REPORT On BRITISH AIRWAYS TQM

A TQM case study in service sector
Name: Class: Roll no: Faculty In-Charge: R.R. Lekurwale Date of performance: Date of submission: Date of correction: Grade:

In 2007. The carrier soon expanded with the acquisition of British (BCAL) in 1987 and Gatwick-based carrier Dan-Air in 1992. with 57 examples in service. BOAC and BEA. and two much smaller regional airlines. British Airways' parent company. Despite being a longtime Boeing customer. The alliance has since grown to become the third largest airline alliance after Sky Team and Star Alliance. marking the start of its long-haul fleet replacement. On 31 March 1974 all four companies were dissolved to form British Airways (BA). British Airways was privatized in February 1987 as part of the privatization plan by the Conservative Government of the time. ordering 12Airbus A380s and 24 Boeing 787 Dream liners. near its main hub at London Heathrow Airport. On 12 November 2009. The centerpiece of the airline's long-haul fleet is the Boeing 747400. British Airways is the largest operator of the type in the world. International Airlines Group. BA's UK passengers originating at nonLondon airports must connect via London after British Airways discontinued all direct overseas flights from UK airports outside London following the sale of BA Connect to British regional carrier Flybe in 2007. at London City Airport. BA CityFlyer. is listed on the London Stock Exchange and is a constituent of the FTSE 100 Index. Qantas and the now defunct Canadian Airlines. Cathay Pacific. The merger between the two carriers will create the world's third-largest airline in terms of annual revenue and . After almost 13 years as a nationalized company. served through its fully owned subsidiary. British Airways operates a second hub at Gatwick Airport and a third hub. along with American Airlines. British Airways is the largest airline in the UK based on fleet size. The British Airways Board was established in 1971 to control the two nationalized airline corporations. British Airways placed a major order for Airbus aircraft in August 1998 with the purchase of 59Airbus A320 family aircraft. the carrier placed its next major order. British Airways is a founding member of the one world airline alliance. international flights and international destinations. British Airways confirmed that it had reached a preliminary agreement to merge with Iberia.Introduction of british airways: British Airways plc (BA) is the flag carrier airline of the United Kingdom which is based and headquartered in Waterside. Cambrian Airways from Cardiff and Northeast Airlines from Newcastle upon Tyne.

The merger was confirmed on 8 April 2010. the rapid expansion continued with the formation of British Asia Airways. IAG. 2011. British Airways expanded through the acquisition of financially troubled Gatwick-based carrier Dan-Air. giving BA a much larger presence at Gatwick airport. In March 1993. and it is expected to be completed by the end of the year. the intense rivalry between British Airways and . The formation of Richard Branson's Virgin Atlantic Airways in 1984 began a tense relationship with BA. formally creating the International Airlines Group. American Airlines  25 million passengers The following are some of the problems which were associated with the then BA: 1) The airline was shoddy and untidy which was indifferent to passengers 2) World class. On 14 July 2010. and the acquisition Brymon Airways in May to form BA Connect. a trendsetter indeed! They decided to go for TQM!! The scenario of BA in 1990 s: In 1992. The British Airways merger with Iberia was finally completed on January 21. the European Commission gave the two carriers permission to merge and also agreed to allow American Airlines to co-operate with the merged entity on transatlantic routes to the United States of America.  Every 2min a BA flight takes off  Working 24×7  4th largest airliner in the business  Fiercely competing Lufthansa. a subsidiary based in the Taiwan. financially well. British Airways expanded through the purchase of a 25% stake in Australian airline Qantas in March. Throughout 1993.the second largest airline group in Europe. In 1993. to operate between London and Taipei. Singapore Airlines.

sold itself Began to repair and restructure START OF TQM IMPLEMENTATION:       Leaner to fitter PUTTING PEOPLE FIRST program by Collin Marshall Customer Employees 30. The following were the highlights of this era: y y y y y Under a crisis Previously a nationalized corporation Shedding jobs worldwide to stop making loss Merging of BOAC & BEA Restriction of operating routes PUBLIC . British Airways was forced to pay Virgin damages and legal costs causing BA management to apologize "unreservedly" for the alleged "dirty tricks" campaign.000 for a "dirty tricks" campaign against Virgin and around £3 million in Virgin's legal costs. Following a court case. British Airways' campaign against Virgin included poaching Virgin Atlantic customers and tampering with private files belonging to Virgin.000 employees Behavior breeds behavior Employees 1)know your work place better:      CUSTOMER FIRST team program In effective attitude of employees Employees treated as internal customers We fly to serve motto A Day in the Life .PRIVATE Transformation: y y y y Prepared itself for privatization Regained its financial wealth After £5 million worth advertisement.Virgin Atlantic culminated with British Airways being sued £610.

hope of gain not threat of being fired from job 3)deep into cultural change Senior & middle level management  Leading the service business  Offsite meetings  Recording feedback from the down level management  Participative management style  Bureaucratic.000 Dismissal letters to opposing managers New. 4) treat employees as potential customers :  Introduction of world traveler to economy class  Advertising it to employees before to customers  Internal commitment  Internal marketing 5) Act as you preach  BA offered MBA degree! to its employees  Established permanent training centre  Created emotional support. engineering excellence . new. militaristic service oriented . gold in the hole . money matters 2)Pattern breaking stage:      Demanning from 59. absence of good managers. market driven. underachieving education system  Effective motivation.000 to 29.Organizational hierarchy was flattened . everywhere new Experimenting & visioning stage difficulties Pathetic business attitude.

 profit sharing bonus schemes  Performance appraisal system introduced  Performance based compensation system  data driven feedback system on management practices 6)Advertise yourself  Apart from usual ad campaign. first class . brand product theme was introduced  Club world . super shuttle . advanced fleet strength than competitors  Enormous customer care programs . accessories . adjusting food recipes in accordance with different geographical places  Gained competitive edge Show down a moment to celebrate!!!!!!  13 % increase in profit  Another 12% increase in each subsequent yrs  Became fourth largest airliner  160 destinations. world traveler(economy class)  Modification of seats. catering services  A single ad costs £1 million containing emotional dramatic exp  Food served has a power full effect on the memory of a flight  Analyzing different aviation routes. 90 countries. 25 US cities  41 % share in North Atlantic market  235 aircrafts. leisure.

. ©Prentice-Hall International (UK) . References: John Bank. The Essence of TQM.2002.

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