Simon Calder: Why Walsh is turning to Spain to relieve BA's pain
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference."We'll take more care of you," the British Airways slogan used to run. "Fly the flag." These days, within Europe, many more of us fly the harp (Ryanair) or the orange splodge (easyJet). BA's chief executive, Willie Walsh, has many burdens to shoulder, from strike-prone cabin crew to a ballooning pension deficit. But at the core of BA's startling loss of £16.50 for every passenger it carried during the summer is the traveller's changing perception of value.
Unquestionably, BA commands a premium for its with-frills product: a still-generous free baggage allowance, free pre- assigned seating and at least a G&T or a coffee to go with the packet of birdseed that passes for lunch on shorter European flights.
Commendably, the price you first see when you book online with BA is the price you usually pay. The airline's punctuality has never been better. And, when an itinerary unravels due to disruption, BA is generally better at coping than its rivals. Yet the evidence from yesterday's results is that we do not value these benefits sufficiently highly to sustain the airline's astronomical cost base.
One of Mr Walsh's key strategies to reduce the cost per seat kilometre is to merge with Iberia; the UK and Spanish flag carriers look as though they have little choice but to marry, given the non-availability of other partners of the right scale.
It is widely believed that the resulting airline will have its headquarters in Madrid, a deal-breaking demand from Iberia. The two airlines, though, have radically different reputations: not quite BA's Waitrose to Iberia's Lidl, but not far off in the perceptions of many passengers. Delegates to last month's Abta convention in Barcelona who flew on Iberia described it as "easyJet without the smiles".
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments