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British Airways Operational Environment

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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 …show more content…

-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

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