In 1987, British Airways was privatised, and over the next decade bowed from a tone ending-making matterised company into The Worlds Favourite Airline - a market-leading and very bankable plc. The strategy that transformed the company into a marketing-led and efficient performance was conceived and implemented by Lord King as Chairman, support by Sir Colin (subsequently Lord) Marshall: two tough businessmen who confronted rung inefficiencies and so improved service effectiveness that BA was rated internationalist business travellers favourite airline for several years in the 1990s.
Lord King having retired, Lord Marshall became Chairman and was succeeded as principal Executive by Bob Ayling, a long-time BA manager.
Ayling unbending in train a strategy to turn BA into a global airline - transcending the flag-carrier status (the role of a nations leading airline) it shared with Air France, Lufthansa, Swissair, Alitalia, Iberia - into an airline with no national home operating throughout the world. The dropping of the overtly British heritage and associations was reflected in a changed brand strategy. Away went sheet liveries featuring the Union flag, to be replaced by tailfins bearing themed designs from around the world. This was to mention the global traveller a savvy (mainly business) customer whose criteria for leveraging were service levels, range of destinations, promptness - not price.
But the re-branding became a debacle. Customers, faculty, confederation partners, shareholders and retailers (travel agents) all liked the British heritage and imagery and rebelled against the turn to an anonymous, characterless new entitle.
Ayling also focused on cost-reduction programmes which antagonised and demotivated BAs staff - and customers noticed the deterioration in behaviour of staff whose freight to customer service suddenly plummeted.
The upshot was that Ayling was ousted in a boardroom coup in March 2000. During his reign, a loss of 244m in the year to...
This was actually fun to read, given the style and speed of writing. Business essays are usually dry affairs, notwithstanding this made one actually feel for the team at BA.
I always felt that palava over changing the tailfins and clog to the Union flag was reminiscent of the mess over novel Coke. What a disaster that was....
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