Why the 50% off sale

[Scrooge]

I have been sitting here wondering why BA would do such a thing, even a 10% off sale would generate a lot of extra reward seats, is their a UK accountancy rule that outstanding miles have to go against the bottom line ? so BA decided to take the hit in one go and greatly reduce the number of outstanding miles?

[preiffer]

Yes, miles are considered a 'liability' in the UK Dave. Wiping out a load lowers their 'debt'.

[RichardMannion]

See post #8:
http://www.flyertalk.com/forum/showthread.php?t=891047

I'd add:
- Still getting fuel surcharges & taxes of £3-400 per passenger.
- Reduce outstanding mileage liablity
- Steal some business off the other carriers
- Potentially convert some people to the higher cabins, that ye olde forbidden fruit....

If you look at that thread, the sheer volume of people taking advantage will be hurting the others.

[Scrooge]

Thanks for the link Richard, but at 30 pages, forget it, it will just hurt me more to read of everyone getting their flights while I still can't log in.

Ok so figure that BA will take a hit in the next quarter, but also wipe out a whole load of miles that are floating around, from what I have seen they seem to be pretty opening up a lot of seats, so yes it is going to stick it to other airlines, VS included.

quote:Originally posted by RichardMannion
See post #8:
http://www.flyertalk.com/forum/showthread.php?t=891047

I'd add:
- Still getting fuel surcharges & taxes of £3-400 per passenger.
- Reduce outstanding mileage liablity
- Steal some business off the other carriers
- Potentially convert some people to the higher cabins, that ye olde forbidden fruit....

If you look at that thread, the sheer volume of people taking advantage will be hurting the others.


I think Raffles hit the nail on the head [:)].

quote:Originally posted by DragonLady

I think Raffles hit the nail on the head [:)].


I think that it is a mixture of what Raffles said and what RichardMannion said... it is a 'win win' situation really (assuming the demand for premium seats has dropped anyway... BA making the best of a bad situation (current economic situation and companies cutting back on premium cabin travel and all travel) AND making some travellers very happy in the process... Can't hurt to improve BA's PR at a time when most airlines are feeling the pinch.

Boo

In a nutshell, they are selling seats cheap, without their reputation being tarnished, and without risking a damaging price war which they can do without.

What is there a sale on[:D]