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Willie Walsh interview news
London to Dubai. Abu Dhabi is trying to do the
same. Ultimately, if you don’t have the direct
services from these major cities, business will go
elsewhere.”
Gatwick pull-out?
Walsh denied speculation that BA would switch
all its flights from Gatwick to Heathrow if a third
runway is built.
Observers have warned that Gatwick would be
“decimated” by BA pulling out (TTG January 23).
But Walsh said Gatwick would have a role to
play in BA’s point-to-point leisure traffic.
“You don’t need to use slots at Heathrow to
serve any destinations that we service out
of Gatwick because they don’t require transfer
traffic,” he added.
“A lot of the routes we serve out of Gatwick are
mainly leisure, so it makes sense to operate them
from Gatwick. It is also cheaper than Heathrow.”
London City venture
Walsh said BA had reviewed its planned business-
class-only service between London City and New
York, but decided to press on with the venture. Hyderabad’s Rajiv Gandhi International airport opened in March 2008, and the surrounding area is developing rapidly
However, he warned that BA could cut
capacity on its New York routes out of Heathrow
once the London City route starts in September.
Total New York capacity would be reviewed, India’s slower growth rate fails
which could lead to some services from Heathrow
being cut for the winter 2009-10 season.
The London City service will allow passengers
to dim BA’s eye for opportunity
to send text messages and use the internet.
Pricing for the service is due to be set within WHEN Willie Walsh and the British Airways but the previous day’s flight went out full.
a week, and Walsh indicated it would carry delegation step off flight BA 277 from Heathrow Other carriers serve Hyderabad from London,
a premium because of its convenience and to Hyderabad they are whisked through a but BA’s is the only direct service, and Walsh
onboard configuration of 32 flatbed seats. spanking new terminal, built in two and a half maintains the potential is there to increase
years at a cost of £355 million, writes Chris Gray. frequency to a daily service.
Recession prediction The development was so fast that progress India is now BA’s biggest market outside of
Walsh predicted the downturn in the UK will not on the approach road is lagging behind. It North America and it operates 48 flights a
bottom out for another two years. appears to be still under construction as the week to the subcontinent, compared with 19 in
He cited declining consumer confidence, cou- bus takes Walsh’s party to the gleaming new 2005 when Indian air space was liberalised.
pled with the collapse of credit, as reasons why Ista hotel on the outskirts of Hyderabad. BA will end its three-times-a-week service to
the recession had “not reached the bottom yet”. Like the airport, the hotel is pristine, with a Calcutta this summer. Walsh said it had become
“We are looking at a difficult economic envi- glorious pool and state-of-the-art spa, but is unviable as the business travellers it was aimed
ronment in the UK for the next 18 to 24 months essentially in the middle of a vast building site. at needed a daily, not thrice-weekly, service,
and until we see the banking system functioning In the area around the hotel a giant Microsoft and BA did not have available aircraft to do this.
again, it has to get worse because consumer office is going up, together with hotels and golf He insisted there were no wider implications:
confidence is still going down,” he said. clubs. And Google is elsewhere in the city. “I still believe there is real opportunity in India.”
Walsh added that this recession was different The developments are visible proof of the
and more severe than previous slowdowns, economic growth in Hyderabad linked to ■ India & Indian Ocean feature, p56
even than the September 11 attacks, because of biotech, IT and outsourcing industries that
the collapse of bank lending. persuaded BA to start the five-times-a-week
India Take-off
However, he said BA had arranged finance to direct service from Heathrow on December 7.
fully fund its aircraft purchases to the end of The Indian economy has slowed, but is still BA’s weekly flights to India in 2005 19
2012. The finance amounted to $4 billion and was growing at 6% a year, a rate Europe and the US BA’s weekly flights to India in 2009 48
with an international group of banks, he said, can only dream about as they enter recession.
adding there was scope for finance beyond 2012. This B777 is not crowded, and Walsh is coy about India’s economic growth 6%
precise figures for how the route is performing. UK economic growth -1.5%
■ Virgin Atlantic pay freeze, p14 He said 70% of seats on the flight were sold,
30.01.2009 13
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