British Airways Prepares To Restructure Post COVID-19

BA has begun to consult with its trade unions on a redundancy exercise which may affect up to 12,000 BA employees.

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British Airways Coat Of Arms
British Airways Coat Of Arms (Image Credit: British Airways)

International Airlines Group, the parent company of British Airways, and Aer Lingus, Iberia, LEVEL and Vueling has released its preliminary first quarter results for 2020.

Total revenue in the first quarter fell 13% to €4.6 billion compared to €5.3 billion last year. IAG reported a loss before exceptional items of €535 million compared to a profit of €135 million last year.

IAG has also taken an exceptional charge of €1.3 billion. This is due the ineffectiveness of fuel and foreign currency hedges for 2020 due to over-hedging. Put simply, this means IAG has not been able to benefit from significant falls in fuel prices in recent weeks.

IAG airlines have reduced capacity by nearly 95% in April and May. The group has not announced any capacity plans for June which are subject to both the easing of country lockdowns and the lifting of travel restrictions.

Industry views on how long it will take for demand to return to 2019 levels vary widely.

Most optimistic is Michael O’Leary who believes that, with significant discounting, demand will recover quite quickly. Many airlines believe it will take around 3 years for demand to recover and demand will remain subdued well in 2021.

IAG has said today that it expects it to take several years for demand to return to 2019 levels.

British Airways Restructuring

British Airways has begun a consultation with its trade unions on a redundancy exercise.

This may affect up to 12,000 BA employees. To put this into context, BA has approximately 40,000 employees. 22,626 employees were furloughed in April.

Whilst this will clearly have a significant impact on the livelihoods of many BA staff, the number of 12,000 is a likely worst case scenario to open negotiations with BA’s trade unions. It is likely that this will be achieved through voluntary redundancy as much as possible which is a “red line” for trade unions.

BA is also likely to be receptive to other cost savings suggestions, particularly productivity improvements.

It also points to a significant reduction in capacity in the coming years and, in turn, many changes to BA’s airports, route network and fleet.

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British Airways Extends Coronavirus Rebooking Policy

All passengers due to travel with British Airways up to 31 July 2020 can exchange their ticket for a voucher for travel up to 30 April 2022.

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BA Airbus A319 aircraft at London Heathrow (Image Credit: British Airways)
BA Airbus A319 aircraft at London Heathrow (Image Credit: British Airways)

British Airways has today, Tuesday 28 April 2020, extended its flexible rebooking policy for all passengers due to fly with the airline in the coming months.

Passengers who were due to travel up to Sunday 31 May 2020 and were not able to travel had the option to exchange the value of their booking for a voucher for future travel.

This has now been extended to all passengers who were due to travel up to Friday 31 July 2020. BA’s new rebooking policy is likely to be a precursor to a substantial schedule reduction in June and July.

Passengers due to fly up to Thursday 31 December 2020 who had booked under BA’s “book with confidence” policy from Tuesday 3 March 2020 also have the flexibility to change the date or destination of their booking.

Voucher Extensions

In addition, all new and existing vouchers can now be used as payment for a new booking for travel up to and including 30 April 2022.

Previously, vouchers had to be used within 12 months of the original travel dates.

Refunds

If your flight is cancelled you are entitled to a full refund.

However, you will need to call BA directly to secure this cannot be done online. Note BA will not allow vouchers to be subsequently converted into cash refunds.

The above is only intended to be a short summary of BA’s policy.

For the latest information on Coronavirus please see this page on ba.com.

Please review this very carefully, including the terms and conditions for flight and holiday bookings, before making any changes to your bookings. These policies are also subject to change at short notice.

BA is currently operating an extremely limited schedule from London Heathrow Terminal 5.

Schedules currently indicate that flights at London City and London Gatwick will resume from Friday 22 May 2020. This is subject to change. It is expected that schedules will resume very gradually throughout the year and into 2021.

A History Of British Airways Advertising – Part 10

A look at British Airways’ advertising over the past 50 years as BA turns to story-telling on social media and marks its centenary year.

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"To Fly. To Serve. Today. Tomorrow."
“To Fly. To Serve. Today. Tomorrow.” (Bartle Bogle Hegarty for British Airways)

Welcome to the tenth and final part of our look at some of the most influential and noteworthy BA advertising of the past 50 years.

In our final part, we’re well into the era of social media platforms such as Twitter, Instagram and YouTube.

These platforms are a double-edged sword for airlines. They enable airlines to reach a mass audience without buying expensive advertising space, but they have to be shared with the public at large. Airlines are at the mercy of instantaneous and reactive judgements by audiences.

“Today, Tomorrow”

This advert from 2013 was an extension of BA’s brand relaunch “To Fly. To Serve.” but with a much more contemporary feel.  

The advert debuted ahead of the launch of the Boeing 787 Dreamliner and Airbus A380 at London Heathrow.  It features a passenger travelling through Terminal 5 to board a Boeing 787 Dreamliner.  

The advert uses a “micro to macro” style of filming, featuring close up shots of the details of flying, panning to wide shots of the aircraft in motion.

The film is directed by Martin Krejci, with cinematography from Anthony Dod Mantle and features the soundtrack “Experience” (Starkey Remix), by Ludovico Einaudi.

“The Magic Of Flying”

“Look Up” was a campaign developed by the interactive agency OgilvyOne in 2013.

Interactive billboards in Chiswick and Piccadilly Circus would respond as a BA aircraft flew over it. OgilvyOne had installed antennae on nearby buildings which could identify overflying aircraft. Using custom-made software it would identify which of those aircraft were operated by BA.

A child would then point to the aircraft in the sky and the billboard would display its actual flight number and origin, highlighting the breadth of destinations served by BA. 

As well as generating a significant number of visits to the BA website and impressions on social media, the campaign won multiple industry awards.

“Red Bus”

The marketing of airlines to overseas visitors can often descend into cliched stereotypes.

Here’s a short film that looks at the start like it’s about to do that, but doesn’t.

Rooftop Cinema Club

Not strictly an advert, but a highly effective trailer shown before screenings at the Rooftop Cinema Club.

Continue reading “A History Of British Airways Advertising – Part 10”

A History Of British Airways Advertising – Part 9

A look at British Airways’ advertising over the past 50 years as BA seeks to recover from the financial crisis, delves into the past to relaunch its brand identity and tells passengers not to fly.

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British Airways "Taxi" Advertisement, 2012
British Airways “Taxi” Advertisement, 2012 (Image Credit: Bartle Bogle Hegarty for British Airways)

Welcome to the ninth part of our series on the most influential and noteworthy BA advertising of the past 50 years.

We turn towards the end of the first decade of the century. BA seeks to recover from the global financial crisis, delves into the past to relaunch its brand identity and tells passengers not to fly.

“Opportunities”

The collapse of Lehman Brothers in September 2008 had a huge impact on BA.

The airline’s financial lifeblood, long-haul premium traffic, fell away sharply.

BA swung from a profit of £922m in 2008 to a loss of £401m in 2009. There were even questions as to whether the airline would survive in its current form.

Here is a very softly spoken advertising campaign BA ran 12 months after the collapse of Lehman Brothers. 

It featured 9 films in total gently encouraging both business and leisure passengers to fly and pursue new opportunities around the world such as Mumbai Fashion week and the migration of wildebeest across the Serengeti.

The campaign was noteworthy in that apart from a reference to BA’s route network at the end of the voiceover, it does not make any specific reference to any relative benefits of flying BA, nor does it feature any visuals of BA aircraft or cabins.

Aviators

In September 2011, BA relaunched its brand by reintroducing the slogan “To Fly. To Serve.”

This had been a long part of BA’s heritage. It features on its Coat Of Arms. 

This advert “aviators” focuses the role of BA and its predecessor airlines in aviation history right from the very first flight on 25 August 1919. It is notable for its focus on the “hardware” of aviation rather than the softer aspects you usually see in advertising.

Continue reading “A History Of British Airways Advertising – Part 9”

A History Of British Airways Advertising – Part 8

A look at British Airways’ advertising over the past 50 years as BA ends its long-standing relationship with Charles and Maurice Saatchi.

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"Glide Through London Heathrow Terminal 5" Advert 2008
“Glide Through London Heathrow Terminal 5” Advert 2008 (Image Credit: Bartle Bogle Hegarty for British Airways)

Welcome to the eighth part of our series on the most influential and noteworthy BA advertising of the past 50 years.

We’re well into the 21st century as BA learns to embrace the internet, ends its long-standing relationship with Charles and Maurice Saatchi and moves to Terminal 5 at London Heathrow.

“Have you clicked yet?”

It may seem strange to think now, but when the internet first entered the public consciousness in the 1990s, airlines didn’t know what to do with it.

One of the most hyped websites of the late 1990s dot.com boom was lastminute.com which sells discounted flights, hotel rooms, and event tickets with late availability. 

And that’s how BA, which of course had well established distribution channels through travel agents, viewed the internet – a place for distressed inventory.

It took a while to get there but after securing the domain ba.com from Bell Atlantic, there was a realisation that it could be used as a primary distribution channel. It also allowed for self-service options so passengers arrive at the airport “ready to fly”.

“When the world zigs, zag”

In 2005, BA ended its relationship with Charles and Maurice Saatchi.

Bartle Bogle Hegarty secured the BA advertising account after a new tendering process that M&C Saatchi seemed destined to lose.

M&C Saatchi did not let go quietly. They took out a double page advert in The Times the following day championing their work for BA and advising that they are now “taking new airline bookings”.

They reportedly revelled in advertising industry gossip that BBH was initially having difficulty pleasing BA. Allegedly a letter was drafted headed “British Airways. Serves You Right.” with the text “Please feel free to use the strapline in your upcoming advertising. Alternatively, simply stick it to the wall and stare at it for the next few months/years.”

In 2007, Saatchi also remade “The Face” advert for the now defunct all business class airline Silverjet “Every day, Silverjet, the world’s most sivilised airline brings a select few people together”.

However, it’s not clear at whose expense the joke was: BA’s or the client that actually paid for the advert.

“Clouds”

This was BBH’s first TV advertising campaign for BA in 2006. 

You could say it was a very cautious, steady start. The advert featuring a cover of John Denver’s “Leaving On A Jet Plane” highlighting a commitment to service at affordable prices.  Some of the items featured such as complimentary short-haul catering are no longer offered.

“Upgrade to BA”

“Upgrade to British Airways” was the strapline BBH pitched to BA.

This film features a very familiar device in airline advertising. BA cabin crew hand out amenities to members of the general public in the attractive surroundings of Circular Quay, Sydney, with the intention of highlighting the thoughtful and friendly nature of its service.

“Attractive Prices”

These are very elegant executions of a simple message about the pricing of short-haul fares on ba.com.

“The Good Life”

This was an advert that was never shown, at least in the UK.

Featuring fish swimming through Terminal 5 to the sound of “The Good Life” by Julie London, it was intended to showcase the opening of Terminal 5 in 2008.

Before launch, BA promised its passengers Terminal 5 would be “So Calm. You’ll just flow through”. Although Terminal 5 did eventually deliver a significant operational improvement for BA, it was pulled due to its chaotic opening weeks.

Continue reading “A History Of British Airways Advertising – Part 8”

A History Of British Airways Advertising – Part 7

A look at British Airways’ advertising over the past 50 years as BA recovers from the events of 11 September 2001.

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British Airways Club World Cabin, 2000

Welcome to the seventh part of our series on the most influential and noteworthy BA advertising of the past 50 years.

We’re in the first decade of the 21st century as BA starts to recover from the events of 11 September 2001 and spends considerable time promoting its Club World long-haul business class.

“It’s Better To Be There”

When there is a degree of a return to normality following the outbreak of Coronavirus, a challenge for airlines is deciding the right time to encourage passengers to fly again, and adopting the right tone of voice.

One such example was a TV advertising campaign “It’s Better To Be There” from early 2002. This was BA’s first major advertising campaign after the events of 11 September 2001.

An American businessman is featured receiving pitches from British businesses. One despatches its proposal by post and conducts the pitch by telephone. As the American businessman promises to give it due consideration a rival team walks into to conduct their pitch face to face.

“There Are Other Ways, Then There’s British Airways”

Ever since low cost airlines gained traction in the UK, and significantly brought down the cost of short-haul travel, BA has been in a battle to highlight its relative benefits.

Here is one such campaign from 2003. Of course, the differences today are not so great. Low cost airlines have adopted many features of legacy airlines such as allocated seating. BA now charges for seat selection, and checked baggage on some fares. Complimentary catering was also withdrawn amongst great controversy three years ago.

The Orchestra

This is what is called, in advertising industry parlance, a “masterbrand” advert. It does not promote one single service.

Former BA CEO Lord Marshall once likened arranging all the different elements BA’s service to that of an orchestra.

Here a male passenger travels from New York to meet his family on a beach, accompanied by an orchestra every step of the way.

There was absolutely no expense spared. The advert was filmed in New York, London and Mozambique. Most scenes barely last a second and there are countless aerial shots.

Continue reading “A History Of British Airways Advertising – Part 7”

A History Of British Airways Advertising – Part 6

A look at British Airways’ advertising over the past 50 years as BA unveils a new corporate identity and introduces the first flat beds in business class at the turn of the century.

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British Airways Boeing 777-200 Project Utopia Livery
British Airways Boeing 777-200 Project Utopia Livery (Image Credit: British Airways)

Welcome to the sixth part of our series on the most influential and noteworthy BA advertising of the past 50 years.

We’re now in the late 1990s where BA unveils a radical new visual identity, prepares for the new millennium, and brings about a revolution in long-haul business class.

“The World Is Closer Thank You Think”

The unveiling in 1997 of BA’s new, and now ill-fated, brand identity was an act of 1990s excessive indulgence.

BA, with the assistance of the BBC, held an outside broadcast from 25 locations around the world. It featured the unveiling of new aircraft liveries by BA and its franchises and subsidiaries at locations such as Heathrow, Munich, Seattle and Victoria Falls. And as if that wasn’t enough, it was also supported by events such as fireworks at Sydney Harbour.

It was intended to be a full repositioning of the airline. It of course became famous for the “World Images” aircraft tail fins and the adverse reaction to them from certain quarters.

The unveiling of the new corporate identity was also supported by a new TV advertising campaign “The world is closer than you think.” featuring a new version of The Flower Duet remixed by Dave Stewart.

PJ O’Rourke – “Johnny Foreigner”

The adverse reaction to the “World Images” tail fins demonstrates the often uneasy relationship BA has had with its home nation.

In 1999, BA recruited the American writer PJ O’Rourke to poke fun at British eccentricities and, to the soundtrack of “I Vow To Thee My Country, give viewers a gentle ticking off for not being more proud of their de-facto national carrier.

(Many passengers would say in response that BA hasn’t always made it easy for itself to be loved.)

“The British Simply Know How To Travel”

How countries are perceived by their own residents and visitors varies widely and this is often reflected in airline advertising.

Here in 2000, BA used the strap line “The British simply know how to travel” in its advertising in the United States to highlight the clear difference between BA and US carriers at the time, as illustrated in this advert featuring British astronauts enjoying cricket and strawberries.

Continue reading “A History Of British Airways Advertising – Part 6”

A History Of British Airways Advertising – Part 5

A look at British Airways’ advertising over the past 50 years as BA predicts a post-apocalypse future.

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British Airways Club World Cradle Seat
British Airways Club World Cradle Seat

Welcome to the fifth part of our series on the most influential and noteworthy BA advertising of the past 50 years.

To the mid-1990s where BA uncannily predicts a post-apocalypse future. The airline gives away free Concorde seats to Lapland and upgrades its Club Europe and Club World cabins.

“Where Is Everybody?”

We start with an advert from 1994 with scenes of the streets of London that would have been unthinkable more 25 years ago, but ultimately proved to be prescient.

Airlines normally advertise promotional offers with enticing images of the destinations on offer. 

This advert doesn’t do that. Instead, the viewer is presented with a post-apocalyptic vision.

A man wakes up to find an empty home, no TV or radio services, no rail services operating and empty streets as the entire city of London is deserted.  

On first view, it is only at the end of the advert does the viewer have any clue as to what it is for (if you watch it back you’ll hear the sound of an aircraft taking off at around 11 seconds in).

To present the viewer with such an uncertain vision was a brave way of conveying a promotion that could otherwise have been presented in a very ordinary and unremarkable way. 

“Do You Believe In Concorde?”

In addition to regular scheduled flights to Barbados and New York, BA used to operate Concorde charter flights to scores of destinations around the world.

At Christmas, Concorde used to operate special flights to Rovaniemi, Lapland. In a Christmas promotion, BA gave away 1,000 seats on Concorde flights to Lapland.

In a TV advert that says just enough, but not too much to spoil Christmas for many young children and their parents. When told by her father that he has won tickets to Lapland on Concorde a child replies “I don’t believe in Concorde”.

Club Europe Space Seats

BA’s current short-haul business class brand, Club Europe, was first introduced in 1988.

The cabin underwent a relaunch in 1994 as BA introduced wider convertible seats.

Continue reading “A History Of British Airways Advertising – Part 5”

A History Of British Airways Advertising – Part 4

A look at British Airways’ advertising over the past 50 years as BA addresses the aftermath of the 1990 Gulf War and tries to create a second London hub at Gatwick.

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"The Face" British Airways, 1989
“The Face” British Airways, 1989

Welcome to the fourth part of our series on the most influential and noteworthy BA advertising of the past 50 years.

We’re approaching the early 1990s as BA produces its best ever TV advertisement, the airline faces the aftermath of the 1990 Gulf War and tries to develop Gatwick airport in to a second London hub.

“The Face”

When the idea for what is possibly the greatest airline advertisement of all time was presented by Saatchi & Saatchi to BA, it is existed solely as a rough scribble on a single sheet of paper.

BA had asked Saatchi to prepare a new blockbuster advertising campaign. Saatchi presented two ideas, which by its own admission were fairly unremarkable, to an unimpressed client.

Saatchi then pulled a rabbit out of the hat. Out came a crumpled piece of paper bearing a sketch with the fairly unappealing sight of a disconnected smiling mouth, an eye, and a nose and a scribbled face.

But BA bought into the idea. And “The Face” was born.

The advert was directed by Hugh Hudson and filmed in Utah using local school children with a budget of £1m. Saatchi & Saatchi called on the choreographer of the Los Angeles Olympics opening ceremony to direct the movement of the participants. 

To the sound of “Aria On Air” by Malcolm Mclaren, the voice-over by Tom Conti, says “Every year the world’s favourite airline brings 24 million people together.”

Save for the roar of Concorde at the end of the advert, images and sounds of aircraft are entirely absent. The advert was seen by 600 million people in 70 countries.

“Arrive Home”

Part of the genius of Saatchi & Saatchi’s work for BA was the recognition that the claim to be “The World’s Favourite Airline” would not be enough to win the hearts and minds of passengers.

The airline had to show a human side as well. 

As anyone who has ever done any significant amount of business travel knows very well, it is nowhere near as glamorous as people think it is. Very often, by far the best part of any business trip is returning home.

These three print adverts from the early 1990s featuring small moments of business passengers returning home to be with their families recognise that airlines getting people back home is just as important as the trip itself.

British Airways "Arrive Home" Advert (Figures)
British Airways “Arrive Home” Advert (Figures)
British Airways "Arrive Home" Advert (Quarterly Results)
British Airways “Arrive Home” Advert (Quarterly Results)
British Airways "Arrive Home" Advert (Presentation)
British Airways “Arrive Home” Advert (Presentation)
Continue reading “A History Of British Airways Advertising – Part 4”

A History Of British Airways Advertising – Part 3

A look at British Airways’ advertising over the past 50 years as BA is privatised, introduces “Club World” and reflects “Wall Street” culture.

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British Airways Club World Ticket Wallet
British Airways Club World Ticket Wallet

Welcome to the third part of our series on the most influential and noteworthy BA advertising of the past 50 years.

The late 1980s was arguably BA’s “imperial phase”.

The airline was successfully privatised in 1987. BA was in no doubt it had the potential, through its own routes, franchises and shareholdings in other airlines, to become the dominant player in global aviation.

Speaking in 1989, former CEO Colin Marshall set out BA’s ambition: “There has never been a global airline, in the truest sense.”

“Britain’s Highest Flying Company”

1987 was the year of “Big Bang”.

The City of London was deregulated. The film “Wall Street” featured Michael Douglas as Gordon Gekko. It was also the year of BA’s privatisation.

Nearly ten years after the UK Government first officially announced plans to sell a stake in BA in 1979, the airline was fully privatised on 11 February 1987. 

This was the result of a huge turnaround in both financial performance and public perception. 

In 1982, the Financial Times quipped that privatisation of BA might lure some investors, but only because “every market sports a few masochists.” 

BA was of course a number of state industries to be privatised at the time. Whilst the British Gas privatisation was infamous for the “Tell Sid” adverts on UK television, BA’s was supported a huge marketing campaign around the world in the US, Canada, Japan and Switzerland. The initial share offering was 11 times over-subscribed. 94% of BA employees bought shares in the airline. 

Here is a rather self-congratulatory advert “Monument” from 1987, highlighting BA’s superior financial performance at the time.

More people choose to fly British Airways to more places than ever before. That’s why all around the world it’s saluted as the world’s favourite airline.

In fact, it’s been turned into one of the world’s most profitable airlines.

Even here in Britain one does detect a certain sense of pride in the fact that British Airways is now bringing in a gross revenue of over 300,000 pounds every hour. That’s the kind of success you have to take your hat off to.

The world’s favourite airline is Britain’s highest flying company.

“Pleasant Trip”

In 1988, BA introduced the Club World brand to its long-haul business class.

In an advert for Club World and a reflection of contemporary dog-eat-dog culture, a group of colleagues think they have set up a colleague from New York to fail by despatching him on a Red Eye flight to London “Like a lamb to the slaughter, gentleman”.

Continue reading “A History Of British Airways Advertising – Part 3”