Impact of Covid-19 Pandemic on British Airways

This research report explores the impact of the Covid-19 pandemic on British Airways, focusing on its financial viability. It discusses the background of BA, trends in the airline retail industry, and analyzes the sustainability and innovation aspects. The report also includes a SWOT analysis, primary data analysis, and recommendations for improving customer services to recover from the financial losses caused by the pandemic.

Research Report

Table of Contents
Topic –..................................................................................................................................................3
INTRODUCTION................................................................................................................................3
Background of BA...........................................................................................................................3
Trends of the airline retail industry...............................................................................................3
Methodology....................................................................................................................................5
SWOT...............................................................................................................................................6
PESTLE............................................................................................................................................7
Primary Data Analysis....................................................................................................................9
Recommendation..............................................................................................................................14
Conclusion.........................................................................................................................................15
References........................................................................................................................................16
Appendix............................................................................................................................................17

Topic – Impact of Covid -19 Pandemic on British Airways
INTRODUCTION
The retail refers to selling goods or services to customers through different
modes of channels. There are various retail trends that include sustainability,
profitability, innovation, etc. In modern era, airline industry is growing at rapid speed
that plays an important role in economic growth & development. For present report
BA is chosen. The selected sector in current report is airline industry, and the main
issue the research is looking for the airline industry is Covid-19 pandemic and how it
affected the financial viability of British Airways.
Background of BA
British Airways was formed with merger of two reputed firms BOAC and BEA
in 1974. British Airways is largest airline in the UK and is one of top airlines in the
world. British Airways has more than 300 aircrafts and flights to 70 international
destinations. Vision of firm is to become world's most responsible airline. Mission of
British airways is as follows “to ensure our customer fly confident that, together, we
are acting responsibly to take care of the word we live in”. Additionally, it aims to
established new standards for customer’s service innovation. BA has strategy of
providing stable employment, building connection with clients, reducing effect on
environment & community investment. Its financial structure has become strong by
getting listing on the stock exchange. The recent pandemic of Covid -19, however,
affected its operations and financial viability.
Trends of the airline retail industry
The three common trends for any airline business are sustainability, innovation and
Covid -19 pandemic in the present times. However, the research main focus is global
pandemic and its effect on BA.
Sustainability: environment/social/economic
Sustainability is the considered as the meeting the own requirements without any
compromising the need of the future generation to satisfy their own need. For the
sustainable development, there are three pillars are involved in this such as

environmental, social and economical sustainability. These entire pillars are helpful
to maintain the sustainability development. Aviation industry mainly concerned about
the carbon emissions and determined to obtain the zero CO2 emissions by the 2050.
In 2020, British Airways is the one in the UK airlines which announced that it would
be offset of carbon emissions on their domestic flights (Abu-Rayash and Dincer,
2020). In January 2020, British. Airways started offsetting carbon emissions for the
customers flying on 75 flights a day around the UK and also investing in carbon
reduction in projects all around the world. Company mainly reviewing the reducing
the carriage of the additional fuel on their flights to mainatin the limit which can affect
the environment.
Innovation
Innovation refers as ideas which come from the innovative thinking and then
transformed into the specific reality. In term of business, it is like a products, process,
concept and combination that mainly obtained in the marketplace & produce the new
revenue & growth for the development of the organisation. Innovative thinking is
helpful to generate a new idea which can help in the formation of business.
Technologies are taking more wider place in context of success of organisation.
Advanced technologies and digital solutions improve the efficiency, sustainability
helpful to provide the good customer experience and maintain the value of the British
Airways. Organization adopt specific innovative and launch the emission free and
driverless baggages vehicles which can useful to speed up the transportation and
other remote monitoring vehicles that mainly utilised the 100 % renewable electricity
& also helpful bro save the 7400 tonnes of the CO2 per year. Organization also
considered artificial intelligence in various areas in their branches to make sure that
flights mainly depart on time with safety concern (Chamola and et. al., 2020).
Covid -19
Covid-19 pandemic first reported in China, December 2019 and as per the current
scenario, April, 2021, more than 141 million cases of this pandemic occur globally.
This pandemic become the global issue because it providing negative impact on the
health, life, employment and business. Covid 19 affected the whole market of the
aviation industry and people stop travelling and mainatin social distancing to safe
themselves from the worst Impact of this pandemic. British Airways also affected the

most and cut many jobs. The overall market of the organisation negatively affect and
facing financial losses. Now British Airways is looking forward to cover up their
financial losses which can affect the performance of the organisation.
Issue of BA
The company got affected very badly by Covid pandemic as travel bans were
imposed. The company lost 10,000 employees because of Covid-19 .British Airways
cut the number of their flights which can affect their business and temporary lays off
more than 28000 staff members. Due to covid, organization € 5.6 bn. ( Grey Wright,
2020).
The main purpose of this report is to reveal the positive and negative impacts of the
Covid 19 pandemic on the British airways. To develop understanding of issues of
Covid 19 pandemic the following research question is completed.
Research Question
How British Airways could improve its financial losses due to Covid 19 by improving
customer services?
Methodology
Research methodology is considered as the blueprint and framework that can
provide the direction of research in an appropriate manner. There various steps
involved in the research methodology which can help to maintain each and every
phase of research in an effective way (Maneenop and Kotcharin, 2020). To carry out
this research, data collection is considered by the both primary and secondary
method. Secondary data is contain as the second handed data that already covered
and used by the other person. To carry out this study , secondary data can be
gathered by websites, articles, journals ,newspaper , books and magazines.

SWOT
Strengths Weaknesses
 Strong backing of the United
Kingdom government support the
British Airways to make strong
player.
 British Airways contain excellent
global presence and considered
as the most sustainable brand.
 Organization contains 150 global
destinations all around the wolrd.
 British Airways maintain the
effective marketing, promotional
and advertising activities across
the world.
 British Airways also participate in
some sponsorship events such as
Olympic, Wimbledon and can help
the boost the brand image.
 More Competition from the other
airlines which are operating from
that route.
 Lots of Competition lead the
decrease level of market share.
Opportunities Threats
 British Airways can expand their
operations in the new territories &
regions can consider the big
opportunity for the company to
cover up the losses of Covid 19
pandemic ( Abdul Momin, 2021).
 Heathrow terminal is considered
the main hub all around the world
 Increment in labour cost can affect
the market.
 Rising in the fule prices can
decline the profitability of the
organisation.
 High level of competition in airline
industry can affect the profit

and British Airways show their
active presences.
 Code sharing & specific alliances
with the other international airlines
can improve the performance of
British Airways.
margin.
Discussion of SWOT
As per the discussion of the SWOT analysis it can be analysed British
Airways is the most famous airline organisation of UK which lead the whole market.
The brand value of this airline is more and this airline is considered the most
demanding and suitable for the customers and this is considered the main strength
of British Airways. Lots of Competition in this industry contain as the weakness of
this organisation. There are various opportunities analysed by this model it is
determined that British Airways can expand their market in other territories which can
improve their global presence and recover the financial losses. Increase in labor cost
and price can be a threat of this organization (Mofijur and et. al., 2020).
PESTLE
This analysis is helpful to identify the external business environmental factors
of the organisation. The help of this analysis, organisation can determine external
environmental situation and then prepare a strategy to gain more profitability.
Explanation pestel analysis in context of British Airways are discussed below - Political - This factor mainly include trade, trade regulation, taxation policies,
political stability or instability and foreign trade policies. In term of British
Airways, political factors playing a central role because it is related to the
aviation industry. Political stability provide the growth and government policies
helpful to create business family environment for the attractiveness of the
market. Due to uncertainty of covid-19, British Airways experienced various
fluctuations in the government policies and political stability as which affects
their performance and also provide adverse impact on their financial
consideration.

 Economical - In this factors, growth rate of Country economy , employment
rate, inflation, recession , interest rate and tax rate are considered. Economic
factor and changes in country economy provide direct impact on the working
of the British airline. Due to this pandemic, economic instability,
unemployment rate, GDP, changes in pricing policy affect the whole market of
the airline which provide the adverse outcome in the growth of the
organisation. Social - This factor mainly include cross cultural activities, age, religion,
culture , education, income , safety concern of the customer, buying power of
the customer. Social factor mainly consider the demographic changes which
affect the the entire marketing of the airline. Due to loss of this pandemic ,
British Airways can maintain the security concern of their customer and
provide them safe flight journey which can help full to gain the the loyalty and
satisfaction level of the customer so that British Airways can easily improve
their market share and cover of covid-19.
 Technological - This factor mainly involved the technological advancement
and modification of technologies. In context of British Airways , technological
factors are playing a main role in the growth and development of the
organisation. British Airways can adopt advanced technologies and use latest
software to improve the working of their organization and maintain more fuel-
efficient & safe aircraft models which is beneficial for the development of the
organization and also helpful to tackle down the covid-19 situation (Nižetić
2020). Legal - In term of legal factor, law, legislation, Policies, procedure and other
governmental considerations are involved in the legal factors which can
provide the direct impact on the marketing of the British Airways. Compliance
is very critical for all type of aviation players and also for British Airways. Non
compliance affect the reputation of the company so it is necessary to pay
more attention to prevent themselves from these practices. The main concern
of British Airways is to customers security and their convenience level so that
effectively improve their market value. Environmental - In this factor , climate change, pollution, population and
other environmental activities involved which can influence the working of the
British Airways. Now organisation is more concerned about environment and

constantly trying to reduce the carbon emission which can help to improve the
performance of the organisation. Organization is trying to improve the
environmental sustainability and also adopt various model for the sustainable
development which can help to improve the effectiveness of the organization
and also helpful to cover of the losses of this pandemic (Zangirolami-
Raimundo, Echeimberg and Leone, 2018).
Primary Data Analysis
Primary data is considered as the first handed and pure data and it is gathered by
the researcher first time and it maintains the originality of the information. To carry
out this present research, primary data also used by the researcher. With the help of
questionnaire method, researcher collected data. There are various questions
framed in the questionnaire related to the topic " Impact of Covid 19 pandemic on
British Airways". The sample size of this study considered 30. Researcher collected
responses from the 30 people and consider their response in this study. There are
certain specific questions are discussed here and full questionnaire given in
appendix. The discussion of data analysis and data interpretation are explained
below -
Questionnaires
1. How often do you fly?
a. Once a year
b. Twice a year
c. 3-4 times a year
d. More than 4 times a year
2. Do you think that Covid 19 safety measures are important for future
travel?
a. Yes
b. No
3. Which safety measurement is most important to you out of the
following:
a. Temperature & symptom screening
b. Physical distancing
c. Cleaning & disinfecting infrastructure

d. Covid test and antibody testing
e. Vaccination
f. All of above
4. Do you think that British Airways is value for money?
a. Yes
b. No
5. Do you prefer to buy cheap ticket or prefer to pay little bit more but to
have safe journey?
a. I prefer to pay cheap ticket.
b. I prefer to pay little bit more but to have safe journey.
6. Would you feel comfortable if flight attendant wear mask?
a. Yes
b. No
1. How often do you fly? Frequencies
a. Once a year 2
b. Twice a year 4
c. 3-4 times a year 8
d. More than 4 times a year 16
2 4
8
16
Frequencies
a. Once a year
b. Twice a year
c. 3-4 times a
year
d. More than 4
times a year
Interpretation - From this analysis out of 30 respondents only 2 respondents
answered that their travel from flight once in a year. 4 respondents responded that

they fly twice a year and 8 respondents responded that they use flight at least 3 to 4
time a year. 16 respondents responded that they use flight more than 4 times in a
year.
2. Do you think that Covid 19 safety
measures are important for future
travel?
Frequencies
a. Yes 29
b. No 1
29
1
Frequencies
a. Yes
b. No
Interpretation - From the research it can be identified that overall 30 employees a
large number of respondents that are 29 are agreed that they think that covid - 19
safety measures are important for the future travel. Only 1 respondents responded
that it is not necessary.
3. Which safety measurement is most
important to you out of the following:
Frequencies
a. Temperature & symptom screening 6
b. Physical distancing 3
c. Cleaning & disinfecting infrastructure 4
d. Covid test and antibody testing 3

e. Vaccination 4
f. All of above 10
6
3
43
4
10
Frequencies
a. Temperature &
symptom screening
b. Physical distancing
c. Cleaning & disinfecting
infrastructure
d. Covid test and
antibody testing
e. Vaccination
f. All of above
Interpretation - As per this analysis it can be determined that 3 respondents
responded that physical distancing and Covid test is essential safety measurements.
6 respondents responded that check temperature is necessary and 10 respondents
responded that all these safety measures are essential for safety purpose during this
pandemic.
4. Do you think that British Airways is
value for money?
Frequencies
a. Yes 24
b. No 6

24
6
Frequencies
a. Yes
b. No
Interpretation - From this analysis it can be identified that out of 30 respondents
overall 24 employees responded that British Airways is value of money and their
prices is very convinent. Only 6 respondents are not agreed with that.
5. Do you prefer to buy cheap ticket
or prefer to pay little bit more but to
have safe journey?
Frequencies
a. I prefer to pay cheap ticket. 5
b. I prefer to pay little bit more but to
have safe journey.
25
5
25
Frequencies
a. I prefer to pay cheap
ticket.
b. I prefer to pay little bit
more but to have safe
journey.

Interpretation - From this investigation it is found that out of 30 respondents only 25
people responded that they prefer to pay little bit more amount to have safe and
secure journey. Only 5 people responded that they prefer cheap tickets.
6. Would you feel comfortable if
flight attendant wear mask?
Frequencies
a. Yes 28
b. No 2
28
2
Frequencies
a. Yes
b. No
Interpretation - Accounting to this research it is generated that 28 people agreed
that they feel very comfortable of flight attendant wear mask. Only 2 respondents
responded that they don't feel comfortable.
Recommendation
As per this research there are some recommendations are given which can
helpful to improve the marketing of the organisation and also prevent from the
financial losses of Covid 19 pandemic. British Airways should adopt the sustainable
development policies and follow each and every procedure which can help to
mainatin the performance of the British Airways. Organization should imporve the
safety and security concern so that customer’s eaisly trust their airline. Organization
can maintain the hygiene level and also provide the safe and secure journey to their

customers. Organization also test the temperature level of their customers ans also
covid test so taht thry can make alert their customers. Organisation can focus on
their trends and mianatin the innovative and sustainability level.
Conclusion
According to this report it can be concluded that covid -19 pandemic can
provide the adverse impact on the working of the organisation. Due to uncertainty of
the Covid19, the whole market of the aviation industry can affected negatively. This
report discussed about the trends of the British Airways which can influence the
performance of the organisation. Sustainability development is helpful in the
environment, social and economic growth of the country so it is necessary for the
organisation to take care about the sustainability. This report also considered the
primary and secondary data both to obtain the outcomes. SWOT analysis is also
considered which can help the determin the strength, weakness opportunities and
threats of the organisation. PESTLE analysis is also appropriate to identified the
external environmental factors impact on business performance.

References
Books and Journals
Abu-Rayash, A. and Dincer, I., 2020. Analysis of mobility trends during the COVID-
19 coronavirus pandemic: Exploring the impacts on global aviation and travel
in selected cities. Energy research & social science, 68, p.101693.
Chamola, V. and et. al., 2020. A comprehensive review of the COVID-19 pandemic
and the role of IoT, drones, AI, blockchain, and 5G in managing its
impact. Ieee access, 8, pp.90225-90265.
Maneenop, S. and Kotcharin, S., 2020. The impacts of COVID-19 on the global
airline industry: An event study approach. Journal of air transport
management, 89, p.101920.
Mofijur, M. and et. al., 2020. Impact of COVID-19 on the social, economic,
environmental and energy domains: Lessons learnt from a global
pandemic. Sustainable production and consumption.
Nižetić, S., 2020. Impact of coronavirus (COVID‐19) pandemic on air transport
mobility, energy, and environment: A case study. International Journal of
Energy Research, 44(13), pp.10953-10961.
Zangirolami-Raimundo, J., Echeimberg, J.D.O. and Leone, C., 2018. Research
methodology topics: Cross-sectional studies. Journal of Human Growth and
Development, 28(3), pp.356-360.
Online
Wright, G., British Airways’ owner records £5.6bn loss due to Covid-19,
2020, [Online] Available Through
https://www.yorkshirepost.co.uk/business/consumer/british-airways-
owner-records-ps56bn-loss-due-covid-19-3019795 />
Momin, A.,British Airways SWOT Analysis 2021, [Online] Available Through <
https://pestleanalysis.com/british-airways-swot-analysis/>

Appendix
Questionnaire
British Airways
1. Please select your age category
a. 18
b. 18-24
c. 25-34
d. 35-44
e. 44-54
f. 55-64
g. 65+
2. How often do you fly?
e. Once a year
f. Twice a year
g. 3-4 times a year
h. More than 4 times a year
3. Why do you fly?
a. Business
b. Holidays
c. Personal Reasons
d. Other
4. Do you intend to fly in the future after covid?
a. Yes
b. No
5. Do you think that Covid 19 safety measures are important for future travel?
c. Yes
d. No
6. In this current situation do you feel safe to travel?
a. Yes
b. No
7. Which safety measurement is most important to you out of the following:
g. Temperature & symptom screening
h. Physical distancing
i. Cleaning & disinfecting infrastructure
j. Covid test and antibody testing
k. Vaccination

l. All of above
8. Would you prefer more customer interaction included in service?
a. Yes
b. No
9. Do you think that British Airways is value for money?
e. Yes
f. No
10. Do you prefer to buy cheap ticket or prefer to pay little bit more but to have
safe journey?
g. I prefer to pay cheap ticket.
h. I prefer to pay little bit more but to have safe journey.
11. How much are you willing to pay for ticket?
a. £100
b. £120
c. £150
d. £200
12. Are you worried for food safety due to covid on flight?
a. Yes
b. No
13. Would you feel comfortable if screen is put between seats?
a. Important
b. not important
c. highly important
14. Do you think if the middle seats are empty, it will help social distance on
planes?
a. Yes
b. No
15. Would you feel comfortable if flight attendant wear mask?
i. Yes
j. No
16. Do you think that at least for a year face masks should be made
compulsory on airports?

a. Yes
b. No