AGIFORS Airline Overview

BA Headlines since May 2001 “Foot & Mouth Crisis hits UK tourism figures” “Horror of Terrorist attacks on US” “National Carrier suffers Job Cuts” “BA names its plans for Future Size & Shape” “13,000 jobs to go!” “Ops Control boss gets promotion”

The Last 12 months Foot & Mouth Crisis hit travel industry hard and resulted in a clear downturn in the market North American routes hit hard - profits started to fall Aircraft Profile Changed, certain fleets grounded, and the strategy for the fleet changed to move towards smaller aircraft September 11th compounded an already sizable problem Consequently more fleets were grounded, and routes were cut where they were non-profitable

Future Size & Shape FSAS was the name given for the re-shape of British Airways, and how it would be best placed to survive the challenges it is facing 23% reduction in headcount needed (13,000 from a total of 60,000) Business Response Schemes offered, overtime drastically reduced in order to reduce MPE (similar to furlough in US) Voluntary Severance & Early Retirement packages offered to staff in order to avoid compulsory redundancy

Flying hours, ASKs and Seats 2002 V’s 2001

Longhaul & Shorthaul 2002 V’s 2001

The Effect on Operations Control This time last year we had a grand plan for a suite of tracking products for AC, FC & CC - IT budget reduced drastically SBS Maestro Crew chosen to replace SBS Track In-house development for new aircraft tracking tool to replace Pulsar with Pulsar II In-house project just started to create a ‘real-time feeds’ mechanism & alerting system for Cabin Crew Control Geoff Want (GM Operations Control) promoted to Director of Safety, Security & Environment