brittni pladson kyle bachand stacy li yang liu. introduction – brittni history – yang swot...
TRANSCRIPT
Introduction – BrittniIntroduction – BrittniHistory – YangHistory – Yang
SWOT Analysis – KyleSWOT Analysis – KyleCompetition – StacyCompetition – Stacy
Industry Analysis – BrittniIndustry Analysis – BrittniRecommendations/Conclusion – KyleRecommendations/Conclusion – Kyle
HistoryHistory
The History of British Airways The History of British Airways The Status Quo of British AirwaysThe Status Quo of British Airways The Further Plan of British AirwaysThe Further Plan of British Airways
The History of British AirwaysThe History of British Airways
In 1919, the first scheduled In 1919, the first scheduled international passenger serviceinternational passenger service
In 1952, the first jet serviceIn 1952, the first jet service In 1976, the first supersonic serviceIn 1976, the first supersonic service
The Status Quo of British AirwaysThe Status Quo of British Airways
Subsidiary CompanySubsidiary Company One worldOne world PartnershipPartnership Hubs: Hubs:
London Heathrow AirportLondon Heathrow Airport GatwickGatwick Manchester International AirportManchester International Airport
The Further Plan of British AirwaysThe Further Plan of British Airways
The fleet size is 253, including 19 The fleet size is 253, including 19 flights in ordering.flights in ordering.
New purchase to expand the long-New purchase to expand the long-haul fleet.haul fleet.
The Struggles in OperationThe Struggles in Operation
British Airways Ethnic LiveriesBritish Airways Ethnic Liveries British Airways Cross Controversy British Airways Cross Controversy Child Protection PolicyChild Protection Policy British Airways should pay more British Airways should pay more
attention to being considerate before attention to being considerate before carrying out any policy. carrying out any policy.
StrengthsStrengths Industry LeaderIndustry Leader Customer ServiceCustomer Service One World AllianceOne World Alliance Business SegmentsBusiness Segments
Network AirlineNetwork Airline Regional AirlineRegional Airline Non-airlineNon-airline
WeaknessesWeaknesses
#3 among European Airlines#3 among European Airlines FleetFleet
Boeing instead of British manufacturingBoeing instead of British manufacturing
OpportunitiesOpportunities
AlliancesAlliances More routes covering more More routes covering more
destinations in more countriesdestinations in more countries FleetFleet
ThreatsThreats
New EntrantsNew Entrants Power of SuppliesPower of Supplies Power of BuyersPower of Buyers Availability of SubstitutesAvailability of Substitutes Competitive RivalryCompetitive Rivalry
Main CompetitorsMain Competitors
Virgin Atlantic AirwaysVirgin Atlantic Airways United AirlinesUnited Airlines Air France-KLMAir France-KLM
Virgin Atlantic Airways Virgin Atlantic Airways
The most primary hostile domestic The most primary hostile domestic competitorcompetitor
Purpose: breaking the monopoly of British Purpose: breaking the monopoly of British
Airways, becoming the largest Airways, becoming the largest
airlines company in UK.airlines company in UK. Greatly improved the quality of Economic Greatly improved the quality of Economic
ClassClass
British Airways vs. Virgin AtlanticBritish Airways vs. Virgin Atlantic
Passengers Carried: 35.5 million Passengers Carried: 35.5 million vs. 4.0 millionvs. 4.0 million
Counties covered: 73 vs. 18Counties covered: 73 vs. 18 Number of aircraft: 234 vs. 43Number of aircraft: 234 vs. 43 2006 Revenue: $14.8 billion vs. 2006 Revenue: $14.8 billion vs.
$1.91 billion$1.91 billion
United Airlines United Airlines
World's 2World's 2ndnd-largest airline by -largest airline by revenue-passenger-kilometersrevenue-passenger-kilometers
World’s 3World’s 3rdrd-largest by total operating -largest by total operating revenuesrevenues
World’s 4World’s 4thth-largest by total -largest by total passengers transportedpassengers transported
Air France-KLM Air France-KLM
World’s World’s the the largestlargest airline company airline company by total operating revenuesby total operating revenues
World’s the 3World’s the 3rdrd-largest airline -largest airline companycompany by passengers-kilometersby passengers-kilometers
the most profitable company in the most profitable company in EuropeEurope
COMPETITION AMONG BA,UA COMPETITION AMONG BA,UA AND AF-KLMAND AF-KLM
442369
228 234
460
554
222 210225
0
100
200
300
400
500
600
Ranking byFortune 500
Aircraft Destinations
Chart 4. Comparison 1 (2006)
BA
UAL
AF-KLM
COMPETITION AMONG BA,UA COMPETITION AMONG BA,UA AND AF-KLMAND AF-KLM
4995756861
102422
1518917379
26099
804.501110.8
0 20000 40000 60000 80000 100000 120000
Employees
Revenues(millionUSD)
Profits(million USD)
Chart 5. Comparison 2 (2006)
AF-KLM
UAL
BA
Strengths of UA and AF-KLMStrengths of UA and AF-KLM
Larger scale Larger scale Creating and occupying new markets Creating and occupying new markets
at the first time. Esp. China marketat the first time. Esp. China market focusing on high cost-performancefocusing on high cost-performance
WHAT DOES BA DO?WHAT DOES BA DO?
Cutting down the costsCutting down the costs Laying off the Laying off the people people Cooperating with Google Earth Cooperating with Google Earth Creating a brand new super-Creating a brand new super-
economic class economic class
The Airline IndustryThe Airline Industry
““Intensely Competitive Market”Intensely Competitive Market” OwnershipOwnership DOT ClassificationDOT Classification
InternationalInternational NationalNational RegionalRegional CargoCargo
Issues with the industryIssues with the industry
Physical cost of planesPhysical cost of planes WeatherWeather Fuel costs: Fuel costs: 14-16% of total costs14-16% of total costs
Labor: Labor: 40% of total costs40% of total costs
Intense competitionIntense competition
Recommendations/ConclusionRecommendations/Conclusion
Merger/AlliancesMerger/Alliances Safety/SecuritySafety/Security ComfortComfort IncentivesIncentives
Frequent flier miles Frequent flier miles