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British Airways is a ‘2 out of 10’ airline, says its biggest shareholder

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British Airways is a ‘2 out of 10’ airline, said a senior airline executive in a Sunday Times interview yesterday.

The amusing thing is that the company behind the man behind the comment – Akbar Al Baker, CEO of Qatar Airways – owns 25% of BA’s parent company, IAG. It’s the parenting equivalent of telling your step-children they’re ugly.

I should say, before I go on, that I have met Akbar on a few occasions and like him. He is an interesting character though. Of all the titled people I know, he is the only one that I always feel expects to be called by their title (‘His Excellency’) and would be offended otherwise. I have also visited the Qatar Airways head office in Doha in the past.

You can read Akbar’s full rant on The Times website here (paywall). If you have American Express Business Platinum, register for your free digital subscription on the Amex website here.

The interview covered a range of topics, but I focus on just two areas here. The first is his opinion on British Airways, and the second is his opinion on premium economy seating.

To quote:

“I’m very direct,” he says. “I don’t care what people think. People need to hear frank opinions.”

Akbar Al Baker on British Airways

“BA management “lost focus”, he says. Instead of making it “an airline Britain and the British people would be proud of”, the leadership reduced it “to a low-cost carrier — a level I never expected BA to be”. He explains: “British Airways is the flag carrier of the UK. You remember the motto? ‘To fly, to serve’. That was not any more the motto of the company. It was only on a billboard.” When Qatar Airways decided to invest, “we wanted BA to get the glitter back. We wanted an airline that doesn’t sell food but serves food.”

How many marks out of ten would he give BA in recent years? “Two.”

Al Baker hasn’t given up hope of still being proud of his step-child. Financially, of course, IAG has always delivered a better return for the Qatari Government than Qatar Airways itself, but you can have money without pride.

We go on ….

He praises Cruz’s replacement, Sean Doyle, one of whose first moves was to bring back free food and drink in short-haul economy. “He’s a very good leader. He has my confidence … British Airways will come back to its old glory.”

Akbar Al Baker on premium economy

We recently covered a speech by Tim Clark, the CEO of Emirates, where he admitted that not introducing premium economy earlier had been an expensive mistake. Emirates was seeing strong demand and a big price premium on the routes that have it.

I already knew from speeches by Al Baker in the past (I was at the unveiling of their new economy seat in 2019 – see photo above of Al Baker, second right, with a footballer I believe) that he feels differently:

But one thing he will not be doing is hiring cabin crew to work in a new premium economy cabin — the class between economy and business that Emirates has introduced, joining BA and Virgin Atlantic. He thinks the 25 per cent extra that airlines charge for premium economy is a rip-off. “It’s the most uncomfortable seat. You can’t rest your feet on the floor. And they give you the same meal, the same bottle of wine, or whatever they give in economy.”

Al Baker believes that if you have the best economy seat on the market, you don’t need premium economy.

On this one, I don’t agree. This is partly because there is ample evidence from other airlines that premium economy can be hugely profitable.

It is also, to my mind, simple logic. You could offer me caviar for lunch and Bollinger on boarding, but it still won’t get me to squeeze my 6’2′ frame into an economy seat. It’s worth noting that Al Baker is a very slim man of average height.

You can read more on The Times website here if you can get around the paywall.

PS. Here is a fascinating fact from the article. As we have covered on Head for Points, the ‘blockade’ against Qatar by Saudia Arabia, the UAE and others has recently ended. This means that Qatar Airways aircraft can fly over Saudi airspace again, avoiding a lengthy detour. Al Baker believes that, in a normal flying year, this will save an astonishing $1.2 billion in costs, primarily fuel.


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Comments (100)

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

  • JAXBA says:

    While His Excellency may have a point about the previous management, he’s supposed to be BA’s friend…

    I thought he got on well with Willie Walsh? Were Al Baker’s comments aimed at Cruz, or Walsh as well?

    • southlondonphil says:

      Notwithstanding what happened to BA’s reputation under Walsh’s tenure, I suspect he and al Baker would in fact get on, given each has a propensity for controversial ‘click-baity’ statements about the airline industry!

    • Paul says:

      A critical friend is probably the best sort. He’s right though it’s not a great proposition for passengers and BA have exploited (abused) their dominance at LHR and the protection it gets from being there. Have ing just done a round trip to Glasgow in recent days there is no doubt that it’s monopoly on U.K. domestic service is being being exploited and not U.K. the benefit of passengers

  • KBuffett says:

    Some comments yesterday mentioned that it’s easy to say such things when you don’t have to worry whether the airline is profitable and state owned bank privately owned etc.

    I’m a little too young to remember, but isn’t this the same fashion in which BA started, did they buy Concordes for £1 each and probably ‘inherited’ most of their slots?

  • Chris Heyes says:

    Rob Although i agree with Al Baker that Premium Economy is a waste. When you could book Business (Club) We book club even on European trips
    I wonder how many people book it just because of the name Premium ?
    I Cant comment on how much better it is than Economy because I’ve never travelled Premium Economy.
    Can only be better than Economy though but how much better ?
    I’ve only travelled Economy once and said it wont happen again
    But that might be false judgement because only travel British Airways,
    but not being a travel blogger I’m not going to travel on another airline to compare.
    I do use other airlines to connect to our open jaw flights, but don’t count them as they are only 30min/1 hourish flights on very small planes
    Example Great Lakes Airlines 9 seater, Condour Airlines 30 seater, plus AA

    • JAXBA says:

      Premium economy is known to have a larger seat, but doesn’t have the lie flat bed or the other perks of business class. It’s aimed at those who would usually fly economy but are willing to spend a little more for extra comfort, but not as much as business class would cost. If the demand is there, and it’s profitable for BA, how is it a waste?

      I also really don’t like flying economy anymore, but I can’t really pay for business class unless using points. Premium economy is likely to be what I would settle on paying for, and so the airline gets more money than I would have spent in economy, and I get the extra comfort.

      • Chris Heyes says:

        JAXBA I Don’t mean a waste for BA I mean a waste for the customer extra money or Avios when Business is an excellent service
        JAXBA, You don’t need to pay for Business use Avios ?
        We never pay cash “AT ALL” for our flights its very easy to accumulate enough Avios for Business, its not that much more than Economy especially to Europe
        ok you still have taxes/charges but that’s only £50
        Yes a lot more long haul, but we only do 1 long haul every 1 or 2 years most of our flights these days are to Europe, plus we are away for 3/4 weeks at a time more economical than back and forth every few months

        • TGLoyalty says:

          I disagree PE is perfectly fine for any day flight

          • Chris Heyes says:

            TGLoyalty Yes we use 241s Every long haul flight, although there is always 3 of us traveling.
            We also use Avios and 241 short haul as well regardless of cash price we never look at (I’m sure some on here would say sometimes cash is better value)
            But it really doesn’t matter to us 3 of us (adults) collect Avios, MR
            Never been short of Avios, always been easy to come by if you have the imagination to accumulate
            Must admit Tesco was a big help in that respect especially when able to fill a fleet of vans up “every week” at a Tesco petrol Station for 4/5 years hitting Tescos limit on points every year with my ClubCard and Partners
            that was a very good legal scam whilst it lasted
            I was called into question for it, but Tesco decided I wasn’t actually doing anything wrong (would have cost them a lot of business if they had decided otherwise) lol

          • TGLoyalty says:

            A unique circumstance but you’re still giving up other genuine 3x opps to redeem for avios you’re even giving up 0.8p of shipping at sainsburys for flights..

            if you were to value avios a 0.8-1p each you really should look at the cash price to see if its actually worth it!

          • Chris Heyes says:

            TGLoyalty Your missing the point to us Avios is cash the value of it to us is irrelevant
            Some may work out if getting a good deal or a better price and have spread sheets to look at like Rob has (sorry Rob but I just laugh)
            We have enough Avios, right were do we want to go right book it
            For us its that simple. use 241s because we have them
            I Could tell you were we are going in 2022.2023,2024 not the Hotels although could tell you them for 2022, 2023
            Avios isn’t the problem “age is” at 74 this year

          • TGLoyalty says:

            You’re giving up real cash in exchange for those “free” avios

            1.25% on a ca$h back card, money back via portals or 0.8p off on your food shop at sainsburys (we all need to eat)

            of course if you are points rich, cash poor and there isn’t Sainsbury’s for miles then your value for an avios might be lower 0.5p but the points vs cash price still isn’t irrelevant.

      • Michael C says:

        @ jaxba totally agree. I was just pricing a short US East Coast trip for early Sept. for three of us: Premium = GBP 2100, Club was 4500: I personally can’t justify that difference on a comparatively short trip. Or rather, I could, but would rather just use the difference on a great place to stay & spends!

        • Chris Heyes says:

          Michael C Yes but what would it cost using Avios only (plus Taxes/charges)
          As I said we never pay cash for flights, in fact we never even look at cash prices
          Just look how much is it in Avios, ok have we enough Avios, “Book it”
          Over the years we have generated Avios for fun, ok slowed down now for various reasons
          But still enough until 2024/5

          • Andrew says:

            But now we have a clear value of Avios (0.8p) – we can see exactly what the flights are costing us, even when using Avios.

          • JAXBA says:

            I do use Avios for Club or even First, and I use Chase Companion vouchers, but I’m not always just going to the UK/Europe – my last two longhaul redemptions were both USA to South Africa, in Club, which takes a good chunk of points. When I wanted to visit the UK on a different trip I had a choice of using points I had earmarked for a ZA trip, or paying cash. If I used points for the UK trip, I knew I wouldn’t have had enough by the time I needed to book ZA for that to still be in Club.

            I do pretty well with Avios from Chase, and the vouchers, and the occasional application for a new Avios credit card, but it can sometimes take me 2-3 years to save enough Avios for the ZA type trips in Club. Any travel in between for me usually has to be with cash, and that’s when World Traveller Plus is attractive to us.

          • Michael C says:

            Chris, I think a good combo is pay for PE and upgrade with Avios to Club.
            Of course, everyone has different travel needs!!

          • Mark says:

            Actually £4,500 for three return to the US East Cost in Club World is relatively good value – presumably a sale price?

            Using Avios, even applying a valuation of 0.8p each as Andrew suggests, comes out at over £4,000 by the time you’ve added in the substantial taxes and fees. Yes, you can bring that down a lot with 2for1 vouchers, though Chris didn’t mention he used those, and they still have to be earned.

            I still value Avios at 1p/each (as such I wouldn’t convert them to Nectar points unless to use in something like the double up scheme). On that basis, an Avios redemption without a voucher costs more than the cash fare in this case,

          • TGLoyalty says:

            Chris unless you get all your avios for free (portals and credit card spends isn’t free) then you should seriously compare the cash cost of the flight vs the points/taxes

            very rare its actually worth it unless you have a 2-4-1 or you travel holiday peaks

      • GM says:

        I’ve done Virgin Premium repeatedly. Less fun on the A350 because it’s 2-4-2 and feels it, but the seat is bigger, the food is better and plated, you have expedited luggage delivery and more of it, more crew, snacks, amenity kit, smaller cabin etc. For me it’s worth it for a more pleasant transatlantic experience. Because I’m usually paying cash. BA maybe not so much appeal for me – doesn’t seem to have same range of perks.
        But definitely see why it exists and people want to use it.

  • John says:

    Perhaps “His Excellency” should take a look at the case of the Captain he is holding hostage in Doha?

  • AspirationalFlyer says:

    Interesting debate on Premium Economy.
    More choice is always a good thing. As is the additional space PE offers.
    However, I do agree that the large premium that can often be charged is not worth it. Would like to try the Emirates PE product at some point.

  • SamG says:

    It baffles me how anyone can form a strong opinion on something they’ve never experienced.

    • Chris Heyes says:

      SamG I’ve “never experienced racism” Does that preclude having a strong opinion” either way
      Rob/Rhys No offence meant or intended
      As I assume moderation lol
      Just answering SamG

  • Andrew says:

    Good to see him calling out BA for its race to the bottom under Cruz. Hopefully under the new leadership things can turn around – I would certainly like to see BA being even half as good as QR.

  • Mike White says:

    Al Baker is correct. BA decided to compete with The LCCs rather tham being the airline of choice. They sould remain full service and do a better job of highlighting their differences. They are not as good at being low-cost as RYR and EZY so will not win that fight. Fight battles you can win. Ref Prem Y, I don’t agree with Al Baker. Customers want choice. Prem Y is almost how it used to be 30 years ago. Y is now the budget option amd should be minimal. However, the death of genuone biz class in Europe is what most bothers me. There’s a gap for a main-liner to do it.

    • Mike White says:

      ….and whats wrong with phones that they can’t provide automatic spelling corrections?

      • QwertyKnowsBest says:

        Ooh, I don’t know, my smell checker is not reliable.

      • Nobby says:

        If you’re going to be picky, just like ‘can’t’, ‘what’s’ also has an apostrophe.

    • Crafty says:

      “Economy is now the budget option”

      Hmm…

    • Lady London says:

      I think BA’s offering competes well with the low-costs. BA’s airports happen to be convenient for me. I appreciate BA does not serve much of the UK geographically.

      They will be insane if they don’t look seriously at flying or codesharing out of SOU as a lot of business and decent jobs has moved to that area/the Bristol corridor. It would kerp feeder traffic, let the low-costs know BA is still to be reckoned with, and if the first flight on any ticket is BA or BA codeshare then BA keeps most of the revenue for the whole ticket as well as retaining feeds to longhaul onto their flights.

      Pricewise on shorthaul BA does compete with the lowcosts provided mostly that you can book ahead.

      • Nick says:

        @LL where do you get the idea that the first flight assigns the revenue? Total nonsense. There are several ways of allocating revenue based on the individual agreements between airlines, but none assigns anything specifically to an airline just because it comes first in a sequence.

        • Lady London says:

          Just remembering from when I worked in a travel agency @Nick. BA gave us huge incentives to make first flight on any ticket a BA one and it was explained to me that was the reason.

          I am sure cartel-like arrangements like the transatlantic alliance and other agreements between airlines having grown over the years, may have meant more variation but that was how it worked and I believe it came from IATA. It does make sense that if a ticket is issued on your ticket stock you’d get more of the revenue, no?

          • Nick says:

            Ah ok, things have moved on a lot since then and most airlines have agreements that supersede that. The most common types are straight pro-ration (what it says on the tin) and SPAs (fixed rates), but ‘first carrier’ has gone as it incentivises weird itineraries. Interline service fees and codeshare commissions still exist, but it doesn’t give a whole lot of benefit to a ticketing carrier. Mainly the benefit for them is cashflow (as they hold the money until you fly).

            JVs have changed the game again of course, with their own special rules.

      • Bagoly says:

        feeder traffic from SOU?
        I confess I don’t understand that.
        Surely you are not envisaging their flying SOU-LHR! 🙂

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