British Airways Case Study

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Part2 Academic Report - The BA Dispute from the perspective of BA management team 2.1 Introduction British Airways, also referred to by its shorten name BA, is the largest airline in the United Kingdom based on fleet size, international flights and international destinations. When measured by passengers carried, it is second-largest in United Kingdom (behind EasyJet). The airline is based in Waterside and its main hub is at London Heathrow Airport. A British Airways Board was set up in 1972 by the United Kingdom government. And the purpose of establishing the company is to manage the two nationalized airline corporations, British Overseas Airways Corporation and British European Airways, and two regional airlines, Cambrian Airways and Northeast…show more content…
The economic downturn has resulted in a great fall in passengers numbers. Commercial interaction between countries has decreased too. High oil prices makes business cost stay in a high level. Some small airline companies have either experienced bankruptcy or have been acquired by big companies. Overall, the aviation market has been weak, and would stay weak in the next few years.[ The Economist . (Jul 17th 2008 ). Aviation Crisis? What crisis?. Retrieved November 5,2015, from] COMPETITION The biggest pain for British airways is stiff competition, the fuel has to be bought with weak pounds. In short haul routes, British Airways faces increased competition after Virgin Atlantic got the license from the UK government which means they could fly between London and Scotland. The UK airline market plays an important role in Sir Richard Branson’s airline expansion plans. “We have fought hard for the right to fly short haul and take a strong challenge to British Airways within these shores,” Steve Ridgway said, who is Virgin Atlantic’s chief executive.[ White, G. (2012, Nov 19). Virgin Atlantic steps up British Airways competition. Retrieved November 5,2015, from…show more content…
Geographical position of Heathrow Airport, which is the base of British Airway does not have any advantage compared to Dubai, New York,

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