British Airways

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, and operated
under that name until 1935
1939, the airline was nationalized to form the British
Overseas Airways Corporation (BOAC)
1972, BOAC and BEA were combined under the British
Airways Board

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

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.

Goals
Environment
Reduce carbon emissions, waste, noise and
improve local air quality.

Community
Support international communities, conservation
projects and charities in the countries we fly to.

Marketplace
Encourage our customers and suppliers to act
responsibly.

Workplace
Provide a great place to work and encourage
everyone at British Airways to embrace One
Destination.

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, Library
facilities, Audio and Video based learning
designed to management staffs

Internal and external

capabilities...cont
Premium Services

Quality services to customers at every touch

Listen to customers feedbacks
Corporate social responsibility
Climate Change Programme,
Reducing waste by 50%

Internal and external

capabilities...cont
External capabilities
Close relationship with customers
Attend customers complain and
feedbacks

Alliances with other airlines

T o extend greater services, eg. One World,
American Airline, City Flyersetc
Openskies Alliance

Internal and external

capabilities...cont

Corporate social responsibility

Community learning centre at Heathrow,
London
Partner with UNICEF, promote change for
good
Donate 1.3 million in 2010 from BA and
staffs.
Raise USD $30 million from passengers

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

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

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

British Airways- market position, by

using porters 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

British Airways- market position,

by using porters 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- customer has
no other choice
Availability of flights and seats are
limited
However , prices are changes according
to demand- festival times

HIGH

MEDIUM

British Airways- market position,

by using porters 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.
. deep understanding of what is required
to be
their airline of choice to drive our
design
choices on product,
network and service.

Deliver an outstanding service for

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

Grow our presence in key global

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

Build on our leading position in

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

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, and meet the
needs of
our core customers and
enhance
loyalty.

Competitive
Advantage
modern technology Self Service Check-in
(SSCI) .
. Using IBM's kiosks .
. Lower cost - estimated savings at
$3.50 per
passenger
most advanced freight processing facilities
service
. BA used one of the largest computers
outside
the defence industry.
. extract data from anywhere in the BA

Strategies that have been implementing?

Setting the priority (not opening too many fronts

Be more sensitive to Human aspect and job cuts.
It become operations oriented, with low emphasis
laid on employees moral
Bob should have involved people in the process.
Change accomplished through people is far more
effective than change forced upon them

British Airways plans to reduce waste on future

flights

By 2014
British
Airways will
be
reducing10%
of its waste
on future
flights

Recommendation

Community:
Raise 2 million each year for our partner charities.
Continue to offer a learning experience to schools in the Heathrow
area at the BritishAirways Community Learning Centre.
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.
Create more energy efficient workplaces for our teams worldwide.
Ensure that every member of staff has the opportunity to get
involved with One Destination

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

Thank you