Business

British Airways Under Pressure: Operational Challenges and Disruptions Affect Business

The airline is struggling with outdated technology, operational complexity, and congestion issues at Heathrow Airport.

Eulerpool News Jul 8, 2024, 9:11 AM

British Airways (BA) under pressure to improve operations as summer travel wave approaches

BA is still suffering from the effects of years of cost-cutting," said Chris Tarry, an aviation industry consultant. "In my opinion, BA still has a long way to go, and once you lose a customer, it takes a long time to win them back.

The data shows how BA's outdated technology, operational complexity, and reliance on the heavily trafficked London Heathrow Airport are putting pressure on the airline as millions of travelers prepare for the summer holidays. The problems became evident at the end of June when a "temporary technical glitch" in BA's baggage system caused widespread disruptions, resulting in some planes taking off without luggage and many passengers having to wait for hours for their bags.

Undoubtedly, operations are BA's Achilles' heel. They are a premium airline, and historically, BA was known for its reliability," said John Strickland, an aviation consultant and former BA manager. The target for canceled flights should be at one percent or below, he added.

BA is not alone in facing a multitude of problems, including significant delays and cancellations due to air traffic control issues. Wizz Air had to drastically reduce its flight schedule because many of its planes had engine problems, while German Lufthansa suffered widespread disruptions due to strikes.

However, BA has long been a lightning rod for criticism: Cost-cutting measures prior to the pandemic, including the elimination of complimentary meals and beverages in economy class on shorter flights, led to widespread accusations that the brand had lost its reputation for a premium experience. Although CEO Sean Doyle has been working to restore the airline's reputation since taking over at the height of the Covid-19 pandemic in late 2020, operations are stalling in the face of increasing travel demand.

Senior executives at IAG, the parent company of BA, support the efforts but acknowledge that the airline is in a race to improve its reputation. Complaints to the UK aviation authority increased by 10 percent in the first quarter of this year compared to 2023. BA recorded the second-highest number of passenger complaints after low-cost airline Ryanair.

There are many feasible things that BA is doing now to transform itself. But this takes time, and BA doesn't have it in abundance," said a former senior BA manager.

IAG has promised to invest £7 billion in BA over the next three years, a sum that also includes new aircraft. However, the recovery program is hampered by the airline's extensive operations. BA operates a mix of Boeing and Airbus planes on both short and long-haul routes. These flights converge at the London Heathrow hub, one of the busiest and most congested airports in the world, where even BA's competitors admit that it is difficult to recover once delays start to accumulate.

While relationships with staff were reorganized under Doyle and new personnel were hired to compensate for cuts made during the pandemic, executives admit that BA lost a critical mass of leaders during the pandemic. Supply chain issues across the aviation industry have also complicated maintenance.

BA has always been the profit engine of IAG... but they are catching up now because they have not invested until now," said Tarry. However, Doyle said that the recovery – IAG has also regained its investment-grade credit rating – means that significant investments could now flow into the improvement of BA.

BA has already introduced a new operating model at Heathrow, including the hiring of 350 new operational staff, changes to management reporting lines, and the modernization of background technology from IT to baggage scanners. To enhance the passenger experience, BA has promised passengers a new app and website, as well as comprehensive upgrades to lounges and cabins.

We have placed a lot of focus on improving processes and there is progress," said IAG CEO Luis Gallego to the Financial Times. "If you want to be the best airline, you have to offer the best to the customer.

BA executives highlight recent operational improvements. Only 60 percent of flights departed or arrived within 15 minutes of the scheduled time last year. This figure improved to 80 percent of flights in the spring following changes at Heathrow. The punctuality data does not include cancellations.

BA said that its punctuality rate at Heathrow is now better than that of its direct competitors Air France, KLM, and Lufthansa at their hub airports. Executives said internal metrics also showed that customers flying in the new cabins are satisfied. However, the upgrades will not be completed until 2026, meaning many frustrated passengers will experience an inconsistent product until then.

Paul Lucas, a frequent flyer and popular airline reviewer on YouTube who takes 40 to 50 BA trips a year, believes that some of the recent criticisms of the airline are exaggerated. "I think when you hear British people talking about BA, it’s a case of familiarity breeding contempt. Everyone believes their home airline is the worst in the world, except for the Gulf carriers.

But he rated BA only as an "approximately mediocre" airline, far from Gallego's ambitions for BA to be "the best." "It is always at least bearable," said Lucas.

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