... finances of UK-based international trading businesses, which represent the core customer base. The Business Segmentation (figure 1) of mainline business shows the drag on business created by the poor performance in economy transfer markets. More than half of the value being destroyed is accounted for by long-haul to short-haul transfer passengers. Equivalent analysis of each segment by hub also highlights the difficulty created for British Airways by its split-hub operation, which is reflected in the poor performance of the Gatwick operation. Fleet and Network Strategy The new strategy aims to reduce our exposure to unprofitable market segments - short-haul and connecting leisure passengers - while strengthening our position in profitable markets which depend heavily on business travel to/from UK. British Airways is reducing aircraft size on key routes, cutting out excess capacity while maintaining frequency of service to key destinations. This fleet and network strategy is supported by investment in improved comfort and ...

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