Blistering Attack On Monopoly Suppliers

London, Tuesday, July 13, 1999: A blistering attack on monopoly service suppliers to the world airline industry has been launched today by British Airways.

Bob Ayling, the airline`s Chief Executive, speaking at the carrier`s annual general meeting in London`s Barbican Centre this morning, said liberalisation and deregulation in the industry had brought great benefits to consumers, with falling prices and better service the clear result of competition.

But, he added: “We need to ensure such competitive disciplines are also at work on the monopoly suppliers who serve our industry - like airports, air traffic control systems and some manufacturers.

“We cannot allow a cost-plus mentality, now abandoned by the airlines themselves, to destroy our shareholder returns and to reduce consumer benefits.

“We still have too many monopoly suppliers around the world who haven`t yet woken up to the reality of the deregulating world. We still see single digit, and even double digit, cost increases.


“From now on, we must see supplier cost reductions in line with our passenger yield reductions. If the airline`s yields fall by 10 per cent, then our costs must also fall by
10 per cent.”