BA Aviation: Evaluating Heathrow Airport's Response to COVID-19

Verified

Added on  2023/06/17

|11
|3219
|133
Report
AI Summary
This report evaluates Heathrow Airport's response to the COVID-19 pandemic, analyzing the impact on passenger numbers, revenue, and overall performance. It examines current trends in the aviation sector, including technological advancements and digital security measures. The report defines 'pandemic' and assesses the effectiveness of Heathrow's strategies in navigating the crisis, including media analysis and financial adjustments. The study also provides statistical analysis of Heathrow Airport's performance over the last three years.
Document Page
Heathrow Airport
tabler-icon-diamond-filled.svg

Secure Best Marks with AI Grader

Need help grading? Try our AI Grader for instant feedback on your assignments.
Document Page
TABLE OF CONTENT
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
Impacts of Covid-19 on Heathrow Airport .................................................................................3
Current trends in the aviation sectors...........................................................................................4
Carrying out the definitional analysis of the term “pandemic”...................................................5
Media analysis for Heathrow Airport and the affects of crisis on the selected media................6
Analysation of the Heathrow Airport performance over the last three years.............................7
Effectiveness of the organization in response towards the Covid 19..........................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11
Document Page
INTRODUCTION
Aviation environment is the environment in which most people near the airports which
are exposed for noise from aircraft, streams, rivers and wetlands which can be exposed with the
pollutants discharged from the streams waters. In this project the chosen organization is
Heathrow Airport which is UK based airlines organization. In this project the affects of the
Covid pandemic and its crisis on which has provided a brief justification of the choices. On the
basis of the giver data sets this project will help in the determination of the current trends in the
aviation sector. In this project the real definition of the pandemic has been explained. This
project will also provide media analysis for a range of suitable sources for the determination of
crisis affects. This project will also provide the analysation o the Heathrow Airport performance
statistically towards the customer satisfaction, revenue and profitably. It will also help in the
determination of the effectiveness of the organization and its response to Covid 19.
MAIN BODY
Impacts of Covid-19 on Heathrow Airport
In this organization Heathrow Airport has been able to set the record which is first ever
annual loss for reviewing the ways in which the business can raise more funds after the loss
suffered in the pandemic. The whole of the Aviation industry has faced severe threat in the
history of the UK government for urgently needing to step up with a bespoke package for the
measurement of the bespoke package for the measurement of the ensured airlines which are able
to support the economic recovery when it comes to this organization. This firm was always in
talk with the government for the additional loans that has been financed for earlier airlines. This
organization had some funds which it had saved for facing up against the issues which the
business will have to face in the future. Due to the hit from the Covid-19 pandemic it has leaded
towards creating the leaders of the Heathrow Airport net profit (Liu, Kim and O'Connell 2021).
This was the first time the business of Heathrow Airport faced a loss in a history of 25
years it has also helped the business in trading update for continuation of the government
policies which has to take actions that can allow the business in the development of the
Document Page
Heathrow Airport which has signalled towards the government for providing financial support
towards the business. The major impact of the Covid -19 pandemic was that the business was not
able to entertain the actual amount of customers which it originally had during the pandemic less
business environment. The direct affects which happened due to the analysation of the business
operations (Gettelman, Chen and Bardeen, 2021). That improved the business operations that
allowed the organization in development of new strategies and has shored up the finances by
taking the loans, selling and also leasing back the part of the fleet for doing the cost-cutting deals
with the staff. Even though the government was looking for aiming towards the very late stage of
demand for the destination of the shifting with rapid dues that the customers would have to face
during the new quarantine rules which were to be established (Bureau, 2020).
The main tendency of this business in the aviation industry over the last 30 years has
been the strong growth which has the highest growth rate of all modes of transport which has
increased the five fold increase in the air travel within the aforementioned period of the
organization (Dube, Nhamo and Chikodzi, 2021).
Current trends in the aviation sectors
The current trend of the aviation sector can be understood with the help of analysing the
data on the benefits it has brought to both the economic and social terms. The relativeness of the
affordability and speed of the air transport has because the most internationally used way of
accessing the majority of the people and the way in which they have become more integral in the
part of their lifestyle for the economic term and also their contribution of the country's growth.
Contribution of this organization to the GDP of the international business from the aviation
industry has been 1.2% which is included in the retailing of the catering at airports which can be
made for 1.4% of the total GDP (Mhalla, 2020). It is the official Oxford economic forecasting
study which has bee estimated for the last 10 years for the aviation of the group which has
increased output for the UK economy which is £550 million per year.
The aviation industry has been responsible for the 8% of the national income in UK. It
can be said that there are 60 million visits overseas every year, compared to those which are
made for air due to the fact which allows the business in the little alternative of the air travel for
the long-haul. The outbound tourism contributes very significantly to the economy through the
revenue that is earned through truism and operations. It is also one of the two-thirds of the
estimated account for the estimation of the 4.4% of the GDP in 2002 and more that 2 million
tabler-icon-diamond-filled.svg

Secure Best Marks with AI Grader

Need help grading? Try our AI Grader for instant feedback on your assignments.
Document Page
direct jobs. There are certain factors which allows the business for the technological advances for
the creation of the globalized foreign travel.
These trends also include the airport ownership transition which has been very common
in the recent times in which the ownership of the management structure from the public to
provide partnership is towards the concession on the basis of the operators. The recent increase
in the collaboration of the digital security this industry has been using the walk through security
method for protecting the essential data of both the customers and the organization. It helps the
business in carrying out of rapid changes for the major trend in the airport for the suppliers
which have moved swiftly in the incorporation of the cyber security.
Carrying out the definitional analysis of the term “pandemic”
Pandemic is the outbreak of a disease which occurs over the wide outbreak over a
geographical area which have multiple countries or continents. It is considered to be typically
affected due to the significant proportion of the population. A pandemic outbreak is generally
caused by a disease which is contagious in nature. In pandemic the outbreak is considered to be
the sudden rise in the incidence of a disease which is typically confined for localization of the
area of a specified group of people which can become more sever and less localized during the
characterization of the epidemic which has broadened the further affects of a significant problem
and portion of the population in the disease which may be characterized as a pandemic.
In other words it can be said that in early stages of an infectious disease outbreak which
is done by the pathogen that has caused a pandemic. This term pandemic has been considered to
be having no corresponding theoretical definition which is considered towards the mathematical
approach of determination of the probability of a pandemic. In this term the business has been
used extensively for appearing in the phrases such as the pandemic preparedness, pandemic
influenza and pandemic potential. These differences in the pandemic definition can also be often
go unnoticed for towards the certain circumstances which can cause confusion between the
different stakeholders that may or may not have a shared background for understanding the term
which was declared pandemic.
The international health organizations such as the WHO which has not provided any
formal definition of the term pandemic which is why they do not use it for an official status of
any out break which can be hasty help in dis mission the importance of the team on the grounds.
In this organization the describing situation of the pandemic is said to not change in the those
Document Page
assessments of the threat which is posed by the virus itself. This change in the term was of the
interest of the public which was able to receive the extensive press coverage. For the term
pandemic the individual was clearly able to continue the importance of the indication of the
serious risk during the disease outbreaks.
Media analysis for Heathrow Airport and the affects of crisis on the selected media
In the media analysis of the Heathrow Airport the most affected media during the Covid-
19 pandemic is the social media platforms. This organization was able to analyse the public
sentiment towards the brand which is pivotal for the companies in all the industries which has
taken the walk for the visualization of the global online sentiment for quick and easy mapping of
the positive negative sentiment worldwide. Heathrow Airport was able to be utilized social
media for the marketing purpose an even before the pandemic (Czerny and et.al., 2021). This
utilization of the social media towards the engagement of the performance of the business has
been towards showing the levels of the buzz which was created for the last month, giving you the
up to date insights of how they can provide the business a better understanding of the social
media performance. Social media has tried to provide a very positive influence in the marketing
business operations as it is considered to be very cheap and effective measure that can be taken
for the implementation of the services has provided the business major opportunities for
development.
This brand has been able to perform in the social media as it provides the business with
the engagement for the Heathrow Airport which over the pandemic was considered to be the
most active. The usage of the social media has increased a lot in the situation of the pandemic
(Tanrıverdi, Bakır and Merkert, 2020). This was the result because of the lock downs which
forced many individual to be home isolated that has been very positive for the organization
which were interested in the online marketing methods. At the time of the global pandemic the
social media became an ally for the individuals as it impacted their daily life's. Some major
limitation of the social media currently is the said to be the ability for quick dissemination of the
false information which has result in the ability for quick and dissemination of the false
information. This can distract and confuse the social media users which has provided the
businesses like Heathrow Airport the analysation for the crisis that has been very important for
the guidance of the crisis for the strong implementation of the social media for the marketing
purpose of Heathrow Airport (Tay and et.al., 2020).
Document Page
Analysation of the Heathrow Airport performance over the last three years
In the last three years the performance of Heathrow Airport has witness some greats ups
and downs which has affected the performance of the organization. This has happened because
the fluctuation in the performance of the business which is the result of the Covid-19 pandemic
which has been such a negative influence to all the business performance that hit the world at the
beginning of 2020.
Passenger numbers :
The number of passengers travelling for Heathrow Airport has decreased also fluctuated
in this organization over the last three years. In the year of 2018 when there were no restrictions
of 2018 the business of this organization was flying high as it received around 80 million
passengers that year (Mack, Agrawal and Wang, 2021). This number fell in 2019 as the fights
were only able to be operated at the starting of the year thus, there were only 55 million
passengers travelling on Heathrow Airport . However, in 2020 the business suffered the most as
the number of passengers travelling decreased to 10 million.
Illustration 1: Number of passengers for Heathrow Airport
tabler-icon-diamond-filled.svg

Paraphrase This Document

Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
Document Page
Source : Number of passengers uplifted by EasyJet Airline Company Ltd in the UK from 2008 to
2020 (in millions), 2021
Profitability :
The profitability of this Heathrow Airport Business has also suffered quite the similar
trend. It was analysed that during 2018 this organization was able to generate the annual
profitability of 358 million. This was lower than its previous few years but again fell in 2019 due
to the partial influence of Covid-19. However, in 2020 due to the lack of sales this organization
suffered a loss of 1079 million.
Source : Annual net profit of easyJet plc from 2009 to 2020, 2021
Costs :
The total costs inured by this organization also decreased as there were very least
operations in the business however, it still had to incur the fixed cost which were rent and wages
Illustration 2: Annual Net profit of Heathrow Airport
Document Page
which lead to extreme loss for this organization (Zhang and et.al., 2021). Prior to that this
organization was facing major difficulties which allowed the business in the analysation of the
different seats.
Revenues :
Very similar to both the cost and profit the revenue of this organization has also been
high in 2018 but has fallen a lot later in 2019 and 2020 due to the impacts of the pandemic.
Customer satisfaction :
The satisfaction of the customers had to drop as due to lack of flights the business has
been able to utilize the management of the organization. The satisfaction of the customers have
certain direct relations with price of the flights which has increased over the last few years.
Effectiveness of the organization in response towards the Covid 19
During the Covid-19 pandemic the response of this organization towards the Covid-19
pandemic was the implementation of different strategies which allowed the organization in
reaching effectiveness. Heathrow Airport for being able to reduce the total loss which it was
facing in the year of 2020 was planning on developing strategies which was implemented in the
organization after the schedule of the after travel restrictions which were imposed in the
company as the Strategy for the UK customers (Rimmer, 2020). It cancelled many flights for
saving the expense of fuel only essential flights were run by the organization and also for making
sure that the company has been able to raise the hopes that 1 billion people can be immunized
after the effects of the corona virus. This organization had to also increase the prices of the flight
tickets for meeting the fixed costs and suffering the least amount of loss in the business. The
implementation of the 14 day quarantine period which the people had to follow also increased
the impacts it could have had in the performance of the organization.
CONCLUSION
With the help of this project it can be concluded that the business of Heathrow Airport
has been affected by the Covid -19 very badly as it suffered huge losses. This project explained
the determination of the current trend in the aviation sector. This project provided the definition
analysis of the term pandemic. In this project a media analysis has been carried out for the
analysation of the affects of crisis. This project also analyses the performance of the organization
in the last 3 years which was affected by the passenger numbers, revenue, costs, profitability and
Document Page
customer satisfaction. This project has also provided the analysation of the effective responses to
the Covid 19 business.
tabler-icon-diamond-filled.svg

Secure Best Marks with AI Grader

Need help grading? Try our AI Grader for instant feedback on your assignments.
Document Page
REFERENCES
Books and Journals
Bureau, A.T., 2020. Effects of Novel Coronavirus (COVID-19) on Civil Aviation: Economic
Impact Analysis. International Civil Aviation Organization (ICAO), Montréal, Canada.
Czerny, A.I., and et.al., 2021. Post pandemic aviation market recovery: Experience and lessons
from China. Journal of Air Transport Management. 90. p.101971.
Dube, K., Nhamo, G. and Chikodzi, D., 2021. COVID-19 pandemic and prospects for recovery
of the global aviation industry. Journal of Air Transport Management. 92. p.102022.
Gettelman, A., Chen, C.C. and Bardeen, C.G., 2021. The climate impact of COVID-19-induced
contrail changes. Atmospheric Chemistry and Physics. 21(12). pp.9405-9416.
Liu, A., Kim, Y.R. and O'Connell, J.F., 2021. COVID-19 and the aviation industry: The
interrelationship between the spread of the COVID-19 pandemic and the frequency of
flights on the EU market. Annals of Tourism Research. 91. p.103298.
Mack, E.A., Agrawal, S. and Wang, S., 2021. The impacts of the COVID-19 pandemic on
transportation employment: A comparative analysis. Transportation Research
Interdisciplinary Perspectives. 12. p.100470.
Mhalla, M., 2020. The impact of novel coronavirus (COVID-19) on the global oil and aviation
markets. Journal of Asian Scientific Research. 10(2). p.96.
Rimmer, P.J., 2020. Aviation and the COVID-19 Pandmic: Flying to the'Next Normal'. Journal
of International Trade, Logistics and Law. 6(2). pp.119-136.
Tanrıverdi, G., Bakır, M. and Merkert, R., 2020. What can we learn from the JATM literature
for the future of aviation post Covid-19?-A bibliometric and visualization analysis.
Journal of air transport management. 89. p.101916.
Tay, D., and et.al., 2020. The Aviation Industry: Tackling the turbulence caused by COVID-19.
IETI Trans. Econ. Manag. 1. pp.44-56.
Zhang, L., and et.al., 2021. The impact of COVID-19 on airline passenger travel behavior: An
exploratory analysis on the Chinese aviation market. Journal of Air Transport
Management. 95. p.102084.
Online
Number of passengers uplifted by EasyJet Airline Company Ltd in the UK from 2008 to 2020 (in
millions), 2021[Online]. Available through:
<https://www.statista.com/statistics/309452/easyjets-uk-passenger-numbers/>
Annual net profit of easyJet plc from 2009 to 2020, 2021. [Online]. Available through:
<https://www.statista.com/statistics/1007557/net-profit-easyjet-plc/>
chevron_up_icon
1 out of 11
circle_padding
hide_on_mobile
zoom_out_icon
logo.png

Your All-in-One AI-Powered Toolkit for Academic Success.

Available 24*7 on WhatsApp / Email

[object Object]