British Airways at 90 – will they reach 100?

UK airline British Airways has reached its 90th birthday this week but the situation they find themselves in now is far removed from the prestigious era they experienced in the past.

When you think of British Airways you probably think of Concorde – the world’s first supersonic commercial aircraft – or their flashy, mid 90s adverts with operatic singing and artistic imagery. What you don’t think of is an airline suffering heavily over the last 10 years from high running costs and non-profitable routes, heading into even more dire straits as the global recession hits.

But that is exactly the situation BA find themselves in now. Budget airlines like Ryanair and EasyJet harm the shorter-haul market while rising airport fees and fuel costs harm the more profitable long-haul market. BA tends to rely on business passengers crossing the Atlantic for a good portion of its profits and with the economies of the US and UK being hit hard, fewer of these passengers are travelling than ever before.

Recently the airline had to ask staff to take massive pay cuts or work for free – something which has caused long, painful negotiations between the company and it’s workforce. In an effort to compete in the short-haul market, all meals except breakfasts have been canned to cut costs.

So will BA reach 100? No-one will truly know, but after losing nearly £150m in 3 months earlier this year, things are looking ever more doubtful.

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