Chris Jasper/LONDON
British Airways is considering further changes to its fleet and route network in a renewed bid to cut costs in the wake of the collapse of merger talks with Dutch airline KLM. BA chief executive Rod Eddington also stresses the importance of working with the oneworld alliance, which was rocked by the talks.
"We will continue to pursue our strategy for addressing the losses realised by parts of our business, through changes to our fleet and network and by working with our established alliance and franchise partners," Eddington says.
BA adds that "every route and frequency flown" is being examined in terms of its contribution, "particularly where it involves using slots at capacity-constrained airports", and that fleet strategy is also being reviewed to ensure aircraft are deployed profitably. Director for investments and joint ventures Roger Maynard says BA will "be concentrating on solving the financial problems of our short-haul European network", with a strategy review likely to be completed in a matter of months.
The focus is likely to be on BA's EuroGatwick business, with job losses anticipated, though sources say the airline's entire European operation is under review.
Another key aim is to "maximise the benefits" of oneworld, BA says. That may mean rebuilding bridges with American Airlines, which had been alarmed by BA overtures to KLM ally Northwest Airlines.
Despite the failure of the KLM takeover, BA chairman Lord Marshall says it remains on the merger trail. "BA still believes there must be consolidation in the European airline industry," he says, "Europe is our backyard. We have always been a leading player in this market, and we will continue to look for opportunities to strengthen our position in it."
BA claims it was approached by other potential allies "within hours" of the collapse of the KLM talks on 21 September. Swissair now appears the most obvious ally for BA.
Source: Flight International
