British Airways

The main problems of British Airways are:

the company has been loosing its profit since the world crisis begins and it has gone from massive profits to huge losses;

the company keep on loosing hundred millions pounds because of staff strikes;

the company cannot low its expenses;

the company has lost considerable market share over the past 20 years;

the company has gone from the "World's Favourite Airline" to the company that gets more negative press coverage than any other.

2.Examples of variable costs:

fuel;

catering;

landing fees;

overnight and part-time workers expenses;

contract flight crew;

maintenance.

Examples of fixed costs:

airplane's cost;

rent for flying line;

pilot's salary;

hangar cost;

insurance.

3.Solutions:

1. The company should optimize unprofitable flying routes (for example: cancel unprofitable flights or join these flights with other airlines and not to use large Boings during short-distance flights)

2. The company should improve their marketing programme to attract a lot of new passengers. The company may offer new products, for instance: "family ticket" (reduced ticket's price for family flights); Or to decrease prices on tickets during low seasons. It may also introduce special programmes, for example: