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Our Strategy and Objectives 24 / British Airways 2008/09 Annual Report and Accounts Our strategy and objectives In an incredibly tough trading environment we have to focus hard on pulling ourselves through the immediate crisis, while preparing the business for better economic times. This year we have mapped out a long-term vision for our business. It is to be the world’s leading global premium airline. British Airways 2008/09 Annual Report and Accounts / 25 The Galleries lounges at Terminal 5 and Terminal 3 have had a fantastic reception and we are using the same concept at other key airports such as Milan, Johannesburg Overview and Vancouver. Progress against our the peak resource level during the first month of Terminal 5 operations. Business Plan A significant management voluntary BP11 severance programme also reduced the The rolling three-year business plan, number of managers by a third. Capacity BP11, set out our agenda for 2008/09. was realigned to meet weaker demand Our business Our main aims were to build on Terminal and, where possible, exploit our most 5’s strengths to upgrade the customer fuel efficient aircraft. experience, continue to make the business more cost effective, grow our operations A plan for growth and make corporate responsibility a Despite the downturn, we have continued prominent part of our business. Record to grow where it makes economic sense fuel prices and the global downturn meant and meets the needs of our customers. we needed to revise our plans and reset We launched new routes from London priorities. Nevertheless, we have still to Hyderabad and St Kitts; we launched made significant progress against our OpenSkies, our subsidiary flying from “We have exceeded original goals, laying the foundations continental Europe to North America in punctuality and baggage June 2008, and subsequently purchased for future success. targets across the network, L’Avion in July 2008; and we have achieving record customer governanceCorporate Financial statements An upgraded customer experience announced the launch of the first London satisfaction scores.” Terminal 5 has transformed our City to New York JFK service to start later operational performance and customer this year. service. We have exceeded punctuality Investing in efficient and flexible new and baggage targets across the network, aircraft makes sense, even in these tough achieving record customer satisfaction times. With the arrival of our new Boeing scores. Service for premium customers has 787s delayed, we contracted six Boeing been upgraded with the new Club World 777-300ER aircraft (two acquired, four product, now fitted to all Boeing 747 leased), with options for a further four. aircraft and over half of our Boeing 777 aircraft, and this year we will launch our Corporate responsibility new First cabin. The Galleries lounges at Our vision is to become the world’s most Terminal 5 and Terminal 3 have had a responsible airline, and we have brought fantastic reception and we are using the all our corporate responsibility activities same concept at other key airports such together under the banner ‘One as Milan, Johannesburg and Vancouver. Destination’. We have set challenging goals for further reductions in our carbon Competitive cost base emissions, reducing and recycling waste With record fuel prices to contend with and minimising air and noise pollution. during the year we redoubled efforts to We have continued to invest significantly control costs. Terminal 5 has allowed us to in our community relations programme cut the cost of our Heathrow operations and are proud of our record of raising by more than expected. By the end of money for charities, both as a business March 2009, our overall Heathrow and through the incredible energy and manpower levels had reduced by commitment of our people. 1,074 MPE, 14 per cent lower than 26 / British Airways 2008/09 Annual Report and Accounts As discussed in the Chief Executive’s review on page 10, we have set our sights on being the world’s leading global premium airline. The decisions we are taking now will determine how strongly we emerge from the downturn. The airline industry is in a period of unprecedented change and we have developed a clear vision for our business. This vision is guiding us in how we deal with current market conditions and in how we go about building a sustainable future for our business. Global Premium Airline What we offer will appeal to We will make sure all our customers We will remain focused on aviation, customers across the globe. enjoy a unique premium service moving people and cargo is our Wherever we operate, individuals whenever and wherever they come core business. We will develop new and business travellers alike will into contact with us. Our customers products and services to want to fly with us whenever will recognise that the service we complement this. they can. offer is worth paying that little bit more for. Five Key Goals – the steps we will take to achieve our vision: Be the airline of choice …so that people will want to fly with us whenever they can. We will continue to introduce great products such as the new business class seat on longhaul for longhaul premium and a restyled First cabin. To complement our Heathrow home – Terminal 5 customers… – we will redevelop premium facilities in New York JFK and continue to invest in lounges in other key cities. Deliver an outstanding …by training our colleagues, on the ground and in the air, in world-class hospitality and customer service. Customers can already check-in from their service for customers at mobile or PDA, and we will continue to enhance ba.com. A new in-flight every touch point… entertainment system will be launched later this year. Grow our presence …to provide the best global connectivity for our customers. In addition to our new longhaul service from London City to New York JFK, our network in key global cities… depth will be strengthened with more flights to Dubai and Johannesburg and a return to Saudi Arabia. Build on our leading …the world’s biggest aviation market. Ensuring Heathrow remains a world- class hub is vital to give us a strong London base to serve the largest position in London… international longhaul markets. We will acquire new slots, support plans for a third runway and work with BAA to improve baggage and terminal facilities at Heathrow. Meet our customers’ …by building profitable ancillary services that offer customers great value and re-enforce our brand. Our aim is to grow our mileage business and needs and improve boost revenues from third-party engineering, in-flight sales and a new online margins through new retail website. On ba.com we have now launched a range of great value revenue streams… hotel and car hire options packaged with our flights. British Airways 2008/09 Annual Report and Accounts / 27 Global Overview premium airline Customers eeds rs’ n Be e t Our business m rgins o he to ma f c a us e lon ho ir c v ew gha ic lin r ro n u e e C u p h ams cu l p f o ug re st re o o s im st o m r r t ro m l e d h e e i l e t u u e e n n rs m a e a n M v t e g r r u a e P B s e t p u c i a i o t l Financially v d n s s r i n r i t o a e o e i fit s o n r p m n e g o v o h i n i u l i t c n s r e d u n u L l D o governanceCorporate Financial statements e a c t o t a s ll n d t a y d i u r o n r e g o o v n f e E Gr e e x ow ou resenc c c i r p n e n ke ities a lle y global c m nc for e Per In order to become the leading global premium airline, we need to look at the way we work as well as what we are doing as a business. For that reason, along with our five key goals, we have launched a three-year change programme – Compete 2012 – linked to our sponsorship of the London 2012 Olympics. This programme is being progressively rolled out across our business to refresh our culture and will revolutionise the way we work. 28 / British Airways 2008/09 Annual Report and Accounts Our strategy and objectives continued Compete 2012 • Improving the way we manage performance in all areas of our business Our Compete 2012 programme aims through training and systems solutions; to instil the drive and competition of the Olympic spirit into the way we work and • Re-enforcing the new organisation perform as a team, and it puts our structure with clear accountabilities customers at the heart of our culture. linked to our overall Company goals; and • Innovating and improving our ways of Customer working, using e-tools. We think customer Our people will set the standard and Performance through them we will deliver world-leading We make it happen customer service. To be the world’s leading global premium To continue our success, we need to be airline, we need to sustain our improving Our employees are operational performance and be financially central to our ambitions clear about what sets us apart. to be the world’s leading fit.
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