Impact Of IT On Airlines Industry: British Airways Essay

Question:

Discuss about the Impact of IT on Airlines Industry for British Airways.

Answer:

Introduction

As we are going to discuss about impact of IT on business of Airlines Industry, so here the selected business company is British Airways that is one of the top airlines companies. British Airways is a large airline and global airline in the United Kingdom. A million of passengers are carried by this airline every year. The turnover of this company was ?m 11,333 in 2015 and it is increasing now. There are various competitors of British Airways that put influence over revenue of this airlines. British Airways deals with Information Technology for a perfect management of passengers, flights, baggage, ticket bookings, seat bookings and cost of flights according to different classes. It is very difficult and cumbersome to manage these big activities manually. Therefore, IT applications are beneficial to use for handling this type of complex business operations.

Discussion

In this segment, we will emphasize on actual need of IT for business of British Airways and what kind of benefits and challenges will be provided by IT to BA.

Does Business of British Airways need IT?

Yes, business of British Airways need IT. As we have already discussed above that there are various operations of British Airways that cannot be managed manually and will take time to complete. In this case, Information Technology has capability to perform these operations in appropriate ways and accurate outcomes can be generated in less time. According to analysis, it is found that after investment in IT sector, this airlines has got 20% increment in profit. Due to a solid information system, British Airways is managing its airlines service in appropriate ways. It is sake of information technology that customers of British Airways are using its services easily. Besides this, cost of IT applications is also less that are used for online ticket booking, seat reservation and for other services by customers, so for BA there will be no issue to arrange very big budget for IT services. The high level security is also provided by IT applications for company’s confidential information which is required by every business organization.

Importance of IT for Business Survival of British Airways

The main thing of information technology in business of British Airways is rising profit of company with 20% (ITC Infotech, 2017). According to Chief Information Officer of British Airways Paul Coby, the technology is used by British Airways to drive the rearrangement of business processes, to cut down heavy costs and removing complexity of business processes. Besides this, to transform short haul flight businesses IT strategy also provides help to BA (vivianmeril, 2017).

In UK, the competition level of airlines industry is increasing day by day. To survive in this competitive market, IT applications are required to use by British Airways. As we know that customer support and satisfaction is important for every business organization and in airline industry it has become a major issue to survive. British Airways Company also needs to focus on this problem. The latest technologies of IT are helpful to resolve this problem and BA can use these technologies to provide higher level of customer satisfaction and to survive in business (Czerny and Zhang, 2014). The resource management technique plays an important role in management of British Airlines business. BA is a largest airlines in United Kingdom, so it is difficult to manage each resource here properly. In this case, IT plays an important role to automate the complex issues such as finance and human resources and tangible goods of British Airways. Cloud based solutions and internet are also helpful for software engineers of BA to introduce cloud based enterprise solutions to manage business resources properly.

Requirement to Apply IT for British Airways

To get desired outcomes from information technology, it is necessary to fulfill its all key requirements by British Airways. There are some essential requirements of IT to apply it into business of British Airways (Eun-Song Bae and Daecheol Kim, 2014). First of all, to implement a new IT application into business, BA has to hire skilled and experienced workers who have sound knowledge in information technology. The IT application that will be used in British Airways will not be easy that is why experienced and qualified personnel are required for this purpose. The new implemented technology will be used by all employees of British Airways, therefore, every employee who will work with new IT application that should have knowledge about handling of automatic system that can help to solve critical problems such as decision making etc. It is also necessary for British Airways to use a system that is capable to handle IT software solutions that are used for ticketing system. (Tracy, 2017).

How British Airways uses IT?

Information Technology is considered a central part of airline business. The main goals of IT is to achieve objectives of appropriate communication with passengers, to enhance reliability of booking system of BA and to store passengers’ information in secured way. Due to usage of appropriate software solutions of IT by British Airways, this airlines is highly preferred as compare to other airlines companies (Arjomandi and Seufert, 2014). The latest smart phone technologies such as android, iPhone and windows applications are useful to access scheduling and rescheduling of flights. It has become easier for passengers to book and cancel tickets by using smartphones (ComputerWeekly, 2017). To get latest updates about airline industry, information technology is also considered so much helpful. Another essential way in which IT is used in British Airways is automation (Escobari, 2017). The latest software solution that is used in British Airways has potential to communicate with flights and to update the latest data for security purpose.

Benefits and Advantages of Information Technology

Information Technology has provided various benefits to British Airways and one of those benefits is the scope of analyze the specific data regarding the business and to plan business accordingly. Besides this, various important tools are provided by Information Technology that will be helpful to solve complicated problems and to make the plan for scalability of British Airways. The implementation of concept of online ticket booking by local and remote customers of British Airways by IT solution, is a key benefit of using of IT in BA. This process is known as digitalized marketing. The modern modes to communicate with customers online such as emails, messages, calling etc. helps BA to attract more customers towards its business. Besides this, the usage of cloud platform of IT helps BA to store huge amount of information of passengers into cloud database that is easier to access from anywhere in the world (Business-standard.com, 2017).

Risks of IT for British Airways Business

Besides benefits of IT in British Airways, there are also some risk factors exist that encounter by this airlines. The failure of hardware and software components is considered most vulnerable risk. Abnormal shutdown of systems and damage of server are common problems that can be encountered by British Airways (Google Books, 2017). This may cause great problems for British Airways and for its passengers due to heavy loss of information from database. The database of BA consists of personal information of customers and their payment information and due to hardware or software damage whole information can be lost. Other issue is of security and privacy issue of internet that is violated by hacking and phishing attacks of hackers (Harvard Business Review, 2017). It is necessary for British Airways to be careful about these issues while using IT applications (Escobari and Jindapon, 2014).

How British Airways can Maintain and Monitor IT?

The maintenance and monitoring of IT is important for British Airways. There are several technologies that are used by airlines industry to maintain IT and British Airways should also use those technologies. Firstly it is necessary for management of BA to focus on overall infrastructure of company. The experienced and responsible employees of BA should be organized to monitor the systems of Information Technology. Besides this, advanced and intelligent system monitoring tools should be used by BA to identify bugs and errors into system and to produce accurate results. In this way, IT can be maintained and monitoring into British Airways.

Conclusion

As we can see that how a large airlines company British Airways has influence of Information Technology. There are various benefits are provided by IT to British Airways, but some risk factors are also included in it regarding security, privacy and system violation that must be controlled at developers end and British Airlines should also be careful about these issues.

References

ComputerWeekly. (2017). British Airways cites IT investment as key factor in 20% profit increase. [online] Available at: [Accessed 30 May 2017].

vivianmeril (2017). Introduction to Airline Industry. [online] Slideshare.net. Available at: [Accessed 30 May 2017].

Escobari, D. and Jindapon, P. (2014). Price discrimination through refund contracts in airlines. International Journal of Industrial Organization, 34, pp.1-8.

ITC Infotech. (2017). Airlines IT Solutions - Airline Industry Consulting Service | ITC Infotech. [online] Available at: [Accessed 30 May 2017].

Tracy, C. (2017). Top 10 Largest Airlines in the World - Tharawat Magazine. [online] Tharawat Magazine. Available at: [Accessed 30 May 2017].

Arjomandi, A. and Seufert, J. (2014). An evaluation of the world's major airlines' technical and environmental performance. Economic Modelling, 41, pp.133-144.

Czerny, A. and Zhang, A. (2014). Airport congestion pricing when airlines price discriminate. Transportation Research Part B: Methodological, 65, pp.77-89.

Escobari, D. (2017). Estimating Dynamic Demand for Airlines. SSRN Electronic Journal.

Business-standard.com. (2017). London airports mayhem: British Airways blames Indian IT services. [online] Available at: [Accessed 30 May 2017].

Harvard Business Review. (2017). Competing on Customer Service: An Interview with British Airways’ Sir Colin Marshall. [online] Available at: [Accessed 30 May 2017].

Eun-Song Bae and Daecheol Kim (2014). Service Quality Improvement for Airlines by Utilizing QFD and Fuzzy Theory. Productivity Review, 28(1), pp.75-98.

Google Books. (2017). INTRODUCTION TO INFORMATION TECHNOLOGY, 2ND ED (With CD ). [online] Available at: [Accessed 30 May 2017].

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