Preview

Relationship Between British Airways And Iberia

Powerful Essays
Open Document
Open Document
1781 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Relationship Between British Airways And Iberia
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 they carried, it is second-largest in United Kingdom. The airline headquarter is in Waterside and its main hub is at London Heathrow Airport.
In November 2010, BA put forward a proposal that it was going to reduce the number of cabin crew from 15 to 14 on long haul flights. Further more , the company was going to give employees a pay cut and reduce employee benefits. The Unite Union a has strong dissatisfaction about the new contracts to be given to new staff and
…show more content…
4. The merger between British Airways and Iberia.
This is a new lesson for British Airlines, the company must learn for. Because of the economic crisis, it serious loss, rather than the change of the system, it uses a serious cuts.This leads to chaos and instability corporation this is unnecessary.BA has decided to reduce staffing levels in long-haul flights and also reduce the benefits of employees. This caused some strikes and BA spent about 150 million pounds.This is dilemma that BA failed to perform.
Organizations must be fully aware of the status quo, clearly explains why the existing system can not continue. BA can present the facts and figures in front of the stakeholders, such as sales number, revenue and profit. BA has become one of the most troubled airlines lack of punctuality and quality services.
Organizations must be able to understand their role in the whole operation of the business. The core must be targeted, which is attitude and value system should inevitably be challenged. Just like construction must be on a rock-solid foundation to support the whole structure, attitude and value system must be the foundation of the

You May Also Find These Documents Helpful

  • Good Essays

    D1 Business Environment

    • 2421 Words
    • 10 Pages

    Shareholders and owners can facilitate and bring more high quality services by putting more money in the company; buying fuel efficient Air planes, investing in high tech technology, employing experienced and qualified managers can bring development in overall functionality of BA. In addition to this, ordering planes like dream liner Boeing 787 by owners of BA would attract and bring glory and reputation to BA. Furthermore investing on fuel efficient planes, on one hand has profit to environment and on the other hand it reduces the expenses of fuel and consequently fares will go down by 20 % as result there will be more customers and more profit to the company and its shareholders. Moreover every measure in which there is intention either to upgrade the company or to down grade the company has its massive impact on the overall function of business by…

    • 2421 Words
    • 10 Pages
    Good Essays
  • Good Essays

    British airways

    • 3361 Words
    • 14 Pages

    British Airways is one of the International Airlines that provides its flights to 570 destinations in 133 territories. It mainly operates from the Heathrow and Gatwick. It faces many problems like 531 million pounds loss in revenue because of lack of international market study, employee relationship (strike problem) and many more. Hence an effective strategy is the only chance to overcome these problems. The strategy of British Airways includes the innovation in technological accessories, customers relationship, employee relationship, safety and security of stake holders and so on.…

    • 3361 Words
    • 14 Pages
    Good Essays
  • Good Essays

    Week 5 Mgt 351

    • 643 Words
    • 3 Pages

    1. From each change perspective, what are the key issues to understanding the wildcat strike? From an OD perspective, the leadership at BA failed in a number of areas. They did not communicate properly, they ignored the temperature of the relationship with employees, and they were shortsighted in implementing the change. This was evident in the lack of sense in implementing a change at the front of the busiest season of the year. They did not properly manage the change and in fact ignored most all areas of change management: they did not prepare employees, they did not communicate, they did not nurture employees through the change, nor did they reinforce the change and the reasons for it. From a contingency standpoint – they did not have one. As a result, customers suffered and the company lost millions. Their processes were ineffective and upper management was not informed enough to understand the consequences of their actions.…

    • 643 Words
    • 3 Pages
    Good Essays
  • Good Essays

    What the airline failed to anticipate was how the workforce was going to be affected and not just in the number of employees left. The ripple effect was that employees would not feel safe in their jobs, they were no longer committed to the airline. Employees would leave and just like with the employees who were let go, the knowledge and experience were a great loss to the…

    • 834 Words
    • 4 Pages
    Good Essays
  • Good Essays

    The merger of British Airways and Iberia is being driven by a number of such reasons. One of the most important factors behind the merger is the ability of the new organisation to provide customers with a much larger combined network. BA as of now operates 245 aircraft and flies to 149 destinations. Iberia on the other hand flies to 106 destinations with its fleet of 174 aircraft. The merged group will in future be able to operate 419 aircraft and fly to more than 200 destinations. With the two airlines having few overlapping routes, losses on account of post…

    • 1010 Words
    • 5 Pages
    Good Essays
  • Best Essays

    British Airways

    • 3116 Words
    • 13 Pages

    Furthermore, a thorough analysis of the marketing performance of British Airways will produce clear justifications and overall reviews as to how well the…

    • 3116 Words
    • 13 Pages
    Best Essays
  • Better Essays

    Micro: The first problem BA had that is not obvious was the change in the organization and culture. There need to be a more institutionalize change. New culture fosters a strong commitment to service. Also, the lack of unity and loyalty caused the airline to not be focused. There was a lack of recognition. This caused a lack of unifying corporate culture. Also, training needs for managers were needed. Organizations need to change to adapt to the changes inside and outside the organizations (Jick & Peiperl, 2011, pp. 28-35)…

    • 1098 Words
    • 5 Pages
    Better Essays
  • Better Essays

    Life at “old” British Airways lacked a unifying corporate culture. The 1971 merger of British European Airways (BEA) and British Overseas Airways Corporation (BOAC), by the British Airways Board, only succeeded in putting an umbrella over two separate mature entities. The focus of the BEA had been to build a European airline infrastructure. BOAS was an innovator and pioneered the first jet passenger service. Neither company was concerned with cost or profit. British Airways was government run and according to Jick & Peiperl (2011) “success had less to do with net income and more to do with ‘flying the British flag” (p.26). This inefficient government structure was bogged down with bureaucratic red tape. “There were a lot of people doing other people’s jobs and there were a lot of people checking on people doing other people’s jobs” (Jick 2011.p.28). The British Airways Board failed to obtain a “buy-in” from the merged company employees. According to Jick (2011) “a deceiving string of profitable years in the 1970’s made it even easier for British Airways to neglect its increasing inefficiencies”(p.28). Kotter (2012) illustrates this under “Error #1: Allowing Too Much Complacency”. Why would anything change when there was money being made? People are short-sighted and without a plan for the future, British Airways was heading for financial failure.…

    • 975 Words
    • 4 Pages
    Better Essays
  • Satisfactory Essays

    The position held by British Airways is situated in the range high-cost because they focus on Businessman who can afford a good service to pass their working trip. Also, that company is considerate as an international airline company to the extent that they provide around 170 destinations in the world in more than 80 countries...…

    • 610 Words
    • 3 Pages
    Satisfactory Essays
  • Good Essays

    1 – Introduction In different working fields, companies face the pressure of globalization, and they must find new ways to overcome this challenge. The following example, introduces the case of British Airways, which needs to deal with the globalization issue trying to reduce the operational costs, increase profits and provide suitable services to customers. According to British Airways annual report from 2008/2009, the airline carried more than 33 million passengers. It earned nearly £9 billion in revenue, a 2.7 percent increase from the previous year. At the end of March this year, it has 245 aircraft in service. It shows that the BA financial performance is improving after the financial crisis and the fluctuated oil fuel prices changes (British Airways – Annual Report and Accounts 2008/2009). However, it is a unfortunate fact that in the 2008 report of scheduled international passengers carried, which is based on International Air Transport Association, indicated that British Airways was ranked in the fifth place while the Ryanair, Lufthansa, EasyJet and Air France ranked above the BA. It was shocked to them because they were always first ranking to investigation about airlines. This figure pointed out that BA needs to plan long-term strategies in order to compete with those four airline companies in Europe and in the all world. The British Airways now tries to establish itself as a high-performing, marketfocused and global premium airline. In this paper, we focus on the structural perspective of the BA‟s company in these recent years. Depending on the three different CEOs in BA, they are the Robert Ayling, Rod Eddington and Willie Walsh respectively, this paper divided into three periods of analyzing the structures of BA. Thus, this…

    • 5676 Words
    • 23 Pages
    Good Essays
  • Better Essays

    Dan Milmo. (2009). Q&A: Iberia British Airways merger. Available: http://www.guardian.co.uk/business/2009/nov/13/implications-iberia-ba-merger. Last accessed 17 January 2010.…

    • 1179 Words
    • 5 Pages
    Better Essays
  • Powerful Essays

    American Airlines

    • 1392 Words
    • 4 Pages

    1- Issues The main issue of this case is the lack of profits of the airline industry, an industry that should be more than profitable due to the large amount of customers, the necessity of using airlines' services and the high prices charged by most of these airlines. What we are going to deal with is, why is this happening? And how is American airlines dealing with this problem?. To be able to discuss how American airlines wants to regain profitability, we must identify and analyse different issues such as, the company's background, the airline industry as a whole, the demand for air travel, the marketing strategies, the distribution systems, pricing policies etc.…

    • 1392 Words
    • 4 Pages
    Powerful Essays
  • Satisfactory Essays

    However the carrier has been looking to turn around its fortunes after making a loss in the first half of 2012. Also the carrier face other threats of high fuel costs and strike of cabin crew. The reason behind is mainly due to the external environment affecting the airline industry.…

    • 732 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    The past experienced of British Airways (BA) served as a lesson that for a business venture that in order to make profit, it is crucial to protect the image of the brand, maintain a harmonious relationship between management and the workforce which can result in avoiding financial losses. British Airways (BA) introduced an electronic clocking-in system that would record employees work start and finish times from their work day. The decision was made by management to introduced swipe card but, there was a lack of proper and adequate consultation with the affected staff members (Palmer, Dunford, & Akin, 2012). As a result, the BA staff held a twenty-four hour wildcat strike which caused BA to cancel its services to over 10,000 passengers stranded during the onset of their busy season.…

    • 1420 Words
    • 4 Pages
    Powerful Essays
  • Powerful Essays

    British Airways

    • 1614 Words
    • 7 Pages

    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.…

    • 1614 Words
    • 7 Pages
    Powerful Essays