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Executive Summary The airline industry is characterised as a mature highly seasonal capital-intensive and price-elastic industry Cephas 2000 However the nature of competition with regard to European airlines is in a state of dynamism particularly as a consequence of European deregulation The subsequent evolution of a low cost no frills market segment which engenders significant improvements in operating costs has disturbed the balance of traditional competitive advantage Consequently a number of established airlines have found it necessary to rethink their market positions and manage change in order to survive Introduction This report aims to establish the context of the European airline environment and assess the impact of managing change in a business organisation by analysing the following In order to analyse the impact of managing change an initial analysis is undertaken to ascertain the state of the European airline environment Consequently an assessment is then made of the current state of the organisation after change has taken place The objective of this assignment is to analyse the practises and to outline British Airways approach to managing change in its organisation This issue assumes a particular relevance in an increasingly competitive environment in the service industry The approach to this assignment is analytical and look for evidences to sustain the proposed arguments and ideas Information comes from secondary sources such as newspapers articles specialised magazines books on airline management and marketing and management issues reports and research from the major marketing research providers and professional bodies companies annual reports and information The report is divided in two parts The first part analyses the strategic approach to the market and the corporate culture of the airline The second part focuses on how they manage change with particular emphasis on factors for success or failure of the change Industry Background The European airline industry is highly regulated since individual countries and governments aim to protect their flag carrying airlines With
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