Section B - BA Flashcards

1
Q

What 7 topics can you talk about BA for?

A
Consumer Protection Law
Employment Law
EU Law
CSR
Contingency Planning
Mission Statements
New Leadership
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2
Q

What happened to the airline industry in terms of consumer protection?

A

Had to entitle passengers to compensation for cancellations, delays and overbooking.
If flights are cancelled the airlines accustomed to providing meals, refreshments and accommodation for free or find them alternative transport

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3
Q

What happened to BA in terms of employment and EU law?

A

They discriminated against an employee for wearing a Christian cross.
British government was ordered to pay £1,600 in damages and £25,000 in costs

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4
Q

What did their Employment and EU law problem stimulate?

A

A change in BA policy in 2007 that allows employees to wear symbols of religion

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5
Q

What were BA the first airline in producing?

A

An annual environmental report

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6
Q

What is the name of their charity, how much did they aim to raise and how much did they raise (2013)

A

Flying Start
Aim - £6m
Actual - £6.75

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7
Q

Who have they had a $500m partnership with, and what do they do?

A

Solena Fuels Corp

They develop a waste-to-fuel plant and BA have used jet fuel produced at that plant for 10 years

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8
Q

What two new plane models have BA added to their fleet and what are their benefits?

A

A380 - world’s largest passenger aircraft, with 16% less emissions per seat than it’s predecessor.
Boeing 787 - 20% more fuel efficient than the 767 it’s replacing.
The use of these two aircraft will reduce noise pollution by 15%

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9
Q

How much of their waste do they aim to recycle? And how much of their waste is sent to landfill?

A

Aim to recycle 60% of waste.

Only 3% of waste is sent to landfill, nearing their 0% target

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10
Q

What happened to BA that required them to have a contingency plan?

A

12,000 members of ‘Unite’ union were supporting a 3-day walk-out

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11
Q

What did BA do to each flight in response to the strike?

A

Each flight had 1 less member of staff on board to spread available staff

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12
Q

How many planes were grounded at Heathrow? and how did this affect long haul and short haul flight percentages?

A

80 planes were grounded.
60% of long-haul flights expected to operate.
30% of short-haul flights expected to operate.

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13
Q

How did BA overcome the grounding of their flights?

A

Most flights form Heathrow were operated by other companies

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14
Q

What percentage of passengers would still reach their destinations, and how many flights were cancelled?

A

65%

1,100 out of 1,950

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15
Q

How did BA overcome their cancelled flights?

A

They used 1,000 volunteer cabin crew and chartered 22 jets including 3 RyanAir planes complete with cabin crew

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16
Q

What is BA’s mission statement?

A

The strategy of BA includes the innovation in technological accessories, customers’ relationship, employee relationship, safety and security of stake holders and so on

17
Q

What was the name of BA’s new leader and when did they join?

A

Willie Walsh - 2005

18
Q

What was Walsh’s main objective and how would he achieve this?

A

To achieve a 10% operating margin.

Cut costs, increase revenues, eliminate loss making operations

19
Q

What is a large problem with not meeting the margin?

A

Shareholders wouldn’t receive a dividend, which hadn’t happened since 2001

20
Q

What factors would impact the margin? And how would this impact future finances even if they achieved the margin in 07/08?

A

Problems with T5.

This would reduce margin to 7% in 09, cutting profits by 25% and taking as much as £250m off the bottom line

21
Q

What happened to BA’s share and stock?

A

Shares have fallen 60% in a year.

Stock is trading lower than the £3 it was when Walsh took over

22
Q

What could Walsh blame his fiscal problems on?

A

Price of oil was at an excess of $100 a barrel.

but other airlines had the same problem but were still able to achieve double digit margins