Introduction

British Airways PLC

Flying an extensive route network of more than 300 different destinations in more than 70 countries, with nearly 250 aircrafts in service, British Airways is today the largest airline in the UK and the leader in terms of transatlantic flights globally. They are a group mainly based in Heathrow Airport, London Gatwick and Manchester, where they operate international & domestic scheduled air services for carriage of passengers, freight & mail.

In addition, British Airways is part of the oneworld alliance that together comprises 700 destinations. Founded in 1999, American Airlines, Cathay Pacific, Finnair, Iberia, Japan Airlines, Lan Airlines, Malév, Qantas and Royal Jordanian are also members of this
Companies were vulnerable to surges in oil price, what could easily affect their trading and profitability. Even though it has fallen since the peak of nearly $150 a barrel during 2008, many companies were locked with fuel bills acquired through hedging into higher prices. Lastly, the financial impact caused by the global recession might persist until 2010/11 (British Airways Annual report 2009).

Apart from the economic downturn, according to features presented by the Consumer Price Index (CPI), in comparison to other forms of transport, the air travel industry had its prices increased by more than a third (34.3%) in 2008, against for instance, annual increases of 4.3% and 6.8% of road rail and sea, respectively (Key Note, 2009).

Social

As BA is a global organization operating in different countries it needs to consider different social and cultural factors. These factors are important as they can affect customer needs and the size of potential market. Nowadays, for example, the changes in demographics has changed the customers’ needs with new life styles, tastes and fashions, customers seek opportunities to go for long-haul destinations interested in new holidays places (Nicolini and Salini, 2006).

Since 2001, after the terrorists’ attacks in the US, Great Britain did not suffer such decline in the percentage of adults travelling by air. In the