BRITISH AIRWAYS: LEADERSHIP

AND CHANGE
(1980-2003)
 INTRODUCTION
British Airways is one of the leading
airlines in the world.
It was formed in 1974, as a result of
the merger of state run British
Overseas Airways corporation (BOAC)
and British European Airways (BEA)
Current CEO – Willie Walsh
• In this case we will study the changes in
management under the leadership of :

LORD KING
COLIN MARSHAL
BOB ALYING
ROD EDDINGTON
 MAIN OBJECTIVES
• 1) To
• 2) To boost the low staff morale.
• 3) To make BA profitable and prepare it for
privatization.
CHALLENGES(last slide in comparison)
 Management change
lord king-1981
• Vision:
Make BA as one of the greatest carriers in the world.

• Challenges
Little focus on profitability
Little emphasis laid on customer services
Absence of market orientation
Highly hierarchical bureaucratic structure
• Changes In management
Reduced staff strength from 52000 to 35000
Freezed the pay increase for an year.
Closed 16 routes 8 online stations and 2
engineering basis.
 MANAGEMENT CHANGE
SIR COLIN MARSHAL-1982
• Vision:
encourage employees to Look beyond their
narrow functional and cultural bodies.
• Challenges
Competing value systems ie BEA versus BOAC.
• Change in management
Organized intensive management training programs :
Putting people first (PPF) – 1983
Managing people first (MPF)- 1985
a day in life -1985
to be the best- 1987
leading in service business- 1987
awards for excellence- 1987
brain waves -1987
 Putting people first
• A 2 day training prog.
• Included 150 participants
• Consisted presentations, exercises and group
discussions.
• Employees were introduced to the concept of
goal setting.
 Managing people first
• 5 day residential program
• Stressed upon the importance of trust
,leadership,vision & feedback