- CAPA Analysis
- Schedule Analysis
- Route Maps
- US Route Data
- Annual Reports
- Print Summary
- IATA Code
- ICAO Code
- Corporate Address
- British Airways Plc,
PO Box 365,
- Main hub
- London Heathrow Airport
- United Kingdom
- Business model
- Full Service Carrier
- Domestic | International
- Joined Alliance
- Association Membership
- Codeshare Partners
- Aer Lingus
Comair (South Africa)
KLM Royal Dutch Airlines
British Airways (BA) is the national carrier of the United Kingdom, a subsidiary of publicly-listed International Consolidated Airlines Group (IAG), and is based at London Heathrow Airport with a secondary base at London Gatwick Airport. Using a fleet of wide and narrow-bodied Airbus and Boeing aircraft, BA’s extensive network, including that of franchise partners Sun Air (Turkey) and Comair (South Africa), includes services to Europe, North America, Latin America, Canada, Africa, Asia and Australia. BA is a founding member of the oneworld alliance.
Location of British Airways main hub (London Heathrow Airport)
International Airlines Group share price
3,069 total articles
266 total articles
Etihad's announcement that it was buying 33.3% of Switzerland-based Darwin Airline was made on the first day of the Dubai Airshow and was easily lost in the fury of orders announced that day.
Darwin only flies aircraft with 50 seats, less than the number of premium seats that will be on many of the 350-plus widebody aircraft Gulf carriers ordered at the airshow. But the announcement is significant, and three reasons stand out.
First, for Etihad the carrier will "connect the dots" in Europe for itself and partners, linking hubs but also tertiary cities, which have largely been passed over by Gulf carriers. Many of these cities are served by the Lufthansa Group. This gives rise to the second significant impact: on Europe's legacy carriers. Gulf carriers changed their long-haul business while European LCCs decimated short-haul. Regional traffic was always typically a burden, and will come under further pressure following Etihad's announcement. Third is that Darwin Airline will re-brand as "Etihad Regional", and Etihad openly states Darwin is only the first carrier to use this new brand. As the industry still digests Etihad's partnership and equity strategy, Etihad promises to change another component of aviation – and raise the stakes in the liberalisation of the industry, especially by stamping its name on a European carrier.
International Airlines Group: 2015 target raised thanks to BA & Vueling; Iberia still has work to do
As CAPA predicted, IAG increased its operating profit target for 2015 at its recent capital markets day. This reflects better progress than previously expected at British Airways, the integration of Vueling into the group and additional growth at both BA and Vueling.
The group’s target has been raised from EUR1.6 billion to EUR1.8 billion. British Airways’ own 2015 operating profit target has been raised from GBP1.1 billion to GBP1.3 billion. This would bring BA to an operating margin in the region of its best-ever level of 10%.
The increase in the BA target, translated into EUR, is more than the increase in the group target. The implicit reduction in the Iberia target increases the pressure on its restructuring programme to create a competitive cost base. Nevertheless, the group as a whole now faces the real prospect of generating a return on capital ahead of its cost of capital.
A corporate leader of any organisation requires an unusual, sometimes extraordinary range of skills. Inevitably not every CEO has these; nor does having the skills necessarily always triumph over external forces. Timing is not everything but it is important. With time, those external forces change the skill sets needed, for example when an industry is undergoing major upheaval.
Arguably, given the complexity of the airline business, a leader in this industry has greater demands placed on him (rarely her; there are very few women CEOs). And today the world must seem a particularly hostile place for legacy airline managements and their workforces, under siege from all directions. Meanwhile the Gulf carriers and many new short-haul low-cost models are changing the demands made on competitors, as protectionism slips away and hiding places become scarce.
This CAPA report examines some of the features involved in making a great airline CEO – or not.
In 3Q2013, IAG continued the turnaround in its operating result that began in 2Q2013. All three of its main brands – British Airways, Iberia and Vueling – saw an increase in their result from the same quarter of 2012. The improvement was mainly driven by healthy unit revenues, although these were diluted by currency effects, and the addition of LCC Vueling in the full quarter for the first time.
It seems that IAG’s prediction that Iberia’s restructuring programme would start to bear fruit in the second half of the year is being proven correct.
Moreover, new FY2013 guidance, for an operating result of around EUR740 million, is ahead of IAG’s previous target, even allowing for the Vueling acquisition. After its 2Q2013 results, we asked if that was a turning point for IAG? At the moment, it would seem that the answer is yes.
US carrier results in their Atlantic entities during 3Q2013 reflect an uptick predicted by IATA in the region at the onset of the quarter as business confidence is showing signs of improvement and economic conditions in Europe and the US are showing some positive development.
While the 16-day US Government shutdown in Oct-2013 may put a slight damper on corporate demand, most of the major US airlines believe the North Atlantic will continue to gain momentum as it seems capacity growth appears rational.
American and Delta continue to tout their respective joint venture business arrangements with their respective partners in the oneworld and SkyTeam alliances. Meanwhile US Airways’ strategy to grow its corporate revenues across the Atlantic also appears to be bearing fruit. The carrier is actively pursuing corporate accounts in Europe without the benefit of joint sales included in the immunised trans-Atlantic joint ventures operated by the three large global groupings.
Finnair celebrates its 90th birthday on 1-Nov-2013, making it one of the world’s oldest airlines. It also has one of the newest CEOs, Pekka Vauramo, who joined on 1-Jun-2013.
Finnair’s strategic niche is based on using its Helsinki hub to connect Europe with Asia. While it saw traffic growth and market share gains in both regions in 3Q2013, the weakness of the yen led to a collapse in Asia revenues. The approval on 16-Oct-2013 of Finnair’s application to join the BA/JAL revenue-sharing joint venture on routes between Europe and Japan could not have come at a more opportune moment. The resulting coordination of pricing and schedules should help to counter revenue weakness.
Nevertheless, the fall in Finnair’s 3Q2013 profits and its consequent profit warning for the full year highlight the scale of the challenge facing Mr Vauramo. Although Finnair achieved a further reduction in unit costs, he will need to push through more cost cuts, while simultaneously seeking to shore up unit revenues.
Great news! CAPA now offers email and phone contact functionality through its partnership with Gooey. Corporate access for this feature is USD1000 per annum.