Brittni Pladson Kyle Bachand Stacy Li Yang Liu

Introduction – Brittni History – Yang SWOT Analysis – Kyle Competition – Stacy Industry Analysis – Brittni Recommendations/Conclusion – Kyle

History  The History of British Airways  The Status Quo of British Airways  The Further Plan of British Airways

The History of British Airways  In 1919, the first scheduled international passenger service  In 1952, the first jet service  In 1976, the first supersonic service

The Status Quo of British Airways  Subsidiary Company  One world  Partnership  Hubs:  London Heathrow Airport  Gatwick  Manchester International Airport

The Further Plan of British Airways  The fleet size is 253, including 19 flights in ordering.  New purchase to expand the long- haul fleet.

The Struggles in Operation  British Airways Ethnic Liveries  British Airways Cross Controversy  Child Protection Policy  British Airways should pay more attention to being considerate before carrying out any policy.

SWOT Analysis

Strengths  Industry Leader  Customer Service  One World Alliance  Business Segments  Network Airline  Regional Airline  Non-airline

Weaknesses  #3 among European Airlines  Fleet  Boeing instead of British manufacturing

Opportunities  Alliances  More routes covering more destinations in more countries  Fleet

Threats  New Entrants  Power of Supplies  Power of Buyers  Availability of Substitutes  Competitive Rivalry

Main Competitors  Virgin Atlantic Airways  United Airlines  Air France-KLM

Virgin Atlantic Airways  The most primary hostile domestic competitor  Purpose: breaking the monopoly of British Airways, becoming the largest Airways, becoming the largest airlines company in UK. airlines company in UK.  Greatly improved the quality of Economic Class Class

British Airways vs. Virgin Atlantic  Passengers Carried: 35.5 million vs. 4.0 million  Counties covered: 73 vs. 18  Number of aircraft: 234 vs. 43  2006 Revenue: $14.8 billion vs. $1.91 billion

United Airlines United Airlines  World's 2 nd -largest airline by revenue-passenger-kilometers  World’s 3 rd -largest by total operating revenues  World’s 4 th -largest by total passengers transported

Air France-KLM  World’s the largest airline company by total operating revenues  World’s the 3 rd -largest airline company by passengers-kilometers  the most profitable company in Europe

COMPETITION AMONG BA,UA AND AF-KLM

Strengths of UA and AF-KLM  Larger scale  Creating and occupying new markets at the first time. Esp. China market  focusing on high cost-performance

WHAT DOES BA DO?  Cutting down the costs  Laying off the people  Cooperating with Google Earth  Creating a brand new super- economic class

The Airline Industry  “Intensely Competitive Market”  Ownership  DOT Classification  International  National  Regional  Cargo

Issues with the industry Issues with the industry  Physical cost of planes  Weather  Fuel costs: 14-16% of total costs  Labor: 40% of total costs  Intense competition

Recommendations/Conclusion  Merger/Alliances  Safety/Security  Comfort  Incentives  Frequent flier miles

QUESTIONS?