Thus, in the long run, it is anticipated that only a handful of global airlines will dominate the world’s skies.British Airways objective is to be one of these global airlines, offering services in all three of the world’s major regional air transport markets (Europe, North America and Asia-Pacific), and all three inter-continental routes that connect these markets. To be
competitive in a global market, therefore,British Airways must match the efficiency levels of US carriers and the cost competitiveness of Asian airlines, while at the same time consolidating its position in the domestic market where low-cost airlines have entered the market and rival European flag carriers have embarked on ambitious restructuring programmes. The foundation of BA’s competitive strategy, which can be traced back to the
1980s, was to reorient the company’s business, and the mindset of its managers,
from transportation to service. Henceforth, the business would be market- led rather than operationally driven. What the market demanded, or more precisely what SirColin Marshall and other key managers at the time interpreted as the demands of the market, were much higher standards of customer service. To quote British Airways’s former Chief Executive,