Quote:
Originally Posted by Acey
We already know it's not a top performer if other cities are the metric; we didn't need them to say that. I can go look on the airplane and see nobody in J and tell you that. The question is, without 789 engine issues creating a shortage of frames to the point that they're wet leasing Skybusses from Qatar, would we be in this predicament? The answer is probably no.
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BA is a premium heavy airline, consequently they get 2/3rd of their revenue from Club World and World Traveler Plus cabins. Specific to the 788 cabin config BA sends to YYC, for the route to be profitable the following must be true:
- 60% of revenue comes from 28% of the seats located in the Club World (35seats) and World Traveler Plus (25 seats).
- 40% of the revenue comes from 72% of the seats in World Traveler (154 seats).
An empty Club World cabin guarantees that BA is losing money on the route, even if WT cabin is full and overflowing into the WT+ cabin.
The Europeans are willing to sustain losses on a route for much longer than North American airlines. BA's unwillingness to have seasonal TransAt routes is a sign of their willingness to sustain losses over the weaker season.
October 2016 is when the BA/WS codeshare was dropped. I believe the current BA seasonal drop is a culmination of a number of factors:
1. Inability to sell the premium cabins.
2. Loss of feed from WS codeshare
3. Competition in WT and WT+ markets from WS.
4. Current RR engine issues gave BA revenue controllers the reason to drop the route due to issues 1-3.
The 5th reason, BA historically flew a large number of pax YYC-LHR-India. A portion of this market is now flying AC through either YVR or YYZ. Even 10-20 pax per day in WT/WT+ cabins is enough to scuttle the LHR-YYC route for BA.