tag:blogger.com,1999:blog-6093560390959788459.post2173565300860644084..comments2024-03-21T09:29:25.220+00:00Comments on The Financial Crimes: Walsh: it gets worseAlexhttp://www.blogger.com/profile/13775753218753337766noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-6093560390959788459.post-14904741332421496852010-09-06T15:53:52.595+01:002010-09-06T15:53:52.595+01:00Walsh is running BA like one of those business sch...Walsh is running BA like one of those business school simulations and he looks like he is going to be the player that runs out of chips first.<br /><br />Hired to run one of the better run flag carriers, Walsh decided that low cost airlines were the way to go (because that was what everyone else was doing) and slashed the number of UK routes operated by BA.<br /><br />He then decided that wasn't working out and so he tried to merge BA with Qantas which didn't go through, and by which time he was getting desperate and merged with Iberia. <br /><br />So this was going to be an English speaking or a Spanish speaking retail service industry - I think it is plain that they got that wrong from the start.<br /><br />Then Walsh decides that the reason for the merger is because the place to be investing is not actually Spain or Europe, but somewhere on the other side of the world .... because there is going to be growth. Could be India, oe China ... or Brazil.<br /><br />The only trouble is<br /><br />1. The rest of the world knew that years ago and still chooses not to invest too fast.<br /><br />2. Neither Walsh, BA nor Iberia know about growing new businesses; BA and Iberia have been stable or declining for years, and all Walsh has done is run Aer Lingus and BA into the ground.<br /><br />3. Walsh knows nothing about China, India or Brazil. If investors wanted to put their money into those countries, they would go with someone who did. Aircrew, ground staff and ticketing staff can be hired in, but local management with good political connections are crucial, and BA doesn't have that.<br /><br />4. If you are in charge of big businesses, you can't go off punting on new businesses unconnected to your existing business. the growth in India, China or Brazilian flights are domestic or regional. Not many of them are trying to get to Milton Keynes. Ignore your main business and it will collapse.Alexhttps://www.blogger.com/profile/13775753218753337766noreply@blogger.comtag:blogger.com,1999:blog-6093560390959788459.post-80608707081143400212010-09-06T14:25:16.812+01:002010-09-06T14:25:16.812+01:00It seems that their autopilot is taking them in th...It seems that their autopilot is taking them in the direction of the Himalayas. Unluckily their flight capability only goes as high as 15,000 feet.Demetriushttps://www.blogger.com/profile/17198549581667363991noreply@blogger.com