BA reports large jump in profits - up 45% to £883M

Gollom

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http://news.bbc.co.uk/1/hi/business/7404085.stm

Is it just me or does that level seem a touch out of place whilst they are raising passenger costs? At least Willie Walsh has forgone his £700K bonus given the T5 fiasco. Guess he will need to downsize then? :rolleyes:

Don't get me wrong - I fully support people making a fantastic living. But there are limits surely? :crazy:
 

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The reality of the situation is that Willie Walsh's position would have been completely untenable had he not waived his contractual bonus. This way he lives to fight another day :rolleyes:
 

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http://news.bbc.co.uk/1/hi/business/7404085.stm

Is it just me or does that level seem a touch out of place whilst they are raising passenger costs?
It's a public company - it's legally obliged to put the interests of its shareholders (rather than its customers) first.

The bonus thing is pre-emptive by Walsh. Now whenever he's attacked about T5 he has a response. With global recession and rising fuel costs, this year could be much tougher for BA.
 

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Well done BA and any airline that manages to make money in this environment. It's a business that no sane person would enter and I take my hat off to them. Compare this to the fiasco of airlines that have never, ever made any money or only manage to survive through surreptitious government handouts - which is most airlines.
Something went seriously wrong with T5, not helped by the media but that is now water under the bridge and hopefully Willy has genuinely earned his money. It won't get any easier for airlines and if he can keep up this performance has has done well.
 

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I'd be interested to find out how much is down to "fuel surcharges"
 

Mudster

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As usual, a British Company does well, Pays astonishing amounts of money into the economy in corporation taxes and Employers National insurance Contributions and the media and public vilify it.

What a wonderful country we live in.....is it jealousy? Envy? I've never quite worked it out.......
 

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I'd be interested to find out how much is down to "fuel surcharges"
Why?
What would it indicate? Maybe that if they hadn't used fuel surcharges they would be in the red? Whose interest would that serve?
Or perhaps it might indicate a business run on such narrow margins, that provides a fantastic service to millions of people, who, if the airline was not so competitive would not be able to conduct their travel, that nevertheless manages to find ways to stay in profit and not take anything off the taxpayer unlike in many other countries.
It is very easy to find fault but when many airlines are failing and many have never ever made a penny of profit and have lived off the taxpayer, I cannot understand why people are moaning about a bit of success.
 

scumbag

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BA buy new aircraft, and sell them on after 5 years or so. This means they have lower maintainence bills. It also means they can keep a decent residual value in the aircraft. Some of this is shown in the profit.

They also have a lot of partner carrires now. They pay BA for the privilige of using the BA brand. BA just oversees the carrier. Cheap and quick way to make money, without the financial risk.

BA do run a proper airline, unlike these so called "Low cost" outfits, who run a flying bus service.

I am not sure the accounting procedure, but I bet they only see about 5% of that figure in reality.

Still, BA are only doing what the other airlines do when showing the profit. Ity kind of puts into the shade the likes of Ryanscare, and EasyCancelled.

If you compare BA with Virgin, you kind of get an idea of well run airlines, and realistic operating costs, size for size.

Still, I am in the camp of "Well done" to anyone who make any profit when running a business no matter how large.


Just for the record, we are paying out £50k a month. I banked £800 last week. You can now see why I have no hair!:eek:
 

janner

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BA don't have a monopoly and because of the nature of their business they compete in a global market. Well done BA for making a decent profit.

I have more of a problem with this part of the story "its pilots have threatened to strike over the launch of a new subsidiary". If you are a pilot and you don't like the pay or terms then go work for another airline rather than try and cripple the one you're with!
 

scumbag

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I think I would suggest that Pilots announce their intention to strike over anything, bit like teachers and doctors really.

However, you will find that the management core that deal with the pilots are indeed useless. They will need to get someone to listen and the only way to do so is to announce a strike. Then the real decision people get involved.

Its a blunt intrument, bit it can be effective, if you only use it rarely.

We had to do so earlier this year. It had the desired effect.

Trouble with idiot unions is, if they see that it works, they think they can use it everytime.

I doubt whether the issues affecting them will actually result in a strike. And it certainly won't criple the company. There are too many non union pilots.
 

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