Effectiveness and Efficiency of British Airways and Virgin Atlantic Introduction British Airways is the largest airline and flag carrier of the United Kingdom. BA was re-launched in the 1980s as the "the world's favourite airline" and wants to project itself as a global airline. British Airways’ corporate mission is “To be the undisputed leader in world travel”. British Airways' new mission provides its management with a new mandate to be more than just an airline. 'British Airways is aiming to set new industry standards in customer service and innovation, deliver the best financial performance and evolve from being an airline to a world travel business with the flexibility to stretch its brand in new business areas'
(Jack Yan & Associates Media & Communications, Undated). Virgin Atlantic was established by Sir Richard Branson in the 1980s and grew to become Britain's second biggest long haul airline. The company’s mission is “To grow a profitable airline, that people love to fly and where people love to work" (Virgin Atlantic, Undated). Virgin Atlantic works hard to retain customer loyalty. Thanks to its strategic planning and implementation, Virgin Atlantic managed to remain long-term profitable and successful. SWOT Analysis
Strengths British Airways | Virgin Atlantic | - Strong brand name and brand image
| - Established and highly-recognizable brand image / brand name
| | | | | - BA Key Messages – consistency; reliability; quality of offering
| - Differentiation based on value, service, and price
| - BA is the largest airline and flag carrier of the United Kingdom
| - The second largest long haul airline in the UK and the third largest European carrier over the North Atlantic
| - British Airways' strategy and aircraft purchases are seen as an industry leader "benchmark" that influences other carrier's decisions
| | - Airline Franchising / Partners & Alliances - oneworld® partner airlines
| | | - Innovative features that distinguish the company name
| - Social and Environmental performance
| | - Outsourcing or disposal of services
| | | - Strong, well-designed organisational structure
| | - Strong leadership development programme
| | - Talented management team lead by Richard Branson
| | - Universal appeal to wide variety of customers
| | | | - The most child-friendly airline
|
Weaknesses British Airways | Virgin Atlantic | - Lack of marketing strategy to win customer loyalty
| - Ineffective utilization of alliances and partnerships
| - Cost-cutting by reducing jobs (moral/de-motivation)
| - Marketing primarily focused on London market
| - Differentiating on price with LCC’s
(Low Cost Carrier)
| - Some underdeveloped channels – Ex: Premium Economy
| - Lower fares due to high competition
| - Underdeveloped distribution system
| - Downturn in passenger demand
| - Relatively small aircraft fleet
(38 airplanes)
| - Insufficient hedging for future fuel needs
| - Limited destinations
(30 destinations)
| - BA may have shifted its emphasis from a market-led approach to an asset-led approach
| | - Cutting flights to the US and the Middle East
| |
Opportunities British Airways | Virgin Atlantic | - ‘One-world alliance’ Terminal 4
| - Alliances and mergers (the future of the industry)
| | - Airline growth post-recovery because of the trimming of the airlines since 2000
| - 2012 Olympics Official Airline
| | | - “Open Skies” opportunities
| | - 280 airports within Europe (growth opportunity)
| | | | - Increased tourism with the improvement of the economy
| | - Latin America as a low-terror, high growth potential market
| | - No major carriers dominating Intra-EU aviation market
| | - Germany, Spain, and France (next largest markets after UK)
| | - Asian market expectation (fastest growing over the next ten years)
| | - Air services within the European Union were fully deregulated and liberalised
| |
|
