Political Factors Affecting British Airways
In the recent years, British Airways has been on the receiving end faced with a variety of issues as a result of politically motivated actions. In fact, there are political factors that have and still continue to impact the way British Airways undertakes its operations. It should be noted that political factors can either impact the company negatively or positively based on the particular elements and also how they are presented.
One of the greatest political factors that have impacted British Airways over the years is trade unions. In fact, this is an issue that has over the years led to heated debates, strikes of the airline workers among other unpleasant results. Since most of the employees of British Airways belong to trade unions, any issue that arises concerning their jobs is handled by the unions whose approaches have often been politicized or politically motivated in one way or another. Strikes by British airways workforce has led to the cancellation of flights and a series of other losses to the airline company.
Government regulations are yet other political factors that have had an impact on the performance of British Airways. Even though some of the regulations set by the government are in order and viewed as good to the airline industry in general, there are some that have been politically motivated. For instance, the crisis in the Middle East has led to the introduction of tougher measures in the airline industry, negatively impacting business. The government has been pushed to install control measures on where airplanes fly and even in the pricing policies. As a result of this, British Airways and other airline companies have had to look for other options on how to enhance business in the aviation industry.
It is the responsibility of the government to regulate fuel prices of various commodities in the country. However, in most occasions, these regulations are done with inclination to certain political might. As a result of this, fuel prices have not been able to stabilize. When the fuel prices keep hiking, it becomes difficult for airline companies like British Airways and other players in the industry to expand their operations as planned. Bear in mind that at any time that fuel prices soar, British Airways is pushed to also hike the cost of its services, thereby lowering the demand.
The Antitrust legislation is another politically inclined factor that has had an impact on British Airways. The legislation is a law that is intended to aid the promotion of free political competition by outlawing monopolies in the industry. When British Airways was accorded immunity from this legislation, the airline giant earned the opportunity for forming an alliance with American Airlines. This came after the European Competition Commission had rejected the idea of the merger between the two companies on allegation that it would reduce competition in the markets while only strengthening British Airways as a dominant stakeholder in the aviation industry.
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