British Airways.

Essay by rexliaoUniversity, Master'sA-, October 2003

download word file, 13 pages 4.6

Company profile:

British Airways is the world's largest international passenger airline. The main activities of British Airways and its subsidiary undertakings are the operation of international and domestic scheduled and charter air services for the carriage of passengers, freight and mail and the provision of ancillary services. The Airline had a total of 373 aircraft in operation as of September 30, 2001.

In the United Kingdom, the Airline provides most of the operational services it requires for the handling of passengers and cargo. At overseas airports, apart from JFK, the Airline subcontracts the provision of the majority of its ground handling requirements. Runway, ramp and terminal facilities are provided by airport operators that charge airlines for the use of these facilities, principally through landing, parking and passenger charges. Navigation services are provided to aircraft by countries through whose airspace they fly or by international bodies such as Eurocontrol. Navigation charges are generally based on distance flown and weight of aircraft.

The Company has a 25% equity investment in Qantas Airways Limited, and has a Joint Services Agreement with the airline. The agreement allows the two airlines to cooperate in developing schedules and fares and to share revenues and costs for the core 'Kangaroo' routes between Europe and Australia. The Company also has a 9% investment in Iberia Líneas Aéreas de España, S.A. and an 18.3% investment in Comair Limited.

British Airways 's cargo business is operated as an independent contribution center. The majority of its cargo is carried in the holds of passenger aircraft, the balance on leased or part-chartered freighter aircraft where market conditions allow their deployment. This allows the Airline to maximize the use of its scheduled route network to provide a worldwide cargo service.

In Europe, the airline has four road haulage hubs that feed cargo...