In this report, I am going to be looking at British airways plc., how it began it operation its activities, the services it provides, its annual turnover, how it has grown over the few years, the comparison between its competitors and how management accounting can help it grow even better. This report will focus at a background of a chosen organisation, company analyses, cost structure strength and weakness and review it nature and how Management Accountant can supply information to assist the Management of British airways .
British airways plc. Being the largest and one of the most leading airline in the world and the flag carrier airline of the United Kingdom. Based in waterside which is very close to main base in Heathrow London and it second base is at Gatwick and the third base is London city airport .base on their fleet size which is international flight and destinations .in 1971, the British airways board was established to control both BOAC and BEA and some of these regional airlines, Cambrian form Cardiff airways while northeast airline was from Newcastle upon Tyne. The airlines above were all integrated to form British airways (BA) on March 31 1974. At the moment British airways primary operates in Europe and North America with their main office in Harmondsworth in Middlesex with about 42,377 employers in 2008. Also operate mainly for international and domestic air services for their customers with 747 -400, 777-200,777-300ER, 767-300,757-200,737-300 Boeing and airbus A319/a320 /A321, airbus A318 is being operated from London city to New York with refuelling facility. Furthermore the company ordered new 24 Boeing, 787 aircraft which would joint it long haul fleet from 2012 Check appendix 1 for more information about the company profile. (DATAMONITOR 2008 and 2010) check apendix 1 for more information.
ROLE AND THE DUTIES OF MANAGEMENT ACCOUNTING
Management accounting is design to provide basic information to business or organisation with a clear purposed and to ensure that appropriate major is taken in other achieve the main aim and objectives of that business. Management accounting can help in controlling, preparing a periodical budgets and monitoring all the activities of businesses and also help managers in other to generate relevant information about the profit and future cost as well as proper business decision. It can also provide managers with information on day to day changes and enforce on new and relevant decision to be taken by all departments plus the cost method that should be considered. It can also identify and solve basic problem by preparing the statement of account either monthly or yearly for that organisation. COLINS DRURY management and cost accounting 7th edition
4.1 ANANYSIS OF BRITISH AIRWAYS
According to the research information in March 2010 the company had 238 aircraft in operation. on 12th November 2009 British airways agreed to merge with Iberia and became the third largest airline in the whole world, British airways being one of the world’s famous and biggest airline ,with the largest air cargo which is up to 805,00 tons to all over the world and operates 300 routs across the world in 75 countries , including north America ,Central and Latin America, western Europe ,North and Eastern Europe , Spain ,Africa and Asia plus carry about 33 million passengers with a very wide range of both international and domestic freights, makes more of its revenue through international travels because of the amount of the tickets purchased daily(yearly ) therefore it help them reduce the risk in their single market transactions, rising fuel consumption and also making an impact on their profit margin. It has a strong financial revenue since it one of the world largest airline company and uses a vital role of management...