ATW Daily News

BA's Walsh remains committed to A380

Thursday July 2, 2009

British Airways CEO Willie Walsh said he remains committed to the A380 and "could make a case to take this capacity earlier than scheduled." BA placed an order for 12 A380s in September 2007 as part of its long-term fleet modernization, with deliveries beginning in 2012. "There is a big cost reduction compared to the 747s [we currently operate]," he said yesterday. "With fuel prices over $70 and maybe heading to $100 a barrel the difference in unit cost becomes even more distinct," he told ATWOnline during a press conference at the SITA Air Transport IT Summit in Cannes. "Also in terms of capacity, there is a case. One A380 could replace two 747s," he noted, while acknowledging that other costs associated with the introduction of a new aircraft type as well as pre-delivery financing costs would "almost certainly rule out changing the delivery schedule." All new aircraft deliveries up through 2013 are financed, he confirmed. "We are fortunate to be in this position," he said.

Walsh also conceded that BA considered postponing its new all-business-class A318 service from London City to New York JFK, which is due to commence in September. "We reviewed it in May-June last year when the first signs of the credit crunch were apparent and we expected a downturn and again in September, but research convinced us to move forward with it," he said. "We see a demand for the service, and we believe it will be a very successful venture." He admitted to this website that the new route will "of course" cannibalize premium traffic on existing Heathrow-JFK service, "but equally it will give us the opportunity to cut capacity at LHR." And, he said, if the LCY-JFK operation is not a success, "we can use the aircraft on other routes" like to Dubai or certain oil-producing destinations.

by Cathy Buyck

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