United Kingdom
United States
Asia Pacific
BA boss attacks US “protectionism”
A senior British Airways executive has hit out at American “protectionism” which is keeping many US carriers afloat.
BA’s general counsel Robert Webb attacked state hand-outs to carriers in the US and Europe.
Speaking at a Carlson Wagonlit Travel Northern Europe conference in London, he said it was impossible to ignore the huge amounts given by the US government to its airline industry.
“We are opposed to US protectionism and state aid in general,” he said. “We are currently trying to stop various European carriers getting state aid. If that culture is allowed to continue for long you get raped.”
Referring to BA, he said: “We are not drowning, but we are not safe, in part because of American protectionism.”
Mr Webb added: “There has been $2 billion given to United Airlines alone. The costs of enhancements to security were mainly borne by the US government and there has also been significant relief from pension commitments.
“It’s surprising how there are still people who believe BA gets support from the government. It does not. Our insurance bill was £25 / $45 million a year before September 11. It is nearly £100 / $180 million now – and we pay that.”
Referring to BA’s profits of £230 / $415 million last year, with a five per cent operating margin, Mr Webb said: “We want an operating margin of 10% to fund the business. In 1998 our shares were £7.20. In the following four years they dropped to 89 pence. They are currently £2.50.
“The company is now worth nearly more than the deficit in the pension fund. We have to honour our pension fund. People are living longer and all pension schemes are under strain.
“We are a £2 / $ 3.6 billion company with an £8 / $14.5 billion pension fund. Being a start up airline is far easier than being a legacy carrier.”
Report by Phil Davies
Related News Stories:
Phil Davies
Kittipong Prapattong’s Plan for Thailand’s Tourism Growth: Taxes, Visas, and Campaigns
James Jin: Didatravel’s Journey from China to Global Reach and the Impact of AI on Travel
Darien Schaefer on Pensacola’s Evolution: From Small Town to Global Destination
Florida Tourism’s Next Frontier: Dana Young on Expanding Beyond the Classics
Patrick Harrison on Tampa Bay Tourism’s Resilience and Marketing Strategy
Bubba O’Keefe on Clarksdale’s Vibrant Music Scene
Commemorating Elvis and Embracing Tupelo’s Culture with Jennie Bradford Curlee
Craig Ray and the Expansion of the Blues Trail
Presenting Mississippi’s Cultural Trails with Katie Coats
Robert Terrell: A Journey Through BB King’s Influence
Rochelle Hicks: Celebrating Mississippi’s Musical Legacy
Exploring Jacksonville with Katie Mitura: The Flip Side of Florida
Dozens fall ill in P&O Cruises ship outbreak
Turkish Airlines flight in emergency landing after pilot dies
Boy falls to death on cruise ship
Unexpected wave rocks cruise ship
Storm Lilian travel chaos as bank holiday flights cancelled