Bottoms up
AIR ZULU may be repainting its tailplanes in British Airways' colours, but there is an obstinate streak of red in the profit and loss account. It shows up in the figures for the three months to 30 June, out this week, and I am told that, if I think they look bad, I should see the bookings for July and August. In the pilot's chair, Robert Ayling hopes to pull out of this tailspin by cutting costs, axing unprofitable flights, and attracting more bottoms to his more expensive seats. Europe — the old British European Air- ways — is the reddest patch in his accounts, so he may have trouble with his chairman, Lord Marshall of Knightsbridge, that tire- less advocate of all things European. As for the premium bottoms, their owners were not amused by the Air Zulu tailplanes, wished on Mr Ayling by consultants who thought the airline should be more relaxed and less formal — less British, in fact. That may have been what the backpackers want- ed to hear, but Mr Ayling has discovered that he makes no money out of flying them. It is a matter of brand management. A brand is an asset and the only one that an airline cannot hire. A premium brand com- manding premium prices is itself an asset of great price, and needs management and maintenance every bit as much as a fleet of airliners. Failures and false economies have to be paid for. We must hope that Mr Ayling does not find this out the hard way.
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