British Airways Main Assignment

BRITISH AIRWAYS

BOARD OF DIRECTORS (2011-2013)

CHAIRMAN’S STATEMENT

   2011, 2012 & 2013 where three crucial years for British Airways. There have been bad times at the same time lot of developments took place in this period. Due to high fuel prices and global recession 2011 was a tuff year for them. The company survived this phase by merging with Iberia Líneas Aéreas de España S.A (‘Iberia’) gaining new operating routes. In the same year British Airways showcased a strong operational performance increasing the customer value and satisfaction. Though it was a hard year for BA, considering bright future huge investments were made on expanding the fleet and also introduced B777-300 & A320’s replacing Embraer E190 aiming more passengers in the coming years. BA also launched Pilot program aiming to recruit 800 new pilots and 1500 cabin crews by 2016. BA also made some investments for maintenance, improving their lounge standards and flying comforts thus increasing the customer value. In short 2011 was a year in which BA was planning and investing for its bright future.

   Though the economical scenario was almost the same as of the previous year 2012 turned out to be a good year for British Airways. The brand value and customer relation greatly increased the reason being BA’s involvement in both Olympic and Paralympic games. Another important milestone of the year was the merger with British Midland Limited (‘BMI’), which enabled BA to operate in 20 new routes increasing the revenue. In the same year the company also made code-sharing agreement with two other major airlines, with JAL (JAPAN AIRLINES) in October 2012 and with Canadian carrier WestJet in September 2012 yielding profit for the airline.  As a foundation for the coming years lot of investments were made in 2012 mainly on the technological side. All the older fleets were installed with newer technologies and business classes were upgraded as a strategy to increase more passengers. As a part of fleet expansion BA made a huge order consisting of 12 A380’s and 24 B787, which were expected to deliver in the next year.

      Since 2011 & 2012 made a strong foundation 2013 was a profitable year for BA. British Airway’s involvement in Olympics and Paralympics helped to sustain its brand value in 2013 also.  More fuel efficient aircrafts such as A380’s and B787’s were introduced to the fleet as part of the expansion aiming more passengers and also made another huge order consisting of 18 A350’s and 18 B787-900, which is expected to be delivered in the next 10 years. The code sharing between Cathay Pacific and Fin Air also helped the airline to sustain its business. The merger with Qatar Airways, Malaysian Airlines, and American Airlines due to the One World Alliance program as helped BA in increasing its destination and revenue.  As a business strategy to increase the customers BA introduced lot of promotions and offers such as Short Haul fares, which in turn increased the revenue.

PESTEL ANALAYSIS OF BRITISH AIRWAYS (2011, 2012, 2013)

2011

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2012

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2013

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FINANCIAL REVIEW OF BA  (2011-2013)