BRITISH AIRWAYS

British Airways

British Airways

Introduction

The paper provides a comprehensive overview of an airline industry. It has discussed the British Airways in relation to Porter's Five Forces Model and has further given the SWOT analysis. The paper has even analyzed the financial performance of the British Airways.

Industry Overview

British Airways is a part of international consolidated airline group and operates in airline industry. It faces intense competition with local airlines as well as those operating internationally. The British Airlines ranked ninth among regional airlines whereas ranked third by total number of international kilometers flown. It has 69 out of 150 destinations in Europe. The analysis in the report focuses on airline industry of United Kingdom. Other than British airways the major passenger airlines are Easyjet, Ryanair, Virgin Atlantic, Jet2, BMI, Monarch and Flybe. The international airline competitors include Air Frances, Delta Airlines and Emirates. Whereas, the balance sheet statement in comparison to other air lines exhibited that total current assets of British Airways was higher than other airlines like British Midland, Easy Jet and Atlantic Airlines ltd (www. British airways.com).

Number of Passengers (in millions)

Available Seat Kilometers (ASK) (in billions)

Market Share of flights from the UK and Ireland (in terms of passengers)

British Airways

33.2

149.5

16.28%

EasyJet

44.6

24.75

30.23%

Ryanair

57.7

66.5

38.77%

The share price of IAG rose by 1.2 percent which makes the share price reach 260.4 pence. There was 40 percent rise to be measured during the year of 2012 (Bloomberg.com).

Industry Structural Analysis and Financial Comparison

According to the Porter Five Forces analysis, derived that buyers have substantial power in the airline industry. They have multiple airlines available to serve them other than British airways. The cargo carriers and different passengers have gone bust or absorbed by other U.K. airlines, hence the overall condition of global aviation remained weaker recently due to the global economic downturn. The competition is very tough as ...