British Airways Research Paper Example | Topics and Well Written Essays - 2000 words

British Airways - Research Paper Example Three countries have been selected as the most appropriate targets for such initiative: Mexico, Brazil and Ukraine. Each of these countries can offer different benefits in regard to the firm’s particular plan. Mexico seems to meet all criteria as a target country for outsourcing activities. Brazil and Ukraine can also respond to the firm’s specific needs under the terms that appropriate arrangements of cooperation are made. The various aspects of such plan are presented below emphasizing on both the theoretical and practical implications of the specific project. Table of contents Executive Summary 2 1. Introduction 4 2. British Airways – Outsourcing of Aircraft maintenance services 4 2.1 Company overview 4 2.2 Aircraft maintenance services – industry characteristics 5 2.3 Outsourcing of Aircraft maintenance services 5 2.3.1 Brazil 5 2.3.2 Mexico 6 2.3.3 Ukraine 7 2.4 Outsourcing as a business strategy – theoretical perspectives 8 2.5 Conclusion 9 Re ferences 10 Appendix 13 1. Introduction The effects of firms’ strategic decisions can be quite important influencing the organizational performance either in the short or the long term. For this reason, when managers have to develop a critical strategic decision need to review all parameters of the relevant plan, taking into consideration potential failures or unexpected problems. In the Aviation industry a similar approach has to be used when such decisions need to be developed. This paper focuses on the potential effects of the decision of British Airways (BA) to outsource part of each supply chain activities, its aircraft maintenance services. There are three countries that have been reviewed, as of potential targets of this strategy: Brazil, Mexico and Ukraine. Each of these countries has been involved in such activities, but not at the same level. For example, Mexico has been found to be a country that can effectively support all aspects of outsourcing in regard to an ai r carrier’s aircraft maintenance services. The other two countries, Brazil and Ukraine seem to be less developed in this sector; still, Brazil and Ukraine also can offer a series of benefits to firms that would decide to outsource their aircraft maintenance services to these countries. The theoretical aspects of outsourcing, as a common business strategy are also presented in this paper, aiming to highlight the implications that BA would have to face in case it would decide to proceed to the specific plan, i.e. to outsource its aircraft maintenance services to Brazil, Mexico or Ukraine. 2. British Airways – Outsourcing of Aircraft maintenance services 2.1 Company overview British Airways is a major competitor in the global aviation industry. The firm was first established in 1919 under the name ‘Aircraft Transport and Travel Limited (AT&T)’ (British Airways History 2012). In the decades that followed the growth of the firm was significant (British Airways History 2012). At the end of 2011 the fleet of the company was estimated to ‘245 aircrafts’ (IAG About Us). In 2011, January, BA was merged with the Spanish Air Carrier, Iberia (IAG About Us); the firm resulted has been IAG, International Airlines Group, a firm based in Spain (IAG About Us). The financial performance of BA, as a member of IAG can be characterized as quite important, as indicating in the financial report of IAG, the parent company, for 2011 (Figure 4, Appendix). In a more