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    British Airways Presentation New

    Uploaded by

    Tharindu Weerasinghe
    British Airways faced significant challenges due to the COVID-19 pandemic, including a loss of revenue and operating profits as well as reduced liquidity. The airline addressed these issues through cost cutting measures, obtaining financing, restarting operations safely, and investing in cargo services and sustainable aviation fuels. Moving forward, restoring passenger confidence, managing high debt levels, and finding new revenue sources will be key priorities for British Airways' recovery.

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    British Airways Presentation New

    Uploaded by

    Tharindu Weerasinghe
    67 views11 pages
    British Airways faced significant challenges due to the COVID-19 pandemic, including a loss of revenue and operating profits as well as reduced liquidity. The airline addressed these issues through cost cutting measures, obtaining financing, restarting operations safely, and investing in cargo services and sustainable aviation fuels. Moving forward, restoring passenger confidence, managing high debt levels, and finding new revenue sources will be key priorities for British Airways' recovery.

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    British Airways faced significant challenges due to the COVID-19 pandemic, including a loss of revenue and operating profits as well as reduced liquidity. The airline addressed these issues through cost cutting measures, obtaining financing, restarting operations safely, and investing in cargo services and sustainable aviation fuels. Moving forward, restoring passenger confidence, managing high debt levels, and finding new revenue sources will be key priorities for British Airways' recovery.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    67 views11 pages

    British Airways Presentation New

    Uploaded by

    Tharindu Weerasinghe
    British Airways faced significant challenges due to the COVID-19 pandemic, including a loss of revenue and operating profits as well as reduced liquidity. The airline addressed these issues through cost cutting measures, obtaining financing, restarting operations safely, and investing in cargo services and sustainable aviation fuels. Moving forward, restoring passenger confidence, managing high debt levels, and finding new revenue sources will be key priorities for British Airways' recovery.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 11

    1

    IMPACT OF COVID-19 ON
    BRITISH AIRWAYS
    Presented by Group C
    Sabana Sait         KYS19Y065
    Reesha Fazly KYS18Y136
    Sathya Aruppala             KYM19Y122
    P.W.G.K.C Samarakoon     KYS19Y012
    Shezah Nizamdeen  KYS19Y013
    Tharindu D.Weerasinghe   KYS19Y004
    2

    The Airline Industry


    • Plays an important role in establishing a global economy

    • Influences various related industries (tourism & aircraft


    manufacturing)

    • Offers employment in the aviation as well as related sectors

    • Industry loss $137.7 billion (2020) & estimated industry loss


    was $ 51.8 billion (end of 2021)

    • Passengers increased in the pre-Covid period of 2020 due to


    low cost carriers, growth of the global middle class and
    growth in airport infrastructure spending

    • After the pandemic, the number of passengers amounted to


    only 2.2 billion (a fall of 50% compared to 2019)
    3

    British Airways
    Formed on 31st March 1974 through a merger of British Overseas
    Airways Corporation, British European Airways, Northeast Airlines
    and Cambrian Airways

    Headed by the CEO Sean Doyle and headquartered Harmondsworth

    Second largest British airline covering 70 countries and 160


    destinations with a fleet of 280 aircrafts

    Revenue in 2020 amounted to ₤ 3.9 million (39 million customers


    annually)

    Total workforce of 40,000 employees as of 2020

    Major competitors are Singapore Airlines, Cathay Pacific and Virgin


    Group
    4

    Challenges Faced by the


    British Airways
    • Impact on the revenue and operating loss

    • Fall in the liquidity position

    • Imposed Travel Restrictions

    • Reduction in operations

    • Employee and customer safety


    5
    Analysis of the Financial and Business Strategies
    used to overcome the Challenges

    Financial Strategies Business Strategies


    Rigid cost controls Rebooting the operations
    • Fuel efficient fleet
    • Addition of new flights and dynamic schedules
    • Pre- exceptional employee cost savings
    • New routes and larger aircrafts
    Liquidity infusions
    • Increase in air cargo services
    New debts from IAG and Bank of England
    • Robust financial controls to preserve the cash Vital health and safety controls to assure customers
    position
    • New Covid – 19 safety measures
    • Asset financing structure
    • Equipment's to reduce mobility and crew –
    Business restructure and redundancy programs
    • Assistance from the Covid-19 job retention customer interactions
    scheme
    6
    Analysis of the Impact of
    Strategic Financial Decision

    Dividend Decision
    03

    02 Financial Decision

    Investment Decision 01
    7
    Post Covid – 19 Market Challenges
    and Strategies to overcome them

    Restoring traveler confidence in air travel

    Accelerating the creation of a seamless passenger journey

    The challenge of higher debt levels and lower cash reserves

    To find the ideal working place for the future

    Cost increment related issues


    8

    Alternative Investment
    Options of British Airways to
    manage Cash Flows
    .

    Investment in Investment in new Sustainable fleet


    Cargo Services technologies
    • Developed Sustainable
    • Introduce carbon Aviation Fuels (SAF)
    • Cargo revenue
    offset and removal • Partnered with various
    increased by projects companies to implement to
    25.2% explore the future of
    sustainable fleet
    9

    Recommendation
    01 Obtaining financing from other aids to solve the
    company’s liquidity and debt problems

    02 Resumptions of overseas travel to increase the


    company’s demand and revenue

    03 Ensuring that the company’s employees make use of


    the resources available to them
    10

    Conclusion
    • Company overview

    • Challenges faced by British Airways

    • The impact of company’s strategic financial decision making

    • Impact of cash flow management

    • Current and future challenges in helping to restructure the business

    process to maximize returns through alternative investment

    • Recommendations and suggestions for overcoming all these

    challenges
    11

    THANK YOU

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