British Airways

the airline was nationalized to form the British Overseas Airways Corporation (BOAC) 1972. and operated under that name until 1935 1939.British Airways overview Full service global airline. offering year-round low fares Flag carrier airline of the United Kingdom Founded in 1924 as Imperial Airways. BOAC and BEA were combined under the British Airways Board .

. in-flight and on the ground.Mission “The World's Favourite Airline” provide the full service experience and achieve the target in both.

Vision Accreditation for Carbon Offsetting Scheme offer carbon offsetting the first airline to win Government approval launch of the Department for Energy and Climate Change new Carbon Offsetting Quality Assurance Scheme Industry united position on climate change reduce climate change emissions in aviation with a cap on net emissions by 2020 and a 50% cut by 2050 It will guarantee environmental targets are met. . and minimize costs to passengers.

conservation projects and charities in the countries we fly to. Community Support international communities.Goals Environment Reduce carbon emissions. noise and improve local air quality. waste. .

Workplace Provide a great place to work and encourage everyone at British Airways to embrace One Destination. .Marketplace Encourage our customers and suppliers to act responsibly.

Library facilities.Internal and external capabilities • Internal Capabilities • Aircraft fleet and destinations • fleet of 238 aircrafts • Access to more than 300 destinations • Sole access to Heathrow terminal 5 • Variety of Training facilities • Cabin crews are trained 1200 hours • Flight simulators – to Cabin Crews and Pilots • Computer Base Learning. Audio and Video based learning – designed to management staffs .

• Reducing waste by 50% ...Internal and external capabilities.cont • Premium Services • Quality services to customers at every touch • Listen to customers feedbacks • Corporate social responsibility • Climate Change Programme.

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City Flyers…etc • Openskies Alliance . American Airline.. One World. eg..cont External capabilities • Close relationship with customers • Attend customers complain and feedbacks • Alliances with other airlines • T o extend greater services.Internal and external capabilities.

. London • Partner with UNICEF. promote “ change for good” • Donate ₤1. • Raise USD $30 million from passengers .Internal and external capabilities.cont • Corporate social responsibility • Community learning centre at Heathrow.3 million in 2010 from BA and staffs..

SWOT analysis • Strengths • Strong brand image • Opensky agreement • International operations • Sole access to Heathrow terminal 5 • Skilled staffs • Expansion of Aircraft fleet • Economies of scale by using • Spare space of passenger aircraft for cargo services .

. Deal of ₤40 million • This create opportunities for BA to impress their customers with excellent services .SWOT analysis • Official Airline for 2012 Olympic and Paralympics games.

.SWOT analysis. cont • Weakness • Cost of management • Decline profitability • ₤358m loss in 2009 (After tax) • ₤425m loss in 2010 (After tax) • Labour strikes • Powerful Employee Union • Christmas strikes in 2009 ..

.SWOT analysis.. cont • Opportunities • Emergence of new markets • Asia pacific .

SWOT analysis. cont • Threats • Raising fuel prices • Tight competition from low cost airlines • Changes in the consumers behaviour • Unstable political issues and global economic crisis ...

by using porter’s Five forces Force Competitive rivalry • BA caters for both long and short haul flights •there is little differentiation between BA and its competitors in term of pricing and offer • The short haul market is more fragmented with many small players Strength HIGH .market position.British Airways.

market position.festival times HIGH MEDIUM .British Airways.customer has no other choice • Availability of flights and seats are limited •However . prices are changes according to demand. by using porter’s Five forces… cont Force Strength •Power of suppliers • Two aircraft manufacturers • BA restricted by sole suppliers of fuel to the airport • Power of buyer • Long Haul destinations.

British Airways.market position. by using porter’s Five forces… cont Force Threats of new entrance • competitive environment • High regulatory requirement • high cost requirement Threat of substitutes • There are few direct closed substitutes • Short haul flights : Euro star or a ferry •Long haul flights : No notable substitutes Strength HIGH LOW .

Five Strategic Goals Be the airline of choice for longhaul premium customers. key to our profitability. network and service. . deep understanding of what is required to be their airline of choice to drive our design choices on product. . .

on all routes and classes. . so that all our customers. will invest both in improvements targeted. such as service style training. . and in . enjoy a premium experience. train and reward. to build on this through a revolution in the way we lead.Deliver an outstanding service for customers at every touch point.

either directly or through our expanding network of airline partnerships. . will build our presence in the top tier global cities. . to provide the best global connectivity for our customers.Grow our presence in key global cities. .

To support this. and work with the airport owners on the continued development of the infrastructure. .Build on our leading position in London . we will look to influence government policy decisions.

and meet the needs of our core customers and enhance loyalty.Meet our customers’ needs and improve margins through new revenue streams . . will explore how we can develop new products and services which exploit our assets and capabilities.

. . Using IBM's kiosks .estimated savings at $3. Lower cost .Competitive Advantage modern technology – Self Service Check-in (SSCI) .50 per passenger most advanced freight processing facilities service . extract data from anywhere in the BA . BA used one of the largest computers outside the defence industry. .

Strategies that have been implementing?  Setting the priority (not opening too many fronts )  Be more sensitive to Human aspect and job cuts. Change accomplished through people is far more effective than change forced upon them . with low emphasis laid on employees moral  Bob should have involved people in the process.  It become operations oriented.

British Airways plans to reduce waste on future flights By 2014 British Airways will be reducing10% of its waste on future flights .

Continue to offer a learning experience to schools in the Heathrow area at the British Airways Community Learning Centre. Create more energy efficient workplaces for our teams worldwide.Recommendation Community: Raise £2 million each year for our partner charities. Ensure that every member of staff has the opportunity to get involved with One Destination     . Support a whole range of community and conservation projects around the world Workplace: Make it easier for BA people to volunteer time to charities and community activities.

Recommendation… Cont Environment: Reduce our average noise per aircraft by 15% by 2015*. Recycle 50% of all our waste. Reduce our net CO2 emissions by 50% by 2050. Our key suppliers will be audited independently for their ethical practices by 2012. Marketplace: Make it easier for customers to carbon offset their journeys. . Become 25% more carbon-efficient by 2025 (83 g CO2 / pkm reduced from 111 g CO2 / pkm).

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