BA feels the heat from buyers
After a week the airline industry would like to forget, most executives probably wish they could jump on one of their planes and get away from it all.
Firstly, as ELP reported, Airbus announced ambitious plans to reduce costs to the tune of €5bn through a mix of procurement cut-backs and the outsourcing of production and aircraft assembly. British Airways CEO, Willie Walsh, then awoke to a letter from the Business Travel Coalition (BTC) expressing “profound concern” at reports BA would try to both impose new surcharges and withhold content from global distribution systems (GDS) in another cost-cutting exercise.
BA’s current system allows customers to purchase tickets and then make bookings for airlines, hotels and car rental in one place. However, in a move that has left the GDS incandescent with rage - the company are now rumoured to want 50% of their customers to buy directly through them, completely bypassing the GDS.
So will BA press ahead regardless of the BTC’s opposition? A spokesman for BA told Supplymanagement.com that a range of options were currently under consideration, but with the 60 companies who make up the BTC threatening to switch airlines if British Airways does implement these changes, and with BA’s current deal with GDSs expiring in the Spring, the company had better make up their mind soon.
With the airline industry facing an uncertain future, this particular muscle-flexing exercise by buyers could undoubtedly force BA to rethink their proposals.
Meanwhile, back at Airbus, 52,000 employees face an anxious wait to find out whether they have any part to play in helping the company resurrect itself. The plans have been announced, but whether they ever take-off is a different matter entirely.






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