A sign of the times. Not surprisingly, BA led the world with the highest rate in Europe of first class bookings until the crisis. City banksters need their comfort and the pre-crisis Brits were bold, flashy spenders. It's a new era though and Europe's most awful large airline is changing with the times. Business travel - the primary driver for airlines - has been cut back so similar cuts may be coming for other airlines.
The review of seating layouts is taking place against the backdrop of a decline in business travel that poses a serious threat to long-haul airlines. BA relies on premium passengers for more than 50% of its revenues, more than any other major European airline. In an indication of the current mood of austerity, Walsh announced yesterday that he will work for no pay in July, and urged BA's 40,000 staff to take unpaid leave or work part-time. "This is no stunt. I do not easily give up anything I have earned," he said.
BA has seen premium bookings decline by 13% over the past six months with its north Atlantic routes, BA's main source of profits, badly hit by the crisis in the banking sector. Its rivals have fared just as badly, with premium travel since the start of the year slumping by nearly 20% across the industry. The International Air Transport Association expects business class bookings to recover once global trade picks up, but it is gloomier about the prospect of bankers flying again in the droves that have boosted BA's profits in recent years.
The recession has also reduced demand for corporate jets, emblems of excess whose use has caused serious embarrassment to companies bailed out by national governments, including some of the major American car manufacturers and RBS.
