Factor Issues Impact

Political Increased security due to terror Security given has to

attacks(DFT,2008) be adequate to
enhance customer
confidence and a
-the election manifesto of competitive
blocking the building of further advantage
runways at Heathrow,Gatwick
-
and Stansted Airports(keynote)

-reform in Air Passenger

Duty(APD)(Keynote)

Economic -slow global economic growth -likely reduction in

the number of
business travels,
companies are
resorting to cheaper
communication like
video
teleconferencing.

Social -composition of population -this poses an

suggests an aging nation in the opportunity for
Uk(national statistics growth as older
online,2008) people have more
time to spend on
leisure travel
-increase in unemployment
-an increase in
bargaining power as
an employer

Technological -customers now prefer to use -British Airways need

online booking to keep upto date
with technological
-an increase in passengers using
advances at the
online comparison
same time catering
sites(NMA,2009)
for the elderly who
might not be keen to
use online services.

-an increase in
passenger awareness
which increases

Environmental/Ethic Energy consumption controls
al and noise pollution
controls(DFT,2008)Climate
change Bill
-cancellation of flights and
passengers losing their
baggage(Channel 4,2008)
-consumers are becoming more
environmentally responsible
Legal -recognition of trade unions and
industrial action(strikes )
-restriction on mergers
-open skies
agreement(AEA,2009)
customer bargaining
power
-this will increase
operational costs due
to compliance
-reputation of the
airline can suffer if
these issues are not
resolved
-if BA do not act as a
`Green`business it
can affect it`s
corporate image.
BA needs to improve
employee relations to
ensure services are
not interrupted
-impact the proposed
merger with
American Airlines
-opportunity for
growth between
Europe and the US