[updated:LAST EDITED ON 15-12-02 AT 10:07 AM (GMT)]From Times Online:
British Airwayshas begun work on a new “future size and shape” review that will lead to a revamp of its UK regional network.
Rod Eddington, chief executive, is understood to have asked managers of BA CitiExpress, a wholly-owned BA subsidiary and the largest regional airline in Europe, for a rethink of strategy and a cull of underperforming routes.
Company sources say the review is unlikely to lead to large numbers of job losses, but base and route closures are on the cards, as is the withdrawal of several aircraft types.
CitiExpress was created from the merger last year of four of BA’s wholly-owned franchise carriers: CityFlyer Express, Manx, British Regional, and Brymon. It operates 79 aircraft — a quarter of BA’s total fleet — and flies to 49 destinations in Britain and the Continent.
Internally, the review is being billed by BA executives as “future size and shape mark II” after Eddington’s original masterplan for the airline which was unveiled earlier this year.
Under the Eddington blueprint, BA aimed to cut costs by £650m a year by shedding 13,000 jobs, cutting unprofitable European and long-haul routes and slimming down its aircraft fleet. The plan has already had some success. BA made a £245m pre-tax profit in the first six months of this financial year, and its share price has recovered sufficiently to see it restored to the FTSE 100 group of elite companies.
The CitiExpress review will carry the same process into the regional network. It is thought that the company will concentrate on just two aircraft types, rather than the five currently operated.
BA managers are thought to favour an eventual move to an all-jet operation, with BA CitiExpress using only Avro RJ100s and Embraer 145s. Most of the turboprop fleet, which comprises Jetstream 41s, Dash 8-300s and ATP aircraft, would be retired or sold to small airlines, which would operate routes in co-operation with BA but not in BA colours.
The company yesterday declined to comment on the plan but confirmed that it was undertaking a review of the CitiExpress network.
Meanwhile, BA is studying an overhaul of its pricing policies as part of its continuing review of its short-haul network. The airline is studying whether long-haul passengers who transfer to short-haul flights are paying enough for the add-on flight.
Traditionally airlines have set the fare for the short flight at the same rate per mile as the long-haul flight — meaning, for example, that a long-haul passenger travelling from Sydney to Manchester via London can pay almost nothing for the final London-Manchester leg.
“We are doing a lot of work on this to see if it is distorting the results of our short-haul network by making us sell seats on short-haul routes too cheaply,” said one senior airline source.
Airline analysts say that one effect of the study could be to reduce the profits on BA’s flights to some leisure destinations, such as the Seychelles and the Bahamas.
The source said the pricing policy studies would not affect BA’s commitment to return its loss-making short-haul network to profit by March 2004.
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I like the idea of only two aircraft types being operated,although I am starting to fear for the Guernsey-Gatwick route once the ATR72s are withdrawn and a ‘cull of underperforming routes,’occurs.
Opinons?Another blow to the UKs regional airports?
By: Fokker - 17th December 2002 at 21:27
RE: Revamp at BA spreads to regional operations
As Dutchy I’am not that well informed about the history of flights to Britsh Regional Airports but I “like” Carl727’s point.
Within the Netherlands KLM served all regional airports at one point in history. Every now and than flights were looked at and skipped. After KLM leaving several times already new Regionals started operating those flights succesfully. When those regionals became to big though KLM took them over as they were becoming a thread. After a couple of years flights were stopped again and …… Is this something which happened in the UK as well?
By: carl727 - 17th December 2002 at 19:14
RE: Revamp at BA spreads to regional operations
what BA is doing now, appears very similar to what they did around the 70/80s dropping loads of regional route. At that time companies such as Dan-Air and British Midland stepped in. Its funny how things seem to repeat themselves.
By: Saab 2000 - 17th December 2002 at 16:40
RE: Revamp at BA spreads to regional operations
From Airwise:
British Airways is to overhaul its regional operation next year by slashing 21 routes and withdrawing services entirely from airports at two major centers, Leeds-Bradford and Cardiff.
In April, it is to begin flying from London City Airport for the first time, by launching three new routes to Frankfurt, Paris and Glasgow using regional jet aircraft.
The airline said today that is also planning a major boost to its Manchester flights, adding more capacity and three new routes. Details will be announced in the New Year.
The routes being dropped will go by the end of March 2003. London City services start April 1.
BA said the shake-up is part of its continuing strategy to simplify and strengthen its UK regional operation which is moving towards an all-jet fleet.
David Evans, British Airways general manager UK business, said: “The proposed withdrawal of all services from Cardiff and Leeds-Bradford has been a tough decision to take but it was crucial to underpin the rest of the operation as we move forward.”
Some of the routes being abandoned at Leeds-Bradford by BA are to be taken over by Eastern Airways.
By: Saab 2000 - 17th December 2002 at 16:30
RE: Revamp at BA spreads to regional operations
[updated:LAST EDITED ON 17-12-02 AT 04:33 PM (GMT)]These are the routes likely to be under the cull of BA:
Guernsey-Gatwick (Next October is the decision time)
Jersey-Southampton (Since BE got permission on the route)
Jersey-Cardiff (Bmibaby competition,plus BA’s continued pull out of CWL)
Jersey-Bristol
Newquay-Plymouth-Gatwick (Loss of Dash 8s,under performance on the route,FR at Newquay)
Citiexpress are also launching flights out of LCY.
By: EGNM - 17th December 2002 at 13:53
RE: Revamp at BA spreads to regional operations
🙁 – whats gonna end up of today??
LBA has had 3 underperforming routes: – IOM, SOU, ABZ transferred to Eastern to be run with the same J41 a/c
On the otherhand Dublin, Gatwick and Bristol – the formost 2 the highest performers in terms of pax numbers, are been dropped, but i can see good with a bit of luk.
Dublin and Gatwick i would say could be picked up – the Dublin i can see with bmi, LBAs biggest operator – either adding to the squadren of Emb 145s or maybee a F100 from mainline? BRS – hmmm best chance would be someone like FLYBE – Not really interested i think, with maybee an onwards to Guernsey, or Eastern, but not for a while 🙁
Well have to see!!
By: Ren Frew - 17th December 2002 at 11:09
RE: Revamp at BA spreads to regional operations
More news on this subject here…
By: Ren Frew - 17th December 2002 at 10:35
RE: Revamp at BA spreads to regional operations
Sounds like a return to the good old days of individual regional airlines along the lines of Loganair, Brymon, Manx etc. Personally I’d like to see these famous names returning to our airports and in their unique liveries. The corporate BA branding or should I say blanding of these airlines has gone on too long.
By: Ronalds_Way - 16th December 2002 at 20:58
RE: Revamp at BA spreads to regional operations
Local Manx newspaper today claims that early tomorrow (Tuesday)an announcement will be made by BA on route cuts.
QUOTE: “AIR passengers and staff are waiting with baited breath for news about a BA CitiExpress cull of under-performing regional routes”
Full story at
http://www.iomonline.co.im/fullstory.asp?storyid=1
By: Ronalds_Way - 16th December 2002 at 20:46
RE: Revamp at BA spreads to regional operations
Perhaps BA just wanted the London slots that BRAL owned?
Such as the LHR slot of ManxAirlines, that was quickly internally ‘stolen’ this summer for more profitable BA international use and Manx residents fobbed off with inferior LGW route?
By: Saab 2000 - 16th December 2002 at 16:59
RE: Revamp at BA spreads to regional operations
Is Rod Eddington not contradicting himself from an earlier statement mentioning that he did not want to create any new franchises, yet by the above information, we see that it somewhat implies he wants to create more franchise agreements?
By: mongu - 15th December 2002 at 23:47
RE: Revamp at BA spreads to regional operations
I’ve heard the same rumour.
I just can’t put much credence to it though. A new startup which flies two leased Beech 1900D’s and is currenctly openly competing with BA by virtue of the winning tactic of offering HIGHER fares. They must want the Euromanx marketing expertise!
By: EGNM - 15th December 2002 at 22:11
RE: Revamp at BA spreads to regional operations
through a e-mail list i am a member of it has been mentioned about Euromanx becoming one of these partner airlines – small but rapidly expanding? – views people??
By: mongu - 15th December 2002 at 21:39
RE: Revamp at BA spreads to regional operations
Running a regional airline which has high frequency services from small airports using little prop aircraft is a whole different ball game to what BA like to do.
It’s not even something you’ll make loads of money from, even if you are superb at running it.
I’m still not sure why BA got involved in this sort of thing in the first place!
By: wysiwyg - 15th December 2002 at 21:32
RE: Revamp at BA spreads to regional operations
I don’t think it’s a case of them being unable to, I think they don’t want to but are afraid of the backlash from admitting this.
By: mongu - 15th December 2002 at 20:14
RE: Revamp at BA spreads to regional operations
I suspect BA have actually realised thay aren’t able to manage all the regional ops, which is why they are getting rid of quite a few.
I think the likes of Eastern will become franchise airlines and pick a lot of it up.
By: wysiwyg - 15th December 2002 at 18:35
RE: Revamp at BA spreads to regional operations
BA have made a habit of destroying previously good companies. I only hope that any routes that get disposed of are given to new ventures rather than existing companies. I believe the regional market needs to get more competitive in order to serve the passenger better.
By: Saab 2000 - 15th December 2002 at 17:02
RE: Revamp at BA spreads to regional operations
CitiExpress has been a total disaster ever since it came about. The workers have been messed with and the morale and job satisfaction is now very low. The mismanagement of the company has taken former profitable companies of BRAL, Brymon, Manx and Cityflyer Express and turned them into a giant, which is now losing money.
The Cardiff base is slowly disappearing and so is Newcastle and as EGNM said, Leeds/Bradford because BA can’t handle them. For places like Plymouth, Newquay, Jersey and Guernsey, I dread to think what is going to happen. However, if BA start giving away routes, no doubt airlines who have the regional market at mind like Eastern will start jumping on the ex-aircraft and routes and no doubt new franchise carriers will emerge, which is very good news.
In the mean time, I still fear for the GCI route. BA is loosing the ATRs and the RJ100s are being relocated. The only other option is bringing the 737 like Jersey has, although I doubt this option will be likely. The same can probably be said for the IOM with BA.
By: EGNM - 15th December 2002 at 15:29
RE: Revamp at BA spreads to regional operations
New from the rumour boards people – the Leeds/Bradford BA Citiexpress is supposed to be been axed – the base has 4 J41s operation LBA-Dublin, Gatwick, Bristol, Aberdeen, Southampton and Isle of Man. Appartenly the a/c are to be stationed at other bases but that doesn’t make sense either – Gatwick, Isle of Man and Southampton yes but are the others to be dropped? – seems simple enough to me form them to keep to the single type LBA based operation and have them run in parrelel – plenty of crews about for the planes and the option to keep basic day to day spares on the field, which sadkly doesn’t seem to be happening, especialy since 3 of the routes have been opene din the last 18 months! – Dublin Mid 2001, Gatwick March 2002 and Bristol August 2002!
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By: mongu - 15th December 2002 at 15:16
RE: Revamp at BA spreads to regional operations
This could be good news actually. The esoteric bits of the operations (eg GCI and IOM ops) could be restored to independent franchise carriers or to new airlines totally independent of BA. With governmental pressure (which I know the IOM Government will use) the LHR links may even be restored.
Totally agree about reducing the excessive number of different types though. Dash 8-300, ATR-72, ATP….they all do the same job! They even have a mixed bag of BAe 146’s and Avro RJ’s.
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December 15, 2002 at 10:04 am