The Business Failure Behind BA's Crisis

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It really hasn't been a good week for aviation, has it? Leaving aside yesterday's horrifying crash, BA's problems with sympathy strikes and catering suppliers monopolised headlines all weekend. Now BA claim that they're being affected by an internal dispute within the supplier firm, Gate Gourmet.

Flight International disagrees:

Behind the Gate Gourmet dispute is the chronically deficient
business model in which airlines rely utterly on robust, 24/7, service
from caterers, ground-handlers and so on but are not willing to pay a
sensible price for them. So margins and reward-packages at those
suppliers are in perpetual conflict - in this case a dose of
heavy-handed US labour relations (Gate Gourmet is owned by Texas
Pacific Group) was all it needed to ignite the tinderbox.

Cost reduction is all well and good, but when it hits customer service, it's time to rethink, especially in aviation.

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About this Entry

This page contains a single entry by Adam Tinworth published on August 15, 2005 11:01 PM.

If Bloggers Had Been Around Throughout History was the previous entry in this blog.

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