Business Formation and Purpose of British Airways. Prepare this assignment according to the guidelines found in the APA Style Guide. An abstract is required. The UK government established the British Airways Board in 1972 to manage the operations of its two nationalized airline corporations. British Overseas Airways Corporation and British European Airways along with two regional airlines, Cambrian Airways, and Northeast Airlines (Britishairways.com, n.dAll these four airline services were integrated on 31st March 1974 to form British Airways. BA continued its operations for almost 13 years as a state-owned company. In February 1987, the BA was privatized as part of the Conservative government’s wider privatization plan. Soon after its privatization in 1987, the company acquired British Caledonian in the same year, Dan-Air in 1992, and British Midland International in 2012 so as to promote its global expansion. BA is a member of the Oneworld airline alliance along with other founding members like American Airlines, Qantas, Canadian Airlines, and Cathay Pacific. Today the Oneworld alliance has become the world’s third-largest airline alliance after SkyTeam and Star Alliance. On 21st January 2011, BA merged with Iberia to form the International Airlines Group (IAG), which is the parent company of BA. IAG is the third largest airline group in the world and the second-largest in Europe by annual revenues. It has been listed on the London Stock Exchange and in the FTSE 100 Index.
The BA operates under the airline industry. While analyzing the industrial classifications of the BA, it seems that the company maintains four major subsidiaries including BA CityFlyer, OpenSkies, British Airways Limited, and British Airways World Cargo. The BA CityFlyer, Didsbury based wholly-owned subsidiary airline of BA, operates a number of European and domestic services from London City Airport. This BA subsidiary has gained a United Kingdom Civil Aviation Authority Type A operating license to carry passengers, cargo, and mail on aircraft having 20 seats or above. In 2008, the BA CityFlyer signed a contract with Embraer to obtain the delivery of 11 E-Jet aircraft for the purpose of modernizing the fleet.