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Create a 10 pages page paper that discusses british airways finance. British Airways is not in a position to hike the ticket prices, except pass on the excess Fuel Surcharge Costs on to the travelers.
Create a 10 pages page paper that discusses british airways finance. British Airways is not in a position to hike the ticket prices, except pass on the excess Fuel Surcharge Costs on to the travelers. It has become necessary to control costs in all major areas so that the 10% Operating costs could be ensured, and also, net savings of £450 Million in the next two years could also be achieved.” Profit for the year attributable to members of British Airways Plc (‘the Company’) amounted to £451 million during 2006, against a profit on the same basis of £377 million in the previous year i.e. the year 2005.”
For this, it is necessary to know the routes and destinations to which the Airlines operate, the capacities of the planes carrying passengers, the passenger load factor, and the sectors which need to be concentrated for enhanced revenue generation. It would also need to examine the pricing and ticketing strategies adopted by competitors and no-frills airlines, and how we could achieve competitive edges over them in terms of revenue generation. The Budget would also consider the discounts to be given to passengers to match the rates of competitors.
The total revenue from cargo servicing needs to be enhanced in order to meet the target of a 10% operating margin in the future. For the preparation of this budget, the sectors in which additional cargo could be gained, the competitive rates for cargo bookings and the sectors it serves should be considered. Also, our strategic partnerships with other Airliners in Cargo Handling needs to be reviewed and methods discussed with them for enhancing cargo revenue for British Airways. Strategic alliances with major worldwide airliners give wider destination choices to attain economies of large scale operations. It also throws open new opportunities for consolidation. For this, it is necessary to know the capacity for enhanced cargo trade, the present demand and projections of demand, the different routes in which the cargo flights operate and also the analysis of competitors’ activities, including their sector-wise rates, load capacities, and discharge facilities.
