The purpose of this report to focus on British airways and
investigate key areas like Profitability ratio, structure ratio, British
airways strategy review, main competitors, company performance etc. FAME report
data (UK) will be used for the financial information. This report will provide
an overview of British airways weather an investor should invest in British
British airways were established in 1974 and it is one of the
largest and widely known airline company in the United Kingdom (Horner, and
Swarbrooke, 2004). The company offer many services included carry passengers,
cargo and letter (Madar, 2015). According to (FAME DATA) and (Nasdaq, 2017) the
total revenue of the company in year 2016 was £11,443 million which was 1.0% up
as compare to year 2015.
3.0 British airways strategy
The market size and growth of airlines industries have been
grown rapidly. However, in 2014 researched by (Lee) indicated that the demand
of customers has increased yearly in airlines industries. Nevertheless,
according to British airways (Annual report 2009/10) indicated that the company
focus is to provide premium service to customers and remained premium brand.
Moreover, British airways market strategy is to target long haul premium customer,
build a strong and positive relation with customers by delivering outstanding
services, building a strong position in global cities and ensure that company
meet with customers desires and improve margins through new revenue streams
(see appendix 1).
4.0 Merger with Iberia airline
On April 8, 2010 British airways and Spanish airline Iberia have
sign an agreement to merge and create the biggest airline in the world. This is
because both firm was struggling financially and in merger both companies said
it would be beneficial for both airlines, shareholders and employees (see
appendix 2). British airways and Iberia airlines will save 400 million euro
(£350 million) a year with the help of merger, the purpose of the merger safe
both companies from future damages (BBC News, 2010) and (Riley, 2012).
5.0 Financial analysis of British