This is a fascinating article and revelation from BA's boss. I believe he is right to say that the aviation market is polarising. Short haul flights are mainly driven by price and suitability of departure airport and time. Long haul are driven more by comfort and service. This has always been the case, but as Cruz says in his interview below, the low cost carriers have made price even more of a compelling benefit, and BA's long haul competitors have upped the ante on service.
However, my old boss at Virgin, Paul Griffiths (and one of the sharpest minds in aviation) makes a very valid point about how can you have one brand that stands for two different things? Perhaps will they have to create a new brand for the cheap seats and call it BA Lite? It's going to be an interesting space to watch.
The boss of British Airways has disclosed plans to split the airline in two. The aim of the “two airlines in one” strategy is to make it a premium carrier at the front of its aircraft and a budget one at the back. The disclosure from chief executive Alex Cruz came as part of an in-depth report in BA’s recent woes published by the Sunday Times Magazine. The former boss of low cost carrier Vueling admitted BA was off its game. “We are falling behind. We have work to do,” he told the newspaper. Cruz outlined a radical plan to split the airline into two – a budget airline and a upmarket one – which he said would make BA a “fantastic, unbelievable, 10 out of 10” carrier again.
http://www.travelweekly.co.uk/articles/284117/ba-boss-cruz-sets-out-two-airlines-in-one-strategy
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