Saturday, March 28, 2009

BA bids bye to Calcutta of low yield

Calcutta: When British Airways takes flight from Calcutta on Sunday, it will mean more than just another direct international air link going off the city’s radar.
The “world’s favourite airline”, which had touched down in the city for the first time in the late 1920s, has withdrawn and re-introduced flights several times over the decades. The airline’s latest departure, however, bodes trouble for both the travel industry and frequent fliers from the east who have found this direct Calcutta-London flight the most convenient link with Europe and beyond.
“British Airways leaving is a disaster for aviation in the east. We will soon feel the repercussions,” warns Anil Punjabi, the chairman (east) of the Travel Agents Federation of India.
With just over 24 hours to go for the last British Airways flight to touchdown and depart — arrival 1.15am on March 29 and departure 5.05am on March 29 — Metro compiles a Q&A on BA bidding bye-bye.
What are the reasons for an airline leaving a city?
Low profitability, security issues, low passenger load.
What prompted British Airways to leave Calcutta?
The official reason is “route rationalisation”. Apart from Calcutta, the airline is pulling out of Dhaka. “This route is not making a profitable contribution to our business and we are unable to sustain it,” says a senior airline executive.
The real reason is low profitability. The thrice-a-week Calcutta-London flight has had an average passenger load of 70 per cent but yield — or profit margins — has been low. “Most tickets, including those for business class, are sold at discounted prices that pinch our bottomlines,” says an official.
28/03/09 Sanjay Mandal/The Telegraph
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