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British Airways

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British Airways (LSE: [BAY], NYSE: [BAB]) is the largest airline of the United Kingdom. It is also the second largest airline in Europe (Behind Air France), with more flights from Europe across the Atlantic than any other operator. Its main hubs are London Heathrow and London Gatwick, with wide-reaching European and domestic shorthaul networks, including smaller hubs at other UK airports including Manchester, from which some longer-haul flights are also operated.

Contents

History

Components
British Airways
BA Connect
Franchisees
British Mediterranean Airways
Comair
GB Airways
Loganair
Sun Air
Destinations
British Airways destinations
British Airways franchise destinations
Heritage
Imperial Airways
British Airways Ltd
British European Airways (BEA)
British South American Airways
British Overseas Airways Corporation (BOAC)
Other
British Airways ethnic liveries
Timeline of British Airways
Speedbird
The airline's origins go back to the birth of civil aviation and the pioneering days after the First World War. On 25 August 1919 its forerunner company, Aircraft Transport and Travel (AT&T), launched the world's first daily international scheduled air service, between London and Paris. On 31 March 1924, Britain's four fledgling airlines - Instone, Handley Page, Daimler Airways (a successor to AT&T) and British Air Marine Navigation - merged to form Imperial Airways, which developed its Empire routes to Australia and Africa.

Meanwhile a number of smaller UK air transport companies had started flights. These merged in 1935 to form the original privately-owned British Airways Ltd. Following a government review Imperial Airways and British Airways were nationalised in 1939 to form the British Overseas Airways Corporation (BOAC). Post-war, BOAC continued to operate long-haul services, other than routes to South America - these were flown by British South American Airways, which was merged back into BOAC in 1949. Continental European and domestic flights were flown by a new airline, British European Airways (BEA).

The 1950s saw the passenger jet era - led by BOAC, with the De Havilland Comet flying to Johannesburg in 1952, halving the previous flight time. The birth of the mass package-holiday business meant changes for the airline industry. BEA met this by establishing BEA Airtours, which took off in 1970. In 1972 BOAC and BEA were combined under the newly formed British Airways Board, with the separate airlines coming together as British Airways in 1974. British Airways, simultaneously with Air France, inaugurated the world's first supersonic passenger service with Concorde in January 1976.

Privatisation

Sir John King, later Lord King, was appointed as Chairman in 1981 with the mission of preparing the airline for privatisation. King hired Colin Marshall as CEO in 1983. King was credited with turning around the loss-making giant into one of the most profitable air carriers in the world, boldly claiming to be "The World's Favourite Airline", while many other large airlines struggled. The airline's fleet and route map were overhauled in the early years of King's tenure, with brand and advertising experts being recruited to change the airline's image. Over 23,000 jobs were shed in the early 1980s, though King managed the considerable trick of boosting staff morale and modernise operations at the same time.

The flag carrier was privatised and floated on the London Stock Exchange in February 1987 by the Conservative government, with the initial share offering being 11 times oversubscribed. In April 1988 British Airways effected the controversial takeover of Britain's second-force airline British Caledonian, and in 1992 absorbed Gatwick-based carrier Dan-Air.

\"Dirty tricks\"

Soon after privatisation Richard Branson's Virgin Atlantic, which began with one route and one Boeing 747 in 1984, was beginning to emerge as a competitor on some of BA's most lucrative routes. Following Virgin's highly publicised mercy mission to Iraq to fly home hostages of Saddam Hussein in 1991, King is reported to have told Marshall and his PA Director David Burnside to "do something about Branson" ¹. This began the campaign of "dirty tricks" that ended in Branson suing King and British Airways for libel in 1992. King countersued Branson and the case went to trial in 1993. British Airways, faced with likely defeat, settled the case, giving £500,000 to Branson and a further £110,000 to his airline; further, BA was to pay the legal fees of up to £3 million. Branson divided his compensation among his staff, the so-called "BA bonus".

British Airways Concorde, since retired
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British Airways Concorde, since retired

Changes and Subsidiaries

During the 1990s BA became the world's most profitable airline and trumpeted the slogan "The World's Favourite Airline." In 1992 Deutsche BA was established as a subsidiary operating in Germany. By the time it was sold in June 2003 DBA was operating 16 Boeing 737s and was the second-largest German domestic carrier, after Lufthansa.

Lord King stepped down as chairman in 1993 and was replaced by former deputy Colin Marshall, who initially combined the roles of CEO and Chairman. Bob Ayling, who would later take on the role of CEO, was appointed Managing Director by Marshall. Lord King was appointed President, a role created specifically for him, and became President Emeritus in 1997, until his death in July 2005.

In 1995 BA formed British Asia Airways, a subsidiary based in Taiwan. British Asia Airways was set up due to political sensitivities, the Union Jack tailfin being replaced by Chinese characters. Many airlines followed the same practice, e.g. Qantas flew to Taiwan as "Australia Asia Airways" and KLM's Taiwan operations became "KLM Asia". British Asia Airways ceased operation in 2001 when the airline suspended flights to Taiwan due to low yield.

Bob Ayling

In 1996 British Airways, with its newly appointed Chief Executive Bob Ayling, entered a period of turbulence. Increased competition, high oil prices and a strong pound hurt profits. BA management and trade unions clashed and the disruption cost the company hundreds of millions of pounds. In 1997 Ayling dropped BA's traditional Union Flag tailfin livery in favour of world design tailfins, in an effort to change its image from a strictly British and aloof carrier to a more cosmopolitan airline. The move was not a success and Ayling slowed the process, eventually declaring the fleet would sport a dual livery; half a Union Flag design, half the world design tailfins. Ayling pursued a merger with American Airlines, but this was unsuccessful due to the conditions placed on the deal by regulatory authorities, the most painful of which would have been the sacrifice of landing slots at Heathrow.

Positive news during Ayling's reign included cost savings of £750m and the establishment of the successful, but highly subsidised, Go in 1998. Go was a low-cost carrier intended to compete in the rapidly emerging "no-frills" segment. After four years of successful operations, the airline was sold off to venture capitalists 3i and later merged with easyJet. Ayling also sought a reduction of capacity, cancelling Boeing 747-400 orders in favour of the Boeing 777 and rationalising BA's short-haul fleet with an order for the efficient Airbus A319/A320/A321 family.

Rod Eddington

In 1999 British Airways reported a 50% slump in profits, its worst since privatisation. In March 2000 Bob Ayling was removed from his position. British Airways announced Rod Eddington as his successor in May. Eddington set about cutting the workforce further, dramatically so after the slump caused by the September 11th attacks in 2001. In May 2001 Eddington announced the return of the Union Flag to the entire fleet, reversing his predecessor's rebranding exercise.

Marshall, who had been appointed a life peer in 1998, retired as Chairman in July 2004 and was replaced by Martin Broughton, former Chairman of British American Tobacco.

On 8 March 2005, Broughton announced that former Aer Lingus CEO Willie Walsh would take over from Rod Eddington upon his retirement in September 2005.

During the fiscal year ending 2005, BA carried some 35m passengers on revenue exceeding £7.8bn, posting a pre-tax profit of £415m. It employs 51,939 staff.

Willie Walsh

In September 2005 new CEO Willie Walsh announced changes to the management of British Airways, with the aim of saving £300 million by 2008, the cost of the move to Heathrow's Terminal 5.

Since 2004, BA has strongly marketed the full-service nature of its domestic flights (i.e the use of principal airports, complimentary food and drink) in response to the low cost operators aggressive pricing, even though its main full-service UK rival bmi has now abandoned some "frills" on its domestic network. Walsh on the other hand pledged to retain the full-service model, and sees it as a means of distinguishing BA from the competition and that customers will still be willing to pay extra for added levels of service.

The airline won the Skytrax Airline of the Year award in 2006 for the first time [link].

Industrial action

Over 600 BA flights were grounded on 11 August 2005 - 12 August 2005, when baggage handlers, loaders, and cargo staff went on strike in support of laid-off catering workers.

Financial performance

Year ended Turnover (£m) Profit/loss before tax (£m) Net profit/loss (£m) Basic eps (p)
31 March 2006 8,515 620 467 40.4
31 March 2005 7,772 513 392 35.2
31 March 2004 7,560 230 130 12.1
31 March 2003 7,688 135 72 6.7
31 March 2002 8,340 - 200 - 142 - 13.2
31 March 2001 9,278 150 114 10.5
31 March 2000 8,940 5 - 21 - 2.0
31 March 1999 8,915 225 206 19.5
31 March 1998 8,642 580 460 44.7
31 March 1997 8,359 640 553 55.7
31 March 1996 7,760 585 473 49.4

Operations

[British Airways aircraft currently dominate at Terminal 4]
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[British Airways aircraft currently dominate at Terminal 4]

British Airways is based at London Heathrow Airport in London, England. It also has a commanding presence at Gatwick and Manchester International Airport. BA has succeeded in dominating Heathrow to the point that the airport is commonly referred to as Fortress Heathrow within both the airline and its competitors.

As an incumbent airline, BA had grandfather rights to around 36% of takeoff and landing slots at Heathrow, many of which are used for the lucrative trans-Atlantic market. Some competitors, such as Virgin Atlantic, bmi and United Airlines, assert that this stifles competition and some political think-tanks recommend an auction of slots. In recent years British Airways has been buying slots from other airlines including United Airlines, SN Brussels and Swiss International Air Lines, and now owns about 40% of slots at Heathrow.

Some British Airways services are operated by subsidiaries and franchisees:

Subsidiaries

Franchisees

British Airways is pioneering the use of "flat beds" in the premium cabins on their long-haul routes. With introduction of a new flat bed in Club world Summer 2006 and on demand video IFE system keeping up to date with the competition. On 8 September 2004 British Airways announced that it was to sell its 18.5% stake in Qantas, but would continue their alliance (such as sharing revenue), particularly on the Kangaroo routes. Commentators have suggested that while the expected £425m from the sale will be used to reduce the airline's debt mountain it may also be used to fund expansion.

It owns a 9% stake in Spanish airline Iberia.

British Airways is a founding member of the oneworld airline alliance.

Incidents and accidents

|) | }} }}, City of Edinburgh flew through a cloud of volcanic ash and dust from the eruption of Mount Galunggung, causing all four engines to fail. The aircraft managed to glide out of the dust cloud and restart three engines, allowing it to make an emergency landing at Jakarta. |) | }} }}) surged and suffered internal damage just after take off from Los Angeles on a flight to London Heathrow with 16 crew and 351 passengers on board. The crew shut the engine down. They continued the climb and, having checked the performance figures, decided that continuing to London was possible. Because it was cleared for a lower transatlantic flight level than requested, the aircraft suffered a fuel shortage and had to divert to Manchester. The United States Federal Aviation Administration has been critical of the crew's decision, but there was no breach of regulations and BA has supported the crew decision (ref:Flight International, July 2005).

Destinations

Main articles: British Airways destinations and British Airways franchise destinations

Flight Numbers

Generally, odd numbers are for services departing Britain, even numbers are for services entering Britain.

Fleet

British Airways Airbus A319-100 (G-EUPU)
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British Airways Airbus A319-100 (G-EUPU)

Until the late 1990s BA had been mainly a Boeing customer. This has been always been a subject of controversy, as many expect that as a British carrier it would be natural for BA to support the British manufacturing industry and buy Airbus jets (many Airbus subcontractors are based in the UK). The company has defended its decision by arguing that, with the exception of 29 of its 777 fleet, it has always equipped its Boeing aircraft with British-made Rolls-Royce engines; although some of their older 777s are powered by General Electric GE90 engines. This goes back to the 1960s when the company ordered Boeing 707s - a condition was placed on the company that it used Rolls-Royce power for the new jets.

However, it has operated non-Boeing planes in the past mainly as a result of takeovers and joint agreements with other airlines. One example of this was planes acquired through the buyout of British Caledonian Airways in the 1980s; it successfully operated the Douglas DC-10 and Airbus A320 for a number of years. In the late 1990s British Airways placed its own first direct Airbus order, for over 100 A320/A319s to replace its own ageing fleet of Boeing 737s.

BA was an operator of the supersonic Aerospatiale-BAC Concorde supersonic airliner, with a daily service between Heathrow and New York JFK (although the original service was from London to Bahrain). Initially, Concorde was very much a financial burden, placed on the national carrier by the government, and attracted criticism from the press as a white elephant. However Lord King recognised the charismatic importance of Concorde to British Airways. BA used Concorde to win business customers, guaranteeing a certain number of Concorde upgrades in return for corporate accounts with the airline - a key factor in winning business from transatlantic competitors.

With the Paris Crash in 2000, the September 11, 2001 attacks and escalating maintenance costs, the future of Concorde was limited despite the expensive modifications after the crash. It was announced (on 10 April 2003) that, after 24 October 2003, they would cease scheduled services with Concorde, due to depressed passenger numbers. The last day of its Saturday-only London Heathrow to Barbados Concorde flight was on 30 August 2003.

Current Fleet

The British Airways fleet consists of the following aircraft (at December 2005):

Type Number Seats Notes
Airbus A319-100 33 126 Shorthaul European and UK domestic routes
Airbus A320-100 5 149 Shorthaul European and UK domestic routes
Airbus A320-200 21
(7 on order) 		149-150 Shorthaul European and UK domestic routes
Airbus A321-200 7
(3 on order) 		194 Shorthaul European and UK domestic routes
Boeing 737-300 5 126 Shorthaul European and UK domestic routes
Boeing 737-400 18 147 Shorthaul European and UK domestic routes
Boeing 737-500 9 110 Shorthaul European and UK domestic routes
Boeing 747-400 57 351 International routes
Boeing 757-200 13 180 Shorthaul European and UK domestic routes
Boeing 767-300ER 21 181-252 Longhaul and shorthaul routes to the Caribbean and Europe
Boeing 777-200 27 219-224 International routes
Boeing 777-200ER 16 274 International routes
Boeing 777-300ER (10 on order)

In March 2006, the average age of British Airways fleet was 9.7 years old.

British Airways offer between two and four classes of service on their longhaul international routes. World Traveller (Economy Class) and Club World (Business Class) always feature. Most aircraft are also fitted with World Traveller Plus (Premium Economy) and FIRST (First Class).

Current longhaul international seat pitches are as follows:

Future

The long-term replacement of the 767 fleet is likely to lead to a purchase of the Boeing 787 or Airbus A350.[link] Additionally it is now seen likely that selection for the replacement of the Boeing 737 Classic fleet of 34 aircraft will see both Airbus A320 series and Boeing 737NG evaluated, rather than being a simple follow-on order for additional A320 series aircraft. [link] British Airways' decision to replace its Boeing 747-400s will be viewed with interest, whether it selects the Airbus A380 or Boeing 747-8.

British Airways also has options for 99 Airbus A320's, this option applies to the total A320-series.

Tail fins

The Blue Peter special-paint British Airways Boeing 757-200
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The Blue Peter special-paint British Airways Boeing 757-200

Further information: British Airways ethnic liveries
Since its formation in 1974, though to a limited extent until all aircraft were repainted, British Airways aeroplanes carried a Union Flag scheme painted on their tail fins. In 1997, they began to be repainted (and the planes re-named) with abstract world images, Delft pottery or Chinese calligraphy for example, relating to countries they fly to. This caused problems with air traffic control: previously controllers had been able to tell pilots to follow a BA plane, but because they were each painted in different colours they were harder to identify.

Margaret Thatcher infamously covered the tail fin of a model aircraft with the new design using her handkerchief at the 1997 Conservative Party conference. She slated it, claiming they made it look like a third world airline. "We fly the British flag, not these awful things."

In May 2001, chief executive Rod Eddington declared that all BA planes would be repainted with the Chatham Dockyard Union Flag, a design first used on Concorde.

World Cargo

BA is, through its subsidiary British Airways World Cargo, the world's fifth-largest cargo airline. BA World Cargo has global reach through the British Airways scheduled network. In addition to the main fleet, BA World Cargo wet lease three Boeing 747-400F dedicated freighter aircraft from Global Supply Systems on a long term basis, as well as utilising space on dedicated freighters operated by other carriers on European services. Dedicated freighter services allow the airline to serve airports not currently connected to the scheduled network, such as London Stansted, Glasgow Prestwick, Frankfurt-Hahn, Vitoria and Seoul.

British Airways opened its £250m World Cargo centre, Ascentis, at Heathrow in 1999. As one of the largest and most advanced automated freight handling centres in the world, it contains a handling centre for unusual and premium cargo, and a perishables handling centre for fresh produce, of which it handles over 80,000 t per year. BA World Cargo also handles freight at London's Gatwick and Stansted airports, and, through its partner British Airways Regional Cargo, at all of the main regional airports throughout the UK.

Executive Club

Executive Club is British Airways' frequent flyer program. Its purpose is to encourage loyalty amongst British Airways' passengers by rewarding regular passengers with free flights and access to additional amenities and services. It follows a similar pattern to most European carriers' programs, and forms part of the network of frequent flyer programs in the oneworld alliance.

The Executive Club has four levels, or tiers of membership: Blue, Silver, Gold & Premier. Membership of the Blue tier is open to anyone over the age of 18 who has flown a 'qualifying flight' in the past three months. Qualifying flights are those in premium cabins (FIRST, Club World/Europe and World Traveller Plus) or some of the most expensive flexible economy tickets. For each flight taken, the member receives both Tier Points and BA Miles. The total number of tier points earned in a year determines whether the member's level is Blue, Silver or Gold. BA Miles can be redeemed against air travel or in some cases to upgrade to a premium class.

The criteria for membership of the Premier Tier of the Executive Club are not publicly disclosed by the company. It is issued (following consideration by the British Airways Board) to those customers who are considered to control extremely large travel budgets or to those with whom the company particularly wishes to be associated. It is not possible to obtain a Premier card simply by flying a great deal with the airline.

A characteristic of the British Airways Executive Club is that in comparison with other frequent flyer programmes it is relatively difficult for leisure travellers and those who only fly on the cheapest tickets to advance above the Blue tier. Travel on discounted economy fares aid in the advancement of tier status, whereas other airline programs often allow partial credit for discounted economy fares. At Blue level the programme allows customers to accrue BA miles which can be used to purchase flights or upgrades on all BA flights and purchase flights on all OneWorld flights. Leisure fares also accrue Miles, but less Tier points (which are needed to progress to Silver or Gold status). Balancing this the benefits of the Silver and Gold cards are considerable, including access to airport lounges and dedicated reservation lines.

Tier Levels

Blue – Entry 20
Silver – Entry/Renewal 600 (400 in Continental Europe)
Gold – Entry/Renewal 1500 (800 in Continental Europe)
Premier – Entry/Renewal Estimated to be [£1m] a year in business with British Airways

Cabins

FIRST

FIRST is the longhaul first class product of British Airways - the national flag carrier of the United Kingdom.

Check-in Options

FIRST passengers can check in via BA's website ([link]) from up to 24 hours before the flight is scheduled to depart. In addition, passengers can choose their seat on the aircraft to save time at the airport.

FIRST passengers can also check in and choose their seat at the airport using self-service touch-screen check-in kiosks. Passengers then have to take their luggage to 'Fast Bag Drop' points for it to be checked-in. BA currently has installed self-service check-in at selected airports.

BA also offers a dedicated check-in area at London Heathrow, London Gatwick, New York JFK and Barbados. for FIRST passengers, and also offers dedicated desks at other airports around the world.

FIRST Cabin

The FIRST Cabin provides passengers with 14 private demi-cabins on the 777 and 747 which are fully adjustable 6' 6" beds that are provided with duvets and full sized pillows. Also provided are in-seat power for laptops and phones, that are activated shortly after take-off and remain available right up to landing.

The seats are also equipped with large touch activated TVs that provide access to the audio and video services provided, which include 18 video channels and 12 audio channels. Also available is access to a selection of games and the "Moving Map" display. FIRST passengers also have the option of browsing the extensive on board video selection that they can watch at their leisure through the in-seat video player. Passengers are also provided with complimentary noise-cancelling headsets.

Passengers can choose from the renowned À la Carte menu and the FIRST crew will then prepare the meal to order and serve it at any time. The finest Champagnes and wines which have come from around the world are available to passengers.

Club World

Club World is the longhaul business class product of British Airways - the national flag carrier of the United Kingdom.

The information below is current as of May 2006, and will be updated on a regular basis.

Check-in Options

Club World passengers can check in via BA's website ([link]) from up to 24 hours before the flight is scheduled to depart. In addition, passengers can choose their seat on the aircraft to save time at the airport.

Club World passengers can also check in and choose their seat at the airport using self-service touch-screen check-in kiosks. Passengers then have to take their luggage to 'Fast Bag Drop' points for it to be checked-in. BA currently has installed self-service check-in at selected airports.

BA also offers the standard 'old-fashioned' check-in desk option to all passengers. Club World passengers have their own check-in area at most airports, avoiding queues and being served by Club World agents.

Terraces Lounges & Molton Brown Spa

Club World passengers have access to BA's Terraces lounges at most airports where they can enjoy a bar, larder, business facilities, washrooms, libraries/quiet areas, and toy areas for younger Club World passengers. Complimentary pre-flight suppers are available in the lounges before selected overnight flights to and from North America. Complimentary treatments and massages for both women and men are also available (from Molton Brown Travel Spa) at London Heathrow Terminal 1 and 4 (departure and arrival lounges) and New York JFK (departure lounge only).

Club World Cabin

The Club World product is available on all British Airways long haul flights. On the main deck of British Airways' Boeing 747 aircraft and Boeing 777 aircraft, Club World seats are arranged in a 2-4-2 configuration. The Boeing 767 aircraft feature a configuration of 2-2-2, while the upper deck of the Boeing 747 is entirely dedicated to Club World and is configured in a 2-2 layout.

The Club World flat bed features a fully electronically adjustable mattress, foot stall, reading light, privacy divider and a personal TV screen. Also provided are plump pillows and thick blankets, and complimentary headsets. The seats are also equipped with large touch activated TVs that provide access to the audio and video services provided, which include 18 video channels and 12 audio channels. Also available is access to a selection of games and the "Moving Map" display.

Club World also benefits from an improved inflight cabin service, with a wide range of meals available from an "À la carte menu", and on longer flights a "Raid the Larder" option for passengers who feel hungry between meal services. On certain transatlantic flights passengers are given the option of eating in the lounge, and then just after take-off being served hot chocolate and cookies. This has been designed in order to maximize the time for sleep.

British Airways announced recently that they will launch their new Club World product towards the end of Summer 2006. This will be launched alongside a brand new inflight entertainment service that is expected to feature AVOD (Audio Visual On Demand).

Other facts

British Airways Boeing 747-400.
Enlarge
British Airways Boeing 747-400.

External links

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