British Airways overview Full service global airline, offering year-round low fares Flag carrier airline of the United Kingdom Founded in 1924 as Imperial Airways, and operated under that name until 1935 1939, the airline was nationalized to form the British Overseas Airways Corporation (BOAC) 1972, BOAC and BEA were combined under the British Airways Board
Mission “The Worlds Favourite Airline” provide the full service experience and achieve the target in both, in-flight and on the ground.
Vision Accreditation for Carbon Offsetting Scheme offer carbon offsetting the first airline to win Government approval launch of the Department for Energy and Climate Change new Carbon Offsetting Quality Assurance Scheme Industry united position on climate change reduce climate change emissions in aviation with a cap on net emissions by 2020 and a 50% cut by 2050 It will guarantee environmental targets are met, and minimize costs to passengers.
GoalsEnvironmentReduce carbon emissions, waste, noise and improve localair quality.CommunitySupport international communities, conservation projectsand charities in the countries we fly to.
MarketplaceEncourage our customers and suppliers to actresponsibly.WorkplaceProvide a great place to work and encourage everyone atBritish Airways to embrace One Destination.
Internal and external capabilities•Internal Capabilities • Aircraft fleet and destinations • fleet of 238 aircrafts • Access to more than 300 destinations • Sole access to Heathrow terminal 5 • Variety of Training facilities • Cabin crews are trained 1200 hours • Flight simulators – to Cabin Crews and Pilots • Computer Base Learning, Library facilities, Audio and Video based learning – designed to management staffs
Internal and external capabilities...cont•Premium Services • Quality services to customers at every touch • Listen to customers feedbacks• Corporate social responsibility • Climate Change Programme, • Reducing waste by 50%
Internal and external capabilities...cont External capabilities • Close relationship with customers • Attend customers complain and feedbacks• Alliances with other airlines • T o extend greater services, eg. One World, American Airline, City Flyers…etc • Openskies Alliance
Internal and external capabilities...cont• Corporate social responsibility • Community learning centre at Heathrow, London • Partner with UNICEF, promote “ change for good” • Donate ₤1.3 million in 2010 from BA and staffs. • Raise USD $30 million from passengers ( 10 years)
SWOT analysis •Strengths • Strong brand image • Opensky agreement • International operations • Sole access to Heathrow terminal 5 • Skilled staffs • Expansion of Aircraft fleet • Economies of scale by using • Spare space of passenger aircraft for cargo services
SWOT analysis• Official Airline for 2012 Olympic and Paralympics games.. Deal of ₤40 million • This create opportunities for BA to impress their customers with excellent services
SWOT analysis... cont• Weakness • Cost of management • Decline profitability • ₤358m loss in 2009 (After tax) • ₤425m loss in 2010 (After tax) • Labour strikes • Powerful Employee Union • Christmas strikes in 2009
SWOT analysis... cont • Opportunities • Emergence of new markets • Asia pacific
SWOT analysis... cont • Threats • Raising fuel prices • Tight competition from low cost airlines • Changes in the consumers behaviour • Unstable political issues and global economic crisis
British Airways- market position, by using porter’s Five forces Force StrengthCompetitive rivalry• BA caters for both long and short haulflights•there is little differentiation between BA HIGHand its competitors in term of pricing andoffer• The short haul market is morefragmented with many small players
British Airways- market position, by using porter’s Five forces… cont Force Strength•Power of suppliers• Two aircraft manufacturers• BA restricted by sole suppliers of fuel to the HIGHairport• Power of buyer• Long Haul destinations- customer has noother choice MEDIUM• Availability of flights and seats are limited•However , prices are changes according todemand- festival times
British Airways- market position, by using porter’s Five forces… cont Force StrengthThreats of new entrance• competitive environment• High regulatory requirement HIGH• high cost requirementThreat of substitutes• There are few direct closed substitutes• Short haul flights : Euro star or a ferry LOW•Long haul flights : No notable substitutes
Five Strategic GoalsBe the airline of choice for longhaul premiumcustomers. . key to our profitability. . deep understanding of what is required to be their airline of choice to drive our design choices on product, network and service.
Deliver an outstanding service forcustomers at every touch point. . to build on this through a revolution in the way we lead, train and reward, so that all our customers, on all routes and classes, enjoy a premium experience. . will invest both in improvements targeted, such as service style training, and in those benefiting all customers, such as Terminal 5.
Grow our presence in key global cities. . to provide the best global connectivity for our customers. . will build our presence in the top tier global cities, either directly or through our expanding network of airline partnerships.
Build on our leading position in London . To support this, we will look to influence government policy decisions, and work with the airport owners on the continued development of the infrastructure.
Meet our customers’ needs and improvemargins through new revenue streams . will explore how we can develop new products and services which exploit our assets and capabilities, and meet the needs of our core customers and enhance loyalty.
Competitive Advantage modern technology – Self Service Check-in (SSCI) . . Using IBMs kiosks . . Lower cost - estimated savings at $3.50 per passenger most advanced freight processing facilities service . BA used one of the largest computers outside the defence industry. . extract data from anywhere in the BA network in two seconds.
Strategies that have been implementing? Setting the priority (not opening too many fronts） Be more sensitive to Human aspect and job cuts. It become operations oriented, with low emphasis laid on employees moral Bob should have involved people in the process. Change accomplished through people is far more effective than change forced upon them
British Airways plans to reduce waste onfuture flights By 2014 British Airways will be reducing10% of its waste on future flights
Recommendation Community: Raise £2 million each year for our partner charities. Continue to offer a learning experience to schools in the Heathrow area at the British Airways Community Learning Centre. Support a whole range of community and conservation projects around the world Workplace: Make it easier for BA people to volunteer time to charities and community activities. Create more energy efficient workplaces for our teams worldwide. Ensure that every member of staff has the opportunity to get involved with One Destination
Recommendation… Cont Environment: Reduce our average noise per aircraft by 15% by 2015*. Become 25% more carbon-efficient by 2025 (83 g CO2 / pkm reduced from 111 g CO2 / pkm). Recycle 50% of all our waste. Reduce our net CO2 emissions by 50% by 2050. Marketplace: Make it easier for customers to carbon offset their journeys. Our key suppliers will be audited independently for their ethical practices by 2012.