Diverging business model views have led to today”s (25 October) announcement by British Airways (BA) that it is to terminate its entire UK franchise agreements.
A clear difference of opinion has emerged between BA and GB Airways in particular, whose entire share capital ” excluding London Heathrow slots ” was acquired this morning for ”103.5m by easyJet.
”There were some of the franchises who wanted to change their product and become more no-frills,” a BA spokeswoman told ABTN.
”We didn”t feel it was appropriate for our business ” it was especially GB Airways that wanted people to pay for catering and to sit in the emergency row seats for example. The franchise has lost its way and lost its use for BA ” it”s about being profitable.”
BA has already announced it is terminating its Bmed franchise from 27 October, with bmi acquiring its 17 routes, although arrangements with South African and Scandinavian franchises, Comair and Sunair, are to continue.
Today”s GB Airways announcement also coincides with the departure of Scottish franchise Loganair, from the BA stable, although the carrier will continue to operate under a codeshare deal until 25 October next year ” a six month extension of the current arrangement.
”We will operate the codeshare with BA for the further six months, which will give us the opportunity to see what we will do going forward,” a Loganair spokeswoman told ABTN from Glasgow.
”All we can say is that it won”t affect the routes we service or employment.”
The only flights that Loganair currently operates under its own livery are the six inter-island operations from Kirkwall in the Orkneys using Islander aircraft. The carrier has a fleet of 13 Saab 340s and two Twin Otters and plans to acquire up to three more Saab machines.
Passengers from the Scottish Highlands and Islands will continue to travel on BA flight numbers, when connecting through Aberdeen, Glasgow and Edinburgh on to BA services.
Loganair”s scheduled services will continue as normal and the Air Discount Scheme (ADS) will not be affected. The ADS provides a 40% reduction in air fares for those living in remote parts of Scotland, such as the Western Isles, Shetland, Islay and Jura and is funded through the Scottish Executive with European Commission approval.