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British Airways is the largest international scheduled airline in the United Kingdom. It was founded in 1974 through the nationalization of four UK carriers. The company is strictly focused on the airline business, with different segments being domestic, shorthaul and longhaul, the latter two reflecting international routes. In these businesses, BA competes against a wide range of carriers. EasyJet, Ryanair, Virgin and bmi compete for a large share of the business to and from Europe. Other international airlines with landing rights in London compete for longhaul business. In the 2008/09 report, BA indicated that carriers from the U.S., Africa and India had all established slots at Heathrow. The London longhaul market is also served by charters and by low-cost longhaul operators such as Air Asia. British Airways combats this by entering into alliances that allow it to draw passengers from partner airlines around the world, with the objective of maximizing longhaul capacity in particular (British Airways 2008-09 Annual Report).
The most important recent news concerning BA is the merger with Iberia. It was announced in early 2012 that the first year of the combined airline, which operates under the name International Consolidated Airlines Group, saw profits of €485 million, compared with €225 million in profit in fiscal year 2010. Iberia suffered...
British Airways' traditional strength in the Trans-Atlantic market has helped to drive this success.
The annual report online outlines some of the key accounting policies. Depreciation of plant, property and equipment is calculated as the cost of the equipment less the estimated residual value on a straight-line basis. The carrying value is revisited periodically when events or changes indicate that the carrying value may not be recoverable. Cabin interior investments are depreciated on a straight line basis over five years or the remaining life of the aircraft, whichever is lower.
Inventories are "valued at the lower of cost and net realisable value, using the weighted average cost method. Allowances are made for doubtful receivables. Pension benefits are recorded in line with IAS 19 'Employee Benefits.' Foreign currency translation, which caused a significant negative impact on the current years' earnings, are based on the spot exchange rate at the time of the transaction, and translated at the rates ruling at the balance sheet date. Derivatives are valued in accordance with IAS 39 'Financial Instruments -- Recognition and Measurement.'
In 2009, British Airways saw a 3.1% improvement in passenger revenue and an improvement of 9.4% in…
Works Cited:
Rothwell, S. (2012). BA-Iberia profit doubles in first year of merger. Bloomberg. Retrieved May 1, 2012 from http://www.bloomberg.com/news/2012-02-29/ba-iberia-profit-doubles-in-first-year-of-merger-on-u-s-surge.html
British Airways 2008-09 Annual Report. Retrieved May 1, 2012 from http://www.britishairways.com/cms/global/microsites/ba_reports0809/our_business/markets6.html
EasyJet 2009 Annual Report. Retrieved May 1, 2012 from http://2009annualreport.easyjet.com/files/pdf/easyJet_AR09.pdf
British Airways needs to do strategically to consolidate its market leadership during the final years of this decade The reduction of service that is now seen from British Airway now is not due to any difficulties of the airline itself, but of the present situation in England, and the restrictions imposed on its airport. This is temporary and it may be expected that this will be sorted out shortly. The present
" (Qantas Airways Limited and Controlled Entities - Preliminary Final Report, 2008) In July, 2008 Qantas reported that it intends to "eliminate 1,500 jobs world-wide and it shed plans to increase flying capacity as it continues to battle high jet-fuel costs." (the Wall Street Journal, 2008) in addition, the plans to hire 1,200 people have been canceled. Qantas will also be retiring 22 aircraft from its fleet and call centers in
Its proximity to Chicago as well as Milwaukee makes it convenient for southern Wisconsin and northern Illinois travelers. Noise Abatement Program: The O'Hare Noise Compatibility Commission (ONCC) is composed of a number of regional communities and school districts (too many to mention in this research). According to the ONCC 2009 Annual Report noise complaints were "six times higher in 2009 compared to 2008" (www.oharenoise.org). There is an Airport Noise Management
In terms of environment, British Airways has a rather opaque policy and they have yet to implement measures which safeguard the well-being of the environment. Relative to the competition, the British operator strives to regain its strength through a merger with Iberia. 3. Recommendations for Improvement Before presenting the recommendations for improving the operations management at British Airways, it is necessary to reveal some of the challenges presented by the modern
A lower price enables an airline to remain well above the competition. Economies of scale and scope are vital to the performance of an organization no matter the industry the organization is involved in. An organization can only remain competitive if driven to achieve economies of scale (Bronson & Morgan, 1998). Tactics an organization may adopt to achieve economies of scale and scope will include optimal market coverage, increasing sizes,
Yet, it is not the global recession that prompted the problems, but it is more of the time when they surfaced. The cause is the poor personnel management implemented for years within the organization, meaning as such that a solution can only come with the improvement of the personnel management strategies. The lines below point out to some strategies that could be developed and implemented to address the problem