Running Head British Airways

British Airways



British Airways

Introduction

The British Airways assembly consists of British Airways plc and a number of subsidiary companies encompassing British Airways Holidays Limited. British Airways is one of the world's leading airlines with a mesh that provides passenger and freight services to 149 destinations in 72 countries. In 2004/05, British Airways carried over 35 million passengers and nearly 900,000 tones of cargo. Its airline mesh is centralized on the United Kingdom, where 85% of its 47,500 workforce is based. The mission of the assembly is to consign service that matters for persons who value how they fly. To realize this, British Airways recognizes the importance of employed in partnership with its stakeholders. This has leveraged its approach to corporate social responsibility. Its approach has also been leveraged by the acknowledgement that airlines generate major social and financial benefits, but also have significant impacts on the natural environment (for example, through noise and air quality) and on communities around airports.(Lindell,2002,92)

 

Global Financial Slowdown/Credit Crunch

The present Global Recession has jolted the economies around the world. It has caused severe financial and social effects. The impact is sensed universal although it is varying in intensity from homeland to country. It is an financial earthquake of rather large-scale magnitude. It has resulted into broad scale closures and bankruptcies around the world, high rate of job loss and loss of earnings, curtailment of consumption and shrinking of production. This has generated a continuous and, an unending chain reaction. The countries are reducing down their GDP development forecasts, chopping their expenditure, resorting to tax cuts, rebates, gigantic bailouts and transfer payments. (Lindell,2002,92)

The period Global Recession has been characterized as the global financial downturn. The recession has been characterised and analyzed in historical perspective. The period Global Recession has been characterised in comparison with other more or less similar terms like, financial depression, financial stagnation, and stagflation.(Kenyon,2007,56)

The Group carries out detailed risk management reviews to ensure that the risks are mitigated where possible. A more detailed summary of risk management and internal command corporate governance processes are encompassed on pages 58 and 59. Clear plans for mitigating many of our principal risks and uncertainties that we face are encompassed in the section on 'Our strategy and objectives' and 'The way we run our business' on pages 24 to 28 and pages 34 to 52 respectively.

As documented above, the airline industry is furiously comparable and will require to rationalize to rendezvous present market conditions. This will engage farther airline failures and consolidation. As in all consolidations, a amalgamation with Iberia, and the junction ATI application with Iberia and American Airlines, would insert integration risks such as a failure to realize planned benefits, brand erosion and other execution risks. Mergers and acquisitions amongst competitors have the potential to adversely affect our market position and revenue. Certain markets in which we operate remain regulated by governments, in some instances commanding capacity and/or restricting market entry. (Lindell,2002,92) Relaxation of such restrictions, whilst creating development opportunities for us, may have a ...