Issue 43: March/April 2010
EDITOR'S COMMENTS
BY THE TIME THIS ISSUE of Buying Business Travel hits your desk, British Airways' (BA) bosses will either be mired in strike chaos or phewing a collective sigh of relief having averted potential catastrophe. The result of the Unite union ballot was due to be announced shortly after we went to press. The travel industry was, naturally, hoping for disruption to be avoided at all costs. The threat itself has already prompted many business travellers to re-book with other carriers, while travel management companies are poised with contingency plans.
As a long-standing member of the National Union of Journalists, I fervently believe in workers' solidarity and organisation to protect the rights of employees. In this case, however, I'm struggling to understand how Unite can possibly be representing its members' best interests. BA's fight for survival is well documented, and the cabin crew's market leading salaries are no secret either. Perhaps there is a genuine communication problem between directors and staff to be addressed.
Let's be honest, BA's track record in talking to the trade is far from perfect.
The idea that BA could fall into administration was once unthinkable. But if the predicted strikes - which will be designed to wreak maximum havoc - take place, even its most loyal frequent flyers must fear for the future.
Nevertheless, the start to 2010 has not been all doom and gloom for our ailing flag carrier. Though it is set to post record losses for the second successive year in April, figures for the last quarter of 2009 were far better than forecast. And having secured a preliminary agreement for a merger with Iberia, the company has also taken a step closer to an official tie-up with American Airlines (AA). The US Department of Transport gave BA and AA's Oneworld alliance an initial thumbs-up on anti-trust immunity - which will allow its members to co-operate on fares and networks - much to the annoyance of Virgin Atlantic's Sir Richard Branson, who branded the decision a “kick in the teeth” for competitors and consumers. BA boss Willie Walsh can also take heart from Japan Airlines' decision to commit to Oneworld, having been publicly courted by rival, SkyTeam.
There are other seeds of hope for BA's shareholders; the new First Class product - being trialled on the Heathrow-Chicago service - has enjoyed favourable reviews, while speculation that the successful all-Business Class service between London City and New York JFK will be rolled out on other routes continues to mount.
May common sense prevail.
Springtime is synonymous with fresh starts and new beginnings. I now have the privilege of editing our market leading publication after Mike Toynbee decided to make the move upstairs and become managing editor. While you'll still see Mike out and about at industry events, I will be spearheading a new era for the magazine.
I would be delighted to hear from anyone with comments about our products or the industry.
Martin Ferguson, Editor
FEATURES
The Price of Loyalty | details
Analysis of frequent flyer rewards - The lure of frequent flyer rewards can cloud judgment, says David Churchill
VAT’ll Be The Day | details
Meetings Round-up - Catherine Chetwynd explores complex developments in EU tax law
Ladies of the Night | details
The lighter side of selling - Mike Platt worked in the airline industry for 16 years and was managing director of HRG UK (Hogg Robinson Group) for six years. Now retired, he gives readers advice on why you should never take short cuts in sales...
Breaking New Ground | details
Travel technology innovations - As the UK business travel sector looks back at the most turbulent economic period in its history, many will be thankful that investment in technology and innovation has continued. Mark Frary looks at where the money has been spent and what we can expect in the future
Much ado about nothing? | details
Unbundling: the real story - The cost-cutting phenomenon unbundling has become a fashionable topic on the conference circuit. Bob Papworth looks at what all the fuss is about
Changing times | details
TMCs will have to adapt to survive - The last two years have been a huge challenge to the travel industry Mark Frary finds TMCs have had to adapt and develop to keep business coming in
Green wash-out | details
Copenhagen and business travel - While the world’s leading politicians failed miserably in their efforts to establish a united global strategy to combat climate change, business travel is poised for change. Tricia Holly-Davis reports from Copenhagen
Trading down | details
A big deal for the budget sector - A willingness to adopt alternatives as part of a new cost-control culture is having a marked effect on the low-cost hotel and aviation sectors. Bob Papworth reports
Capital stay | details
Update on London’s hotel scene - Jonathan Hart talks to industry experts about how London’s diverse hotel scene has had to adapt to survive the recession
Be Prepared | details
Visa services - Securing a business visa for travel abroad can be a costly and time-consuming process. Gary Noakes looks at the services available to save money and beat the embassy queues
Well appointed | details
Success for serviced apartments? - As serviced apartments are increasingly recognised as a more secure, comfortable and cost-effective choice for business travellers, Catherine Chetwynd finds that there is still room for improvement
