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British Airways Regional merge with CitiExpress

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Old 5th Oct 2001, 15:48
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Red face British Airways Regional merge with CitiExpress

BA has just announced it will merge its BAR (A319BHX and 737MAN) into CitiExpress (the company created by the merger of Brymon and BRAL)according to BBC Cefax.

An announcement has been due today for the last week or so following a complete stratergy and route structure review by high level management.

Cannot comment on fine details because I do not currently know! However well over a year ago BA started a major review of its regional operations with aim of taking what BA had, comparing it with how it would ideally be and then obviously trying to get as close to that position. I belive the result of this work is todays announcement and all the recent drama has generated an ideal opertunity to action this plan.
BA will say this shows commitment to the regions and I guess it does unless you are currently on BA terms and conditions.

Ceefax suggests that the jobs that will go will be mainly management and support.

I think that there will be a substational, poss complete removal of the A319 route from BHX following a comment by a senior BAR manager. It is possible BA pilots could end up flying the RJ as CitiExpress are short of pilots, may take on new work but cannot recruite due to BA recruitment freeze.

Will hopefully have more news later following when I come back from work!!!!!
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Old 5th Oct 2001, 16:16
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Complete removal of the A319 from BHX seems a bit harsh given that the operation makes a profit. Which BACE aircraft would take over the FCO/BCN/BHX routes which regularly carry 100+ pax? Even the BRU is doing well at the moment. As for the BAR 319 pilots, its worth pointing out that BAR does not employ any pilots as such. All the flight crew are on BA mainline contracts and are on some sort of loan or lease arrangement to BAR. There's no way in the world in can see BA forcing Airbus qualified guys, many of whom are well up the BA master seniority list, to retrain as RJ pilots, esepcially when we're still buying lots of new A319s.
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Old 5th Oct 2001, 16:25
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Why on earth would any BAR pilots be moving direct onto our RJ (don't know if you mean the Embraer 145 or the Bae 146 fleet). I've been here a couple of years with a jet bid in and I'm still waiting so this would be unwelcome. Surely it means that the 737 and 319 pilots will continue flying their existing type under new management, and we continue expanding as we already are. (True we do need pilots, but we've NEVER taken anyone direct onto a jet. Why start now?)
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Old 5th Oct 2001, 16:27
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BA pilots who fly for BAR are employed by BA but work to a BAR schedualing agreement.

Removal of the A319? Big question mark. A key BAR manager stated recently that he did not want any A319's, just a fleet of RJ's.
The A319's would move to London where they are urgently needed, many of the pilots would go with them.

I cannot see the A319's being wholey absorbed into the BAR / BACE merger because getting BA crews to downgrade terms and conditions would be tricky, and the A319 is too big for most routes. I do agree that at prime times the A319 is pretty full but I guess this is not always enough.

What is fact is that the passengers I fly love the comfort and space of the A319 cabin and are always glad that they are on an airbus instead of an RJ!!!
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Old 5th Oct 2001, 16:44
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Very interesting - it ties in with a whisper I heard recently to the effect that BA was going to bundle its regional operations together in order to sell them off.

Maersk, which has a cash rich parent, was mentioned as a possible purchaser.
 
Old 5th Oct 2001, 17:19
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From BA press site:-

Regional Network changes

British Airways today announced that it is to combine its two UK regional subsidiaries, creating the second largest regional airline operation in Europe.

British Airways Regional (BAR) is to become part of the newly formed British Airways CitiExpress, creating a single entity for its short-haul regional domestic and European network.

The combined regional business will have a turnover in excess of £600 million and a fleet of 92 aircraft serving more than 120 routes. The new entity will employ around 3,200 people and carry some five million passengers each year.

The airline also confirmed a number of capacity, frequency and route changes. In the current economic climate, the integration of BAR with British Airways CitiExpress will also help safeguard the future of regional flying and ensure a more flexible and co-ordinated approach to services.

David Evans, British Airways’ General Manager, UK Business, said, “Harnessing the strengths and route networks of British Airways’ CitiExpress and BAR under the control of a single operating unit will put our regional operation in a stronger position at a time of economic downturn and increased competition.”

“This move is imperative to protect the future of our operation in the UK regions and will ensure that our routes can become viable by achieving a better balance between capacity and demand in what is one of the most competitive and de-regulated aviation environments in the world.”

The synergies resulting from the integration, along with the tactical capacity reductions and network changes, will mean the regional business will employ around two hundred fewer people in the future.

Over the coming weeks British Airways will be consulting with trade union representatives regarding the integration of BAR staff with the British Airways’ CitiExpress business.

Notes to Editors:


Network Changes effective October 27, 2001:

Suspension of Manchester to Bristol and Newcastle to Oslo daily services.

Manchester to Amsterdam services will downsize from Boeing B737-500s to Embraer 145s - frequency unchanged at five per weekday.

Flights from Manchester to Shannon and Stansted will reduce by one daily frequency with Manchester to Londonderry services switching to franchisee Loganair.

As previously announced, Belfast flights from Cardiff, Aberdeen and Manchester will be consolidated at Belfast City Airport.

Glasgow to Cork services will move to bigger aircraft - Dash 8s - to meet demand on weekdays.

Edinburgh to Belfast services lose a daily frequency Monday to Thursday.

Birmingham to Glasgow and Edinburgh services reduce by one per day to seven weekday flights.

Off peak flights from Birmingham to Dusseldorf and Frankfurt downsize from Airbus 319 to Embraer 145s.

British Airways CitiExpress: Formed earlier this year following the acquisition of the British Regional Air Lines Group and the integration of that business with the West Country wholly-owned subsidiary, Brymon Airways.

British Airways Regional: British Airways Regional has a fleet of 10 Boeing 737-500 based at Manchester and 9 Airbus A319 based at Birmingham. It operates14 routes to Scotland and Europe from Manchester, as well as New York. From Birmingham it operates 12 routes to Scotland and Europe. BAR has a turnover of £284 million, employs 1,008 people, carries 2.2 million passengers and operates a fleet of 19 aircraft to 25 destinations.

British Regional Air Lines Group: The group constitutes British Regional Airlines (a British Airways franchise partner since 1995) and Manx Airlines. Manx Airlines operates in its own colours between the Isle of Man and major airports in the UK, Channel Islands and Ireland. BRAL serves regional and UK hub airports throughout the British Isles and Continental Europe from its main base at Manchester. The network includes routes to Berlin, Hanover, Lyon and Nice. BRAL has a turnover of £228 million, employs 1,469 people, carries 2.6 million passengers annually with its fleet of 51 aircraft on 70 routes.

Brymon Airways: West Country based Brymon operates UK and European routes to such cities as Dublin, Frankfurt, Munich and Paris from its biggest base at Bristol. Brymon has a turnover of £120 million, employs just 778 people and carries 1 million passengers each year on services to 22 destinations with a fleet of 22 aircraft.

Taken together, the network changes announced today will release three aircraft from the BAR fleet to British Airways mainline - two Manchester based B737’s and one Birmingham Airbus A319 - in addition to the previously announced move of four B737-500s to London operations.
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Old 5th Oct 2001, 17:49
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It seems that the insurance problem for Manx has been sorted now?

My mother says that Manx Radio announced this morning that the UK govt has relented (or, in her words, "someone kicked Gordon Brown in the a***!") They have at last said Manx can be covered by its parent company's arrangements.

Naturally, it will take two or three days to get the schedules back to normal but it's on the way. Residents are still anxious as to what BA will do in the long run. They
ditched the Island in (about) 1983, saying that the population was too small to sustain a commercially viable service and they might do so again.
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Old 5th Oct 2001, 20:11
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All these arrangements are great, but how's BA going to make sure that easyJet doesn't end up poaching ALL it's customers for instance?
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Old 5th Oct 2001, 21:07
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More chief pilots - that should cover all the questions/problems
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Old 5th Oct 2001, 23:23
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Good news for EICK - I was afraid the Glasgow service would go the way of the Gatwick. That J41 is a bit cramped when you're over 6ft!

As for the IOM - so they get all the benefits of the UK but still have that handy tax regime - no change there then.
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Old 5th Oct 2001, 23:53
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Latest news, gossip and rumours from BHX... sorry if the posting gets a bit long!

Firstly thanks for all the constructive postings on this sensitive subject.

For BAR staff a large Q/A briefing has been produced and distributed to most staff (eventually!) This contains lots of info which suggests that some BAR Staff will have to make further big concessions with terms and conditions. It appears that the model for most staff groups will be the current BRAL terms and conditions. Of course Unions have to get involved with these discussions to agree the details of merging in staff but reading the info there does not look like there is much flexibility as the current BACE cost base must be maintained.

It is possible, and I guess logical that BHX cabin crew could fly all / most / or combinations of A/C.

As for the 737's and 319's. Their position remains under constant review, but for the time being they remain with the reductions in hulls of 2 737's and 1 319. However they look like they will be replaced with quote " second generation regional jets" within 2 - 3 years.
It appears that BACE wants to have a stand alone position.

Immediate crew are dealt with in the internal briefings. Long term no facts, but I belive current BA flight crew will probably have to move to fortress heathrow or take up BACE terms and conditions. No news on how this will work, when etc.

Bigger routes? Some BHX routes do enjoy good loads on the 319. Indeed the BHX operation has been making good money. It is possible that BACE could wet lease a 319 / 318 etc from BA to operate these, but again this is speculation.

So were does this leave things. Very similar to the idea that I heard discussed a long time ago and I think that this was all very inevitable over time. BA will own a company which is effectively Europes largest regional airline with a very low cost base and a low staff to hulls ratio. The operation will generate a substantial turnover, will be lean, mean and flexible enough to adapt quickly, which will help it take advantage of a steep recovery in the industry whenever that comes.

Selling the new outfit to Mearsk?? I think mearsk would love the oppertunity of purchasing it and as we all know everything has its price and to save LHR I think it would go. BA do state that they have no intentions of selling the new outfit and I have no reason of disputing that.

Transition is difficult, whatever the longterm benefits... Good luck to everyone involved, keep smiling and safe flying.
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Old 6th Oct 2001, 00:50
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Why is it that the more I read about this merger the more it looks like a complete sell out to BACE? Everyone involved forced to move to BACE T&Cs or lose their job (flight crew possibly excepted)? Doesn't sound like a merger to me. I trust our senior management figures won't be moving to BACE terms. Very bad news for our cabin crews and ground staff, as it almost certainly means they'll be worse off. Will the last BA pilot out please turn off the lights? Another happy base bites the dust.
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Old 6th Oct 2001, 01:53
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Sorry, but I am very confused.

BA had a low cost Airline, called GO, and recently flogged it off.

Now it is combining two of its other low cost airlines, and presumably reducing their costs, to form another low cost airline.

Does the BA management really know what it is doing?

What will their next move be?

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Old 6th Oct 2001, 02:05
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Guys you all sound a bit surprised by this development,but if you've been in the regions for more than 5 mins you could see this has been on the cards for a long time.
Why do you think so much work has been franchised out in the past!All part of good old uncle Bob's plan for a virtual BA.Why pay me more money with better terms & conditions than somebody at BRAL ,the outfit is run by accountants thats all they see.Not larger more comfortable aircraft operated to the best of BA's high standards with excelent cabin service and the best engineering available.Nope lets fly around in ATP's that specialise in wheels up landings!cos they are cheaper who cares what people think.
Ok so i'm anoyed that they hatchet has finally fallen on real BA in manchester but good luck to the BACE guys enjoy being shaftedc time and again by Mr. Evans and crew , hope you can get on the seniority list and i'll see on the 777!!!!!

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Old 6th Oct 2001, 02:13
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The BAR / BACE merger will not create a low cost airline in the same sence as Easyjet or Go. As far as I am aware the company will still offer a high spec product for the domestic / euro travellor and the business travellor who wants a high quality service is still the target at BHX.

The company will have a much lower cost base than at current.

Ticket Prices. There are currently many good deals on BA tickets from the regions, and without checking them all out, I have been informed that many are very comparable, to the no frills carriers.

I think Go was sold as it was no longer part of BA's overall stratergy. I also seem to recall that it had become a hurdle in the BA / KLM merger talks.

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Old 6th Oct 2001, 02:15
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Call me a cynic but does anyone see the hand of Rod in this? I mean he does have a reputation for a "Sign this new contract or you're fired" approach to industrial realtions. How long before it becomes 'cost-effective' for BACE to take over all mainline shorthaul?

As for a 'high quality service', well I'm sorry but those words simply do not go with an EMB145. No offence to the Brymon crews but they are awful, cramped, unreliable flying cigar tubes and I would do my damndest to avoid travelling on one, just like many of our customers already do! They are many good deals available out of the regions, but strangely the only time you ever see them advertised is when Maersk are having a promotion on their routes. Cost saving idea there, lets get rid of the BAR marketing team who seemt o do virtually nothing anyway! The fact is, BA will never create a succesful low cost operation in-house because that requires a lean and responsive management structure which is alien to the company. The only way they see to cut costs is to attack the T&Cs of the front line staff, which is why GO pilots lagged behind Ryan and Easy in pay for quite some time. Despite BAR working their pilots harder than almost any others in BA, they are still burdened with a bloated management structure which cannot be justified and until that is dismantled BAR, and in turn BACE, will be doomed.

[ 05 October 2001: Message edited by: Hand Solo ]
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Old 6th Oct 2001, 02:56
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Hand Solo.
Your postings always make a good deal of sense.
There are many out here who agree with you!
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Old 6th Oct 2001, 03:31
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Hand Solo - especially when taken in context with the following from an article in the current Fortune magazine:

The air traffic implosion is a particularly severe setback for British Airways, Europe's biggest airline by most measures. It gets only 25% of its revenue but all its profit from North American flights. (Its European operations lose money.) In the week after Sept. 11, BA watched its market capitalization plunge by 36%, or $1.6 billion. "We don't have many precedents for how things are going to unfold," says Andrew Sentance, chief economist for the airline. "But we are doing what we can to reduce manpower costs as quickly as possible and postpone capital spending." BA normally has $1.5 billion of cash on its balance sheet to meet ongoing obligations. That could dry up quickly.
"Bankruptcy isn't a possibility," says Martin Borghetto, an analyst with Morgan Stanley in London, "but if this North American downturn continues, the company will continue to have difficult times."
Dunno about you, but I'd take that to mean: "All those on European routes will henceforth come under BACE at BACE terms and conditions. BA Mainline will be long-haul only".

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Old 6th Oct 2001, 11:53
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If BA is now almost only just a concept, then I don't see why there is a BA at all.

In other words, the franchise airlines have become the BA that BA used to be,with no expense, in fact only finacial gain for the BA management.
So why do BA struggle on and on paying their own staff the high wages they are accustomed to, just let the franchisees do the BA thing???
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Old 6th Oct 2001, 13:19
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Hand Solo I agree with what you say and I think there are a number of intersting points.

1 The A319 provides a fantastic tool to provide a very high quality cabin product. I have flown on the emb145 and although the crew were very good it was very crampt. When BA introduced the A319 two years ago service perception soared. In short business customers generally love the airbus and don't like the emb145.

2 The A319 has been making profit on most routes from BHX.

3. If you are a passenger on an A319 your ticket price includes all weather operation meaning that we will get you to your destination even if its too foggy to find your way from the carpark!! The aeroplane has some of the most high tech and latest safety features like EGPWS and is technically very reliable.

The BA A319 also has SESSMA equipment which monitors the pilots flying, highlights any handling errors and enables any trends to be rectified. Using data from this system also shows that (as well as working harder in terms of no of sectors than any other BA pilots and making profit,) those pilots operating for BAR demonstrate some of the highest standards within a company where the meaning of high is very high.

I wish BA / BAR pushed some of these extras when marketing!!!

4. Will BACE cost base grow. I think it will over time because BA is a beurocratic company and most BA managers do like the nice hotels, the flush office and a bit of empire building. Having lots of managers the "Peter Principle" generally kicks in too which is great for generating extra costs. If they can resist this at BACE then fine but I watch with interest. I cannot see the management team (which will probably be the current BAR team plus the BA staff already seconded to BACE otherwise they wouldn't agree to merge) moving into a portacabin with last years PC and no IT department. More likely a new office development on the IOM where senior managers can enjoy watching every one working very hard whilst enjoying some personal tax benifits for their increased saleries and the lovely countryside. ouch....

5 Virtual BA..... I think the current announcment has taken the original concept being talked about some time ago about as far as initially planned. Prehaps BACE will merge with the Gatwick operation in the medium term but having two out of LHR euro and regional operations does make a lot of sence.

I think BA know that the unions are too strong at LHR and the cost / fear of a serious strike at any time would be too high. Remember that fleas don't kill cats and dogs because they would no have no more blood to suck!

The aviation world lives in exceptional and dynamic times at the moment and I do want it to be noted that I do appluade the decision by Rod and his team to take some cuts in pay themselves. If in years to come we look back and find that the only way we kept some kind of job was thanks to tough reductions in T and C then phew, but when they are gone they are gone and won't come back when the passengers do unlike all the office, admin and IT staff, of which BA has quite a few!!!


Safe Flying
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