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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. 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 (107)

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

  • Dan says:

    I assume the line on the picture above is replacing “to fly, to serve” in 2017 no?

    Sounds about right.

    • Majunga says:

      Thank you Rob. I only downloaded the image after reading your post-scriptum!
      Why the speech quotes? Is BA referencing Wall Street or a Michael Milken autobiography?

    • Erico1875 says:

      Not impressed with that image
      Even Michael OLeary has realised that the aggressive style turns customers away, and they were flying folk around Europe for a tenner

  • Metatone says:

    Obviously I’m a pauper compared with most here, so I may be one of few affected by the densification. But, damn, that’s a big incentive to look at other airlines if you have broad shoulders.

  • Stu R says:

    It only amazes me that it’s taken cash hungry BA this long to announce 10 abreast in their 777’s. Emirates have always been 10, and AF/KLM have had 10 for a good while, to name but a few.

    A330’s aren’t wide enough to cram in another seat although I fully expect many airlines will, in future, shoehorn 10 abreast on the A350.

    Thankfully, thanks to this site, most of my long haul flying happens down the front now – thank you Rob!

    • Stu R says:

      I stand corrected, apparently Air Transat and Air Asia have 9 abreast on A330’s ….

      • @mkcol says:

        3x3x3 is standard “charter config” for A300-based fleets. Monarch & Airtours were doing it ~20 years ago – it was truly horrific.

  • Tim says:

    What an avalanche! The most concerning issue there is the unification on the Avios IT platform. Try booking a business class seat with even a single connecting flight and the system fails. It has been like this since Avios came into being. Is it my perception or do things always get worse?

    • xcalx says:

      “The most concerning issue there is the unification on the Avios IT platform”

      This causes me the most concern also, gone will be the IB cheaper taxes option.

      • Rob says:

        Not sure it will work that way. For a start, as Aer Lingus is not in oneworld AerClub members cannot book oneworld partners.

      • James67 says:

        I have no idea about the form it will take but I’m sure avios will be handling it. When I called avios to use my Lloyds voucher back in September the booking agen was very chatty and when I complimented her on her knowledge and efficiency she told me quite bluntly that this was good because we would soon all be calling them to make our arangements. I then subsequently received a survey a few weeks later on thd same subject.

        • Rob says:

          The two remaining UK BA call centres are under ‘consultation’ for, presumably, closure.

          • Lady London says:

            Would that be Newcastle? They’ve mostly been doing a great job in recent years. What a pity.

          • the_real_a says:

            God forbid. The India center whilst polite is utterly useless.

  • James Alexander says:

    In my recent experience, Yes that quote totally replaces “To Fly To Serve”

    Bye Bye BA!

  • Ethan James says:

    It looks to me like the 777s are losing 3 rows of Club, so that’s 24 seat reduction not 8.

    • Nick_C says:

      No. Front club cabin enlarged from 3 rows to 4 by reducing size of galley between club and WT+. Second cabin changes 2 routes of club to WT+

      • @mkcol says:

        And I’m struggling to see if it’s 2 or 3 lavs removed on the 777 – my eyes aren’t so good.

        • Nick_C says:

          It’s not only your eyes you will be struggling with if you fly on one of these!

  • James67 says:

    Typical of IAG that all the crap stuff has a defined timetable to be introduced in the short term whilst anything potentially good is “on the way” at some vague time in the future. Sounds like Theresa May might be moonlighting at IAG now.

  • Paul says:

    If that slide is/was real then it marks a new lowbfor the carrier. It’s crass and simply not funny.

    Perhaps they are positioning themselves to please Donald Trump if he becomes president.

    • Following from behind says:

      Totally agree. Can’t believe anyone would put such a thing on their presentation.

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

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