Management Structure And Philosophy Of British Airways Management Essay

British Airways born in civil aviation, the inventory days next to World War 1. This is the first schedule air service in world on 25th August 1919 which passed 90 years and air travel has changed past all acknowledgement. On 25th August 1919, Aircraft Transport and Travel Limited operated first international daily scheduled air service in the world from London and Paris. In 1939 Imperial Airways and British Airways were nationalised and come to a new name British Overseas Airways Corporation (BOAC). BOAC continued to operate long haul services from South America by British South American Airways (BSAA). This company was combined with BOAC in 1949. After 1970 BOAC and British European Airways newly formed British Airways Board. In 1980 Government passes The Civil aviation Act and sell its share in British Airways. In 1981 Lord King appointed as chairman and make a change in management and restored company for profitability and for privatisation. British Airways have high standard corporate governance which they are committed. The business view is determined by the strategy setting out the sharing option and located for financial outcome service standards and recognize and according to importance improvement chance to deliver those goal. In an amazing tough trading environment British Airways have to point on strong on more close themselves through the immediate situation, while preparing the business for better economic times. In current year they have planed out for a long -term goal for their business. Which is to be the worlds leading global premium airline. This report is a view of British Airways strategy and strategy evaluation .

Management structure and philosophy aligned

British Airways is committed top level of corporate governance. For good governance the board is

responsible by the company shareholders. The board directors ensure that the company’s risk

assessment, ability to fined solution on management, strategic planning, operating management.

Inevitable functions are given authority to committees, consisting of non-executive directors as

containing within this section. The company arrange their board meeting four times a year and in

generally when necessary, to except all subject related to overall control, strategy of The British

Airways and in successful planning of the company. For these desired effect a schedule of the matters

wait for board decision has been growing successfully. these schedule has been reviewed at least once

in a year. The board leaded by the chairman and the executive management of the company leaded by

the Chief Executive. The Board agenda setting is The Chairman responsibility. The Chairman also

ensure that the Board member received timely and accurate and clear information. The non-executive

directors try to know detailed of the management performance specifically as to the possession of the

company principals , strategy of the financial information and management control and risk. All of the


directors regularly and timely get information which is company priority in the board meeting. They can

also ask company secretary any other information they need. If any non-executive director have any

concern about running of the company they have to discuses with one of the non-executive directors or

company secretary or the Chairman.

The company main aims were to build on Terminal 5’s strengths to upgraded the customer experience, make the business continue more cost effective, grow the company operations and make prominent part of the corporate responsibility in the business. The management need to revise their plan and priority to reset when the fuel price going up global downtown meant.

The company vision is become most responsible airline in the world and all their corporate responsibility they have to bought tougher under the banner ‘One Destination’. it is a great challenging goals for the company for further reduce carbon emission, recycling and reduce waste underrating air and noise pollution.

Organisation culture and growth of strategy

Despite reduction in economic, British Airways have continued to become larger or grater where it makes economic main idea and meet the needs of their customers. They opened new routes from London to Hyderabad in India and St Kitts; they also opened open skies, their alternatively flying from continently Europe to North America in June 2008, and afterwards purchased L’Avion in July 2008, and they have tell publicly the launch of the first London City to New York JFK service to start end of this year. Investing in well organised and subject to influence on new aircraft makes sense, ever in these tough times. With the delivery of their new Boeing 787s delayed, they contracted six Boeing 777-300ER aircraft.

In February the one world alliance which involving 10 partner airlines and celebrated its 10th anniversary. The highly success of the alliance is continued, in its development it is now a important point. In august British Airways applied for anti-trust immunity to operate a joint business across the Atlantic where American Airlines and Iberia one world members. The EU and US competition authorities are currently deciding that their major competition in their global alliance, star and sky team already enjoy the route where they should be able to enjoy the same route.

Global strategy at the corporate level

British airways strategy is global. Most of the countries they have their branch and fly most of the countries of the world. All of the branches of the world, they recruit local people for business communication. British airways most important aim is to make sure that they offer an upgraded service to everyone who chooses to fly with them. They take constantly to large number of customers to get a real understanding of their needs. British airways survey every month on their customer that what is their demand and what type of change their customer want ect. This is vital for the company to secure their position as the world’s leading global premium airline. Their staffs play a vital role in providing the upgraded travel experience. They are committed to excellent service and are investing heavily training customer-facing colleagues. They do training all of the branches of the world they have . Every year the training program rolling which is mainly on service style training. The company has a statement of Business Principles applicable to all employees. The company also has a cod of Business Conduct and Ethics which applies to all employees in global. These are two of a number of Standing Instructions to employees of the group designed to enhance internal control. On the Finance Statement Instructions, these are regularly updated and made available to staff though the Company’s intranet. Effective corporate governance remaining key to the business. It maintains a strong and effective internal control environment in global which the company continues to review its control framework to ensure . The producing result of the framework has been under regular review by the management board. The Group will continue to comply with the Combined Code on corporate governance and UK listing Authority rules and apply all of their branch..

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Financial performance

British airways audit report published on the group and parent company financial statements of British airways Plc for the year ended March 31, and include the Group consolidated income statement, the group and British Airways Plc balance sheets, the group and British Airways Plc cash flow statements, the group and British Airways Plc statements of changes in equity. Under the accounting policies the financial statements set out. Directors remunerations report information describe and also audited.

The financial company is made only to the company’s members , as a body, in consensus with section 235 of the company Act of the Companies Act 1985. This report have an opinion that is this financial statement give a truth and right view or it is a part of directors remuneration report to be audited. This audit review the corporate governance statement reflects the company’s compliance. British Airways all other information included in the annual report and consider either it is reliable with the audited financial statements. The other information include only the director’s report and business review, the Remuneration committee, the Chairman’s statement, the chief Executive’s review, the chief Financial officer’s report and the corporate governance statement are unedited part of the report.

British Airways followed the audit in consensus with International Standards on Auditing, issued by the Auditing Practices Board. On a test basis of evidence the audit includes examination which relevant to the amounts and disclosures in the financial statements and part of directors remunerations report to be audited. It also includes an assessment of the significant estimates and judgements made by the directors in the preparation of the financial statements, and of whether the accounting systems are adopt to the Group and the company situation, consistently applied and sufficiently disclosed.

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The Directors whose are listed in Board of Directors are responsible for the annual report and the financial Statement preparing in according to applicable Law and follow international financial reporting standard as adopted by the EU. They are also responsible for protection the assets of the Group and therefore taking reasonable steps for the avoidance and discover of dishonesty and other irregularities.

Environmental change and competitive position

Climate change is an issue of importance as a airline company and they have long-term commitment to address it. Their climate change programme covered some of the main areas like policy measures to curb emissions growth, support for scientific research, voluntary carbon offsetting. Their target is to reduce their net CO2 emissions by 50 percent by 2050, relative to 2005. Going for this target will require more invest in new technology, sustainable biojet fuels and cost-effective emission which will be reduce other sectors of economy on global carbon trading market. They are investing in silent aircraft and technology and aim to change the way they fly to reduce the noise of their activates. They have set a target in 2015 reduce 15 percent noise in average. British airways aim is to minimise the west they do and their customer. They trying to reuse and recycle and reduce disposal. 1n 2008 they did 35 recycle at Heathrow and Gatwick and it will be increase on 50 percent in 2010.

Conclusion and recommendation

In response to delivery delays for British Airways new efficient Boeing 787 aircraft, they have contracted for six Boeing 777 due to start arriving in 2010. They ordered two Airbus A318 aircraft for crossing Atlantic service from London City Airport. As well British Airways ordered six Embraer and five E170 aircraft to replace some of the aircraft whose are currently operated from London City Airport. The Company also improve their performance in ground as well. The main activities of British Airways Plc and its subsidiary responsibility are the operation of international and domestic scheduled air services for the carriage of passengers, cargo and mail and the delivery of subsidiary service. The global airline industry is violently competitive, heavily controlled and totally uncovered to changes in customer behaviour and consumer sureness. The current economic environment presents a new challenge. British airways must have concentrate their efforts to seize long-term opportunities for growth.

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