24 / 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 . Overview Our business Corporate governance Financial statements punctuality and baggage the network, targets across customer record achieving scores.” satisfaction The Galleries lounges at The Galleries 3 5 and Terminal Terminal reception fantastic had a have using the same are and we airports key other at concept such as , Johannesburg and Vancouver. “We have exceeded have “We 2008/09 Annual Report and Accounts / 25 and Accounts Report Annual 2008/09 British Airways British the peak resource during the level the peak resource 5 operations. Terminal of month first voluntary management A significant the also reduced programme severance by a third. Capacity managers number of demand weaker meet to realigned was our most possible, exploit and, where aircraft. fuel efficient growth A plan for continued have we the downturn, Despite sense economic it makes where grow to our customers. of the needs and meets London from routes launched new We launched Kitts; we and St Hyderabad to OpenSkies, our subsidiary flying from in North America to Europe continental purchased June 2008, and subsequently have in July 2008; and we L’Avion London the first the launch of announced later start to JFK service York New City to this year. new and flexible in efficient Investing in these tough sense, even makes aircraft Boeing our new of the arrival times. With we787s delayed, contracted six Boeing 777-300ER aircraft four acquired, (two a further four. leased), with options for responsibility Corporate most the world’s become Our vision is to brought have airline, and we responsible activities responsibility all our corporate under the banner ‘One together challenging set have We Destination’. in our carbon further reductions for goals waste and recycling emissions, reducing and minimising air and noise pollution. significantly invest to continued have We programme relations in our community raising of our record of proud and are as a business charities, both for money and energy the incredible and through our people. of commitment Competitive cost base cost Competitive with contend to fuel prices record With to efforts redoubled we during the year us to 5 has allowed Terminal costs. control operations our Heathrow of cut the cost By the end of than expected. by more Heathrow March 2009, our overall by had reduced levels manpower 1,074 MPE, 14 than lower per cent An upgraded customer experience customer upgraded An our 5 has transformed Terminal and customer performance operational punctuality exceeded have We service. the network, across targets and baggage satisfaction customer record achieving has customers premium for Service scores. Club World with the new been upgraded all Boeing 747 to fitted now product, 777 our Boeing half of and over aircraft will launch our we and this year aircraft, at cabin. The Galleries lounges First new had a 3 have 5 and Terminal Terminal using the are and we reception fantastic airports such key other at same concept and Vancouver. as Milan, Johannesburg BP11 plan, business three-year The rolling 2008/09. for agenda out our BP11, set build on Terminal to Our main aims were the customer upgrade to strengths 5’s the business make to continue experience, our operations grow effective, cost more a responsibility corporate and make our business. Record part of prominent meant and the global downturn fuel prices plans and reset our revise needed to we still have we priorities. Nevertheless, our against progress made significant the foundations laying original goals, success. future for Progress against our against Progress Business Plan 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. Overview Our business Corporate governance Financial statements

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n t r a P In order to become the leading global premium airline, we need to look at the way we the way look at need to airline, we the leading global premium become In order to doing as a business. are we as what as well work change launched a three-year have we goals, key along with our five reason, that For –programme 2012 – Compete Olympics. 2012 the London our sponsorship of to linked our refresh our business to out across rolled is being progressively This programme work. we the way and will revolutionise culture 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. That way we can both invest in our • We keep promises – always doing what global premium airline. future and deliver a healthy return to we say we will do; our shareholders.

• We look the part – our style is To achieve these goals we need to be contemporary and understated; able to measure our performance across • We do things properly – doing the the business and to make our managers right things for the right reasons and accountable for delivery of our targets. to a high standard;

• We find solutions – solving any problems Excellence inventively and working flexibly within a We set standards that others aspire to framework; and We developed a number of key operational processes ahead of our move • We treat everyone as an individual – into Terminal 5 which have helped us to respecting differences and adding a personal become more efficient. Building on these touch to make everyone feel valued. we are now rolling out what we call the We are using a comprehensive ‘Lean’ Continuous Improvement approach communications and training programme across our business. to help put these principles into practice in everything we do. Partners Colleagues We win together The modern airline business is highly I am proud to give more interconnected. We rely on a network of We expect great things of everyone who both airline and non-airline partnerships to works for British Airways. Our colleagues deliver a complete service to our customers. are central to our ambitions to be the So to be the world’s leading global world’s leading global premium airline. In premium airline, we also need our partners return, they have the right to expect us to to see us as a great company to do provide them with a great place to work – business with. We are working hard to one which they can really feel proud of. develop better and more sustainable To achieve this we are: relationships with our partners, particularly some 500 key businesses to whom we • Investing in new leadership training; have given formal preferred supplier status. • Implementing clear communication programmes;