British Airways Management Analysis

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Management Research Report

What has British Airways done during the recession to be competitive against Ryanair and Easyjet?

Table of Contents

1. Introduction ………………………………………………………………………………………………….. 3

2. Methodology …………………………………………………………………………………………………. 4

3. Short History

3.1 British Airways ……………………………………………………………….……………………5

3.2 Easyjet and Ryanair………………………………………………………………………………..6

4. Prior to the Recession

4.1 British Airways ……………………………………………………………………………………..7

4.2 Easyjet …………….………………………………………………………………………………...8

4.3 Ryanair ……………………………………………………………………………………………... 9

5. Recession and Airline Industry

5.1 Impact of current recession on the airline industry …………………………………………….. 10

5.2 Impact of recession on British Airways …………………………………………………………... 11

5.3 Impact of recession on Easyjet and Ryanair …………………………………………………….. 16

6. The Strategies implemented by British Airways

6.1 Strategies implemented to compete against Easyjet and Ryanair……………………………… 18

7. Recommendation ……………………………………………………………………………………………… 23

8. Conclusion ……………………………………………………………………………………………………... 24

9. Reference and bibliography……………………………………………………………………………………. 25

1. Introduction

This report will focus on the current economic crisis and the effect it has had upon British Airways. The passenger figures at London Heathrow, Gatwick, Standsted and other major airports have dropped by 7.4 per cent last year compared to 2008.(Telegraph, 2009) Moreover, many different surveys have shown that people are now more reluctant to travel to foreign destinations for holiday. Moreover, the Civil Aviation Authority (CAA) announced that only 216.8 million travelers were registered in 2009, the lowest figures since 2004, and the experts believe that the figures will continue to drop for the foreseeable future. (BBC , 2010)

These official figures paint a gloomy future for the aviation industry and most airlines. Indeed, the current economic crisis has taken no hostage, and British Airways (“BA”) is not an exception; in fact, they have faced more adversities than other airlines. This report will show what strategies BA has conjured up to survive the recession and compete against low cost airlines such as Easyjet and Ryan Air, who have actually somewhat benefitted from the recent economic crisis.

2. Methodology (-is that ok to use “we” instead of “I”?)

This paper will first be looking at how British Airways, Easyjet and Ryanair performed before the recession. This will highlight the impact the recession has had on these airlines. We will be looking at their history and financial performance before circa 2008, collecting data from articles published by the airline industry which are available from the internet.

To bring to light the impact the recent economic crisis has had, we will look at their financial performance for the last two years. As we compare their performances, we will how much the British Airways suffered, in contrast to low budget airlines such as Easyjet and Ryanair, who have somewhat benefitted from the economic downturn.

The strategies adopted by British Airways to survive the economic crisis and compete against low budget airlines will be looked at individually. We will assess why British Airways were prompted to use these methods.

This paper will then consider strategies adopted by other airlines to survive the recent economic downturn. This will give us an indication of whether the strategies implemented by British Airways will succeed or help it to regain their position as the “world’s favourite airline”.

In conclusion, this report will discuss the repercussions of the strategies and its financial outcome, and whether British Airways should maintain its existing business approach or adapt to the current crisis on a more permanent basis, perhaps similar to that of Easyjet and Ryanair.

3. Short History

3.1 British...
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