in France. British Airways serves 95 million passengers a year using 441 airports in 86 countries and more than 1,000 planes. It has more than 60,000 employees in around 100 countries globally.
Aims and objectives:
To provide a critical evaluation on British Airways operations management
To justify the British Airways action plans involved with operation management.
And to recommend an action plan to improve operations management.
Methods:
Secondary data has been used in this study because of easily accessible. Sometimes it can be best method of obtaining information for some specific area when it is difficult to get the direct collection data.
Problems facing in its operations:
Branson filed suit against British Airways in 1991 so various filed suits damaged British Airways' reputation and led to comments 'BA now looks like an anxious, overbearing giant trying to squash a feisty little rival.' With its Virgin difficulties continuing, British Airways' overseas partners suffered huge losses: in 1993 Qantas lost $271 million, while in 1994 TAT lost $60 million and USAir lost $350 million. Even though British Airways was struggling with its alliance
strategy, the real test of its global strategy lay ahead with the long-awaited 1997 deregulation of the European airline industry.
British Airways leads a wide range of routes in the world. Recently the Heathrow based airline has enlarged terminal for holding their image, which is Terminal 5. According to a study by the association of European Airlines, starting during their operation periods BA has lost the luggage of an average of 9 passengers on every jumbo jet flight in 2008. BA was bound to force to cancel more then 200 flights in the days following the opening of terminal 5 after computer log-on failure for luggage handle sparked chaos.
There is the global slowdown in the travel industry after global recession Bookings were sharply down even before the atrocities committed in New York and Washington. International travel reservations company Amadeus reported that airline bookings had slumped 28% worldwide, and by 74% in the United States alone. The biggest problem is a sharp fall in first class and business class passengers. Cargo volume declined 9.8 percent (https://www.joc.com/node).
If staff - angry over planned job cuts and changes to work patterns - opt to walk out, the earliest date for a strike could be December 21 2009. BA plans to reduce the existing number of 15 service crew members on long-haul flights by one later this month and has proposed a pay freeze for two years.
British Airways faces £250m threat to profits as open skies era takes off in terminal 5.
Investors are smarting as well. BA's shares currently trade at about 150 pence. In May 1997, they were priced at 760p.
Instead of breaking even this year - following a string of quarterly losses - analysts now expect the airline to report a £200m loss by the end of the year. In the past four months alone BA shares have lost more than 60% in value and 42% since the eve of the attacks.
Insurance costs are going up too, with several airlines including BAreporting that their insurers are demanding 10 times the normal premium.
The reasonable facts that leads the worst situation in its operations:
Britis
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