BRITISH AIRWAYS

British Airways

Table of Content

CHAPTER 11

Introduction1

Background1

Aim and objectives industry/Activities1

CHAPTER 023

Information Gathering3

CHAPTER 035

Financial Analysis And Business Analysis5

SWOT Analysis5

Strengths5

Weaknesses5

Opportunities5

Threats6

Financial Analysis6

Key Ratios7

Operating Performance7

Asset Turnover8

Capital Structure.9

Short-Term Liquidity9

Return on Equity (ROE).10

Cash Flow Analysis10

CHAPTER 412

Conclusion, Recommendation and Limitation12

REFERENCES14

APPENDICES15

Table 0115

Table 0217

Table 0318

Table 0418

Table 0519

Table 0619

Table 0720

Table 0822

Table 0923

Table 1024

Table 1124

Table 1225

Table 1325

Table 1425

Table 1526

Table 1628

CHAPTER 1

Introduction

British Airways Plc (British Airways) is an international airline company, carrying more than 33 million passengers worldwide. The company is engaged in managing scheduled passenger and cargo operations and other related services. The airline company has two operating bases, namely, London's two major airports - Heathrow and Gatwick. British Airways' fleet includes 245 aircraft comprising 57 Boeing 747s, 42 Boeing 777s, 21 Boeing 767s, 13 Boeing 757s, 69 Airbus A319/320/321s, 33 Boeing 737s and 10 smaller aircraft being used in the company's regional business. (British Airways 2007)

Background

In 1987, British Airways was privatised, and over the next decade turned from a loss-making nationalised company into "The World's Favourite Airline" - a market-leading and very profitable plc. The strategy that transformed the company into a marketing-led and efficient operation was conceived and implemented by Lord King as Chairman, aided by Sir Colin (subsequently Lord) Marshall: two tough businessmen who confronted staff inefficiencies and so improved service effectiveness that BA was rated international business travellers' favourite airline for several years in the 1990's.

To overcome this situation, large airlines are undertaking aggressive cost cuts to survive, but many of them have been unable to offset oil prices cost increase. Oil prices, labour costs, overcapacity, competitive pressures and a high debt to assets ratio are driving major airlines to ally, merge or change dramatically its business strategy in order to survive. British Airlines have been successful during this difficult period.

British Airways is the largest airline in the United Kingdom and one of the largest in the world with a total number of employees about 50,000 and a route network comprised of 150 destinations in 72 countries. Its fleet is composed of more than 350 aircrafts. BA is the airline company with the most flights from Europe to North America in the world.

British Airways is the largest airline in the United Kingdom and one of the largest in the world with a total number of employees about 50,000 and a route network comprised of 150 destinations in 72 countries. Its fleet is composed of more than 350 aircrafts. BA is the airline company with the most flights from Europe to North America in the world. (Campbell 2000)

Aim and objectives industry/Activities

Lord King having retired, Lord Marshall became Chairman and was succeeded as Chief Executive by Bob Ayling, a long-time BA manager. Ayling set in train a strategy to turn BA into a "global" airline - transcending the "flag-carrier" status (the role of a nation's leading airline) it shared with Air France, Lufthansa, Swissair, Alitalia, Iberia - into an airline with no "national home" operating throughout the world. The dropping of the overtly "British" heritage and associations was reflected in a changed brand ...