Posts Tagged ‘British Airways’

British Airways, BASSA and The Art of Negotiation

Friday, March 12th, 2010

The TUC has tried and failed abysmally to help BASSA (The British Airlines Stewards and Stewardesses Association) and its parent union, UNITE, to win its argument with BA.

Before they got involved, the TUC should have been aware of the following:

- Much of what BA wants is perfectly reasonable. Some of the old-style working practices were unacceptable. Most cabin crew do not seriously defend these.

- The high salaries of cabin crew quoted in the Press are highly misleading. They only apply to a small proportion of older staff working their way out of the company on contracts which go back to BOAC days. Younger cabin crew earn substantially less and no one could consider them over-paid by industry averages.

- The true sticking points in negotiations are fairly small but significant. In particular, there is a real concern amongst cabin crew that the airline really only wants to employ a constantly changing group of young, and cheap, crew.

- The other part of the dispute is more complicated. BA management wants to break BASSA. They do not want to be dominated by the union any longer. So far, BASSA have played into BA’s hands – most crew are very disillusioned by the way BASSA has negotiated with BA and it seems likely that once the dispute is over, BASSA will either have to change radically or disappear. Crew are also angry that BASSA has played an “all or nothing” game – making an agreement earlier would have allowed them to obtain some concessions which would have eased the fears that BA wanted only to employ cheap, young crew.

Now, faced with the above, how do you negotiate?

The art of negotiation is to get the points you want whilst making the other side think they have won.

If the unions had said to BA that they will agree all their terms but with a few exceptions, they might have got close to what they want.

Instead, they presented their “alternative savings” plan to show how the company could save money. This is just a red rag to a bull. BA management is paid to manage. They do not want to be told how to manage by a union – especially when part of their aim is to loosen the grip of the union! Agreeing – even in part – to the alternative savings plan would have handed victory to BASSA which is inconceivable.

This tactic was doomed to failure from the start. It might not come as a suprise to discover that BASSA are so thick they could not see this and it is probably not much of a surprise to discover that UNITE are no cleverer, but one might have hoped that someone in the upper echelons of the TUC would have understood that the unions had been using an unworkable negotiating strategy.

The longer the dispute goes on, the less chance there is of getting any concessions from BA and the more likely it is that cabin crew will feel they have been sold down the river by both their company and the unions.

Upbeat noises from BA

Thursday, February 11th, 2010

Business Week reports that British Airways is considering expanding its all-business-class service to the U.S. from London City. CEO Willie Walsh is quoted as saying that new destinations such as Boston and Washington are being considered now that the City-JFK service is achieving load factors of  75%, at high yield.

In other news, BA’s new  first class cabin has just been launched this week. Featuring seats that are “60% wider at the shoulder, a personal wardrobe, leather-bound writing tables that convert into dining surfaces, a 15″ entertainment screen, noise-cancelling headsets and the first electronic blinds on a commercial airliner”, it’s the airline’s first redesign in a decade. And apparently Openskies is expanding as well. All good news indeed from an airline that was in the pits over Christmas. it’s  just a shame Willie hasn’t got an agreement with the unions yet.

Read the article.

BA Innocent!

Sunday, January 31st, 2010

Press agencies pick up small stories in one country, write a short paragraph and flash it round the world so an item of small significance gets worldwide coverage. Other agencies that scour the world’s press for daily headline briefings add to the problem because they pick up the same story from countless sources and create the impression there is a major story. If you checked the daily worldwide aviation press headlines the other day you would have seen the following headline in many newspapers, “British Airways in World Cup Price-Fixing Claim”. Well, it looked a good story…

The “British Airways” in the headline is actually BA’s South African franchisee, Comair. A South African newspaper was accusing Comair, and other South African domestic airlines, of increasing their regional fares for the World Cup period. It is hardly a surprise that domestic fares increase when there is an influx of foreign visitors and massive demand for tickets. A simple case of supply and demand, not a scandal and not limited to Comair.

Yet the damage was done.

BA gets enough bad press of its own without having to be embarrassed around the world by this non-story that does not even have anything to do with them.

Willie Walsh is said to hate the whole idea of franchises. The airline might get a reasonable income from renting its name but risks a great deal of reputational damage if things go wrong.

Ironically, Comair is very well regarded in South Africa and is frequently praised as the best domestic airline, ahead of SAA. But the praise always seems to be for “Comair, a franchisee of British Airways”. When someone wants to go on the attack and sensationalise a story, the airline becomes “British Airways”.

You can’t win!

BA Cabin Crew Strike

Thursday, December 17th, 2009

To a layman it might seem rather strange that British Airways won its Court case to have the ballot by cabin crew overturned because of procedural irregularities. A few hundred possible votes from staff who were in the process of leaving the company could not have had much effect on the result of a ballot of several thousand people, nearly all of whom voted in favour of the strike.

Anyway, the fact that BA has won its case will come as a relief to many – not least the cabin crew themselves.

There was one genuine irregularity in the union ballot. Most members seemed to think the union would call a one-day strike, possibly escalating to slightly longer strikes if they failed to achieve a resolution. Many of these people were genuinly shocked when a twelve-day strike was called. Had the original ballot made it clear  that the union was going to call such a long strike, so quickly, the result might have been different.

Where BA and the unions go now is anyone’s guess. The Unite union has its own internal politics as does the actual BA union. Some of these people will be anxious to ballot for another, even more damaging strike and give BA a bloody nose and rescue their own reputations.

If they are wise, BA will act quickly to cut the ground from under the union officials and come up with some form of solution.

On this occasion, it was not just the airline and its passengers that were relieved by a strike being called off but, I suspect, many of the people who were supposed to be going on strike.

British Airways’ premium traffic looking good?

Friday, December 11th, 2009

British Airways has revealed that its premium-only service from London’s City Airport to New York is already profitable after just ten weeks. The service was launched in September, and though initially predicting simply that the route would become profitable within a year, a British Airways spokesman said  it has already made it into the black “in terms of overall seat occupancy.” (It seems a bit strange to mix profitability with load factor, but given these are all seats sold at a premium rate, he can be given the benefit of the doubt.)

BA has also confirmed that it will retain full ownership of its premium-only subsidiary OpenSkies. Demand for transatlantic flights has surged in recent weeks as the financial world voices growing optimism about a resurgent global economy. Traffic in BA’s Club World business-class cabin increased 1.5%  in November and premium long-haul services are generally operating with a load factor of over 70%.

London City – New York JFK

Tuesday, September 29th, 2009

British Airways launches its all-business-class service between London City and New York JFK today. Frequency will double to twice daily by mid-October, and will carry flight numbers formerly used for Concorde services, BA001 to BA004. Specially configured A318s with 32 lie-flat business class seats are being used and will feature OnAir inflight connectivity, enabling passengers to use their mobiles and have internet access. Passengers departing London City will be able to check in as late as 15 minutes before departure. Westbound flights will stop for refueling at Shannon, where passengers will be able to clear customs and immigration before reaching New York. Eastbound is direct. And the cost? From around £1,850 one way (which is actually in the same ballpark as the equivalent business fare from Heathrow).

Not Such a Fun Day for Air France/KLM

Wednesday, July 8th, 2009

When it first opened, London City Airport was not welcomed by local residents who feared the noise and pollution the new airport would bring. Whilst it took a long time for the airport to become a success, locals quite quickly realised that the airport did not cause too much noise but brought much-needed employment to this rather poor area of East London. The airport also went to extraordinary lengths to communicate with the local community. One of its most successful initiatives has been the annual Airport Fun Day.

London City closes every Saturday lunchtime and does not open again until midday on Sunday so the airport has the perfect opportunity to open itself up to locals and give them a taste of the aviation world. This year’s event was held on Saturday 4th July and was attended by 28,000 people. As well as giving people a good time, the event also raises a significant sum for local charities.

The event is sponsored by by the main companies working at the airport including British Airways, Lufthansa, Swiss, Aer Arann, Travelex, Airbus, Air BP as well as many other companies who have some involvement such as the Docklands Light Railway, the London Evening Standard, Barclays Bank and Linklaters.

This year, British Airways provided a mobile simulator and also allowed visitors into the cabins and flight deck of two of their Regional Jets (it is very rare for airlines to do this).  Other sponsors provided bungee jumping, giant trampolines, a sports track, games with a de-icer and a mobile light railway and many other activities.

As usual, the event was a huge success, both in raising money for charity as well as doing an important job in building bridges between the airport and the local residents. In other words, an event where everyone gains.

Air France/KLM are the largest airline at London City (following the integration of VLM with CityJet). What was their involvement in this?

Nothing. They neither took part, nor contributed.

We do not want this blog to be banned for strong language so we will just say that this looks “rather mean”.

Charity begins at home – maybe something you should consider when wondering whether to fly Air France/KLM.

Virgin’s Woes

Tuesday, July 7th, 2009

If you read our earlier post about Virgin, none of the following will come as a surprise.

A few days ago, we suggested that Richard Branson’s vitriolic and totally inaccurate comments about British Airways indicated that Virgin itself was in much greater trouble. Branson has past form on this – and silly verbal wars are a sure sign of one of his companies facing a hard time.

The truth has emerged rather faster than we might have expected.

Virgin, like every other airline, is facing a serious slump in revenue. However, what is startling is that its forward bookings are 30% down, compared to just 17% at British Airways.

Most airlines are looking to suspend routes, ground aircraft and make staff redundant but a 14% reduction including – so it is rumoured – 20% of all pilots, is pretty severe.

In other words, Virgin, whose strategy was to cherry-pick profitable routes and Business Class traffic from BA, is suffering more than BA.

Note:

Virgin have contacted us to say that their June booking statistics were actually ahead of many of their competitors. Whilst we are happy to include this statement, it should be added that, as a private company, Virgin publishes far less data than the major airlines, so it is much harder to judge where the company stands. We are also rather surprised that the Virgin PR machine has not gone into battle with an American consulting company that produced a much more negative report than our’s.  This has been well-circulated (even appearing on the website of the unofficial Virgin “fan club”, www.v-flyer.com) without any comment appearing from Virgin themselves.

British Airways New Routes to Maldives and Sharm el Sheikh

Friday, May 29th, 2009

BA have announced two new holiday routes for the winter from Gatwick. Both Male and Sharm el Sheikh will be served by Boeing 777 with three classes (World Traveller, World Traveller Plus and Club).

These flights could prove quite attractive. The flight to Sharm el Sheikh takes around five hours and can feel a long time in the tight configuration of the shorthaul charter or budget jets which fly the route at the moment. The downside could be that this is an overnight flight from Gatwick, arriving early in the morning.

The flight to the Maldives should be very popular – especially for passengers who want the comfort of one of the two premium classes.

Seats are on sale from today but – as so often happens when airlines list a new series of flights – BA are showing some fairly “optimistic” prices. There are bound to be some lower fares a little later. If you are interested, it could be worth tracking the fares or waiting for one of BA’s many sales when prices will be reduced.

www.ba.com

Is First Class dead?

Thursday, May 28th, 2009

Not according to an informative article in the New York Times earlier this week. Despite well publicised plans by British Airways, Qantas and others to reduce first-class capacity on a number of routes, other airlines, such as Lufthansa and Air France-KLM, are opening new airport lounges exclusively devoted to first-class passengers in both Europe and the United States. And the imminent arrival of their first A380 superjumbos is likely to lead to more opportunities for first-class indulgence.

The bottom line: first-class remains a powerful marketing asset and keeps top customers loyal, so is likely to remain a feature of airline travel beyond the current downturn.