As noted above, the airline market is fiercely competitive and will need to continue to rationalise given the current market conditions. This may involve further airline failures and consolidation leading to opportunities to capture market share and expand the Group. Mergers and acquisitions amongst competitors have the potential to adversely affect market position and revenue. The Group maintains rigorous cost control and targeted product investment to remain competitive.
The airline industry is increasingly dependent on alliances and BA is no exception to this. Maintaining a leading presence in oneworld and ensuring the alliance itself performs as expected by the members is key in safeguarding the network. Some of the markets in which the Group operates remain regulated by governments, in some instances controlling capacity and/or restricting market entry. Relaxation of such restrictions, while creating growth opportunities for the Group, may have a negative impact on margins.