Jump to content
House Price Crash Forum
Sign in to follow this  
interestrateripoff

British Airways Jettisons High Fares And Goes For Offers To Put ‘bums On Seats’

Recommended Posts

http://business.timesonline.co.uk/tol/busi...icle6735415.ece

British Airways has responded to mounting losses by unleashing an array of special offers and reduced fares to lure back passengers.

The airline said yesterday that it lost £94 million in the three months to the end of June and has lost more than £400 million already this year. The first-quarter loss was BA’s first in its normally strong spring months since privatisation in 1987.

To combat falling passenger numbers, BA has dropped its policy of trying to keep fares up and has instead resorted to slashing prices to drive demand. Many headline fares to destinations such as New York have been cut but these are easily matched by competitors, so BA is concentrating on a range of alternatives to avoid an all-out price war.

• It is offering tour operators big discounts for packages such as American fly-drive holidays or Caribbean breaks. These allow it to sell heavily reduced seats without alienating existing customers or alerting rivals. For example, Kuoni is offering package holidays to Barbados in November with the option of going business class with BA. The upgrade costs £1,344 while a standard flight-only upgrade from BA would be £1,967.

• There are special offers on BA’s website such as the recent two-for-one deal for business-class seats.

• Passengers are being offered upgrades right up to the check-in desk. Empty seats in the premium cabins generate no money so the airline is encouraging people to part with a bit more money. For example, one passenger travelling from Phoenix to London was recently offered an upgrade from economy to premium economy for just £90. The normal upgrade price is about £700.

• More seats have been released for people wanting to use Air Miles, and fewer miles are needed to book many destinations. These passengers can then be offered upgrade packages to bring in extra revenue.

So BA flights have been over priced and finally they realise this.

Now we are losing money hand over fist we cut prices in a desperate attempt to stay in business.

Share this post


Link to post
Share on other sites

Not only have BA flights been overpriced, but they have an increasing reputation for poor and unreliable service to contend with. First there was the T5 fiasco, now they're reducing their flight schedule (so less flexibility for potential customers), and finally there is the very real threat of strike action later in the summer. I'm not surprised that BA is trying to sell flights bundled into package holidays - it removes the customer's option to fly with someone else.

And BA aren't the only ones cutting prices and adding incentives. I was recently able to book a Flying Blue miles upgrade on a transatlantic KLM flight, something which is usually completely impossible.

Share this post


Link to post
Share on other sites
Not only have BA flights been overpriced, but they have an increasing reputation for poor and unreliable service to contend with. First there was the T5 fiasco, now they're reducing their flight schedule (so less flexibility for potential customers), and finally there is the very real threat of strike action later in the summer. I'm not surprised that BA is trying to sell flights bundled into package holidays - it removes the customer's option to fly with someone else.

And BA aren't the only ones cutting prices and adding incentives. I was recently able to book a Flying Blue miles upgrade on a transatlantic KLM flight, something which is usually completely impossible.

Just seen on news that BA are trying to regotianate pre delivery payments on its dreamliner order, same as with its A380 order. Apparantly they have committed to 24 dreamliner at $180 mill each and 12 A380 at 300 mill or so. Banks seem to be a bit sheepish about lending for unbuilt planes apparantly, as theres not much to repo in case of bust. Seems a big commitment, especially as they are loosing money.

Share this post


Link to post
Share on other sites

BA have build a reputation on good service not cost

Businesses who have walked away form using BA will only be looking at Flight Price (Not the same as Cost to the company as one has to consider productivity of the employee related to the time and route of the flight) BA cannot compete there cost base is too high.

The holiday punter may want to fly BA but they will be expecting better service than Ryan Air / Easyjet. But the holiday punter may only buy a few flights a year.

Basically BAs strategy smacks of desperation.

I am still a big fan of BA they have always looked after me and their 'flight experiance' IMO is one of the best and I hope they make it through all this cr@p

Share this post


Link to post
Share on other sites
BA have build a reputation on good service not cost

Twaddle.

Aaargh, meant to point to a posting, but google groups seems to have gone AWOL. My last ever experience of BA was in 1996 when they:

( a ) cancelled my flight from Gatwick to Rome

( b ) didn't bother to tell me (or, it would seem from the chaos at Gatwick, anyone else)

( c ) provided no information at Gatwick

( d ) sent victims around several different desks at Gatwick, including at one point the first class desk where staff were downright rude.

( e ) finally put me on an alternative flight from Heathrow, much later in the day

( f ) ... but refused to provide or pay travel from Gatwick to Heathrow

( g ) took no responsibility for dumping people in Rome too late for the last bus to anywhere near where I lived.

The sharp contrast to this was when Monarch airlines was seriously delayed (2 hours IIRC) once on Gatwick-Rome. They apologised, kept us informed, and issued vouchers for refreshments at Gatwick. I'd call that a basic level of service. Oh, and Monarch was also consistently a more pleasant journey on that route: even before that last-ever-in-my-life experience with BA, I'd have paid more for Monarch's superior level of comfort.

Share this post


Link to post
Share on other sites

+1. I stopped having anything to do with BA after two incidents in quick succession a few years ago. The first was on a trip to Australia. When booking I'd filled out the online form to state clearly that I was lactose intolerant, i.e. I can't eat anything with milk, butter, eggs or cheese in it. When I got to the connection at Heathrow (the flight was Newcastle - Heathrow - Singapore - Sydney - Alice Springs), they'd changed the aircraft type at the last minute and all was chaos. About an hour after takeoff: 'Would you like pizza or lasagne, Sir?'. Thirteen hours later I was very hungry indeed.

The second was an attempt to meet my other half, who I hadn't known that long, arriving at Manchester from the Faroe Islands via Copenhagen and Heathrow. At the time she spoke no more than a couple of sentences of English. The LHR-MAN flight was cancelled and they put her on one to Glasgow and gave her a train ticket back to Manchester. A fat lot of good that was, given that (i) she arrived at Glasgow after midnight, i.e. long after the last train had gone, and (ii) her language skills weren't up to negotiating the problem. I arrived at Manchester to find the incoming flight cancelled. When I asked at the information desk where she was, I was told that this information couldn't be released due to customer confidentiality. I eventually got 'phone call from the Danish embassy in London (whom the police at Glasgow Airport had contacted after she'd gone to them for help), followed by a drive through the night to Glasgow.

The day BA go bust we'll both be cracking open a bottle.

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • The Prime Minister stated that there were three Brexit options available to the UK:   287 members have voted

    1. 1. Which of the Prime Minister's options would you choose?


      • Leave with the negotiated deal
      • Remain
      • Leave with no deal

    Please sign in or register to vote in this poll. View topic


×

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.