British Airways World Cargo
History
British Airways is the second largest global air transport company in the world. The airline is also among the most established airlines that have remained ahead of competitors for over a decade. The main areas of operation are the Heathrow and Gatwick airports. British Airways World Cargo began operating in the late 1990s at Heathrow. The Heathrow Cargo Center was automated for handling fresh produce and premium and unusual cargo. The airline also handled freight at the Stansted and Gatwick airports in London by partnering with British Airways Regional Cargo at every main local airport across the United Kingdom. The airline ended its operations in 2014 after merging with International Airlines Group (IAG) Cargo. The merger led to the discontinuation of dedicated cargo flights. IAG Cargo was founded as a consolidated airline group combining Spanish and Angola after Iberia and British Airways merged in 2011. The airline has an office in Madrid, but its centre of operations is in London. However, British Airways also established the CargoLogicAir airline in 2015 after the contract between British Airways World Cargo and Global Supply Systems was terminated.CargoLogicAir is now the only British cargo airline with a fleet of two Boeing 747 planes that operate chartered and scheduled freight services on routes between Asia, the UK, America, and Africa.
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Managerial Aspects
Corporate culture/philosophy
British Airways World Cargo operates using the British Airways corporate culture. The culture includes upgrading customer experience, growing the company’s operations, making the business more cost-effective, and establishing great corporate social responsibility. The company’s management must continuously revise the plan implemented to meet the company’s short-term and long-term goals and set priorities when there is an increase in fuel prices. The company’s culture is aligned with its vision to become the most responsible airline globally through reducing waste, carbon emission noise pollution, and recycling. The company’s most important objective is to ensure that it provides upgraded services to all customers. Monthly surveys are conducted to understand customers’ needs and preferences to create a competitive advantage. The company also invests in its workforce by training them regularly to equip them with the knowledge, skills, and competencies needed to complete assigned tasks. Annual training programs on service delivery are offered to improve customer service. The company’s code of conduct includes finance statement instructions and standing instructions. Standing instructions focus on improving internal control. Finance statement instructions focus on financial transparency and proper management of the company’s financial resources.
Key individuals involved
The British Airways board of directors governs British Airways World Cargo. The board is in charge of the airline’s strategic planning, risk assessment, finding solutions to problems, and operations management. The Chief Executive Officer heads the board. The key individuals involved include the Chief Information Officer, Commercial Director, Director of Investments and Alliances, Director of Engineering, General Counsel, and Director of People and Organizational Effectiveness.
·Organizational chart
British Airways World Cargo applies British Airways’ organizational structure. The structure includes the Chief Executive Officer, Chief Information and Digital Officer, Chief Financial Officer, Chief Commercial Officer, Chief Operating Officer, Director of Flight Operations, Head of Legal and Company Secretary, and the Director of People. A breakdown of the organizational structure is provided below.
·Mission statement
British Airways Cargo aligns its operations with the British Airways mission statement. According to Jarvis (2014), British Airways’ mission is to guarantee that customers are confident in the company’s services and act responsibly in collaboration with the customers to take care of the world. The company also focuses on being a leader in the global travel industry by providing the best services to its customers.
Resources
·Vehicles and employees
Before its merger into IAG Cargo, British Airways World Cargo operated three Boeing 747-8 aircraft under the lease agreement with Global Supply Systems, a British cargo airline located at the Stansted airport in London. The GSS had the license permitting it to transport cargo, passengers, and mail on aircraft with a minimum of 20 seats. The airline also used space on dedicated freighters from other carriers. The previously operated aircraft include Boeing 747-200F, 707-320C AND 747-400F, and Vickers 953c Merchantam.
·Key facilities and equipment
One of British Airways World Cargo’s key facilities is the World Cargo Center in London’s Heathrow Airport. According to James (2019), Heathrow is the largest port in the UK, with a network of more than 300 destinations globally. Another key facility is Stansted Airport. The airport is an international airport that serves more than 150 destinations across Africa, Asia, and Europe. The airport is a base for major low-cost European carriers. The third facility is the Gatwick airport in London. The airport is a leading low-cost airport with more than 200 destinations globally. British Airways World Cargo relies on its automated freight handling equipment to manage cargo and enhance efficiency in freight management, thus maintaining a competitive advantage over other carriers.
·Main airports served
British Airways World Cargo serves airports in the Middle East, Africa, East Asia, the Indian Subcontinent, Europe, and North America. The cargo is mainly transported from the airline’s Stansted base in London. Most of the cargo is transported to Dubai and Bahrain. The airline has more capacity on flights between Dubai and Bahrain, giving it a significant market share in the Saudi Arabian market and facilitating flexible access to customers within its network. The airline also has a large customer base in Muscat and Doha.
·Number and type of aircraft
Before the merger into IAG Cargo, British Airways World Cargo had a fleet of 3 Boeing 747-8F planes leased from Global Supply System and a Boeing 747-400F. Boeing 747-8 planes are wide-body aircraft launched by Boeing Commercial Airplanes in 2005. The Boeing 747-8F is a commercial cargo plane built with a nose door for flexible loading of large cargo. The aircraft was launched in 2011 and has developed a high demand among cargo airlines. The Boeing 747-400F is a wide-body aircraft launched in 1985. The plane is preferred in cargo transportation because of its mechanized system with specifications to handle different types of cargo.
Operations
·Operational philosophies
British Airways World Cargo uses a UK-centric philosophy, with most of its representatives being from the corporate head office at Heathrow. Meetings were also held at Heathrow. The airline maintains a European balance by ensuring that UK employee representatives are ineligible for top positions such as spokesperson and employee chair positions. Therefore, UK representatives are only eligible for a deputy position. The airline also uses a freighter program that guarantees same-day connections between most destinations and continents, road connections, and a reliable schedule. British Airways World Cargo also uses the Electronic Data Interchange operation model that facilitates the receipt and transmission of airway bill data, delivery of automated notification of freight receipt, house airway bill data, and the tracking and tracing of freight to improve transparency in measuring performance.
·Markets served
British Airways World Cargo’s main markets are the UK, the Middle East, and Europe. Before the merger into IAG Cargo, the British Airways Regional Cargo managed over 100,000 tons annually for British Airways and other global airlines, thus providing a large customer base for British Airways World Cargo. The European market was affected by Brexit, but the company leveraged its strengths in the Middle East to enhance its sustainability. Other markets served by the airline include Asia and Africa, although the amount of cargo transported to these markets is not as large as what was transported to the UK, Middle East, and Europe.
·Types of cargo
British Airways Cargo transports general and special cargo. General cargo includes goods that do not require special handling or extra precautions during transport. They include consumer goods and hardware. The special cargo includes goods that require special handling, documentation, labelling, and packaging due to their dimension, weight, nature, or value. They include live animals, dangerous goods, wet cargo, perishable goods, and temperature-sensitive goods. In 2020, British Airways partnered with IAG Cargo to transport ventilators and PPE for the UK government and the National Health Service. The airline removed seats from two grounded Boeing 777-200 British Airways aircraft to create more space for medical supplies from Beijing.
·Limitations/problems
The main limitation British Airways Cargo faced when operating independently before merging into IAG Cargo was high operational costs due to economic uncertainty. Fuel for the British Airways aircraft comes from the Middle East, an unstable region in terms of economic and political stability. The airline’s profit also depended on the oil sector’s changes in fuel prices. The changes in fuel prices also forced the airline to adjust the cost of cargo transportation in different countries, resulting in the loss of many customers who opted to use alternative transportation. Currently, the main limitation is Brexit. Europe is among the British Airway World Cargo’s markets. Therefore, Brexit reduced the company’s market share in Europe because of the reduction in imports.
Business Relationships
·Principle customers
British Airways World Cargo’s principal customers are global companies, NGOs, and governments in different countries. The airline focuses on establishing a long-term relationship with its customers to sustain business operations. After the COVID-19 pandemic, the company assisted IAG Cargo in developing a network for the transportation of medical equipment in regions that were worst hit by the pandemic in the UK. The airline also collaborated with carriers such as DHL and FedEx to facilitate cargo transportation to different destinations.
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British Airways founded the Oneworld alliance, which brings together top global airlines to offer high-quality services and convenience across over 900 destinations in over 150 countries. The leading airlines in the alliance are Malaysia, America, Japan, Srilanka, Alaska Airlines, British Airways, Finnair, Cathay Pacific, Iberia, Qatar Airways, Qantas, Royal Jordanian, and Royal Air Maroc. The airline has also formed subsidiaries such as the British Airways CityFlyer, a British Airways subsidiary operating a network of European and domestic UK services from the city airport in London. British Airways partnered with Qatar Airways, Finnair, Japan and Iberia Airlines, and China Southern. The airline partnered with Japan, Iberia, and Finnair to create a global network that provides more flight choices, better pricing, and better connections when travelling from Europe to Asia and Japan. The partnership with Qatar Airways aimed to improve the connection between Doha and the UK. The partnership with China Southern aimed to create better connections and more flight choices when travelling between China and the UK to create a better travel experience for customers.
· Code-sharing, joint ventures
British Airways World Cargo entered into a joint venture with IAG Cargo after the 2011 merger agreement between Iberia and British Airways. British Airways World Cargo and Iberia stopped being independent companies after the merger and were placed under the ownership of IAG Cargo. The IAG Cargo was created after Iberia Cargo merged with British Airways World Cargo in 2011 and later expanded its global network after integrating other airlines into the business (International Airlines Group, 2021). Additional airlines in IAG Cargo include Vueling and Aer Lingus. British Airways also has franchises. The franchises are independent airlines that use the airline’s flight codes and branding and match its high standards of hospitality, quality, and customer service. One of the franchises is SUN-AIR, an airline in Europe and Denmark.
·Unique agreements
One of the unique arrangements that British Airways has made that could impact British Airways World Cargo is code sharing. The code sharing program is a type of flight sharing that enables one airline to operate flights while the others sell seats on the flight with their codes. The Oneworld partners and other authorized partners list the code-sharing services on the airline’s website. Another arrangement is working with IAG Cargo to meet customer demands by converting British Airways grounded planes into cargo planes based on the type and amount of cargo that needs to be transported.
Future Plans
As mentioned earlier, British Airways World Cargo currently operates under IAG Cargo. Therefore, its future plans are influenced by IAG Cargo’s future plans. According to Tennant (2022), IAG Cargo announced that it would be restarting the cargo-only services between Hong Kong and London Heathrow Airport. Due to high consumer spending, the airline has already restarted the cargo-only services from Heathrow to Bangkok. The airline also plans to use the Boeing 787-9 aircraft for cargo-only services for the transportation of e-commerce, pharmaceutical goods, and perishable goods.IAG Cargo also has plans to invest in an efficient fleet of aircraft and use innovation to increase progress towards sustainable aircraft fuels, aircraft, and technologies that reduce carbon emissions. The airline is also leveraging new routes that will operate using the Airbus A330-200 aeroplane four times a week with a capacity of approximately 20 tons of goods, such as machinery, textiles, industrial goods, and electronic parts.
IAG Cargo also announced that it would start using sustainable aviation fuel in its cargo segment to reduce carbon emissions. The fuel will be manufactured from feedstock waste. According to a report by Puteaux (2022), sustainable aviation fuel can reduce carbon emissions by more than 90% and is widely acknowledged as the most effective strategy to reduce carbon footprint in air transportation.IAG Cargo also aims to use digital technology to enhance cargo transportation and freight management efficiency. The airline launched the cargo. one platform to improve bookkeeping. The airline intends to use cargo. to gather data on sales trends to improve customer experience. Another plan is to enable freight forwarders to book cargo capacity through the cargo.one platform and access to important destinations such as North America, Europe, Asia Pacific, Africa, the Middle East, and Latam.IAG Cargo also has plans to expand its cargo capacity by using the additional cargo flights added to the Iberia airline fleet. According to Brett (2022), IAG Cargo is accessing new routes that can be launched and has already begun launching new routes between Madrid and Washington DC and Madrid and Dallas to increase accessibility into different markets.
Summary
British Airways World Cargo is among the oldest cargo carriers in air transport. The airline has gained a large customer base worldwide by offering high-quality services and leveraging opportunities such as the growing market in the Middle East to stay ahead of competitors. The airline operates under the British Airways corporate culture, mission, and vision. It mainly focuses on expanding the company’s operations, improving customer experience, establishing great corporate special responsibility, and making the business more effective. The airline currently operates under IAG Cargo following a merger between Iberian and British Airways World Cargo in 2011. Its key facilities include the Heathrow, Stansted and Gatwick airports. The airline’s customer base is in the Middle East, Africa, East Asia, the Indian Subcontinent, Europe, and North America. Before the merger into IAG Cargo, British Airways World Cargo had a fleet of 3 Boeing 747-8F planes leased from Global Supply System and Boeing 747-400F.British Airways World Cargo will experience rapid growth under IAG Cargo upon the implementation of future plans that support cost-effectiveness and increase market share by connecting major cargo destinations and sources worldwide. British Airways World Cargo will also supplement the growth of IAG Cargo through the British Airways Oneworld alliance by increasing the airline’s customer reach through different top global airlines across over 900 destinations in over 150 countries. British Airways World Cargo airline should also focus on how it can create a mutually beneficial relationship with the airlines in the IAG Cargo merger to continue increasing its profitability.
References
Brett, D. (2022, June 6). IAG cargo looks to benefit from new US flights. Air Cargo News. https://www.aircargonews.net/airlines/iag-cargo-looks-to-benefit-from-new-us-flights/
International Airlines Group. (2021). IAG cargo. https://www.iairgroup.com/en/our-brands/iag-platforms/iag-cargo
James, K. (2019). Heathrow Airport 70 years and counting. Lulu.com.
Jarvis, P. (2014). British Airways: An illustrated history. Amberley Publishing.
Puteaux. (2022). Bolloré logistics partners with IAG cargo to purchase one million litres of sustainable aviation fuel: Bollore. Bolloré Transport & Logistics: logistique internationale, terminaux portuaires, exploitation ferroviaire: Bollore Transport. https://www.bollore-transport-logistics.com/en/media/press-releases/bollore-logistics-partners-with-iag-cargo-to-purchase-one-million-litres-of-sustainable-aviation-fuel
Tennant, C. (2022, May 31). British Airways resumes freight-only flights to Bangkok and Hong Kong. Simple Flying. https://simpleflying.com/british-airways-hong-kong-bangkok-cargo-flights/
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Question 
Submit a research paper on British Airways World Cargo using the formatted outline below.
*Times New Roman font, 12-pt, double-spaced
British Airways World Cargo
1. Table of Contents
2. Topic History/Background
-Detailed description
3. Managerial Aspects
-Corporate culture/philosophy
-Key individuals involved
-Organizational chart
-Mission statement
4. Resources, etc.
-Vehicles and employees
-Key facilities and equipment
-Main airports served
-Number and type of aircraft
5. Operations
-Operational philosophies
-Markets served
-Types of cargo
-Limitations/problems
6. Business Relationships
-Principle customers
-Partners, alliances, pacts
-Code-sharing, joint ventures
-Any unique agreements, arrangements, etc.
7. Future Plans
8. Summary/Comments
9. References