British Airways plc

Introduction

The predecessor of British Airways was Imperial Airways - a colonial instrument, which cerebrate the British Empire. From this evolved the British Overseas Airways Corporation (BOAC), which was merged with British European Airways (BEA) to create British Airways. Even after privatisation, British Airways retained the image of being reserved, professional and formal.

Each year, British Airways transports 40 million consumers to 162 destinations. Sixty percent of the firms business originates overseas. In the night club months ending December 31, 1997, British Airways declared revenues of $11 zillion (US), including $763.8 million from cargo operation. This resulted in net income of $854.3 million, placing British Airways among the well-nigh profitable air lanes in the world (see Table I). In 1998, the general limited company had 60,000 employees, up from 35,000 in 1983.

An overview of the diligence

The airline industry has underg unitary significant restructuring in recent years. Airlines, formerly rivals in a highly regulated industry, have become opportunistic seekers of co-operation. In todays world, mega-carriers and small airlines are working together rather than competing with one another. Forms of co-operation include sub-contracting, code-sharing, franchising and the formation of world(prenominal) marketing networks. Such alliances release firms to focus on their respective core competencies, while rough drawing the benefits of scale economies.



In essence, co-operation among competitors has led to increased competitiveness. This has accelerated the vogue of joint marketing, and the airline has become characterised by the desire to proceed to a global network. The tendency has been to strive for a global presence.

There are several means to expand in the airline industry. The traditional (and relatively slow) way for an airline to expand is to supplement flights to its schedule, using its own equipment and crew. For decades, this was the typical means to expansion. Growth was slackly incremental. To cite an...

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