Financial Outlook For A Troubled Global Industry

Abstract

In early 2005, British Airways plans to start implementing its corporate restructuring plan with a sizeable layoff involved in response to the pressures from the competition at home and abroad. Virgin Atlantic, on the other hand, decided to test a unique approach towards name recognition of its airline by having its founding chair, Sir Richard Branson, participate in a Fall season TV Reality show in America. Their American counterparts are responding with union negotiation, layoffs, starting no-frills, low cost airlines among other strategic responses to meet the competitive pressures head on. This paper analyzes the severe threat to the airlines industry in a “ pre and post 9/11” global economic  perspective to focus on the future of the revamped industry.