British Airways’ boss calls on ministers to take accountability over travel chaos

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British Airways

The boss of British Airways’ owner Luis Gallego has pointed the finger of blame at the government after weeks of travel chaos have seen cancelled flights and lengthy airport queues.

In an interview with The Sunday Times, the airlines chief said the government had to “take some accountability for all this,” referring to the shortage-induced travel disruption seen at airports across the country.

Passenger demand has surged in the past couple of months while airports have been hit with staff shortages.

Ministers have criticised airlines and airports in recent weeks, with transport minister Grant Shapps saying the sector should stop overselling flights and make receiving compensation a simpler process.

However, International Airlines Group’s boss Gallego has said the government must work with the aviation sector “in a constructive way.”
He said: “They have said the problem was that we overbooked and didn’t forecast demand, but forecasting demand is one thing we as airlines know how to do.”

“The more difficult thing has been to forecast what the government is going to do,” he added.

In reference to criticism from Shapps, Gallego said: “We were surprised and we want to explain what is happening, because it is not fair to tell the public that this is all caused by the airlines.

“Can we do it better? For sure. Do we have our own problems? For sure. But everybody needs to understand they can do things better.”

British Airways was reported to have cancelled 110 short-haul flights to and from London Heathrow airport on Friday.

The firm is readying for a row with shareholders at its meeting this week over Gallego’s financial rewards.

While IAG has advised shareholders to give the greenlight to a boost in Gallego’s share awards, critics have expressed displeasure at this idea, given the company’s shares are still recovering to their pre-pandemic levels of glory.

Sceptics including Institutional Shareholder Services, Glass Lewis and Minerva Analytics have dubbed the package as “excessive” and called on shareholders to vote down the proposal.

It comes as budget airline EasyJet has cancelled more than 1,500 flights over the past three weeks.

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British Airways’ boss calls on ministers to take accountability over travel chaos

Overcoming automation assumptions can help influence business strategy

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Freeing up staff to focus on value-adding activities, automation is of interest to many businesses.

We speak to Leon Stafford, UK Country Manager, Digital Workforce, to find out more about the latest in business automation. 

Leon, what is the likelihood of business automation being more accepted in the coming years?

The journey to mainstream acceptance for new innovations follows the same pattern. It’s so predictable that Gartner even has a name for it: the Hype Cycle. From the initial excitement at the beginning, to heightened expectations and subsequent disillusionment, before gradual acceptance and widespread use, every technology currently in use by businesses has gone through that process. 

Automation, and particularly business automation, is no different. The theory behind using automation is solid, with significant benefits for a wide range of organisations in many industries. And with the likes of the Great Resignation making it even harder to acquire the right talent businesses need to grow, being able to automate a variety of tasks, and in doing so free up staff to focus on value-adding activities, is of interest to many businesses. 

Is it true to say that most people’s initial assumption of automation is that it’s bad?

Yes many people are put off by what they’ve heard or seen. They assume that implementing business automation requires significant upfront investment, and that the only people available to deliver deployments are either expensive consultancies, such as one of the Big Four professional service firms, or start-ups with no proven capabilities. 

There is some truth to these preconceptions, or at least, there used to be. That is now changing, however, and that mindset is becoming outdated.  

For instance, more automation vendors are tapping into a technology that has already gone through the Hype Cycle – cloud – to offer the likes of business automation on an as-a-service basis, providing access to powerful tech without major capital expenditure. 

As well as reducing the risk for the customer, it also means smaller projects can be considered for automation. When major investment was required, the trade-off needed to be similarly spectacular – whole departments automated, for example. But if teams wanting to use automation haven’t had to make such a big business case, then that means their projects don’t need to be as big to begin with. 

As such you’re lowering the barrier to benefit from business automation?

Yes, not only does this mean that companies can effectively sandbox business automation by deploying it quickly on focused projects, try new things, get results rapidly and then reiterate, it also means that automation becomes a viable option for smaller organisations, or ones with less resources. 

Now, everyone gets the opportunity to take small yet strategic steps to automate certain tasks, realise the value and justify increased investment and scope. And because they’re getting results back fast, they’ve got real-world data with which to tweak and tailor their strategy and objectives. 

Are businesses playing the long-haul game with automation? Overhauling everything and creating strategies to blend it in?

As an example, it’s something sustainability certification and net zero programme Planet Mark found when it wanted to automate key parts of its analyst function. 

The company helps businesses to achieve their sustainability goals by measuring continuous   progress, engaging a businesses stakeholders and communicating their achievements externally Planet Mark has enjoyed significant growth as businesses have sought to measure their environmental efforts. Scaling was challenging; a lot of what Planet Mark does is complex, relying on experienced individuals to analyse data with specific skill sets. 

This high-performing, experienced group of individuals performed some of Planet Mark’s most complex tasks, but they also had manual administration to complete that took up time. To fix this, the business looked at a number of different solutions. While it was open to automation, it had several preconceptions (specifically, that it required CAPEX and partnering with a major consultancy that might be too big for Planet Mark). To tackle this, it undertook a discovery phase, and in doing so realised that there were ways of deploying business automation that would not only meet the specific goals for the automation project but could have wider ramifications for the company. 

As such, it has stopped at the discovery phase to go back and redesign its strategy, factoring in all the opportunities automation could generate across the organisation. 

So it’s right to say that automation is worth a second consideration now …

Yes, definitely. Planet Mark is only at the beginning of its automation journey, and other companies may have already tried business automation in the past. In that instance, making the case for renewed investment must overcome significant opposition which will be based on real-world experience, albeit from a time before automation-as-a-service was feasible.  But even those companies can learn from Planet Mark’s example and how it demonstrates that investigating automation in the right way can have an impact on the wider organisation.

Automation is just the latest in the long line of innovations that will go through the Hype Cycle. Some flame out, and never reach mainstream acceptance. But automation is already proving its value to a wide range of entities. Those companies that do not wish to be left behind need to put aside their preconceptions and assumptions and look again at how business automation could be deployed in a way that suits their organisational structure and business model, while helping them achieve their goals. 

EU considers building new gas pipeline – media

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A 700-kilometer offshore link between Italy and Spain could help reduce energy dependence on Russia, El País reports

The European Commission (EC) is studying the possibility of building an offshore gas pipeline that would link the Iberian Peninsula with Italy, the newspaper El País reported on Wednesday.

Connecting Italy to Spain would be significant, given that Spain has the largest capacity for regasifying liquefied natural gas (LNG) in the European Union. There are six operating regasification plants in Spain, according to the report. However, the country’s pipeline connection with most of the rest of the EU is limited because of the high Pyrenees mountains, which form the border between Spain and France.

According to El País, the 700-kilometer pipeline between Barcelona in Spain and Livorno in Italy appears on one of the maps in the REPowerEU plan. Constructing it is expected to take one to two years and will require an investment of between €2.5 and €3 billion ($3.2 billion). The pipeline could supply gas to both Italy and the countries of central and northern Europe, it said.

Spanish Prime Minister Pedro Sanchez said in an interview with CNBC on Monday that Spain and southern Europe as a whole could help reduce the EU’s energy dependence on Russia. He noted that Spain accounts for 37% of the EU’s regasification capacity.

Russia has been a major supplier of gas to European states. EC data shows the European Union receives 40% of its gas, 27% of oil and 46% of coal from Russia. EU members agreed to cut out Russian coal but have failed to reach a consensus on proposals to ban Russian oil imports. The difficult-to-replace pipeline gas also remains a stumbling block as the union discusses its sixth package of sanctions.

US to airlift baby formula from Britain

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‘Operation Fly Formula’ aims to tackle the national shortage crisis

The US government has allowed powdered infant milk imports from the UK, the Food and Drug Administration announced in a statement on Tuesday, as the country is grappling with a severe shortage.

British family-owned company Kendal Nutricare will deliver around 2 million cans of Kendamil brand formula to the US by June, the FDA said. According to The Guardian newspaper, 100 truckloads of powdered milk – which was used by the royal family to wean Prince Louis of Cambridge – will be sent.

“We continue to do everything in our power as part of the all-of-government efforts to ensure there’s adequate infant formula available wherever and whenever parents and caregivers need it,” said FDA Commissioner Robert Califf. Roughly 40% of baby formula products are out of stock nationwide, data shows.

Last week, the White House eased import requirements and announced an effort to transport baby milk from abroad dubbed ‘Operation Fly Formula’. The US normally produces 98% of the infant formula it consumes, with imports mainly coming from Mexico, Ireland and the Netherlands. Companies seeking to enter the US market face formidable hurdles, such as rigorous research and manufacturing standards imposed by the FDA.

On Sunday, a military plane carrying enough powdered milk to fill half a million baby bottles arrived in the US from Germany. The delivery of the Nestle-made formula is expected to cover about 15% of the nationwide shortage.

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Similac baby formulas are seen at empty baby formula section shelves at a Target store due to shortage in the availability of baby food on May 17, 2022, in New Jersey, United States. © Tayfun Coskun / Anadolu Agency via Getty Images
US baby formula shortage is a symptom of a broken system

The baby formula shortage began to take hold in the US last year amid supply chain issues caused by the pandemic. However, the situation deteriorated in February when Abbott Laboratories, one of the nation’s main manufacturers, recalled some of its products and shut down a manufacturing plant after four babies who had been fed formula made at the facility contracted a rare bacterial infection. Two of them later died.

Abbott said last week that after investigations by the FDA, Centers for Disease Control and Prevention (CDC) and by the company itself, no conclusive evidence was found to link its formulas to those incidents. The plant is now set to reopen in early June.