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Saturday, August 25, 2018

To Fly is to serve (A salesman's perspective).

It is not a secret that a certain British Airline is now the largest operator of 747-400's in the world with Current calls for complete replacement in 2023 with a gradual phase out of this sizable fleet of four holers

British Airways have built their core around a highly congested hub, infested with plenty of competitors and there is nothing conventional about an Airline which maintains a contingency of using bigger planes to get around all the slot restrictions. Despite the problems, BA frequently fills can after can of Self Loaders to and from the bottomless pit that is LHR.

Is there is a unique window of opportunity here? All of BA's Jumbo humps are exclusive to Club World on all 3 configurations, with the Nose being F class only. Whilst this is nothing new,  there is the onerous fan club of BA's Club World Seats on such humps, an experience that some say is unbeatable even with an A380.

Also with a little tweaking, the 748 can  do LHR-PER and back all year round, add commonality with the outgoing fleet in terms of training, economics of scale in terms of spares for selected parts and of course if BCA are willing to throw in Rolls engines into a package there might be an outside chance in hell that it might get a serious second look.

Costs aside, the 748 will offer BA big capacity on the route that QF now monopolizes with a high density seating configuration, but its premium that the Airline will be offering. A revamped J or F class product on a platform tweaked to do LHR-PER with Y class seats 1 order of magnitude bigger that QF might just give the Roos a run for their money.

There is however no chance that the Devil's frozen hand will ink this deal, but a pipe dream is what its worth.

Even if its only worth 2 cents.

6 comments:

  1. Its nothing special, all of this up there is just plain old fact shaken together with sugar and spice.

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  2. So Charlie, are the Volga and UPS orders the last for the 747, or is Boeing just trying to stick to rate 6? I heard about some supplier issues possibly being an issue for the 748 but not sure how it impacts the future. Also why wouldnt British Airways not buy more 380 to replace 744 fleet or will they be buying 779 soon?

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  3. Very complex questions but a somewhat straightforward answer for each.

    As per the current orders, your guess is as good as mine.

    For the rate increase part, it a known fact that rate increases consume a fair bit of resources. This costs Money, money that needs to be pumped into the program, to secure those resources, an exercise that is unlikely given the state of the 747 program.

    As for supplier issues, I have no idea what the relations are between BCA and their suppliers or what contract they have signed and agreed upon. These are usually propriety and on a PnC basis. As you might have guessed, it might be due to the backlog remaining and if there is a squeeze to keep the line efficient, there is a squeeze on pricing and delivery.

    BA's Network is a very complex topic because they reach almost every part of the Globe. With that in mind to find a one size fits all solution is not possible and this is reflected by their current purchases so far. Dabbling in a little A380 Here, some 787 there, and we might need those A350's somewhere so we'll order some.

    With a strategy like this its hard to tell what they think of the 779. I know for certain BCA makes claims that its a somewhat replacement for the 744, BA might have different ideas. Everything in that post up there is a reflection of what the 748i could possibly be in BA colors, its possible that BA believe that but have been offered unfavorable terms and that's why they not bought it. I recall Walsh saying something along the lines of no Rolls no 748I, and the ball was always in BCA's court and they have chosen to push the twin not the quad, when its the quad the Airline may have wanted.

    There may not be any actual truth to that statement, but bear in mind its one explanation of a complex problem. BA have been lukewarm with the 779, not really saying anything much, or at all. Bearing in mind that EK has put almost their entire faith in that plane, it might be that BA think otherwise.

    Hope this helps.

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  4. I think this article will nullify and new BA 747-8 orders:
    https://www.mro-network.com/maintenance-repair-overhaul/british-airways-completes-boeing-747s-retrofit

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    1. A rather Old article, but yes a no Rolls engine on the 747 is a de-fato death sentence for any proposal forwarded to BA. This is just basic logic here, if any fan of the queen can see that one coming, why couldn't BCA? I wonder what kind of argument they were putting to the BA people during their sales campaign, considering Airbus took that RFP away and even gave BA a Rolls option to boot. No the exclusion of Rolls Royce does not benefit anyone except GE.

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