What’s happening at British Airways?
September 27th, 2009
Walking around London the last couple of days, I’ve seen the following headline on those Evening Standard boards that are dotted around the city:
“BA to charge for choosing a seat”.
Okay, firstly you need to understand where the Standard slots into the array of newspapers available in the United Kingdom. Politically speaking, it’s typically right-of-centre, and has been fairly unfriendly to the Labour government since not long after we came back into power in 1997. It’s quite similar to the Daily Mail in that it takes a fairly angry, indignant attitude towards the way society is “going”. So one could read from this headline that the Evening Standard’s editors don’t think the idea of British Airways charging people to select a seat is a very good one.
I don’t always agree with what they have to say, and I haven’t bought the Standard for a good few years (although they do have a good Friday magazine, and jobs sections!), but on this case I agree. British Airways has been under financial duress for a long time; in fact it’s almost miraculous that they’re still flying considering the hits they’ve taken: SARS, 9/11, economic downturn, worries about the ecological impact of flying, competition from the train (for European and domestic travel) etc. Major airlines have disappeared over the last few years, and it’s good that the British flag carrier is still in operation, and was the fifth largest carrier in the world in 2008.
BA has been the national pride for a long time, flying to 150 destinations around the globe, connecting millions of people a year from distant cities to their destinations via London Heathrow & Gatwick, and enabling those living in the UK to travel around the globe without connecting in Paris or Frankfurt. But we must put national pride aside while we consider the future of the airline. Whilst I do believe it is one of the greatest airlines ever – and that feeling of boarding a British Airways plane at the end of a tiring trip, in a foreign land is always rewarding – I find it saddening that the company is effectively turning itself into an expensive version of easyJet or Ryanair, with no apparent added value. Earlier in the summer the company announced that short haul passengers would no longer receive in-flight meals at all. Senior management came under a great deal of flack for suggesting that some middle managers and lower staff should forfeit a month’s salary for the good of the company, when the CEO earns three quarters of a million pounds per year. Now the decision to emulate the low-cost airlines in leaving passengers to fight for seats at the last minute adds to the illusion that British Airways is slowly losing the quality touches that make it great.
And that’s on top of long-standing issues such as poor numbers in reuniting people with their luggage (BA is the worst offender in Europe for losing passengers’ bags) and failures in dispute resolution leading to strikes that cause global disruption to tens of thousands. Added embarrassment came last week when it emerged that Downing Street chose Virgin Atlantic, another great British company, to take the Prime Minister and British delegation to the UN General Assembly and G20 meetings in America. British Airways traditionally carried Prime Ministers on foreign trips by air.
So what to do? I don’t claim to be an expert in the aviation business, but maybe it’s time for the UK to stop fighting to retain a global service airline on the scale of Lufthansa or Air France-KLM, both of whom have solid financial bearings and great service reputations. How can pride drive business decisions? Surely it would be more effective if BA scaled back some of its routes, stopped ordering expensive new aircraft, and focus on the profitable routes it does serve. And use some of those profits to give people an excellent short-haul option in Europe. When I choose to fly a traditional carrier over a low-cost carrier, I expect an assigned seat and something to eat/drink on my flight. Maybe a free newspaper too! I do like and respect easyJet in many ways, but sometimes you want that little extra. And while we’re at it, starting a dedicated business class service from London City Airport (LCY) to New York’s JFK is a bad idea! I know there’s a huge business community in Canary Wharf, which is near to LCY, and I know BA wants to compete with Air France and the other European airlines that connect those business-people to New York via Paris or Amsterdam, but would it not be cheaper to ferry them across the city to Heathrow on a helicopter? Like they do in New York?!
One thing I’m sure of. It would benefit nobody if the company were to receive major state aid. They should be left to the market forces this time. They’ve used their dominant position to bully the rest of the British aviation sector for too long. I personally think it’s the wrong strategy to turn BA into a trumped-up low-cost airline. If the market agrees, and they can no longer survive and prosper, perhaps the government should let Lufthansa/BMI/Virgin Atlantic acquire their assets and create a profitable, efficient, and top quality flag carrier for the 21st century.

I know, it’s been a few weeks now since my last post, but I’ve been having a sabbatical of sorts. From writing, work & politics. But I’m back now.













