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British Airways Management Analysis

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British Airways Management Analysis
Management Research Report

What has British Airways done during the recession to be competitive against Ryanair and Easyjet?

Table of Contents

1. Introduction ………………………………………………………………………………………………….. 3

2. Methodology …………………………………………………………………………………………………. 4

3. Short History

3.1 British Airways ……………………………………………………………….……………………5

3.2 Easyjet and Ryanair………………………………………………………………………………..6

4. Prior to the Recession

4.1 British Airways ……………………………………………………………………………………..7

4.2 Easyjet …………….………………………………………………………………………………...8

4.3 Ryanair ……………………………………………………………………………………………... 9

5. Recession and Airline Industry

5.1 Impact of current recession on the airline industry …………………………………………….. 10

5.2 Impact of recession on British Airways …………………………………………………………... 11

5.3 Impact of recession on Easyjet and Ryanair …………………………………………………….. 16

6. The Strategies implemented by British Airways

6.1 Strategies implemented to compete against Easyjet and Ryanair……………………………… 18

7. Recommendation ……………………………………………………………………………………………… 23

8. Conclusion ……………………………………………………………………………………………………... 24

9. Reference and bibliography……………………………………………………………………………………. 25

1. Introduction

This report will focus on the current economic crisis and the effect it has had upon British Airways. The passenger figures at London Heathrow, Gatwick, Standsted and other major airports have dropped by 7.4 per cent last year compared to 2008.(Telegraph, 2009) Moreover, many different surveys have shown that people are now more reluctant to travel to foreign destinations for holiday. Moreover, the Civil Aviation Authority (CAA) announced that only 216.8 million travelers were registered in 2009, the lowest figures since 2004, and the experts believe that the figures will continue to drop for the foreseeable future. (BBC , 2010)

These official figures paint a gloomy future for the aviation industry and

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