The airline company, which has been chosen to structure this report, is the British Airways. It is one of the world's leading scheduled international passenger and cargo airlines catering to about 300 destinations across the world. ("Annual Report of British Airways", 2008).
According to the International Air Transport Association the airline industry, lost up to $8 billion in the year 2008 which surpassed previously forecasted amount. The marketing environment is constantly changing and with every change the industry gets affected. The demand for airline industry is highly income elastic ("An analysis of British Airways Marketing Environment", 2008). Thus the rise in fuel price last year and the recent economic turmoil has affected the airlines industry in a huge way as passengers are avoiding more expensive travels. According to a report by Air Transport Association (ATA), the revenue generated from passenger travels for all airlines fell by 19% during the month of February, 2009 when compared to February 2008. The company saw a decline in 8.6 percent in premium traffic and 4.1 percent in non premium. ("Lucrative Business class air travel hit by crisis", 2009). ...Show more