Question

In: Operations Management

why doesn't british airways focus on the corporate traveler, paying a premium price, and traveling one...

why doesn't british airways focus on the corporate traveler, paying a premium price, and traveling one od the transatlantic routes?

Solutions

Expert Solution

London is unlike any other city for aviation. It has six airports, two of these holding unique records for being the world’s busiest dual-runway airport (Heathrow) and the busiest single-runway airport (Gatwick).

This means slots are very limited, especially at Heathrow, which has always been considered the most premium airport in the UK.

While some regional and secondary airports have to entice carriers to fly there by waiving landing fees and coordinating marketing, Heathrow and Gatwick don’t need to do this because just about every long-haul airline in the world wants to (or already does) fly to London.

Similarly, British Airways doesn’t need to try to convince passengers to visit or transit their hub city like the “big three” Gulf carriers do, by offering class-leading products, free transit hotels, or city tours.

Holding such a large number of spaces permits British Airways to work a larger number of trips to and from London than some other airlines and this is immensely important for lucrative corporate travellers. Time is money in London and most corporate travellers would prefer to take a non-stop trip than sit around idly moving to a superior bearer with a superior item. Particularly for overnight departures from the US to London or from London to Asia, travellers would prefer to augment rest than transferring incidentally.

This course map is additionally convincing for London-based corporate records. British Airways is bound to have a non-stop trip to a greater number of goals corporate travellers fly than some other airline will.

British Airways is more likely to have a direct flight to more destinations corporate passengers fly than any other airline will.

It is only simpler for these organizations to arrange bulk discounts with British Airways than spreading them over each carrier that may fly a course.

There’s a certain nostalgia British people have for ‘British Airways’ where they remember the good old days where flying was glamorous and products and service luxurious and well-thought-out.

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