OR Presentation

British Airways1Hello & welcome

3British Airways overviewFull service global airline, offering year-round low fares Flag carrier airline of the United KingdomFounded in 1924 as Imperial Airways, and operated under that name until 19351939, the airline was nationalized to form the British Overseas Airways Corporation (BOAC)1972, BOAC and BEA were combined under the British Airways Board

Mission The World's Favourite Airline

provide the full service experience and achieve the target in both, in-flight and on the ground.

VisionAccreditation for Carbon Offsetting Schemeoffer carbon offsettingthe first airline to win Government approval launch of the Department for Energy and Climate Change new Carbon Offsetting Quality Assurance Scheme

Industry united position on climate changereduce climate change emissions in aviation with a cap on net emissions by 2020 and a 50% cut by 2050It will guarantee environmental targets are met, and minimize costs to passengers.

GoalsEnvironmentReduce carbon emissions, waste, noise and improve local air quality.

CommunitySupport international communities, conservation projects and charities in the countries we fly to.

MarketplaceEncourage our customers and suppliers to act responsibly.

WorkplaceProvide a great place to work and encourage everyone at British Airways to embrace One Destination.Internal and external capabilitiesInternal Capabilities Aircraft fleet and destinations fleet of 238 aircrafts Access to more than 300 destinations Sole access to Heathrow terminal 5 Variety of Training facilities Cabin crews are trained 1200 hours Flight simulators to Cabin Crews and Pilots Computer Base Learning, Library facilities, Audio and Video based learning designed to management staffs

9Internal and external capabilities...contPremium Services Quality services to customers at every touch Listen to customers feedbacks

Corporate social responsibility Climate Change Programme, Reducing waste by 50%

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Internal and external capabilities...contExternal capabilitiesClose relationship with customersAttend customers complain and feedbacks

Alliances with other airlinesT o extend greater services, eg. One World, American Airline, City Flyersetc Openskies Alliance

Internal and external capabilities...cont Corporate social responsibilityCommunity learning centre at Heathrow, London Partner with UNICEF, promote change for good Donate 1.3 million in 2010 from BA and staffs. Raise USD $30 million from passengers ( 10 years)

SWOT analysisStrengths Strong brand image Opensky agreement International operations Sole access to Heathrow terminal 5 Skilled staffs Expansion of Aircraft fleet Economies of scale by using Spare space of passenger aircraft for cargo services

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SWOT analysisOfficial Airline for 2012 Olympic and Paralympics games.. Deal of 40 millionThis create opportunities for BA to impress their customers with excellent services

SWOT analysis... cont

Weakness Cost of management Decline profitability 358m loss in 2009 (After tax) 425m loss in 2010 (After tax) Labour strikes Powerful Employee Union Christmas strikes in 2009

17SWOT analysis... cont OpportunitiesEmergence of new marketsAsia pacific

18SWOT analysis... contThreatsRaising fuel pricesTight competition from low cost airlinesChanges in the consumers behaviourUnstable political issues and global economic crisis

19British Airways- market position, by using porters Five forcesForceStrengthCompetitive rivalry

BA caters for both long and short haul flightsthere is little differentiation between BA and its competitors in term of pricing and offer The short haul market is more fragmented with many small players

HIGH20British Airways- market position, by using porters Five forces contForceStrengthPower of suppliers Two aircraft manufacturers BA restricted by sole suppliers of fuel to the airportHIGH Power of buyer Long Haul destinations- customer has no other choice Availability of flights and seats are limited However , prices are changes according to demand- festival times

MEDIUM21British Airways- market position, by using porters Five forces contForceStrengthThreats of new entrance competitive environment High regulatory requirement high cost requirement HIGHThreat of substitutes There are few direct closed substitutes Short haul flights : Euro star or a ferryLong haul flights : No notable substitutes

LOW22Five Strategic GoalsBe the airline of choice for longhaul premium customers.. key to our profitability.. deep understanding of what is required to be their airline of choice to drive our design choices on product, network and service.

Deliver an outstanding service for customers at every touch point.. to build on this through a revolution in the way we lead, train and reward, so that all our customers, on all routes and classes, enjoy a premium experience. . will invest both in improvements targeted, such as service style training, and in those benefiting all customers, such as Terminal 5.

Grow our presence in key global cities.. to provide the best global connectivity for our customers.. will build our presence in the top tier global cities, either directly or through our expanding network of airline partnerships.

Build on our leading position in London . To support this, we will look to influence government policy decisions, and work with the airport owners on the continued development of the infrastructure.Meet our customers needs and improve margins through new revenue streams. will explore how we can develop new products and services which exploit our assets and capabilities, and meet the needs of our core customers and enhance loyalty.

Competitive Advantagemodern technology Self Service Check-in (SSCI) .. Using IBM's kiosks .. Lower cost - estimated savings at $3.50 per passenger most advanced freight processing facilities service. BA used one of the largest computers outside the defence industry. . extract data from anywhere in the BA network in two seconds.

Strategies that have been implementing?Setting the priority (not opening too many frontsBe more sensitive to Human aspect and job cuts. It become operations oriented, with low emphasis laid on employees moralBob should have involved people in the process. Change accomplished through people is far more effective than change forced upon themBritish Airways plans to reduce waste on future flights By 2014 British Airways will be reducing10% of its waste on future flights

Recommendation

Community:Raise 2 million each year for our partner charities. Continue to offer a learning experience to schools in the Heathrow area at the BritishAirways Community Learning Centre. Support a whole range of community and conservation projects around the world

Workplace:Make it easier for BA people to volunteer time to charities and community activities. Create more energy efficient workplaces for our teams worldwide. Ensure that every member of staff has the opportunity to get involved with One Destination

Recommendation ContEnvironment:Reduce our average noise per aircraft by 15% by 2015*. Become 25% more carbon-efficient by 2025 (83 g CO2 / pkm reduced from 111 g CO2 / pkm). Recycle 50% of all our waste. Reduce our net CO2 emissions by 50% by 2050.

Marketplace:Make it easier for customers to carbon offset their journeys. Our key suppliers will be audited independently for their ethical practices by 2012.

Thank you