05 February 2010

BA Ã¢â¬Åâœstarting to turn the cornerÃ¢â¬~

British Airways is beginning to turn the corner but still has a long way to go to before it can see a secure future, according to an industry commentator.

Commenting on BA’s results released this morning, Bob Atkinson from travel comparison site travelsupermarket.com, said:"BA’s results may, on the face of it, seem like bad news, but they show that the airline is beginning to turn the corner by cutting the size of the loss.

"However, full year results are still going to be grim and are unsurprising after what has been a difficult period."

He added: "The company may be having a torrid time with eye watering financial losses, staff disputes and a weak world economy, but ultimately it’s the airline’s customers that are suffering and losing their loyalty is the biggest current threat to the airline.

"BA needs to cut costs and this has put it into dispute with its staff and union, Unite.

"With Unite balloting members again now on industrial action, there is continued uncertainty for BA’s passengers, and those who suffered over the Christmas period will want to avoid a repeat of that experience at all costs should a strike be called later this month.

"Despite an excellent overall product offering, consumers are increasingly reluctant to book flights with BA in case of cancellations or poor on board service from unhappy staff.

"BA needs to resolve this damaging dispute behind closed doors and allow customers to plan, book and travel in confidence once again with this iconic airline.

"If not, the world of choice available to the travelling public will lead passengers away to rivals permanently - since the most recent strike ballot was announced we’ve seen a 12% reduction in passengers choosing BA on travelsupermarket.com, as customers desert them for competitor airlines.

"And with pension problems, a proposed merger with Iberia in progress, waiting for a decision on the transatlantic deal with American Airlines and Iberia and the highly publicised issues at JAL, its partner in Oneworld, BA has a long way to go before it can see a secure future for itself and its passengers."

by Phil Davies

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Customer Loyalty is Key

I would agree with this. British Airways has lost customer loyalty as soon as the strike over Christmas was announced. They are going to have to work really hard at re building that loyalty and will need their staff on board to do so. They need to start with their existing customers and communicate with them to re build that confidence and remind them of the key reasons that they use British Airways in the first place.

By Fiona Drane, Sunday, February 7, 2010