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British Airways Centenary Becomes A PR Nightmare

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British Airways Centenary Becomes A PR Nightmare

Old 14th Sep 2019, 13:59
  #81 (permalink)  
 
Join Date: Aug 2006
Location: West Sussex
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etudiant, like so much that is coming under the spotlight these days, the concept that slots are an asset that can be bought and sold along with the operator that they are allocated to needs revisiting. BA has absorbed many airlines into its own operation (including many that preceded it as we are reminded by its so called centenary). Many of those operators held London slots that then became added to those already allocated to BA). Does BA therefore own these slots that they paid good money for when buying otherwise worthless airlines (I speak as Devil's advocate of course)? The answer legally is no. The answer politically? Anybody's guess, but I suggest that those advocating those slots be denied at their whim to the travelling public need to take into account the possibility of being hoist by their own petard.
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Old 14th Sep 2019, 17:47
  #82 (permalink)  
 
Join Date: May 2011
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Originally Posted by Chugalug2 View Post
BA has absorbed many airlines into its own operation (including many that preceded it as we are reminded by its so called centenary). Many of those operators held London slots that then became added to those already allocated to BA). Does BA therefore own these slots that they paid good money for when buying otherwise worthless airlines (I speak as Devil's advocate of course)? The answer legally is no. The answer politically? Anybody's guess, but I suggest that those advocating those slots be denied at their whim to the travelling public need to take into account the possibility of being hoist by their own petard.
Totally agree, this is the critical issue and I cannot believe the BA leadership is not totally focused on keeping those slots nailed down, no matter what.
So expect a substantial BA sponsored flag waving campaign, plus have them working very diligently to stay on the right side of TPTB. I don't know how their press relations are, but this would be a good time to polish those as well.
Meanwhile, their legal staff is doubtless working hard to nail down their slot ownership claims as much as possible and war gaming the potential alternatives.
Who knows, maybe they could buy Norwegian to ensure the public continues to get served if their pilots go on strike.
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Old 14th Sep 2019, 17:58
  #83 (permalink)  
 
Join Date: Aug 2006
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Interestingly, the government's Competition and Marketing Authority (CMA) has been having similar thoughts :-

"73. The removal of the grandfathered rights and auctioning of slots should increase market efficiency and allow for greater competition between airlines. Airlines would be able to compete to access slots periodically, which will lead to slots being used by the airlines that can use them most efficiently. New entrants would be able to increase their slot concentration quickly and be able to provide more competition to incumbent airlines on particular routes. The result of which should lead to better consumer outcomes, as airlines have a greater incentive to optimise their investment and encourage greater innovation in the subsequent use of slots. "

This from their advice to the DfT,

https://assets.publishing.service.go...port-slots.pdf

The key would be future auctioning of slots, sales between operators allowed, but otherwise retained on a Use it Or Lose It basis. The words Hens, Foxes, And Chicken Coops spring to mind...
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