BA puts Open Skies up for Sale

[T-Bird76]

From the Boyd Group.


Hot Flash - Monday, September 21, 2009

From The OK-We-Tried-It Department

British Airways has quietly put its Open Skies airline experiment on the sale block.

The concept was an all business-class airline, taking advantage of the allegedly huge nationality-transparent passenger potential from the EU to the US. Now down to flying just Paris to Newark and JFK, apparently the carrier isn't exactly burning a financial hole anywhere except in BA's pockets. This despite what appear to be incredible values - for example, a RT biz seat NYC-PAR for under $1,700, plus taxes and fees.

[mirrodie]

From The OK-We-Tried-It Department what the?

With such a price point, I would think it might work. Were loads that low and why?


NYCA, make a bid!

[moose135]

With such a price point, I would think it might work. Were loads that low and why?
Were the loads low, or were the yields low? At a low price point, maybe they weren't covering costs, and you can't make that up on volume.

[Hussman75]

Unfortunately, not all too surprising...

[Tom_Turner]

With such a price point, I would think it might work. Were loads that low and why?

Were the loads low, or were the yields low? At a low price point, maybe they weren't covering costs, and you can't make that up on volume.

If the loads weren't low, perhaps they needed a larger aircraft to make it work?

[Matt Molnar]

for example, a RT biz seat NYC-PAR for under $1,700, plus taxes and fees.
I saw $680 each way not too long ago, which is probably $1700 WITH tax. The planes must be pretty empty if they're selling so cheap.

If they can't make it work with the world renowned British Airways brand attached to it, it seriously just isn't going to work.