British Airways And The United Kingdom

At the present time, the airline industry faces many cost pressures. The industry has made remarkable achievements in improving its efficiency. But cost pressures continue, from record high fuel prices to unjustified increases in charges from monopolistic airports, to further taxes imposed by governments (industryspotlight.org.uk). Higher costs inevitably lead to higher prices for airline passengers. Aviation is vital part of the United Kingdom. It is not only crucial in sponsoring almost 1 million jobs and £50 billion of GDP, providing around £8.7 billion in taxes to the Treasury of the country, but aviation is also fundamental to the success of economic benefits from air transport in the United Kingdom (Roberts-Hughes, 2014). Aviation supports exports, services, manufacturing, foreign direct investment and of course tourism. This sector gives us opportunity for the holidays and visits of family and friend in different parts of a country and also around the world.

declares. For e.g. if government spending is increased, it will have positive impact on BA because there will be an increase in the amount of injections, expenditure in the economy (subsidies, grants or development in airline industry, newer plans of the BA, buying some raw materials/ technologies for the cargo and normal flights) will rise and so national income will rise. Therefore there will more customers will be flying during this period due to the lower tax

British Airline PLC (BA) is the largest international airline that operates out of the Heathrow airport in London. The company recently merged Iberia which was initially proposed in 2009 and was approved by the European Commission in 2010. A new organization was created known as International Airlines Group (IAG) which is the world's third largest airline in regards to total revenue as well as the second largest airline group in Europe. British Airways was the creator of the Oneworld airline alliance in which it has formed a strategic partnership with other industry players such as American Airlines in the U.S. and Qantas Airlines in Australia. Given the size and breadth of the company, a stakeholder analysis must cover a lot of ground. This analysis will look at the different groups of stakeholders that are concerned with the performance of this organization.

According to data monitor, British airways had conflict over labour and wage issue plus it being suffering from bargaining power due to collective bargaining agreement and labour in may 2010. They also went on strike that accumulated a cost of about 150 million.

British Airways PLC (BAY-LN) focuses on international and domestic scheduled and charter air services for the carriage of passengers, freight and mail. The Group 's is globally allied and holds code share arrangements agreed with Finnair, Iberia and Cathay Pacific. In an attempt to compete backwards in order to better control competition.

British Airways group consists of British Airways Plc and there are also a number of subsidiary companies such as British Airways Holidays Limited and British Airways Travel Shops Limited. The cargo service offered

550 destinations. The British Airways group consists of British Airways Plc and a number of subsidiary companies including, among others, International Aeradio, British Airways Helicopters serving mainly the North Sea oil rigs and British Airways Holidays Limited

British Airways (‘BA’ or ‘ the Company’) is the largest international airline in the UK, and it also leads the global premium airlines in the world (British Airways, 2014; MarketLine, 2015). BA’s principal company has been located in London and uses Heathrow Airport as its ‘super hub’. BA owns Heathrow Airport Terminal 5, which has been evaluated as the best terminal in the world, to provide high quality services for passengers (NDC Case Study, 2015).

The new group will combine the two companies in the UK and Spain and will enhance their presence in the international long haul markets while retaining the individual brands and current positions of each airline. British Airways and Iberia hope their new company International Airlines Group, International Airlines Group, will position the pair for further consolidation in the global airline sector as it emerges from a prolonged industry downturn and hope to compete with multinational rivals Air-France-KLM and Lufthansa.

You will investigate the British Airways and provide a personal, but informed, view of the company. The assignment will give you the opportunity to apply your understanding of the Business Environment to the analysis of an international business from a range of different perspectives: considering how businesses set their objectives, influence their stakeholders, control their costs and fix their prices within the context of a particular national environment (the UK). The submission should be suitable for publishing in a specialist ‘business’ magazine.

In today’s business world, Aviation industry is frequently developing rapidly in order to compete among each other and survive in the larger markets leading to aggregate competition between low cost/no frills carriers -LCC and the more traditional full service carriers-FSC (Hunter: 2006). Due to rapid development, consumer trend tend to improve in the market because flying on mainstream carriers was no longer cost-effective, therefore, low cost carrier was introduced (Whitelegg: 2005). Subsequently, operation strategy is fundamental to the success of the businesses. Slack, Brandon-Jones and Johnston (2013) defined operation strategy as “ The pattern of strategic decisions and actions, which set the role, objectives and

Therefore, the service concept of BA gives a worldwide linkage of interconnecting flights and a range of services for different group of travellers. BA follow this objective by establishing a complex linkage of routes and by developing collaboration with other organisations (airlines) that enhance international coverage and provide links among routes. Operationally, the main focus and concern of BA is to ensure greater level of customer service, to generate international network, and to manage route effectiveness.

“The merger of the two operating airlines into one corporate entity has also enabled savings on operating costs such as Engineering and Ground Handling, Insurance and Catering. Employee costs have also been addressed through an integrated organization which enabled the Company to terminate the contracts of most expatriate staff and impose a hiring freeze on new appointments.”

In 2003, JetBlue Airways ordered 100 regional jets for $3 billion from Brazilian aircraft maker, Embraer, in order

A British Airways Board was established by the United Kingdom government in 1972 to manage the two nationalized airline corporations, British Overseas Airways Corporation and British European Airways, and two smaller, regional airlines, Cambrian Airways, from Cardiff, and Northeast Airlines, from Newcastle upon Tyne. On 31 March 1974, all four companies were combined to form British Airways. After almost 13 years as a state company, British