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BRITISH AIRWAYS CASE STUDY

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Introduction

British Airways, a subsidiary of the International Airlines Group, is a prominent worldwide premium airlines and the UK's world's largest carrier. The airline is based in London Heathrow, the world's biggest international airport, and operates flights to over 170 destinations in 70 countries. Our travel guide may be found here. British Airways has around 280 aircraft in its fleet, including the A380 and 787. More information on our aircraft may be found here. The airline delivers 35 million cups of tea, 36.5 million dinners, and 3.7 million bottles of wine to its more than 40 million passengers each year. On August 25, British Airways marked its 100th anniversary.

The British Airways Heritage catalogue includes a large document database, as well as souvenirs and artefacts, documenting the founding, growth, and management of British Airways and its predecessor businesses. More than 130 outfits from the 1930s to the current day, as well as a vast collection of aircraft models and photographs, have been preserved. British Airways, a subsidiary of the International Airlines Group, is a prominent worldwide premium airline and the UK's world's largest carrier. The airline is based in London Heathrow, the world's biggest international airport, and operates flights to over 170 destinations in 70 countries. British Airways Plc owns, manages, and operates this website. British Airways is a massive international airline that offers affordable prices all year and flies into and out of strategically situated airports on a vast worldwide rail services.

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SWOT Analysis

Strength

Fortunately, the airline has had a minimal number of safety problems and accidents. Since the airline's founding in 1974, there have been three hull-loss events, two hijacking attempts, and just one fatal accident. British Airways has been concentrating its efforts on building a long-term brand. They've been investing in key areas like extending their worldwide network and enhancing technology and the entire experience for consumers and staff. This sustainable development is also applicable to environmental sustainability. By investing in fuel economy, the firm has attempted to decrease its carbon footprint.

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Weakness

The airline has had several issues with the Rolls Royce Trent 1000 engine. It's utilised in the Boeing 787 Dreamliner, and the aviation agency has now put a restriction on it after British Airways experienced substantial delays as a result of it. British Airways' flight punctuality and aircraft availability have both deteriorated as a result of the engine. Many planes had to be retired, and the airline's number of flights and seats had to be reduced. British Airways' income is largely derived from sales in the United Kingdom, which may be a volatile form of money due to the influence of COVID-19 and Brexit on these sales. Currently, over half of the company's income originates from domestic markets.
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Opportunity

For improved revenue development, the firm can expand into a variety of services. They might start offering premium services to entice high-end clients and companies to fly with them. Airlines often employ the strategy of launching hospitality services, such as hotels, to boost income. British Airways could consider expanding their product line in order to gain additional rewards. Taking advantage of chances like these will increase revenue and expand the company's client base. If an airline's foreign route system is well-distributed, it may serve as a draw for both new and returning customers. 

 

Threat

When the coronavirus struck, flights, particularly international flights, were among the first to be grounded. All airlines' revenues, including British Airways', have suffered a significant blow as a result of this. Not only has travel been limited, but airlines now have to follow a variety of COVID-19-related Standard Operating Procedures (SOPs) in order to keep their operations functioning. People will only travel on airlines that they believe are safe. If your firm fails to follow the SOPs, regulatory authorities may shut it down. Many people have shied away from international and even domestic travel. Events that once necessitated your presence are now conducted entirely online, thanks to the growing popularity of social media.
 

PESTLE Analysis Of British Airways

Political

In the aviation sector, political considerations are becoming increasingly important. Political factors are becoming increasingly important for a variety of reasons, including the role of political stability in driving growth, the impact of public policies on product quality and creating a business-friendly environment, and the impact of government regulatory oversight on a region's overall aviation market. Current policies of the world's main aviation markets, such as the United Kingdom and the United States, have a significant impact on the airline sector. Furthermore, the political climate in the United Kingdom as well as the level of political safety, are important considerations. The aviation sector in the United Kingdom was extensively controlled by EU legislation, with the most tightly controlled areas being operator licencing, traffic rights, safety regulation, and staff licencing. The Civil Aviation Authority is the primary authority in the United Kingdom in charge of aviation regulation. The CAA supervises consumer rights in addition to safety regulations, the environment, and security concerns.

 

Economic

Economic considerations and developments have a direct influence on the airline industry's operations in the United Kingdom. The profitability of airline brands operating in a nation or region is directly influenced by the country's or region's economic status. All of these factors have an impact on air travel and airline operators, whether it's economic stability, unemployment, or GDP. The airline industry's revenue and earnings are suffering as a result of the slowing economy. However, since the declaration of Brexit in 2016, the UK's economic climate has been very unpredictable. The UK sector has undergone greatly since then as a result of the uncertainty generated by Brexit.
 

Social

In the context of the aviation sector, social issues such as demographic changes are equally relevant. The main target demographic for airline companies like British Airways is millennial, who have different travel patterns than previous generations and appear to spend more on air travel in major Western countries than baby boomers. While passengers, as well as their safety and convenience, have been a top priority for aircraft operators and regulatory agencies, the social image and reputation of airline businesses has also become a key element influencing company success. Apart from the client experience, British Airways places a strong emphasis on operational efficiency, dependability, and its public image. The firm has increased its attention on sustainability in recent years and is investing in areas where it can reduce its environmental effect. Aside from the societal image, other variables in society might have a direct impact on the aviation sector. The threat of coronavirus has already had a significant impact on the business. Apart from the closure of many airports across the world, some airlines have been badly impacted, notably Flybe in the United Kingdom.

 

Technological

Technology is a key driver of airline industry growth, and in addition to more fuel-efficient and safer aircraft types, the creation of improved sales and service technology has also assisted the sector's global expansion. Digital technology has also aided airline companies in expanding their client base and better marketing themselves. British Airways is investing in technology to improve the efficiency of its fleet and provide a better customer experience for its passengers. Furthermore, as part of its long-term strategic objectives, British Airways has chosen to spend more in technology in order to increase efficiency and provide better services. The firm also intends to undergo a digital transformation in order to fully exploit the benefits of integrating technology into its daily operations across the world. The firm has made technical advancements in numerous areas over the previous few years, including streamlining the booking process on its website and improving the BA app. More clients are buying tickets directly through the company's website as a result of this.

 

Legal

One of the most pressing problems in the whole aviation sector, including the UK market, is legal issues. Noncompliance may result in large penalties and harm the brand's reputation, thus compliance is important for all aviation stakeholders, including British Airways. Apart from customer convenience, passenger security, and environmental effect, there are labour regulations and a number of other operational areas with which British Airways must comply both domestically and internationally.

 

Environmental

Environmental concerns have been a top priority for both aircraft companies and aviation regulators. The aviation industry's environmental effect is a major concern for regulators all around the world. British Airways, on the other hand, has taken some significant efforts in this regard in order to reduce its environmental effect and make its economic model more sustainable. The company is continually investing in increasing the fuel economy of its fleet and lowering its carbon impact, and sustainability is now one of its top strategic priorities. The IAG, the parent corporation of British Airways, has pledged to reduce its carbon footprint to zero. The firm has set a goal of achieving net zero CO2 emissions by the year 2050 as part of its Flight Path Net Zero strategy.
 
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Conclusion

From the foregoing case study, it can be inferred that the UK airline sector is governed by a number of rules, the most of which are based on EU legislation. While the Civil Aviation Authority of the United Kingdom (CAA) is the primary regulatory body in the UK, there are other foreign regulatory bodies that supervise the business of international airline brands. Apart from operational rules, it is also said that labour laws are a key factor impacting British Airways. In 2019, the firm was confronted with a severe hurdle in the shape of a captain strike. To minimise disruption, the firm lost its legal battle to stop the scheduled strike and had to commit to a pay agreement afterwards.
 

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