Poor BA is losing out in its battle with Ryanair. This article is an interesting update to the data response you completed last week. What does this article say about the nature of Income Elasticity of Demand of the different segments of the economy.
Wow. The bar graph showing the pre tax profit and losses is mind boggling. $500 million loss in 6 months is devastating. Even though BA is an airline that only caters to more affluent consumers, it’s baffling to see that it took them so long to react to consumer demand. Even at Procter & Gamble where my mom works, they have cut down on business trips. They’ve pushed back all employees taking business trips with first class down to business class. They’ve also cut back on the number of business trips they send their employees on every year. Instead of sending people off on planes, they conduct meetings over the internet.
With signs like these, I think that it’s BA’s stubborn ways that have led them to this situation.
I don’t think the article mentioned anything about the British government lending a hand, but will the government play any part in saving the ailing company?