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36-37 air feature 30/1/09 18:15 Page 36
36 air
Flying
into the
unknown
The global struggle for financial survival means airlines
are changing the way they do business. Though no-one’s
saying it’s going to be easy, shrewd consultants can make
the most of the situation. Adam Coulter reports
ritish Airways saw a 12.2% drop in its Tams says most corporates that BA has been dealing
B
premium traffic figures for December – it’s with are only allowing critical or necessary travel, as
worst month-on-month decline in 2008. opposed to discretionary. “We want to make sure we
BA, BMI and Virgin Atlantic have all are pricing well to allow budget holders to get the most
launched deeply discounted business-class out of their budget,” says Tams. “We are saying to
seat sales, with prices slashed by as much as 40%. corporate clients that to get the most out of your spend
And November saw a 30% year-on-year drop in you need to concentrate on fewer suppliers, ie BA.”
revenues through the airlines’ revenue payment BA’s high-profile marketing campaigns include one-
system, the Billing and Settlement Plan. way upgrades and agents’ prize draws (see box, right).
So is this a portent for what we can expect for the
rest of the year? Richard Tams, BA’s head of corporate Room at the front
and leisure sales, says it’s too early to tell. “January is The carnage in the banking sector – which BA and to a
going to be a very telling month, on the corporate and slightly lesser extent, Virgin, relied so heavily upon for
leisure side,” he says. “I think as more and more its North Atlantic premium travel – has led to a surfeit
redundancies come through we are going to get a of capacity and an urgent need to shift seats at the
better feeling of what lies ahead.” front of the plane.
ttgbusiness.com ❖ february/march 2009
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