Business Consultancy Report – British Airways PDF

Business Consultancy Report – British Airways
Table of Contents
Executive Summary.................................................................................................................................1
1.0. Introduction.................................................................................................................................2
2.0. Challenges being faced by British Airways.................................................................................3
3.0. Purpose of the report....................................................................................................................4
4.0. The impact of research on stakeholders.......................................................................................4
4.1. Impact of the report on stakeholders............................................................................................6
5.0. Evaluation and analysis of secondary data...................................................................................6
5.1. Critical Evaluation.....................................................................................................................11
6.0. Recommendations and conclusions...........................................................................................11
6.1. References.................................................................................................................................13
Executive Summary
British airways happens to be one of the best and leading airlines in the UK, and this consultation
study is carried out on their behalf. In this study, we will be focusing more on identifying the
issues the airline is facing as well as identifying the potential issues they are likely to face in
future due to the current events that will be mentioned below. Most of the problems that most
airlines faces is due to the COVID 19 outbreak that took the world by surprise. The pandemic
didn’t just stop in one country, it circulated around the world and affected almost all businesses
and companies. For some companies, the pandemic benefitted them, but to some other
companies, it had a negative effect and the airlines were not left out of the negative effects.
According to further research UK faced a very big challenge which was job cut of about 12000
individuals, the number of business travel reduced, movements were restricted, quarantine was
enforced by the government, markets were disorganized, there was a decline in revenue, prices in
commodities increased and there was also a fluctuation in foreign currency.
All of these challenges was caused by the COVID 19 pandemic. Airplanes were grounded and
not allowed to move, in fact there was a global lockdown so travelling was never an option and
this caused a lot of setback for most airways. The possible challenge that might be faced in future
includes the rationalization of corporate travel as a result of working from home routine, virtual
business meetings, and market disorientation which is as a result of the policies and regulations
of the government which may jeopardize the tension of competition and the possibility of a third

wave of a new mutant virus which is already in circulation. However, with the recent happenings
and the presence of Omicron which is another wave of COVID 19, changes in travel pattern
might occur, fuel prices will increase, and even poor revenue production, as well as inadequate
liquidity. The main objective of this paper is to identify these challenges and explain how it will
affect the stakeholders of British Airways and also make further recommendations on how the
challenges will be solved. Furthermore, this report will also let the stakeholders be informed
about the challenges faced by the organization and the steps to be taken to overcome the
challenges. They will also have a clear picture of how the pandemic or epidemic has and will
impact British Airways and also assist them in figuring out where they stand in the market as
well as the Airline.
Following are the conclusions reached after a thorough examination of secondary data gathered
from various sources.
 In the whole year of 2020, the corporation is expected to lose £7 billion.
 Revenue from passengers fell by 75%, from £22.5 billion to £5.5 billion.
 From £13.3 million in 2019, global revenue declined to £3.9 million in 2020.
 In the four quarters of 2020, traffic and capacity were decreased to 12330 from 47710 in
2019.
 Overall capacity was down 65.8%, and the number of passengers was down 74.3 percent
to 12.3 million.
To help British Airways overcome these obstacles and improve its performance, the company
should offer customers more flexibility when booking tickets, provide a personal protection
package (mask, face shield, sanitizer, gloves), readjust its terms with suppliers, increase cargo
flights, provide various forms of support to employees and their families, and finally re-engineer
their business processes to reflect current and emerging trends. These are a few suggestions that
could assist BA in achieving its goals.
1.0. Introduction
The following is a business consulting report for British Airways that includes an understanding
of the company, difficulties or challenges it is encountering, and solutions to those issues. The
research will identify critical dangers to British Airways and recommend how they should
prepare a backup plan for each of them in order to overcome any obstacles that may develop in
the future. British Airways has been in the air travel business since 1947 and is a well-known
global brand. The business is a major player in the airline industry. The company has gone
through enormous changes, made decent judgments at the management level that were viewed as
scandalous, and has been the object of mass union movements by its employees at times. (2019,
Gupta et al.)

Commercial issues such as a tumultuous severe recession, rising fuel costs, environmental
concerns, replacements, and staff strike calls have resulted in a shrinking customer base,
employee dissatisfaction, and declining profit margins for British Airways. The nationwide
lockdown imposed as a precaution against the COVID-19 pandemic has brought with it a slew of
new issues, including the loss of 12000 jobs, the largest number in the United Kingdom.
Quarantine limitations also resulted in a decrease in business or commercial travel, damaging the
company's economy.
Furthermore, it has been through industry-specific time constraints for settling disputes. The
company faced a number of strategic challenges, which the study analyzes and diagnoses, as well
as reports on how decisions impacted the organization, its employees, the environment, and its
position in the air travel industry. The readers will be able to see how these issues relate to the
company's internal and external stakeholders, as well as how they are affected. Finally, using
secondary data gathered from various sources, the report will analyze and evaluate British
Airways' performance over time. (K. Moyer, 1996).
2.0. Challenges being faced by British Airways
British Airways has been in operation for a long time, and its management decisions are always
changing in response to the needs of the environment, time, global trends, and the company's
internal needs. The company's objectives are global. Although it faces a variety of internal and
external commercial challenges relating to the company's market position, dwindling customer
numbers, operations, cheaper Asian competitors, employee retention, domestic and international
market competition, environmental issues, countries' stringent lending rules, and, most
importantly, global current events. Profit margins and market share have both decreased as a
result of these problems.
The corporation has experienced a new set of issues as a result of the COVID-19 pandemic's
recent developments involves a massive employment decrease of 12000 jobs, which has been
dubbed the "biggest in history." United Kingdom is a country in Europe. As a control measure,
the country's rules and regulations, such as Quarantine limitations, travel bans, social isolation,
government policy shifts, and other constraints. Several additional country people entering the
UK have had a negative impact on British Airways' operations as a result of the epidemic, there
was a worldwide recession, and all countries were affected. When it comes to forbidden a
significant foreign currency and commodities price, as well as travel restrictions and countries
being placed under lockdown variation has been observed. Most business and leisure travel has
been impacted by the global economic downturn has come to a complete stop. The issues do not
stop there; fuel prices have also increased, making things even worse. It will be more difficult for
the transportation industry to operate (Bas and Sivaprasad, 2020).

 British Airways had to remove 12000 positions due to budget cuts. As a result of the
extensive reduction, Due to the epidemic and the company's restricted budget for
functional activities, they had to make some difficult decisions. 6000 employees
volunteered for voluntary redundancy as a result of the budget constraints. (Hamawandy
et al. 2020)
 Fall in Demand – The epidemic has had a significant impact on air travel, according to
British Airways. In years, demand would not be able to recover. The majority of their
passengers are not being carried on the planes. Only flying 20% of the time at the
moment, and 20 million pounds are being burned through each day (Hamawandy and
colleagues, 2021).
 Business Travel — Unlike most of its competitors, British Airways is heavily involved in
the business travel sector, which is likely to recover far more slowly than leisure travel,
according to most analysts. Despite the government's altering views on quarantine, the
lucrative transatlantic market remains closed, with foreigners being prohibited from
entering the UK. (Hamawandy and colleagues, 2021).
 Quarantine Restrictions — In addition to business travel, the government's 14-day
quarantine regulation is slamming the brakes on air travel recovery. (Hamawandy and
colleagues, 2021).
 Possible Future Issues – The COVID-19 pandemic's aftermath has been unusual; this
significant disaster, as well as its economic repercussions, has presented a number of
potential future challenges, some of which are described below –

I. Corporate travel is becoming more rational as employees adopt new technologies, virtual
business and work-from-home practices, as well as the frequency of business travel
may be severely reduced (Macilree and Duval, 2020).
II. Market disorientation - Government policies and regulations in the country have the
potential to cause market disorientation, potential to exacerbate market disorientation and
threaten competitive tension, this would have a long-term influence on the cost and
variety of flyers available. (Macilree and Duval, 2020).
III. The third wave has seen a gradual increase in the number of countries participating.
British Airways' misery will continue now that it has been included to the 'red list' of
restricted travel. (Adrienne et al., 2020).
IV. Others – Other issues that may arise in the near future as a result of current events
include: fuel price increases, changes in usual travel routes, fear of intimacy, negative
impact on investments and asset rebalancing, weak demand outlook, poor revenues, high
asset servicing costs, and low liquidity. (Adrienne et al., 2020).

3.0. Purpose of the report
The goal of the report is to highlight the issues that the United Kingdom's economy is facing.
British Airways, one of the world's leading airlines, as well as issues that may occur in the near
future as a result of current events, i.e., the epidemic of COVID-19 These issues are being
investigated because they have historically had a negative impact on revenue of the airlines, on a
scale never before seen in their entire life cycle. The investigation would result in a report
shedding light on the underlying concerns, such as a drop in demand, employment cutbacks,
reduced business travel, and a scarcity of skilled workers, and assist the organization in
examining them more closely and developing ways to address them.
4.0. The impact of research on stakeholders
Stakeholders are persons or groups of individuals who are interested in how a company operates
and who have the potential to influence how the company operates. They have an impact on the
operations of the company by influencing decision-making processes. Stakeholders have varied
degrees of influencing power within and outside the company. Employees, suppliers, society,
customers, owners, shareholders, business partners, and the government are all examples of
stakeholders. Profitability and successful business operations are determined by the
organization's customers. Customer happiness is critical to the company's growth and
profitability. Although, as they adopt policies and regulations from time to time, key commercial
activities are dependent on the labor, suppliers, law, and government policies. (A. Karami, 2017).
Customers, government officials, staff, employees, shareholders, and other stakeholders are
among British Airways' stakeholders and it can be categorized into both Internal and external
stakeholders which are the two types of stakeholders.
i. Owners, employees, shareholders, suppliers, and the government are all internal stakeholders.
ii. Customers, rivals, and society are examples of external stakeholders.
Shareholders - British Airways has frequent shareholder meetings and conducts discussion
sessions to keep employees informed on corporate activities such as decision-making and other
important problems to keep stakeholders satisfied with organizational performance, in addition to
giving financial information. The stockholders of British Airways are offered an effective return
on investment through the activities of the company (Brown (2019).
Employees of British Airways include flight crews, maintenance, pilots, customer service,
engineers, and others. British Airways takes numerous initiatives to keep them satisfied, such as
regular training to improve performance efficiency and maintaining diversity to ensure effective
passenger services. To keep employees motivated, financial and motivational incentives such as
effective salary packages, employee discounts, training, and seminars are provided (Brown,
2019).

Government Authorities - Because British Airways is required to obey different government
rules and regulations, they are an important stakeholder. To comply with government authorities
and their requirements, the organization has a legal department (Brown, 2019).
Customers - British Airways' functional and operational activities are built around the needs and
demands of its customers. They strive to provide relevant and high-quality services by
implementing a variety of measures on a regular basis, which is followed by regular feedback
collecting. The company's profitability is dependent on its customers, so it makes offers and
discounts to entice more customers (Brown, 2019).
Society – British Airways places a high priority on corporate social responsibility (CSR),
ensuring that their operations do not harm the environment and that a portion of their profits is
shared with the community, as they believe that "one must give from where one receives" and
that they are fulfilling their ethical responsibility. The corporation also has local communities
and pressure organizations as stakeholders (Brown, 2019).
Competitors - British Airways' competitors include Easy Jet, Jet 2, Virgin, and others, and it is
one of the largest airlines in the United Kingdom by turnover (Brown, 2019)
Suppliers - British Airways' key stakeholders are its suppliers. Its two primary suppliers are
Boeing and Airbus. Because many clients choose to purchase their travel tickets online through
various websites, British Airways relies on a number of online travel agencies. (Brown, 2019).
4.1. Impact of the report on stakeholders
This report has impacted the stakeholders in several ways. First, it has opened the eyes of
the stakeholders to realize the challenges that British airline is passing through.
Stakeholders are also aware of the damage that the pandemic has and even the third wave
will have on the airline and how there is likely to be a drop in both finances and demands
for airways. The stakeholders need to be at alert because even the governmental policy on
the pandemic could affect them in several ways. Furthermore,
i. Employees of British Airways were negatively impacted by employment cuts; many
were laid off, and those who remained felt their jobs were in jeopardy.
ii. A drop in demand and a decrease in the rate of business travel resulted in lower profit
margins, which harmed owners and, in turn, suppliers and employees.
iii. Quarantine limitations rules established and executed by the country's government authorities
resulted in travel bans, which impacted all stakeholders.
iv. As a result of employment cuts, lower profit margins, and business losses, British Airways'
market share value plummeted, impacting the company's shareholders and owners.

v. A drop in the number of passengers has a negative impact on owners, employees, and
shareholders, but it has a positive impact on competitors and customers, since they have more
options to choose from.
5.0. Evaluation and analysis of secondary data
British Airways has faced and conquered numerous problems throughout its history. Every firm
in any field goes through numerous phases in its life cycle when it faces unfathomable problems;
these trying times help a company learn, develop, and grow. While research and analysis can
sometimes identify the challenges that a company will encounter in the near future, there are
instances when an unforeseeable factor enters the market and adversely affects enterprises in
ways that no one could have predicted or prepared for. For example, when the coronavirus
spread globally in 2019, no one saw it coming and was unprepared, causing a massive disruption
in the global business.
Air transport is one of the industries that has been hardest damaged by the pandemic. Because
human contact was the most rapid means of illness transmission, all countries closed their
borders to strangers, thereby halting international travel. Domestic travel was also forbidden by
the country's governments, which adopted rules prohibiting all types of travel within the country.
Air travel is the most popular means of transportation in the United Kingdom. As a result of
government regulations and policies, the airline industry took the brunt of the damage. British
Airways is the country's major airline, and it is currently undergoing its worst crisis in its history.
We'll also go through several sections, as well as secondary data gathered from various sources,
and how they relate to the report's goal (Boon, 2020).
British Airways' parent company, IAG, has reported that the company has suffered a loss for the
entire year. £7 billion ($8.5 billion) in the year up to December 31, 2020, which is the largest
amount in company history. The COVID-19 crisis caused the company's revenue to plummet,
resulting in this loss. Apart from that, dedicated freight carriers, numerous airlines had to ground
their fleets to avoid flying empty aircraft swaths. Although British Airways doubled the number
of cargo-only flights, it was not enough to salvage the airline. The airline group's financial results
were poor in 2020, and British Airways and other airlines had a bad year as well as the world's
airlines. After tax, the company reported a loss of £6.9 billion ($8.4 billion). In comparison to the
previous year, the profit was £1.7 billion ($2.1 billion). The loss was caused by a significant drop
in passenger revenue, as not flying passengers shuts off a critical revenue stream. Passenger
revenue is expected to plummet by 75% in 2020, from £22.5 billion ($27.2 billion) to £5.5
billion ($6.7 billion). (Boon, 2020).
Several airlines, including British Airways, reduced their workforce in 2020. During the year, 84
planes departed the fleet, while 34 new planes arrived. The fleet was reduced by 50 aircraft, with
47 aircraft retiring as well. In 2020, 34 new aircraft were delivered, a decrease from 45 the

previous year. In comparison to 2019, the total fleet of the airline group has decreased by 10% to
533 aircraft, with more retirements than deliveries.
Sean Doyle, British Airways' Chief Executive Officer, stated that the airline had never
encountered a problem of this magnitude in its 100-year history. Due to changing worldwide
travel, quarantine regulations, and a country-wide shutdown in the United Kingdom, the
corporation was compelled to curtail its operations. In the year 2020, British Airway's flying
schedule decreased by 66 percent as compared to 2019 (Boon, 2020).
Worldwide revenue
Figure1: worldwide revenue of British Airways
Image source: https://www.statista.com/statistics/264296/british-airways-worldwide-revenues-
since-2006/
British Airways has grown its operations globally throughout the years, boosting its income.
In the previous decade, though, there have been ups and downs. In the years 2017, 2018, and
2019, revenue increased by one-and-a-half times when compared to 2010. British Airways had a
record-breaking year in 2019, with a global revenue of £13,290 million. However, this did not
last long, as the world was struck by the coronavirus epidemic. The airlines faced a massive
negative impact on their business as a result of precautionary measures to control the spread of
infection, such as restrictions on movement across the country and globally, the country's borders
being locked up for foreigners, quarantine, countrywide lockdown, and the prohibition on travel.
Within a year, the company's revenues had decreased to £3,947 million, a drop of over £9
million. This has been a historically significant drop in the stock market. The United States is
one of British Airlines' largest markets, and the number of services operated there has had a
significant impact on revenues for the year. Due to travel restrictions and border closures, travel
from the United Kingdom to the United States has been suspended since March 2020.

Traffic and capacity
Figure 2: traffic and capacity
Image source: https://www.statista.com/statistics/309349/british-airways-uk-passenger-numbers/
The graph above depicts the quarters in which British Airways passengers were transported in
2019 and 2020 are the years in question. In the first quarter of 2019, British Airways carried
10472 people, and passengers. In 2020, 8548 people were carried. There was a decrease in
passengers in 1924. In the second quarter, passengers were transported by British Airways
carried 12643 passengers in 2019, and 180 passengers in 2020. This was a significant reversal.
Due to the travel ban for the majority of the customers, British Airways has never had to deal
with more than 12643 people in a year. Passengers transported in 2019 were 13042 in the third
quarter, while passengers carried in 2020 will be 13042. The year was 1927. The travel ban was
repealed in quarter three, and a 14-day quarantine period was imposed and the UK government
adopted a policy for passengers coming from foreign countries. British airlines carried 11553
passengers in the fourth quarter of 2019 and 1630 passengers in the fourth quarter of 2020.
The Global Covid-19 Virus Pandemic was to blame for this precipitous drop. As the Covid-19
Pandemic spread over the world, the United Kingdom instituted a countrywide lockdown and

travel restrictions, as well as quarantine and other measures. The UK government implemented a
quarantine policy on the 3rd of July 2020, requiring all visitors to the UK to quarantine/self-
isolate for 14 days. As the virus spread, the UK government restricted travel from the majority of
countries to the UK, resulting in a significant drop in passenger numbers for British Airways.
The British Airways company's sales also fell to £3,947 million. Within a year, the company lost
£9 million. British Airways also expects to remove up to 12,000 jobs from its 42,000-strong
workforce due to a reduction in business caused by the coronavirus outbreak. Until air travel
demand rebounded to levels seen in 2019, the firm stated it needed to execute a substantial
"restructuring and redundancy program." (IAG, 2021).
Continuing operations revenue
Figure 3: continuous operations of British airways
Image source: https://simpleflying.com/iag-cuts-costs-9620-leave-ba/
The overall capacity fell by 65.8% in 2020, while the number of passengers carried fell by 74.3
percent to 12.3 million. Government-imposed travel restrictions as a result of the virus's global
spread, particularly from late February 2020 and beyond, led in a considerable decline in demand
across all areas. The Asia Pacific region first saw capacity reductions in January and February, as
the epidemic extended to Italy and the rest of Europe, and subsequently to nearly every country
on the planet. In late February, there were even more significant reductions. As a result of all of
this, total income before unusual items for the year was £4,001 million (2019: £13,290 million).
The freight transported declined by 35.4 percent, measured in cargo tonne-kilometers, due to a
significant reduction in passenger schedule. The airlines changed the cargo business to ensure
that profits increased enough to cover all aircraft operating costs and cargo-only flights

contributed a positive cash contribution. Revenue from freight increased by 25.5 percent to £890
million. There was a positive movement in the outstanding operating cost as a direct result of
volume-based savings. Engineering savings of £269 million, or 37.6%, were made due to the
engine's lower flight hours on pay-as-you-go contracts. Catering, handling, and other operating
costs were reduced in 2020 as a result of cost-cutting actions such as the closure of various
lounges and other supply chain and catering reductions (2021, IAG).
5.1. Critical Evaluation
After rigorously analyzing the information gathered, it can be established that British Airways
was facing a significant problem. In the year 2020, there was a loss. The corporation had
suffered a revenue loss on a global scale, as well as a decrease in the number of employees.,
passengers carried, as well as revenue from operations. When comparing data from previous
years to this year's, a significant difference can be noted in the current year. All of these setbacks
are the result of all of these losses. Currently, the company is facing issues. When we dig deeper
into the reasons for all of the losses, it becomes evident that it is the outcome of the international
COVID-19 epidemic, which has seen the virus spread throughout the globe. It has undoubtedly
impacted every industry, with the air transport industry bearing the brunt of the impact. British
Airways, the UK's largest airline, had to bear the brunt of travel restrictions and costs and several
government regulations which have been enforced around the country. These are some of the
main reasons for British Airways' difficulties, whether it's job cuts, a drop in demand, a decline
in business travel, or even the airline's highest revenue loss in history. People, environment,
politics, economics, culture, IT infrastructure, security, healthcare, financial dilemma, and a
variety of other elements all have an impact on the organization, whether directly or indirectly,
when considering the main risks and uncertainties. Because such catastrophes are practically
difficult to forecast, control, or mitigate sway, it is natural for no firm to be able to stay still
under such dire circumstances. However, it has had a disastrous effect on the airlines, and getting
them back to where they were a year ago will almost definitely take some time. The SWOT
analysis framework will also be used in evaluating the British Airways;
SWOT analysis
The decision to conduct a SWOT analysis for British Airways business operation is the best way
to explain the strength and weaknesses for the stakeholders as well as also keeping them
informed about the opportunities of improvement that the airline has.
Strength
One of the strengths of British Airways is the fact that it has made a name for itself and it is one
of the best airlines in the UK and when it comes to its financial stability, it has the largest
financial size and stability in the UK. With these strengths, British airlines should be able to
overcome any form of challenge that they may face.
Weaknesses

It is no longer new that British Airways doesn’t have a good history of employee relationship.
Due to this fact, there have been strikes by the cabin crews and more underlying issues that has
not been carefully handled (Brown. P, 2005). They also have an issue with reliability and trust
when it comes to safety especially in this period of pandemic.
Opportunities
There are a lot of opportunities for British Airways. British airways has always been the best
airline in the UK with one of the best reputation so far. They should take advantage of the low
cost airline market to introduce budget travelling and also ensure they continue to give quality
services and swift delivery to ensure their customers are satisfied. Most airlines have issues with
customer service, while some have even shut down due to the world threatening pandemic and
this is an opportunity for British Airways to expand and grow (British Airways, 2015).
Threats
New entrants of other airline have become a threat to British Airways. Those new airlines have
taken advantage of the low cost air services which has become a threat to British Airways.
Another threat they face is with the global pandemic which affected the world economy. The
world economy is still struggling to recover and a third wave is already threatening the world, all
of these are threats to British Airways because their services and profit margin is greatly
affected.
SWOT analysis for British Airways
Image source: https://www.slideshare.net/tubui92/british-airways-brand-strategy

6.0. Recommendations and conclusions
According to our research, one very challenging issue that is being faced by British Airways is
due to the world pandemic. Just when things are beginning to look bright again and people are
going about their normal businesses, another wave of the pandemic is slowly seeping into the
world. The coronavirus imposed a toll on all types of industries as it moved across borders, but
because air travel is the most popular mode of cross-border travel, the aviation industry was the
hardest damaged (BA Annual report 2009, 2010). Because most countries' borders were closed,
travel restrictions were placed within the country, and the government enacted rules and
regulations preventing the movement of people, materials, and other items. The transportation
business has seen a drop in revenue as a result of the entire ban on travel. According to Graetz
and Smith (2010), British Airways which happens to be one of the most used airline in the United
Kingdom, became one of the country's most negatively impacted businesses. The airlines
experienced a significant drop in revenue, which resulted in massive job layoffs. Government-
imposed restrictions on mobility resulted in a drop in demand; the number of passengers
transported by aircraft was significantly lower than in previous years. A unprecedented drop in
operations revenue was seen, as well as a company-wide loss. Though the world faced numerous
obstacles, British Airways, like the rest of the world, implemented some tactics to mitigate the
pandemic's impact on the corporation and its stakeholders. These steps were taken to help the
company get back on its feet. The corporation, like its owners, took a hit (Agarwal, R., and
Helfat, C. E.,2009).
With the rate at which there is a drop in the demand for Airlines, there is a need for British
Airways to offer its customers more flexibility in purchasing their flight tickets so they could
attract more customers. Improving their customer experience should also be their top priority
especially with this phase of COVID 19 that is beginning to threaten the world again. The
Airline needs to come up with cleaning programs for their aircraft, and also their food and
beverages. Safety measures should be put in place like minimizing contact within customers,
carry out thermal screening before boarding the flight, make it mandatory for customers and staff
to use masks and gloves, and also sanitize the aircrafts often to ensure safety for all customers
and crew members. This way the airline can build the confidence of its customers even in the
most difficult times and also ensure everyone is protected (Cameron, S. K, and Quin. R. E,
2006).
There should also be some sort of adjustments in their food services. Like they should have some
sort of personal protection pack and HEPA filters installed in the Airplane the cabin air can be
changed completely and bacteria and viruses can be eradicated, just like when it is done in the
hospitals to get rid of bad air.
The group's long-term success is due to the airline's workforce's dedication to its mission and
principles, which they display on a daily basis. Although the airline had to carry out a significant

number of job loss which was done under duress due to the pandemic, but they seized the
opportunity to exploit the government vacation system to prevent and reduce the kind of
dismissal that would have been necessary. In future, the airline should make sure they act in the
best interest of their employees by ensuring they provide financial assistance to them and also
assist with their mental health and the health of their family members. Workers on the job should
get benefits like the COVID 19 insurance, mental health counseling, health aid, and most
significant trainings on how to take precautionary measures while working and meeting travelers
and how to stay safe (Boon, 2020).
Airlines' suppliers are the most important way of ensuring that the airline meets the high
standards of behavior that their passengers and stakeholders require. They are the airline's
extension, they represent the brand, and they are a major player in the successful operation of the
airline.
With the implementation of COVID-19 measures, airlines will need to make some changes with
their suppliers, which include aircraft manufacturers, airports around the world, and fuel
providers (Bas, T. and Sivaprasad, S., 2020). Changes in passenger capacity and a reduction in
the number of take-offs also had an impact on these suppliers. As part of the company's efforts to
save liquidity, it focused on aircraft deliveries and payment of associated deliveries with these
suppliers.
Furthermore, numerous countries are witnessing another extreme wave of the pandemic, with
projections of a third wave hitting the planet once more. Airlines should plan ahead of time to
ensure that the losses and issues experienced in 2020 do not recur, and that the corporation is
prepared to cope with them (European Union, 2009). Disorientation of the market, a drop in
business travel, an increase in fuel prices, historic routes being closed due to red zoning in
various nations, and other issues could develop in the future. There's a good chance the
corporation will have to deal with these issues in the near future. It is recommended that the
airline restructure its operations, focusing on cargo-based flight carriers, raise its finances, and be
prepared for risk management in order to be prepared for it.
There are several major factors related to COVID-19 that are beyond the Group's control,
including the global status and ramifications of the pandemic, including the development of new
virus mutations and the possible reemergence of existing virus strains; global vaccine
availability, as well as the speed and efficacy of vaccine deployment (Bas, T. and Sivaprasad, S.,
2020). Due to the uncertainty produced by the aforementioned considerations, the organization is
unable to guarantee that more severe downside scenarios exist, other than the ones it has
previously evaluated. The airlines examine sensitivity factors such as the influence on
production, operational capacity, mitigation costs, and offset capital expenditure availability for
aircraft financing.

As a result, the issues that British Airways is facing are the result of the global COVID-19
pandemic, whether it be a drop in demand, shrunken revenue, constrained operations, or 12000
job cutbacks in a year, all of which are driven by the global spread of infection (British Airways
annual report, 2010). The aim of the report is also answered, as the existing issues and potential
future challenges that may develop in the near future are all covered above, and the advice and
solutions for the airline to overcome these challenges are also discussed in the final section.
Many factors are still unknown, and neither the airlines nor anyone else can control them. The
known facts, on the other hand, can be used by airlines to take preventative steps and establish
precautionary measures, such as urging passengers and crew to keep a safe distance, avoid
contact, cover their nose and mouth, and adequately sterilize everything around them. Aside
from these specific techniques, the airline must re-engineer its business process in order to
increase revenue (Adrienne et al, 2020).
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