An Economy British Air Can't Afford
British Airways PLC chief executive Robert J Ayling dismisses skeptics who have assailed company's dismal financial performance and have questioned his unusual plan to reverse it by reducing market share of his airline, Europe's largest; company reports its fiscal second-quarter earnings fell 86 percent; earnings totaled 30 million pounds, or $48.6 million, down from 216 million pounds a year earlier; six-month earnings fell 37.2 percent to 218 million pounds, and company is expected to report annual loss this fiscal year for first time since airline was privatized in 1987; Ayling is putting his own, somewhat diminished, reputation on line as he tries to remake airline; he is reducing its overall passenger capacity by 12 percent in effort to weed out low-cost fares, and cater more to first- and business-class passengers who pay fares that are higher and push profit margins up; photo (M)
