Strategic partnerships
In an exciting development for the oneworld alliance, we are exploring opportunities for closer cooperation with American Airlines and Continental Airlines.
In the UK, our franchise model has outlived its purpose and we took the opportunity to end our franchise with GB Airways when they made it clear they wanted to sell their business. We subsequently launched our own services on some of the key routes previously operated by our franchisee and we are pleased that they have proved to be very popular. We are the only airline offering the benefits of a full service carrier from Gatwick to destinations such as Antalya, Faro and Malaga.
We have also announced we are ending our franchise agreement with Loganair, and earlier in the year we ended our relationship with BMED. Our overseas franchises, however, are not affected as they provide useful feeder traffic and extend our brand into areas we cannot serve ourselves.
Our relationship with Iberia continues to strengthen and during the year we increased our shareholding from 9.95 to 13.15 per cent. This purchase reflects the strategic importance we attach to our relationship with Iberia and our continued confidence in its management. We will continue to consider further opportunities to increase our stake.
Sponsorship
Sponsorship allows us to give our support to worthy causes and sporting events. We are delighted and proud to support London’s bid for the 2012 Olympic and Paralympic Games. We will play an integral role in welcoming the world to London in 2012.
London 2012 is about inspiring young people, transforming and inspiring a nation, creating a lasting legacy for Britain and encouraging people to actively participate in the Games.
We will support this vision with a number of initiatives over the next four years that will invest in communities where the Games will be staged, support diversity and celebrate Britain at its best.
The British Airways Olympic Youth Bursary Scheme has been created with the specific aim of encouraging young people to get involved in sport and assist the next generation of Olympic hopefuls and aspiring athletes.
Looking forward
The history of aviation economics indicates that it is important to be in a healthy financial condition at the start of a cyclical downturn. With oil at $120 a barrel, that’s exactly where we are now. In the coming year we will need a sensible financial outcome, albeit down on the year just ended, but it will be especially important to win back our customers’ trust.
Martin Broughton, Chairman