AIRLINE INDUSTRY IN UK

Airline Industry in UK

Airline Industry in UK

Introduction

British Airways is one of the world's leading international airlines, operating international and domestic scheduled and charter air services. Its revenues are generated primarily from business and leisure passengers, cargo and mail. British Airways is the largest airline and flag carrier of the United Kingdom and one of the largest in Europe. We have analyzed environments in which British Airways operates using PEST analysis. In this paragraph we stated political, economic, social and technological environments positive and negative influence areas, which have to be carefully considered before starting and operating in chosen business, in this case airline industry. To position correctly business in the market, every company must identify its strengths, weaknesses, opportunities and threats or otherwise known as SWOT analysis. That is why we applied SWOT analysis to British Airways to properly locate it in the market of airline industry.

In our report, we researched how British Airways is promoting and constantly reminding consumers about their services, we called this section British Airways keeps involved and keeps involving. It includes sponsorships, approach Customer is the King and company's offered loyalty programme. As in every business there is competition, we examined how British Airways has used Porter's five generic forces model to establish its main competitors.( Steven, 2002) The research also shows financial overview of the company. This essential part allows us to analyze British Airways performance for the last years, its profits and losses.

History

British Airways has a long history starting as a combination of pioneer airlines from 1919; it soon formed in 1924 into Imperial Airways. By 1939, the Imperial Name was changed to British overseas airways corporation (BOAC) because of the expansion of the British Empire. In this same period, British airways limited and imperial airways were nationalised.

The BOAC name lasted until the seventies when it was changed to British Airways. By 1987, British Airways was privatised on the stock exchange. Today British Airways is the largest airline and flag carrier of the United Kingdom and one of the largest in Europe.

Corporate Strategy

British airways initial cooperate strategy was to be globally diversified by aiming to become the undisputed leader in world travel for the next millennium. However the company was only able to achieve this goal in 2007 where the company won the award for the worlds leading airline. Currently although the British airways corporate strategy aiming to protect their title and strong position in the competitive market remains a key priority for them, the company has also set new strategies that aim to prevent the company from entering or operating in unprofitable market segments. The company aims to target markets that depend immensely on business travel, particularly back and forth from the UK. (Bennett, 1997) Finally, BA's has committed to achieve and maintain a competitive cost base. As the company's main target is to achieve 10% margin by March 2008.

PEST Analysis Political Environment

In airline business political environment is one of the key areas as decision making process can ...