Company Watch - British Airways.

British Airways 

British Airways clarifies long-haul fleet renewal plans. British Airways denied it is at an advanced stage of negotiations with Boeing to acquire up to 20 777-300ERs that would replace some early delivery 747s from 2008, as reported on this website last week. "We have secured options on production slots with Boeing for up to 10 777s for delivery from the end of 2008 through to 2010," Planning Director Robert Boyle said, noting that at this point there is no preference for the dash 300ER. "The agreement does not specify which type. We can do this at a later date closer to the exercising of the options," he said. Boyle preferred not to disclose the financial terms of the agreement but admitted there is a "linkage" with a former option position BA held on 16 777-200ERs dating from 1998, which lapsed after 9/11. The securing of the slots came about "as we were having talks with both manufacturers on our future [long-haul] fleet requirements," he said. BA operates 43 777-200s, 21 767-300s and 57 747-400s on its long-haul routes. "We have to start thinking about the replacement of the latter two types," Boyle stated, while adding the need is "not imminent." Its oldest 747 came into service in 1989 and its first 767 in 1990. Mar 15, 2006

British Airways is to close its 17 remaining high street travel shops by the end of August. Also to go is the Belfast call center. The closures are part of a streamlining of the organization instituted by new CEO Willie Walsh. BA says that currently 80% of all direct bookings are via its ba.com website and that the move away from the traditional sale outlets is an industrywide trend, although there are some who say that there is a loss of value difficult to asses in marketing terms, drawing a parallel with the decision to close the Paddington station check-in desk and luggage facility. BA will continue with its UK call centers but at a reduced scale leaving just Manchester and Newcastle. Telesales have fallen by 60% since 2001. The airline closed its Glasgow and London centers in 2004. http://www.ba.com Mar 19, 2006

British Airways is looking to strengthen its network to Eastern Europe, Area Commercial Manager-Central and Eastern Europe David Rousham said. New points will include Tirana and Varna, while flights to Izmir and Ankara will be operated by franchise partner GB Airways. Rostov and Gdansk also are to receive service. With Malev Hungarian Airlines set to join oneworld this year, Budapest could play a role as a hub to the Balkans. BA also is looking at additional destinations in the Ukraine beyond Kiev, Rousham said. Mar 16, 2006

British Airways to cut 400 direct sales jobs. British Airways announced the proposed closure of its Travel Shops business and its Belfast call center, moves that would shave approximately 400 jobs from the cost-cutting carrier's payroll. Mar 16, 2006

British Airways will offer daily London City-Milan service through its BA Connect subsidiary beginning May 2. BA Connect also will increase its LCY-Edinburgh service from five-times-daily to seven and suspend its LCY-Geneva service during the summer season. Mar 15, 2006