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BA Management

Old 19th Jun 2019, 15:14
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Originally Posted by Astir 511
If you always do, what you always did, you'll always get what you always got. Too many fine British Historical brands have gone to the wall, because they refused to Change, Adapt, Innovate.
Are you sure that they did not go to the wall because the spectators/stock market got bored with companies that simply got on with their jobs ? eg ICI, English Electric.
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Old 19th Jun 2019, 17:44
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Originally Posted by Andy_S
True. It may not be "broke" but it will become outdated if you fail to innovate or consider changing customer requirements.
Nearly I believe the phrase is ‘change customer requirements’ NB the consent or knowledge of the customer is optional!
Be lucky
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Old 19th Jun 2019, 18:25
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Change and adaptation is always necessary as long as it’s well researched and finally effective ..
I always liked the timeless conclusions drawn in “The credibility trap “ by J K Galbraith, just as valid today as when it was first written ...
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Old 19th Jun 2019, 21:00
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Originally Posted by Reverserbucket
He also mentioned the use of mixed-fleet cabin crew (with the hats) and their T&Cs which I understand to be quite different to legacy CC contracts at BA. What might he have meant?

BA MF Cabin Crew are on arguably one of the worst cabin crew contracts in the UK. Worse than Easyjet & Jet2, and considerably worse than Thomas Cook, TUI and Virgin, it's also a lot worse than their counterparts over at LCY working for BA Cityflyer. It's slightly better than LGW crew though, if that helps......

The only attraction to the job is the brand name, the uniform, and the glamorous destinations in which they get to spend minimum rest nightstops.
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Old 19th Jun 2019, 21:42
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Flew BA from MAN to LHR a few weeks ago as I had a day long meeting in a hotel just off-airport. Stayed overnight the night before the meeting and was going to go back to T5 for a fairly long wait for the flight home when a colleague offered me a lift. I chose the lift, partly because I found the seats and leg room so uncomfortable compared to EZY, and I fly EZY at least four sectors per annum.

Next time I am taking the train and Heathrow Express. Not much cheaper but more comfortable and almost as convenient.
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Old 19th Jun 2019, 22:21
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Why would the stock market and shareholders get bored with an investment if it is competitive, reduces costs and maximises profit. If as an industry we don’t innovate we would still be flying the same as Orville and Wilbur. Not all Changes will work, but you have to try. 10% of successful change and innovation is still better than none. Easy to sit on the sidelines criticising management, and the only suggestion is not to change and innovate.
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Old 20th Jun 2019, 08:35
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BA pilots are to be balloted on strike action. If you are a traveller with a choice of airline, BA or another, for your future booking today what would you do?
Management are responsible for allowing this situation to develope. I have no connection with BA.
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Old 20th Jun 2019, 10:26
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Originally Posted by Reverserbucket
I fly BA a lot (10 S/H sectors in the past 7 days), usually down the back, and have very recently been introduced to the Recaro seats on the 320's.
I don't really understand this comment. Aren't most airline seats (especially in economy) made by Recaro?

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Old 20th Jun 2019, 11:39
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Originally Posted by Astir 511
Why would the stock market and shareholders get bored with an investment if it is competitive, reduces costs and maximises profit.

Because if a fund manager can make 7% rather than 6% this year they may get paid a substantial bonus, whilst it is irrelevant that the company goes bust in 5 years time - by that time the manager will probably have moved on.
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Old 20th Jun 2019, 12:35
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Originally Posted by marchino61
I don't really understand this comment. Aren't most airline seats (especially in economy) made by Recaro?
The airline seat market is pretty competitive.

New seat supplier for British Airways short-haul
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Old 20th Jun 2019, 12:55
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Originally Posted by occasional
Because if a fund manager can make 7% rather than 6% this year they may get paid a substantial bonus, whilst it is irrelevant that the company goes bust in 5 years time - by that time the manager will probably have moved on.
Respectfully, I disagree, the thread was about Management decisions within the Airline, Fund Managers don't make Operations or strategic decisions for an Airline. They rely on the Airline Mgmt to make the right decisions. Agreed theses decisions will have an element that is driven by profit, but the fund manager doesn't decide to drop the now legendary breakfast!. That is driven by Competitive landscape, and the customer preferences.

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Old 20th Jun 2019, 12:59
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Companies don't go to the wall because Stockholders get bored and sell their shares. Share price is driven by profits and future prospects. Airlines go bust because they run out of cash. Some bankruptcies are as a result of Macro Economic conditions, others by failure to adapt to the needs of the Market, it's this element that is mostly in the power of the Airline.
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Old 20th Jun 2019, 13:04
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I would suggest it's a bit of both, it takes two to have a disagreement. The Unions have decided to Ballot, It's actually Management and Unions who are collectively responsible, and funnily enough none of them are ever out of pocket, so it's easy to play Mexican standoff when it's not your Bank Balance.

I agree that poor Management leads to Strikes, but Unions painting a picture of significant gains in remuneration that are unreasonable/unachieveable, drive the behaviours of Union Membership.
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Old 20th Jun 2019, 13:12
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In this particular case the pay deal Balpa are asking for is neither unreasonable or unachievable.
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Old 21st Jun 2019, 09:03
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Originally Posted by Astir 511
Companies don't go to the wall because Stockholders get bored and sell their shares. Share price is driven by profits and future prospects.
I responded to a post which was not particularly about airlines, so, if we stick to the aerospace sector, perhaps you would care to explain the takeover of GKN by Melrose on the basis of your analysis. The value of the two companies combined has declined substantially since the takeover about a year ago.
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Old 21st Jun 2019, 10:47
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The thread started by Critiquing the BA Management decision to commit to the MAX aircraft, and "Was there something in the tea. It has since deviated to be a criticism of Investment funds and Hedge Funds. I don't profess to be an expert in the M&A market, But my inital premise still stands. Shareholders don't invest to drive the Share Price Down. Some will argue that there are Venture Capitalists out there who "Prey" on companies in distress, Greybull Capital being a frequently cited company, and associated Asset stripping, but the harsh reality (Monarch as an example) is these companies are already in distress, they are not driven to the wall by Venture Capitalists, they were already veering towards the wall. Sometimes a turnaround can be effected, other times it cannot, as they left it too late, which brings us nicely back to my initial point about failure to Change and innovate will kill companies.
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Old 21st Jun 2019, 10:53
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I understand 11.5% increase over three years is on the table, Is anyone familiar with what is being demanded by BALPA.
It's around the Current Inflation rate, and seems reasonable - Unless BALPA are demanding an inflation busting % increase?
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Old 21st Jun 2019, 11:22
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Seems to be some confusion as to the nature of the change management animal. The brief is, simply put, that the senior managers perform a strategic review and decided this, that or the other needs changing in order to get from where they are, to where they wish to be. In order to ensure all the t's are crossed and the i's are dotted, change management continually evaluates the process and make sure everything is aligned with the new direction.

So far, so good.

However, being an ambitious lot given ever wider merit, change management has a tendency to morph into an entity going around looking for things to change. It's not the really important bits, like which product to produced and how to get about transitioning the company - they spend most of their time messing around with present workflows, procedures and processes, usually with no other aim that cost cutting. And if they're not busy doing that, they try to invent a crystal ball telling which department(s) to go about changing next. This is where the deep resentment from the rank and files come from; they don't usually offer anything of value as far as the future of the company is concerned, rather they faff about changing existing procedures to match the clap trap they've been taught in business schools.
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Old 21st Jun 2019, 19:58
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There's a whole sub-division of uselessness in the corporate world called 'change management'
Not useless at all. Change Management is the process of implementing in a structured and orderly manner initiatives decided on by the board. Whether the *initiative* itself is a brainf¢rtor not is another matter...
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Old 24th Jun 2019, 22:47
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Originally Posted by SMT Member
There's a whole sub-division of uselessness in the corporate world called 'change management', living under the illusion that not constantly changing things around means not following with the times. As is always the case, such sub-divisions develop ambitions way beyond their initial brief, and starts attempting to see what the future will bring and act accordingly. It almost always goes wrong, but since 'change management' is seen is a vital component of running a major business, all of senior management is fully vested in the idea and the concepts they develop. Thus the usual recipe for yet another failed attempt at developing a crystal ball, is to promote the senior change manager and throw even more money at it.

In the mean time, those guys and girls actually running the show are left bewildered, confused, demoralised and in utter contempt of their management. As this seeps through to the bottom line, more money, time and resources are thrown at 'change management', in an attempt to break the cycle.

Yes, they are indeed that stupid. But my oh my, do they ever surround themselves with an avalanche of fancy words, visions and missions.
There's nothing wrong with the philosophy of continuous improvement (often referred to as Kaizen), but what you are talking about I like to call Kaimugen or continuous (infinite) change which I've seen exacerbated by new managers wanting to make their mark.
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