Impact of Legal and Ethical Considerations on British Airways Business

This article discusses the impact of legal and ethical considerations on decision-making in British Airways business. It explores the laws and regulations in the airline industry and their implications. The article also covers contract law and employment law in relation to British Airways.

The Travel and
Tourism Business
Toolkit

Table of Contents
INTRODUCTION.......................................................................................................................3
PART 1........................................................................................................................................4
PART 2........................................................................................................................................7
PART 3......................................................................................................................................10
PART 4......................................................................................................................................12
CONCLUSION..........................................................................................................................15
REFERENCES..........................................................................................................................16

INTRODUCTION
Travel and tourism industry is one of the fastest growing industry in the world along with
haven bearing in different areas of development in significant way. The relational between the
various level of departs will have the personality level of impacts over the decision. The
services of tourism have the supporting development in industrial to have the better level of
performance over degree of utilization in order to have assurance of clear level of tourism
industry into picture. British airways is considered to flag carrier in airline of UK which is
considered to be largest as per the fleet size along with international flights along with
international destination in more prefect manner. The report will have the clears level of
discussion in 4 parts for having significant development of report. In part 1 and 2 there will e
discussion of yield management and stages of hr in masking prior decision-making with
regard to challenges which are faced by British airways. Airline industry have serving the one
of the best example which have the involvement of the sliding scale with inventory and
marketing channel. On other hand the new challenges is acquiring new talent because the lack
of right skill with availability of candidates as per required level of qualification. At last in
part 3 and 4 there will be discussion on Contract law and employment law impacts on
decision-making of the British airway. The last will be about the application for different
along with proper level of ratio analyzing in developing vision and mission.
PART 1
Yield management is the considered as the pricing strategy which is having the basis of
understanding along with anticipating and influencing behaviour of consumer in order to have
the maximization of revenue the fixed ans time treated resources which will have helps
airways to have significant level of implication in developing mission and vision of company.
The major level of significance of yield management along effective maximizing revenue
with three essential domains which are such as pricing strategy, availability control and
inventory management. In the airline industry the concept of yield management have been
bought up by Wang and Bowie which holds the better to effective measurement.
Revenue management is considered to be important aspects along with being concept which is
within hospitality industry which have the specific allowances to manager to have better look

after anticipates demand with optimizing range off availability and pricing which is their to
give the achievements of the best available financial level of results in achieving company
respected aims and objectives.
The major level of principles of revenue management in terms of travel and tourism industry
is such as -
Basic principle 1 Value
As to have revenue management, there should be proper understanding in relation to values
which is needed to have attraction of potential customers and perceiving values which is
gathered by there feedbacks and surveys. Advertised value and perceived value discrepancy
should be kept at the minimum level so that the potential customer don't have major level of
disappointment.
Basic Principle 2 Distribution Channels
Distribution channels is not different to marketing channels, the industry have preparation of
independent marketing budget which is deviating resources of manager in marketing. There
are different channels of have respective offering to different marketing opportunities.
Basic Principle 3 Direct Booking
The main goals to attraction of visitors by social media websites along with implementation of
loyalty programmes which turned out to be excellent methods. This will create positive kind
of behaviour in more appropriate way.
Basic Principle 4 Tourism Software And Data Insights
The travel and tourism industry have the major level of decision-making on the basis of
existence of accurate and current data. The existence of relevant data will be considered as the
success to any specific industry. The data which is coming from the customer feedbacks will
make the identification to pain pints to have necessary improvement.
Basic Principle 5 Demand Forecasts.
This is considered to be important development of revenue management by having proper
mapping the projected revenue needs and cost perspective. This will helps in making proper
level of information into marketing departments to have customizing tailor as per future
initiatives.
As per the discussing the revenue management, airline industry have the serving the
one of the best example which have the involvement of the sliding scale which have involving

price along with inventory and marketing with the uses of various channels. This will helps in
proper way of determination profitable level of plane tickets.
The tickets will be actually based on the willingness but along with competition and
destination in effective way. This makes allowances to airlines to have the approximation of
price as opposed to having fixed prices throughout. In order to have managing the pricing
strategy, the British airways will look after following character that availability of seat which
are actually available along with time which remained to have sold to seat with charges which
re implicated b competitors for the same seat.
The next is airlines have the use of complex algorithms which is having continues
analysing of market along with having determination of prices which are customer is having
willingness to pay. Airlines such British airways have cities agreements which is having major
frequent business are promising to give seats at the discounted rate which comes increase
customer loyalty with having proper level of dealing in managing different choices in control.
The airline industry is been identified as the customer oriented one which is dealing
with intangible products which is important to be sold out at the perfect timings. The British
airways should see the customer has the important variable's which have the direct impact on
revenue maximization of company in significant way. The pricing will have effects on the
customer directly which has been seen as the key instrument in marketings. The company
have the reduced the prices as differentiated strategy when its find out that is demand is been
considered at peak. This has results in benefits that is having more level of effluent planning
of operating plans. Since competition increases in all industries partly as a result of
globalization there is more need to focus on the customer and the connected demands. The
airline industry have the major level of price discrimination which are having existence in
efferent form as versioning, discount to large customer and frequents by programs. As in
version there are high quality are low quality ticket in which former can be rescheduled or
been cancelled but the later is the restricted quality with having advance purchase quantity.
The frequent flyer have the different kind of quantity discount along with discount of the large
consumers which are facing lower rice and higher price existence.
The critical analyse of the revenue management in that with applicabilities of airline, that there
should be proper understanding in relation to values which is needed to have attraction of
potential customers and perceiving values. On the other hand with impact of differential

pricing strategy the customer were not treated as valuable one by facing impacts of price
discrimination. On the other hand the pricing of distribution channels is on a way to be
implicated in airline industry as there is independent marketing budget which is deviating
resources of manager in marketing. The British airways is clearly implication the demand
forecasting.
PART 2
The airline industry is in way to have committing the global market with all of its quality of
senior management in order to have recruitments, training and reattaining of employees with
the leads them to have the sustainable future. The Best talent recruitment can lead to airline
industry is considered to be challenges as it is having typical surely straightforwardness in
developing career path.
As per the report by IATA (International Air Transport Association) that there is major level
of growth in job area to be in ground level operation's along with customer services and cabin
crew. On the other have finding the new challenges is acquiring new talent because the lack of
right skill with availability of candidates as per required level of qualification.
The employees have reports that the current level of training are not effective in order to have
identification in their respective career progression opportunities along with high level of
priorities in having respective level of jib satisfaction and retention.
The lack of digital ans IT skills have taken the place of priority in aviation sector along with
customer services skills. These skills are properly required to have providence of effective
training and development.
In this industry the retention of the current employee have been turned to be major challenges
as millennials tend to work at twice as many companies within their first five years of
employment than was the case twenty years ago.
Review of different stages of HR life cycle
It is the responsibility of HR to place right candidate at right job role in right time. for this
they are required to hire and train them. The HR cycle describe overall time of employee
within an organisation with context to roles and responsibilities assigned. Basically, there are
five stages in it that is explained below :-

Recruitment – It is the first stage where candidate is hired for specific job role or position. for
this proper plan is developed. So, HR of BA will recruit it on role of revenue manager (Claus,
2019)
Training – This is stage where employee is given training and induction takes place. They are
assigned roles and duties. Also, organisation policies are explained to them. By providing
continuous training staff skills are developed and sharpen. Revenue manager is provided
specific training.
Motivation- Here, employee is encouraged by providing them opportunities for growth. This
is done to improve their job performance and productivity. With this challenging goal are
assigned to them. It helps in retaining of staff. In BA, revenue manager is motivated with help
of theories.
Evaluation- It is a stage where employee performance is evaluated. This helps in identifying
strength and weakness of them on specific job role. Through this, they are retained. Also, their
talent is recognised. The manager performance is measured in BA through metrics and KPI.
Termination – This is last stage where employee is terminated or retired from company. Exit
interview is taken to identify the reason and taking employee feedback.
Through all these stages, it becomes easy to retain staff. In each one their skills are
enhanced. The main stage is training and motivation one. Thus, entire retention of staff is
based on it.
Performance management plan for revenue manager
It is necessary for HR to measure performance of revenue manager so that it is
identified whether goals are achieved or not. Besides that, it is useful in identifying strong and
weak points of staff on specific job role (Crane and Hartwell, 2019). Similarly, in BA a
performance management plan is developed for revenue manager. It is explained as :-
Key
responsibility
Specific task Performance
standard
How
measures
Outcomes If need
improvement
Auditing of
financial data
Analysing
annual
report,
financial
transactions
Accurate
figures
Taking
feedback
from
General
manager
Not
achieved
Needs
improvement

Preparing
financial
statement
Recording,
calculating
data and info
Preparing
annual report
Measuring
data with
report
Achieved No need of
improvement.
The negative behaviour can be resolve by empowering employees. In this feedback can
be taken to identify their issues. Thus, it will be enables in finding out behaviour of others and
what are the factors affecting it.
The staff retention can be resolved by creating a positive culture. Besides that,
employees can be provided higher incentives and benefits. The revenue manager can listen to
staff problem and solve them.
Each stage of the HR cycle have the important in main to have developed of human
resource manager in more effective way as the stage 1 is about recruitment which is having
growth as contentious level by having right level of people with right to which is considered to
be important. The HR has the assistances in benefits and opportunities of growth.
There is major level of improvement can be done by having proper hirings supports in getting
successful applicant as anew employee development.
The next stages is about the education and motivation which begins with education the
employee form moment they have start to their respective position. The HR have development
of values to support employee transition. On the other hand to improve the condition of
retention, motivation is necessary as turnover is being expected highest in first 90 days which
is majorly because of lack in motivation. So the HR will have proper offering of reasons to
stay motivated with better compensation, benefits ans opportunities of growth.
The last is evaluation and celebration where the former is done by HR with havering proper
level of evaluation and measurement of employee performances along with pending time in
discovering with professional. The celebration have opportunity for HR to have reenergizing
the important level of milestones and motivating employee to have developmental of business
in more effective way. The HR should have the proper level of evaluation and cerebration in
company to have the analysing of benefits ans opportunities of growth various celebration
which to be more necessity in making the allocation of right skill the right job applicants.

PART 3
Impact of the legal and ethical considerations on British Airways business
British airways is considered to flag carrier in airline of UK which is considered to be largest
as per the fleet size along with international flights along with international destination in
more prefect manner. The company have the following level of legal and ethical
considerations which is making potential level of impacts in decision-making of company in
more significant way. There is major involvement of complicated terminology along with
varied level of definition which create a major level of differences in law, regulation and
standards. In generals term the legislative bodies have passing up of laws as on other hand
government agency haver development of regulation in order to have proper implementation
of laws and last the agencies have creation and approvals of accredited standards. The airline
industry have the following of the principal legislation in relational to have effective
investigation' of air accident which have inclusion of-
European regulation No 376/2014 on the investigation and provision of air accidents and
incidents in civil aviation.
UK Civil Aviation (Investigation In Air Accidents And Incidents)
UK Civil Aviation ( Investigation of Air Accidents at civil aerodromes) regulation 2005.
Contract law and employment law have the significant level of impacts of decision-
making of airline industry of the British airway in more significant way. Company law have
the regulation in corporation in company in way to conduct business along with compliances
which are filling of be made with respective government. This helps in maintaining
appropriate level of transparency in developing the compliance in side company. On the other
hand the employment in regulation by the non-discrimination and non-exploitation of
employees, labourers, workers by regulating the work of weekly hours, minimum wages,
health, safety and working conditions and related aspects. On the other hand the contract laws
have regulation in legal entities to have execution of services to have availing of services. For
example the airline industry have the implication of civil aviation act 1982 and air navigation
order 2009 in order to have stipulation to have other numerous obligation such as the
employment, health and safety discrimination.
The regulation have the covering of all aspects of the airline which have major level of
inclusion of the carrier along with equipments and pilots. The legislation has been considered

as the important in making decision in airline company as the governing have the proper level
of organizing the of society along with protection of citizens. The legislation has the proper
level of determining the rights along with responsibilities as per individuals and authorities.
On the other hand regulation have the major impact over the aerospace sector as there
is significant secularity concerns along with potential level of subdirectory in restitution to
internationalism aviation regulation in effective way. The existence of international flight are
more level of being regulated as compare to the domestic flights as some nationalize have the
sky aggrievement allowing to have free fly. Government can change government regulation to
have course of research and impacts of suppliers on products. For example the Civil aviation
act 1982 have the introduction of the systematic economic regulation of other airport operator
in which the airlines have the requirements of levy more level of airport charges in to order to
have the promotion of company against competitor firm. On the other hand the
implementation of transportation acts 2000 have requirements for operator to have keeping of
records of aircraft movement in more way to have facilitation and calculation of assessments
charges. In order to have failure in installing along with maintaining the use of proper level of
equipments which have enabling to crafts in order to have take-off and land which will have
major level of attraction of liability towards passenger of aircraft to use the rescue equipments
which is adequate.
I have considered that the ethics in business is having the major level of rights along with
well-being which is effluence decision-making of company. I have analysed the that there is
difference in how business in being actually being perceived. As per my views there cab be
changes in the legislation as per the requirement of business which is needed to be flourishes.
The aircraft business have the new in term of following negative practices along with making
positive level of efforts over the positive culture development. I have the conclusion over the
analysis different level of legitimization, standard rule and more level of ethical principles.
The ethical issues are not always about the inclusion of privacy, confidentiality, honesty, and
fairness. But on the next way the British airways have encompassed of responsibility in terms
of meeting up of obligations along with keeping promises an avoidance of harm to people. So
the airways sector should have the development overall sector as secularity concerns along
with potential level of subdirectory in restitution to internationalism aviation regulation in
effective way. To more to have the development of decision-making law have the regulation

in corporation in company in way to conduct business along with compliances which are
filling of be made with respective government.
PART 4
Financial statements have the providence of the picture regarding financial position's ans cash
flow of the business. There are the major level of documents which is been used by the
community which are mainly interest in investment along with lender, creditors and
management to have the evaluation of entity. There is providence of the financial types
statement that are such as the income statement, balance sheet, cash flow statements and the
statements which have the changes in equity.
Income Statement is revealing the financial performance of entire reporting period which
have the representation of sales and expenses all expenses in order to have arriving net profit
or loss. The statement have also the earning per share which is being issue d by company
which is publicly held.
Balance Sheet is representation of financial position which is being aggregated in the general
level of classification of asset and liabilities ans equity performance. This classification have
clear level of representation of liquidity of firm in more perspective manner. This is a key
document, and so is included in most issuance of the financial statements.
Cash Flow Statement have the report in more revealing the cash inflows along with outflows
which is being experiences during reporting period with have clear way of classification which
are operating activities, investing activities, and financing activities. There is difficulty In
assembling products but more commonly used by outsider to have evaluation of company
performance.
Statement Of Changes In Equity is the documents as all changes have the purchases of
shares, dividend issues ans the respective profit ans losses. This no usually have inclusion id
financial statements as the informal is overlaid useful in team management.
Budgeting have the identification over current level of capital along with expectancy
providence of expenditure which have prior level of anticipation regards the incoming revenue
and development over significant way as expected. It enables the business owner to
concentrate on cash flow, reducing costs, improving profits and increasing returns on
investment.

The budget have major level of oversimplification in developmental the suitableness in more
significant level to make the proper level of estimation in revenue, planning expenditure ans
the make prier level of construction ion spending to have accordance over plan management.
With next to that it helps in the proper allocations of money ans resources to have supporting
over the objective of business in more appropriates way.
This makes the effective over decision-making along with providing effective level of
business opportunity which have major level of involvement of staff sharing organizational
vision.
Ratio calculation Iberia calculation British airways
Profitability
ratio
Gross profit
ratio
3230/24406*100 13.23 1952/13021*100 14.99
Net profit ratio 2481/24406*100 10.17 2091/13021*100 16.05
Liquidity
ratio
Current ratio 10093/11050 0.91 2502/5838 0.43
Quick ratio
0.71 0.58
Efficiency
ratio
Account
receivable
15.15 15.13

As per the given ratio analysis it has been states that there are major level of simplification
over the analysis of the ratio analysis in the competencies. In the term of profitability ratio
British airways have the more profitability as compress to the Iberia. The other hand the net
profit abrasion je British airways is more as the has been analysis theta the firm is making
more level of profit as compare to Iberia. As term of current ratio, the ideal is 2:1 as the no is
coming near o ideal one this meas the is lack of acceptability of current ration. On the other
hand the quick ration is ideal 1:1. In the above analysis the Iberia have the more appropriate
ratio as compare to the British airways. As considerations of efficiency ratio the account
receivable considered to almost same. So the Iberia is consideration be more efficient that
British airways accepts in term of profitability.

CONCLUSION
From the above report it can be concluded that yield management have effective maximizing
revenue with three essential domains which are such as pricing strategy, availability control
and inventory management. In the airline industry the concept of yield management have been
bought up by Wang and Bowie which holds the better to effective measurement. The airline
industry have the major level of price discrimination which are having existence in efferent
form as versioning, discount to large customer and frequents by programs. The employees
have reports that the current level of training are not effective in order to have identification in
their respective career progression opportunities The HR should have the proper level of
evaluation and cerebration in company to have the analyzing of benefits ans opportunities of
growth various celebration which to be more necessity in making the allocation of right skill
the right job applicants. Contract law and employment law have the significant level of
impacts of decision-making of airline industry of the British airway in more significant way.
Employment in regulation by the non-discrimination and non-exploitation of employees,
laborers, workers by regulating the work of weekly hours, minimum wages, health, safety and
working conditions and related aspects. Financial statements have the providence of the
picture regarding financial position's ans cash flow of the business. There is providence of the
financial types statement that are such as the income statement, balance sheet, cash flow
statements and the statements which have the changes in equity.

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