ABSTRACT
British Airways (BA) presents an interesting case of a company that has improved its static and dynamic efficiency in internal and external operational practice. In recent years, due to a recognition of a significant shift in the competitive and regulatory environment in which it must operate, BA has been forced to search for efficiency gains of the type referred to in this study as transformational efficiency gains. The chosen route has been through alliances, first with USAir and more recently with American Airlines, and through a fundamental reappraisal of the historic boundaries of the firm. This latter approach has been based on the use of a radical outsourcing methodology drawing upon core competence thinking. As indicated in the conclusion of this book, it is clear that this methodology and way of thinking may well have contributed to BA’s recent problems with its own staff. Also, it seems that the company may have some way to go in achieving supply alignment and procurement competence. A further problem may be that in searching for strategic focus the company will lose its earlier competence in static and dynamic efficiency.
