Chris Jasper/LONDON Andrew Doyle/MUNICH
British Airways plans to replace Boeing 757s operating from its London Heathrow hub with smaller Boeing 737s and possibly Airbus A320s as part of a strategy to tackle its crisis of falling yields on short-haul routes.
The move represents a U-turn in BA's strategy at Heathrow, with previous plans having called for the 757 to be the carrier's smallest aircraft at the airport. By reducing capacity on certain European services, BA aims to increase the proportion of high yield seats on offer, and at the same time ease growing congestion problems hitting its Heathrow services.
BA operates 51 757-200s from Heathrow. Although plans call for a reduction of 10 aircraft, sources suggest at least 18 could go.
The aircraft will be replaced by 737-400s transferred from BA's European Operations Gatwick (EOG) division at London Gatwick when the airline's new Airbus A319s and A320s arrive. The 757 retirements will begin after Airbus deliveries start to EOG in 2001.
The replacement scheme involves a net reduction of about 60 seats per aircraft, or 30%. BA's 757s have a capacity of around 200 passengers. BA may use the switch to a smaller aircraft to launch "all business" seating on some routes.
"As part of our new fleet strategy, designed to curb growth rate and maximise yields, some Boeing 757s will be replaced by smaller aircraft in the 140-seat category," the airline says. BA has also detailed the fleet strategy plans in an internal briefing document, saying that one of four planned steps will see the airline "replace a large number of 757 aircraft by buying smaller A320s and A319s".
BA has made much of its plans to rein in capacity on long-haul routes (traditionally its biggest profit earner), with Boeing 777 orders being substituted for 747-400s.
Strategy director David Spurlock is understood to have indicated that the new long-haul strategy will have potentially huge implications for the short-haul network, if only because that strategy cuts back on long-haul/short-haul transfer traffic through its hubs.
Whether the substitution of 737s for 757s represents a half-way house before their full withdrawal in favour of A320 family aircraft is unclear. Sources say that an "internal debate" is taking place, with some favouring the early introduction of A320s at Heathrow. BA has 59 A319/A320s on order, with 129 options, and some of these could be taken as the 190-seat A321 which is similar in size to the 757-200.
While the yield problem is undoubtedly a key driver in BA's new strategy, increasing pressures at Heathrow are also a factor, particularly continuing delays in building Terminal 5 for the airline.
Source: Flight International
