Impact of COVID-19 Crisis on British Airways

The COVID-19 crisis has had a significant impact on British Airways, leading to job cuts and a decline in sales and revenue. The airline industry as a whole has been affected by the pandemic, resulting in layoffs and reduced profitability. British Airways is facing challenges in coping with the financial impact of the crisis and is in disagreement with its own workers. The company is striving to adapt to the changing circumstances and is looking to operate more flights on fuel-efficient aircraft to achieve net zero carbon emissions by 2050.

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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.
British Airway is the flag carrier airline of the UK. This organisation was incorporated in
1974 and is headquartered in London, England. It is the second largest UK based carrier,
based on fleet size and passengers carried, behind easy jet. This airline company was
created in 1974 after a British Airways Board was incorporated through the British
government to administrate the two nationalised airline establishments, British Overseas
Airways Corporation and British European Airways and two local airlines (Bose, 2018).
This firm operate its business internationally in diverse number of nation and there are
approx. more than 50,060 employees make their contribution in functioning the commerce
of venture in more developed manner. In current era, this business is affected by COVOD
19 pandemic issue because due this problem the entire world faces the situation of
lockdown and the business of company affected in negative manner in term of reduction in
sales and profitability.
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)
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

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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
- 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)
From the above defined graph and visual communication or table 1, it can be concluded
that in 2017 the maximisation and growth in number of passengers in Dubai in compare to
last 2016 as in 2016 the number of passengers is 83,654, 250 and in 2017 the figure is
88,242,099. Further, in 2019, it is growing, and the number is 89,149,387. Similarly, in
King Abdulziz and Riyadh, the number of passengers is developed in compare to their
previous 2016 years to 2017 and 2018. But it can be analysed that in Hamad and Abu
Dubai, the number of passengers is decreased as compare to 2016 and then 2017 and less
in 2018.
Form the table 2, it can be considered that the in Middle East, 2018, the RPKs percentage
of Emirates is grew by 2.7% from 2017. The percentage of ASK is grew by 3.6%.
Similarly, in Qatar, Saudia and Oman, the percentage of RPKs and ASKs is maximised by

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5.5, 8.4, 14 and 13.5. 8 and 7.7% respectively. Whereas in Etihad, the RPKs percentage is
reduced and it is -6.7 and the ASKs is -4.1.
Form the table 3, it can be identified that in Africa region, RPKs and ASKs growth
percentage is 8 & 4.5% and 7.5 & 4.2% respectively and in 2020, the forecast of them is -
58.5% and -50.4 % respectively. Similarly, in Asia Pacific region, N America is developed
in form of RPKs and ASKs percentages whereas in Middle East, Latin America and
Europe, the percentages of RPKs and ASKs is minimised.
C Definitional analysis
Carry out a definitional analysis of the term ‘geopolitical’ using 3 appropriate sources.
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 Geopolitics is the analysis
of the geographic impacts
on authority relations in
international relations. The
word geopolitics was
originally coined through
the Swedish political
scientist Rudolf
Kjellenabout the turn of the
20th century, and it utilise
extend throughout Europe
in the Period among World
Wars I and 2nd and arrived
into globally utilise during
the latter. In existing
discourage, geopolitics has
been extensively working
because a movable
synonym for global politics.
Geopolitical is the
determination of the
geographic impacts which is
faced by a business.
Andreas Haggman, 2019 The key to understanding
and extenuating
geopolitical threats is a
holistic vision of the hazard
countryside. By
determining operating
references by multiple
lenses, such as individual,
business resilience,
investment, cyber,
reputation and weather
and atmosphere-an entire
variety of unified threats
It is a main
acknowledgement of
mitigating geopolitical
threat which is faced by
business of diverse sectors
like aviation and many
more as well as influenced
by it in unfavourable
manner (Huang and et. al.,
2019).
GggSource 1:Source 2:

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become noticeable.
Aviation is an industry
intrinsically uncovered to
geopolitical hazard as it is
so noticeable. Aircraft
network nationwide
airspace, airports are
beleaguered through
disorderly and disparaging
and air travel is sighted as a
non-green travel
alternative.
Diego Solis, 2015 Geopolitical concentrates
on political power
connected to geographic
space. Airlines are agents
of geopolitical power. They
are agents of geopolitical
authority, as they have the
authority to become the
bridge among the core
margins of the globe.
This geopolitical aspect
signifies as the geographical
complexities cause of
business of airline sector
affect. For example,
COVID19 pandemic which
And finally, construct your own definition of ‘geopolitical’. Present this below:
Geopolitical refers to the term geographical risks and threats which faced by business
sectors like Aviation and many more. Cause of these complexities the business of
companies is affected in unfavourable manner in term of sales, profitability and market
share etc. For example, COVID19 is one of the key issue cause of which business of British
Airline affect in negative term because in corona virus crisis situation whole world is
suffered with lockdown situation and people did not travel so the sales and revenue of
form affect in negative manner (Berdonosov and et. al., 2018). Along with this, the
employee of this venture also affected in negative manner in term of losing their jobs.
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.
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,
2020
Article COVID-19 crisis British Airways
to cut 12,000
jobs amid
grounded air
travel
British Airways
may be
required to cut
more than a
section of its

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workers as the
corona virus
deadly disease
obtains its toll
on one Europe’
largest airlines.
Cause of this
corona virus
issue, the
business of
respective
company affect
in negative
manner in term
of affecting its
sales and
revenue. The
management of
respective
venture also cut
the
employment of
its approx.
12,000 people
because the
business is not
running due to
situation of
lockdown etc.
News site,
2020
Article Impact of
COVID 19 Crisis
British Airways:
A breakdown in
trust?
BA was once
observed as a
national
champion, a
powerful
character of the
nation’s
industrial
expertise and
as the airline
itself puts it-of
timeless British
principles and
modern British
potency. In
current era, the
firm is dealing
and facing with

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corona virus
crisis and
aggressive to
cope with the
enormous
monetary
influence of
CVID 19 deadly
disease, its
association with
the
administration
really cracked
and in
disagreement
with its own
workers. There
is no question
that the
respective, like
other airlines,
has been
noticeably
influenced
through the
lockdowns and
closure of
brooders
related with the
epidemic. Due
to this problem,
the entire firm
affect in
negative
manner in term
of employee’s
turnover,
reduction in
customer base
and decrement
in profitability.
Secondly,explain how the organisation has been affected by the crisis?
The COVID 19 crisis affects the entire business in negative manner. BA that is owned through
global consolidated Airlines Group though, the firm will look presumptuous to functioning more
flights on fuel effective and contemporary aircraft considering its new A350s and 787s. The air
carrier organisation also viewed that it supposes aircraft such as A350s and A787s will assist in

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accomplishing net zero carbon emissions by 2050 (Liu and et. al., 2019). A wave of streamlining
activated by the virus outbreak is hitting airlines and manufacturing companies crosswise the
globe. But the quick spread of COVID 19 and following travel boundaries all around the globe
made the airline change its plans and unhappily the helicopter will shortly be heading regarding its
final resting place. Due to respective crisis, the firm lay off its employees and cuts off its number of
flights cause of which, the business of entire venture affect in unfavourable manner. The
productivity of the company influenced in negative term, its sales is decreased and also affected
the revenues and customer base in unenthusiastic manner.

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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.
IAG, the owner of British Airways, is to raise €2.75bn to strengthen its balance sheet after
reporting a record loss as the corona virus pandemic continues to hammer the travel market. IAG,
which also owns Iberia and Aer Lingues, reported a loss of €4.2bn in the first half of the year as
the passenger numbers collapsed. The team made a €1.1 bn profit in the first half of last year. The
team and group that viewed passenger figures fell by 98% in the second quarter, has already
viewed it is to cut 12,000 jobs to minimise costs. The influence of travel and border restrictions in
mist nations meant it was only able to run a skeleton passenger schedule in the second quarter,
only 5% of the capacity compared with the same quarter last year. Along with this, the group is
asking capitalists to back a €2.75 bn equity rising and has already secured the support of its largest
shareholder, Qatar Airways. The half year operating loss concluded €2.2 bn of exceptional costs
relating to the early retirement of BA’s Boeing 747s and Iberia’s Airbus A 340s and costs
associating to its fuel-hedging programme. The respective group that failed to see a hoped-for
recovery in air travel in July, viewed it is planning for a development in passenger numbers but
expects capacity to be down by 74% in the third quarter in comparison to 2019 and down by 46%
in the fourth quarter. In 2017 the total revenue of the respective company is £13,021 million,
number of passengers 46.8 million (Yan and et. al., 2018). The Group shared immense outcomes,
managing the development in revenue per ASK which was accomplished last year. Profitability
maximised 6.1% to £13,021m. The profit margins based on discretionary spending that is reliant
on the ability of the global financial system. British Airways continues to invest in developing
consumer experience, cost competitiveness, safe and reliable operations, capital effectiveness and
developing workers. 2018 was the second implementation year of the strategic plan announced in
2016, objected at further strengthening the group’s sold economic foundations. Whereas in 2018,
passenger numbers maximised 3.5% to 46.8 million in 2018. The particular venture stays
committed to developing consumer experience and has extended the investment program
beyond the £4.5 billion to more than £6.5billion over the next five years. In 2018, the finance and
capital of the organisation was £1,218 million and the venture also delivered 13 new aircraft,
taking the total number of Boeing 787s to 30, A320neos to seven and one A321neo. Along with
this, the passenger and target audiences of the firm also responded positively to new Boeing 787s
and others. In 2018, BA also operated more flights than at any time in the last decade, providing
consumers more option. Approx. 76 flights of the firm departed punctually but after year-a year
there is arising a decrement cause of number of reasons. The group continues to concentrate on
investing in technology that develops operational effectiveness. In 2020, the business of
respective affected in negative manner due to COVID19 issues. The impact and duration of
COVID19, IAG is not currently offering profitable guidance for 2020. However, the group expects
its operating loss in the second quarter to be significantly worse than in the first quarter, provided
the substantial reduction in traveller capacity and traffic and despite some relief on workers costs
from government job retention and wage support plan and schemes. In BA, the management has
availed itself of the UK’s COVID19 job retention scheme furloughed 22,626 workers.
F Response of the organisation to the crisis
F. Determine the effectiveness of the organisation in response to the Qatar diplomatic
crisis.
The small oil and gas rich Gulf state of Qatar has been termination by some of its
influential Arab neighbors over it’s sustain for terrorism. Qatar declined to complete with
an initial list of 13 demands, saying it would not concur to any gauges that endangered its
dominion or opposes global law. The emirate has now been told by its neighbors that they

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want it to believe six broad ethics on fighting radicalism and terrorism.
Qatar has exercised and dogged foreign policy with different precedence to its neighbors
but there are basically two key concerns which have infuriated them in current years.
1.Qatar is supporting Islamic groups. Qatar confesses that it has given help to some, such
as Muslim Brotherhood, but denies assisting militant groups related to al-Qaeda or Islamic
State (IS).
2.Qatar's relations with Iran, in which it splits the world's major gas field. The Shia Muslim
power is Sunni Muslim-ruled Saudi Arabia's major local competitor.
There are some Arabic countries like Saudi Arabia, the United Arab Emirates (UAE) and
Bahrain which cuts their relations with Qatar on 5th June. These countries also gave time
of 14 days to Qatari citizens depart their country and banned their own citizens from
travelling to or living in Qatar.
One of the Gulf country, Egypt also cut political ties but did not inflict limits on its
180,000 people living in Qatar.
Even, Saudi Arabia, the UAE, Bahrain and Egypt congested their airspace to Qatari
aircraft, and said foreign airlines would have to seek permission for overflights to and from
Qatar.
Kuwait and Oman are two countries, didn’t cut the links with Qatar.
Impact of Crisis-
Qatar is basically depending on introduces by land and sea for the essential requires of its
population (2.7 million), and about 40% of its food came in through the land border with
Saudi Arabia.
In the beginning, supermarket shelves in Doha were run out of stock of basic supplies as
residents rushed to stock up but the hoarding quickly disappear after Turkey and Iran
started sending food by air and sea.
Doha's Hamad International Airport has been far quieter than normal. Qatar Airways, the
national carrier, announced the cancelation of flights to 18 regional cities and also reroute
those to other destinations because of restrictions in airspace by its neighbour countries.
Qatar's stock market lost about 10%, about $15bn (£12bn), in market value in the first four
weeks of the crisis. While, the stock market has since recovered 6% of its pre-crisis value.
Exports of liquefied natural gas have also so far not been affected and the emirate's finance
minister says Qatar has many resources to save its economy and currency (Qatar crisis: What
you need to know. 2017). Companies which were working on new stadiums and
infrastructure projects for the 2022 football World Cup have temporarily had to secure new
sources for building materials.Shipping costs seen increment tenfold, but Qatar has resume
shipping cargo through Oman to get around the restrictions on access to ports in the UAE.
It is actual that BA enjoys the blessings of London being a stronger O&D marketplace than
either of Frankfurt or Paris, and so has arguably less to lose than Lufthansa or Air France-
KLM from the erosion of sixth freedom visitors flows through its hub. Nevertheless, this
improvement all over again underlines IAG's more innovative stance – as compared with
its fundamental European competitors – when it comes to handling the risk of Gulf
competition. One region that can be infected through the brand new deal among BA and
Qatar is family members in the one world alliance. A assertion from BA and Qatar says:
"This settlement may even improve the one world alliance and allow it to compete greater
correctly at the protected routes creating greater competition and improved alternatives for
purchasers." BA and Qatar can be able to compete extra effectively; however different one
world contributors with a massive interest inside the regions included may additionally feel
that this will be at their fee. It is not going that Qantas, Cathay Pacific, Finnier or
Malaysian Airlines will in my opinion sense strengthened, despite the fact that one world
as an entire gains extra potential in the ones markets.

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The small oil as well as fuel wealthy Gulf in time period of Qatar focuses on termination
by way of using powerful Arab neighbours that offer aid to terrorism. Qatar emphasized on
refusing complying preliminary list of 13 demands which isn't agreed to any kinds of
measures that is endangered to its sovereignty and receive six wider standards on fighting
with terrorism region. Therefore, the Qatar is providing assist to its Islamic agencies. Qatar
focuses on increasing stocks this is part of biggest or biggest share in subject.
There are diverse impacts of disaster that is going to be referred to underneath:
• Qatar is based on imports through using land for primary requirement of populace
and increase 40% meals came by the usage of land border in Saudi Arabia.
• In beginning, the shelves of supermarket in Doha have been run out inventory that
is related to fundamental elements as there's the situation of inventory out arises at some
point of particular segment of time period.
Qatar Airways utilized it as a catalyst to animate its current five a long term orchestrate.
Where it could have taken different aircrafts severa weeks or months to recognize the basic
have to alter their flying strategy, Qatar Airways misused no time shifting advanced guides
in the Gulf to Oman, and assist far from domestic to Poland, Czech Republic, Turkey,
Russia and Thailand. The service quickened the advent of contemporary onboard
organizations, displayed the foremost top notch change route inside the global - a "QSuite"
selling twofold beds in Business Class (a initially time for the aviation industry), and
cemented up understandings to achieve stakes in vendors everywhere in the global, from
Cathay Pacific in Hong Kong, to Meridiana in Italy (Qatar Airways Becomes Largest
Passenger and Cargo Airline Globally Despite the Illegal Blockade and COVID-19 Crisis. 2020).
Flight team balanced in a single day to the restrained get to publications inside and outside
of Qatar, and the tone become kept superb each insides the provider and in the state of
Qatar by means of Emir Sheik Tamim canister Hamad al-Thani. Sheik Tamim met with
French President Macron and the president of Airbus Commercial Aircraft Fabrice Bregier,
around stamping every other aircraft good buy at the conclusion of 2017.
In March 2018, Qatar Airways declared that it had marked a 5-yr organization declaration
with leading German football team Bayern München AG, assist reinforcing Qatar's element
as a worldwide pioneer in sports activities. Beneath the unused information, the provider
will get to be a Bayern München AG platinum partner until June 2023.
Qatar Airways Group's sponsorship with FIFA remained the centre of its sponsorship
portfolio, and 2018 conveyed the undoubted spotlight of the wearing calendar on the FIFA
World Holder in Russia. Adjacent the development of multi-12 months affiliations with
Bayern München AG, AS Roma, Boca Juniors and the Brooklyn Nets, sports sponsorships
stay a key column to extend the airline's commitment to convey people and groups together
from over the globe.
A crucial guide of the nation's financial system and global alternate, HIA's entryways have
remained open as it proceeds to feature amid this emergency to require people domestic
and bolster the transportation of essential components around the arena and to Qatar.
Keeping up its position as a important global trade and journey hub, certainly amid this
illegal bar, the airport will continue with plans pronounced in 2019 to extend the airport's
capability to more than 53 million guests every 12 months with the aid of 2022, improve
situating itself because the airport of desire inside the locale for global travel and alternate.
The terminal building can be the primary air terminal in the MENA locale to reap a 4-big
name Global Sustainability Assessment System (GSAS) rating, that is the number one
performance-based totally framework in the MENA locale, created for rating the
inexperienced homes and foundations. The terminal will too be a LEED Silver licensed
building with inventive measures of power effectiveness over the complete building.
A a couple of award-prevailing airline, Qatar Airways changed into named ‘World’s Best

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Airline’ by the 2019 World Airline Awards, controlled by global air shipping score
organization Skytrax. It turned into also named ‘Best Airline inside the Middle East’,
‘World’s Best Business Class’ and ‘Best Business Class Seat’, in popularity of its ground-
breaking Business Class experience, Qsuite. Qatar Airways is the best airline to had been
provided the coveted “Skytrax Airline of the Year” identify, that is acknowledged because
the top of excellence in the airline industry, 5 instances.
Hamad International Airport (HIA), the airline’s domestic and hub, became recently
ranked “Third Best Airport in the World”, among 550 airports global, by the SKYTRAX
World Airport Awards 2020. Rising from fourth position in 2019 to 0.33 in 2020, HIA has
been steadily rising in the ‘World's Best Airports’ scores for the reason that begin of its
operations in 2014. In addition, HIA become voted the ‘Best Airport inside the Middle
East’ for the sixth yr in a row and ‘Best Staff Service in the Middle East’ for the fifth 12
months in a row. Qsuite, a patented Qatar Airways product, capabilities the enterprise’s
first-ever double mattress in Business Class, in addition to privacy panels that stow away,
permitting passengers in adjoining seats to create their own non-public room, a first of its
type inside the enterprise.
Qatar Airways Cargo, one of the world’s main worldwide air shipment providers, serves
greater than 60 freighter destinations international thru its global-class Doha hub and also
provides freight to more than 160 key enterprise and enjoyment locations globally on more
than 250 aircraft. The Qatar Airways Cargo fleet consists of two Boeing 747-eight
freighters, 21 Boeing 777 freighters and 5 Airbus A330 freighters. Qatar Executive is the
non-public jet charter division of Qatar Airways Group. Luxury jet services are to be had
for global constitution on board the operator’s wholly-owned commercial enterprise jet
fleet. Qatar Executive is the release purchaser for Gulfstream’s G700, the arena’s first
industrial provider operator of the Gulfstream G500 and biggest commercial operator of
the G650ER worldwide. Qatar Executive's service portfolio additionally consists of plane
control, preservation and Fixed Based Operator services.

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References
Provide a list of references of the sources used throughout this toolkit
according to UCB standards.
Book & Journals
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Huang, T. and et. al., 2019. Degradation modeling and lifetime prediction considering effective
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Berdonosov, V.D. and et. al., 2018, October. Implementation of the Speed Approach for UAV
Collision Avoidance in Dynamic Environment. In 2018 International Multi-Conference on Industrial
Engineering and Modern Technologies (FarEastCon) (pp. 1-6). IEEE.
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Wu, Z., Cao, Y. and Yang, Y., 2018. Direct CFD prediction of dynamic derivatives for a complete
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Liu, Z. and et. al., 2019. Collision avoidance and path following control of unmanned aerial vehicle
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<https://www.bbc.com/news/world-middle-east-40173757>.

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Qatar Airways Becomes Largest Passenger and Cargo Airline Globally Despite the Illegal Blockade
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