British Airways - case study

Résumé du document

In today's world, characterized by millions of people who have the necessity and the desire to move as quickly as possible from one side of the globe to the other, the sector of the air transports obviously plays a major role of primary importance, being one of the world ?s biggest industries and creating a revenue of $ 375 billion. The services offered by this kind of industry have encouraged the exports, the investments (Foregin direct investments) in other countries, the tourism and have enabled standardization among the countries accelerating the globalization process. British Airways is one of the first companies to operation in the air transportation sector. In fact, it came into being after the World War I in the period of the civil aviation. As a matter of fact, British Airways executed the first international trade between London and Paris in 1919.

Extraits

[...] Multiculturism Great Britain is known as one of the most multicultural country in the world. Indeed, the country counts Indians, Chinese, Pakistanis, etc. The presence of a population with different nationalities remains a strong advantage to the aviation sector. The country collects in its cities people all around the world. Let's not forget the corporate world, where London remains one of the main centres of financial negotiations in Europe and even across the world SWOT analysis The SWOT analysis of BA is presented below, according to the different factors presented above. [...]

[...] Indeed, compared 13 with last year almost doubled. Source : http://media.corporate-ir.net/media_files/irol/69/69499/Annual_Report_and_Accounts.pdf , p Cash Flow According to the Cash Flow Statement Table in the Appendix, BA's cash flow seems to be limited. A lot of expenses are seen regarding the pension plans. Perhaps do these expenses explain the reduction of cash flow in the company? Moreover, can we suppose that a part of the expenses have gone into provision of pensions more than the other years, and that is why the profit has decreased? [...]

[...] What regards the longhaul destinations, the barriers are stronger because of the investments and the costs. The bargaining power of suppliers: in this case, we can consider the oil sector as a supplier because the prices of an airline ticket depend of it. When the oil prices increases, the airlines are forced to increase their prices in order to cover this additional expense. The bargaining power of customers: Today, the price of an airline ticket varies instantly 15 according to the demand, easily calculated via the number of e-bookings. [...]

[...] The reality has to be found between these four evolutions. Here are the most probable evolutions that will affect BA's situation: - Slow technology evolutions slow reduction on global warming. - Difficult to find replacement for oil high oil price but reduction of consumption. Real replacement for oil in the long future (more than 60 years). Variable economical development but reduction of inequalities between the countries despite severe crisis for some low developed countries. Reduction of sanitary crisis. - According to us, the new technologies will not be developed soon enough to prevent global warming and oil crisis. [...]

[...] BA is part of Oneworld since 1999. Oneworld regroups 22% of world traffic. Oneworld alliance “Oneworld® is a global alliance that brings together ten of the world's biggest and best airlines all committed to providing world-class service and value.”13 Oneworld includes alliances with several airlines across the world such as: American Airlines: (the biggest single airline in the world), British Airways (the leading international airline), QANTAS (one of Australia's strongest brands), Cathay Pacific Airways (Asian airlines), Iberia (the top carrier between Europe and Latin America), LAN lone star in the South American Finnair (the major airline in Northern Europe), Japan Airlines (one of the top airlines in the world), etc. [...]