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BA going 10-abreast on B777’s, Club Europe on domestics & other IAG Capital Markets Day revelations

Yesterday was the annual International Airlines Group Capital Markets Day, where IAG gives a public presentation for its bondholders on the performance of BA, Iberia, Vueling and now Aer Lingus.

The slides are made available to all. You can download the entire 118 pages here.

IAG Report Accounts 2016

On the off-chance that you have something better to do on a Saturday than read 118 slides, here are a few key points.

I have ignored news which is already in the public domain and which we have already covered on HFP previously.

“Radical improvement in quality and presentation” of food in Club World on the way

New Club World seat “in development”

Club Europe to be launched on domestic flights

More aggressive tailoring of short-haul network to reduce flights to business cities in the summer and replace with flights to leisure destinations (a 3-route trial increased load factor from 43% to 86%)

Out of London, BA short-haul flights are more punctual than Ryanair and easyJet

72 self-service bag-check desks to be introduced at Heathrow and Gatwick next year

Substantial seat densification – 25 aircraft in the Boeing 777 fleet – including the full Gatwick fleet – to move to 10-across in World Traveller compared to the current 9-across; Gatwick 777 fleet to also lose eight seats in Club World whilst gaining 24 in World Traveller Plus; Heathrow A320 fleet to gain another 12 seats, Heathrow A321 fleet to gain another 13 seats  This means that BA A320 aircraft will have the same number of seats as easyJet.

Waterside head office to be “streamlined”

Iberia – now the 2nd most punctual network carrier in the world; Premium Economy launching in 2017

Aer Lingus – positioning as the leading “value carrier” across the North Atlantic; Aer Club now pencilled in for Q4 2016 launch

Vueling – will convert its loyalty programme into Avios in Q1 2017

Avios – BAEC, Iberia Plus and Meridiana Club to move onto the Avios IT platform during 2017

Slide 65 appears to show – although it could easily mean something else entirely – that attempts will be made to encourage members not to redeem Avios on partner airlines but to focus on BA, Iberia and Aer Lingus

Slide 68 implies that the number of Avios issued in 2016 could fall marginally over 2015, presumably due to the British Airways earning changes

More, lots more, in the slides if you want it.

IAG shares closed down 3.6% yesterday at 434p.

(PS.  The image above is taken from the presentation although it has been removed from the version available for download.)

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Comments

  1. +1

  2. BA are obsessed with Norwegian, utterly obsessed.

    What they will achieve is to have no differentiation and no reason to choose on anything other than price. I certainly won’t be flying in the back of a 10 abreast 777 when I can avoid it.

  3. Lostantipod says:

    I read this article sitting in the QR business lounge in Doha and had to laugh. I had just been perusing the buffet and one of the staff asked me what I would like to eat. I said I was feeling like some cheese and biscuits and the response was “we don’t have that here, but I can ask the chef to make you a cheese platter if you like?”. Meanwhile, BA are huffing and puffing with “show me the @&£#ing money” . Show me some customer centric behaviour, IAG….then you’ll see my money.

  4. “(PS. The image above is taken from the presentation although it has been removed from the version available for download.)”

    Nevertheless, it’s still pretty puerile.

    • Off the cuff indiscretions are one thing, but that this made it through to a presumably carefully crafter & internally reviewed public presentation speaks volumes about the direction BA is being driven.

    • Off the cuff indiscretions are one thing, but that this made it through to a presumably carefully crafted & internally reviewed public presentation speaks volumes about the direction in which BA is being driven.

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