Iag Airlines Assignment (1)

8/17/2019 Iag Airlines Assignment (1)

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University of Greenwich

ASSIGNMENT SUBMISSION COVER SHEET

SUBJECT CODE : FINA 1035

SUBJECT TITLE : Strategic Finance Management

PO!AMME : BA "#$n%& Acc$'nting an( Finance

SE!i ID : %c)*+)0003,-./

UO! ID : 000.015

LECTUE2S NAME : Mr 4ic*ne% Te6en(ran

LEANIN! CENTE : SE!i COLLE!E 7UALA LUMPU

SUBMISSION DATE : 1. MAC# 01/

1


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Tabe of Contents

Intro!"ction

Internati$na+ Air+ine% !r$'8 "IA!& t$geter 9it it% %'%i(iarie% tat are Briti%

Air9a;% "BA&< Ieria< an( 4'e+ing< gi6e tra6e++er an( carg$ tran%8$rtati$n %er6ice in

te E'r$8ean mar*et IA! e+$ng a6iati$n in('%tr; IA! i% te 9$r+(=% %i>t igge%t

gatering% in +igt $? inc$me an( i% te tir( igge%t in E'r$8e 1 Te 8rinci8+e

a(6antage ?r$m merging $? BA an( Ieria i% t$ ?aci+itate te 9eigt $n carrier%=

inc$me% M$%t a% $? +ate< te Iri% g$6ernment a% c$nc'rre( an $??er $? it% 5@ %ta*e

1 IAG, 2015, introduction http://centreforaviation.com/analysis/britishair!aysandiberia

mer"ercompletedplannin"toaddmoreairlinestothe"roup##2$2

2

Content #a$e

Intr$('cti$n 3

Financia+ ati$

-)/

Mar*eting Ana+;%i%

),#M Ana+;%i%

10

O8erati$n Ana+;%i%

11)1

Strengt An( ea*ne%%

13)15

A88en(i> 1/

e?erence% 1

http://centreforaviation.com/analysis/british-airways-and-iberia-merger-completed-planning-to-add-more-airlines-to-the-group-44282http://centreforaviation.com/analysis/british-airways-and-iberia-merger-completed-planning-to-add-more-airlines-to-the-group-44282http://centreforaviation.com/analysis/british-airways-and-iberia-merger-completed-planning-to-add-more-airlines-to-the-group-44282http://centreforaviation.com/analysis/british-airways-and-iberia-merger-completed-planning-to-add-more-airlines-to-the-group-44282http://centreforaviation.com/analysis/british-airways-and-iberia-merger-completed-planning-to-add-more-airlines-to-the-group-44282


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in te ?+ag tran%8$rter Aer Ling'% t$ IA! it Aer Ling'% $ining IA!=% internati$na+

net9$r*< ti% c$'+( 8re%ent an $88$rt'nit; ?$r te air+ine t$ 6ent're int$ A%ian

(e%tinati$n Ti% 9i++ a((iti$na++; re'ire in6e%tment t$ e'i88e( aircra?t int$ +$ng

a'+

SBU

Pricing $? %eat%3 Briti% Air9a;%) Fir%t c+a%% B'%ine%%

c+a%% %eat%

Ieria B'%ine%% Ec$n$mic c+a%% %eat%

4'e+ing tree a%i% ?are at +$9 c$%t

Carg$ Ser6ice C$ntri'te 5@ $? re6en'e

Diagram 1

Financia+ ati$

2 IAG,2015, Introduction http://europa.eu/rapid/pressrelease%I&155'(1%en.htm

' IAG annual report ,2015

'

http://europa.eu/rapid/press-release_IP-15-5371_en.htmhttp://europa.eu/rapid/press-release_IP-15-5371_en.htmhttp://europa.eu/rapid/press-release_IP-15-5371_en.htm


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#rofitabiity

Inc$me (e6e+$8ment a% rec$6ere( t$ 8re)rece%%i$n +e6e+ an( IA! i% *ee8ing '8 8r$?itai+it;

?r$m 013 $n9ar(% Ten again< 9i+e te '%ine%% a% t'rne( $'t t$ e etter at $6er%eeing

+imit an( 8r$('cing %'$r(inate inc$me< it ?ace% increa%ing e>8en%e ?$r ?'e+< +a$'r an(

maintenance O6er 8a%t (eca(e%< ig e>8en%e% $? ?'e+ +ea( t$ e>8an( $8erating c$%t% - IA!

a6e attem8te( t$ m$(erate ti% increment tr$'g %'88$rting %;%tem% an( te 'ti+iati$n $?

m$re '8 t$ (ate< m$re 8r$('cti6e aircra?t 9it enance( $8erating 8r$ce('re L$9er ?'e+

'rn re('ce% a++ $'t 'ti+iati$n an( a((% t$ teir ene?it%BA $+i(a; i% *e; %$'rce 9ic

generating re6en'e an( (eman( ?$r IA! It e+8% tem t$ earn m$re 8r$?it ?$r teir gr$9t

A((iti$na++;< IA! i% ca8ita+ inten%i6e an( a% an$rma+ %tate $? ?i>e( c$%t Ti% *e;

c$m8$nent t$ generate an( ma>im'm ret'rn $n in6e%tment #ence< an a%cent in in6e%tment

tr$'g 8re%enting ne9 air8+ane i% a mar*er $? e>8ecte( (e6e+$8ment in ?'t're re'e%t% On

te $ter an(< a((iti$na+ ca8acit; ma; 'rt margin% a% it 8r$m8t% +$9er ;ie+( an( '%e rate%5

Beca'%e $? an increment in te aircra?t %ie< (e6e+$8ment in a6ai+a+e %eat mi+e i% iger an(

te +$a( ?act$r e+ement 9i++ ig

In 01< Ieria ma(e a ra(ica+ m$6e t$ c't %ta?? in te $rganiati$n an( ret'rn int$

8r$?itai+it;/ Ti% C$%t e??ecti6ene%% met$($+$g; 9a% '%e?'+ ?$r IA! t$ %8are m$re ca%

?r$m 8a;ing %a+ar; an( a6$i(ing ig ta> O6era++< it 9a% +$ng) term 8+an t$ t'rn te '%ine%%

ar$'n( an( (e6e+$8 A% a tran%ient re%'+t< ti% +ea( t$ +$9er 8r$?itai+it; ?$r te ;ear an( ig9$r*er ta> a%%e%%ment a% te in('%tr; nee(e( t$ 8a; 'ge am$'nt $? c$m8en%ati$n Ti%

e>8en(e( m$re m$ne;< 9ic 8r$m8t +$%% $? in?+'ence in +i'i(it; e+ement

# IAG, annual report, 20112015

5 )ource: http://!!!.thesba.com/2011/0'/22/si*!aystoimprovepro+tability/

IAG, 2012,- analysis

#

http://www.thesba.com/2011/03/22/six-ways-to-improve-profitability/http://www.thesba.com/2011/03/22/six-ways-to-improve-profitability/


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IA! i% te%te( ; ig c$%t%< 8artic'+ar+; ?'e+ c$%t%< $9e6er te;=re ?in(ing a 9a; t$ $+%ter

ene?it% in te c+$%e term< O6er te m$re e>ten(e( term< te; antici8ate tat in('%tr; 9i++

8r$?it ; c$n6e;ance% $? ne9< m$re ?'e+)8r$('cti6e aer$8+ane%< (imini%ing $t %'88$rt an(

?'e+ c$%t% O8erati$na+ enancement% c$n6erge $? carrier% an( %'$r(inate inc$me% 9i++

+i*e9i%e $+%ter inc$me%< +$$*ing g$$( ?$r te '%ine%% %tan(8$int

%i&"i!ity

M$(erate m$6ing in6ent$r; an( +$ng term $rr$9ing t$ re8a; %$rt) term (et i% a rea%$n ?$r

IA! t$ 8er?$rm 'n(erneat te '%ine%% n$rma+ M$re$6er< ig $rr$9ing% 9i++ 8r$m8t an

increment in te ?inance c$%t Ti% 9$'+( 8$%iti6e+; 8r$m8t rai%e intere%t rate Be%i(e%<

a6ing e>8an(e( it% $+igati$n< IA! rai%e% it% cre(it (anger creating an increment in te

intere%t rate carge( ; teir agent T$ e>8an( 8r$?itai+it; an( t$ g'arantee tat IA! a%

a(e'ate m$ne; t$ meet %$rt) term c$mmitment%< it m'%t minimie te in6e%tment $r +$an%

In a((iti$n< (ecrea%ing rec$r( recei6a+e ; e>8an(ing gatering 9i++ enance inc$me.

( IAG,2015, AA 3&4

$)ource: http://!!!.accountin"formana"ement.or"/currentratio/

5

http://www.accountingformanagement.org/current-ratio/http://www.accountingformanagement.org/current-ratio/


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Investor Ratio

IA! i% earning 8er %are %ee% an im8$rtant an( (e6e+$8 enance ;ear ; ;ear , It im8+ie% a%

te %are 8rice *ee8% $n e>8an(ing< te; 9$'+( create m$re ret'rn% ?$r in6e%t$r an( 9i++ e at

+e%%ene( (anger Ti% 9$'+( a+%$ 8r$m$te %are re8'rca%e%< 9ic 9$'+( (ecrea%e te

'antit; $? %are% $'t%tan(ing< e>8an(ing in gaining 8er %are an( e+e6ating te '%ine%%

%ect$r ene?it $? remaining %are%

Fr$m te ca+c'+ati$n< IA! a( +$9 8rice earning e+$9 tan it% c$m8etit$r% 10 It (em$n%trate%

an a%ence $? tr'%t in in6e%t$r a$'t te 8$$r 8re%ent an( ?'t're e>ec'ti$n $? te IA! L$9er

PGE rati$ re?+ect 8$$rer ?'t're $8en ($$r% $r 8$%%i+;< a (ea+ i? te '%ine%% %ect$r i% $6er)

8e%%imi%tic $r i? $ne tr'%t%< te '%ine%% %ect$r i% n$t c$n%i(ering 8$tentia+ re'i+(ing $r a

ta*e$6er tat 9$'+( enance ?'t're 8r$%8ect%

In %$rt< e6en t$'g te c$m8an; i% '%ing +$t ca% t$ 8a; ta>< c$m8en%ati$n< an( a6ing

8r$+em t$ 8a; teir (et in c'rrent 't te c$m8an; a6e +$t ?i>e( a%%et< 9ic e+8

generating %a+e% re6en'e t$ te c$m8an; B; re?erring t$ te c$m8an;2% %a+e% re6en'e< it can

%ee c+ear+; tat te c$m8an;2% 8er?$rmance a% een increa%ing %ince te ;ear 013

6 IAG,201' AA 3&4

10 IAG, 20112015 AA 3&4


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Mar'etin$ anaysis

4UELIN!

IBEIA

BITIS#

AIAHS CA!O

Diagram "BC! Matri>&

#ro!"ct

4'e+ing i% a %tar 8r$('ct Te; are tir( +arge%t +$9 c$%t carrier 9ic generating +arge

am$'nt $? ca% t$ IA! ; carging +$9 8rice t$ it% c'%t$mer #a6ing ig %are an( gr$9t

in a %$rt 8eri$( in(icate te; a( %tai+i%e( 8$%iti$n in ti% %er6ice in('%tr; Te; are

attracti6e an( $+( a %$+i( ?$c'%e( 8$%iti$n in E'r$8ean mar*et 4'e+ing 8ri6i+ege( a% e%t

+$9) c$%t air+ine at air tran%8$rt a9ar( an( a( $8erati$n %a?et; a'(it"IOSA& certi?icati$n ;

IATA %'88$rt% tat te; a6ing m$%t a%t$'n(ing %tan(ar( in $t 'a+it; an( %ec'rit; 11

Ieria i% a 8r$+em ci+( Inc'rre( $8erating +$%e% 9ic in?+'ence teir mar*et %are t$ e

+$9 an( a( ig gr$9t in mar*et

11)ource: http://!!!.vuelin".com/en/!earevuelin"/pressroom/press

releases/corporate/bud"iesa!ards

(

http://www.vueling.com/en/we-are-vueling/press-room/press-releases/corporate/budgies-awardshttp://www.vueling.com/en/we-are-vueling/press-room/press-releases/corporate/budgies-awardshttp://www.vueling.com/en/we-are-vueling/press-room/press-releases/corporate/budgies-awardshttp://www.vueling.com/en/we-are-vueling/press-room/press-releases/corporate/budgies-awardshttp://www.vueling.com/en/we-are-vueling/press-room/press-releases/corporate/budgies-awards


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Carg$ *n$9% a% ($g Te; %$9 +$9 gr$9t an( +$9 %are eca'%e (r$8 in re6en'e1 Ti% i%

n$t ea%; t$ IA! t$ (i6e%t carg$ e6en t$'g it n$t 8r$?ita+e t$ tem Tere?$re<

(i%in6e%tment i% e%t %trateg;

Briti% air9a;% ca% c$9 8r$('ct Te; are *e; %$'rce $? ca% an( reg'+ar+; centre t$ te

'%ine%% Te; %$9 +$9 gr$9t $9e6er ig %are% BA a% name( te 9inning c$n%'mer

S'8erran( $? 01- an( e%t internati$na+ ?ir%t c+a%% ; OA!13 It %$9% tat BA a( %$+i(

aggre%%i6e 8$%iti$n ;et in '%ine%% %ect$r Te; create m$re m$ne;< tere?$re gi6ing

in6e%tment re%$'rce% t$ $ter 9e++)intenti$ne( item% It% ran*e( 0 t in S*;tra> 9$r+( air+ine

a9ar( 0151-

(ia$ra) *

#RICE

Briti% a6iati$n r$'te $??er 8remi'm c+a%% %eat% 9it ig ca+ire in c$n'ncti$n 9it ig

c$%t% Ti% %8eci?ic %;%tem i% a (e%ign ?$r ?$c'%ing $n te '%ine%% c+a%% *ee8ing in min( te

en( g$a+ t$ %'%tantiate tem %'8eri$r t$ teir (i??erent c$ntenti$n% +i*e L'?tan%a15 BA

12 IAG,201# AA 3&4

1')ource:https://!!!.britishair!ays.com/en"b/bamediacentre/ne!sarticles7articleI89201#010$0520.;l


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$+i(a; $ne te e>am8+e ?$r 'n(+e 8rice 9ere te; 8r$6i(e acc$mm$(ati$n< ?$$( an( mea+

a% 8ac*age1/ Di??erent t;8e $? 8ricing '%ing ; air+ine% t$ attract (i??erent gr$'8 $? c'%t$mer

ence increa%e teir re6en'e +e6e+

#%ACE

BA ?$++$9 Inten%i6e (i%tri'ti$n %trateg; c$ncentrate% $n ma*ing te 8r$('ct a6ai+a+e

e6er;9ere at an; time Be%i(e%< tic*et a6ai+a+e in 9e%ite +i*e E>8e(ia< ma*em;tri8c$m

an( can '; ?r$m tra6e+ agencie% t$$1 Te%e %trategie% gi6e item c$n%ci$'%ne%%< e>8an(e(

(ea+% an( 8r$?it< %$9ca%ing 8r$('cti6it; an( c+ient ac*n$9+e(gment

#ROMOTION

A(6erti%ing tr' %$cia+ net9$r* +i*e H$'T'e< T9eet an( BBC ne9% e+8 tem t$ 8r$m$te

teir ran( t$ te 9$r+( 1. BA $??er% ?+igt% 6ia $ne9$r+(K a++iance 'n(er c$(e %aring

agreement< 9ic e+8 t$ 8r$m$te an( %e++ %eat%1,In a((iti$na++;< A6i$% %$+( t$ '%ine%%

acc$m8+ice% t$ '%e in %8ecia+ 8r$gramBA a+%$ %8$n%$r Briti% aca(em; $? ?i+m an(

te+e6i%i$n art% an( t$ O+;m8ic 010 Pr$m$te e??ecti6e+; $? te item get e>tra$r(inar;

re8'tati$n am$ng te c+ient in +igt $? %'cce%%?'+ 8'+iciing an( it +i*e9i%e a%%i%t ti%in('%tr; 9it getting etter ret'rn%

1 )ource: http://!!!.britishair!ays.com/en"b/destinations/holidaytypes/allinclusiveholidays

1( )ource:http://!!!.ma?emytrip.com/international@i"hts/britishair!aysba.html

1$)ource: http://!!!.bbc.com/ne!s/business161#('6'

16)ource: https://!!!.onetravel.com/airlines/britishair!aysba

20 )ource:http://!!!.britishair!ays.com/en"b/information/aboutba/sponsorship

6

http://www.britishairways.com/en-gb/destinations/holiday-types/all-inclusive-holidayshttp://www.britishairways.com/en-gb/destinations/holiday-types/all-inclusive-holidayshttp://www.makemytrip.com/international-flights/british-airways-ba.htmlhttp://www.bbc.com/news/business-19147393http://www.bbc.com/news/business-19147393https://www.onetravel.com/airlines/british-airways-bahttps://www.onetravel.com/airlines/british-airways-bahttp://www.britishairways.com/en-gb/information/about-ba/sponsorshiphttp://www.britishairways.com/en-gb/destinations/holiday-types/all-inclusive-holidayshttp://www.britishairways.com/en-gb/destinations/holiday-types/all-inclusive-holidayshttp://www.makemytrip.com/international-flights/british-airways-ba.htmlhttp://www.bbc.com/news/business-19147393https://www.onetravel.com/airlines/british-airways-bahttp://www.britishairways.com/en-gb/information/about-ba/sponsorship


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H")an Reso"rce Mana$e)ent

Cost effectiveness

In $r(er t$ ma*e IA! a% a c$%t %a6ing in('%tr;< Ieria g$ing tr$'g 9$r*?$rce re('cti$n

8r$ce%%1 It migt n$t e??ecti6e ?$r n$9 't in ?'t're 8eri$( it ma; gi6e 8$tentia+ t$ gr$9

re6en'e Em8+$;ee% ec$me% +e%% tr'%ting $n management an( m$re a8t $n +$$* ?$r

%$me9ere ?$r 9$r*

Co)+etency

A n'mer $? (e6e+$8ment 8r$gramme% an( training ?$r %ta?? r'n% ; BA Te +$9er a6erage

$'r $? tat training i% 33 $'r% Be%i(e%< mi>e( ?+eet i% a c$minati$n $? +$ng an( %$rt

a'+ (e%tinati$n ?+; ; BA cain cre93 B; ta*ing a +itt+e re%t< cain cre9 a6e t$ 9$r* in

21)ource: http://!!!.the"uardian.com/business/2012/nov/06/internationalairlines"roupbattlesta

22)4B3: http://!!!.fte>ereC.com/britishair!aysfuturepilotpro"ramme

2')ource: http://!!!.britishair!ays.com/careers/mi*ed@eet/mi*ed%@eet.shtml

10

http://www.theguardian.com/business/2012/nov/09/international-airlines-group-battle-staffhttp://www.theguardian.com/business/2012/nov/09/international-airlines-group-battle-staffhttp://www.theguardian.com/business/2012/nov/09/international-airlines-group-battle-staffhttp://www.ftejerez.com/british-airways-future-pilot-programmehttp://www.britishairways.com/careers/mixedfleet/mixed_fleet.shtmlhttp://www.britishairways.com/careers/mixedfleet/mixed_fleet.shtmlhttp://www.theguardian.com/business/2012/nov/09/international-airlines-group-battle-staffhttp://www.theguardian.com/business/2012/nov/09/international-airlines-group-battle-staffhttp://www.ftejerez.com/british-airways-future-pilot-programmehttp://www.britishairways.com/careers/mixedfleet/mixed_fleet.shtml


11/40

$t a'+ an( te; re9ar(e( ?$r teir 8er?$rmance i? it i% g$$( en$'g It i% t$ a6$i( tem

?r$m gi6ing im8r$8er %er6ice t$ te c'%t$mer an( (em$ti6ate( T'%< %ta?? co)+etency +e6e+

an( 8r$('cti6it; 9i++ (ecrea%e

Co))it)ent

D'e t$ 'n8ai( c+aim< re?'%a+ em8+$;ee% a( %tri*e M$re$6er< te %ta?? n$t a88; 9it te

%ce('+e% an( te %a+ar; 8ai( ; tem- Te; 8a; 1000 e'r$ tat i% +$9er tan it i%

c$'nter8art%5 Di%%ati%?acti$n $? 8a;ment ; %ta?? migt +ea( t$ (r$8 co))it)ent +e6e+ It

migt in?+'ence IA!2% re8'tati$n an( ?a++ in ran( image eca'%e %ta??% n$t engage(

In?ra%tr'ct're )?inancia+ 8+anning an( acc$'nting)management $rgani%ati$na+ %tr'ct're

#'man re%$'rce

management

recr'itment )Em8+$;ee

(e6e+$8mentG

8r$m$ti$n

)c$m8en%ati$n

9age%

)%tri*e

In?$rmati$n

tecn$+$g;

)$n+ine

"9eGa88&

)(igita+ ag tag%

)

)*n$9 me a88

) BA APP

)internet %er6ice in

?+igt

Pr$c'rement )%$++ena ?'e+ ) e>8an%i$n $? air8$rt ; BA

INBOUN(

%OGISTICS

O#ERATION

)maintenance

OUTBOUN(

%OGISTICS

MAR,ETING -

SA%ES

SERVICES

)re%er6ati$n

2#)ource: http://!!!.the"uardian.com/business/201#/>un/22/britishair!aysstri?eactionthreatpayclaimba

25 IAG,2015 Annual report

11

http://www.theguardian.com/business/2014/jun/22/british-airways-strike-action-threat-pay-claim-bahttp://www.theguardian.com/business/2014/jun/22/british-airways-strike-action-threat-pay-claim-bahttp://www.theguardian.com/business/2014/jun/22/british-airways-strike-action-threat-pay-claim-bahttp://www.theguardian.com/business/2014/jun/22/british-airways-strike-action-threat-pay-claim-bahttp://www.theguardian.com/business/2014/jun/22/british-airways-strike-action-threat-pay-claim-ba


12/40

)

)?'e+ (i%tri'ti$n

)?$$( e6erage%

)F+igt cre9 %ce('+e

$? aircra?t

)$n)$ar(

%er6ice

)carg$

management

) aggage an(+ing

)?+igt c$nnecti$n

)c$(e %aring 9it

$ter air+ine%

)8remi'm +$'nge

)8r$m$ti$n

)a(6erti%ing

)tra6e+ agent%

)%a+e% canne+

)8$$r re%8$n%e

time

)+$%t aggage

%er6ice%

O+eration Anaysis

e('cti$n $? %ta?? an( %tri*e% are te ma$r 8r$+em ?acing ; 'man re%$'rce% management

in IA!/ Unm$ti6ate( %ta?? 9i++ in?+'ence( $8erati$n an( $'t$'n( +$gi%tic ; (e+a;ing $n)

$ar( %er6ice% an( aggage an(+ing %er6ice% It 9i++ gi6e a( image t$ 8a%%enger a$'t

in('%tr; Since tere i% +e%% 8e$8+e in maintenance $? aircra?t< carg$ management< in?+igt

?$$( an( e6erage (e8artment< te c$m8an; c$'+( n$t ma>imi%e te 8r$('cti6it; Oter tan

tat< it a+%$ re%'+te( in 8$$r c'%t$mer %er6ice Sta?? c$'+( n$t re%8$n( t$ c'%t$mer $n time

('e t$ $6ercr$9(ing c'%t$mer%

IA! i% n$t in ca% c$ntr$+ an( te; ma(e a +$t in6e%tment ; ';ing ne9 air'%e%< 9ic

a% (rain te c$m8an; +i'i( a%%et% Ti% a% %$9n tat te c$m8an; i% n$t 8r$8er+;

an(+ing teir ?inancia+ 8+anning It e??ect in?ra%tr'ct're an( $8erati$n Lac* $? +i'i( a%%et%

a% ca'%e( te c$m8an; t$ g$ tr$'g a %erie% $? 8r$+em

F$r tecn$+$g; an( (e6e+$8ment< IA! a% intr$('ce( (igita+ ag tag an( im8r$6e%e teir

9e%ite% It a% ene?it t$ $8erati$n t$ ec$me m$re e??icient 9it +e%% (irect in6$+6ement $?

%ta?? Be%i(e%< inn$6ati$n in m$i+e a88 %'c a%K *n$9% meK an( BA a88 a6e e+8 tem t$

8r$m$te an( a(6erti%e in e??ecti6e 9a; 9it +e%% c$%t. It a+%$ a((% 6a+'e t$ mar*eting an(

%a+e% ; 8r$6i(ing c$n6enient %er6ice an( reace% teir c'%t$mer in ea%ier 9a;

2 - AAD)I)

2( EIABIA AAD)I)

2$)ource: http://!!!.britishair!ays.com/en"b/information/baonyourmobile

12

http://www.britishairways.com/en-gb/information/ba-on-your-mobilehttp://www.britishairways.com/en-gb/information/ba-on-your-mobilehttp://www.britishairways.com/en-gb/information/ba-on-your-mobile


13/40

F'rterm$re ?$r 8r$c'rement< ; $ining 8artner%i8 9it S$+ena an( ';ing ne9 air'% a%

a(( 6a+'e t$ te $8erati$n an( in?ra%tr'ct're, Ti% a% increa%e( te ?'e+ e??icienc; $?

air'%e% ('e t$ (eci%i$n t$ re('ce car$n an( ma*e a% c$%t %a6ing in('%tr; In 013< BA

*ee8% $n a(6ancing te (e6e+$8ment $? air termina+ t$ ma*e a((iti$na+ ai+it; t$ +e%%en

(e?erra+ em8$9ering #eatr$9 t$ c$nten( a++ te m$re a(e'ate+; again%t te %igni?icant

E'r$8ean centre 8$int%30

Stren$th an! .ea'ness

Stren$th

26 +nancial analysis

'0 Fritish Air!ays , 201',Annual report

1'


14/40

• A8art ?r$m te caracteri%tic 8$%iti$n% in teir $me mar*et%< Briti% Air9a;%=

'a+itie% +ie e%8ecia++; in N$rt America an( Ieria in Latin America J$ining (ea+%

e>erci%e% in eiter (i%trict i% re+ie( '8$n t$ create im8r$6e( '%ine%% %ect$r acce%%

• Briti% Air9a;% remain% te main 8remi'm aircra?t ran( in te U7< a% a ran( 9it

m$re gr$'n(e( c+ient a(mini%trati$n rec$gniti$n an( a n$t$riet; ?$r $??ering m$re

8remi'm c$m8$nent31

• Pr$%8er$'% an( ?$rti?;ing a%%$ciati$n% 9it Unite( Air+ine% a+$ng%i(e te arrangement

$? One9$r+(K carrier t'rn int$ te tir( igge%t $n te mar*et3

• Briti% a6iati$n r$'te% a( %$+i( 6icinit; at L$n($n #eatr$9 9$r+(9i(e air termina+

.ea'ness

• P$$r 9$r*er re+ati$n% i%t$r; tat 9ere c+ear in 6ari$'% cain team %tri*e% an( i%%'e%

tat a6e n$t een manage( 8reci%e+;

• Man; c$m8+ain a$'t aggage an(+ing %er6ice

• Ine??icient ca% c$ntr$+ %t$8% tem ?r$m meeting teir %$rt) term $+igati$n 33

"9$r( c$'nt 0/3&

A##EN(I/

'1 IAG,2015, I48BI4

'2 )ource:http://!!!.britishair!ays.com/en"b/information/partnersandalliances/one!orld

'' EIABIA AAD)I)

1#

http://www.britishairways.com/en-gb/information/partners-and-alliances/oneworldhttp://www.britishairways.com/en-gb/information/partners-and-alliances/oneworldhttp://www.britishairways.com/en-gb/information/partners-and-alliances/oneworldhttp://www.britishairways.com/en-gb/information/partners-and-alliances/oneworld


15/40

15


16/40

A88en(i>

1


17/40

A88en(i> 3 L'?tan%a

Pr$?itai+it; rati$ 011 01 013 01-

A6erag

e

O8erating Pr$?it 3 50/ 351 1,. 3--

OCE 505 .1 5.1 305 55

Li'i(it; rati$ 011 01 013 01- A6erage

C'rrent ati$ 0, 1 0.. 05 0,

In6e%t$r rati$ 011 01 013 01- A6erage

EPS )003 1/ 0/. 01 03

PGE rati$

1(


18/40

References

• tt8:GG999iairgr$'8c$mG8$eni>tm+c-0,-,8ir$+)re8$rt%ann'a+ "IA!<

01-&

• tt8:GG999teg'ar(ianc$mG'%ine%%G01Gn$6G0,Ginternati$na+)air+ine%)gr$'8)att+e)

%ta?? " !9;n T$8am


19/40

012 #ESTE% Anaysis

Econo)ic

Beca'%e $? 9$r+(9i(e ec$n$m; ($9nt'rn< te 9$r+(9i(e e>cange m$(erate ($9n an(

(ecrea%e 15 @ c'%t$mer i% %8en(ing $n tra6e++ing 3- Te ig 6er%ati+it; 8$8'+ar in te

'%ine%% %trengt% BA t$ e (e+icate in e6a+'ating an( %are c$%t $? BA a6e een +e%%ening

'# http://ne!s.bbc.co.u?/2/hi/business/$566$.stml

16

Content #a$e

PESTEL Ana+;%i% 1,)1

P$ter2% 5 F$rce Ana+;%i%

)5

Critica+ S'cce%% Fact$r

/

OT

S9$t Ana+;%i%

.

. P$%%i+e Strateg;

,)30

SFA Te%t 31)33

F'++ De%cri8ti$n $? rec$mmen(e( %trateg; 3-

i%* a%%e%%ment 35

e?erence 3/

A88en(i> 3)3,

http://news.bbc.co.uk/2/hi/business/8566998.stmlhttp://news.bbc.co.uk/2/hi/business/8566998.stml


20/40

F$c'%ing t$ te $i+ %8i*e in 00.< 9en te c$%t came t$ Q1- arre+ an( man; air+ine

in('%trie% ecame an*r'8t35 It +ea(% t$ +e%%en in tic*et re'e%t tat im8+ie% +$9er (ea+ ?$r

BA F'rterm$re< %are$+(er% are in?+'ence( a(6er%e+; ; n$t getting ret'rn% n$t

%'r8ri%ing+;< $n te gr$'n(% tat %8ec'+ati$n ($ne ami( retreat 8r$m8te( mi%?$rt'ne

In term $? ?inancia+ c$m8$nent< te ai+it; $? E'r$8ean '%ine%% %ect$r t$ %'r8a%%e% re'e%t<

c$ming ?r$m te rate 9ar% an( c+a%e% tat +i*en t$ +$9er ;ie+(% ?$r c$mmercia+ enter8ri%e%

A% 8er m$netar; e+ement< te a++iance% can re%'+t t$ a greater c$ntr$+ an( m$6e in term $?

+imit< 9ic ring% a$'t te (ecrea%e $? ri6a+r; an( im8r$6e% inc$me% Te c$(e %aring

carrier '%ine%%e% 9i++ a6e te $88$rt'nit; t$ 8art te c$%t% 9e++ a% entering te '%ine%%

%ect$r% an( gi6e ene?it ;et ti% can 8r$m8t a6ing te +e%% ?+;ing macine at air8+ane

termina+%< ence?$rt +e%% %8ace i% re'ire( It i% %ai( tat in term $? c'rrent m$netar;

circ'm%tance< te '(getar; emergenc; a((iti$na++; im8act% ;ie+( an( inc$me $? BA

#oitica - %e$a

!$6ernment% a6e c$ntr$++e( 9ere air8+ane% can ?+;< an( 8art% $? teir item arranging an(

e%timating a88r$ace% A% $? +ate< %igni?icant a(mini%trati6e cange a% $cc'rre(< gi6ing

air+ine% m$re $8en ($$r an( e>8an(ing te '%ine%% %ect$r ri6a+r; Dereg'+ate( $rganiati$n%

+i*e BA re'ire ?rame9$r*% tat em8$9er c$ice% t$ e ma(e imme(iate+; O8en %*ie% are ac$ntract< 9ic cange% te a(mini%trati6e %cene% ?'n(amenta++;3/

In a((iti$n< +ega+ c$m8$nent in?+'encing Air+ine% i% te ?$rce $? 'ni$n% Uni$n it i% a greate%t

8$9er ?$r em8+$;ee ?$r att+e ac* t$ get teir nece%%itie% in te e6ent tat te; n$t ?'+?i+

9it te a(mini%trati$n Briti% Air+ine% a% %eri$'%+; en('re( n'mer$'% m$(ern acti6itie%

8artic'+ar+; in te 8re6i$'% ;ear% an( *n$9% a$'t te %'gge%ti$n% tat te e>cange 'ni$n%

can ring a$'t Ta*e ?$r in%tance Cain Cre9 %tri*e% !reat 9$r*er re+ati$n% are *e; i?

Briti% Air+ine% nee(% t$ *ee8 a9a; ?r$m m$(ern acti6it; an( inter?ere( 9it $8erati$n%

Ten again BA a% %$me ?a6$'ra+e +a9?'+ i%%'e% +i*e te; can e>cange te air8+ane in te

mi((+e $? EU an( US 'nre%er6e(+;3

'5 http://oilprice.com/3ner"y/4il&rices/hyecessionAl!aysEollo!s4il&rice

Increases.html

' https://!!!."oo"le.com/=9britishHair!aysH201#HannualHreport

20

http://oilprice.com/Energy/Oil-Prices/Why-Recession-Always-Follows-Oil-Price-Increases.htmlhttp://oilprice.com/Energy/Oil-Prices/Why-Recession-Always-Follows-Oil-Price-Increases.htmlhttps://www.google.com/#q=british+airways+2014+annual+reporthttp://oilprice.com/Energy/Oil-Prices/Why-Recession-Always-Follows-Oil-Price-Increases.htmlhttp://oilprice.com/Energy/Oil-Prices/Why-Recession-Always-Follows-Oil-Price-Increases.htmlhttps://www.google.com/#q=british+airways+2014+annual+report


21/40

Air c$ntr$+ an( %ec'rit; a6e %een increment in 9e++eing an( anti)terr$ri%m acti6itie% a% a

c$n%e'ence $? te Se8temer 11 air c$mman(eering in te Unite( State% an( te L$n($n

$ming% $? J'+; 0053. Beca'%e $? a%%a'+t BA cea%e( ?+igt% t$ %8eci?ic nati$n%< ?$r

e>am8+e< te centre ea%t Ti% ma*e tem t$ +$%t a great (ea+ $? ca% in +igt $? te %t$88age

$? ?+igt% t$ certain (e%tinati$n< (ecrea%e in ?+igt re'e%t ?'rterm$re re'ire( ?r$m ?irm%

m$re %a6e% $n %ec'rit; a88r$ace% t$ re)'i+( '8 certaint; $? ';er% It% 8ermit BA t$ %8en(

m$re c$%t an( it% ene?it 9ent ($9n

Technoo$y

e an( ce++ te+e8$ne% are (e6ice% tat tra6e++er% '%e in cec*ing)in 7ee8ing '8 a c$r8$rate

%ite 9ic a((iti$na++; an(+e% c+ient in'irie% an( re%er6ati$n% i% +i*e9i%e t'rning int$

an$ter 8rere'i%ite ?$r air+ine% Mecanica+ a(6ance% tat inten( t$ +e%%en nat'ra+ arm

r$'gt $n 6ia carrier $8erati$n% are e>8an(ing an( (e6e+$8ment% tat 8+an t$ enance

a(mini%trati$n an( tra6e++er e>8erience

On+ine (ea+% are re%8ecte( 8r$?$'n(+; critica+ ; BA an( te; are %etting im8re%%i6e

c$n?i(ence in it% %ite 8re%ence t$ e+8 $n+ine)(ea+% 9ic 9i++ (imini% c+ient m$6ement

tr$'g BA=% ca++ ?$c'%e%3,

E)Tic*et% are c'rrent+; te %tan(ar( tic*et 8$%iti$n 'ti+ie( ; BA< ma*ing ?+igt tic*eting

m$re c+ear< a(a8ta+e an( %ec're BA can a6e $int en(ea6$'r% 9en it% (e%ire inn$6ati$n< in

+igt $? te ?act tat it2% c$%t+; an( 'ic* m$6ing

Environ)ent

A 8$rti$n $? te nat'ra+ i%%'e% tat te air+ine '%ine%% a88earance% are n$i%e< air

c$ntaminati$n< +an( ta*e< 9ater c$ntaminati$n an( 9a%te management F+;ing macine

c$mm$ti$n can 8$%%i+; in?+'ence te 8er%$na+ %ati%?acti$n $? at an; rate a +arge 8$rti$n $? a

mi++i$n in(i6i('a+% +i6ing near U7 air termina+%

'( https://employeerelations.!ordpress.com/employeerelationsatbritish

air!ays/

'$ http://!!!.the"uardian.com/!orld/2006/dec/2(/historyu?usairlineterrorism

'6 http://!!!.britishair!ays.com/en"b/information/chec?in"in

21

https://employeerelations.wordpress.com/employee-relations-at-british-airways/https://employeerelations.wordpress.com/employee-relations-at-british-airways/http://www.theguardian.com/world/2009/dec/27/history-uk-us-airline-terrorismhttp://www.britishairways.com/en-gb/information/checking-inhttps://employeerelations.wordpress.com/employee-relations-at-british-airways/https://employeerelations.wordpress.com/employee-relations-at-british-airways/http://www.theguardian.com/world/2009/dec/27/history-uk-us-airline-terrorismhttp://www.britishairways.com/en-gb/information/checking-in


22/40

Te 9$r+(9i(e en6ir$nment t'rn% $'t t$ e m$re a9are $? 'i+(ing a %'8eri$r ?'t're an(

en6ir$nment ?$r te 8'r8$%e $? te genera+ 8$8'+ati$n In ti% manner< Briti% a6iati$n r$'te%

are ($ing ting% t$ en%'re tat c'tting e(ge 9i++ a6e c+eaner an( greener en6ir$nment In

%'c manner< te $rganiati$n a((iti$na++; %tic*% t$ teir c$r8$rate %$cia+ $+igati$n ;

c$n%i(ering ?$'n(ati$n% an( $cca%i$n% ?$r te a(6antage% $? en6ir$nment-0 Te

a(mini%trati$n a((iti$na++; $in% ec$+$gica+ %ec'rit; att+e ; %'88$rting $cca%i$n% an(

(i??erent (e6e+$8ment%

BA t'rn% int$ te 8rinci8a+ aircra?t t$ 9in g$6ernment en($r%ement ?$r it% car$n a+ance

8+an in Marc 00, Tra6e++er% are getting t$ e increment min(?'+ a$'t teir car$n ?$$t

%a8e( im8re%%i$n< in ti% manner ; BA inc+'(ing ti% 9i+?'+ car$n a+ance 8+an-1

In(i6i('a+% can 8$%iti6e+; a??ect gr$'8% a% 9e a% a('%ting te emi%%i$n ?r$m teir ?+igt

F'rter< an$ter *e; i%%'e ?$r te Briti% Air9a;% t$ a((re%% i% n$i%e c$ntaminati$n T$

%$rten te i%%'e< te $rganiati$n create( in ca+mer aer$8+ane an( a('%t% te 9a; $? teir

?+igt% t$ (imini% te %tan(ar( c$mm$ti$n 8er ?+igt ; 15@ in 015 - Pe$8+e +i6ing c+$%e t$

#eatr$9 air8+ane termina+ are te m$%t in?+'ence( ; te %$'n(< $9e6er te $rganiati$n

(ecrea%e( r$'g+; 30@ $? te c$mm$ti$n c$nnecting 00. an( 00,

Socia

Aging 8$8'+ati$n i% $cc'rring in te U7< it im8+ie% tere are m$re e+(er+; 8e$8+e< 9ic te;

a6e m$re recreati$n time t$ g$ tra6e+-3 Ti% i% a 8$tentia+ cance t$ BA 9it te m$re

e+(er+; 8e$8+e reg'+ar+; e>ten(ing< Briti% Air9a;% can ta*e enc$'raging 8$int% in te 9a;

#0 https://responsible@yin".ba.com/environment/

#1 http://!!!.business"reen.com/b"/ne!s/2##('##/britishair!ayso!nersets

emissionstar"etandcallsfor"lobalaviationclimatedeal

#2 https://responsible@yin".ba.com/environment/noiseandair=uality/

#' http://!!!.?in"sfund.or".u?/timetothin?dierently/trends/demo"raphy/a"ein"population

22

https://responsibleflying.ba.com/environment/http://www.businessgreen.com/bg/news/2447344/british-airways-owner-sets-emissions-target-and-calls-for-global-aviation-climate-dealhttp://www.businessgreen.com/bg/news/2447344/british-airways-owner-sets-emissions-target-and-calls-for-global-aviation-climate-dealhttps://responsibleflying.ba.com/environment/noise-and-air-quality/http://www.kingsfund.org.uk/time-to-think-differently/trends/demography/ageing-populationhttp://www.kingsfund.org.uk/time-to-think-differently/trends/demography/ageing-populationhttps://responsibleflying.ba.com/environment/http://www.businessgreen.com/bg/news/2447344/british-airways-owner-sets-emissions-target-and-calls-for-global-aviation-climate-dealhttp://www.businessgreen.com/bg/news/2447344/british-airways-owner-sets-emissions-target-and-calls-for-global-aviation-climate-dealhttps://responsibleflying.ba.com/environment/noise-and-air-quality/http://www.kingsfund.org.uk/time-to-think-differently/trends/demography/ageing-populationhttp://www.kingsfund.org.uk/time-to-think-differently/trends/demography/ageing-population


23/40

tat te m$re %ea%$ne( era in6$+6e ?$r te m$%t 8art re%igne( 8e$8+e 9$ are a++ te m$re

rea(; t$ ma*e tra6e+ arrangement% an( +$ng get)a 9a;%

Te U7 a% a mat'ring 8$8'+ace< 9ic i% 'n?$rt'nate In te meantime< te 9$r+(9i(e

m$netar; emergenc; a% +i*e9i%e 8r$m8t a%ic +e6e+% $? 'nem8+$;ment tat a% ne6er een

?$'n( in te Unite( 7ing($m ?$r 'ite a +$ng time -- BA $'gt t$ ga'ge te (e6e+$8ing

'nem8+$;ment %ince 'nem8+$;ment in?+'ence% te air8+ane '%ine%% a c$n%i(era+e mea%'re

Te e>8an%i$n in 8re8aring an( a(6ancement ?$r %ta?? ; BA 9i++ 8r$m8t (e%ignate m$re

%ta?? 9it e>8ert %*i++ Ti% 9i++ $??er Unite( 7ing($m g$6ernment ; (ecrea%ing

'nem8+$;ment %$me a%%i%tance 9it rating an( *e; acc$m8+i%ment ?$r BA t$ attract m$re

c+ient% ; etter %er6ice

312 #orter4s 5ive 5orces Anaysis

Bar$ainin$ +ower of

s"++iers

Hi$h bar$ainin$ +ower of oi co)+anies

Te c$%t $? ?+;ing ?'e+ i% %'ecte( t$ te 6aci++ati$n% in te

9$r+(9i(e '%ine%% %ect$r ?$r $i+< 9ic can %8in ?ierce+; a% a

re%'+t $? ge$8$+itica+ an( (i??erent c$m8$nent%-5 Since BA are

%'ecte( t$ te %ame 6ariance in $i+ c$%t% a% c'%t$mar; ';er%

Tere i% n$t a great (ea+ $? c$ntr$+ $6er te c$%t% Ti% im8+ie%

%'88+ier a% a great (ea+ $? agg+ing ?$rce it$'t aer$na'tic%

?'e+< Briti% Air+ine% 9$n=t ma*e a ene?it Tr$'g ';ingm$re c'rrent< m$re ?'e+)8r$('cti6e aircra?t< BA can (imini%

te 'ti+iati$n $? ?'e+ $n teir ?+igt at a neg+igi+e +e6e+

Ony a few s"++iers s"ch as boein$ an! airb"s

Te air+ine '%ine%% nee(% aircra?t eiter $n an a+t$geter (ea+ $r

$n 9et +ea%e 8remi%e tat im8+ie% tat te aircra?t% nee( t$ re+;

## http://!!!.bbc.com/ne!s/business'5'56$6

#5 http://mar?etrealist.com/201#/12/impacttraveltourismindustryeconomy/

2'

http://www.bbc.com/news/business-35359689http://marketrealist.com/2014/12/impact-travel-tourism-industry-economy/http://www.bbc.com/news/business-35359689http://marketrealist.com/2014/12/impact-travel-tourism-industry-economy/


24/40

$n '8$n te t9$ iggie%< Air'%< an( B$eing ?$r teir ?+;ing

macine nee(%-/ It im8+ie% tat ti% in('%tr; i% e>cee(ing+;

t$'gt Ti% gi6e% te aircra?t a ?ai+'re t$ arrange 9it 8+ane

ma*er a(e'ate+;< ma*ing BA a% 6a+'e ta*er%

A!vance! technoo$y

In a((iti$n< Air'% i% 'ti+iing a(6ance inn$6ati$n a% a 8art $?

8+anning aircra?t< acc$r(ing+;< te ?$rce $? %'88+ier i% ig

eca'%e $? BA m'%t re+; $n '8$n te Air'% %8ecia+i%t% t$ ($

%'88$rt $? te ?+;ing macine an( +$$* ?$r g'i(ance

Threat of new entrant #ro!"ct !ifferentiation

Item c$ntra%t matter%< ?$r ne9 8artici8ant% it i% ar( t$ %'r8a%%

Tra6e++er% migt a6e a m$(erate+; ig inc+inati$n $n BA

ran( a%e $n %ec'rit; an( acc$mm$(ati$n c$ncern%- A c'rrent

6a%t $rganiati$n 9it a (ecent %tat'% i% c$n%tant+; (e8en(a+e

it a% m$re ?+igt% 9it te a(a8ta+e time ca+en(ar< an(< in ti%

9a;< i% m$re a++'ring t$ %$88er% c$ntra%t 9it a ri%ing

$rganiati$n

Start6"+ Cost is hi$h

Ti% i% g$ a$'t a% a $'n(ar; t$ %ecti$n ?$r te ri6a+ a% tere

are ig in ca8ita+ 8rere'i%ite< ?$r e>am8+e< %et '8 $? centra+

%tati$n< 8r$c'rement $r iring air8+ane< an( training ?$r %ta?? A%

BA< eing in te '%ine%% %ect$r t$$ +$ng it i% ?a6$'ra+e

8$%iti$n t$ tem-.

E7cess Ca+acity

Tere i% a'n(ance +imit in te aircra?t '%ine%% Tat i% c$n?irm ; te 9a; tat BA re8re%entati6e% can (i%c$6er c+ear %eat% 9it

a %8eci?ic en( g$a+ t$ ?+; ?ree "an a(6antage ga6e t$ aircra?t

# http://!!!.reuters.com/article/usboein"suppliersid)B0;J2G

#( http://!!!.u?essays.com/essays/mana"ement/mar?etstrate"yofbritish

air!aysandryanairmar?etin"essay.php

#$ http://!!!.tele"raph.co.u?/+nance/ne!sbysector/transport/10#5#522/o!costairlineshavecomealon"!ay.Fut!ho!ill!inthebattle.html

2#

http://www.reuters.com/article/us-boeing-suppliers-idUSKCN0VQ2KGhttp://www.ukessays.com/essays/management/market-strategy-of-british-airways-and-ryanair-marketing-essay.phphttp://www.ukessays.com/essays/management/market-strategy-of-british-airways-and-ryanair-marketing-essay.phphttp://www.telegraph.co.uk/finance/newsbysector/transport/10454522/Low-cost-airlines-have-come-a-long-way.-But-who-will-win-the-battle.htmlhttp://www.telegraph.co.uk/finance/newsbysector/transport/10454522/Low-cost-airlines-have-come-a-long-way.-But-who-will-win-the-battle.htmlhttp://www.reuters.com/article/us-boeing-suppliers-idUSKCN0VQ2KGhttp://www.ukessays.com/essays/management/market-strategy-of-british-airways-and-ryanair-marketing-essay.phphttp://www.ukessays.com/essays/management/market-strategy-of-british-airways-and-ryanair-marketing-essay.phphttp://www.telegraph.co.uk/finance/newsbysector/transport/10454522/Low-cost-airlines-have-come-a-long-way.-But-who-will-win-the-battle.htmlhttp://www.telegraph.co.uk/finance/newsbysector/transport/10454522/Low-cost-airlines-have-come-a-long-way.-But-who-will-win-the-battle.html


25/40

9$r*er%& Ti% (em$n%trate% tere i% te ting tat i% ; a++

acc$'nt% a((iti$na+ r$$m $n 8ractica++; e6er; ?+igt Te%e

(em$n%trate tat BA c$'+( 9it$'t m'c $? a %tretc 'i+( te

'antit; $? tra6e++er% te; $$* $n e6er; ?+igt *ee8ing in min(

te en( g$a+ t$ *ee8 ne9 entrant% ?r$m getting t$ e %et '8

Bar$ainin$ +ower of

c"sto)er

Bar$ainin$ +ower of c"sto)er

Te aircra?t '%ine%% i% e>ce8ti$na++; 6a+'e t$'c; an(

n'mer$'% c+ient% are e>cite( t$ (i%c$6er tic*et% 9it te m$%t

minima+ c$%t ?$r teir a(6ent're P'rca%er%= energ; a%

e>8an(e( %+igt+; eca'%e $? R9e $$*ing +$ca+e% tat 8ermit

';er% t$ t$r$'g+; ana+;%e tic*et% a% in(icate( ; 6a+'e< ?+igt

time% an( 6ari$'% %t$8% in tran%it an( tra6e+ %8ecia+i%t% 9$ e+8

c+ient% in ?in(ing te e%t arrangementR In +igt $? 8'rca%er%

a6ing te ca8acit; t$ cange %tarting 9it $ne aircra?t ten

$nt$ te ne>t ea%i+;< te; are 8'tting ?$rt ?ait?'+ne%% 8+an%< ?$r

e>am8+e< BA=% e>ec'ti6e C+' t$ teir ';er%-,

%ow switchin$ costs1

Te argaining 8$9er $? 8'rca%er% i% %$+i( 9en te

e>canging e>8en%e $? aircra?t% i% +$9 Ti% i% $n te gr$'n(%

tat in te '%ine%% %ect$r tere are $ter% ri6a+% 9ic te c$%t

$??ere( c$ntra%t i% 6er; +itt+e t'% te c+ient 9i++ 8ic* te carrier%

9ic are ea%e an( e%t timeta+e %'ite( ?$r tem BA gi6e

c$n6enient n e%t %ce('+e ?$r c'%t$mer% t$ $6erc$me ti%

8r$+em

Threat of s"bstit"te

+ro!"ct

Te (anger i% ig eca'%e $? te ?inancia+ circ'm%tance a%

c+ient% are e>treme+; 6a+'e (e+icate C+ient% are canging t$

circ'it$'% %'%tit'te%< ?$r e>am8+e< train< a't$m$i+e an(

%i88ing ('e t$ te terr$ri%t attac*50 Te $rganiati$n c$n?r$nt%

%$+i( ri6a+r; ?r$m te +$9 c$%t carrier "LCC&< 9ic $??er %$+i(

(i%c$'nt S8eci?ica++;< ;anair ?$r in%tance< an( it% (e6e+$8ing

#6 http://!!!.britishair!ays.com/en"b/e*ecutiveclub

25

http://www.britishairways.com/en-gb/executive-clubhttp://www.britishairways.com/en-gb/executive-club


26/40

8iece $? te $6era++ in('%tr; migt (ri6e Briti% Air+ine% $'t $?

te %$rt)a'+ recreati$n mar*et Te acce%%ii+it; $? %'%tit'te

ma*e% te intere%t ?$r a6iati$n r$'te% %it'ate m$re 6er%ati+e

it 8r$cee(e( enancement in 6i(e$)c$n?erencing inn$6ati$n<

$rganiati$n% migt a6e te ca8acit; t$ c$n%i(er +e%% g$ t$ e

6ita+ t$ teir $9n 8artic'+ar $8erati$n%< (ecrea%ing c$r8$rate

%8en(ing $n '%ine%% carrier% Ti% i% e%8ecia++; aar($'% $n

te gr$'n(% tat $n n'mer$'% ?+igt%< '%ine%% c+a%% m$netari+;

%'88$rt% c$ac c+a%% ; 8a;ing iger 8a%%age% ?$r an

a(mini%trati$n tat ($e% n$t c$%t te carrier a+t$geter m$re t$

c$n6e; BA 9i++ c$n?r$nt mi%?$rt'ne% in '%ine%% c+a%% 9ic

+ea( (r$8 in (ea+% an( re'e%t

Co)+etitive rivary Te aircra?t '%ine%% in te E'r$8e i% t$ a great (egree $?

c$m8etiti$n $n acc$'nt $? 6ari$'% rea%$n%< 9ic inc$r8$rate

%ecti$n $? minima+ e??$rt earer%< te tigt reg'+ati$n $? te

'%ine%% BA i% managing $t ($me%tic an( g+$a+ aircra?t%

a(mini%trati$n% In te 9$r+(9i(e carrier te; a6e +$a(% $?

%e8arati$n in te mi((+e $? BA an( teir ri6a+% In 8arce+ $?

%e8arati$n% %$me are %imi+ar t$ c$%t% an( $??ere(

a(mini%trati$n% Ten again< in +$ca+ $r %$rt)a'+

a(mini%trati$n% '%ine%% %ect$r i% %$ (i6i(e( 9it ea8% $?

re%i(entia+ aircra?t% n$9a(a;% Fina++; it i% caracterie( tat te

$n ; c$nten(er% e>8an(e( ri6a+r; at ig rate Be%i(e%< BA

gi6e% 8'rca%er %tea(?a%tne%% t$ (imini%e( ri6a+r; an( acce%% t$

e>tra c$'r%e% 9it +e%% ca8ita+ c$%t

In te aircra?t '%ine%% te $6er%'88+; $? ?+igt%< ma*e% it

(i??ic'+t t$ c$nten( 9it te c$m8etit$r% A+$ng te%e +ine%<

eca'%e $? te $6er%'88+;< $rganiati$n% g$ ?$r en$rm$'% 6a+'e

50 https://!!!.>ustlanded.com/en"lish/nitedin"dom/Articles/raveleisure/&ublicransport

2


27/40

%+ice% %$ a% t$ ta*e care $? teir e>8en%e% ; te 'ge 6$+'me $?

$??er% Het< te tra(e)$?? ?$r carrier i% te $6erca8acit; tat

(e8en(a+; nee(% t$ manage ; a6$i(ing ?r$m a88ening

Since< i? $6er +imit a88en% $rganiati$n% migt en('re t$ ma*e

ac* te initia+ in6e%tment< an( i% n$rma++; te ca%e ?$r te

aircra?t '%ine%% Eng+i% Air9a;% i% c$ntin'a++; a+tering it%

6a+'e %c$8e $? ?+igt%< tr;ing t$ $6erc$me $6erca8acit; i%%'e%

tat a6e a% $? n$9 een (em$n%trate( a $'n(ar; ?$r earning

ac* te $rigina+ in6e%tment ?$r te $rganiati$n

Be%i(e%< BA 8r$6i(ing c$n%'mer +$;a+t; 9ic re('ce

c$m8etiti$n an( acce%% t$ a((iti$na+ r$'te% 9it +e%% ca8ita+

$'t+a;

812 Critica s"ccess factor

Bein$ ea!in$ in %on!on

L$n($n i% Briti% a6iati$n r$'te% $me cit;< an( it i% te 9$r+(2% greate%t an( m$%t ?$c'%e(

g+$a+ air mar*et !'aranteeing #eatr$9 %ta;% e>ce++ent centre 8$int i% in(i%8en%a+e t$

gi6e tem a %$+i( L$n($n a%e t$ %er6e te igge%t 'ni6er%a+ 9$+e (ea+ mar*et% Ta*ing a

gan(er at im8act g$6ernment a88r$ac c$ice% an( 9$r* 9it te air termina+ 8r$8riet$r% $n

te 8r$cee(e( 9it im8r$6ement $? te ?$'n(ati$n 9i++ +ea( BA t$ 8r$cee( in (ri6ing

8$%iti$n

E7+ansion in asia +acific

BA 8$int i% t$ gi6e te e%t 9$r+(9i(e a6ai+ai+it; t$ c+ient% It i% a 9in c$m8$nent ?$r tem

t$ create $88$rt'nitie% ?$r ne9 c$'r%e% Briti% a6iati$n r$'te% c$n%tr'ct teir 6icinit; at te

t$8)+e6e+ 9$r+(9i(e 'ran area%< eiter %8eci?ica++; $r tr$'g teir gr$9ing %;%tem $?

carrier $rganiati$n% i+%t te %et '8 9$r+(9i(e 'ran c$mm'nitie%< ?$r e>am8+e< L$n($n

an( Ne9 H$r* %ta; a%ic< BA 8't% a 'ni'e accent'ati$n $n a((ing t$ te 8$%iti$n in te

9$r+(9i(e 'ran c$mm'nitie% in ?'t're

2(


28/40

(eiver $oo! &"aity service for c"sto)ers

Air+ine %ta?? are ?acing c'%t$mer% a6e een +$ng 8a%%i$nate $n 8r$6i(ing g$$( c'%t$mer

%er6ice Briti% Air9a;% gi6e% training t$ %ta??% t$ (e6e+$8 teir %*i++% an( re9ar(BA t$

%ta??% %$ tat a++ te %ta??% 9i++ e m$ti6ate( t$ gi6e% te e%t %er6ice% t$ c'%t$mer% $n a++

r$'te% a% te c'%t$mer c$'+( en$; a 8remi'm e>8erience BA 9it a g$$( c'%t$mer %er6ice

9i++ ten( t$ e in %tai+i%e( 8$%iti$n< 9ic e+8% t$ c$m8ete 9it it% c$m8etit$r in c'%t$mer

%er6ice 9i%e

9212 O++ort"nity

• E>8an%i$n int$ emerging mar*et %'c a% Cina an( In(ia

• C$mmercia+ a%%$ciati$n $88$rt'nitie% ) Briti% Air9a;% i3/0 i% $ne $? te U7=% m$%t

energiing ne9 %8$n%$r%i8 $88$rt'nitie% $??ering immen%e ran( g$ a?ter 8+anne(

acc$m8+ice%

• #eatr$9 i% BA $8erati$na+ $me an( 8ercei6e( a% $ne $? te 9$r+(=% '%ie%t air

termina+

• Te att+e in te 9$r+(9i(e ec$n$m; an( ig ri6a+r; in te '%ine%% a% 8r$m8te( a

8$rti$n $? te aircra?t %'tting teir '%ine%% tat e>8an(% te '%ine%% %ect$r intere%t

?$r te BA

• Briti% Air9a;% a%cen( in te S*;tra> 'a+it; ?rame9$r* i% an e%%entia+ a(6erti%ing

range tat te $rganiati$n can '%e t$ rag 'ni6er%a+ 8ict're

• A(6ance( tecn$+$g; aircra?t

Threat

• Une>8ecte( $cca%i$n)Te aircra?t '%ine%% %ta;% 8$9er+e%% again%t eccentric $'ter

e+ement%< ?$r e>am8+e< 8$+itica+ 8recari$'%ne%% an( terr$ri%t a%%a'+t%

2$


29/40

• Te a%cent in ?'e+ c$%t ?'e+ c$%t increment% 9$'+( %8ea* t$ a 'ge (anger t$ BA<

e%8ecia++; in te e>cee(ing+; c$%t ?$c'%e( %tate% $? it% centre mar*et%

• O8en %*ie% a%%erti$n ; c$n%enting t$ te arrangement< te +itt+e carrier in('%tr; a%

e>8+$ite( te ea%e air a(mini%trati$n 9ere te; 8$%t'ring ri%* in ri6a+r; 9it BA

• F+$8 in c'rrenc; ?+'ct'ati$n% ('ring rece%%i$n in 00.

• #ig inten%i6e c$m8etiti$n am$ng c$m8etit$r

9912 Swot anaysis

it te ran( 8ict're tat Briti% Air9a;% can rag $? an( te S*;tra> Star

arrangement $? 6a+'e rating tat can $??er en$rm$'% ac*n$9+e(gment in te

Internati$na+ +e6e+ it 9$'+( e 8er?ect ?$r Briti% Air9a;% t$ en(ea6$'r ?$r '%ine%%

%ect$r (i6i%i$n centre 51 Uti+iing te %$+i( 8ict're an( ri++iant n$t$riet; $??icia++;

%ett+e( t$ 6ent're int$ (e6e+$8ing mar*et< ?$r e>am8+e< Cina< In($ne%ia< Ma+a;%ia<

an( In(ia Li*e9i%e< $8en %*ie% a%%erti$n 9i++ '8gra(e te %t$88age in '%ine%% %ect$r

(e6e+$8ment< $9e6er< Briti% Air9a;% can 'ti+ie it% %$+i( image 8ict're in an $??er

t$ catc mar*et %are5 De?eating te c$ncentrate( '%ine%% t$ mi%'%e te +ate $ne

9$r+( $rganiati$n t$geter c$n%ent t$ target ne9 c+ient% 9$ 9i++ +$cate te ne9

c$'r%e a++'ring In a((iti$n< BA 9i++ 'ti+ie te ran( 8ict're $? eing a %e+tere(

aircra?t t$ e>8an( e??$rt% t$ e%ta+i% %a?et; tr$'g '%ine%% %ect$r entrance t$

antici8ate terr$ri%t2% ri%* M$re$6er< Briti% a6iati$n r$'te% 9i++ (imini% te 'antit;

$? ?+igt cance+ati$n% ; ma*ing ne9 mecanica+ a(6ance% tr$'g item im8r$6ement

8ermit te 8+ane% t$ ?+; in e6er; %ing+e c+imate c$n(iti$n BA trie% t$ acc$m8+i%

9$r+(9i(e e>ten%i$n tr$'g '%ine%% %ect$r im8r$6ement t$ ne9 A%ian (e%tinati$n

%ince it i% $n $ne $? te 9$r+(=% ?a%ter% (e6e+$8ing carrier At +a%t< 9it m$%t

c$nten(er% %ti++ n$t acie6ing te caracteri%tic $? a6ing te ca8acit; t$ gi6e %$+i(

51 http://!!!.airline=uality.com/ratin"s/britishair!aysstarratin"/

52 http://centreforaviation.com/analysis/britishair!aysindiaroutesaircraft"au"eschan"edpartnersconsideredasthirdpartyhubsloom201$5#

26

http://www.airlinequality.com/ratings/british-airways-star-rating/http://centreforaviation.com/analysis/british-airways-india-routes-aircraft-gauges-changed--partners-considered-as-third-party-hubs-loom-201854http://centreforaviation.com/analysis/british-airways-india-routes-aircraft-gauges-changed--partners-considered-as-third-party-hubs-loom-201854http://www.airlinequality.com/ratings/british-airways-star-rating/http://centreforaviation.com/analysis/british-airways-india-routes-aircraft-gauges-changed--partners-considered-as-third-party-hubs-loom-201854http://centreforaviation.com/analysis/british-airways-india-routes-aircraft-gauges-changed--partners-considered-as-third-party-hubs-loom-201854


30/40

a(mini%trati$n< it i% critica+ tat Briti% Air9a;% can c$n6e; '8gra(e% t$ it% c$rre+ati6e

a(mini%trati$n% tat 9i++ a6e te ca8acit; t$ caracterie te carrier%

9:12 3 #OSSIB%E STRATEG;

British airways

#ro!"ct !eveo+)entBA i% e>8an(ing int$ A%ia c$'ntr; %'c a% In(ia an( Cina Ti% e+8% tem ;

attracting ne9 an( e>i%ting c'%t$mer Be%i(e%< it 8r$6i(e m$re c$ice% t$ tra6e+ in

A%ia Paci?icTota &"aity )ana$e)ent

BA aim $n 8racti%ing TM Being a 8art $? te 8remi'm air+ine% BA in6e%t% in teir

%ta??< ?+eet an( $ter ?aci+itie% in $r(er t$ 8r$6i(e 'a+it; c'%t$mer %er6ice t$ (ra9

c'%t$mer(ifferentiation

T$ (i??erentiate ?r$m $ter c$m8etiti$n BA im8r$6e it c'%t$mer %er6ice c$m8+aint

+i*e an(+ing aggage an( 8r$6i(e 8r$m$ti$n 8ac*age It +ea( t$ re('ce in c'%t$mer

c$m8+ain an( $$%t %a+e%(iversification

BA ($e% 8r$m$ti$n m$re 8r$m$ti$n t$ increa%e 8remi'm %a+e an( a+%$ '8gra(e it%

$n+ine %er6ice an( intr$('ce e)c$mmerce It2% ma*e teir c'%t$mer% +i?e ea%ier a6$i(

'e'ingInternationa Airines Gro"+

Cost ea!ershi+

IA! ($ing ($9n%iing %$ te; a6e t$ 8a; m$re c$m8en%ati$n an( it migt e

(i??ic'+t in %$rt) term eca'%e te; 9i++ ?ace +i'i(ati$n an( 'ni$n 8r$+em

#$9e6er< ?$r +$ng)term it 9i++ etter (eci%i$n t$ %a6e ca% ; re('cing training an(

(e6e+$8ment an( +e%% 8a;ing %a+ar; am$'nt

(iversity

'0


31/40

Te a88$intment $? Maria Fernan(a Meia a% n$n) e>ec'ti6e (irect$r re8re%ent% te

%igni?icant %te8 in im8r$6ing gen(er (i6er%it; E>i%tence $? ti% *in( $? (i6er%it; $n

te $ar( a+9a;% a+igne(5oc"s on V"ein$

4'e+ing *n$9 a% %tart 8r$('ct 9it ig $8erating 8r$?it In %$rt) a'+ tem ?acing

'ite a +$t c$m8etiti$n B; intr$('ce ne9 $??)8ea* +ei%'re (e%tinati$n re8+acing

9ea*er '%ine%% r$'te% 9ere ti% im8r$6e 8r$?itai+it;(o nothin$

IA! a+rea(; a( ($ne a +$t $? in6e%tment an( 8r$m$ti$n acti6it; t$ attract m$re

c'%t$mer% It 9i++ $$%t teir 8r$?itai+it; an( $6erc$me teir +i'i(ati$n 8r$+em

9*12 S5A TEST

ec$mmen(ati$n Fea%ii+it; S'itai+it; Acce8tai+it;

Partner%i8% int$

A%iaGCinaGIn(ia

mar*et a% te%e are

emerging mar*et%

A% an e>8an%i$n an(

in6e%tment

c$n%i(erati$n

Increa%e in re6en'e

9i++ increa%e 8r$?it%

O88$rt'nitie% are

8+ent; a% it i% an

emerging mar*et

C'%t$mer are a88;

eca'%e $? c$ice ?$r

tra6e++ing are ig

Sare$+(er %ati%?;

9it ne9

$88$rt'nitie% an( te;

9i++ get m$re(i6i(en(

'1


32/40

# training<

(e6e+$8ment an(

c$ntin'$'% Learning

?$r te %ta??

Train ?+igt atten(ant%

t$ 8r$6i(e e>tra

%er6ice%

ecr'it ne9 %ta?? t$

manage ne9 %er6ice%

A+e t$ retain c+ient%

an( enance

re8'tati$n

Im8r$6e c'%t$mer

%ati%?acti$n

Sta?? are 9e++) traine(

ec$me 8r$?e%%i$na+

in teir %*i++ an( te;

a6e m$re c$n?i(ent

$n management

F$c'% $n 6'e+ing S$rt a'+ ?+igt% t$

e $'t%$'rce( t$

%'%i(iar; air+ine%

Deman( ?$r %$rt)

a'+ ?+igt% 9ic 9i++

e m$re ?re'ent 9i++

increa%e c$%t $?

$8erati$n%

Treat% $? ig

c$m8etiti$n

D'e t$ terr$ri%t attac*

c'%t$mer %care( t$

'%e 8+ane% %$ teir g$

?$r

A+ternati6e% ?$r %$rt

a'+ ?+igt% %'c a%

r$a(< rai+ an( 9ater

tran%8$rtati$n

C$ntin'$'%

inn$6ati$n

$? $n+ine $$*ing<

$n+ine cec* in< tra6e+

in%'rance< car renta+<

$$*ing $? $te+

#a%%e+ ?ree< tr'%te(

an( re+ia+e

Pre?erre( c$ice ;

c'%t$mer%

One %t$8 center ?$r

8a%%enger%

A(6ance( tecn$+$g;

re('ce em8+$;ee%

9$r*+$a( 9ic +ea(

t$ ($9n%iing

Im8r$6e( O8erati$n%

;

re('cing (e+a;% in

?+igt%< 8r$8er

maintenance $?

aircra?t%< e??icient

an(+ing $? aggage

Better 'a+it; c$ntr$+

$? $8erati$n%

De8en(a+e ?$r te

%er6ice% (e+i6ere(

etain c'%t$mer%

Sare$+(er ma; e

n$t ?ee+ g$$( i(ea t$

%8en( m$re m$ne; $n

maintenance

'2


33/40

T$ta+ 'a+it;

management "TM&

!en(er (i6er%it; $n

$ar(

D$ n$ting

e('ce in c'%t$mer

c$m8+ain an(

increa%e %a+e%

e%earc an(

(e6e+$8ment ?ai+ ('e

t$ in%'??icient

man8$9er

Nee( recr'it m$re

9$r*?$rce

S8en( m$re $n

re%earc an(

(e6e+$8ment

A6ai+a+e $? %eat

increa%e

O8erating an( %a+e%

increa%e

F$c'% $n %$rt)a'+

ri%e

Better 'a+it; 9i++

e+8 t$ 8r$6i(e g$$(

ran( 8r$('ct ?$r

c'%t$mer

Te c$mmittee

e+ie6e% tat te

c$minati$n $?

(i??erent ac*gr$'n(<

8er%$na+itie% an( %*i++

enric $ar(

8er?$rmance

atar air9a;% n$t

$n+; $ne9$r+(

a++iance 8artner 't

a+%$ a %igni?icant

%are$+(er in IA!

A((ing a ne9 air+ine

ran( t$ te '%ine%%<

name+; air Ling'%

C'%t$mer a+9a;% g$

?$r g$$( 'a+it;

%er6ice

Training ?$r em8+$;ee

t$ (e+i6er 'ni'e

%er6ice ?$r c'%t$mer

Training an(

(e6e+$8ment ?$r

recr'it %ta??

Sare$+(er ma; ?ee+

'nnece%%ar; e>8en%e%

Sare$+(er get m$re

(i6i(en(

C$(e %aring

agreement e+8 t$

reac m$re 8artner

an( (e6e+$8 m$re

$int 6ent're '%ine%%

''


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98$rting teir mercan(i%e an( a(mini%trati$n% te; are gi6ing te Briti% ec$n$m; a

%'88$rt Te %igni?icance $? te gr$9ing in A%ia '%ine%% %ect$r i% tat BA can=t '%t (e8en(

$n c+ient% in it% $9n nati$n a((iti$na++; t$ (ra9 in ne9 c+ient% $6er te 9$r+( M'c a++ te

m$re 6ita++;< Briti% Air9a;%< tr$'g ti% can gr$9 m$re c$nnecti$n%< an( ?in( m$re a$'t

6ari$'% %$cietie%< (ia+ect%< mar*et%< an( item% Te (e6e+$8ment i% e%%entia+ t$ tem %ince it

can 'rge BA t$ 9$r* an( a(6ance in a %eri$'%+; ?$c'%e( 9$r+(9i(e ec$n$m; BA

arrangement% t$ (i%8atc a(mini%trati$n% t$ m$re A%ian 'ran area% a% te 8remi'm earer

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8'r%'e% (e6e+$8ment in $ne $? te 9$r+(=% 'ic*e%t (e6e+$8ing a6i$nic% mar*et%< ma(e

c$ncei6a+e 9it te entr; $? ne9 9$+e (ea+ ?+;ing macine t$ it% arma(a

Ba%e( $n mar*et 8re(icti$n%< 9inning %trateg; ?$r IA! 9$'+( e VTe D$ N$ting2 %trateg;

!i6en tat te air+ine a% a+rea(; ma(e %e6era+ in6e%tment% an( it a% a %tr$ng mar*eting

cam8aign< n$ 8re(icta+e %$rt)term $'tc$me can e ?$re%een n$9 In%tea( $? %8en(ing

?'rter $n $ter initiati6e% tat ma; n$t ring imme(iate re%'+t%< %$ te management t$

re%er6e it% ?'n(% an( re%$'rce%< m$nit$r it% 8r$gre%% in te interim an( acti$n 9en tere are

?'rter (e6e+$8ment% IA! ma(e man; 8r$m$ti$n 8ac*age% t$ teir +$;a+ c'%t$mer A+rea(;

9e++)*n$9n ran( %$ re('ce% %8en(ing m$re a(6erti%e e+8 t$ c't c$%t m$re t$ tem Te

m$ne; gaining ?r$m c't c$%t 8r$ce%% e+8 t$ 8a; teir (et can gi6e m$re training ?$r %ta?? t$

$6erc$me c'%t$mer %er6ice 8r$+em T$ $6erc$me en6ir$nmenta+ i%%'e IA! ac'ire 'ite a

+$t a(6ance( tecn$+$g; aircra?t t$ re('ce n$i%e 8$++'ti$n an( te; 8r$6i(e %8$n%$r%i8 t$

gi6e a g$$( $6er6ie9 $? tem IA! a+%$ ac'ire ?'e+)e??icient aircra?t t$ re('ce ?'e+

c$n%'m8ti$n A% menti$n< ear+ier ti% i% +$ng) term ene?icia+ ?act$r %$ IA! nee( re('ce

ac'iring m$re an( it% c$r8$rate %$cia+ re%8$n%ii+it; t$ (ecrea%e e>8en%e% M$re$6er<

Partner%i8 9it One9$r+( air+ine an( c$(e %aring t$ e>8an( ne9 r$'te% e+8 ?$r IA! t$

%tai+i%e( in te ?$reign mar*et an( it% re('ce %tart)'8 c$%t ?$r tem 9ic ma*e m$re

ca8ita+ a6ai+a+e %$ greater $rr$9ing ca8acit; B; re('cing 'nnece%%ar; e>8en%e%< IA! cangi6e e>8ecte( (i6i(en( ?$r it% %are$+(er%

9=12 RIS, ASSESMENT

BA migt c$n?r$nt %$+i(+; ?$c'%e( ?r$m a++ ar$'n( re%$'rce( an( %it'ate( %tate)c+aime(

carrier F$r in%tance< Air In(ia i% 9e++) *n$9n ran( in In(ia an( it 9i++ e te main (eci%i$n

?$r teir nati$n c+ient At tat 8$int< c+imate e>treme% $6er te nati$n% are $ne $? te (anger%

C'rrenc; c$n6er%i$n %ca+e an( ta> rate 9i++ e a (anger ?$r BA a% 9e++ In te e6ent tat te

$t rate ig BA< nee( t$ 8a; m$re m$ne; In a((iti$n< A%ia nati$n% are 8rett; m'c rea(;

t$ ri6a+ +$9er c$%t ?inancia+ $n te gr$'n(% tat te; are creati6e an( mecanica++; 8r$8e++e(

%$ BA migt c$n?r$nt ar( t$ c$m8ete it% ri6a+ B; gr$9ing int$ A%ia mar*et< BA 9i++ ?ace

ri%e in ine'a+it;< en6ir$nmenta+ %tre%%< +arge in?ra%tr'ct're ga8 an( regi$n2% gr$9ing n'mer

in mi((+e)inc$me c$'ntrie%

IA! $n+; get te ene?it% in +$ng) term %$ it 9i++ create 8r$+em t$ %$+6e %$rt) term

$+igati$n% F$r e>am8+e< IA! cann$t 8a; it% (et $n time %tr'gg+e t$ 8a; e>8en%e% +i*e ta>an( $i+ Be%i(e%< te c'%t$mer a+9a;% c$m8are% 8rice an( %er6ice et9een air+ine% Tere?$re<

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IA! cann$t %t$8 %8en(ing m$re $n a(6erti%ing< 9ic +ea( t$ ri%ing in e>8en%e% Tere i% a

8$%%ii+it; IA!2 mar*et %are t$ e (r$8 an( 9i++ get a rea* e6en in 8r$?it B; getting rea*

e6en 8r$?it IA! 'na+e t$ 8a; %a+ar; ?$r it% em8+$;ee< 9ic ma*e te em8+$;ee

'nm$ti6ate( It 9i++ create 8$$r c'%t$mer %er6ice an( create %tri*e

>.or! :


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• tt8%:GG999g$$g+ec$mGriti%air9a;%013ann'a+re8$rt

• tt8%:GGem8+$;eere+ati$n%9$r(8re%%c$mGem8+$;ee)re+ati$n%)at)riti%)air9a;%G

• tt8:GG999teg'ar(ianc$mG9$r+(G00,G(ecGGi%t$r;)'*)'%)air+ine)terr$ri%m

tt8%:GG999g$$g+ec$mGriti%air9a;%01-ann'a+re8$rt "riti% air9a;% <

01-&

• tt8%:GG999g$$g+ec$mGriti%air9a;%013ann'a+re8$rt "riti%

air9a;%


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'$


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#RESENTATION S%I(E

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Iag Airlines Assignment (1)

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