A plan for growth
Successful businesses are growing businesses. We have clear plans to modernise our aircraft fleet and offer new services.
Last year we announced a new order for longhaul aircraft worth more than £4 billion. These will both replace existing fleet and expand our overall longhaul capacity. These aircraft are quieter, greener and more efficient and will establish a new gold standard for environmental performance. In 2008/09 we expect to launch a competition for additional longhaul aircraft, due for delivery in the second half of the decade.
To get the most of our investment in a modern fleet, we need Heathrow’s capacity to grow. That is why we have strongly backed the government’s plans for expanding the airport at Heathrow with a proposed third runway.
Over the course of BP11, we will launch services to 13 new destinations from Gatwick. We have purchased two new Airbus A318s to offer business class-only flights between London City airport and New York. Finally, through our new subsidiary OpenSkies, due to launch in June of this year, we will fly directly between continental Europe and the US.
Competitive cost base
In the last five years we have worked hard to improve our financial position so that we can invest in new products and services, and grow our business for the future.
We have to keep investing to stay ahead of the competition. But we will also need to stay in healthy financial shape to protect ourselves from the impact of a global economic slowdown and higher oil prices.
The price of fuel has almost trebled in five years. In 2007/08 our fuel bill was in excess of £2 billion for the first time. This financial year it will rise significantly again, and will represent around a third of our total costs.
Over the last few years, significant cost savings have been made across the business to offset the higher cost of fuel. Given the financial headwinds expected next year, we will continue to focus on maintaining a competitive cost base.
Corporate responsibility
BP11 establishes corporate responsibility as a new priority for our business. We will be doing even more to address our environmental impact. This will include cutting our carbon emissions further; reducing and recycling waste; minimising our contribution to air and noise pollution; and continuing to invest in our community relations programme.
Our partnership in the London 2012 Olympic and Paralympic Games will be the focus for some of our community activities, including community work in East London and the launch of a travel bursary scheme for young athletes.
We are putting corporate responsibility centre stage because we believe it matters and will help us stand out from our competitors. We intend to lead our industry in corporate responsibility.