Transportation Industry

Company Watch - British Airways

AirGuide Business, July 21, 2008

7/21/2008

British Airways is launching an advertising campaign to try to rescue the reputation of Terminal 5, its new home at Heathrow Airport, which opened to chaotic scenes of lost baggage and canceled flights in March. Walsh said the performance of the terminal had "very significantly improved", and he was receiving letters and emails on a daily basis praising the GBP4.3 billion pound (USD$8.6 billion) facility. A union leader told a parliamentary committee last week an average of 932 bags a day were still not connecting with passengers transferring at Terminal Five. 7/15/2008

British Airways said it expected to reduce capacity by 3 to 5 percent in its winter season. British Air chairman Martin Broughton said the airline is looking at extra fuel costs this year of more than 1 billion pounds, which is more than last year's record profit of 875 million pounds. 7/15/2008

British Airways said that it would struggle to avoid losing money this year as its annual fuel bill rises beyond an earlier forecast of [pounds sterling]3 billion, or $6 billion. British Airways said that it would struggle to avoid losing money this year as its annual fuel bill rises beyond an earlier forecast of [pounds sterling]3 billion, or $6 billion. British Airways fell as much as 5.7 percent in London trading after Chairman Martin Broughton said breaking even in the 12 months through March will be a "considerable achievement" and that the London-based airline must "make changes" to report a profit. 7/15/2008

British Airways will cut flights next winter due to the rising cost of fuel which is threatening to wipe out their profits this year, the two companies said on Tuesday. British Airchairman Martin Broughton said the airline is looking at extra fuel costs this year of more than GBP1 billion pounds (USD$2 billion), which is more than last year's record profit of GBP875 million. The British flag carrier will cut flight frequencies but it will not cut any long-haul routes, Chief Executive Willie Walsh told reporters at a press conference after the meeting. But he added there could be "one or two" short-haul suspensions in the plan, which will be finalized in the next fortnight. 7/15/2008

Chorion, the UK IP firm behind Noddy and Paddington Bear, has launched a new division to build consumer and corporate brands through its classic characters, and has already signed up British Airways. Chorion Brand Partners will create strategic partnerships with third-party blue-chip firms, enabling them to enhance their brand image through alignment with iconic Chorion brands, which also include Mr Men and Little Miss, and Beatrix Potter. The first deal to be secured by the division is to establish Paddington Bear as the face of British Airways children's travel. From October, all BA flights in and out of the UK will distribute Paddington-branded travel packs for junior Skyflyers aged three to five. 7/16/2008

Ryanair and British Airways will cut flights next winter due to the rising cost of fuel which is threatening to wipe out their profits this year, the two companies said on Tuesday. Ryanair, Europe's biggest budget airline, said it would cut weekly flights at Dublin by 12 percent this winter and it would also cut some at Stansted in the UK. 7/15/2008

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