Airline Operation

By

ABSTRACT

British Airways is amongst the biggest airlines in Europe; however, it has been facing very stiff competition from Middle Eastern Carriers like Emirates and Qatar. These Middle Eastern giants have given a very stiff time to British Airways. British Airways has not been able to perform in a certain geographical regions in the past few years because of the stiff competition from these Middle Eastern airlines and they have been seen a loss in the number of passengers in the past few years. However, British Airways had taken a number of steps to make sure that they put up a fight against the stiff competition from these Middle Eastern giants. They have devised a number of marketing strategies to promote themselves in different markets. There strategy of using online booking for their customers had allowed them to cut down their costs by a significant margin and; therefore, helped them in the process of managing their expenses. They have entered into a deal with aircraft companies like Boeing and Airbus and they will get new aircrafts in the coming few years, which would help them in making sure that they further reduce their aircraft related expenses. British Airways has taken a number of steps to counter the aggression from these Middle Eastern giants.

TABLE OF CONTENTS

ABSTRACTii

Introduction1

Overview of British airways1

SWOT Analysis of British Airways2

Strengths of British Airways2

Strong fleet operations2

Strong market position and brand image in the UK3

Online services4

Weaknesses of British Airways4

Labour dispute4

Poor performance in all geographic regions5

Declining operating efficiency5

Opportunities for British Airways6

Global air freight industry on road to recovery6

Expected resurgence of global tourism6

Merger with Iberia7

Threats to British Airways8

Intense competition and price discounting8

Price volatility in petroleum markets8

Regulatory conditions9

SWOT analysis of Emirates global9

Strengths of Emirates global9

Weaknesses of Emirates global10

Opportunities for Emirates global10

Threats to Emirates global10

PESTLE Analysis of British Airways10

Political scenario analysis of British Airways11

Economic scenario analysis of British Airways11

Social scenario analysis of British Airways11

Technological scenario analysis of British Airways11

PESTLE analysis of Emirates12

Political scenario analysis of Emirates12

Economic scenario analysis of Emirates12

Social scenario analysis of Emirates12

Technical scenario analysis of Emirates12

Legal scenario analysis of Emirates13

Financial assessment of British Airways13

Steps to control costs by British Airways16

Marketing strategies of British Airways to fight competition16

The solution17

An aggressive strategy of landing pages17

The introduction of a single bid management system17

Improved approach to reporting and analysis18

One-world alliance: A step against Middle East airline giants19

Passengers per year for one-world alliance21

Market share of one-world alliance21

Participants of one-world alliance21

Network strengths of one-world alliance21

Weakness of the one-world alliance21

Alliance of British airways and Iberia: Another step against the emerging Middle East airline giants22

Future aircrafts of British Airways and impact on traffic flows22

Liberalization of traffic from India and China23

Conclusions25

REFERENCES26

AIRLINE OPERATION

Introduction

Alamdari and Mason (2009, 122) had described that The importance of air transportation in supporting the nation's economic and cultural growth has been long recognized. According to the latest statistics, about 735 million passengers travelled by air in the U.K. during the period from March 2007 to February 2008 (BTS 2008). In addition, the total value of domestic airfreight doubled from 1993 to 2002 with an estimated value of ...