Challenges Faced by British Airways Due to COVID-19 and Inflation

Declaration page

Business project

Table of Contents
Table of Contents
Executive summary..........................................................................................................................4
INTRODUCTION...........................................................................................................................6
MAIN BODY...................................................................................................................................7
Challenges/ Problems faced by company....................................................................................7
Purpose of report..........................................................................................................................8
Stakeholder analysis.....................................................................................................................8
Evaluation and analysis with secondary data.............................................................................10
Recommendations and conclusion.............................................................................................17
REFERENCES..............................................................................................................................20

Executive summary
Aviation industry is a crucial part of all the sectors of businesses. COVID-19 have impacted
various sectors and aviation sector is no expectation. British Airways is one of the companies for
aviation industry. Due to the current affairs such as COVID-19 and inflation etc., British
Airways have faced various issues.
The issues involved the challenge of employee retention as the company reduced the
salaries of its employees due to rising costs of its operations. It resulted in creating other
challenge for the company which is the challenge of high employee turnover. Fuel prices are
always hiked and fluctuate from time to time. It puts further pressure on the company and
reduces its overall profitability as well. Another issue is the issue of strict rules and protocols of
companies and availability of substitutes in low prices. Other challenges involve the challenge of
financial risks, reduced customer base, competition intensity and continuous needs of
maintenance and technology up-gradation. The purpose of report involves the analysis of various
challenges which British Airways face due to the current affairs such as COVID-19. The report
will aim to provide distinct solutions to overcome these challenges.
The various stakeholders of British Airways involves employees, owners, managers,
range of customers, government and shareholders of the company. Due to the challenges faced
by the company, there is negative impact on the various stakeholders of the company. The
challenge of low employee satisfaction an higher employee turnover have damaged the
reputation of company. The allegations of employee discrimination and reduction in employee
salaries have enhanced further employee turnovers. The damaged goodwill of the company have
resulted into loss of faith in the company by the shareholders. The challenge of rising prices of
fuel, operating costs and competition have reduced the number of customers.

The critical evaluation will focus on analysis of secondary data which will be collected
from secondary resources such as e-textbooks, journals, newspapers and internet. The challenges
identified will be analysed in depth and the data will also be analysed and compared as well. It
will allow the reader to know the impact each challenge makes on the company and its business.
For example as the challenge of high charges of services from customers results in reduced
customer base, the reasons behind it will be analysed in it. The reasons might involve the easy
and cheaper availability of other services or substitutes such as public transport. Another
challenge faced by company is high employee turnover. The reasons behind high employee
turnover involves deduction in employee salaries due to increased operating costs and allegations
of employee discrimination in the workplace. Various recommendations to overcome these
challenges will also be provided. For example for the challenge of high charges of services from
customers, the use of competitive pricing and use of digitization and technology up-gradation is
recommended. Technology up-gradation ill allow the company to reduce costs of operations and
competitive providing will allow the company ton retain its existing customers within it.

INTRODUCTION
Business project refers to the activities that are intent to attain the defined business goals
and are usually aligned with the company’s business strategy. In simple words they are the
collection of tasks or activities (Eckroth, 2018). They are processes or systems in organizations.
It have a definite beginning and ending time and they are usually for long term. Organizations
design various business project in order to attain particular objectives but at the same time being
consistent with the existing business strategies of the organization. The consultancy reports are
prepared for non-specific audience in written form. The purpose of consultancy reports is to
specify problems and outline the finding related to problems. The overall consultancy reports
aims to provide the client sensible answers.
The chosen company is British Airways. British Airways is the airline of United
Kingdom which is considered as second largest carrier that is UK based. The company operates
globally. It faces various issues/problems too. The commercial challenges which are faced by
British Airways involve rising fuel costs and environmental issues. The company is also facing
turbulent economic times and employees strikes. The employee strikes have caused the company
to experience the employee dissatisfaction, plummeting profits and reduced customer base as
well. The competition in Airlines have also increased tremendously. So, it also proposes the
challenge of substitutes to British Airways as well. The other challenges faced by company
involves strict landing rules in some countries it operates in, operations and market position of
the company on a global level.
The report will analyse the challenges which are faced by British Airways, purpose and
stakeholder analysis as well. Then it will analyse and evaluate secondary data and propose some
recommendations to the problems discussed.
MAIN BODY
Challenges/ Problems faced by company
British Airways have been operating its business since 1947. The company have
introduced various changes on its management levels and employees as well from time to time.
As the company works on a global level it faces various internal and external issues. All the
challenges result into reduced market share and decreased overall profitability of the company
(Suau-Sanchez, Voltes-Dorta and Cugueró-Escofet, 2020).