Analyse Of International Airlines Group Essay Sample

International air hoses group. Officially International Consolidated Airlines Group. S. A. ; is a transnational air hose keeping company. The headquarter of the company is in London. United Kingdom. The company besides has a registered office in Madrid. Spain.

Size and Sector:

International Airlines Group Operates in Aviation Sector. IAG is the parent company of British Airways and Iberia. Antonio Vazquez is the Chairman Of IAG Now and Willie Walsh is the Chief executive officer of IAG Now.

Harmonizing to the Last Fiscal Statements of IAG which was published in December 31. 2011: –

( ?=GBP )

* IAG’s Gross: ?13. 63 billion

* IAG’s Operating Income: ?404. 45 million

* IAG’s Net income: ?439. 47 million

* IAG’s Total Assets: ?16. 47 billion

* IAG’s Total Equity: ?4. 74 billion

* IAG’s Employees: 56. 782

Mission of IAG and Stated Value of IAG:

IAG’s mission is to be the prima international air hose group.

The company’s stated value is to carry through the mission by winning the client through service and by keeping value across their planetary web.

From their mission and stated value it is really clear that the company gives precedence to their clients foremost to carry through their mission.

By carry throughing their mission. IAG will assist to determine the hereafter of the Airline industry. put new criterions of excellence and supply sustainability. security and growing.

Corporate Social Responsibility ( CSR ) of IAG

In the country of corporate societal duty IAG proudly support the policies and vision of British Airways and Iberia.

The Main and Common CSR of British Airways and Iberia are:

Environment: BA and Iberia tries their best to restrict the emanation of CO2. BA is besides seeking to cut down the noise of aeroplanes engines. They are besides funding in many undertakings with other companies to maintain the environment green and beautiful.

Community: BA and Iberia both helps a batch in the local community and the communities all around the universe. Especially BA offers many undertakings such as educational undertaking in the rural countries Of Bangladesh. They besides donate to hapless and incapacitated people through charity partnerships.

Market Topographic point: BA and Iberia ever develop their merchandises continuously. They perform their CSR through Innovation. They ever take and recycle their wastes carefully. They ever supply the best quality nutrient for the riders.

Work Topographic point: In Market topographic point BA and Iberia have their ain preparation squads for their employees to promote the employees to execute their CSR. Such as: Attend riders ailments carefully. corporate safety. colleague battle. BA has British Airways wellness service which helps any ill employees and riders.

The External Environment ( PESTLE Framework ) :

The Political Environment:

Government enterprises:

High APD: APD ( Air Passenger Duty ) has increased once more from 1st April. 2012. Because of the new addition. APD causes air tickets to lift by 8 % . This new addition is detering travellers to wing.

Low Corporation Tax:

The chief rate of corporation revenue enhancement. applied to taxable over ?1. 5 million. remained at 30 % until being reduced to 28 per centum from 2008/2009. From 1st April it is being reduced to 27 per centum and so it will be reduced to 24 per centum by 2014/2015.

By 2014 Multinationals will pay merely 8 % as corporation revenue enhancement.

. Weaker European Markets:

Though in 2011 IAG has doubled it’s operating net income compared to 2010 but. because of weaker European markets IAG has faced loss in their subordinate Iberia’s operation. The recent debt crisis of Greece in 2011 can be a good illustration of Weaker European market.

Unstable Condition in Iberia Airline:

Recent work stoppage of Employees in Spain’s Airline industry will impact IAG’s subordinate Iberia’s

concern negatively.

Kyoto Protocol:

IAG follows Kyoto protocol to restrict the emanations of green house gases.

High Fuel Monetary values:

Political Instability in Top Oil Producing States like Iraq. Libya and

New tenseness over top oil bring forthing Iran and Sanction against Iran are the chief grounds for high fuel monetary values at the minute.

In 2011 IAG’s fuel costs increased 30 % compared to 2010. And at current monetary values IAG expects the fuel cost measure will lift in 2012 by a farther ?850 million.

So. high fuel monetary value is increasing the cost of IAG and it affects IAG.

The Socio-Cultural Environment:

Educational Tours:

Harmonizing to The Times Higher Education universe university ranking there are 12 universities of UK in the world’s top 100 universities & A ; there are 31 universities of Europe in the world’s top 100 universities. So. pupils from many states come to UK and Europe and pupils from Europe come to UK for educational circuit and for higher instruction. This factor affects IAG positively.

Historic and Cultural Sites:

UK has got many historic and cultural sites. Such as British museum. Roman baths and Pump Room. William Shakespeare’s Birthplace Etc. So. for sing these historic and cultural sites many visitants will come to UK

Religious Pilgrims:

Hajj in Mecca ; Vatican for Christians ; Varanasi in India for Hindus ; these topographic points are really of import for spiritual pilgrims. And the Christians. the Hindus and the Muslims who live in UK and Europe go to these topographic points. So. this factor affects IAG.

The Technological Environment:

New aircraft coatings:

To restrict the emanation of CO2. IAG and its Subordinates have started to utilize New aircraft coatings which limit the emanation of CO2.

Environment Scientific Research:

IAG and its subordinates spend more money for environment scientific research. As an illustration it can be added that: IAG’s subordinate British Airways support OMEGA which is a pool of major UK universities and air power administrations dedicated to researching the impact of air power on the environment

New IT development:

IAG ever develops their IT ( Information and engineering ) sector continuously. Because. by IT sector they secure informations protection of riders and employees. Sudden harm in IT system can do riders a batch of jobs. So. IAG is ever bettering their Information technology system

Developing Of Bio-Fuels:

IAG’s subordinate British Airways is working with US engineering company SOLENA to develop such sort of bio-fuels which will restrict the emanation of CO2. This is a great illustration of invention.

The Demographic Environment:

Europe’s ageing population:

Harmonizing to Population mention bureau About 25 per centum of people in the European Union in will be above age 65 in 2030 up from about 17 per centum in 2005. So. In IAG there will be more pensionaries. So. IAG’s pension costs will certainly increase.

Rise in Moslems:

The figure of Muslims is lifting twenty-four hours by twenty-four hours in UK and Europe. And For Hajj many Muslims will travel to Saudi Arabia and when they will return in UK and Europe once more. They can utilize the aeroplanes of IAG and its subordinates. So. it will increase rider gross of IAG.

The Legal and Regulatory Environment:

UK and EU Employment Law:

Employment Law intervenes many facet of the relationship between trade brotherhoods. employers and employees. And IAG purely follow UK and EU Employment Law. But. the quickly altering in these Torahs affects IAG.

Waste electrical and Equipment Directive ( WEEE ) :

The Waste Electrical and Electronic Equipment Directive ( WEEE Directive ) was introduced into UK jurisprudence in January 2007 by the Waste Electronic and Electrical Equipment Regulations 2006.

As IAG is an Airline industry. so at that place many electrical equipments. electrical waste. So. IAG follows WEEE directive to take and recycle the electrical waste.

Hazardous Waste Regulations:

In an air hose industry there are many risky wastes. To take these waste IAG follow the Hazardous waste Regulations. There were some major alterations in Hazardous Waste ordinances they came into consequence on 29 March 2011.

EU competition Law:

In the recent ?172. 5 million acquisition trade of IAG with Lufthansa to get BMI. the usage of European Competition Law is really clear.

Because. the trade came into success after the blessing of European competition governments.

Decision:

Stable Factors:

Europe’s ageing population:

This factor is increasing the pension costs of IAG.

Unstable Factors:

Weaker European Market:

This factor is a hazard for IAG.

Olympic in London in 2012:

This factor will pull more riders to UK. But. during the Olympic Games merely few travellers will go forth London. As a consequence during the Olympic Games fewer riders will wing. Past Experiences show that demand in the host state has dampened.

High fuel monetary values:

Negative For IAG. .

Rise in Moslems:

As a consequence of this factor Many Muslims will wing to Mecca for Hajj every twelvemonth. This will increase the rider gross of IAG.

Quickly Changing Factors:

Government enterprises:

High APD:

Negative for IAG.

Low Corporation Tax:

Beneficial for IAG.

New Product Development:

Through invention IAG attracts more clients and new merchandise development besides keeps IAG one measure in front of their rivals. So. this factor is positive for IAG.

In 2011 IAG has doubled its operating net income compared to 2010. So. if IAG follow its ain strategic concern program it will besides see an addition in its operating net income this twelvemonth despite of holding some negative effects.

Mentions:

Palmer. A. . Hartley. B ( 2009 ) . The Business Environment. ( 6th edition ) . McGrawHill. United kingdom

Henry. A. ( 2009 ) . Understanding Strategic Management. Oxford University Press. Oxford

Ahmad. J. . Vasilaki. A. . and Nath. V. ( 2007 ) Strategic Business: Environment. Pearson Custom Publishing. Harlow. Essex

hypertext transfer protocol: //www. iairgroup. com/phoenix. zhtml? c=240949HYPERLINK “http: //www. iairgroup. com/phoenix. zhtml? c=240949 & A ; p=aboutoverview” & A ; HYPERLINK “http: //www. iairgroup. com/phoenix. zhtml? c=240949 & A ; p=aboutoverview”p=aboutoverview

hypertext transfer protocol: //www. iairgroup. com/phoenix. zhtml? c=240949HYPERLINK “http: //www. iairgroup. com/phoenix. zhtml? c=240949 & A ; p=irol-reportsannual” & A ; HYPERL
INK “http: //www. iairgroup. com/phoenix. zhtml? c=240949 & A ; p=irol-reportsannual”p=irol-reportsannual

hypertext transfer protocol: //www. iairgroup. com/phoenix. zhtml? c=240949HYPERLINK “http: //www. iairgroup. com/phoenix. zhtml? c=240949 & A ; p=responsibility” & A ; HYPERLINK “http: //www. iairgroup. com/phoenix. zhtml? c=240949 & A ; p=responsibility”p=responsibility

hypertext transfer protocol: //www. britishairways. com/travel/csr-corporate-responsibility/public/en_gb

hypertext transfer protocol: //grupo. Iberia. es/portal/site/grupoiberia/menuitem. 52b643feb65c52c239bf93ead21061ca

hypertext transfer protocol: //www. britishairways. com/cms/global/pdfs/environment/ba_corporate_responsibility_report_2010-2011. pdf

hypertext transfer protocol: //grupo. Iberia. es/portal/site/grupoiberia/menuitem. 949f8fd4ea195841739ed8cdf34e51ca/

hypertext transfer protocol: //www. flightglobal. com/news/articles/world-airline-rankings-regional-picture-359695/

IAG’s Full twelvemonth condensed amalgamate fiscal statements December 31. 2011 accessible at:

hypertext transfer protocol: //www. iairgroup. com/phoenix. zhtml? c=240949HYPERLINK “http: //www. iairgroup. com/phoenix. zhtml? c=240949 & A ; p=irol-reportsother” & A ; HYPERLINK “http: //www. iairgroup. com/phoenix. zhtml? c=240949 & A ; p=irol-reportsother”p=irol-reportsother

hypertext transfer protocol: //www. reuters. com/finance/stocks/companyProfile? symbol=ICAG. L

hypertext transfer protocol: //money. cnn. com/magazines/fortune/most-admired/2012/industries/2. hypertext markup language

hypertext transfer protocol: //news. bbc. co. uk/today/hi/today/newsid_9700000/9700740. short-term memory

hypertext transfer protocol: //news. sky. com/home/business/article/16179274

hypertext transfer protocol: //unfccc. int/kyoto_protocol/background/items/2879. php

hypertext transfer protocol: //www. huffingtonpost. co. uk/2012/04/01/air-passenger-duty-apd-rises-8-percent-uk-aviation-george-osborne_n_1394389. hypertext markup language

hypertext transfer protocol: //www. forbes. com/2009/11/10/europe-airlines-climate-business-oxford-analytica. hypertext markup language

hypertext transfer protocol: //www. environment-agency. gov. uk/business/topics/waste/32084. aspx

hypertext transfer protocol: //www. environment-agency. gov. uk/business/topics/waste/32180. aspx

hypertext transfer protocol: //archive. defra. gov. uk/environment/waste/topics/hazwaste/index. htm

hypertext transfer protocol: //news. bbc. co. uk/1/hi/world/europe/6937301. short-term memory

hypertext transfer protocol: //www. defender. co. uk/politics/2010/nov/29/corporation-tax-8percent-exodus-multinationals

hypertext transfer protocol: //www. direct. gov. uk/en/Pensionsandretirementplanning/Companyandpersonalpensions/WorkplacePensions/DG_200722

hypertext transfer protocol: //www. marketwatch. com/story/iag-net-doubles-warns-on-cost-pressures-2012-02-29

hypertext transfer protocol: //www. defender. co. uk/business/2012/mar/30/iag-ba-takeover-bmi-branson

hypertext transfer protocol: //www. cnbc. com/id/46765040/The_Reason_for_Rising_Oil_Prices_Dan_Yergin