The markets in which the Group operates are highly competitive. Direct competition is faced from other airlines on routes, as well as from indirect flights, charter services and from other modes of transport. Competitor capacity growth in excess of demand growth could materially impact our margins. Some competitors have cost structures that are lower than BA or have other competitive advantages such as being supported by government intervention. Fare discounting by some competitors has historically had a negative effect on the Group’s results because a response is generally required to competitors’ fares to maintain passenger traffic. The Group’s strong global market positioning, leadership in strategic markets, alliances and diverse customer base continues to address this risk.