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Scots flights are decimated as BA hits turbulent times



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Published Date: 02 August 2008
BRITISH Airways passengers will suffer the double blow of a fares increase and the cancellation of one in ten of the airline's Scottish flights in the face of the "worst trading environment" in aviation history.
The airline has followed Ryanair and EasyJet in announcing cuts as it grapples with soaring fuel costs and reduced passenger demand.

BA's pre-tax profits for April to June plunged by nearly 90 per cent compared to the same period last year.

It
said fare increases were inevitable because of a 49 per cent rise in fuel costs.

Nearly 500 of some 5,000 flights on routes between Scotland and Heathrow and Gatwick will go between October and March, among a 3 per cent cut across BA's global network.

Further reductions on Scottish routes to London City airport have not been ruled out.

However, there was anger that the cuts would create confusion because different flights have been removed from the timetable on different days throughout the winter.

This means regular passengers taking the same flights each time they travel may have to contend with a different service pattern every week.

Nearly one quarter of flights between Glasgow and Gatwick will be axed and more than one in ten of those from Edinburgh.

There will also be cuts on all three Scottish routes to Heathrow, Aberdeen taking the greatest cut, with 6.5 per cent of services removed.

There will be a 6 per cent reduction from Glasgow – where the 6am flight has already been axed from October – and nearly 3 per cent from Edinburgh.

The cuts will further shrink BA's presence in Scotland, which will be reduced to the London routes from October when it ends its tie-up with Loganair for 23 services in the Highlands and Islands. The routes will be taken over by Flybe, which last year also bought all of BA's 15 non-London services from Scotland.

The cuts were announced as BA reported an 88 per cent reduction in quarterly pre-tax profits from £298 million to £37 million. Willie Walsh, its chief executive, said: "We are in the worst trading environment the industry has ever faced. The combination of unprecedented oil prices, economic slowdown and weaker consumer confidence has led to substantially lower first quarter profits."

Fuel now accounts for nearly one-third of BA's costs, and is expected to top £3 billion this year. However, Mr Walsh said it was "impossible to say" how much fares would have to go up.

He said: "The main driver behind fare increases will be the high oil price. It's very clear that the industry is going to have to reflect this high price."

BA said it was spreading the cuts across the winter timetable rather than axing any specific flights to retain its valuable landing slots at London's airports. These are worth tens of millions of pounds each because of intense demand, but must be used at least 80 per cent of the time.

The Scottish Chambers of Commerce said the way the cuts were being introduced just compounded the misery for regular travellers. Liz Cameron, its chief executive, said: "We have already raised concerns that Scotland's flights to London's airports seem expendable ahead of all others.

"It's worrying that BA appears to be pulling in its horns with a bit of jiggery pokery. These complex proposals seem to guarantee their landing slots without guaranteeing passengers the present level of service."

Bmi, BA's main rival on Scotland-Heathrow routes is still reviewing its winter schedule. Mr Walsh said BA's terminal five at Heathrow was now "performing well" after its disastrous opening in March..

BA revealed yesterday that nearly one-quarter of the terminal's passengers suffered mislaid luggage on the first day, which has now been reduced to nearly none. However, passengers are still waiting an average of 18 minutes for their bags after their flight arrived.

Mr Walsh said he was confident that BA's merger with Spanish airline Iberia would be approved. However, he said the tie-up to create the world's third largest carrier in revenue – after Air France-KLM and Lufthansa-Swiss – would take months to complete.

Scotland's business hopes will be grounded by airline's decision to axe flights

REDUCING air links between Scotland and key markets in the rest of the UK will damage competitiveness and domestic tourism.

I appreciate we face a tough trading year, but will making it more difficult to do business south of the Border or making Scotland a less attractive, less convenient destination for UK tourists make conditions better or worse?

Scotland's poor transport links with the rest of the UK are already putting us at a competitive disadvantage.

How can we compete for contracts with companies based in, say, London, if we can't get to a meeting without leaving the night before?

Not only that, given that many flights to international destinations route through London, it will take longer and cost more to do business in Europe and beyond.

Reducing the frequency of flights is also bound to have a knock-on effect on the price we'll pay for those flights that remain available.

It's a lose-lose situation – fewer flights at higher cost.

Perhaps it's now time for government at all levels to safeguard Scotland's long-term transport and business links and make a commitment to a proper high-speed rail link between Scotland and the rest of the UK.

Directly employing 200,000 people and worth more than £4 billion a year, tourism is still one of Scotland's biggest industries.

But when 80 per cent of tourists come to Scotland from within the UK, fewer domestic flights will make us a less attractive destination and will make life even more difficult for small tourism businesses.

• Colin Borland is Scottish press and parliamentary officer for the Federation of Small Businesses





The full article contains 980 words and appears in The Scotsman newspaper.
Page 1 of 1

  • Last Updated: 01 August 2008 9:34 PM
  • Source: The Scotsman
  • Location: Edinburgh
  • Related Topics: British Airways
 
1

truthsleuth,

02/08/2008 00:32:31
The aviation industry is in real crisis and it still does not pay tax on its fuel as all motorists do.
It is in crisis and it still does not meet its environmental cost. ASnd if it were to be made pay for its carbon trading certificates no doubt it would be in meltdown.
If then landing slots were 'auctioned. each year to the highest bidder the nation may then get a little value for its money rather than the 'profits' being raked in by the Eiran pirates.
The real solution is High Speed Rail for inland journeys as no one can argue trans oceanic flights will be better than by plane. At least until the Star Trek becomes reality.
until then Abandon the Plane and go by train
You know it makes sense
2

truthsleuth,

02/08/2008 00:33:47
With all these flights being cancelled local airport expansion can no longer be justified
3

Lillig,

02/08/2008 00:47:35
he Scottish Chambers of Commerce said the way the cuts were being introduced just compounded the misery for regular travellers. Liz Cameron, its chief executive, said: "We have already raised concerns that Scotland's flights to London's airports seem expendable ahead of all others.

In UK terms, Scotland is always expendable. It doesn't seem to matter to central government whether or not we sink or swim financially. And big companies, like BA, are more interested in their profits than the effect on trade and tourism in Scotland.

Unfortunately, trains are not the answer either.

We need to be able to create more subsidies in Scotland through our own parliament and this means to become independent.
4

indune1,

Canada 02/08/2008 01:20:34

Bring back the transatlantic liners. Far more civilised form of travel.
WIth more modern forms of propulsion it is environmentally friendly and also would bring a more relaxed pace to business and travel in general.

With computers business can be transated on the promendae deck of the lounge bar.

With climate change, icebergs are less of a worry.

Oh, I say, steward! Another Drambuie please.
5

Fanling,

Switzerland 02/08/2008 01:41:28
#4

All for that. (A slow boat to China could be tricky though for landlocked Europeans.) For the frequent traveller airport hell is something else since the mad fundamentalists redefined the scenario for the rest of us.
6

2dogs in D.C.,

02/08/2008 01:56:48
Maybe they should install showers on the planes? #4-I agree.
7

indune1,

Canada 02/08/2008 02:11:51
5 & 6 -

Right then. Let's start a consumer revolution.

Let's put an end to the cattle cars known as airliners.

Let's stop being patsies to the airlines.

Let's avoid having a pack of nuts hurled at ourselves by a surly air steward/ess from 10 yards away.

Let's put an end to line-ups and uppity check-in personnel.

I say bring back the trans-Atlantic liner trade.

I only have fond memories of having crossed the Atlantic four times by such liners. Marvellous experience!

8

Maisie from Morningside,

02/08/2008 02:53:21
If/ when the slump ends the flights won't be restored anyway.
BA has made it clear that it wants the Heathrow landing slots for more lucrative flights such as London - USA.
9

Abel Magwitch,

02/08/2008 03:16:51
The silver lining of the cloud is less crowding at the airports. Fewer flights will mean fewer delays and less risk of collision and control errors.

As No.2 says, expensive plans for airport expansion can be shelved.

As they used to say, is your journey really necessary?
10

W Smith,

Middle East 02/08/2008 04:57:15
More drivel from the eco-nutters.

Aye lets all go by train and bus then eh?

Scottish companies like Stagecoach, RBS, Aggreko, Weirs Pumps, etc have business overseas.

In the case of RBS most of its profits come from outside Scotland and the logical move now is to consider London as its base or even Dublin.

I suppose that'll make all the eco-nutters happy.

Lets drive business out of Scotland using the environment as the excuse - ADVANTAGE ENGLAND.

Salmond follows up by buildling windmills that are not even reliable enough to power tyre fatories (Michelin, Dundee).

If you think windmills can supply enough energy for steel plants and aluminium plants you really need a check up from the neck up!

BTW
Merchant ships account for 10% of CO2 emmisions and aviation accounts for less than 5%.

How does Salmond think his Lexus got to Scotland then - BY TRAIN WAS IT?
11

indune1,

Canada 02/08/2008 05:00:42

10 - Had a good night on the tiles?
12

BigNige,

Arizona, US 02/08/2008 06:18:41
10, W Smith - I would be delighted if BA were eliminating flights out of concern for the environment but unfortunately it's not eco-nutters who can take the credit, it's London centric, fossil fuel economics.

Last time I checked Scotland didn't have any steel plants left. It's only aluminium plant in Lochaber is hydro powered.

Merchant shipping emits approx 5%, not 10, of global CO2 and aviation about 3%. Both are very significant contributors, however, aviation emissions go straight into the upper troposphere where their global warming effect is greater, by perhaps more than twice.

Indune1 et al : sorry to burst your bubble but ocean liner travel is far from environmentally friendly. It actually emits several times more CO2 than flying the same distance.


13

,

02/08/2008 06:30:30
Comment Removed By Administrator
Reason:
14

Danny Mather,

Edinburgh 02/08/2008 07:15:35
I find it terribly difficult to get worked up about a loss of 500 BA flights to London out of 5000. There is still plenty of choice with bmi and Easyjet, so avoiding "London Airways" is easy.

Also, I recommend that those looking for connecting flights, do so in Amsterdam, Dublin or Frankfurt; all far more easy and pleasant to transit through than Heathrow.
15

Kenny A,

02/08/2008 07:20:47
Perhaps Mr Walsh should also have mentioned fall in profits is also due to the fact that BA are expensive, unreliable and cannot even deliver a passangers luggage to its destination, also its staff are very unhelpful, probably at order of management.

Never fly BA if it can be helped. They are rubbish. And if they went bust I dont think I would shed many tears, someone would fill the gap.
16

donald,

glasgow 02/08/2008 08:00:59
Unionist MPs like to fly to London with Union Jacks on their tails.
17

Richard Taylor,

Aberdeen 02/08/2008 08:27:42
Well I never - ABZ most affected...what a surprise!

BA should just pull out altogether, it obviously wants to.

Isn't it called London Airways these days anyway?

Willie Walsh won't give a stuff.
18

MacGillicuddy,

02/08/2008 08:34:43
#10
What a saddo!
Perhaps you should just concentrate on your preferred country of domicile in the middle east. The reduction in BA flights might also reduce your tourist visits to Scotland.
19

gus1940,

Edinburgh 02/08/2008 08:57:24
Wonders will never cease.

For once the word 'decimate' has been used in nearly its proper sense.
20

Jacqueline Hyde ,

On the shelf 02/08/2008 09:09:02
#19
:)
21

Steve Evans,

Malta 02/08/2008 09:38:38
Air Malta is to stop its twice weekly scheduled flights to Glasgow from November due to fuel costs,after what has been a popular route for all,bad news for the tourism industry as well.
22

Joe,

Livingston 02/08/2008 09:40:52
Looks like easyjet and the railways will pick up the excess London/Scotland business BA is turning it's back on. Plus even more passengers will be seeking connections from Edinburgh over Amsterdam, Frankfurt, Paris etc. I can see the day when BA's regional presence will be nil.
23

GraemeH,

Edinburgh 02/08/2008 10:36:07
#1 - Air passenger duty is significantly higher than the cost to fully Co2 offset flights.

Perhaps you could ask why rail does not pay any tax at all, and takes massive subsidy as well? Is it meeting its "environmental costs"?
24

harvey05,

still at heathrow 02/08/2008 10:45:34
#14 i agree. this place is a dump
25

It's life but not as we know it,

The Oort Clouds 02/08/2008 11:55:01
When people wake up and realise that this CO2 offsetting business is a bigger con than selling bibles door-to-door there will be some hope we can get things back on track.

If you are really so stupid that you think you can take a flight and send a £3 text to some chancer somewhere who pretends he'll plant a tree or two for you then I truly pity your naivety.
26

Hermitage,

Edinburgh 02/08/2008 12:00:37
'Decimate' is a change from that indispensible word 'chaos', much beloved of Scotsman journalists.

Otherwise, this must be a continuation of the conspiracy against Scots.
27

It's life but not as we know it,

The Oort Clouds 02/08/2008 12:14:49
I also have gone back to dumping all my bottles and newspapers in the wheelie bin since my local council fessed up that it all goes to the same landfill anyway. The greenies really have taken us all for mugs.
28

Eric D,

renfrew 02/08/2008 16:44:10
Bring back Caledonian airlines !
29

Green Jock,

02/08/2008 17:54:52
High speed trains are the solution. In Spain, the AVE between Seville and Madrid reduced daily flights from 12 to 2 and the same is now happening between Barcelona and Madrid. In France the TGV network is preferred to planes.
30

daveserviceman,

edinburgh 02/08/2008 18:06:57
There is no point to recreating the transatlantic liners who gets that ammount of paid leave from work anyway. thats if you are going to america 5days there 5 back and two weeks stay that is a month almost, and what good is a transatlantic liner if you are going to spain there are no high speed rail links to spain at the moment and it takes two and a half days to get there on the current rail service. The Idea of flying is to get there quicker in a more reasonable time
31

Richard Taylor,

Aberdeen 02/08/2008 19:43:34
#29 can you HONESTLY see the rail cos. & Govt putting in that sort of investment? No political will to do so...especially north of the central belt, where it appears no-one exists! ;-)
32

Nikostratos,

02/08/2008 19:53:42
http://www.nytimes.com/2008/08/03/business/worldbusiness/03global.html?_r=1&hp&oref=slogin


Shipping Costs Start to Crimp Globalization




Published: August 3, 2008

When Tesla Motors, a pioneer in electric-powered cars, set out to make a luxury roadster for the American market, it had the global supply chain in mind. Tesla planned to manufacture 1,000-pound battery packs in Thailand, ship them to Britain for installation, then bring the mostly assembled cars back to the United States.


But when it began production this spring, the company decided to make the batteries and assemble the cars near its home base in California, cutting more than 5,000 miles from the shipping bill for each vehicle.
33

La5t_minit,

02/08/2008 20:57:21
#10 W Smith. your figures a a bit out. Air travel worldwide adds less than 0.02% to the natural CO2 output of the planet. Globally, burning fossil fuels emits 0.28%. without CO2 plantlife would die. The global warming theory has been proved wrong but as the governments of eth world have found its an easy buck maker they cant go back on it now withotu looking like idiots.

Ice records dont lie... Temperature peaks and dips have occured regulary over the last 2-300 thousand years and we are curretnly approaching another peak. Interestingly enough the CO2 levels rose at the other peaks as well so where the cavemen got their gas guzzlers and air line tickerts is a weird one...

Maybe the government can tell us after its been proven they are using it to screw us for every penny.
34

Daveunderwater,

02/08/2008 22:02:54
Not a problem I use Schipol good old KLM AF for my personal and business flights, far more civilised, and they never lose my luggage.
35

truthsleuth,

03/08/2008 00:23:01
Eco nuts have nothing on the air brained. Their consumate ability to deny anything that may interfere with their selfish attitude defies belief.

As to those who point to rail subsidies they should first question the grants that were paid to the airlines to set up these routes, the subsidies from ratepayers for airport construction and operation and the 'low landing rates' demanded by the cheapo airlines.
After we have considered all that we could consider the fuel tax rebates as the railways pay yax but at a reduced rate.
The rail and road links/improvements to airports are not generally paid for by the airlines or airports.
Air travel is a must for transoceanic flights but domestic travel is better by rail or even road so let us stop subsidising domestic airlines.


36

truthsleuth,

03/08/2008 00:25:23
#34 Daveunderwater,

KLM must have significantly improved their leg room, their customer relations over the past few years.
Five years ago I went via Schipol to Los Angeles by KLM
Never again.

 

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