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).