enjoy listening to BA crews bleat about how they are "pilots for BA " in the business lounges of 5 star city centre hotels around Europe but is this really cost effective/sustainable ?
What is the point of that question? And why are you in those same lounges?
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Old 5th Jun 2017, 09:12
  #528 (permalink)  
 
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Originally Posted by bbrown1664 View Post
That wont happen. The government will step in to prevent it EU or no EU rules.
I presume you mean the Spanish government? After all BA is just a subsidiary of a Spanish company now and is even run by a Spaniard. This is the reason that there is only interest in money that can be milked from BA and not in 'the brand'.
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Old 5th Jun 2017, 09:50
  #529 (permalink)  
 
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After all BA is just a subsidiary of a Spanish company now
I have never understood why IAG, the result of a "merger of equals" between BA and Iberia was created as a Spanish company. BA is still by far the largest IAG subsidiary and contributes most of the profit (I believe all of the profit in some recent years).


There would be some tax advantages, particularly to small shareholders, if IAG became a British company.


Post-Brexit would there be any problems about a foreign-owned company holding a British AOC?


Is there any effective mechanism through which such issues could be raised with IAG top management?
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Old 5th Jun 2017, 10:34
  #530 (permalink)  
 
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Just to add the point that Spain pretty much owns UKs aviation industry as both BA (technically) and LHR are both Spanish owned. In fact only EasyJet and Manchester airport are British owner among the main elements of UK aviation as to add to the above Ryanair and LGW are both non UK owned .

Compare that with France or Germany where it would be unthinkable and indeed where the legacy state carriers own substantial foreign airlines. Or in Donald World where ownership of an airline or airport by a foreign entity is probably illegal.
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Old 5th Jun 2017, 10:56
  #531 (permalink)  
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Originally Posted by bbrown1664 View Post
That wont happen. The government will step in to prevent it EU or no EU rules.
Nobody thought RR Aero would go bust in 1971, but it did. You need to plan for these things, independent pension funds 100% funded being one item. If BA was to fold after Brexit, it would be more complex as its an EU operating/holding company, I question if the UK government could step in, assuming it wanted to do that.
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Old 5th Jun 2017, 11:09
  #532 (permalink)  
 
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The recent IT meltdown isn't the only issue ba faces. It is rapidly becoming known as an airline which offers LoCo standards but charges premium prices.

All down to Walsh and Cruz and their obsession with profit against quality.

Passenger comment on airline websites show that the glory days of BOAC / BEA have now atrophied to such an extent that the airline's survival cannot be assured.

"We (once) took care of you...."
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Old 5th Jun 2017, 11:24
  #533 (permalink)  
 
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"British Airways is expected to be stripped of its coveted four-star quality rating after being accused of providing a worse service than Aeroflot.


In a new humiliation, the boss of research firm Skytrax said Britain’s flagship carrier now compares unfavourably with the state-backed Russian airline, once known for having an appalling safety record, inedible food and rude staff.


Skytrax said it is likely to cut BA’s rating to three stars out of five, bringing it in line with budget airline Ryanair, Uzbekistan Airways, Ethiopian Airlines, and Myanmar Airways."
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Old 5th Jun 2017, 11:35
  #534 (permalink)  
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IAG is not "Spanish Controled" - it is incorporated in Spain (for tax reasons I beleive) and quoted on the London & Madrid Stock Exchanges

The issued share capital is 2,132,988,743 shares

Name of significant Shareholders
%
Qatar Airways (Q.C.S.C.) - 20.010 -
Capital Research and Management Company* 10.013
Europacific Growth Fund* 5.261
Deutsche Bank AG 2.494
Black Rock Inc 0.439
Landsdowne Partners International Limited 4.222
Invesco 2.007
Lansdowne Developed Markets 3.60

Disclosures based on issued share capital at the time of notification.
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Old 5th Jun 2017, 12:05
  #535 (permalink)  
 
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There is a strong Spanish influence in IAG. Not only is it Spanish-registered and listed on the Madrid Stock Exchange, the chairman (Antonio Vazquez Romero) is a Spaniard. Reporting to Romero is Willie Walsh, chief executive, half of whose 14 direct reports are Spaniards, namely:
  • Alex Cruz, Chairman and CEO BA
  • Luis Gallego Martin, CEO Iberia
  • Jose Antonio Barrionuevo Urgel, CFO Iberia
  • Javier Sanchez-Prieto, CEO Vueling
  • Jorge Saco Inglesias, CFO Vueling
  • Enrique Dupuy de Lome, Chief Financial Officer
  • Ignacio de Torres Zabala, Director of Global Services
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Old 5th Jun 2017, 12:07
  #536 (permalink)  
 
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I believe that the significance of the asterisk in this table is that these 2 apparently separate companies are effectively one entity thereby controlling over 15% of IAG
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Old 5th Jun 2017, 12:12
  #537 (permalink)  
 
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News flash: Spanish company is full of .... Spaniards

Originally Posted by Caribbean Boy View Post
There is a strong Spanish influence in IAG. Not only is it Spanish-registered and listed on the Madrid Stock Exchange, the chairman (Antonio Vazquez Romero) is a Spaniard. Reporting to Romero is Willie Walsh, chief executive, half of whose 14 direct reports are Spaniards, namely:
  • Alex Cruz, Chairman and CEO BA
  • Luis Gallego Martin, CEO Iberia
  • Jose Antonio Barrionuevo Urgel, CFO Iberia
  • Javier Sanchez-Prieto, CEO Vueling
  • Jorge Saco Inglesias, CFO Vueling
  • Enrique Dupuy de Lome, Chief Financial Officer
  • Ignacio de Torres Zabala, Director of Global Services

¿ How could a company such as IAG not have a substantial Spanish input ?
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Old 5th Jun 2017, 12:14
  #538 (permalink)  
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Correct - plus I didn't break out direct and indirect holdings - just total

I'd be more worried about Qatari control than Spanish TBH.................
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Old 5th Jun 2017, 17:22
  #539 (permalink)  
 
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Originally Posted by BigFrank View Post
I believe that the significance of the asterisk in this table is that these 2 apparently separate companies are effectively one entity thereby controlling over 15% of IAG
No, only 7.175% of CRMC holding is held by Europacific Growth Fund.
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Old 5th Jun 2017, 17:34
  #540 (permalink)  
 
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Originally Posted by BigFrank View Post
¿ How could a company such as IAG not have a substantial Spanish input ?
The Chairman and CEO BA, the CFO and the Director of Global Services are all managing mainly British assets and British people, and do not have to be Spanish. But I believe that the politics of the company requires an equal number of Brits and Spanish reporting to Willie Walsh, even if it meant appointing the chief executive of unimpressive Vueling to be the CEO of BA.
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