Brittni Pladson
Kyle Bachand
Stacy Li
Yang Liu
Introduction – Brittni
History – Yang
SWOT Analysis – Kyle
Competition – Stacy
Industry Analysis – Brittni
Recommendations/Conclusion – Kyle
History
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The History of British Airways
The Status Quo of British Airways
The Further Plan of British Airways
The History of British Airways
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In 1919, the
international
In 1952, the
In 1976, the
first scheduled
passenger service
first jet service
first supersonic service
The Status Quo of British Airways
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Subsidiary Company
One world
Partnership
Hubs:
London Heathrow Airport
 Gatwick
 Manchester International Airport
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The Further Plan of British Airways
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The fleet size is 253, including 19
flights in ordering.
New purchase to expand the longhaul fleet.
The Struggles in Operation
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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
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Industry Leader
Customer Service
One World Alliance
Business Segments
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Network Airline
Regional Airline
Non-airline
Weaknesses
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#3 among European Airlines
Fleet
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Boeing instead of British manufacturing
Opportunities
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Alliances
More routes covering more
destinations in more countries
Fleet
Threats
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New Entrants
Power of Supplies
Power of Buyers
Availability of Substitutes
Competitive Rivalry
Main Competitors
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Virgin Atlantic Airways
United Airlines
Air France-KLM
Virgin Atlantic Airways
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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
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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
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World's 2nd-largest airline by
revenue-passenger-kilometers
World’s 3rd-largest by total operating
revenues
World’s 4th-largest by total
passengers transported
Air France-KLM
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World’s the largest airline company
by total operating revenues
World’s the 3rd-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)
554
600
500
400
300
460
442
369
228
234
222 210 225
BA
200
UA L
100
A F-K LM
0
R anking by
Fortune 500
A ircraft
D estinations
COMPETITION AMONG BA,UA
AND AF-KLM
C hart 5.C om parison 2 (2006)
1110.8
P rofits(m illion U S D ) 0
804.5
26099
17379
15189
R evenues(m illion
U SD )
AF-K LM
U AL
102422
56861
49957
E m ployees
0
20000
40000
60000
80000
100000
120000
BA
Strengths of UA and AF-KLM
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Larger scale
Creating and occupying new markets
at the first time. Esp. China market
focusing on high cost-performance
WHAT DOES BA DO?
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Cutting down the costs
Laying off the people
Cooperating with Google Earth
Creating a brand new supereconomic class
The Airline Industry
“Intensely Competitive Market”
Ownership
DOT Classification
International
 National
 Regional
 Cargo
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Issues with the industry
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Physical cost of planes
Weather
Fuel costs: 14-16% of total costs
Labor: 40% of total costs
Intense competition
Recommendations/Conclusion
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Merger/Alliances
Safety/Security
Comfort
Incentives
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Frequent flier miles
QUESTIONS?