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 President of Argentina adopts Jewish godson to 'stop him turning into a werewolf'
- 2 Doctors remove 80 teeth from boy's jaw
- 3 The 'Black Museum': After 150 years, public set to see exhibits from police’s grisly crime museum
- 4 Sir Winston Churchill’s family begged him not to convert to Islam, letter reveals
- 5 Naomi Wolf reacts to Isis 'conspiracy theories' critism after she questions whether beheading videos are real
President of Argentina adopts Jewish godson to 'stop him turning into a werewolf'
The 'Black Museum': After 150 years, public set to see exhibits from police’s grisly crime museum
Downfall of Dustin 'Screech' Diamond, the 'Saved By The Bell' star charged with bar stabbing
Syrian teenager Usaid Barho reveals how he escaped from Isis using a suicide vest
Sir Winston Churchill’s family begged him not to convert to Islam, letter reveals
Millions of Britons struggling to feed themselves and facing malnourishment
British actor Idris Elba cannot star as James Bond because he is black, says shock jock Rush Limbaugh
Germany anti-Islam protests: 17,000 march on Dresden against 'Islamification of the West'
Ukip member gets into Christmas spirit with Union Flag plea to Santa 'for our country back'
Nigel Farage: Ukip leader named 'Briton of the year' by The Times
Douglas Carswell tells Ukip to stop blaming foreigners as youth poll shows Nigel Farage is even less popular than Nick Clegg
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