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 airlines company in UK.

Greatly improved the quality of Economic 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

   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 C h art 4. C o m p aris o n 1 (2006) 600 500 400 300 200 100 0 442 369 228 R anking by Fortune 500 234 460 A ircraft 554 222 210225 D estinations B A U A L A F-K LM

COMPETITION AMONG BA,UA AND AF-KLM C hart 5. C om parison 2 (2006) P rofits(m illion U S D ) 1110.8

0 804.5

R evenues(m illion U S D ) 26099 17379 15189 E m ployees 0 20000 102422 40000 56861 49957 60000 80000 100000 120000 AF-K LM U AL B A

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      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?