Their "cost-base" problems stem from them buying large amounts of fuel at a high price. The price then dropped. While the airline (like the rest) charges its customers fuel charges it is still having to absorb the cost of using fuel that is priced higher than its main competitors.
That's before even considering the pension black hole....(like everyone elses pension black hole.....the public service one is over 1 pounds so far).
Different terms and conditions for new employees is nothing new either, most employers do that.
The union role is not so different either. They ask their menbers (they have to by law) if they want the ability to strike and get a reply....over 90% did. The COURTS held that they should not have included those that had accepted redundancy (the law does not mention that...)....the union is mulling an appeal (which will probably succeed...the redundant members were still members.....they could action the union if they were excluded)
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British Airways Strike - A shot in both feet?
Quote by JTS
Their "cost-base" problems stem from them buying large amounts of fuel at a high price. The price then dropped. While the airline (like the rest) charges its customers fuel charges it is still having to absorb the cost of using fuel that is priced higher than its main competitors.
That's before even considering the pension black hole....(like everyone elses pension black hole.....the public service one is over 1 pounds so far).
Different terms and conditions for new employees is nothing new either, most employers do that.
The union role is not so different either. They ask their menbers (they have to by law) if they want the ability to strike and get a reply....over 90% did. The COURTS held that they should not have included those that had accepted redundancy (the law does not mention that...)....the union is mulling an appeal (which will probably succeed...the redundant members were still members.....they could action the union if they were excluded)
Their cost-base problems stem from long before the recent increases in fuel, although admittedly their fuel hedging has not helped their situation but airlines such as Ryanair made a much bigger mess of hedging and are still turning in a profit whilst BA have lost over £1 billion in the past 2 years.
Having the wrong business model at a time when businesses were having major problems worldwide didn't help.
Having half your income from 13% of passengers, the same 13% that cut-back on their spending when times were bad, was just bad luck.
And the fuel bill of nearly 3 billion dollars didn't help.
But Ryanairs bill was not anywhere near that.
Having half your income from 13% of passengers, the same 13% that cut-back on their spending when times were bad, was just bad luck.
And the fuel bill of nearly 3 billion dollars didn't help.
But Ryanairs bill was not anywhere near that.
Quote by JTS
Having the wrong business model at a time when businesses were having major problems worldwide didn't help.
Having half your income from 13% of passengers, the same 13% that cut-back on their spending when times were bad, was just bad luck.
And the fuel bill of nearly 3 billion dollars didn't help.
But Ryanairs bill was not anywhere near that.
In fairness, their business model was in place long before the recession and for a company of BA's size it's not easy to change the model overnight. BA's fuel bill is larger than Ryanair's simply because they fly more air miles.
