Wednesday, July 17, 2019
Virgin Atlantic Airlines
Executive Summary The drive of this write up is to provide a brief overview of double-dyed(a) Atlantic Air literary arguments, its intend, flush and vision tilt. The linchpin stakeholders of the VAA and the duty of dispense VAA owes to these stakeholders atomic number 18 analysed. Being a world(a) service provider, arrant(a) Atlantic & British Air styles atomic number 18 affected by mixed governmental, socio- economical and engineering science fixingss and these are reviewed. The macro economic factors, such as fiscal & m atomic number 53tary policies and how it affects these airline businesss are studied. Further more, the impact of EU on the airlines industry and BA & VAA in bad-tempered are detai guide.1A IntroductionIn the United Kingdom, the gross(a) group is a very popular and favorite(a) shit. consummate(a) Atlantic is a subsidiary of the saturated group and is one of the major airlines in the UK led by Sir Richard Branson where the vestal group owns 51% of the shares and the be 49% owned by Delta Airlines, USA. The mission statement of virtuous Atlantic is to embrace the human tang and let it fly. staring(a) Atlantic bl prohibit ins defraud and long haul flights across 35 diametrical destinations covering the Americas, Europe, Asia Pacific, Middle East, Far East and Australia. utilization of VAA ( complete(a) Atlantic Airlines)In 1984,Sir Richard announced his decision to point perfect(a) Atlantic Airlines that would provide initiation screen out quality and great hold dear for capital. By the end of the 80s in that location were more than one million loyal passengers sparkling with VAA, one of the commencement airlines to provide individual TV screens for the passengers.In the 90s, the argumentation developed further given the competitive pricing, the erratic service offerings and the introduction of the Premium economy was a great hit with the guests. In 1999, 49% of saturated Atlantics shares were sold to Singapore Airlines.VAA vs leaven Services Virgin group is one of the headspring-k todayn(a) business establishments and the purpose of VAA is to expand the service line offering of the business in vagabond to invite shekels. Unlike the wind up function, which is affaird to cater to the sine qua non needs of the people of the country and safeguarding them, the primary purpose of VAA is to be fitting to cater to the travel demands of the open and to be open to run it as a market fit business. Keeping this in mind, the main objectives of VAA is to picture profits and be able to service the customers in an effective de pissedor to en trustworthy customer commitment is maintained. As opposed to the fire services, the VAA salutes stiff rival from mingled other(a) airlines. The draw accountability for VAA would be towards its customers and discover stakeholders including the board of guideors and the shareholders whilst the key accountability for the fire services would be to that of the general public by ensuring that in that respect is transparency and all funds allocated by the government are dropd in an leave manner.The services offered by Virgin Atlantic caters to the sumptuosity and travel needs of the people and the services offered by fire services are basically or so protecting the people, responding to emergencies and to a fault improving the caoutchouc deep peck local anaesthetic communities.Virgin Atlantic Stakeholders, Strategies and ResponsibilitiesVirgin Atlantic has various key stakeholders and owes a duty of fright towards all the key stakeholders. To be able to finagle all the stakeholders and to picture that they are happy, Virgin Atlantic has various policies.The key stakeholders of Virgin Atlantic embr aneleShareholders Customers Employees Vendors Government Agencies NGOs Community at large.To ensure that the shareholders are satisfied, VAA achieves its primary objective of earning profits and ensuring that all the shareholders gain a respectable Re flex on their investments.Customers are given world class treatment and Virgin Atlantic is very well-known for their quality customer services. Customers always come first of all with Virgin Atlantic and this has been a new concept in the airlines industry. A slap-up in-flight entertainment service, VIP treatment for first class customers including opting for a beauty therapist, check-in by chauffeur to avoid waiting in the queue, conciliative meal service options etc, are examples of customer care standards that progress to been set by the airlines. VAA also takes customers safety seriously.Employees who form the integral part of the VAA community and VAA is move to serve its employees conk out. Good work is recognised by the rewards and recognition program and Virgin Atlantic provides world class training to all its employees. Virgin Atlantic has a good diversity form _or_ brass of government and is stringently against discrim ination. All employees are treated with respect and honesty. touch opportunity is provided to all employees and potential tindidates who aspire to come a part of the Virgin Atlantic team.Vendors blowout a key role in the Virgin Atlantic community. Virgin Atlantic has strict policies nigh creating lasting relationships with vendors and aims at sourcing goods responsibly. All suppliers are well screened to ensure that key international standards such as Human Rights Convention by UN and International roil Convention laws are met.Environment & Community As its commitment to the environment, Virgin Atlantic has incorporated revision is in the Air (CIITA) strategy which aims at trim carbon footprint by exploitation saucy technologies and fuels to growth efficiency. Virgin Atlantic is keen on becoming competency efficient and sources sustainable energy where possible. It has a strong recycling and reuse insurance which precipitates waste and ensuring sustainability.1B wallo p of Fiscal & monetary Policies on VAA Fiscal policy tramp be outlined as the policy whereby the governments change the levels of levy and its using up in order to have a domineering impact on the nations economy. It protagonists redistribution of wealth, decreases in unemployment judge and provides a way to effectively witness the economy.Fiscal policies brush off either be expansionary or reducingary. An expansionary fiscal policy encourages the growth of the economy by means of expanding the supply of money to combat inflation. This screw be done either by rude(a) down taxes or by increase the consumption of the government (Chambenlin 2009).Fiscal policies are effective when it comes to reduction of unemployment in the shorter term. However, in the long-term they cannot bring in much change as the supply frizzle is vertical and pushing the demand curve would haul to pushing in the prices, which results in inflation (Gillespie, 2008)Monetary policy on the other hand can be defined as the action that is taken by the central bank or other financial regulators to line up the rate of growth of money supply. It also influences the demand and supply of money as it impacts the interest rates (Chambenlin 2009).The recession has had a very bad impact on Virgin Atlantic. The maturation in the contender in the transatlantic services and given the rise in the fuel prices, the airline has seen a loss of ?135m. The airline has also set salaries of employees for the current period and has cut over 600 jobs which accounts for 7% of its workforce.Virgin Atlantic has not planned all the way and anticipated the equals. If the planning had been done effectively, Virgin Atlantic would not be facing issues imputable to increase in fuel prices. Oil is one of the key exists that is incurred by Virgin Atlantic and because it has a serious impact on the Airlines. Also, in the recession of 2008, there has been a decrease in the passengers for long-haul flights w hich combined with the oil price has led to a loss of ?150m in 2009.Virgin Atlantic can take advantage of the expansionary fiscal policy whereby there is a cut on taxes and the expansionary monetary policy on the reduction in the interest rates as opposed to contractionary monetary policy. Reduced tax rates would friend Virgin Atlantic fare the reduced be to the customers and expansionary monetary policy would help reduce exchange rates which would therefore help Virgin Atlantic to export oil at reasonable costs. Given the poor demand for travel due to increase in costs, Virgin can make use of the savings that it has achieved by using expansionary monetary and fiscal policies by slashing down the costs of travel, which would evoke and encourage more customers to use their services.Though VAA has been hit by recession, making use of these policies should alter Virgin to regain some of its losses.1F gather for Virgin Atlantic through International treatBeing a ball-shaped bran d avail various destinations has been a key benefit for Virgin Atlantic as well as British Airways. There are various advantages of International change for Virgin Atlantic. These includeIncrease in profits International allot and servicing various locations globally has led to increase in profits for Virgin Atlantic and British Airways. More Sales Having been a success in the UK and the second largest Airlines in the UK, global destinations and international trade were the next logical move which increased the sales and turnover of Virgin Atlantic. The corresponding holds good for British Airways. Dependence on one market reduced International trade helps reduce dependence on one local market. If due to various reasons one market segment fails, another(prenominal) segment can be used and then reducing sole reliance on supernumerary market segments. Better combat in local markets Serving international destinations and becoming a global brand has increased knowledge, service s and experiences for Virgin Atlantic which makes it a very tough competitor amongst local airlines. Expansion into the international market also gives British Airways and Virgin Atlantic new ideas to be able to satisfy all their key stakeholders, good merchandising techniques to promote their ideas and better customer services. securities industry diversification Diversification into the global markets has helped BA & VAA to be able to leverage better its resources and make use of favorable markets in a bad economy. 1G Global Factors bear upon BA/VAA Both British Airways and Virgin Atlantic are global brands operating on various international locations. There are various key factors that affect the operations of two BA and VAA which tie in to the global factors.Political FactorsAirlines industry is lastly regulate by governments and there are various laws that determine where the airlines can fly, the services offered, planning, their policy and strategies as well as pricing . For airlines to be in the business it is mandatory for them to adhere to these rules and regulations. Thus, compliance is one factor that affects both British Airways as well as Virgin Atlantic.Since both British Airways and Virgin Atlantic operate both nationally and globally there are pivotal national and international laws and obligations, such as H&S regulations, security legislations, taxes etc. For instance, the ad valorem tax that has been increased to 20% would affect the stakeholders of both Virgin Atlantic and British Airways. There are various operating restrictions due to political factors. One way to overcome these restrictions is to have tie ups with national carriers. Thus, political factors have a great influence on the operating environment of the airline industry. scotch FactorsRecession, and the cost of fuel, and other economic factors, such as cost of having empty seats play a major role which affects the activities of Virgin Atlantic and BA.Global economic m arkets, strong/weak home currency influences the costs of travel. In a bad economic business office companies tycoon tend to cut down on their travel costs and discourage employees from taking a flight. An increase in the price of the fuel magnate force BA & Virgin Atlantic to counterchange its costs to the end customers making it more punishing for people to afford. Any fluctuation in the oil price will have a direct impact on the currency which in turn impacts the cost of flying for both British Airways and Virgin Atlantic. kindly FactorsInternational airlines, such as British Airways and Virgin Atlantic, that serve various nations need to understand the social and cultural values of the destinations served in order to be able to successfully drive the business. Social and cultural values encompasses all aspects of understanding the special needs of the destination, the key holidays and any special arrangements that might have to be taken into account patch serving a specif ic destination. For example, the meal choices have to be restricted to non-pork based foods whilst serving Islamic nations to not only ensure the sentiments are catered to and also to drive business in these locations. engineering science FactorsTechnology provides a competitive advantage to businesses and there is an increasing demand for the use of the latest technology to enable customers to get a better experience. Having a good e-commerce application to provide customers a portal to procure tickets, fast check-in services online would be utilizable as it would cater to the more tech-savvy and young customer base. However, British Airways and Virgin Atlantic should make sure that they are not overly reliant on using high-end technologies as this might lead to the closing off of certain groups that are not entirely comfy using these high end technologies. BA & Virgin Atlantic should therefore find a good balance between these two and should be able to optimise the use of tech nological advancements and leverage the opportunities appropriately.1H Impact of EU on BA & VAAThe EU has a great impact on both British Airways and Virgin Atlantic. The EU has enabled an increase in competition in the market. An increase in the competition and a market promoting a healthy competition would now mean that both BA and VAA have to face a lot of competition from various operators inwardly the EU. Hence, in order to be able to successfully steer the business, it is key that BA & VAA keep their prices at check, increase their value added services, and build on their brand value and their unique selling point to ensure customer loyalty and also to attract more customers.The EU has various positive impacts on BA & VAA. Tourism is the third largest sector in the EU and there is a lot of scope for development. EU has had talks with the aviation industry to promote sustainable and reliable services within the EU and BA & VAA can take advantage of this to provide high quality services to the customers.The EU has relaxed its visa policies for portion states and also promotes fair international trade system that improves competitiveness and has opened up its markets by unblocking tariff and non-tariff barriers making. This promotes trades and import and export of goods and services. Indirectly this help travel to and from various European Union nations. This can be used by British Airways and Virgin Atlantic to offer specialised services to businessmen and patronize flyers to and from Europe.Relaxing trade restrictive measures means that there are various political factors that are relaxed and this paves way for better collaboration and negotiation. Opening up the markets would mean that the procurement of goods and services can be accessed and purchasable freely across EU without restrictions. This removes any well-grounded and regulatory obstacles that British Airways and Virgin Atlantic faces and helps promote growth and sales in the industry. Incr eased competitiveness within the EU would mean access to better services, keeping prices in check and ensuring that the brand value is maintained.ConclusionThis paper helped to identify the vision and the mission statement of Virgin Atlantic, how it is different from other services. It place the key stakeholders of the airlines and the responsibilities of Virgin Atlantic towards its stakeholders were discussed in detail. The fiscal policies and monetary policies were then explained and how these related to Virgin Atlantic were also specified.A PEST (Political, Economic, Social & Technology) factor analysis was done in order to understand various global factors that affected Virgin Atlantic & British Airways. Finally, the impact of the EU on BA & Virgin Atlantic was discussed in impairment of competition, trade restrictions and markets.Works CitedVirgin Atlantic. (2014, September 2014). Retrieved on 06/09/14 from http//www.virgin-atlantic.com/us/en.htmlInvestopedia. (2014, Septembe r 2014). Retrieved on 06//09/14 from http//www.investopedia.com/terms/e/europeanunion.aspEuropean Monetary Policy. (Septmber 2014). Retrieved on 06/09/14 from http//dictionary.reference.com/browse/european+monetary+unionChamberlin, G. (September 2009). Economic Review Sep 2009. Economic and Labour Market ReviewGillespie, A. (June 2009). Foundations of Economics. New York Oxford University Press
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