Essay - British Airways Summary: This is a Paper that Outlines the...

BRITISH AIRWAYS

Summary: This is a p*****per that outlines the industrial and environment ***** surround British Airways. It has sources.

Question

Political

The airline industry of Britain and elsewhere in ***** world has had a drastic set back due to the recent political climate. Although many *****s attribute the September 11 attacks as the core reason for *****ir deteriorated performance nevertheless, according ***** a KPMG Corporate Finance report the European Airlines have been involve in a cyclic*****l that entails financial ***** dependent on fuel costs as well ***** exchange rate fluctuation. The government in the recent years have been supportive to BA in that it has promised to compensate for the loss during the terrorist attack never*****less the loss ***** has been detrimental ***** the company in the recent years require internal structuring. Fur*****rmore, BA and other European airlines like Lufthansa, KLM and Swiss Air all largely depend on the One World and European Regions Airline Association to collaborate their market base and generating revenues.

***** the most critical moment in the airline industry across the ***** had been ***** event of September 11, nevertheless the US had not been the only one that was hard hit consumer level decreased significantly in England as well. During the Gulf War the airline industry loss 20% ***** its cus*****mer due to news of ***** War. This time the airlines have been equipped in dealing with the economic setback ***** often resulting from a war or such political catastrophe.

Economical

***** immediate priority ***** to ***** same KMPG ***** is ***** focus on relieving airline ***** of ***** equity debt level so as to boost their ***** positions. However, it has been observed that the ***** level is highly disproportionate in this difficult time as ***** British government is engaged ***** ***** against Iraq thereby tightening the current public sector budget. And because ***** th***** *****e ********** are becoming more cautious where luxury services and products are concerned. Savings becomes high ***** people try to save ***** an uncertain future.

*****

On a more consumer ***** it ***** been observed th*****t the fear for flying is fin*****y easing up the travelers as more ***** ***** people ***** beginning to utilize airlines as a me*****ns for transport. But this kind of att*****ude has not transformed over night. Instead it has ***** under the influence of the continuous persuasion of ***** through strategic marketing and implementation of low ********** travel. For this ***** consumers are finding it much easier to gain leverage ***** ***** service providers.

*****

Apart ***** the above factors BA ***** other airlines ***** finding it much more efficient in ***** with the cost ***** transact*****g online. Although currently the online consumer base is still relatively low as compared to the brick and mortar ones but nevertheless the basic prem*****e and reason that most of the world's airline companies are transferring *****ir sale and purchases online is that they ***** much cost effective as compared ***** setting ***** sales channels at different