Dynamic Aviation Environment Report - Business Analysis, UK

This report provides an in-depth analysis of the dynamic aviation environment, focusing on the impact of crises, particularly the COVID-19 pandemic, on the airline industry. It begins with an introduction to the dynamic aviation environment, highlighting the opportunities and challenges faced by airlines. The report then selects British Airways as a case study, justifying its choice due to the significant impact of the crisis on the airline. The analysis includes an examination of current trends in the aviation sector using passenger numbers, traffic results, and industry profitability data. A definitional analysis of the term 'geopolitical' is conducted, drawing on multiple sources to understand its influence on the aviation industry. Furthermore, the report presents a media analysis of British Airways, exploring how the organization has been affected by the crisis through various news sources. Finally, the report analyzes the performance of British Airways over the last three years, assessing passenger numbers, revenue, costs, profitability, and customer satisfaction to provide a comprehensive overview of the airline's response and resilience.

Dynamic Aviation Environment
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Table of content
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
CONCLUSION................................................................................................................................3
REFEENCES...................................................................................................................................4
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INTRODUCTION
Dynamic aviation environment provides a different kind of opportunities related to Airlines
that help in satisfying its customers during particular phase of time period. In this report, there is
an Airline which imposes direct impact by crisis which occurs during particular phase of time
period. In addition to this, there is a geopolitical word define by using different sources and the
media analysis of company that is helpful in using suitable source which imposes direct impact
by crisis during particular phase of time period. In addition to this, the performance of business
organisation in last three years that is connected to revenue, profitability as well as cost which is
defined in an appropriate manner (Blasch, Ravela and Aved, 2018).
MAIN BODY
Choose one airline/airport affected by the crisis and provide a brief justification for your choice.
British Airways id determined as flag carrier airlines which is located at UK. This
company was founded in the year of 1974 and it’s headquarter is in London, England. It is
considered as second biggest UK depends on carrier, fleet size as well as passenger who carried,
behind the easy set. The airline organisation was generates in year of 1974 and also it was
situated through government of British to manages two nationalized establishment related to
airlines.
British Airways Company as well as British European Company which is related to
Airways is determined as to Airlines. This organisation operates their functions internationally in
various nations and there are above 50060 subordinate who make their contribution or efforts in
operating organisation in an approved way. In present time, the organisation is affected by
pandemic issues just because of entire problem which is faced during particular phase of time
period. The organisation imposed in adverse way in context of reducing sales as well as profit
margin in future period of time. The airline organisation was generates in year of 1974 and also it
was situated through government of British to manages two nationalized establishment related to
airlines.
Based on the given data sets, determine the nature of current trends in the aviation sector
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These are the given data, it consider the nature of present trends in relation of aviation
sector that is going to be mentioned 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
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 ($) -1.09 -2.67 -42.02
RPK growth (%) 8.0% 4.5% -58.5%
ASK growth (%) 7.5% 4.2% -50.4%
Asia-Pacific
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Net post-tax profit ($
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
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RPK growth (%) 6.0% 4.3% -56.4%
ASK growth (%) 5.5% 3.6% -42.9%
(Source: IATA)
On the basis of above given graph as well as visual communication, it has been assessed
that in year of 2017, the increase and growth in different number of passengers in country named
as Dubai in comparison of year of 2016 and in 2016, there are various passengers is 83,654,250
in year of 2017, there are different passenger around 88,242,099. In addition to this, in year of
2019, there is increase in number of passenger approx 89,149,387. Therefore, in King Abdulziz
and Riyadh, the number of passenger is increases from previous years. But it is assessed that in
Dubai and Hamad there are various passenger decrease in year of 2018 in comparison to
previous years.
On given table 2, it has been analysed that in Middle East in year of 2018, the percentage
related to RPK of Emirates is increased by 2.7% in year OF 2017. The percentage related to
ASK is increased by 3.6%.
On above given table, it is assess that in year of Africa, there is the growth in region of
RPK and ASK in year of 2020. Similarly in year of Asia pacific region, N America is improved
in context of RPKs, ASKs. In addition to this, in Middle East, the percentage related to RPK as
well as ASKs is reduced.
Carry out a definitional analysis of the term ‘geopolitical’ using 3 appropriate sources
Author Definition Key point
Boyd, 2017 Geopolitics is determined as
assessment of geographical
effect on the relationship
which is maintained in
international level. The
geopolitics signifies in country
named as Swedish and given
by scientist named as Rudolf
kjellen in 20th century and they
Geo politics is determined as a
determination of geographical
effect that is confronted by
organisation. It is determined
as increasing
acknowledgement related to
mitigating geopolitical threat
which is confronted by
organisation in different sector
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focus on spreading their
business in Europe from the
first as well as second world
war that is operated in global
level by its employees during
particular phase of time
period.
related to aviation and so on
that imposes unfavourable
effect on company.
The geopolitical word
signifies the complexity or
difficulty which is a rise in
airlines actor. For instance
covid-19 pandemic.
Cui and Li, 2017 Their main focus is to
increasing their understanding
level regarding risk which is
arising due to landscape. By
assessing operations in context
of multiple lenses like
individual or organisation
resilience investment, weather
as well as atmosphere that is
interconnected with risk.
Aviation is determined as the
industry in which
geographical risk is arising.
Due to the criss-cross of
aircraft their main target is to
focus on non green option
related to travel.
It is determined as increasing
acknowledgement related to
mitigating geopolitical threat
which is confronted by
organisation in different sector
related to aviation and so on
that imposes unfavourable
effect on company.
Fernandes, 2017 Geopolitical focus is on
political condition that is
connected to space of
geographic. The airlines are
The geopolitical word
signifies the complexity or
difficulty which is a rise in
airlines actor. For instance
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determined as agents of
geopolitical power and these
are agent their focus is on
becoming bridge between core
peripheries related to globe.
covid-19 pandemic.
Geopolitics signifies the geographical risk as well as threat which are confronted by the
sector of organisations such as Aviation and so on. The complexity or difficulty of business
organisation affected unfavourably to its Organisation in context of sales, profit margin as well
as market share and many more. Geopolitics is determined as assessment of geographical effect
on the relationship which is maintained in international level. The geopolitics signifies in country
named as Swedish and given by scientist named as Rudolf kjellen in 20th century and they focus
on spreading their business in Europe from the first as well as second world war that is operated
in global level by its employees during particular phase of time period. For instance covid-19,
the major issue which is faced by business organisation that imposes direct effect on British
airline company just because of issue related to corona virus arises in overall world that is
suffered from the situation of lockdown and individual person did not want to travel that
decreases sales and profit margin of company during particular phase of time period. In addition
to this, the subordinate of organisation also get affected in adverse manner that decreases sales
and profit during particular phase of time period.
Carry out a media analysis of the organisation using a range of suitable sources to determine how
it has been affected by the crisis
Source and year Types of media Headlines Coverage Evidence of Bias
News sites, 2020 Article Covid-19 crisis The British
airways focuses
on cutting down
the employment
of around 12000
employees
whose focus is
on air travel
British Airways
is focuses on cut
down the job due
to increase in the
pandemic.
Airlines are
determined as
popular Airlines
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but due to corona
virus it imposes
direct impact on
sales as well as
profit margin of
company during
particular phase
of time period.
The
administration of
these kind of
venture also cut
job of around
12000 applicant
because their
business is not
operated due to
condition which
is arise named as
lockdown.
News sites, 2020 Effect of
COVID-19
Crisis
British Airways:
A breakdown in
trust
BA was
determined as a
national
champion,
symbol of airline
that focuses on a
values and
strength of
British airline. In
present time, the
organisation
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focuses on
dealing as well as
facing the corona
virus in order to
cope up with
challenges which
are faced by due
to covid-19. The
relationship
among the
organisation and
government is
fractured and the
conflict of CVID
with its
subordinate.
There is not any
kind of question
that is arises by
person rather
than lockdown
for their main
focus is to cut
down job of
individual person
due to pandemic
which is occur in
country that
impose negative
impact on
subordinate and
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this increases
turnover rate of
employees
during particular
phase of time
period.
The covid-19 positively effect on organisation during particular phase of time period. It is
determined as an international airlines company who focuses on operating their business that is
determined as a fuel effective as well as modern aircraft that determining its new in A350S and
787s as that assists in achieving the emission related to net zero carbon in the year of 2015. A
wave related to restructuring activated to increase in the virus of organisation that is operating
around the globe. Due to increase in covid-19, their main focus is to increase restriction around
the world that bringing changes in the Airlines and their main focus is to achieve these things in
an appropriate manner. Due to this, the airlines industry focuses on cut down the number of
flights due to which it imposes negative impact on company. The productivity level of
organisation affected in negative or adverse term itself and sales get reduced and also impacted
income as well as customer base in a negative manner (Fernandes and Feiner, 2016).
Analyse the performance of the organisation chosen over the last 3 years using figures relating to
passenger numbers, revenue, costs, profitability and customer satisfaction
IAG is determined as owner of British Airways that focuses on strengthen its financial
statement and loss that is arises due to the corona virus in the travel market. They focus on
decreases their loss which is around 4.2 BN in that year and the number of passengers gets
collapsed. There are around 12000 employees who cut down the job during the attack of covid-
19 during particular phase of time period. The influence of travel is only capable to operate
schedule related to passenger in second quarter. There is capacity of only 5% passenger as
compared to last year. Therefore, their main focus is to increase sales and revenue in future
period of time. And the profit margin that is completely dependent upon discretionary spending
which is based on capability of global financial system. The British focuses on investment that
enhances cost, competitiveness, experience of customer, capital investment as well as improving
worker during particular phase of time period. 2018 is determined as a second execution of
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strategic plan that is announced in year of 2016. In particular case, there is the number of
passenger which is increased by 3.5 % to 46.8 million in year of 2018. Therefore, the level of
experience of customer has increasing 4.5 million to 6.5 billion in upcoming 5 year. In 2018, the
financial as well as capital of company was around 12.18 million and also provided 13
innovative aircraft which is helpful for increasing sales of business organisation in future period
of time. In year of 2020, the organisation imposes negative impact due to increase in covid-19
that decreases profit margin of company during particular phase of time period. In BA, the
administration has revealed itself in UK covid-19 retention of job scheme is around 22,626
subordinate Gambhir and Kathuria, 2016).
Determine the effectiveness of the organisation in response to the Qatar diplomatic crisis
The small oil as well as gas rich Gulf in term of Qatar focuses on termination by using
powerful Arab neighbours that provide support to terrorism. Qatar emphasised on refusing
complying initial list of 13 demands which is not agreed to any kinds of measures that is
endangered to its sovereignty and accept six wider principles on fighting with terrorism sector.
Therefore, the Qatar is providing support to its Islamic groups. Qatar focuses on increasing
shares that is part of largest or biggest share in field (Stearman and Durso, 2016).
There are various impacts of crisis that is going to be mentioned below:
 Qatar is based on imports by using land for basic requirement of population and increase
40% food came by using land border in Saudi Arabia.
 In starting, the shelves of supermarket in Doha were run out stock that is related to basic
supplies as there is the situation of stock out arises during particular phase of time period.
CONCLUSION
On the basis of above given report, it has been analysed that dynamic aviation environment
provides a different kind of opportunities related to Airlines that help in satisfying its customers
during particular phase of time period. In this report, there is an Airline which imposes direct
impact by crisis which occurs during particular phase of time period. In addition to this, there is a
geopolitical word define by using different sources and the media analysis of company that is
helpful in using suitable source which imposes direct impact by crisis during particular phase of
time period. In addition to this, the performance of business organisation in last three years that
is connected to revenue, profitability as well as cost which is defined in an appropriate manner.
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