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British Airways

Executive Summary 3

1.1 Structure of the European airlines industry 5, 6, 7

2.1 PEST Analysis of the airline industry 8, 9, 10

3.1 Analysis of the airline industry (Porters 5 forces) 10, 11, 12

4.1 Major threats confronting the British airline industry 13
4.2 Opportunities confronting the British airline industry 14
4.3 Possible strategies in overcoming external threats 15

5.1 British Airways X Point Plan 16, 17

References / Bibliography 18

Executive Summary:
This report investigates the state of the airline industry, focusing on the leading British airliner British Airways (BA). This investigation covers issues such as how BA have managed to become a different entity in such a short space of time in comparison to other leading UK airliners and looks at the state of the airline industry in regard to current and future influences acting upon BA. During the last 10 years the airline industry has been flooded by new entrants, such companies have created greater competition within the sector and has led to massive implications for British Airways, this report looks at how such threats can be managed.

The UK airline industry at present is at its most competitive, with over "40 individual companies" competing for over "86 million customers" , the growth of the industry is staggering. To emphasise the growth; in 2004 "70 Million customers" were reported in comparison "86 million" reported in 2005, a true testament to this growth is the fact that London's Heathrow Airport (the biggest airport in the world) is currently developing Terminal 5, which will...