The purpose of this report to focus on British airways andinvestigate key areas like Profitability ratio, structure ratio, Britishairways strategy review, main competitors, company performance etc. FAME reportdata (UK) will be used for the financial information. This report will providean overview of British airways weather an investor should invest in Britishairways. 2.0 Introduction British airways were established in 1974 and it is one of thelargest and widely known airline company in the United Kingdom (Horner, andSwarbrooke, 2004).
The company offer many services included carry passengers,cargo and letter (Madar, 2015). According to (FAME DATA) and (Nasdaq, 2017) thetotal revenue of the company in year 2016 was £11,443 million which was 1.0% upas compare to year 2015. 3.
0 British airways strategyreview The market size and growth of airlines industries have beengrown rapidly. However, in 2014 researched by (Lee) indicated that the demandof customers has increased yearly in airlines industries. Nevertheless,according to British airways (Annual report 2009/10) indicated that the companyfocus is to provide premium service to customers and remained premium brand.Moreover, British airways market strategy is to target long haul premium customer,build a strong and positive relation with customers by delivering outstandingservices, building a strong position in global cities and ensure that companymeet with customers desires and improve margins through new revenue streams(see appendix 1). 4.0 Merger with Iberia airline On April 8, 2010 British airways and Spanish airline Iberia havesign an agreement to merge and create the biggest airline in the world.
This isbecause both firm was struggling financially and in merger both companies saidit would be beneficial for both airlines, shareholders and employees (seeappendix 2). British airways and Iberia airlines will save 400 million euro(£350 million) a year with the help of merger, the purpose of the merger safeboth companies from future damages (BBC News, 2010) and (Riley, 2012). 5.0 Financial analysis of Britishairways