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Our strategy and objectives

Our business plan

Our business plan is built around our Global Premium Airline strategy, and defines in detail both what we need to achieve as a business, and how we need to work together. It encompasses our Compete 2012 change programme. This is linked to our sponsorship of the London 2012 Olympics and Paralympic Games, and is tasked with refreshing our culture. The plan is structured around five key themes – Colleagues, Customer, Performance, Excellence and Partnerships:

BUSINESS PLAN
THEME

Colleagues

what we do to improve how we work together and how we develop our people so that we are a high-performing organisation

Despite the tough economic environment, and challenging industrial relations, we saw huge commitment to the success of British Airways right across the Company, including high levels of volunteering to support the operation through disruption. In 2010/11 we will look to build on this in a number of ways. We will work to boost the engagement right across the Company, rallying our colleagues with a drive towards ever greater customer service. We will continue to make targeted investments to improve the way we manage our talent, with the focus this year on the development of our front-line leaders. And we will embed our customer-centric outlook into our reward framework, and increasingly use performance-related pay.

Customer

what we do to deliver an outstanding experience for all our customers

We will continue to evolve our products, for instance through the roll-out of the restyled First cabin, and through the development of products fit for the Boeing 787s and Airbus 380s we have on order. We will refine the Terminal 5 experience for premium passengers, as well as making targeted investments in overseas lounges. A new in-flight entertainment system is being introduced on our new longhaul aircraft, starting with our Boeing 777-300ERs in 2010. We will continue the targeted development of ba.com that has made it such an important part of the way customers interact with us. We will work to reaffirm our brand in a changing and fiercely competitive marketplace.

Performance

what we do to improve the financial performance of the Company and deliver for our shareholders

We will carefully monitor opportunities to adjust capacity as economic conditions allow, and we anticipate less need to reduce flying outside the peak periods. We will ensure structural changes in the cost base are maintained by keeping controllable costs flat even as business conditions improve. We will continue to compete for new slots. We intend to grow our mileage and holiday businesses, and boost revenues from third-party engineering, retailing and the development of non-air partnerships. Our new Boeing 777-300ERs, with their improved fuel efficiency and environmental performance, will begin to arrive in 2010.

Excellence

what we do to maintain and improve our operational performance and the quality of our processes so that we improve continuously

We will build on record-breaking levels of operational performance through continuous improvement of the way we plan and control the operation, including laying the foundations for improvements to a number of our operational systems. We will extend the brilliant Terminal 5 experience to more of our services through the development of the second satellite Terminal 5C (opening in 2011), as well as working with the new owners of Gatwick to improve the customer service offering in the North Terminal. We will roll out our Airmanship Programme across our ramp and baggage service community raising ground safety. And we will continue to develop the skills and environment that encourage Lean Continuous Improvement across the business.

Partnerships

what we do to work with other airlines, other parts of the airline/travel industry, our key suppliers, and the communities we are based in

Subject to regulatory approval, we will implement a Joint Business Agreement with American Airlines and Iberia, delivering a range of customer benefits. The agreement will significantly extend the connections we offer, improve flight schedules, and deliver enhanced frequent flyer benefits, improved customer service and better disruption management. We will continue to develop partnerships, such as those announced this year with India’s Kingfisher Airlines and the Russian carrier S7, that will improve our position in the global cities of today and tomorrow.

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