British Airways is the most popular and the leading airline associated with the international airline industry. It was founded on 31 March 1974 under the collaboration of British Overseas Airways Corporation (BOAC) and British European Airways Corporation (BEA) management. In January 1976, British Airlines became the first airline to provide supersonic passenger service. In 1981, Sir John King became the chairman of British Airways, Under his chairmanship, he helped the company to become private. By 1987 he also managed to make British Airways the most profitable airline in the world by using the slogan “The World’s Favourite Airline”.
In 1993 British Airways established British Asia Airways and took the control of Brymon Airways to make BA Connect. Robert Ayling became the CEO of British Airways in 1993. But inauspiciously in 1999, the profit of the airways got dropped by 84%.and, as a result, Robert Ayling was terminated from British Airways. Till 2008, British airways worked very hard to get recovered from its loss and introduced a collaboration plan with Iberia airlines, and opened its new headquarters in London Heathrow Airport’s Terminal 5. IAG (the third largest airline company in the world became the parental brand of British airways and things started going in favor of British Airways.
In 2013 British Airways added 42 Boeing 787s, with the first of its 12 Airbus A380s due to touch down in the UK on July 4 in its collection. Then the year 2020 becomes the most difficult and challenging year for British Airlines.
Due to the Covid-19 Pandemic and increasing cases for the same, British Airways was obliged to reduce its flying schedule by around 66% as compared to 2019. Hence, as result, the things again don’t work in the favor of British Airways, and it faced heavy loss. Because of severe loss, the airline company was forced to drop 10,000 employees. The airline also made a decisive decision to stop the entire fleet of 32 Boeing B747-400 aircraft for nearly after 50 years.
Also in 2021 the Covid-19 pandemic didn't go away from the work but to get recover from the heavy loss and with the help of the government policies, British Airways decided to get back on the track with profit along with some British airways covid rules. But the time didn’t go very well for the airlines. Thus, the airlines faced many challenges, and till now it hasn’t become the same as in 1987.
According to research conducted by the International Air Transport Association (IATA), the coronavirus pandemic will give a heavy loss to the revenue of the Airline Industry. They said that coronavirus can drop the revenue of the airlines by $314 billion. Talking about British Airways, the International Airlines Group (Present Owner of British Airways) announced that they faced a loss of $ 7 Billion in the year 2020. IATA announced that the capacity of the passenger was one-third as compared to 2019 and it is the major reason that British Airlines is facing a heavy loss.
International Air Transport Association (IATA) said that it is very difficult for British Airways to get a profit this year (2021). But they will try their best to reduce their losses and to come on track with profit. They made multiple changes and revised their policies so that they can reduce the losses of the Airlines. They made digital health passes for passengers so that they can ensure the safety of passengers while traveling. This plan worked and helped a lot to both passengers (in remaining safe from the coronavirus) and the company (in reducing their losses).
In an interview, the senior authorities of British Airways said “The aviation industry stands with governments in putting public health at the top of the agenda. Passengers who are travelling rapidly will require clear guidance for unwinding current restrictions when the time is right. We know there is pent-up demand for travel and people want to fly. Vaccinations are progressing well and global infections are going in the right direction. We’re calling for international common testing standards and the introduction of digital health passes to reopen our skies safely”. Even after the huge losses, the shares of International Air Group (IAG) were up by 3.5%.
British Airways made several plans and policies associated with the pandemic and the health of its passengers. This results in customer satisfaction and helped British Airways reduce its huge losses. In July 2021, British Airways tried to raise sustainability funds. It raised the funds of $ 785 million and saved that funds for the delivery of seven aircraft. Even after taking lots of steps in order to reduce the losses, British Airways is still facing lots of challenges and issues in terms of profit and loss. But International Air Transport Association (IATA), the present owner of British Airways thinks that they can do better in the future to make the airline no-1 in terms of revenue.
The travel and tourism sector is regarded as the most profitable sector from which the country generates huge revenue, but from 2022 due to the Covid-19 pandemic, the industry has faced lots of difficulties, challenges, and losses. According to a report, more than 21.5 million people from the travel and tourism sector have lost their jobs (worldwide). The airline industry is known as the most important part of the traveling industry. After the Covid-19 pandemic, it is very difficult for this industry to make themselves out of this loss. But the world is trying its best to get out of this pandemic and to run smoothly and profitably as it was earlier.
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SeatMaestro. (2021, October 14). British Airways. https://www.seatmaestro.com/airlines-seating-maps/british-airways/history/
Sweney, M., & Topham, G. (2021, February 26). British Airways owner IAG hit by record €7.4bn loss. The Guardian. https://www.theguardian.com/business/2021/feb/26/british-airways-owner-iag-hit-by-record-loss-covid
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