Premium Essay

British Airways

In:

Submitted By tashaahaa
Words 4043
Pages 17
Change Management in British Airways
Name
Class
Affiliation
Instructor
Date

Table of Contents
Introduction 3

Context of the change 3

Evaluation of the nature of such changes 4

The change management strategy 5

The challenges and difficulties in implementing such changes 6

Change management model 8

Stakeholders 10

Managerial challenges 11

Overcoming resistance to change 12

Managing change 12

Conclusion 14

Reference 16

Introduction

UK largest international Airline, British Airways, is among the leading airlines in the world, with one of the most extensive route network, running internationally (British Airways, 2010). The income of the airline has been on the increase with the profits for the period between 2007 and 2008 being a total of £8,753, which translated to 3.1% more than the previous period. Throughout its operating years, British Airways has faced different challenges, as it is for all other companies in the industry. During the year 2007, the American economy experienced a crunch due to the bursting of the housing market. This was the beginning part of the 2008 economic crisis, or recession, which had global effects (Åslund, 2010). Like any other industry, the UK airline industry faced a major setback, British Airways being one of the companies and there was a need to implement changes for long company survival. This paper is an analysis of the changes implemented by the British Airways in the period between 2009 and 2011, and the challenges faced by employees and management during the change process.

Context of the change

Organization change is a useful strategy in times of crisis, or when an organization experiences performance gap. There may be other reasons for change but examining a good number of companies and institutions that have instituted wide-ranging changes, one notes that

Similar Documents

Premium Essay

British Airways

...------------------------------------------------- British Airways From Wikipedia, the free encyclopedia For similar named airlines, see British Airways Ltd and British Airways Limited. | It has been suggested that British Airways Limited be merged into this article or section. (Discuss) Proposed since January 2013. | British Airways | | IATA BA | ICAO BAW SHT | Callsign SPEEDBIRD SHUTTLE[1] | | Founded | 31 March 1974 (after BOAC & BEA merger) | AOC # | 441 | Hubs | * Gatwick Airport * London Heathrow Airport | Frequent-flyer program | * Executive Club (for BA flights) Diamond Club (for British Midland International flights) | Airport lounge | * Concorde Room * Galleries First * Galleries Club * Galleries Arrivals * First Lounge * Terraces Lounge * Executive Club Lounge * International Lounge * UK and Ireland Lounge | Alliance | Oneworld | Subsidiaries | * BA CityFlyer * OpenSkies * British Airways Limited * British Airways World Cargo | Fleet size | 256 | Destinations | 169 not incl. subsidiaries and code-shares | Company slogan | * To Fly. To Serve. * Upgrade to British Airways(online marketing) | Parent company | International Airlines Group | Headquarters | Waterside, Harmondsworth, England | Key people | * Keith Williams (Chief Executive Officer)[2] * Sir Martin Broughton(Chairman) | Revenue |  €11.482 billion (2011)[3] | Website | www.britishairways.com | British Airways (BA) is the flag carrier airline...

Words: 9707 - Pages: 39

Premium Essay

British Airway

...services Section 2 - British Airways Profile Overview Alliances LHR Air Transport Movements LGW Air Transport Movements Awards History Key Events (1987-2005) Board Members Leadership Team British Airways Management Team Employees Brands Departmental Analysis Section 3 - British Airways Fleet Aircraft Fleet Aircraft Delivery Schedule Mainline Fleet Profiles Regional Aircraft Fleet Maintenance Section 4 - British Airways Performance Summary Strategy Social and Environmental Performance Incentive Plans Summary Financial / Operating Statistics Principal Investments Shareholder Information Share Price History Section 5 - Global Partners Overview BA Connect Franchisees oneworld Aer Lingus American Airlines Cathay Pacific Finnair Iberia LanChile Qantas oneworld At A Glance Section 6 - Route Network British Airways Franchisees Section 7 - General Information Airport Three Letter Decodes Outside Advisors Abbreviations & Specialist Terms How To Contact Us 2 3 3 4 4 5 6 6 7 8 89 91 92 93 97 98 99 100 101 102 103 104 9 9 10 10 11 12 13 38 39 40 41 44 47 105 109 110 115 116 118 56 56 57 69 72 73 74 75 75 77 86 87 88 This document has been prepared solely for the purpose of providing information about British Airways to interested parties. It does not constitute an offer to sell any securities and must not be relied upon in connection with any investment decision. The information contained in the document has been compiled in good faith by British Airways from internal and...

Words: 59045 - Pages: 237

Free Essay

British Airways

...BA Strategy:   The goal of British Airways is to present better-quality service to its customers, stakeholders and employees alike.   The workforce of British Airways is a significant positive feature that strives to offer utmost advanced and pleasing service to its consumer. Their mission statement also retells their aim to achieve the status of the best airline universally. British Airways Business Performance since 2008: BA intends to achieve its vision of becoming the world’s leading global airline. This plan entails a 360 degree approach as in focusing in issues pertaining to the environment, relationships with suppliers and a new note and the BA tradition of supporting consumer friendly initiatives. As good performance at Heathrow drives good performance across the network, BA delivered its highest ever network-wide Ready to Go performance of 53 per cent. This translated into record levels of flights departing on time and within 15 minutes, as well as record levels of customer satisfaction with punctuality. (BA Annual Report 08/09) BA potential future strategy for the organization to grow its position in international and global markets: The study of BA various functions and practices as an organization from the strategic perspective it can be stated that British Airways prioritize its major functions, or in another words the resources that would help them to increase revenues are given due consideration, like the 2012 Olympics in London. Prioritization involves...

Words: 758 - Pages: 4

Premium Essay

British Airways

...Accounts Who we are British Airways is the UK’s largest international scheduled airline. We fly our customers at convenient times to the best located airports across the world. We are one of the world’s leading global premium airlines. Our principal place of business is London with significant presence at Heathrow, Gatwick and London City. Some 20 million people live within commuting distance of these airports, on the doorstep of the City of London, the world’s biggest premium travel market. We also operate a worldwide air cargo business, largely in conjunction with our scheduled passenger services. Operating one of the most extensive international scheduled airline route networks, together with our codeshare and franchise partners, we fly to more than 300 destinations worldwide. In 2009/10, we carried nearly 32 million passengers. We support the UK economy by providing vital arteries for trade and investment, meeting the demand for business travel and leisure travel for holidays and family reunion. In 2009/10, we earned £8 billion in revenue, down 11 per cent on the previous year. Passenger traffic accounted for 87 per cent of this revenue, while 7 per cent came from cargo and 6 per cent from other activities. We carried 760,000 tonnes of cargo to destinations in Europe, the Americas and throughout the world. At the end of March 2010 we had 238 aircraft in service. British Airways 2009/10 Annual Report and Accounts 1 2 British Airways at a glance 4 Financial...

Words: 67567 - Pages: 271

Premium Essay

British Airways

...[pic] Source: Extracted from Johnson, G, Scholes, K., & Whittington, R. (2008) Introduction The organization chosen for this Analysis is British Airways. Based at Heathrow Airport in London, British Airways is the biggest international airline in the UK. It deals in domestic and international carriage of freight and mail as well as ancillary services. Privatized in 1987, it has continued to increase in growth in spite of stiff competition (Finance Yahoo). This paper analyses the industry and external environment alongside an evaluation of the strategic options of the organization and the change process within the organization as related to the calculation and analysis of the Enterprise Value, to determine the recommended purchase price of the organization. Analysis of the external and Industry environment of British Airways PESTEL analysis Political From the political aspect, government and political instability affect the routes operated by many airline companies. For example, the Arab spring that affected a number of countries in North Africa and the Middle East such as Libya, Syria, Egypt and Tunisia affected British Airways through flight cancellations (Finance Yahoo). Economic Due to global economy recession, the share price of British Airways has fluctuated while insurance costs of British Airways rose because of the fear of terrorism and tighter security checks at the airport (Finance Yahoo). Due to fuel price fluctuations, companies are cutting down...

Words: 1850 - Pages: 8

Free Essay

British Airways

...British Airways – Flying Into a Storm S.J.Bastin Raj (F13016) 1. Bob Ayling was a lawyer by profession who helped British Airways (BA) get privatized and later on joined the firm. He moved up the ladder to become the CEO as a favourite of his predecessor of Lord King.Bob Ayling mainly focussed on cutting costs rather than concentrating on the welfare of his employees. That’s the main reason for his failure as a CEO Things went well during Ayling’s Tenure. * Identified the need to cut costs for becoming a better performing airlines * Initiated the industry transforming alliance with American Airlines * Later, modified BA’s strategies as when problems cropped up Things not went well during Ayling’s Tenure. * No communication of the organization vision to the employees which led to their disillusionment * He missed out on the people touch points - both employee and customer wise. A fatal error in a service industry. * He failed to create a competent rung of top management around him. * He should have had an acceptability test before rebranding BA. He grossly failed to understand the British sentiments and pride and alienated opinion leaders like Thatcher. 2. Ayling is an Authoritative Leader. He has high concern for production and very low concern towards people. This makes him an Authoritarian manager. Indeed, if we look into the tactics he adopted in BA, they are mostly characterized...

Words: 661 - Pages: 3

Premium Essay

British Airways

...British Airways 1 British Airways British Airways IATA ICAO Callsign BA BAW SPEEDBIRD SHT SHUTTLE[1] Founded AOC # Hubs 31 March 1974 441 • • London Heathrow Airport Gatwick Airport Executive Club Concorde Room Galleries First Galleries Club Galleries Arrivals First Lounge Terraces Lounge Executive Club Lounge International Lounge UK and Ireland Lounge Frequent-flyer program • Airport lounge • • • • • • • • • Alliance Subsidiaries Oneworld • • • • 267 169 not incl. subsidiaries and code-shares • • • To Fly. To Serve. Upgrade to British Airways (online marketing) The World's Favourite Airline (former) BA CityFlyer OpenSkies British Airways Limited British Airways World Cargo Fleet size Destinations Company slogan Parent company Headquarters Key people International Airlines Group Waterside, Harmondsworth, England Keith Williams (Chief Executive Officer) Sir Martin Broughton (Chairman) £10.827 billion (2011) www.britishairways.com [2] Revenue Website British Airways (BA) is the flag carrier airline of the United Kingdom and its largest airline based on fleet size, international flights and international destinations. When measured by passengers carried it is second-largest, behind easyJet. The airline is based in Waterside near its main hub at London Heathrow Airport. A British Airways Board was established by the United Kingdom government in 1972 to manage the two nationalised airline corporations, British Overseas Airways Corporation and...

Words: 7585 - Pages: 31

Premium Essay

British Airways

...changes in its structure. Usually, these changes are stimulated by an agenda or circumstance that forces the organization to change, in order to stay competitive, or even merely to survive as can be seen with the case of British Airways between the years 2009-2011. British Airways is one of the United Kingdom’s largest international scheduled airlines. The airline operates one of the most extensive international airline route networks. Its destination network is spread across 300 destinations worldwide and is a leading and established business in the airline industry, In 2007/08, BA recorded revenues of over £8,753 million, 3.1% up from previous year (British Airways, 2009). This report looks into the recession that affected Europe in 2008, and the change management strategies and the consequences that resulted from the changes British Airways took in order to survive. This covers the change methods that influenced The British Airways Chief Executive Officer; (CEO) Willie Walsh, to restructure the organization and cut down on its expenses, by taking a look at Walsh’s restructuring program, and how it turned out to be taken negatively especially by the airlines’ cabin crews where a long running of industrial disputes ensued. Change Management in British Airways: Change management in this report looks into change kaleidoscope as a theoretical model which aims to study the contextual features of change and is primarily a mechanism for dealing with planned change. In addition...

Words: 1961 - Pages: 8

Free Essay

British Airways

...British Airways – Flying Into a Storm Alan Michael F13066 1. Bob Ayling who succeeded Marshall was a lawyer by profession, who took care of drafting the bill for privatising BA .Bob Ayling was a visionary whose actions revolved around bring down the cost of operation there by to increase profitability even when BA was doing well. However on the other side he failed to value his employees, which ultimately led to the failure of him as a CEO. Things went well during Ayling’s Tenure. * Identified the need to cut costs for becoming a better performing airlines * Initiated the industry transforming alliance with American Airlines * Held on to his stance despite strong oppositions showing a determined face of BA * Rebrand BA to make it more attractive to international travellers * Later, modified BA’s strategies as when problems cropped up Things not went well during Ayling’s Tenure. * He implemented cost-cutting without taking into consideration the stakeholder’ point of view. The employees’ salary cuts will never lead to their better performance unless they are given any other incentive to perform better. Maybe he should have restricted their pay by putting more pay per performance quotient put into it. * No communication of the organization vision to the employees which led to their disillusionment * He missed out on the people touch points - both employee and customer wise. A fatal error in a service industry. * He failed to create...

Words: 756 - Pages: 4

Premium Essay

British Airways

...British Airways Case Leading Organizational Change British Airways Case Introduction British Airways (BA) was created in 1979 by public law allowing the “British Airways Board to assume control of two state-run airlines, British European Airways (BEA), and British Overseas Airways Corporation (BOAC) under the name British Airways” (Jick & Peiperl, 2006, p 26). Many problems arose from the combination of the two companies. Structures, culture, and systems had to be combined and improved to help BA become a viable company and prepare itself for the move from a government owned entity to a privatized corporation. Problems Macro The two airlines served different markets and were run as services rather than as businesses. Efficiency and customer service were not part of the organizational structures or design. Each had its own hierarchy of personnel who functioned independently of the other group. Leadership style was heavily task centered rather than service centered. Much of this can be attributed to the history of the companies and their creation following World War 2. At the time of inception, each company was tasked with making commercial airline travel possible by creating the airline infrastructure, designing routes, and proving commercial travel a viable means of transportation for the public. As a government run institution, layers of bureaucracy separated most employees from the idea that they were serving the public interest and should keep quality...

Words: 1726 - Pages: 7

Premium Essay

British Airways

...BACKGROUND British Airways was founded in 1974 as a result of the merger of the then British Overseas Airways Corporation (B.O.A.C.) and British European Airways (BEA). Prior to the merger, the former operated on international routes while the latter focused on continental Europe. Rather than enhancing good services and operation, the merger brought about a variety of problems resulting from cultural factors. There existed some sort of discriminations between the two groups as the people of BOAC saw themselves as the Gentleman’s Airline and BEA as a trade man’s Airline. BEA on the other hand the saw themselves as the ideal competitors and the BOAC as just a bunch of snobs. They therefore acted independently, such that the only common factor between them was inefficiency. Consequently, the management became highly inward focused with decisions made in isolation, lacked accountability, had little focus on profitability, slow in its operation, lacked sensibility, was eluded from flexibility, communication and initiative. It was indeed a hierarchical organization and consequently operated a tall organizational chart. By 1980 the problem of B.A. had reached its peak such that the airline was being tagged “Bloody Awful” as it was soon voted as the airline to be avoided at all cost. In 1981, Lord King whose mandate was to restructure B.A., make it profitable and prepare it for privatization was appointed as the chairman of the company. As soon as he discovered the inner politics...

Words: 447 - Pages: 2

Premium Essay

British Airways Corporate Communication

...Name- Abhinav kalra Class- PGDM (RM) Roll no. 56 British Airways Corporate Communication Contents 1. Summary ......................................................................................................................................... 3 2. Introduction .................................................................................................................................... 4 3. Corporate Communication Strategy ............................................................................................... 5 4. External Communication................................................................................................................. 7 5. Internal Communication ..................................................................................................................... 8 6. Corporate Image, Identity and Reputation ..................................................................................... 9 7. Conclusion..................................................................................................................................... 11 8. Biblograpghy .................................................................................................................................. 12 Any organisation that fails to realise the need and importance of communication...

Words: 3021 - Pages: 13

Premium Essay

British Airways Ratio Analysis

...British Airways Ratio Analysis In: Business and Management British Airways Ratio Analysis Financial Reporting and Analysis: Case Financial Analysis of British Airways  Submitted To: Submitted by: DATE: 27th December 2009 CONTENTS Introduction Page. 3 History Page. 3 Board of Directors Page. 3 Ratio Analysis Page. 4 - 13 Conclusion Page. 14 Introduction British Airways plc or BA is the flag carrier airline of the United Kingdom. BA has its headquarters in Waterside near its main hub at London Heathrow Airport and is the largest airline in the UK based on fleet size, international flights and international destinations. Its second hub is London Gatwick Airport. British Airways has discontinued all direct overseas flights from UK airports other than Heathrow, Gatwick and London City Airport. BA's UK passengers originating at non-London airports must now connect via London or use other airlines with direct services. History British Airways (BA) was created in 1972, when the British Overseas Airways Corporation (BOAC) and British European Airways Corporation (BEA) managements were combined under the newly formed British Airways Board. This effectively made British Airways into the national airline for the United Kingdom and due to the lack of competition; the new company began to exert its position and significance. BA was one of only two airlines to operate the supersonic Aerospatiale-BAC Concorde; inaugurating the world's first supersonic...

Words: 260 - Pages: 2

Premium Essay

British Airways Study Case

...British Airways (A) Becoming the “World Favorite Airlines” British Airways: 1980-1993 Product of the merge in 1972 between two states run airline: British Overseas Airways Corporation (BOAC) and British European Airways (BEA). In the 1980’s the airline company was known as the “Bloody awful”, due to his lack of a good customer service and his unpunctuality. To end with the situation Margaret Thatcher hired Lord King who made drastic changes in the national company. In 1979, the State took the decision to sell BA into a private ownership, intend to avoid the £1 billion bill. The company was doing any benefice and was losing money, so intent to attract private shareholders, drastic decision need to be made. As action of Lord King, hired to put the company in shape for the privatization, he decided to break the contrasting cultures existing in the company due to the merge. A report commissioned by Lord King was made to determine what needed to be done to make the privatization possible. That’s how was created the Survival Plan: Cut the workforce; selling assets; the pruning back of the route network. Then due to the recession approaching in 1982, Lord King proposed the Recovery Plan: rescheduling of orders, reduce staff member, restructuration into 3 divisions. In 1983, the British agency Saatchi & Saatchi, was handling the advertising and in charge of the new image of BA with a budget of £17.5m. The commercial was a new kind in the airline advertising and ran over...

Words: 1133 - Pages: 5

Premium Essay

British Airways Ratio Analysis

...Financial Reporting and Analysis: Case Financial Analysis of British Airways  Submitted To: Submitted by: DATE: 27th December 2009 CONTENTS Introduction Page. 3 History Page. 3 Board of Directors Page. 3 Ratio Analysis Page. 4 - 13 Conclusion Page. 14 Introduction British Airways plc or BA is the flag carrier airline of the United Kingdom. BA has its headquarters in Waterside near its main hub at London Heathrow Airport and is the largest airline in the UK based on fleet size, international flights and international destinations. Its second hub is London Gatwick Airport. British Airways has discontinued all direct overseas flights from UK airports other than Heathrow, Gatwick and London City Airport. BA's UK passengers originating at non-London airports must now connect via London or use other airlines with direct services. History British Airways (BA) was created in 1972, when the British Overseas Airways Corporation (BOAC) and British European Airways Corporation (BEA) managements were combined under the newly formed British Airways Board. This effectively made British Airways into the national airline for the United Kingdom and due...

Words: 3252 - Pages: 14