British Airways (BA) was created in 1974, when the British Overseas Airways Corporation (BOAC) and British European Airways Corporation (BEA) were combined under the newly formed British Airways Board.
British Airways, UK’s largest international scheduled airline which operates one of the most extensive international scheduled airline route networks, across 300 destinations worldwide, is a leading and established business in the airline industry, In 2007/08, BA recorded revenues of over £8,753 million, 3.1% up from previous year (British Airways).
In 2007, The United States of America experienced a credit crunch which had originated by the bursting of speculative bubbles in the US housing market. Although BA was not drastically affected then, by mid 2008, the global financial crisis was widely spread in Europe and most European countries were affected by an economic recession. As “Global inflation climbs to historic levels” (PUMBERG, Kevin and Johnson, Steven C), the airline industry in UK suffered a major setback.
As a result of the recession and to restore profitability to ensure long term survival, change management was needed. BA’s Chief Executive Officer (CEO) Willie Walsh decided to restructure BA and to cut down on BA’s expenses. Willie Walsh’s restructuring program was however badly received by BA’s cabin crews. A long running of industrial disputes ensued.
Change Management in British Airways
1 Organisation Context (British Airways: 2009 – 2011)
BA’s CEO, Willie Walsh, was appointed in October 2005. Before joining BA, Willie Wash guided Irish carrier, Aer Lingus, through the turbulence in the airline industry after the September 11, 2001 attacks. He successfully reinvented Aer Lingus as a profitable no-frills airline, while other established European flag carriers did not do as well. Walsh slashed costs by 30% and shed more than a third of staff and was quoted saying "we make no apologies for...
Please join StudyMode to read the full document