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

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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.

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 (107)

This article is closed to new comments. Feel free to ask your question in the HfP forums.

  • James777 says:

    BA==easyjet now

    • James67 says:

      I hope not, I recently booked four trips on easyjet next year for the first time because I thought they were now better than BA.

    • Lady London says:

      Don’t insult Easyjet!

      The cabin crew experience has been embarrassingly consistently pretty good (as compared to the odd off day with BA crew) every time I’ve flown them although not frequently.

  • Ed says:

    The economy service is really going lcc route. Density of seating and bob, though I doubt prices will match

  • Phil G says:

    Another reason to use another airline.
    The population has got bigger and they’re squeezing another seat in cattle

    • Rob says:

      Not many airlines still at 9-abreast. Even ‘quality’ carriers like Emirates do it.

      • Doug M says:

        I know you quoted it, but generally isn’t the ‘quality’ judgement made by people sitting at the front of the plane.

      • flyforfun says:

        Which is why when I first travelled with Emirates on a B777 leg after a decent A380 leg, it was a horrible shock to be wedged into such tiny seat. I’ve vowed never to fly their B777s again and actively tell people to check and avoid it. I started flying Cathay recently in Y and discovered how comfortable 9 abreast on a B777 was. I’ve flown it a couple of times and doing so next month again. They are going down the same route but for the wrong reasons. I’ll stick to the A350 where possible instead.

        Just because other carriers do it doesn’t mean it’s right either, it should have been a USP.

  • Tilly71 says:

    Yep, i read yesterday about a new style avios type programme for BA + IB + others yesterday. Not looking good for some in the future this move.

    • Rob says:

      Miles & More and Flying Blue run off one platform with no issues.

      It would make life easier but there are loads of contracts to unpick to genuinely make it work.

      • the real harry says:

        And with the number of Avios to be issued set to rise by 20%, there may be some juicy points-earning opps.

        If IAG want Avios pushed hard to a wider public, there could be all sorts of offers coming right up.

        • Rob says:

          Don’t read much into that – Aer Lingus and Air Maroc and Vueling will account for a lot of the jump.

  • Joe Blogs says:

    I’m stunned by the wording of that slide image. I work in communications for a large organisation and that sort of thing would never, ever, ever be allowed. Not only is it crass, but it shows the contempt with which management views the general flying public. A really poor signal for a race to the bottom. Such a shame, given the work that has been done to improve the airline’s image over the years. As a silver member, I won’t be choosing to support the airline in the future, especially given we now have to buy food and drink in economy shorthaul. Might as well fly a real budget carrier.

    PS: someone should alert the press to this slide.

    • Tony says:

      Fully agree and highlights the culture in the organisation. I am tempted to use up my Avios and focus on price/quality going forward i.e. bye bye BA
      ps and yes, if the slide above is real then the press should see it

      • Tony says:

        I have got to the point where loyalty is gone and I really will not be sad to see the demise of BA. I have stopped providing feedback/completing surveys as the BA agenda is clear, and epitomised by the slide above.

  • LondonSteve says:

    For me the most alarming news is the decision to squeeze another two rows of seats into LHR-based A320s. The recent interior refurbishment of the short haul fleet already considerably reduced the amount of personal space, simultaneously removing any benefit to sitting in Club Europe. A recent trip to Dalaman on an LGW-based 320 was the most uncomfortable flight in my life; strongly suspect the configuration has already been set to the legal minimum on Gatwick short haul. A flight the following day from LHR on a 320 illustrated the stark difference, such that even the compacted configuration felt like a breath of fresh air compared to its Gatwick brethren. Along with the abolition of complimentary refreshments, paid-for luggage and now this, I’ll be burning through my modest collection of points as soon as possible, before they are hit with a further monetary devaluation. The singular remaining benefit to flying BA, for me, is access to London Underground at Heathrow, vs. an often lengthy and expensive journey to a secondary airport, but this is worth no more than 20 pounds per flight, at best, which can be saved in a heartbeat by flying with an LCC. From Silver status a few years ago and putting as much business BA’s way, to actively avoiding BA unless I can get a reward flight (and only when an LCC is comparable in cost), is a major U-turn. I can’t be the only one….

  • Jack says:

    Some interesting reading, just flicking through the slides now. What is Super Hi-J (slide 12)?

    • Bob says:

      They are the 747 flying to east cost (JFK…) with more club world seats than the Hi-J 747.
      They have been introduced one of two years ago now.

      • Jack says:

        Thanks!

        • Will says:

          They’ve got upgraded IFE compared to 777’s in J and I suspect compared to the non super high J 747’s (never flown one)

          Upper deck on the super high J’s is a nice experience.

          If anyone’s doing NYC, flying BA 1 from city on the baby bus and then back to LHR on the upper deck of a super hi J 747 is worth searching for.

      • Jim says:

        Slide is real, sadly. Willie waving to impress the City Gekkos but particularly tasteless as it preceded a presentation including staff rationalisation & cuts in service/comfort levels for customers. Silly Willie.

  • Ian says:

    Show Me The F*cking Money?
    Hmmm ok, how about Show Me a Different Airline thank you very much?
    Shocking!

    • William Mackenzie says:

      I really hope the press pick up on this. It is crass and not becoming of the brand BA say they are.

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