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Brittni Pladson Kyle Bachand Stacy Li Yang Liu
Introduction – BrittniHistory – YangSWOT Analysis – KyleCompetition – StacyIndustry Analysis – BrittniRecommendations/Conclusion – Kyle
History • The History of British Airways • The Status Quo of British Airways • The Further Plan of British Airways
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
The Status Quo of British Airways • Subsidiary Company • One world • Partnership • Hubs: • London Heathrow Airport • Gatwick • Manchester International Airport
The Further Plan of British Airways • The fleet size is 253, including 19 flights in ordering. • New purchase to expand the long-haul fleet.
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.
Industry Leader Customer Service One World Alliance Business Segments Network Airline Regional Airline Non-airline Strengths
Weaknesses • #3 among European Airlines • Fleet • Boeing instead of British manufacturing
Opportunities • Alliances • More routes covering more destinations in more countries • Fleet
Threats • New Entrants • Power of Supplies • Power of Buyers • Availability of Substitutes • Competitive Rivalry
Main Competitors • Virgin Atlantic Airways • United Airlines • Air France-KLM
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
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
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
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
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
WHAT DOES BA DO? • Cutting down the costs • Laying off the people • Cooperating with Google Earth • Creating a brand new super-economic class
The Airline Industry • “Intensely Competitive Market” • Ownership • DOT Classification • International • National • Regional • Cargo
Issues with the industry • Physical cost of planes • Weather • Fuel costs: 14-16% of total costs • Labor: 40% of total costs • Intense competition
Recommendations/Conclusion • Merger/Alliances • Safety/Security • Comfort • Incentives • Frequent flier miles