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  1. Brittni Pladson Kyle Bachand Stacy Li Yang Liu

  2. Introduction – BrittniHistory – YangSWOT Analysis – KyleCompetition – StacyIndustry Analysis – BrittniRecommendations/Conclusion – Kyle

  3. History • The History of British Airways • The Status Quo of British Airways • The Further Plan of British Airways

  4. The History of British Airways • In 1919, the first scheduled international passenger service • In 1952, the first jet service • In 1976, the first supersonic service

  5. The Status Quo of British Airways • Subsidiary Company • One world • Partnership • Hubs: • London Heathrow Airport • Gatwick • Manchester International Airport

  6. The Further Plan of British Airways • The fleet size is 253, including 19 flights in ordering. • New purchase to expand the long-haul fleet.

  7. The Struggles in Operation • British Airways Ethnic Liveries • British Airways Cross Controversy • Child Protection Policy • British Airways should pay more attention to being considerate before carrying out any policy.

  8. SWOT Analysis

  9. Industry Leader Customer Service One World Alliance Business Segments Network Airline Regional Airline Non-airline Strengths

  10. Weaknesses • #3 among European Airlines • Fleet • Boeing instead of British manufacturing

  11. Opportunities • Alliances • More routes covering more destinations in more countries • Fleet

  12. Threats • New Entrants • Power of Supplies • Power of Buyers • Availability of Substitutes • Competitive Rivalry

  13. Main Competitors • Virgin Atlantic Airways • United Airlines • Air France-KLM

  14. Virgin Atlantic Airways • The most primary hostile domestic competitor • Purpose: breaking the monopoly of British Airways, becoming the largest airlines company in UK. • Greatly improved the quality of Economic Class

  15. British Airways vs. Virgin Atlantic • Passengers Carried: 35.5 million vs. 4.0 million • Counties covered: 73 vs. 18 • Number of aircraft: 234 vs. 43 • 2006 Revenue: $14.8 billion vs. $1.91 billion

  16. United Airlines • World's 2nd-largest airline by revenue-passenger-kilometers • World’s 3rd-largest by total operating revenues • World’s 4th-largest by total passengers transported

  17. Air France-KLM • World’s the largest airline company by total operating revenues • World’s the 3rd-largest airline company by passengers-kilometers • the most profitable company in Europe

  18. COMPETITION AMONG BA,UA AND AF-KLM

  19. COMPETITION AMONG BA,UA AND AF-KLM

  20. Strengths of UA and AF-KLM • Larger scale • Creating and occupying new markets at the first time. Esp. China market • focusing on high cost-performance

  21. WHAT DOES BA DO? • Cutting down the costs • Laying off the people • Cooperating with Google Earth • Creating a brand new super-economic class

  22. The Airline Industry • “Intensely Competitive Market” • Ownership • DOT Classification • International • National • Regional • Cargo

  23. Issues with the industry • Physical cost of planes • Weather • Fuel costs: 14-16% of total costs • Labor: 40% of total costs • Intense competition

  24. Recommendations/Conclusion • Merger/Alliances • Safety/Security • Comfort • Incentives • Frequent flier miles

  25. QUESTIONS?