British Airways' CEO Robert Ayling Faces Criticism Amid Flight Purchase Plans

Strategic Insights -

Robert Ayling, chief executive of British Airways, is navigating challenges as the airline plans to buy new aircraft, including up to 188 narrow-bodied Airbus planes. This move comes despite the airline's past preference for Boeing. Ayling's proposal for a new financing model, where manufacturers would own the aircraft, was met with disappointment from both Airbus and Boeing. The airline is also re-equipping its long-haul fleet with Boeing 777s and plans to retire older Boeing 747s. Ayling's comments on air traffic control and the airline's punctuality are noteworthy, as he advocates for European airspace to be controlled by privatised authorities, not a single authority.

Key Takeaways:

  • British Airways ordered up to 188 narrow-bodied Airbus aircraft, marking a significant shift from its past preference for Boeing.
  • Robert Ayling, CEO of British Airways, expressed disappointment with Airbus and Boeing's response to his proposal for a new financing model, where manufacturers would own the aircraft.
  • The airline is re-equipping its long-haul fleet with Boeing 777s and plans to retire older Boeing 747s by 2002.
  • Ayling advocates for European airspace to be controlled by privatised authorities, rather than a single authority, citing the need for performance comparison.
  • British Airways plans to add 25 Boeing 777s to its fleet by 2002 and is considering buying the A3XX, a 550-seat aircraft, for long-haul journeys.
  • Ayling believes airlines should focus on business class passengers, rather than low-paying holidaymakers, and is reducing the average size of aircraft used on long-haul routes.

Statistics:

  • The airline's 1998-9 pre-tax fall was 61.2 per cent, reaching £225m.
  • British Airways plans to add 25 Boeing 777s to its fleet by 2002.
  • The 777s will contribute to nearly half of BA's long-haul fleet within three years, having fewer seats than the retired Boeing 747s.
  • Lufthansa's chairman, Jurgen Weber, estimates that over 30 per cent of his airline's delays are caused by air traffic control problems.

Sources:

  • Financial Times Limited 1999. All Rights Reserved.