Wednesday 8 February 2012

Thoughts on Snow

Just had a snowy beginning to the week and once again England is in chaos with everybody complaining about the roads, the rails, the airports.  I agree that once again the system has messed up, however one must consider the point of view of British Air.

(Sarcastic speech). Preparing  the airports for snow, which may not arrive, is costly and time consuming, thus irritating to the share holders.  Therefore, it is much better, financially, to not prepare for the snow and just deal with it when it does arrive.  After all, if lots of passengers are booking in but their flights are cancelled, not only do you claim the money from their tickets, they also spend money in your airport, thus providing you with a greater profit margin.  In short, the share holders prefer airports that do not prepare for snowy weather because it gives them a larger quarterly statement.