Airlines Operating in and Out Term Paper

Pages: 9 (2705 words)  ·  Bibliography Sources: ≈ 51  ·  File: .docx  ·  Level: College Senior  ·  Topic: Transportation

Such moves improve the outlook of the airline in aligned to its objectives, attributed to the marketing team at British Airways.

Another competitive advantage requires from British Airways to setup a global electronic network to bring the services closer to the target customers of the airline. A 24-hour customer support group corresponds to customer queries. Online ticket reservation and flight schedules open up a great domain of options available to the prospective travelers. [British Airways Official Website 2003]

Incentives to regular executive customers of British Airways have been responsible for earning the airline customer loyalty. BA gives away holiday packages, travel discounts, and unmatchable indulgence by providing the executive class with Chauffeur drivers, Express rail tickets during international travel and hotel vouchers and what not. Besides the executive class, regular customers too are catered with an exceptional level of care. [British Airways Official Website 2003]

By offering extra preventive measures in the interest of safety of the travelers, and their health, British Airways confirm a devotion and loyalty to the clientage. A recent example of such activity is observed in the management and scheduling of flights due to or through Hong Kong and Beijing in the scare of the SARS virus ['British Airways announces changes, 2002].

Marketing Mix

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With the examination of the internal and the external environments of British Airways through the SWOT Analysis (outlined earlier) the company has a focus on its Marketing Mix strategy.


BA exploits its strengths to identify the product in the market. The huge fleet of BA and the quality care with comfort provided to the customers upon their choice of traveling with the airline are identified. Customers are informed of the various travel destinations packages and incentives they can expend upon traveling with BA.

Term Paper on Airlines Operating in and Out Assignment

Competitors of BA, such a Virgin has mostly well-defined product descriptions insisting on their grand quality of services [Fink and Harrich 2000].


The cost that the customers pay for traveling with BA is minimized relative to the level of satisfaction the product offers. The cost each tariff bears is standardized and affordable. But alternately, British Midland airline has been seen to have a better competition as it offers cheap flights equally diversified frequency of flights and ease of the availability of the seats. Being a part of the Star Alliances brings it at par with BA [British Midland Official Website 2003].


BA has distinguished her services from the rest of the airlines by offering features and benefits to the loyal customers and wide range of incentives to the new consumers inside and outside the United Kingdom. BA has made place in the domestic and International market by identifying patent offers, the target of appeal being the customers that either frequently travel for businesses expeditions, or those who travel for exploration. Flight routes are scarcely distributed among less frequent destinations, for example Pakistan or Africa, and more business resources are made available for destinations in the United States.

The competitors lack in this marketing strategy by inefficient distribution of flights to and from less visited destinations. Another marketing strategy introduced by BA is the placement of reservation and flight schedules online on the World Wide Web that makes them more accessible, giving the company a competitive advantage over rivals.


BA to promote their new look, features and services being offered has used various media. The presence of an online secured website adds to the list of promoting elements. The airline strives to make their services speak loud for their own representation. Though the most effective way to promote the airline is an advertising campaign, often resorted to by airlines, has revealed solid results for BA as well as the rivals.

During her campaigns, British Airways promoted the image of the airline with the statement "Britain's favorite Airline" to "World's favorite airline." Tail fins were reflective of the new image of the company, which helped promote the latest image of BA. [Caragher, 2001]

Key Success Factors

The key factors responsible for steering the company to success are many. During our study we have come to realize the importance of the restructuring of the company. The job cuts, investment in state of the art passenger planes, equipment for terminals and online reservation systems are the key elements of the restructuring. The evolution of the culture within the organization was a pinnacle event in envisioning the airline objectives. With a backup of great marketing strategies and marketing mix, British Airways has been able to steer clear of the competition to heights of quality services to the customers.

The evidence of the growth of profits of the company can be seen in the financial statement mentioned in Appendix 1 [Hoovers 2003]. While competitors like Virgin and British Midland will no doubt eventually improve on their services nevertheless it has been observed that BA have lead the way for European airlines. Although it had negative repute in its earlier years but nevertheless, the new management has goals to overcome those obstacles. With its infrastructure as well as dynamic marketing strategies it will be able to secure the top position. Traditional and no frills airlines are limited in their scope in that they are not able to expend their operational costs to the value added services that are utilized by BA as part of its promotion.

Works Cited

Author not available, August 1, 2002, 'British Airways announces changes to winter services' Airline Industry Information at

Fedrick, LM 2002, British Airways Company Information, Southern Illinois University Edwardsville:

Grugulis, I. And Wilkinson, A. 2001, British Airways: Culture and Structure, Research Series, Paper 2001: 4, No. 10. At

Caragher, JM, 2001, Communicating your brand internally, Marketing Trends at

Fink, M. And Harrich, W. 2000, Virgin Atlantic Airways, Final Case Report,

Author not available, 2000, The Primary Cause: Concorde Loses Flight Certification, ABCNews,

Author not available, 2003, Company Capsule: British Airways Plc at,2163,41761,00.html

Warhurst, R. 1995, 'Converging on HRM? Change and Continuity in European Airlines' Industrial Relations' European Journal of Industrial Relations 1 (2) pp 259-274

Blyton, P. And Turnbull, P. 1996, 'Confusing Convergence: Industrial Relations in the European Airline Industry - A Comment on Warhurst' European Journal of Industrial Relations 2 (1) pp 7-20

Colling, T., 1995, Experiencing turbulence: competition, strategic choice and the management of human resources in British Airways, Human Resource Management Journal, Vol 5, No 5, pp 18-32.

Author not available, 2003, British Airways Official Website at

Author not available, 2003, British Midland Official Website at

Appendix 1

British Airway's Group Profit, Loss Account, and Balance Sheet

Group Profit and Loss Account

All amounts in millions of British Pounds except per share amounts.





Jun 01




Cost of Goods Sold

Gross Profit

Gross Profit Margin

SG&A Expense

Depreciation & Amortization

Operating Income

Operating Margin

Income Before Taxes

Income Taxes

Profit for the Financial Year

Net Profit Margin

Diluted EPS

Balance Sheet

Jun 01

Fixed Assets

Total Current Assets




Total Current Liabilities

Short-Term Debt

Net Current Assets/(Liabilities)

Long-Term Liabilities

Long-Term Debt

Net Assets/Shareholder Funds

Shares Outstanding (mil.) [END OF PREVIEW] . . . READ MORE

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