Impact of Qatar Crisis on British Airways

This analysis focuses on the impact of the Qatar crisis on British Airways, with a specific emphasis on job cuts and negative effects on the organization. The coverage is objective and highlights the challenges faced by the airline due to the diplomatic crisis.

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Dynamic Aviation Environment
Toolkit
A Chosen organisation
Choose one airline/airport affected by the crisis and provide a brief justification for your
choice.
Your focus throughout the assignment will be on the organisation chosen so make sure
you can access information related to it. If you choose an airport, be aware that financial
information may be more difficult to access and this may alter the approach required in
Task E. Your justification should be brief and should focus more on the organisation’s
relevance to the diplomatic crisis under consideration rather than availability of
information (100 words max.).
British Airway is the banner transporter aircraft of the UK. Qatar airways are working in
partnership with the British airways with the motive to provide great choice and experience
to its customers (Arabali and et.al., 2017). This association was fused in 1974 and is settled
in London, England. It is the second biggest UK based transporter, based and armada size
and travellers conveyed, behind simple fly. This aircraft organization was made in 1974
after a British Airways Board was joined through the British government to administrate
the two nationalized carrier foundations, British Overseas Airways Corporation and British
European Airways and two territorial aircrafts. This firm work its business globally in
different number of country and there are approx. in excess of 50,000 workers make their
commitment in maintaining the matter of big business in more created way. In current
time, this business is facing diplomatic crisis or issue in light of the fact that due this issue
they are facing problem with Saudi Arabia, United Arab Emirates, Bahrain and Egypt
where these counties have banned the Qatar registered airplanes (Prather and Steele, 2015).
B Current trends in aviation
Based on the given data sets, determine the nature of current trends in the aviation sector.
You have three sets of data to consider, each represented by a table. These are given below:
Table 1: Passenger numbers (by year) in key airports across the Middle East
2016 2017 2018
Dubai (DXB) 83,654,250 88,242,099 89,149,387
Hamad (DOH) 37,322,843 35,867,752 35,400,000
King Abdulaziz (JED) 31,322,843 33,917,282 41,200,000
Abu Dhabi (AUH) 24,482,119 23,760,561 22,010,866
Riyadh (RUH) 23,400,000 25,038,000 26,772,525
(Source: ACI)

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Table 2: Traffic results for key airlines in Middle East, 2018
RPKs (m) % change ASKs (m) % change LF (%) Pax (m) % change
Emirates 299,967 2.7 390,582 3.6 76.8 58.6 0.2
Qatar 154,080 5.5 231,094 13.5 67.0 29.5 1.0
Etihad 84,269 -6.7 110,300 -4.1 76.4 17.8 -4.3
Saudia 68,500 8.4 102,000 8.0 67.2 34.0 8.3
Oman 25,033 14.0 31,656 7.7 79.1 9.5 10.6
(Source: Airline Business)
Table 3: Airline industry profitability and traffic, by region, 2018-20
2018 2019 2020 (Forecast)
Africa
Net post-tax profit ($
bn)
-0.1 -0.3 -2.0
- Per passenger ($) -1.09 -2.67 -42.02
RPK growth (%) 8.0% 4.5% -58.5%
ASK growth (%) 7.5% 4.2% -50.4%
Asia-Pacific
Net post-tax profit ($
bn)
6.1 4.9 -29.0
- Per passenger ($) 3.74 2.92 -30.09
RPK growth (%) 7.0% 4.8% -53.8%
ASK growth (%) 6.8% 4.5% -39.2%
Middle East
Net post-tax profit ($
bn)
-1.5 -1.5 -4.8
- Per passenger ($) -6.69 -6.75 -37.03
RPK growth (%) 7.0% 2.3% -56.1%
ASK growth (%) 4.9% 0.1% -46.1%
Latin America
Net post-tax profit ($
bn)
-0.8 -0.7 -4.0
- Per passenger ($) -2.78 -2.24 -27.83
RPK growth (%) 8.0% 4.1% -57.4%
ASK growth (%) 7.5% 3.0% -43.3%
N America
Net post-tax profit ($
bn)
14.5 17.4 -23.1
- Per passenger ($) 14.66 16.95 -38.95
RPK growth (%) 3.5% 3.9% -52.6%
ASK growth (%) 3.4% 2.9% -35.2%
Europe
Net post-tax profit ($
bn)
9.1 6.5 -21.5

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- Per passenger ($) 7.94 5.42 -34.39
RPK growth (%) 6.0% 4.3% -56.4%
ASK growth (%) 5.5% 3.6% -42.9%
(Source: IATA)
Note: % change represents the change between the figures for the year shown and the
ones for the year previously, expressed as a percentage of the previous year’s figure.
Higher values represent stronger growth; negative values show a decline.
So, e.g. in Table 2, the % change in the RPK figure for Emirates is given as 2.7%. This
means that RPKs grew between 2017 and 2018 by 2.7%. In Table 3, RPK growth for the
Middle East in 2018 was 7.0%. This tells us that that across the region, RPKs grew by this
amount between 2017 and 2018.
Consider each set of data and comment on the trends depicted (250 words max.)
From the above characterized chart and visual correspondence or table 1, it very well may
be presumed that in 2017 the amplification and development in number of travelers in
Dubai in contrast with last 2016 as in 2016 the quantity of travelers is 83,654, 250 and in
2017 the figure is 88,242,099. Further, in 2019, it is developing, and the number is
89,149,387. Additionally, in King Abdulziz and Riyadh, the quantity of travelers is created
in contrast with their past 2016 years to 2017 and 2018. In any case, it tends to be broke
down that in Hamad and Abu Dubai, the quantity of travelers is diminished as contrast with
2016 and afterward 2017 and less in 2018.
Structure the table 2, it tends to be viewed as that the in Middle East, 2018, the RPKs level
of Emirates is developed by 2.7% from 2017. The level of ASK is developed by 3.6%.
Essentially, in Qatar, Saudia and Oman, the level of RPKs and ASKs is expanded by 5.5,
8.4, 14 and 13.5. 8 and 7.7% individually. Though in Etihad, the RPKs rate is diminished
and it is - 6.7 and the ASKs is - 4.1.
Structure the table 3, it tends to be distinguished that in Africa district, RPKs and ASKs
development rate is 8 and 4.5% and 7.5 and 4.2% separately and in 2020, the gauge of
them is - 58.5% and - 50.4 % individually. Essentially, in Asia Pacific district, N America
is created in type of RPKs and ASKs rates while in Middle East, Latin America and
Europe, the rates of RPKs and ASKs is limited.
C Definitional analysis
Carry out a definitional analysis of the term ‘geopolitical’ using 3 appropriate sources.
(The maximum number of words for Task C is 250.)
Firstly, find 3 appropriate sources to carry out this analysis. Present the details of each

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source according to UCB referencing guidelines. (Remember, the guidelines vary
depending on the nature of the source.)
Secondly, complete the table below to show 3 definitions of ‘geopolitical’ (one from each
source) and some key points relating to the term.
Author (year) Definition Key points
Daniel H. Deudney, 2020 Geographic affairs is the
examination of the
geographic effects on
power connections in
worldwide relations. The
word international relations
was initially begat through
the Swedish political
specialist Rudolf Kjellen
about the turn of the
twentieth century, and it use
spread all through Europe
in the Period among World
Wars I and second and
came into universally use
during the last mentioned.
In contemporary debilitate,
international relations has
been generally utilized in
light of the fact that a free
equivalent word for
worldwide legislative
issues.
Geographic is the assurance
of the geographic effects
which is looked by a
business.
Andreas Haggman, 2019 The way to comprehension
and moderating
international dangers is an
all encompassing
perspective on the danger
scene. By deciding working
references by different focal
points, for example,
singular, business strength,
venture, digital, notoriety
and climate and
environment a whole range
It is a primary affirmation
of relieving international
danger which is looked by
business of different areas
like avionics and a lot more
just as impacted by it in
ominous way (Quilty,
2018).
Source 1:

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of interrelated dangers
become noticeable. Flight is
an industry innately
presented to international
danger as it is so noticeable.
Airplane bungle public
airspace, air terminals are
focused by troublesome and
ruinous and air travel is
seen as a non-green travel
choice (Wittmer, Bieger
and Müller, 2011).
Diego Solis, 2015 Geographic focuses on
political force associated
with geographic space.
Carriers are specialists of
international force. They
are specialists of
international force, as they
have the power to turn into
the scaffold among the
centre peripheries of the
globe.
This geographic viewpoint
connotes as the
topographical complexities
reason for business of
carrier area influence. For
instance, diplomatic crisis.
And finally, construct your own definition of ‘geopolitical’. Present this below:
Geographic alludes to the term topographical dangers and dangers which looked by
business areas like Aviation and some more. Reason for these complexities the matter of
organizations is influenced in horrible way in term of deals, productivity and piece of the
pie and so on For instance, diplomatic crisis is one of the main point of contention reason
for which business of British Airline influence in pessimistic term in light of the fact that in
emergency of crisis circumstance entire business is facing difficulties and individuals didn't
travel from Saudi Arabia, Egypt, Bahrain, etc so the deals and income of structure
influence in negative way . Alongside this, the representative of this endeavor likewise
influenced in negative way in term of losing their positions.
D Media Analysis
Carry out a media analysis of the organisation using a range of suitable sources to
determine how it has been affected by the crisis.
The purpose of this analysis is to determine how your chosen organisation has been
affected by the crisis according to the media selected. Find two sources to use as the
basis of the analysis. Find a range of source types as coverage will vary across different

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media. Important questions to ask yourself here include:
 Coverage – what does this tell you about the crisis and the organisation
concerned?
 Bias – is the coverage subjective (opinion based) or objective (factual)?
 How has the organisation been affected by the crisis?
The overall word limit for this task is 600 words max.
Firstly, complete the table below to determine the nature of the coverage of the
organisation:
Source & year Type of media Headline Coverage Evidence of
bias?
News sites,
2017
Article Qatar Crisis British Airways
to cut more
than 11,000
jobs after its
ban with with
Saudi Arabia,
United Arab
Emirates,
Bahrain and
Egypt.
British Airways
might be
compelled to
cut in excess of
a fourth of its
labor force as
the diplomatic
crisis negatively
affects one
Europe' biggest
aircrafts.
Reason for this
issue, the matter
of separate
organization
influence in
negative way in
term of
influencing its
religion,
cultural and
income. The
administration
of particular
endeavor
likewise cut the
work of its
approx. 12,000
individuals on
the grounds that
the business
isn't running
because of
circumstance of
this issue and so
on.

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News sites,
2017
Article Gulf crisis and
its reasons.
British
Airways: A
breakdown in
trust?
British airways
was once
observed as a
public boss, an
intense image
of the country's
business ability
and as the
aircraft itself
puts it-of
ageless British
qualities and
current British
qualities. In
current time,
the firm is
managing and
looking with
diplomatic
issues and
battling to adapt
to the colossal
monetary
impact of this
crisis, its
relationship
with the public
authority
evidently broke
and in struggle
with its own
specialists.
There is no
doubt that the
separate , like
different
aircrafts, has
been
significantly
impacted
through this
situation and
conclusion of
brooders related
with the
separation.
Because of this
issue, the whole
firm effect in
negative way in

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term of
worker's
turnover,
decrease in
client base and
decrement in
productivity.
Secondly, explain how the organisation has been affected by the crisis?
Due to emergency of diplomatic crisis influences the whole business in negative way.
British airways, which is claimed through global united Airlines Group, be that as it may,
the firm will anticipate working more trips on fuel successful and current airplane
considering its new A350s and 787s. The air transporter association likewise saw that it
expects airplane, for example, A350s and A787s will help with achieving net zero carbon
emanations by 2050 . An influx of rebuilding actuated by the infection flare-up is hitting
aircrafts and modern organizations transversely the globe. Be that as it may, the quick
spread of these crisis with other Muslim countries and resulting travel limitations all
around these countries made the carrier change its arrangements and unfortunately the
airplane will presently be going with respect to its last resting place. Because of individual
emergency, the firm lay off its workers and cuts off its number of flights reason for which,
the matter of whole endeavor influence in ominous way. The profitability of the
organization impacted in negative term, its deals is diminished and furthermore influenced
the incomes and client base in apathetic way (Fernandes and Pacheco, 2010).

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E Performance of the organisation
Analyse the performance of the organisation chosen over the last 3 years using figures
relating to categories such as: passenger numbers; flight movements; customer
satisfaction; revenue, costs and profitability.
You will need to find figures relating to the organisation’s performance in the above
categories. Financial information such as revenue, costs and profitability is easily
obtained for airlines. Annual reports are the best place to look. Several airports,
particularly those that are government owned will not necessarily publish financial
results. If your chosen organisation is an airport, your focus is more likely to be on figures
related to passenger numbers, flight movements and customer satisfaction.
Your analysis in this task will be enhanced by the use of charts, tables and graphs. Better
to create these yourself using Excel (or similar).
This task should be completed within 750 words max.
IAG, the proprietor of British Airways, is to raise €2.75 bn to reinforce its monetary record
subsequent to revealing a record misfortune as the Covid pandemic keeps on pounding the
movement market (Zaharia and Pietreanu, 2018). IAG, which likewise possesses Iberia and
Aer Lingues, announced lost €4.2 bn n the primary portion of the year as the traveler
numbers imploded. The group made a €1.1 bn benefit in the principal half of a year ago.
The group constantly that saw traveler figures fell by 98% in the subsequent quarter, has
just seen it is to reduce 12,000 responsibilities to limit expenses. The impact of movement
and fringe limitations in fog countries implied it was simply ready to run a skeleton
traveler plan for the subsequent quarter, just 5% of the limit contrasted and a similar
quarter a year ago. Alongside this, the gathering is requesting that industrialists back a
€2.75 bn value rising and has just made sure about the help of its biggest investor, Qatar
Airways. The half year working misfortune closed €2.2 bn of uncommon expenses
identifying with the withdrawal from the workforce of BA's Boeing 747s and Iberia's
Airbus A 340s and expenses partner to its fuel-supporting system. The particular gathering
that neglected to see a sought after recuperation in air travel in July, seen it is making
arrangements for an advancement in traveller numbers however anticipates that limit
should be somewhere near 74% in the second from last quarter in contrast with 2019 and
somewhere near 46% in the final quarter. In 2017 the all out income of the particular
organization is £13,021 million, number of travellers 46.8 million. The Group shared
massive results, dealing with the advancement in income per ASK which was refined a
year ago. Benefit amplified 6.1% to £13,021m. The overall revenues dependent on optional
spending that is dependent on the capacity of the worldwide money related framework.
English Airways keeps on putting resources into creating shopper experience, cost
intensity, sheltered and solid tasks, capital adequacy and creating labourers. 2018 was the
second usage year of the vital arrangement reported in 2016, protested at additional
fortifying the gathering's sold monetary establishments. Though in 2018, traveller numbers
amplified 3.5% to 46.8 million out of 2018 (Malighetti and et.al., 2011). The specific
endeavor remains focused on creating buyer experience and has broadened the speculation
program past the £4.5 billion to more than £6.5billion throughout the following five years.
In 2018, the account and capital of the association was £1,218 million and the endeavor
additionally conveyed 13 new airplane, taking the complete number of Boeing 787s to 30,
A320neos to seven and one A321neo. Alongside this, the traveller and target crowds of the
firm likewise reacted decidedly to new Boeing 787s and others. In 2018, BA likewise
worked a larger number of trips than whenever in the most recent decade, giving

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purchasers more choice. Approx. 76 trips of the firm withdrew dependably yet after year-a
year there is emerging a decrement reason for number of reasons. The gathering keeps on
focusing on putting resources into innovation that creates operational viability. In 2020, the
matter of separate influenced in negative way because of diplomatic issues. The effect and
length of diplomatic issue, IAG isn't as of now offering beneficial direction for 2020. In
any case, the gathering expects its working misfortune in the subsequent quarter to be
essentially more regrettable than in the principal quarter, given the considerable decrease in
voyager limit and traffic and regardless of some alleviation on labourers costs from
government work maintenance and compensation uphold plan and plans (Malighetti and
et.al., 2011).
F Response of the organisation to the crisis
F. Determine the effectiveness of the organisation in response to the Qatar diplomatic
crisis.
In this task, you are determining how effectively the organisation responded to the crisis.
You should draw upon the findings of the above tasks as these will provide evidence for
your conclusions. Organisations respond differently to events from the wider (macro)
environment and you should provide detail of the approaches taken. E.g. changes may
have been made to operations (e.g. routes and schedules); greater emphasis may have
been placed on cargo; marketing strategies may have been adapted. Finish by offering a
judgement on how successful the measures taken were in dealing with crisis. Complete
this task within 500 words max.
The little oil and gas rich Gulf territory of Qatar has been end by a portion of its amazing
Arab neighbors over its help for illegal intimidation. Qatar wouldn't conform to an
underlying rundown of 13 requests, saying it would not consent to any measures that
imperiled its power or contradicts global law. The emirate has now been told by its
neighbors that they need it to acknowledge six expansive standards on battling fanaticism
and psychological oppression.
Qatar has practiced a yearning international strategy with various needs to its neighbors yet
there are essentially two central questions which have rankled them lately.
1.Qatar is supporting Islamic gatherings. Qatar admits that it has offered help to a few, for
example, Muslim Brotherhood, however denies helping aggressor bunches identified with
al-Qaeda or Islamic State (IS).
2.Qatar's relations with Iran, in which it shares the world's biggest gas field. The Shia
Muslim force is Sunni Muslim-managed Saudi Arabia's primary local opponent.
There are some Arabic nations like Saudi Arabia, the United Arab Emirates (UAE) and
Bahrain which cuts their connections with Qatar on fifth June. These nations additionally
gave season of 14 days to Qatari residents leave their region and restricted their own
residents from going to or living in Qatar (Pabedinskaitė and Akstinaitė, 2014).
One of the Gulf nation, Egypt additionally cut discretionary ties yet didn't force limitations
on its 180,000 residents living in Qatar.

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Indeed, Saudi Arabia, the UAE, Bahrain and Egypt shut their airspace to Qatari airplane,
and said unfamiliar aircrafts would need to look for consent for overflights to and from
Qatar (Stolzer, Halford and Goglia, 2011).
Kuwait and Oman are two nations, didn't cut the connections with Qatar.
Effect of Crisis-
Qatar is essentially relying upon imports via land and ocean for the fundamental necessities
of its populace (2.7 million), and about 40% of its food came in through the land fringe
with Saudi Arabia.
First and foremost, store racks in Doha were run unavailable of fundamental supplies as
occupants hurried to load up however the accumulating rapidly vanish after Turkey and
Iran began sending food via air and ocean.
Doha's Hamad International Airport has been far calmer than typical. Qatar Airways, the
public transporter, reported the cancelation of trips to 18 territorial urban communities and
furthermore reroute those to different objections on account of limitations in airspace by its
neighbor nations (White and et.al., 2013).
Qatar's securities exchange lost about 10%, about $15bn (£12bn), in market an incentive in
the initial a month of the emergency. While, the financial exchange has since recuperated
6% of its pre-emergency esteem. Fares of melted flammable gas have additionally so far
not been influenced and the emirate's account serve says Qatar has numerous assets to
spare its economy and cash (Qatar emergency: What you have to know. 2017).
Organizations which were taking a shot at new arenas and foundation anticipates for the
2022 football World Cup have then needed to make sure about new hotspots for building
materials. Transportation costs seen increase ten times, yet Qatar has continue dispatching
payload through Oman to get around the limitations on admittance to ports in the UAE.

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References
Provide a list of references of the sources used throughout this toolkit
according to UCB standards.
Arabali, P. and et.al., 2017. Decision-making guideline for preservation of flexible
pavements in general aviation airport management. Journal of Transportation
Engineering, Part B: Pavements. 143(2). p.04017006.
Prather, C.D. and Steele, R.N., 2015. Airport management. Aviation Supplies &
Academics, Incorporated.
Quilty, S.M., 2018. Airport management program and curriculum issues at 2-and 4-year
aviation colleges and universities. The Collegiate Aviation Review
International. 22(1).
Wittmer, A., Bieger, T. and Müller, R. eds., 2011. Aviation systems: management of the
integrated aviation value chain. Springer Science & Business Media.
Fernandes, E. and Pacheco, R.R., 2010. A quality approach to airport management. Quality
& Quantity. 44(3). pp.551-564.
Zaharia, S.E. and Pietreanu, C.V., 2018. Challenges in airport digital
transformation. Transportation research procedia, 35, pp.90-99.
Malighetti, P. and et.al., 2011. Value determinants in the aviation industry. Transportation
Research Part E: Logistics and Transportation Review, 47(3), pp.359-370.
Malighetti, P. and et.al., 2011. Value determinants in the aviation industry. Transportation
Research Part E: Logistics and Transportation Review. 47(3). pp.359-370.
Pabedinskaitė, A. and Akstinaitė, V., 2014. Evaluation of the airport service
quality. Procedia-Social and Behavioral Sciences, 110, pp.398-409.
White, T. and et.al., 2013. System and method for airport surface management. U.S. Patent
8,554,457.
Stolzer, A.J., Halford, C.D. and Goglia, J.J. eds., 2011. Implementing safety management
systems in aviation. Ashgate Publishing, Ltd..
Online
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Airlines as Geopolitical Agents of Power. 2015. [Online]. Available Through: <
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<https://www.bbc.com/news/business-53023563>.
Available Through: <https://www.iairgroup.com/~/media/Files/I/IAG/annual-reports/ba/en/
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https://www.bbc.com/news/world-middle-east-40173757>.

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