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BIOL5134P Research Project

Answers:
Introduction

British Airways (BA) is a standard carrier airline company of the United Kingdom. The airlines of British Airways (BA), is the second-largest United Kingdom-based carrier, considering the fleet size and passengers. According to the investigation results the British Airways airline carries approximately 34.6 million passengers and the numbers are continuously increasing. The organization is a global airline that brings places, diverse cultures as well as people closer together for more than 100 years (Business-standard.com. 2022). The main aim of this company is to serve the worldwide community to obtain sustainable air transport facilities.

Recent studies have presented that the increasing threat of COVID-19 has significantly affected the financial infrastructure of British Airways by influencing their employment as well as restricting their services.

Aim-

This paper aims to discuss the impact of COVID-19 on the operations and financial infrastructure of British Airways that has significantly affected the company to determine the root cause behind the issues and apply strategic approaches to obtain future sustainability.

Objective-

The objectives of this research are:

  • To investigate the financial instability faced by British Airways due to COVID 19.
  • To investigate the impact of financial instability of British Airways on the Tourism industries worldwide.
  • To investigate the strategies that will help British Airways to deal with the financial instability to obtain future sustainability.
Research Problem-

From the investigation it is determined that there is a cumulative risk of peripatetic by air company amongst the increasing concern instigated by the epidemic. There is a chance of travellers contaminating seats and communal distancing is of greatest position. Also, air company experiences a problematic time in trading off amongst financial efficiency and the subsequent impact on well-being risks and influences. Similarly British Airways also experienced challenges of laying-off staffs due to of damage of revenue and portable restrictions (Business-standard.com. 2022).  

Research Question-
  • What is impact of COVID 19 on tourism industry and airline companies?
  • How COVID 19 affected the financial growth of British Airways?
  • What are the strategies adopted by British Airways to deal COVID 19?
  • What are the strategies that should be adopted by British Airways to deal with the identified issues?

Methodology
Research Methodology-

To conduct the research secondary qualitative research methodology has been selected. Secondary analysis of qualitative data stands for the use of present data to discover the answers to research queries that vary from the queries questioned in the novel research. According to the studies, quantitative research is distinct as a methodical examination of singularities by assembling quantifiable information and carrying out numerical, precise, or computational techniques. Secondary examination of qualitative study information has comparable benefits to secondary quantitative scrutiny. Those benefits include fewer time consumptions in the sample selection, data dispensation, and gathering procedures, and prepared obtainability of rich information for investigating plans that succeed for excused status or accelerated evaluation by most recognized investigation review boards. As per the studies, the secondary qualitative investigation includes possible admittance in data provided by problematic to admittance contributors, or information associated to contentious or novel topics, a decrease of higher engagement of participants, and exploiting the cost of contributors, contributions to study over reprocess of current information when suitable (Sakamoto et al., 2018).

Based on the above determination to conduct this research 15 scholarly articles will be from google scholar from the year 2020 to date. In addition to these financial reports of British Airways will be analysed to determine the financial state of the company during the COVID 19 pandemic. The data will be analysed using the thematic analysis method by generating relevant themes from the collected data.

Literature Review

This section presents a literature study on the impact of covid 19 on the operations of British Airways. This will also include a discussion on the graph of British Airways business revenue to determine the impact of COVID 19 on the revenue of British Airways towards future business sustainability.

Analysing the health and safety data of Airlines and hospitality employees it is determined that the tourism employees and airlines employees are more frequently to get affected by the virus that restricts their working abilities. In addition to this it is determined that increasing threat of COVID 19 has significantly influenced the human resource availability and consumer demand that are probably the key reasons behind downfall in financial statues of British Airways. Followed by this the recent studies presents that there is an impact of COVID 19 on the sustainability of airlines towards the adoption of best practices to server their consumers. Further analysis presents that one of the largest airlines organization British Airways gets affected by the COVID 19 in terms of their employment loss and the elimination of entire fleet of Boeing 747s.

From the above analysis it can be summarized that COVID 19 has an negative effect on the business revenue of British Airways that needs to be mitigated.

Analysis and Summary-

Followed by a detailed analysis of the collected secondary resources it is observed that COVID-19 has significantly affected almost every industry across the world however the highest impact of COVID-19 has been observed in tourism industries that also directs a significant effect on airlines. Based on this identification it is observed that in the hospitality and tourism industry human resources are one of the key assets that have experienced significant negative impact due to the increasing threat of COVID-19. World Health Organization has presented that there is a large set of hospitality employees and airlines employees are affected by COVID-19 that has led to life risk as well. While focusing on the investigation of the impact of COVID-19 on the financial infrastructure of British Airways it is observed that the airline has experienced a significant loss in their employment. According to the above findings, it is identified that there is almost 20% reduction in the salary of British Airways employees as well as there is almost 20% to 30% employment reduction. The airline has experienced the loss of one quarter due to flight ban and decrease in in the air capacity. While investigating the issue behind this instability it is determined that British Airways have experienced a decrease in consumer demand across the world. It is recommended to adopt the safety precautions and focus on the travel network that has lesser COVID 19 impact to eliminate the threat of financial instability and enhance business revenue.

Hence from the above analysis, it can be summarized that due to the impact of COVID-19 on human resources, consumer demands, and internal operations British Airways has experienced a significant downfall in their financial status which needs to be addressed with appropriate strategy to obtain future sustainability.

Conclusion

After completion on this research, it can be concluded that the COVID 19 pandemic has significantly affected the airlines industries in terms of affecting the human resources, consumer behaviour and demand as well as by affecting the global network with government restrictions that has influenced the financial structure of British Airways. The research presents that there is almost 20% reduction in the salary of British Airways employees as well as there is almost 20% to 30% employment reduction. To support the analysis the paper consists of a detailed overview of the research program alongside offering a list of resources used to conduct the research. Hence, it can be stated that this research presents a depth information about the affect of COVID 19 on the financial infrastructure of British Airways.

Reference:

Abbas, J., Mubeen, R., Iorember, P.T., Raza, S. and Mamirkulova, G., 2021. Exploring the impact of COVID-19 on tourism: transformational potential and implications for a sustainable recovery of the travel and leisure industry. Current Research in Behavioral Sciences, 2, p.100033.

Agrawal, A., 2020. Sustainability of airlines in India with Covid-19: Challenges ahead and possible way-outs. Journal of Revenue and Pricing Management, pp.1-16.

Albers, S. and Rundshagen, V., 2020. European airlines′ strategic responses to the COVID-19 pandemic (January-May, 2020). Journal of air transport management, 87, p.101863.

Belhadi, A., Kamble, S., Jabbour, C.J.C., Gunasekaran, A., Ndubisi, N.O. and Venkatesh, M., 2021. Manufacturing and service supply chain resilience to the COVID-19 outbreak: Lessons learned from the automobile and airline industries. Technological Forecasting and Social Change, 163, p.120447.

Business-standard.com. 2022. British Airways says Covid-19 pandemic likely to cost 10,000 jobs. [online] Available at: <https://www.business-standard.com/article/international/british-airways-says-covid-19-pandemic-likely-to-cost-10-000-jobs-120091602082_1.html> [Accessed 16 January 2022].

Dube, K., Nhamo, G. and Chikodzi, D., 2021. COVID-19 pandemic and prospects for recovery of the global aviation industry. Journal of Air Transport Management, 92, p.102022.

Foo, L.P., Chin, M.Y., Tan, K.L. and Phuah, K.T., 2021. The impact of COVID-19 on tourism industry in Malaysia. Current Issues in Tourism, 24(19), pp.2735-2739.

Hamawandy, N.M., Ali, R., Bewani, H.A.W.A., Rahman, S.K. and Othman, B.J., 2021. The financial Impacts of (COVID-19) on financial reporting quality Airlines Companies: British Airlines. Journal of Contemporary Issues in Business and Government, 27(2), pp.5264-5271.

Jaipuria, S., Parida, R. and Ray, P., 2021. The impact of COVID-19 on tourism sector in India. Tourism Recreation Research, 46(2), pp.245-260.

Macilree, J. and Duval, D.T., 2020. Aeropolitics in a post-COVID-19 world. Journal of Air Transport Management, 88, p.101864.

Maneenop, S. and Kotcharin, S., 2020. The impacts of COVID-19 on the global airline industry: An event study approach. Journal of air transport management, 89, p.101920.

Sakamoto, S., Putalun, W., Vimolmangkang, S., Phoolcharoen, W., Shoyama, Y., Tanaka, H. and Morimoto, S., 2018. Enzyme-linked immunosorbent assay for the quantitative/qualitative analysis of plant secondary metabolites. Journal of natural medicines, 72(1), pp.32-42.

Sharma, G.D., Thomas, A. and Paul, J., 2021. Reviving tourism industry post-COVID-19: A resilience-based framework. Tourism management perspectives, 37, p.100786.

Škare, M., Soriano, D.R. and Porada-RochoÅ„, M., 2021. Impact of COVID-19 on the travel and tourism industry. Technological Forecasting and Social Change, 163, p.120469.

Sobieralski, J.B., 2020. COVID-19 and airline employment: Insights from historical uncertainty shocks to the industry. Transportation Research Interdisciplinary Perspectives, 5, p.100123.

The Economic Times. 2022. Coronavirus impact: British Airways bids farewell to its entire fleet of Boeing 747s. [online] Available at: <https://economictimes.indiatimes.com/news/international/business/coronavirus-impact-british-airways-bids-farewell-to-its-entire-fleet-of-boeing-747s/articleshow/77018815.cms> [Accessed 16 January 2022].

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