British Airways has always been the target of dumping customers – the service standards, the technology that is outdated, and more recently, the controversial changes in its loyalty program are not rare.
However, the transportation company, which is part of the FTSE 100, listed on Airlines (IAG), is on its way to announce a large rise in its wealth next month. Financial analysts expect annual profits before interest and taxes that exceed 4 billion euros (3.4 billion pounds) for 2024, with the help of 45 million passengers who are expected to travel with BA, a number close to his record of 47.7 million in 2019.
At the BA recovery center is CEO Sean Doyle. Its investment plan, which costs 7 billion pounds, aimed at reforming the financial affairs of the airline, service and reliability. Half of this amount goes to get new aircraft, including Seven Boeing 787 Dreamlines and 18 777x Jets from Seattle Planemaker, although the last face production. Another 2.1 billion euros is allocated to improve information technology and engineering promotions, while 1.4 billion euros will update a distinct cabin.
This is that the distinguished sector is that Dowle intends to grow, and that is for the previous philosophy of the Lord (John) King of “In Daad or None”. The plan is to add 20 percent of the excellent economy seats, 15 percent of business seats, and 10 percent of the first -class additional spaces over the coming years, while the vast Airbus A380 has been assigned to its renewal, which will enhance the distinguished capacity from 60 percent to 72 percent.
BA's focus on the upper market is not surprising, given the position of London as the world's largest center for the wonderful international travel. Broadcasting companies are also increasing, with estimates from CITI that conferences in the United States once again paint large numbers of European businessmen travelers.
However, it is not only related to expansion. Doyle is betting on cost discipline, as BA introduces “zero -based budget”. Each element of spending must be justified annually from zero-point-a method that can result from savings, but the risks that distract employees from daily operations. BA aims to save 500 million pounds by 2027 through this approach, although the previous adopters, including Kraft Heinz, have seen the defects of the costs of reducing the costs implemented badly.
One of the largest lightning bars for criticism is the BA's loyalty program, which recently announced a transformation of giving points based on the cost of reservation or holidays instead of separation and destination. This led to a violent reaction – most often from the head of the Great Western Mark Hopwood, who warned that he might come up with bad opposite results by failing to estimate the strength of the feelings of travelers.
Doyle is still not affected by screaming, and insists that changes bring mere fairness to a system that has not evolved in line with the expectations of modern passengers. The challenge of converting the perceptions of BA information systems, which has been afflicted with failure, is also faced, including an unforgettable failure of 2017 when the contractor made a plug accidentally at the Boad deca center.
I have advanced not noticeable, and has advanced to a complete redevelopment of the BA, which led to the disposal of old applications in favor of a cloud -based system in partnership with Amazon Web Services. This step aims to prevent further collapse, and has reached its climax on the web and application that will be released soon, which is a “complete leap in terms of we today.”
The airline's problems are partially seen as the legacy of the decisions taken before the epidemic. Álex Cruz, a downtine predecessor, was accused of reducing costs significantly, which led to a lack of investment in information technology, fleet promotions and product quality. The impact has doubled through the UK's approach to support for recruitment during Covid, which witnessed that BA inspected many experienced employees.
However, according to industrial monitors such as Andrew Lobbenberg in Barclays, the main standards of BA, such as the results of net promoters, are steadily improving, even if there is a big room for progress. Robert Boyle, the former director of the strategic airline, notes that the BA application – which is a pioneer in the market – is lagging behind its competitors, and the opposite of this trend will be necessary to maintain growth and avoid disturbing passengers.
Meanwhile, the opposite winds of the macroeconomic economy are still a concern. Wars and diplomatic tensions can raise fuel costs, aborted airline transfers, and create chaos on time schedules. The engine problems, especially those that include the TRENT Rolls-Royce series, have already a Bachelor's degree to reduce regular services, including a long-term road to Kuwait. Such disorders can be very frustrated for a carrier company that finally exceeds prenatal performance.
From Doyle's point of view, the culture of the most dynamic companies will help reduce future shocks. “We are a more flexible, adaptive and quick -response organization than we were three or four years ago,” he says.
For all complaints – from the renovations of loyalty to the service of hiccups – the growing passenger numbers and the financial gains indicate that a downty plan may bear fruit. It is expected that the set of the following results for the airline will enhance, and then soon, even if it belongs to the hearts and minds of repeated, repeated leaflets, may be a slightly longer path.
Comments are closed, but trackbacks and pingbacks are open.