Air Travel.

Air travel remains a large and growing industry. It facilitates economical increase, world

trade, international investment and tourism and is therefore central to the globalisation

taking hind end in many other industries. The International Air deport Association

(IATA) reports that air travel has grown by 7% per year. precisely due to recent events there

has been a slow down in demand for transatlantic and business flights all over the world. The air hose industry is changing rapidly and also changes in food market organisation have been affected by world politics, which in long run is uncertain. Therefore, predicting the future of British Airways (BA) is a teeny-weeny bit difficult.

There have been many key factors, which have noxiously affected our firm:

1.the expansion of open skies agreement between unite Kingdom and the United

States and a growing number of European nations.

2.the prospered development of international alliances (groups of airlines) that now

compete across the broad, worldwide networks.

3.the explosive growth at the European hubs of other alliances in Frankfurt, Amsterdam

and Paris

4.deregulation of the airline industry

5.the kinsfolk 11th terrorist attacks in the United States

In 1992, government restraints were removed on air services to encourage the growth

of alliances such as that of BA and American Airlines.



The open skies policy has

resulted in numerous public benefits (as healthful as falling barriers to entry for other airlines)

which include subvert prices, increased flights and competition and expanded job opportunities associated with corporate growth. BA entered into many different airline alliances to expand market coverage. everyplace the last year, two major global alliances have make; Star alliance and One World alliance

(American Airlines, British Airways, Qantas, mainland China and Canadian international).

British Airways investment in Air Liberte and Deutsche BA gave us a presence in the

three largest aviation markets in Europe.

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