Company Of the Week
Sunday 30 August 1998
BA placed a firm order for only 16 of Boeing's 777 long-range planes, with an option for 16 more. Airbus will supply 188 of its A320 short-haul jets, replacing older Boeing 737s in the UK. airline's European network. It got 59 orders.
BA said it won't buy any more Boeing 747s for its long-range routes for at least a decade, focusing instead on smaller aircraft such as the 777 and the 767. Airline stocks have dropped in recent weeks, on concern that recessions in Asia could end the industry's four-year boom. Airlines are slashing services there and using planes elsewhere, leading to capacity growth that outpaces demand.
In an indication of the scale of discounts offered to British Airways, the airline said its net cost for the 75 firm orders will be about pounds 1.4bn, compared with a list price of pounds 3bn.
BA will use the Airbus aircraft to replace older, larger Boeing 737s in Europe, where it needs smaller planes to cope with deregulation of routes. The deregulation is bringing a crop of low-cost start-ups, and BA plans to counter them by attracting lucrative business passengers who need frequent flights. "We don't want to carry as many low-paying passengers," said Bob Ayling, BA's chief executive.
The move toward 777s fits with BA's plans to unite its flights and fares across the Atlantic with American Airlines, another big 777 user. The US will only approve the alliance this autumn if UK authorities open London's Heathrow airport to new competitors and drop the current strict limits on the number of flights for each carrier.
- 1 Crystal meth addict 'gouged out his eyes and ate them' while high on drug, Australian MP claims
- 2 Saudi Arabia 'seeking to head United Nations Human Rights Council'
- 3 Group of students refused entry to Leicester nightclub 'because they are black'
- 4 Irish people are travelling home from all over the world so they can vote to legalise gay marriage
- 5 Arsenal fan asks the Queen for tickets to the FA Cup final - gets a reply from Buckingham Palace
Ireland's same-sex marriage vote: Dublin in party mood ahead of historic poll result
Saudi Arabia 'seeking to head United Nations Human Rights Council'
The ten most unequal developed countries in the world
Toddler throws a tantrum at the White House – in front of Barack Obama
Irish people are travelling home from all over the world so they can vote to legalise gay marriage
As a white man, I'm surprised more women aren't tweeting the hashtag #KillAllWhiteMen
Scotland may have to leave the EU even if it votes to stay in, David Cameron confirms
Report finds that Britain's wages are the most unequal in Europe
The day that Britain resigned as a global power
Almost a third of school pupils believe 'Muslims are taking over our country', study claims
Gay marriage 'Bert and Ernie' cake bakery found guilty of discrimination in Northern Ireland
iJobs Money & Business
£40-50K: Guru Careers: We are seeking an experienced Software / C# Developer w...
£45,000 - £55,000: Neil Pavier: Are you looking for your next opportunity for ...
£45,000 - £55,000: Sheridan Maine: Are you a newly qualified ACA/ACCA/ACMA qua...
£50,000 - £60,000: Laura Norton: Are you looking for an opportunity within a w...