Strengths the Business and Consumer Super brands awards for

 

Strengths

 

British
Airways has its strengths in economies of scale, which gives it a big advantage
over other operators. It is derived from a large parent company, the
International Airline Group, which also owns and manages other airlines,
including Aer Lingus, Vueling and Iberia. The parent company operates a precise
and effective network of operations on the domestic and foreign scale that
British Airways uses. The economies of scale allow British Airways to enjoy
effectively reduced costs of each operation. As a result, the British airlines
in 2016 also won the award for a business traveler for the best short-distance
runner (Otley, 2016).

We Will Write a Custom Essay Specifically
For You For Only $13.90/page!


order now

 

The airline
has a strong and solid brand image for many years. There are awards
and awards that BA collects every year. An example of this can be that in 2016
British Airways won the Business and Consumer Super brands awards for the
second time in a row – the first company that ever done. In 2015, British
Airways was named by The Sunday Times and National Geographic was named the best
short-distance and long-distance haul airlines. There over Independent has
awarded British Airways the title of the best European airline (Rodionova, 2018). BA has been a strong image for several years
and proofs and indicators can be rewarded each year which gives the company
many benefits on different surfaces.

 

The IT and Internet revolution with various processes and
the high level of digitization constitute a solid basis for the competitive
advantage of British Airways. As emphasized by CEO Alex Cruz to innovation in
British Airways, it is necessary to use a digital boarding pass for over 28,000
customers a day or to run applications for Apple Watch for faster checking at
airports (Newton,
2017). The
airline can also boast an excellent Business Class with a flat bed and matching
and comfortable seats in the economy class as well. A strong presence on the
Internet is the basis for a company providing high-quality services

 

During the year, the actions of the board of directors
of BA sought to mitigate the effects of many challenges and threats as much as
possible. However, at the same time British Airways management took advantage
of such opportunities as low fuel prices compared to the previous year. As a
result, BA delivered record operating profit before an exceptional profit of £
1,473 million (Looking for 2015 it was 1,264 million GPB) for the year and increase
of 16.5% over the previous year.

 

 

Weaknesses

 

British Airways has a strong trade union that was
created for the correct interests of employees such as adequate remuneration,
good conditions associated with the placement and fair treatment of employees
by the Company regardless of ethnicity or back. Bearing in mind that trade
unions can bring positive changes to the company, especially if its efforts
result in employee satisfaction and increased productivity, this is more often
the responsibility towards BA resulting in frequent protest actions that harm
and damage BA operations, income and the image and reputation of the company in
this process. Although it may not be possible to reduce the strength of the
union, it is prudent for the Company to establish good relations with trade
union leaders and maintain a good relationship with them. For this purpose, the
company needs to employ people with strong negotiating skills. The company must
also have a pro-client policy, and if it has one, it must maintain it. The
company must treat employees honestly and with integrity and employees must be
rewarded honestly to avoid the problem between the company and the company.

 

It seems that the growth of British airlines is
disproportionate to domestic short-haul flights because the company is very
competitive on the domestic market more than on the international market which
may not help its continuation in the future. Uneven competitiveness of the
Company is reflected in the revenue indicators between domestic and
international operations, in which revenues from domestic operations accounted
for in 2016 over 50% of the total revenues of the Company (Bhasin, 2016). This
is not good for a company that can boast global growth.

 

Opportunities

 

The third sector approved by Heathrow at Heathrow is a
great opportunity for BA. The proposed expansion will create new and affordable
additional capabilities at Heathrow. This will also reduce the cost of service
to or from Heathrow Airport, which is currently the most expensive airport in
the world (Johnson 2016). What’s more, Heathrow’s expansion after Brexit will
allow carriers such as BA to offer more direct flights not only to destinations
in the UK, but also to 40 new cities abroad, such as Wuhan, Osaka and Quito
(BBC 2016).

 

 

British Airways recorded a 65-percent jump in annual
profits after high demand and low fuel costs – which contributed the most to
this. The low price of oil has helped the aviation industry over the past year,
increasing even the European airlines that have hitherto been fighting, hit by strikes and increased
competition from the Middle East and budget rivals (Powley, 2016). British Airways claimed that it no
longer uses fuel subsidies for flights outside of Great Britain (Jamieson,
2018).

 

 

 

 

Threats

 

By Brexit BA can lose many international flights. EU
Brexit negotiators have taken a firm stance on aviation which would drastically
reduce UK aviation rights. (https://www.ft.com/content/e7674638-d078-11e7-b781-794ce08b24dc).
As far as the economic impact of Brexit is concerned, it will bring the United
Kingdom economic shock, including weaker currency, and slowdown in economic
growth, investment and economic decline in airline operations. Considering the
inherent uncertainty as to the course of Brexit negotiations, IATA and Tourism
Economics model the impact of three different Brexit scenarios from
“hard” to “soft”.
In all three scenarios, traffic between the UK and the EU has the biggest impact
on air traffic (Iata.org, 2017).

 

 

The Air Traffic Controller (ATC) strikes to France in
2016 and in March 2017 contributed to massive international cancellations and internationals
delays for British Airways. Strikes in 2017 was based on “poverty
pay” (Munbodh,
2018). Employees also started to make accusations against the
company and their financial situation since joining the BA caused “stress
and depression” (Calder, 2018). The
strikes do not serve the company, they make a big loss. British Airways knows
it well back to strikes in 2010, the company lost a record of £ 531m loss (Milmo, 2010).

x

Hi!
I'm Marcella!

Would you like to get a custom essay? How about receiving a customized one?

Check it out