Qatar Airways takes $1.7 billion stake in British Airways-owner IAG -Reuters

British Airways, ‘Fly the flag’ advert is no longer appropriate as Qatar Airways buys a sizable stake in British Airways. The Reuters article is worth a read. Check it out!

via Qatar Airways takes $1.7 billion stake in British Airways-owner IAG.

Most full-service airlines, like British Airways, are a shadow of their former selves and these days trade on their brand. Take a hard look at the reduced number of scheduled routes these days.

Part of the problem with full-service airlines, like British Airways, is the heavily unionized staff which have made the airlines unable to compete effectively with the budget airlines. It’s also about ineffective  management and the broken business processes. Most importantly, these businesses are process-driven, rather market-driven. Have you tried to phone British Airways recently?

In my judgement, budget airlines like Air Asia are far better value than the likes of British Airways.

Surely, this is the beginning of the end for British Airways?

Thoughts?