Sunday, November 25, 2007

Privatisation - British Airways

Sir John King, later Lord King, was selected as Chairman in 1981 with the mission of preparing the airline for privatisation.When King knew Colin Marshall as CEO in 1983. King was credited with turning just about the loss-making giant into one of the most profitable air carriers in the world, boldly claiming to be "The World's Favourite Airline", while many other large airlines struggled. The airline's flotilla and route map were overhauled in the early years of King's tenure, with brand and advertising experts being recruited to overhaul the airline's image. Over 23,000 jobs were shed in the early 1980s, though King managed the extensive trick of boosting staff morale and modernise operations at the same time. Lord King also recognised the importance of Concorde to the company's business plan, and used the supersonic airliner to win business customers by guaranteeing a certain number of Concorde upgrades in return for corporate accounts with BA.

The flag carrier was privatised and floated on the London Stock Exchange in February 1987 by the traditional government, with the initial share offering being 11 times oversubscribed. In April 1988 British Airways effected the contentious takeover of Britain's second-force airline British Caledonian, and in 1992 absorbed Gatwick-based carrier Dan-Air.

No comments: