British Airways Analysis

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There are new opportunities and threats existing for the European players.European Airlines Industry has been experiencing changes from the last few decades. These changes were results of various factors like political, social, technological, and economic. The first section of the paper describes British Airways and the European airline industry. It discusses the key factors of the industry. It further explores the environmental factors by doing PEST analysis for the industry. Porter’s five forces model of industry competitiveness is discussed in the next subsection, followed by opportunity and threat analysis.European Airlines Industry has gone through a tough phase just after the September 11 Twin Tower Tragedy of 2001. This has not only impacted the aviation industry across the globe but had the greatest impact on the European Airlines Industry and American Airlines Industry. The air travel market has grown in the last few years considerably with the growth of the leisure industry and the number of fliers for holiday destinations. The deregulations and other governmental policies have impacted the industry as well. There are various political, social, economical and technological factors that have impacted the industry and its structure. One of the largest players of the European Airlines Industry is British Airways. British Airways is ranked at 442 in the Fortune 500 companies with revenues of $ 15,189 million (as if March 2006). It is one of the world’s most successful airlines.British Airways is one of the world’s largest international airlines, carrying in the year to March 2005 almost 36 million passengers worldwide. Also, one of the world’s longest established airlines, it has always been regarded as an industry leader. The airline’s two main operating bases are London’s two main airports, Heathrow (the world’s biggest international airport) and Gatwick. An average of 49,490 staff was employed by the Group worldwide in 2004-2005, 86 percent of them based in the UK. Unlike some of the world’s other airlines, British Airways is owned entirely by private investors – with around 240,000 shareholders, including some 50 percent of the Company’s own employees.