OK this is getting confusing, but my point is.....BA gives away seats when they have them and fill up the business cabin that way at the last minute. Qantas tells you there are no seats available and fly half empty cabins.
All of this is true. (Well, I can't verify if BA "gives away seats" etc.) So as a plain observation, you're right.
Now, is this a good thing or a bad thing?
From a customer's point of view, some people think this is a bad thing, i.e. a plane goes with premium seats begging that some pax have been unable to get, whether it be through attempting to sweet-talk the check-in/lounge/gate agent(s), or through an attempted points upgrade that was declined.
When QF tells you that there are "no seats available", they really mean "no seats available
for you", not that the cabin is completely full. It's easier to say the first one since it is less direct and avoids having to give every customer a lecture on yield management. (Of course, then the customer believes that a corporation is putting profits ahead of customer service, since many believe it's their God-given right to receive an upgrade, especially if they have all the "resources" (e.g. points, cash) to obtain one "by the rules".)
On the other hand, because of QF's astute yield management (amongst other things), this is mainly why QF is weathering the whole GFC a bit better than some of its colleagues. It so turns out that it
may be more profitable to fly a cabin less than full rather than one that is full of pax who are simply there on the cheap. Is
this a good thing? Well, in some cases yes, since shareholders still need to be appeased, plus the last thing we want (unless you travel DJ or the like) is another Ansett story (replacing 'Qantas' for 'Ansett'). Mainly as well (and this has been said many times), the value of the premium cabins are preserved since there isn't an expectation that
if I can purchase a cash Y ticket for a lot less than a J ticket, then I can use my points simply to upgrade to J. If it was
that easy, why would anyone ever pay for J in cash unless you had money to burn (
literally)?
Customers hardly ever see the good in a profitable airline, or any profitable business for that matter. All they care about is getting what they want as cheap as they are ready to tolerate it. Often it's a case of, "why should I care how much it costs you? I'm the customer, I paid for it (with cash, points, whatever), I'm entitled to it, you are
able to do it, make it happen and read my lips -
I don't care". Balancing profits and customer value is a precarious and delicate art (not a science), but for all their faults (at least according to our reliable mainstream media
), I think Qantas are doing a fairly decent job.
I'd imagine that BA is in financial trouble not just due to "giving away seats" (so to speak).