British Airways chief executive Rod Eddington says heavy losses in its short-haul business have been eliminated by "changing the perception" of the airline.
Speaking at BA's annual general meeting last week, Eddington said the carrier has reduced losses on its short-haul network from over £300 million ($560 million) to £60 million in four years. "We are now firmly back in the short-haul game," he says.
"Changing the perception was key to winning the hearts and minds of those customers who had switched to the no-frills airlines," says Eddington. "For the first time, we launched an aggressive price-led advertising campaign that promoted value for money and low lead-in fares on short-haul routes."
BA exceeded by more than a third the £650 million cost-savings target outlined in its Future Size and Shape programme to March 2004, but Eddington says there is more work to be done.
Eddington says its target to cut a further £450 million in costs by March 2005 is "on track", while talks with unions continue over plans to shed £300 million in employee costs.
Source: Flight International
