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Chief Executive’s review

Terminal 5

During the year we saw satisfaction ratings across our network rise by eight points to 72 per cent. Some 21 million passengers have passed through Terminal 5 in its first year. Satisfaction levels among them have risen steadily through the year to 76 per cent.

Environmental responsibility

Some companies might be tempted to use the current recession as an excuse to backtrack on their social and environmental commitments. That is not our approach. We remain absolutely committed to being a responsible airline.

We believe we are in a strong position to answer the critics who say a third runway at Heathrow will be an environmental disaster. So it is vital that we keep providing rationally argued proof.

That is one reason why we have gone further than the rest of our industry in setting targets for reducing our emissions. We have committed to cutting our carbon emissions from 110 to 83 grammes per passenger kilometre between 2005 and 2025. Our longer-term goal is to halve our net CO2 emissions by 2050.

Outlook

We anticipate a very difficult operating environment through the rest of this year. We have responded quickly, announcing a 2 per cent reduction in our schedule over the summer. This coming winter we expect to reduce shorthaul services at Gatwick by 10 per cent and we will reduce our fleet there from 32 to 24 aircraft. Our capacity at London City will also be further cut.

The next few months will be uncomfortable for everyone within our business. We need to make lasting changes in the way we work and serve our customers. If we do, we will be ready for recovery when it comes.

Our people within the business understand this. The remarkable improvement in our performance that they have achieved already is proof of that. I know I can count on our colleagues to support our efforts to see out the recession and firmly establish British Airways as the world’s leading global premium airline.

Willie Walsh, Chief Executive

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