British Airways – Operational Environmental
Introduction
British Airways (BA) is the UK’s largest international scheduled airline, currently flying to over
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
(BA 2008)and (Encyclopaedia Britannica-a).
Historically, British Airways was created as a state-owned company in April 1974 by a merger between British Overseas Airways Corporation (BOAC formed in 1939) and British European Airways (BEA formed in 1946) and their associated companies (Encyclopaedia Britannica-a).
Despite
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-Traffic growth is expected to slow down from 5.9% in 2007 to roughly 3.9% for 2008 and increased liberalisation in the industry would intensify competition and squeeze profitability.
-As a sign of the times, IATA revealed that 24 airlines had stopped operating or gone bankrupt in the last 6 months (BBC Bus News TV Broadcast 02 June 2008).
Social Environment
-The rising cost of Airline travel and the (ever present) fear of terrorism have caused many travellers to avoid business travel whenever possible. On the other hand, a growth in traffic has been prompted by migrant workers, especially from countries recently admitted to the European Union, taking advantage of increased capacity offered by low cost carriers.
-Surprisingly, the holiday market has experienced little of the negative scenarios; with charter operations and package holidays experiencing business as usual during seasonal peaks. This could be explained by the fact that capacity in the holiday sector was never quite able to match the demand for budget holidays.
-Global warming has become a social issue. Although the phonomenon has been caused by the world’s (growing) dependence on fossil fuels and frustrated by the lack of political will to reduce greenhouse gases, the problem has become a rallying point for
P4) Review factors that have contributed to one declining destination (Cyprus) and one developing (Greece) in the European travel market.
| * Recent international Economic recession * Customers reluctant to travel due to increased gas prices * Decreased leisure spending
At the moment Australian passenger airline industry is dominated by thee large domestic carriers: Quantas, Jetstar and Virgin Blue.
However since the war on Iraq begun, consumers are again wary of air travel due to the risk of another attack. Tourism was another industry hit hard. Some claim it was partly due to the slump in demand for air travel, which is the most common form of transport from one country to another. Overseas visits to the United Kingdom for example fell by 9% for 2001. Tourism is a
British Airways faced the worst crisis in its history in the late 1970’s early 1980’s.
Prior to the marketing campaign touting BA as “The World’s Favorite Airline,” BA was often referred to as “bloody awful.” The company suffered from poor performance, inefficiencies, an older fleet, and substantial financial losses. Following passage of the Civil Aviation Act in 1971, BA assumed control of two state-run airlines, British European Airlines (BEA) and British Overseas Airways Corporation (BOAC), under the name British Airways. However, BEA and BOAC operated autonomously with separate boards, chairman, and chief executive officer that provided a challenge in making change. The level of
The marketing mix is a combination of 4 P’s (product, price, place and promotion) that should be used in conjunction with each other to ensure a competitive edge over other companies. ‘The marketing mix is designed to produce mutually satisfying exchanges with a target market’.
In recent years, the controversial subject of global warming has been more predominantly brought to our attention. Is the threat of global warming real? Is it man-made or is this just a natural cycle of earth? Does it really affect earth’s inhabitants? Should action be taken against it? If so, what kind and to what extent? It cannot be only a coincidence that the alarmingly rapid climate change coincides perfectly with the increased amount of pollutants that humans release into the environment. The once stable climate has in recent years begun to skyrocket, thus altering the delicate structure of earthly life. This proves to be hazardous to the future of the planet; some people worry that many of the resources the environment provides that
British Airways (BA) was formed in 1974 by the merger of the British Overseas Airways Corp (BOAC) and the British European Airways (BEA). BA’s integration did not come without problems. By the early 1980’s BA generated debs in excess of £500m, staff discontent and customer dissatisfaction were common denominators across the operational equation and in 1980 the airline topped a list of airlines to be avoided at all costs.
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.
British Airways is the one of the largest airline companies, and the passengers carry overall in the fifth largest in the world. Most of plans are stay in Heathrow Airport which is the highest of main international airport. The British Airways has a long history and airlines cover 133 countries; include 373 airplanes. The BA Company includes 50,086 workers to be in the service, which is one of the largest employers and employees in the United Kingdom.
In 2006, British Airways CitiExpress was renamed as BA Connect and the same year, they sold 14.6% stake in an Indian based business services Provider VVNS Holdings. British Airways also sold its Travel Clinic business to MASTA (Medical Advisory Services for Travellers Abroad).Meanwhile British Airways came to an agreement with Maley Hungarian Airlines for code sharing on each other's flights. They also started a flight from London to Calgary, Canada. At the same time they acquired American Airline's Stake in Iberia Airlines.
British Airways, “often shortened to BA, is the flag carrier airline of the United Kingdom and the largest airline in the United Kingdom based on fleet size. When measured by passengers carried, it is second largest in United Kingdom”. It now serves over 170 destinations worldwide in over 80 from cities, family holidays in North America to Africa, or relaxing on the Caribbean Islands or a taste of Asia.
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
The state of the industry since September 11, 2001 is as follows: Airlines have experienced two point one billion in losses and more than one hundred thousand layoffs. Employment domestically has experienced a ten percent drop in demand and employment globally has experienced a thirty percent drop in demand. Hotels have experienced a two billion dollar lost in room revenue and meeting room and convention industry has experienced a one billion dollar loss. As a whole the entire Travel and Tourism industry have experienced an enormous drop in revenues.