British Airways to digitalise its business
One of the UK’s largest airlines British Airways has announced a significant transformation strategy. The initial focus will be on modernising the company’s IT direction. The strategy will require an investment of £7 billion. Thus, management will allocate £750 million to improving the IT sector.
According to the company, this move will improve the efficiency of the business. In addition, the modernisation will provide an opportunity to optimise internal processes and improve customer service. In total, the transformation programme comprises more than 600 points, including:
– increasing the number of seats on short-haul flights;
– introducing the ability to send free messages to passengers;
– a revamped corporate website and mobile app;
– a redesign of First Class on the A380 aircraft.
A key idea behind the transformation strategy is the desire to harness the power of innovation to meet the needs of British Airways customers. The company representatives hope that the allocated investments will help improve service quality. One of the critical components in achieving these goals is digital. For example, the company plans to focus on personalisation. To this end, it will improve its website and app. Their menus will be intuitive and convenient. The airline’s customers will soon be able to plan their trips conveniently. Another helpful innovation will be the availability of a Wi-Fi network on all flights.
In addition to the digital direction, British Airways is planning to upgrade its aircraft fleet. This will allow the airline to expand its customers’ range of services. In the transformation process, management is paying particular attention to the principles of sustainable development. One of the airline’s current issues is reducing carbon dioxide emissions. It is worth noting that the aviation industry is one of the largest producers of CO2.
Business overview of British Airways
British Airways is the country’s second-largest airline in traffic and fleet size. The leading airline in the UK is easyJet. British Airways is the result of the merger of 4 airlines in 1974. In 2011, it merged with Spain’s Iberia to form the holding company IAG. This made the company the second largest in Europe regarding annual revenue and size.
In early 2023, British Airways announced its intention to acquire Air Europa from Spain. The purchase price for 80% of the shares was €400 million. The deal will allow the airline to strengthen its position in the Latin American market and expand its operations in Asia.
Air Europa will retain its brand, while IAG’s Iberia will manage the business. The acquisition of the airline will enable the holding company to significantly reduce costs. The optimisation results should be visible on the business’s balance sheet in 2026–2028.
