BUSINESS CONTINUITY MANAGEMENTBritish Airways, UKCRITICAL ANALYSIS OF OPERATING ENVIROMENT AND STAKEHOLDER ANALYSISBritish Airways is the United Kingdom’s largest international scheduled airline with over 140 destinations worldwide. British Airways principal place of business is at Heathrow which is one the world’s renowned airport locations. The company is also providing air cargo services which are mostly in conjunction with their day-to-day passenger services. Together with code share and franchise partners, British Airways operates an extensive international scheduled airline route networks to more than 300 destinations around the globe. In the years 2008 and 2009, British Airways served around 33 million passengers and have earned approximately £9 billion in revenue which is higher than their earnings the previous year by 2.7%.
Their cargo services have carried 777,000 tonnes of cargo to almost every destination in the world. Last year, the company had already 245 aircraft in service that include 12 Airbus A380 and 24 Boeing 787 aircraft (British Airways 2010, p. 1). Since British Airways is a large company doing a global business, its stakeholders are generally customers, agents, suppliers, contractors, franchisees, joint venture partners, subsidiaries, labour unions, and government or regulatory authority officials (British Airways 2002, p. 1-3).
According to the British Airways management, their customers are at the heart of everything they do thus they are making sure they are offering excellent services to everyone who wishes to fly with the airline. The company also made it a point to get feedbacks from their customers to have a real understanding of their needs. For the company staff and other employees, the company is providing training programmes to improve and provide a more attentive and personal service to their customers. In 2009, the company had provided 215,000 days of trainings for cabin crew and ground staff.
For building and other facilities, the company opened Terminal 5 to serve their customers better. Terminal 5 has a luxurious lounge complex that offers greatly improved facilities such as wine bars, spa treatments, delicious food, and upgraded communication facilities. The company’s aircraft fleet was also upgraded with new comfortable cabin layout with their Boeing 747s and introduced an all-premium 32-seat layout in Airbus A318 aircraft. The new Boeing 777 aircraft help the company reduce their carbon foot print since it has lower fuel burn.
The improvement also includes mobile text and data services, on-demand in-flight entertainment system, and an online portal where customers can book and check-in online. The British Airways cargo services made some advancement by introducing the new ‘cool chain’ technology where customers can avail of express or prioritise services. This new services include airmail scanning and direct airport-to-door deliveries. British Airways also expanded their overseas branches including those countries that they do not even fly (British Airways 2009, p. 1-5).
In improving their relationship with valued customers, the company recognised the importance of having a good relationship with suppliers, partners, and alliances with other related services. The company are procuring goods and services using a strategic sourcing process and benchmarking principles in order to get the most value. In 2009, the company signed a major in-flight catering agreement with three suppliers to ensure high-quality airline catering. More importantly, British Airways believe that using two or more suppliers can minimise their exposure to supplier failure. Learning from past experiences, British Airways recognises the value of mitigating supplier risk thus it has now become a key priority.
The establishment of a new and well-organised procurement team helps the company measure risk across most their critical suppliers that would have a serious impact on their ability to operate. Their business continuity plan enables the company to cover the risk of supply failures and monitor and review their effectiveness (British Airways 2009, p. 1-5).