BA highlight ‘cash rich’ competitor threat
13.06.09
British Airways has highlighted the risk ‘cash rich’ rivals pose to its operations in the current financial year, abtn reports. BA said in its annual report: ‘Some competitors have cost structures that are lower than ours or have other competitive advantages such as being supported by government intervention. A particular threat in the current economic environment is cash rich competitors growing market share and acting irrationally to force other airlines out of the market.’
Willie Walsh, BA's CEO, said: ‘Competition remains fierce, particularly at Heathrow and on important transatlantic routes. The need to deliver world-leading customer service and operational performance, to invest boldly and meet stringent environmental standards are more acute than ever.’
BA said fare discounting by competitors in the past had had a ‘negative effect’ on its results. It said it was ‘generally required to respond to competitors' fares to maintain passenger traffic.’
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