Global Economic
There is increasing confidence that the world economy is enjoying a classic cyclical recovery. Global economy is on a recovery path aided largely by the quick end to the Iraqi war, which generated positive outlook among markets and built up business and consumer confidence.
GDP growth rate was 0.2% in the first quarter of 2003 in UK, growth rate for the second and third quarter went up to 0.6%, pointing to a growth rate of 2.0% end 2003. Unemployment rate has been decreasing to a rate at 4.7% according to the National Statistics with Inflation falls (September: CPI now 1.1%, RPI 3.1%) in 2004. UK government increases the interest rate to avoid inflation during past years. HM-Treasury in November 2003 forecasted the economy to grow by 2.6% form 2004 to 2005 and slow down marginally to 2.4% from 2006 to 2007.
Section 1
Company Profile
British Airways Plc (BA). The Group's principal activities are the operation of international and domestic scheduled and charter air services for the carriage of passengers, freight and mail and the provision of ancillary services. The Group's global alliance includes new code share arrangements agreed with Finnair, Iberia and Cathay Pacific. The Group operates in such geographical areas as The United Kingdom, Continental Europe, The Americas, Africa, Middle East, Far East, Australasia and Indian sub-continent. For the fiscal year ended March 2004, the company generated revenues of £7,560 million. This figure represented a decrease of 1.7% on the £7,688 million in revenues posted by the company for fiscal 2003. Net profit was £130 million in fiscal 2004, up 80.6% from £72 million in fiscal 2002.
1.1 Position in the sector
British Airways (BA) is one of Europ ...