Economic Issues and Public Policy: Impact of Covid-19 on British Airways

ECONOMIC ISSUE AND
PUBLIC POLICY

Table of Contents
INTRODUCTION...........................................................................................................................1
Explain the change in the market condition by using the theories of economics and their
impact on certain factors.............................................................................................................1
CONCLUSION ...............................................................................................................................3
REFERENCES................................................................................................................................4

INTRODUCTION
Economics is the study of subject matter which concentrate on production, consumption,
transfer of ownership etc. by which they can analyse the demand and supply in the target market
in order to full fill the needs and wants of their potential customers(Cumbers and Traill, 2021).
Market refers to the place in which buyer and seller come together in order to sell or purchase
their goods and services. British Airways is the chosen organisation for this essay, It is the flag
carrier airlines and their headquarter is in United Kingdom. It is the second largest UK based
carrier based on passenger ans their size. This essay will analyse the change in the market
condition by using the theories of economics, further it will include the impact of changing
market conditions on the demand and prices of the commodity.
Explain the change in the market condition by using the theories of economics and their impact
on certain factors.
Market is the place where the two individual come together with the aim of selling and
purchasing the commodities wit the aim of generating higher profits so that they can learn the
higher profits. Demand refer to the desires of the individual to get some things and also having
willingness to pay for the same commodity. This can be influenced by income of the consumer,
natural affairs and expectations of the customers etc. these are the factors which affects the
overall functionality of the business and affect the demand as well. In context to British Airways,
they are expecting to cut 10,000 jobs due to Covid-19 pandemic as the flagship carrier has seen
the 7200 people leave and the Chief Executive officer Alex Cruz told lawmakers in London ad
they are having some discussions with some lobar groups and has rowed back on a pan to fire
ans they are planning to rehire staff on new contracts(British Airways says Covid-19 pandemic
likely to cost 10,000 jobs, 2016).
The company is facing huge looses due to pandemic as the demand in the aviation
industry tends to fall by which they are cutting down their number of workforce as British
airways is operating about 25-30% of its capacity and even changing quarantine rules around
Europe having significant impact on the demand. They also seeking various protection and the
safety of the traveller and the staff member as they are seeking for tests on arriving five days
later in order to self isolation and to continue the travel across the Atlantic.
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