British Airways operates from the two major airports of the United Kingdom, Heathrow and Gatwick. This airline services is also well known for the excellent service that it provides and the high quality of operations that it consistently maintains over the years. Over 35 million passengers travel with British Airways in a year (Evans et al, 2003). With a variety of options like business, first, premium and economy combined with a selection of entertainment options, it is one of the favorite airlines of flyers across the globe. The airline has the tagline “The Worlds Favorite Airline”. This study takes a detailed look at how strategic management works in British Airways and evaluates its performance.
British Airways is a part of the aviation sector. The wide presence of numerous airline operators indicates that aviation is indeed a very competitive sector. With increase in global travel rates, aviation sector has now become more prominent than ever before. The increase in travel can be attributed to different reasons such as increase in business travelers across continents, travel for personal work as well as travel for tourism. Aviation industry has seen several revolutions in the past and one of the major ones was the introduction of low cost carriers (Thompson, 2001b). British airways also entered this foray by offering low cost services in selected sectors. However, by maintaining the high quality of its first class and business class service, the airline has been able to capture the elite audience also. In recent times, the high price of aviation turbine fuel has been a challenge that the entire aviation sector has been facing. Such a very high price of aviation fuel has had an impact on the pricing models of the aviation sector so that the profitability can be improved.
Aviation is a broad sector that is a part of multiple diverse sectors under the purview of transportation. Within the transportation sector, one of the dimensions where