Impact of COVID-19 on British Airways

1
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 Airways, it is known as one of the leading flag carrier airline within
United Kingdom. Respective firm was developed in year 1974 as well as
having headquarters is in London, England. Moreover, this is also considered
to be the second largest UK base carriers according to its size of fleet as well
as the passengers they carried beside easy jet. In addition to this, respective
entity that operates in airline industry was established after a Board of
British was incorporated by their government for administering two
nationalized development of airlines that are British European Airways as
well as the other is British Overseas Airways corporations. Along with this,
they perform their operation worldwide into diverse number of country as
well as there are around above 50, 60 staff who working in order to run
business effectively and efficiently. At present time, respective business is
impacted through COVID-19 pandemic issue as because of this issues the
whole world have to face the situation of lockdown as well as its functioning
get impacted adversely in respect of sales minimisation as well profit.
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

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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)
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

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- 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
- 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.)
As per the above data, this has been determined that, in year 2017 there is development as well
as enhancement into passenger number Within Dubai in comparison to previous year. While in
2016, the number of traveller are around 83, 654 and in 2017 it is about 88, 242, 099. Along with
this, in year 2019, it is also identified that there is maximisation into passengers’ number which is
89, 149, 387. Likewise, within King Abruzzi as well as Riyadh, passengers’ number is
enhanced in comparison to its last years that are 2016, 2017 & 2018. But, this may be also
determined that into Hamad and Abu Dubai, the traveller numbers get minimised in
comparison to year 2016 & 2017 as well as also less in 2018.
As per the table 2, this may be determined that within Middle East the percentage of
Emirates RPKs is developed by 2.7% in year 2018 then 2017. Moreover, the ASK
percentage is maximised by 3.6%. Likewise into Qatar, Oman and Saudi, the RPKSs as
well as ASKs percentages has been increased by 5.5, 8.4,14, 13.5 and 7.7% consequently.
Whereas Within Etihad, percentage of RPKs is decreased that is -6.7 as well as ASKs is -
4.1.
Based upon the Table 3, This has been also determined that in African region, both ASKs
as well as RPKs development percentage is around 8& 4.5% and 7.5 & 4.2% consequently
as well as within year 2020, the anticipation of them is about 57.5% as well as -50.4%
accordingly. Likewise into Asia Pacific region, north America may having greater
percentage in context of ASKs and RPKs while into Middle East , Latin America as well as
Europe, the ASKs and RPKs percentages get reduced.

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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
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
Boyd, 2017
Geopolitics is considered as
an evaluation of geographic
affects upon the power
relations within global
relationships. Moreover,
the term Geopolitics was
developed by Political
scientists of Swedish
named as Rudolf Kjellen in
20th century as well as
their application spread all
over Europe into the period
within World war 1st as well
as second and came into
force internationally used
during Latter. Within
contemporary discourage,
Rudolf Kjellen have been
broadly employed due to a
losses synonym for
worldwide politics.
Geopolitics is regarded as
the determination of
geographical impact which
is confronted through
entity. Additionally, this is
also identified as
maximising understanding
associated with mitigating
risk of geopolitical that is
being confronted through
firm within various industry
associated to aviation.