BA Gatwick strategy draws Ryanair scorn but analysts’ encouragement

Ryanair chief Michael O’Leary has scorned British Airways’ proposals to establish a lower-cost short-haul subsidiary at London Gatwick, but the idea is being viewed favourably by analysts at banking group HSBC. BA’s short-haul operation at Gatwick has been on hold, as a consequence of the air transport crisis, but the suspension is complicated by the reinstatement of slot-utilisation thresholds. CE Sean Doyle stated at the end of July that the airline had the “flexibility” to “hold the slot portfolio” at Gatwick for the winter, but was looking at “options” for summer 2022. “We need to be competitive because the market will be very competitive coming out at the other end of the pandemic,” he said. “We probably going to be communicating plans in relation to Gatwick dependent on discussions we’re having with our stakeholders.” BA has yet to confirm details of the Gatwick strategy, but union representatives have confirmed that discussions centre on a new short-haul subsidiary. The airline had tentatively agreed – prior to the crisis – to acquire up to 200 Boeing 737 Max jets, signalling that a number would be deployed at Gatwick for short-haul services.<br/>