英國留學生dissertation-企業責任報告-航空公司如何面臨高油價的競爭與產能過剩-Corporate Responsibility

英國dissertation網提供英國留學生dissertation，英國留學生企業責任報告范文，本文是一篇關于英國某航空公司面臨高油價的競爭與產能過剩問題如何發展的運營報告（Corporate Responsibility Report）。

Chief ExecutiveForeword
In recent years, we have become accustomed to dealing with majorthreats to the viability and success of our business. This year has been noexception. We have had to cope with a high fuel price, against a marketbackground of fierce competition and excess global airline capacity.
Contents
Foreword 1
Overview 2
Building a sustainable business 3
Working together as one team 6
Ensuring safety and security 8
Valuing our customers 9
Supporting communities 10
Respecting the environment 12
Independent assurance 17
Key performance indicators 18
Glossary and notes 20
Contact us 21
The fact that we have continued to improveour profit margins – and have moved a stepcloser to our 10 per cent margin target – isa reflection of the hard work put in acrossthe airline. I am pleased that this year wehave been able to provide a financialrecognition of this effort to all ouremployees, through the employee rewardincentive programme.
Financial success is critical to us.Our ability to survive and invest for thefuture depends upon it. But the waywe do business is also vitally important.
This report reviews our progress andperformance in managing our businessresponsibly over the last year. It shows how
we aim to meet the concerns of keystakeholders – and the way we showrespect for future generations through ourapproach to the environment.
This year, we have set out our reportslightly differently from previous editions.
We have organised it around the key goalswe have set as a business, as part of ‘The BA Way’. ‘The BA Way’ describes the typeof business which British Airways aims tobe, the values which underpin ourapproach, and the measures by which wewill gauge success.
We recognise that we will only succeedin business in partnership with keystakeholders – our investors, ouremployees, our customers and thecommunities within which we operate.
The report sets out how we are workingwith these partners to create a sustainablebusiness for the longer term.With our employees, we are currently inthe middle of a major programme ofemployee involvement and engagement.
This is designed to ensure our people havea shared understanding of our businesschallenges and opportunities, and how theirrole contributes. A key element of thisprogramme is the opportunitytoparticipate in an Owning our Futureworkshop, at which ‘The BA Way’ andour key strategies and plans are discussedin detail. By the end of April 2005,10,500 employees had attended Owningour Future.#p#分頁標題#e#
For both our customers and ouremployees, safety and security are keyissues, and they remain a top priority withinour business. One of our five ‘BA Way’measures is the percentage of ourcustomers who feel safe with British
Airways. Our objective is to be totally safeand secure.
We pay regard also to the impact ouroperations have on the wider community.
A survey-based measure of communityrespect is therefore another of our key
‘BA Way’ metrics. We work to supportcommunities around our major bases –especially Heathrow – and globally, throughcommunity investment programme andour Change for Good partnership with
UNICEF.
This includes providing help in a crisiswhen it is desperately needed. The Asian
Tsunami, which struck on 26 December2004, had a devastating impact on life andproperty. British Airways made a one-offdonation of £1 million in cash and cargospace to support the relief effort andourcustomers and employees also respondedgenerously. £800,000 was donated by ourcustomers through Change for Good inJanuary 2005 alone.
We recognise that we will not win therespect of the wider community if we donot seriously address the environmentalimpacts of aviation. We have a longstandingprogramme of measures designedtoreduce our noise and emissions footprint atthe airports where we operate, focussingparticularly on our main Heathrow base.
We are also actively involved withinternational initiatives aimed to help theindustry manage its key environmentalissues.
On the issue of climate change, we haveplayed a leading role in encouraging theindustry and policy-makers to embrace anapproach which includes emissions trading.British Airways is currently the onlyairlinetrading emissions in the voluntary UnitedKingdom government scheme and wesupport the inclusion of aviation intoemissions trading within the EuropeanUnion. At the Aviation and Environmentsummit in Geneva in March 2005, I urgedthe global aviation industry to think aboutnew ways of working together to reduceour impact on climate change, or risk facingadditionaltaxation.Takinga responsible approach to social andenvironmental issues remains crucial to ourbusiness performance and its futuresuccess. This report reviews our
performance and progress over the lastyear, but it also highlights major challengesahead. More details are available on ourwebsite at www.ba.com/responsibility.
We are committed to work to meet thesechallenges, to ensure that our business isboth profitable and sustainable over thelonger term.Robert Webb (Chairman)
General Counsel
Alan Buchanan
Company Secretary
Andrew Cahn
Director, Government and Industry Affairs
Garry Copeland
General Manager, Engineering Services
Nigel Dowdall
Director, British Airways Health Services
Andrew Grainger
Head of Property
Silla Maizey
Procurement Director
Tanya Phillips
Head of Customer Brand and Insight#p#分頁標題#e#
Kim Pettigrew
Head of Resourcing Systems and Services
Andrew Sentance
Chief Economist and Head of
Environmental Affairs
Tim Steeds
Head of Quality and Regulation,
Flight Operations
Geoff Want
Director, Safety, Security and Risk
Management
Mark Goyder (independent adviser)
Director, Tomorrow’s Company
Felicity Hartnett (CRB Secretary)
Corporate Responsibility Manager
Other contributors to the report include:
Paul Alexander (Procurement), David
Anderson (Health and Safety), Mary Barry
(Community Relations), Sunil Chadha
(Procurement), Jarita Christie (Terminal 5),
Alison Dalton (Diversity), Cathy DuBois
(Marketing), Laura Goodes
(Communications), Julia Harrison (Legal),
Andy Kershaw (Environment), David
Lebrecht (People), Ron Lindsay (Security)
Gary Meades (Environment), Kevin Morris
(Environment), Peter Patterson
(Economics), Kirsty Walker (Health
Services), Janet Windeatt (Training)
The report has been prepared under the direction of our internal Corporate Responsibility Board:British Airways’ airline network is centred on
the United Kingdom, where over 85 per centof our workforce is based. Our airline
operations comprise mainline passenger andcargo services operated from the Londonairports and services operated by our
regional subsidiary, British AirwaysCitiExpress. The British Airways Group alsoincludes a number of smaller subsidiariesengaged in aviation-related activities.1Our airline network generates economicvalue by meeting the demand for businessand leisure travel. We provide vital arteriesfor trade and investment, as well as leisuretravel opportunities for individuals andfamilies. In 2004/05, British Airways earnedover £7.8 billion in revenue, 3.3 per cent upon the previous year. Eighty three per cent ofthis revenue was generated from passengertraffic, 6 per cent from cargo and 11 per centfrom other activities (including fuelsurcharges). We carried over 35 millionpassengers and nearly 900,000 tonnes ofcargo to destinations in Europe, theAmericas and throughout the world.At the end of March 2005, we had 290aircraft in service, compared to 291 inMarch 2004. We have a relatively youngaircraft fleet, which brings environmental andefficiency benefits. The average age of ouraircraft fleet is 8.5 years, compared with aglobal average of about 11 years.
British Airways aims to manage its businessresponsibly. One of our key responsibilitiesis to our shareholders – ensuring that wegenerate a sustainable return on the capitalemployed in our business and can invest forfuture growth. We have set a target of a 10per cent operating margin to ensure anadequate financial return and continue tomake progress towards this goal. We alsohave responsibilities to other stakeholders –our employees, our customers and thecommunities affected by our operations.Airlines generate major social and economic#p#分頁標題#e#
benefits but also have significant impacts onthe environment and on communitiesaround airports. This report sets out the
steps we are taking to address these issues.We recognise that major challenges remain,
but key areas of progress include:
• A further step towards our operatingmargin target, with a 1.5 percentage pointincrease to 6.9 per cent;
• The roll-out of our employee engagementprogramme, with 10,500 employeesattending an Owning our Future workshopby the end of April 2005;
• Awarded the Gold Standard in the annual‘Race for Opportunity’ benchmarking,the first time we have achieved this levelof achievement;
• Continuing to maintain the higheststandards of safety and security for ourcustomers and employees, and a record ofzero fatalities in work-related health andsafety incidents;
• Hitting our £20 million donations target onthe tenth anniversary of Change for Good;
• A 3.9 per cent improvement in fuelefficiency, bringing the improvement since1990 to 27.4 per cent – more than 90 percent towards our 1990-2010 efficiency target;
• Joining the BAA Clean Vehicles Programmeat London Heathrow, and achieving a silverstandard for the performance of our fleet ofground vehicles;
• Launch of the British Airways wasteinitiative, targeting two per cent per annumwaste reduction per passenger and anincrease in our recycling/recovery rate to40 per cent;
• A further reduction in the global noiseimpact of our aircraft fleet, coupled with agood track record of operationalperformance to reduce noise;
• Continued successful participation in theUnited Kingdom Emissions TradingScheme and encouraging progress towardsbringing aviation within emissions tradingwithin the European Union.
Building a sustainable business
In 2004/05 we made further progress towards financial sustainability,by increasing our operating profit margin to 6.9 per cent. A 10 per centoperating margin remains our financial target. However, we will onlyachieve and sustain this if we can work successfully in partnership with allour key stakeholders.
Overview
http://www.mythingswp7.com/dissertation_writing/Ecommerce/British Airways key group statisticsMeasure 2004/05 2003/04 Change (%)
Turnover (£m) 7, 813 7,560 +3.3Operating profit (£m) 540 405 +33.3
Operating margin (%) 6.9 5.4 +1.5 ptsManpower (MPE) 47,472 49,072 -3.3
Passengers (m) 35.7 36.1 -1.1
Cargo (000 tonnes) 877 796 +10.2
Available Tonne Km (m) 22,565 21,859 +3.2
Revenue Tonne Km (m) 15,731 14,771 +6.5
Revenue Passenger Km (m) 107,892 103,092 +4.7
Passenger Load Factor 74.8 73.0 +1.8
British Airways is one of the world’s leading airlines. Our network provides
passenger and freight services to 149 destinations in 72 countries around
the world, and we are part of the oneworld alliance which serves 558#p#分頁標題#e#
destinations in 130 countries.
Market background
Global air traffic rebounded strongly in
2004, though air fares have remained under
strong downward pressure from vigorous
competition. Figures from the International
Civil Aviation Organisation (ICAO) show
that international scheduled air travel rose
by more than 15 per cent in 2004, the
fastest growth in any calendar year for more
than 25 years. This was the first year to
see traffic volumes surpass the level of
the previous peak year in 2000. Freight
traffic also recorded a double-digit increase
in 2004.
This rebound in air travel in 2004 was
founded on a year of strong global
economic growth. Passenger traffic growth
in the Middle East and Asia was also
boosted by comparison with a weak
performance in 2003 as a result of the war
in Iraq and the Severe Acute Respiratory
Syndrome (SARS) epidemic in the Far East.
Air travel has continued to grow at a more
moderate – but still healthy – pace in the
first few months of 2005.
The recovery in air traffic has beenaccompanied by stiff competition in allmarkets, maintaining the strong downwardpressure on yields. Meanwhile rising fuelcosts have disrupted the normal cyclicalrecovery in airline profitability, despitesubstantial reductions in non-fuel costs.
According to the International Air Transport
Association (IATA), the airline industry’sfuel bill in 2005 is expected to be nearly$40 billion more than in 2003. As a result,it expects its member airlines to makelosses of $6 billion in 2005, on top ofcumulative losses of $36 billion between
2001 and 2004.
British Airways’ performance in
2004/05
Despite modest capacity growth, British
Airways’ passenger traffic volumes (RPK’s)rose by nearly five per cent in 2004/05 as awhole, resulting in a 1.8 percentage pointrise in passenger seat factor to 74.8 percent. However, even after two years ofgrowth, British Airways’ traffic remainswell below its level four years earlier.This reflects the strategic downsizing of theairline between 1998 and 2002, which leftcapacity in 2004/05 still more than 15 percent lower than in 2000/01.Operating revenues rose more than threeper cent to £7.8 billion in 2004/05, but
strong competitive pressures causedaverage passenger yields to fall 4.4 per cent
(before the impact of fuel surcharges). ForBritish Airways, 2004/05 was the first yearof revenue growth following three years ofdeclining turnover, though total operatingrevenue remains nearly £1.5 billion lower
than in 2000/01.
Along with other airlines, British Airwayshas had to battle against stiff costheadwinds. Fuel costs have risen by a third(nearly £300 million) in the last two yearsto £1.1 billion, up from less than 11.5 percent of total operating expenditure in2002/03 to 15.5 per cent in 2004/05.Employee costs rose by 4.3 per cent to £2.3billion in 2004/05 as pension and wageincreases were only partially offset bymanpower reductions and other efficiencies.#p#分頁標題#e#
Due to a successful restructuring
programme, British Airways has made
substantial reductions in costs during the
period since 2000. The good progress
continued last year, when non-fuel unit
costs were cut by a further 4.5 per cent. As
a result, the airline’s profitability improved
again in 2004/05. The operating margin
(operating profit as a percentage of
revenues) rose to 6.9 per cent in 2004/05,
up from 5.4 per cent in 2003/04 and 3.8
per cent in 2002/03. We are making good
progress towards our target of a 10 per cent
operating margin, which is necessary to
deliver an adequate return to shareholders
and to finance new investment.
Business Plan priorities
The airline market in the United Kingdom
remains fiercely competitive. No frills
carriers continue to consolidate their
presence in European markets, and now
account for more than a third of all
shorthaul flights from London’s airports. As
a result, British Airways has seen its share
of passengers in the United Kingdom
shorthaul market fall from more than 30
per cent in 1998 to about 20 per cent in
2004. Even among business travellers,
corporate cost consciousness has allowed
no frills airlines to carry an increasing share
of the market, and the proportion of
business travellers flying in the premium
cabins of the network carriers, such as
British Airways’ Club Europe, has continued
to decline.
Longhaul services also face vigorous
competition. As the market recovers,
competitor airlines are beginning to order
new aircraft and start new intercontinental
services. In particular, Middle East carriers
are undertaking rapid expansion of their
hubs. Ailing American carriers are able to
offload costs under the protection of the
United States Chapter 11 bankruptcy laws.
* 28 Embraer RJ145, 16 Avro RJ100 and five British Aerospace 146
Aircraft Fleet (at 31 March 2005)
Aircraft type Number Average age (years)
Boeing 747 57 10.8
Boeing 777 43 6.3
Boeing 767 21 12.1
Boeing 757 13 10.5
Boeing 737 33 13.1
Airbus A321 6 0.5
Airbus A320 26 7.7
Airbus A319 33 4.4
Regional Jets* 49 6.6
deHaviland Canada DHC-8 9 8.4
Group Total 290 8.5
Revenues by region of sale 2004/05
18%
15%
50%
10%
United Kingdom
Continental Europe
The Americas
Africa, Middle East, Indian sub-continent
Far East and Australasia
7%
1 The data in this report will normally cover British Airways
Group or British Airways airline operations, and does not
cover franchises and alliance partners. Occasionally, data
relates solely to United Kingdom operations or to London
Heathrow. This is made clear where it is the case.#p#分頁標題#e#
Survey of stakeholder views
This research showed a generally high level
of regard for British Airways’ social and
environmental policies and performance,
but also a “communications gap”, in that
many stakeholders were unaware of our
detailed action plans. There was also
concern among community groups around
Heathrow that British Airways did not have
enough concrete plans to address their
concerns.
Our approach to future reporting will aim
to address these concerns. In particular, we
plan to use the internet more effectively to
provide a more diverse range of information
on our social and environmental
performance. Our printed report will
become a summary which points people
towards this wider array of information.
Our 2004/05 report will be a step in this
direction, with a more comprehensive and
detailed web report to accompany the
printed version, please go to
www.ba.com/responsibility.
Responsible procurement
The majority of British Airways’ expenditure
reflects the costs we incur in paying our
suppliers. So our approach to responsible
management does not end with our own
employees and operations. We need to
ensure that our suppliers are also pursuing
responsible business practices, and that we
are treating them fairly.
We are beginning to focus on this issue,
but recognise that there is more we can do.
The first step has been to improve
communication. The ‘Supplier Gateway’
is a portal, which provides access to both
general and specific information. The
gateway is a repository of information,
which is shared by both suppliers and
British Airways buyers. Information
available on the supplier gateway includes
corporate standards, policies and guidance
notes for suppliers – and this provides an
opportunity to communicate the social and
environmental policies we expect our
suppliers to follow.
All sourcing activity is required to evaluate
a total cost of ownership and a risk
assessment of goods/services being
purchased. This ensures that longer-term
costs (e.g. environmental liabilities) are not
neglected in the procurement assessment.
We continue to ensure that all new
contracts and those under renewal reflect
our Responsible Procurement standards.
Any issues are discussed at the
Procurement Compliance Steering Group.
This is a group of specialists, key account
managers and members of the procurement
team who have a responsibility to mitigate
environmental and social impacts. This year
we distributed an updated “Supplier Guide”
booklet to further support the needs of our
suppliers. In 2005/06 we are planning a
package of presentations and#p#分頁標題#e#
communications to our buyers to ensure
that they are familiar with our priorities,
objectives and targets.
Payment performance
We value our suppliers’ ability in providing
goods and services to our requirements
therefore we strive to fulfil our commitment
to pay on time. British Airways is a
signatory to the Confederation of British
Industry (CBI) code of practice on supplier
payment and is committed to the payment
of its suppliers to agreed terms. The
number of days’ purchases in creditors as at
31 March 2005 in accordance with the
provisions of the Companies Act (1985)
was 55 days. This compares with a figure of
49 days for 2003/04 and an average of 52
days for the last five years.
We regularly monitor our payment
performance of all purchansing contracts
(excluding purchasing from overseas
stations), which was at 67% in 2004 (70%
in 2003). Initiatives in development to
reach our target of 90% include:
• restructured organisation, where we have
merged Accounts Payable with
Procurement team to have end to end
process control in one place.
• working with areas of the business where
new systems have been implemented to
remove blockages and recover backlogs.
• restructured team with new/simpler
processes and clear focus on output
measures.
• progressive migration to order based
processes.
Despite the challenging market conditions,
British Airways’ total revenue is expected to
improve by four to five per cent in 2005/06.
But there are also major cost headwinds.
British Airways’ fuel bill is expected to rise
by a further £400 million in the financial
year 2005/06, while the pension fund will
continue to require large company
contributions for the foreseeable future.
British Airways’ business plan for the two
years ending in March 2007 identifies three
priority areas. The first is ‘Fit for 5’ – being
ready to move to Terminal 5. This presents
an opportunity to secure a better future for
the airline – offering the prospect of a
superior customer experience and enabling
significant change to improve the efficiency
of our operations.
Second, we are making targeted investment
in products and in training for employees.
This includes investment in the air and on
the ground, where we are applying new
technology (such as on-line check-in) to
ease the travel experience and speed
passengers through the airport. It also
includes a renewed focus on training and
employee engagement.
Third, we need to continue to reduce our
cost base to ensure it is competitive in the
global airline market.
Longer-term growth prospects#p#分頁標題#e#
Looking beyond Terminal 5, British Airways
is working to support the plans for future
development which have been supported by
the 2003 White Paper, “The Future of Air
Transport”. This recommended the building
of a third runway at Heathrow, and
consideration of better use of the existing
runways at Heathrow by ‘mixed mode
operations’. Mixed mode – enabling airlines
to use each runway for both take off and
landing – would add to runway capacity
over the longer term and in the short term
it could also reduce congestion and delays.
The government is working with key
stakeholders to establish the environmental
implications of this expansion, through its
Project for the Sustainable Development of
Heathrow. British Airways is actively
contributing to this work, particularly
through the monitoring and modelling of
the impact of aircraft on local air quality
(see page 14 for more details).
Working with stakeholders –
‘The BA Way’
In developing our business plans over the
next couple of years, and over the longer
term, it is essential for us to work in
partnership with our stakeholders to deliver
sustainable business performance.
We need to work closely with our
employees and suppliers as we seek to
contain costs, deliver improved service
standards and remain competitive in the
global marketplace. We need to work
closely with our customers to identify the
product investment and service quality
improvements which will generate value in
the years ahead. And we need to work
closely with local communities and
government to ensure that the continued
operation and expansion of our business is
socially and environmentally sustainable.
‘The BA Way’, which was launched within
British Airways just over a year ago,
embodies this stakeholder-driven approach.
It contains three main elements – our
formula for business success, our values
and our business goals.
This year’s British Airways Corporate
Responsibility Report aims to reflect ‘The
BA Way’ framework, particularly focussing
on our business goals. In addition to our
financial target, ‘The BA Way’ includes four
other business goals: employee motivation;
safety and security; customer advocacy; and
community respect. These goals form the
basis of the remaining sections of this report.
Corporate Responsibility Board
In 2003, British Airways established an
internal Corporate Responsibility Board
(CRB) to improve our co-ordination and
management of social and environmental
issues. The objectives of the CRB are to
strengthen British Airways’ corporate#p#分頁標題#e#
reputation, to act as a ‘corporate conscience’
and to be a catalyst for action in terms of its
broader responsibilities to society.
The CRB met four times in 2004/05, under
the chairmanship of our general counsel, a
member of the British Airways Leadership
Team. It includes senior managers with
responsibility for environment, health,
safety and security, corporate governance,
risk management, procurement, diversity,
community relations and customer issues
(see inside front cover). It also includes an
independent member Mark Goyder,
Director of Tomorrow’s Company – who
has been a valuable addition to the team.
The issues considered by the CRB in
2004/05 include diversity policy,
environmental policy and priorities,
HIV/Aids, ethical cargo, community
investment strategy and the company travel
plan. Now it has been operating for two
years, the Board has also established itself
more clearly as the corporate forum for
social and environmental issues and is now
acting as a clearer focus for corporate
decision-taking.
In early 2005, we have undertaken a
number of “challenge sessions” focussing
on three key issues for British Airways – our
community impact around Heathrow,
climate change, and diversity policy.
External speakers were invited to the Board
to present an objective and challenging
assessment of corporate policies and
practice in these three areas. The CRB will
be developing a programme of action in
response to these three sessions and we will
report more fully next year on how we plan
to address the challenges put to us by
external stakeholders.
4 5
The BA Way
= Service that matters for people who value how they fly
The best
UK-based
network
Understand
our customers
better than
competitors
A powerful
brand that
people know
and trust
A competitive
cost base
Work together
as one team X X X X
Our values
Our goals
Understanding Focused Cost-conscious Supportive Trustworthy
Goal Measure
Profitability Operating margin
Customer advocacy Customers who recommend British Airways
Safety and security Customers who feel safe with British Airways
Respected company Community stakeholders who respect British Airways
Employee motivation Employees who feel motivated to deliver our goals
Deployment of revenues 2004/05
10%
33%
14%
Supplier (exc fuel & charges)
Employee costs
Capital costs
Fuel
User charges
Operating profit (pre-tax)
7%
7%
29%
In August 2004, we conducted a
quantitative piece of research with 100
community stakeholders to establish their#p#分頁標題#e#
view of British Airways’ policy, practice
and reporting on social and
environmental issues. The research was
conducted in the form of a questionnaire
and focus group discussions including:
• Environment and sustainability groups,
• Local authorities and community groups
around Heathrow,
• Groups representing minority interests,
• London and South East economic
development organisations.
• Politics/government,
• Policy and non-profit organisations,
• The media,
6 7
Our ‘BA Way’ goal is that employees are motivated to deliver our business
goals. That can only be achieved if we work together as one team – to
provide a service that matters for people who value how they fly.
Working together as one team
Our employees are critical to the success of
our company. In 2004/05, the average
number of employees in the Group, in
manpower equivalents (MPE), fell by 3.3
per cent to 47,472 and productivity (ATKs
per MPE) improved by 6.7 per cent. This
improvement in productivity reflects a great
deal of effort which our employees have put
into promoting the success of
our business.
The airline has recently been through the
most difficult years of its history. We have
survived and are now beginning to build our
profits back to a sustainable level for the
longer term. The work effort of our
employees and the service they have
provided to customers have been critical
to this achievement. These efforts will be
rewarded this year as all our people share
in the £45 million bonus generated by our
employee incentive schemes.
Employee involvement
Qualitative research by an independent
research company was conducted between
December 2003 and January 2004. The
results gave us a clear steer on the areas
that employees wanted the business to
focus on. This led to the strategies that are
being delivered as part of the employee
involvement programme, including ‘The BA
Way’, Owning our Future and the further
development of management and
leadership capabilities.
The research also prompted a new
employee research programme called the
Employee Feedback Programme (EFP),
which began in November 2004. A sample
survey, conducted online was sent to 6000
randomly selected employees. The survey
was managed, designed and hosted by
MORI to guarantee respondent anonymity.
From this survey, we know that currently 58
per cent of employees feel motivated to
help British Airways achieve its business
goals. We have used this result as a baseline
and are currently developing our target for
employee motivation. Future surveys will
provide quantitative results allowing us to#p#分頁標題#e#
track how our employees are feeling over
time and to see whether the employee
involvement programme is focussed in the
right areas to meet employees’ needs.
Owning our future
An Owning our Future workshop has been
created, run by British Airways people for
British Airways people, which everyone in
the airline will attend and at which business
challenges, ‘The BA Way’ and our key
strategies and plans are discussed in detail.
To date 10,500 employees have attended
Owning our Future. As a key part of British
Airways comprehensive internal
communications, an emphasis is being
placed on face to face communication and
investment is being made in training for the
people managers and supervisors who
deliver this day to day.
Regular feedback is solicited from British
Airways employees through a formal
employee feedback programme and the
output and actions that result from this
shape and drive the direction and emphasis
of the work on employee involvement.
The Industrial Relations Change
programme
The airline also seeks to deliver a
permanent step change in employee and
trade union involvement and is therefore
closely aligning the employee involvement
objectives, strategies and plans with those
of the Industrial Relations Change
Programme.
British Airways continues to recognise and
value the importance of maintaining good
industrial relations with the four recognised
trade unions, which are AMICUS, BALPA,
GMB and the TGWU. Around 90 per cent
of all United Kingdom employees are
covered by collective agreements.
The relationships we have with our trade
unions are developed via a network of
negotiating and consultative opportunities.
For example, the British Airways Trade
Union Council (BATUC) provides an
opportunity for our most senior trade union
representatives to meet regularly with the
chief executive and other directors to share,
involve and consult on a broad range of
business issues.
The industrial relations department has
continued to work in conjunction with line
managers from across the business during
the period on improving employee relations
and industrial relationships through the
Industrial Relations Change Programme.
This programme is designed to strengthen
links between the airline and the unions and
to develop better ways of working together.
This initiative continues to be endorsed by
the chief executive and trade unions and via
the ongoing process of joint engagement
and establishing joint action teams. We will
be rolling out industrial relations training for
our people managers and employee
representatives in 2005.
Agreement was reached with our trade#p#分頁標題#e#
unions on pay covering a three-year period
2004 to 2006 inclusive. This meant that
our bargaining agenda could concentrate on
issues such as preparing for our move to
Terminal 5 in 2008. The importance of
Terminal 5 and what it means to the future
of British Airways cannot be underestimated.
The new terminal and the benefits it brings
provide an opportunity to secure the
airline’s future. 2008 is just the moving
date. We need to be ready by the end of
2006, so that the final year can be used to
carry out testing and prepare everyone for
the big move.
We continue to consult with our trade
unions on the introduction of employment
policy to comply with changing employment
legislation and the requirements of our
business. We reached a collective agreement
with our trade unions last year on the
introduction of a new absence policy. The
new policy is focussed on reducing the
average absence rate down to 10 days per
annum from the current average of 17 days
per annum through a robust and fair
management of absence which came in to
effect in October 2004. Early indications
are very positive and we will be reporting
our progress in more detail in our
2005/06 report.
A Drugs and Alcohol policy enabling testing
of United Kingdom based employees was
also successfully introduced for our
employees which has been implemented
with the agreement of our Trade Unions.
Training
The training department has supported the
employee involvement programme by
coordinating and facilitating the Owning
our Future workshops. The workshop
objectives are to a) increase understanding
of the ‘The BA Way’, strategy and future
direction b) improve understanding of other
departments challenges & perspectives c)
encourage employees to want to be part of
and contribute to British Airways future d)
provide a forum for employees where they
will consider that their ideas are listened to,
understand where their job fits in and feel
accountable.
In addition a range of management training
was provided during the year. One example
of this was the training given to all people
managers on the absence management
policy, with 2,600 managers attending the
workshops in 2004/05.
This year the training team reached their
target to deliver 33 per cent of all training
on-line. This has given employees more
choice and reduced costs, saving the airline
over £9 million. The next goal is to increase
the number of places and ways employees
can access online courses, in particular
looking at providing access beyond the
workplace. Online enables more employees
to access developmental training than a#p#分頁標題#e#
wholly classroom-based programme. We
expect the proportion of online learning to
remain broadly at the same level as we
continue a blend of delivery options to
achieve optimal effectiveness, with
face-to-face training remaining the prime
delivery method.
By February 2008 over 5,000 employees
will have received training in preparation
for the opening of Terminal 5. The training
department is currently looking at the
most effective and efficient way to train
and educate employees to work in the
new terminal.
Diversity and inclusion
A key part of ‘The BA Way’ is our
commitment to diversity and inclusion that
is an integral part of the culture of our
company. We have an open and honest
working environment, which encourages
people to reach their full potential and
which recognises everyone’s contribution to
the business. Promoting diversity is a
continuing priority for our business.
We also continue to benchmark with other
key lobby groups and companies. Our
score in the annual ‘Race for Opportunity’
benchmarking announced in May 2005
improved significantly from 69 per cent last
year to 84 per cent this year. This is our first
Gold Standard and reflects our continued
work on racial equality across the company.
One of the key initiatives this year was to re
communicate our ‘Dignity at Work –
Harassment and Bullying’ policy. We
wanted employees to understand the impact
of their behaviour on other people and be
tolerant of people who have different
values, religions or beliefs to their own.
To see the booklet we produced please go
to www.ba.com/responsibility.
One of our biggest forthcoming challenges
will be to implement the forthcoming age
legislation and ensure that the impact for
both the business and our employees is clear.
As well as a steering group chaired by our
director for people we have three working
groups who are considering the impact for
different parts of the business. Once the
final legislation is defined we will embark on
a major communication and engagement
campaign to ensure that our employees
understand all the potential changes.
Pensions
The company has three main pension
schemes. Two of these, Airways Pension
Scheme (APS) and New Airways Pension
Scheme (NAPS), are defined benefit
schemes and are closed to new members.
The new scheme, the British Airways
Retirement Plan (BARP) is a defined
contribution scheme. In light of the
December 2003 consultation paper
“Simplifying the taxation of pensions: the
Government’s Proposals”, a review of the
Group’s United Kingdom pension
arrangements is underway. Exploratory talks#p#分頁標題#e#
are taking place with trade unions and
managers to find solutions to address
pension funding. British Airways remains
committed to its existing pension schemes
but the funding increases present a
substantial additional cost burden. Ways to
reduce the cost burden are being explored.
Employment legislation
During the 2004/05 financial year, 40 new
claims were filed against British Airways
group companies, from a total workforce
averaging 47,472. Only five of these 40
claims are outstanding. Two of these relate
to pension scheme arrangements that
applied in Dan Air Limited and the other
three have been brought under
miscellaneous jurisdictions. Of the other 35
claims filed during this financial year, 25
have been withdrawn, struck out by the
Tribunals for lack of merit or jurisdiction, or
successfully defended by British Airways at
a hearing. The Company has settled just
eight cases: six were settled for no financial
payment or an amount under £1,000 and
two for between £1,000 and £10,000.
We continue to run employee groups on race and disability to listen and consider the
issues and priorities from different groups of employees. This helped us to revise our
priorities and to introduce changes in response to the Disability Discrimination Act.
We have also introduced a new e-learning training module for our front line employees
and managers called ‘Disability Confident’ which enables employees to deal with attitudes
and behaviours towards disabled customers and employees to help make them more
confident in understanding the needs of disabled people.
We joined the ‘Stonewall Diversity
Champions’ programme in January 2005.
This is the United Kingdom’s leading good
practice forum on sexual orientation
issues in the workplace and underlines
our commitment to supporting our gay
and lesbian members of our workforce.
We featured in the first top 100 corporate
equality index run by Stonewall.
In order to create a dialogue with
employees about the business challenges
and opportunities, a full programme of
communications, involvement and
feedback activities has been
implemented over the last two years.
A strong focus has been placed on
strategies designed to ensure our people
have a shared understanding of the
challenges and opportunities, and how
their role contributes.
Employees take part in an Owning our Future workshop
9
Valuing our customers
British Airways carried over 35 million airline customers in 2004/05. Our
objective is to delight our customers so that they want to fly with us again
and recommend us to their friends. Our goal is therefore to increase the
number of customers who recommend British Airways.#p#分頁標題#e#
8
The safety and security of our customers and employees in the air and on
the ground is paramount to British Airways and at the heart of our business.
We work continuously to ensure that our customers are totally safe and secure
with British Airways – and our record has been consistent with that objective.
Ensuring safety and security
Safety and security
There is a strong culture of safety and
security across British Airways, which is
supported by well-defined reporting and
management processes. This year British
Airways has continued to invest in and
develop its security arrangements. The
airline now spends in excess of £120 million
on security each year and frequently exceeds
the security requirements of both the United
Kingdom government and state legislation
overseas.
British Airways believes that excellent
ground security is at the heart of achieving
comprehensive security in the air and works
very closely with all relevant airport
authorities, government regulators and
security and law enforcement agencies
around the world. Our experienced team of
security experts travels the world auditing
every airport to which the airline flies. If any
concerns emerge during the audit, British
Airways implements additional security
measures to ensure that security levels in
place are commensurate with our own
high standards.
We have continued to invest in training on
safety and security for our employees.
Recent examples include Owning our Safety
workshops for all flight crew following the
corporate Owning our Future programme,
an enhanced operational integrity
programme for Gatwick based Boeing 737
crews and the introduction of operational
safety notices to highlight safety issues and
‘lessons learnt’ from incidents across the
industry.
Employee health and safety
The move to Terminal 5 is a significant
opportunity for British Airways to eliminate
some of the existing health and safety risks
that are associated with operating in
Heathrow’s extremely busy and congested
airport. We have introduced a project known
as ‘Fit for 5’ which focusses on a number of
key areas that will benefit from the new
working environment, including safety.
During the transition phase it is important
that we maintain a focus on our existing
operations. We have therefore maintained
the same key performance indicators for the
last 12 months.
The total number of safety related incidents
that were reported in the 12-month period
has declined (see table below) though the
number of reported serious injuries has
increased. This may however, reflect
improved reporting. A serious injury is#p#分頁標題#e#
one that results in absence from work.
With the introduction of a more robust
absence management policy we are now
better able to identify incidents which fall
into this category.
Improving industry safety
In April 2004, a British Airways cabin crew
employee fell from the doorway of a 737
aircraft that was parked on stand at Paris
Charles de Gaulle airport. The crew member
suffered three fractured vertebrae as a result
of the incident. This was followed by three
reports of doors being operated in a manner
that could have resulted in similar incidents.
A thorough investigation was carried out
which prompted some minor changes to the
British Airways operating procedures.
Through the course of the last 12 months a
number of other airlines have had crew
injured when they have fallen out of aircraft
doors and in one case this led to a fatality.
British Airways is committed to working with
the industry to improve the safety of
employees and contractors who are involved
in the operation of airport doors. We have
supported the establishment of a working
group to explore the possibility of agreeing a
standard method for door opening that will
be adopted by all airlines.
Good customer service remains our raison
d'être on the ground and in the air. This is
reflected in the 50 awards British Airways
received last year.
Understanding our customers better than
competitors is a critical element of our
British Airways success formula. We receive
feedback in many ways, spontaneously
through customer compliments and
complaints and through periodic research.
The information is gathered via customer
self-completion on board, face-to-face
group discussions, telephone surveys or on
line. This research covers perceptions of
British Airways in the market place,
reactions to product development and
customer satisfaction. This data is regularly
reviewed across the company to ensure
appropriate actions take place either with
current delivery or for future product and
service investment.
Customer satisfaction
performance
The ultimate customer accolade is a word
of mouth recommendation. We measure
customers’ likelihood to recommend British
Airways through our Global Performance
Monitor (GPM), an onboard survey of
approximately 50,000 customers each
month followed up with a post-arrival
telephone sample survey. Recommendation
is driven by whether a customer is satisfied
with their experience with British Airways
and whether they think it is good value
for money.
On average 61 per cent of our customers
were likely to recommend British Airways in
2004/05 – in line with 2003/04 – and we#p#分頁標題#e#
are working hard to reach our target of 65
per cent.
Continued and sustained progress in all
areas of diversity will help to ensure the
British Airways workforce reflects our
customer base. We reviewed the issues that
our disabled customers faced whilst
travelling with us in 2004 and through
listening, we have learnt more about what
we can do to ensure that their journey is
made easier with British Airways.
For more information on our overall
performance in this area please see the key
performance indicators on page 18 and go
to www.ba.com/responsibility.
Customer health and wellbeing
British Airways puts the highest priority on
the health and wellbeing of its customers,
while they are in our care. We are actively
involved in the investigation and
consideration of aviation health issues,
and have been at the forefront of aviation
health research.
Deep Vein Thrombosis (DVT)
British Airways provides its customers with
up-to-date information on concerns about
air travel and health, including the risk of
DVT and the measures that can be taken to
reduce the risk, through its ‘Well being in
the air’ programme. This includes
comprehensive pre-flight information for
passengers and their medical advisers on
the website and in information leaflets, as
well as the onboard announcements, video
and in-flight magazine. The results of the
World Health Organisation research into
travel-related DVT, are expected during
2005, and will enable us to update our
advice based on the most comprehensive
evidence available.
Threat of pandemic flu
Experts in communicable diseases remain
concerned about the persistence of avian
(‘bird’) flu in Asia and the threat that
changes in the virus could lead to a flu
pandemic. British Airways has established a
contingency planning group to ensure we
can deal with a possible pandemic. The
group is working with the United Kingdom
government and public health authorities,
as well as other airlines, airport authorities
and non-government organisations, to
ensure a co-ordinated response. The
International Air Transport Association
(IATA) is working closely with World Health
Organisation (WHO) communicable
diseases experts to address the issues
affecting international air travel should a
pandemic occur.
Onboard food safety
In March 2005 British Airways received the
Gold Mercury Award (sponsored by the
International Flight Catering Association
and The International Inflight Service
Association) for high standards of airborne
food safety.
Onboard food temperature checks
developed by British Airways Health
Services Food Safety team in conjunction#p#分頁標題#e#
with two manufacturers make British
Airways the industry leader in onboard food
safety. ‘T Sticks’ and ‘Smart Labels’ are two
new unique tools. ‘T Sticks’ are disposable
thermometers that enable flight crew to see
when food is hot enough to serve and
‘Smart Labels’ are temperature sensitive
labels that monitor the safety of cold foods
throughout the flight and may be checked
at any time before the meal service. These
low cost innovations have enabled the
airline to extend its European return
catering network thus helping Inflight
Services to reduce costs.
For more information on the advice we give
and research on heath issues please go to
www.ba.com/health.
Minor* Serious* Major* Fatal*
2002/03 6,271 454 40 0
2003/04 5,677 405 22 0
2004/05 5,248 594 24 0
(*for definitions see page 20)
Key performance indicator
Zero fatalities to British Airways employees or
contractors
Zero convictions for health and safety offences
Zero enforcement notices (or overseas equivalent)
served by the Health and Safety Executive
Total number of days lost due to all causes of
injury to be reduced by 30 per cent by 2010
Total number of major injuries to be reduced by
10 per cent by 2010
2004/05 performance
There have been no fatal injuries involving British
Airways employees or contractors
British Airways has received no convictions or
prosecutions
No enforcement notices were served on British
Airways
Working days lost from work related injury and ill
health averaged 4,300 days per 100,000 employees in
2004/05
Since the introduction of the Revitalising Health and
Safety targets, British Airways has reduced the
number of Major injuries from 66 per year to 24.
We have exceeded the target that was set and we
continue with our drive to reduce the number of
Major injuries to zero.
Stress management
Stress is an important factor which may affect employee health, well-being and safety. British
Airways has a “Stress Management Policy”, led by the People Department and available to all
employees via the British Airways Intranet. A Corporate Stress Working Group, comprising
senior representatives from People Department, Health Services and Safety Services has
reviewed British Airways’ policies and procedures against the Health
& Safety Executive’s targets and standards for tackling work related stress. Examples of
current preventive strategies include management training, employee involvement
programmes and using absence management data to identify areas of possible concern.
For further information on key health and safety initiatives within British Airways please
go to www.ba.com/responsibility.#p#分頁標題#e#
Top 5 customer complaints 2004/05*
Percentage of total
Complaint 2003/04 2004/05
1. Mishandled baggage 20.0 22.0
2. Flight disruptions 14.0 18.0
3. Reservations 5.0 7.0
4. In-flight entertainment 10.0 6.0
5. Executive Club 8.0 5.0
* The categorisation of complaints has been updated
following the introduction of a new recording system that
includes complaints worldwide.
Number of safety incidents by
severity
Race for Life – British Airways employees
have been organising and taking part in
Race for Life for the past 12 years raising
money for Cancer Research United
Kingdom. To date, over £500,000 has
been raised. Last year Cancer Research
United Kingdom awarded British Airways
its “Outstanding commitment from a
company” award in 2004.
Change for Good – The British Airways
Change for Good programme in
partnership with UNICEF continues to
flourish, with the total amount raised
reaching the £20 million mark this year. In
2004/05 Change for Good raised £2.7
million through the donation of customers’
loose change onboard our flights and a
£500,000 corporate donation from British
Airways. In May, Her Majesty The Queen
launched the 10th anniversary year setting
the scene for a year of high profile activities.
We have more cabin crew involved in the
programme than ever, with over 1,700
signed up to be volunteer representatives
for Change for Good during their flights. In
October 2004, Change for Good hit the
high street for the first time in partnership
with Travelex and HSBC to collect old
Eurozone currencies that are no longer
valid. Customers were able to deposit the
unused currency at any United Kingdom
branch of HSBC until June 2005.
In July, Change for Good was awarded the
‘Most Effective Corporate Relationship’
award by the Institute of Fundraising and
the magazine Professional Fundraising.
Change for Good was praised for its
longevity, scale and the close involvement
of cabin crew.
During the year Change for Good funds have
been spent on a variety of projects such as
water and sanitation in Huambo, one of the
most war-affected provinces in Angola.
Funds have also gone to emergency relief
situations such as the devastation caused by
the hurricanes in the Caribbean, the conflict
in Sudan and the earthquake in Iran.
The Tsunami – in the early hours of 26
December 2004 South East Asia was
severely impacted by the tragic events of
the Asian Tsunami. Through the Change for
Good Programme, British Airways
customers raised over £800,000 in January,
all of which was given directly to projects to#p#分頁標題#e#
support the recovery of the affected areas.
In the same month our employees donated
£51,000 directly from their own pay and
British Airways gave a one off donation of
£1 million (£500,000 in cash and £500,000
in cargo). Through UNICEF, who worked
with governments, local communities and
other organisations, funds were used to
ensure that children were protected by
providing clean water and sanitation,
vaccinating against disease, providing
education and healthcare and protecting
children against exploitation.
Tourism for Tomorrow – The Tourism for
Tomorrow awards recognise and promote
the world’s leading examples of best
practice in responsible tourism
development. This year the World Travel
and Tourism Council ran and hosted the
awards inviting the winner to a ceremony in
April 2005 in New Delhi, India during the
5th Global Travel & Tourism Summit. There
were 86 applications from across the world
for the four award categories –
conservation, global tourism business,
investor in people and destination. British
Airways sponsored the destination award
and presented it to Jurassic Coast, United
Kingdom.
British Airways aims to be a good neighbour, working to support local
communities and respect the environment. Our ‘BA Way’ goal is to be
respected by the communities we serve. Effective programmes to support
local communities and improve our environmental performance are
essential to meet this goal.
Supporting communities
Our 2004 sample survey of 100 community
stakeholders from a variety of community,
government and environmental
backgrounds told us that 74 per cent of
them respect British Airways. We will
continue to work hard to meet our target of
80 per cent. This section describes how we
support the communities that we impact in
destinations that we serve, both in the
United Kingdom and overseas through our
community investment programme.
British Airways continues to be a member
of the both the London Benchmarking
Group (LBG) and Business in the
Community’s Percent Club. The LBG’s
benchmarking model is used to assess our
total contributions to the community.
Business in the Community reported our
total contribution for the year ending 31
March 2005 as £6 million (2004, £4
million). British Airways direct charitable
donations (cash donations to charity) for
the year to 31 March 2005 were £830,000
(of which £500,000 was a direct cash
donation to UNICEF for the Tsunami Relief
effort) (2004: £396,398).
Our community investment
programme
Last year’s review of the community
investment strategy has ensured that we#p#分頁標題#e#
have continued to focus our resources on
the British Airways Board approved
priorities of education and youth
development, supporting our employees,
sustainable tourism, environment and
heritage. This year we were able to support
over 130 community and conservation
programmes worldwide. Our most
significant donation this year was to the
Tsunami relief programme in January 2005.
For more information please see p11 of the
report and go to www.ba.com/responsibility.
Our emphasis in 2004/05 has been on
working more closely with our community
stakeholders at Heathrow. We have
consulted with and shared our community
strategy with our partners in the
surrounding boroughs of Heathrow. We are
now working on developing strategic
partnership programmes that we have run
that will enable us to assess the impact of
our investments within the Heathrow
community.
The Community Learning Centre – we
are soon to welcome our 30,000th child to
the Community Learning Centre at
Heathrow where we offer programmes for
local children, young people and adult
learners to support their education and skill
development needs. Examples of successful
partnership programmes that have we run
through the Community Learning Centre
this year are:
Language Awards – our language
programme continues to grow with a
further 1,047 students receiving awards this
year (4,012 in total). We have now trained
66 teachers to deliver the ‘British Airways
Flag Award’ that provides students with a
work related dimension to their language
learning at GCSE level.
British Airways Communities and
Conservation programme has this year
provided over 900 travel awards to a wide
range of charitable and not for profit
organisations that work in destinations that
we fly to.
British Airways Community Volunteering
Awards – we continue to support the
volunteering activities that our employees
engage in through these awards. This year
British Airways donated over £90,000 to a
range of charities supported by our
employees.
British Airways Giving Scheme saw 4,319
of our current and retired United Kingdom
employees donate £636,489 directly from
their payroll to their chosen charities.
How we invest in the communities
we serve
The euro traveller challenge –
developed in partnership with
PricewaterhouseCoopers (PwC) for Key
Stage Three pupils (12 to14 year olds).
The objective was to set a work related
business challenge for the students to
solve working alongside employee
volunteers from both companies. The
students from Hayes Manor School and
Mellow Lane School in Hillingdon visited#p#分頁標題#e#
PwC’s head office to present their
findings to employees from both
companies and to Stephen Twigg, then
Minister for London Schools. The
project has formed part of the London
Challenge Initiative receiving recognition
from the Department for Education and
Skills (DfES).
The British Airways Environmental
Awards for schools – British Airways
awarded £60,000 to 24 schools in the
three boroughs of Ealing, Hillingdon and
Hounslow to run an environmental
awards programme in partnership with
the local Education Business
Partnerships. The Awards will be
allocated to Year 10 pupils to carry out
environmental projects within their own
school or community covering issues
such as energy efficiency, recycling and
wildlife. The awards aim to increase
environmental awareness and local
action whilst providing educational
benefits to the participating pupils.
Project
Bangladesh
Angola
Nigeria
Emergencies
South East Asia
Sudan
Caribbean
Bangladesh
Description
Dhaka – Provide basic education to urban working children aged
10 to14 over five years.
Huambo – Water and Sanitation projects.
Abuja – Funding of two playgrounds at Kuje School.
Tsunami Emergency Relief.
Crisis in Darfur.
Emergency assistance after the hurricanes.
For victims of the floods.
Change for
Good funding
£500,000
£220,000
£5,600
£1,800,000
£75,000
£50,000
£75,000
British Airways investment of Change for Good funds in 2004/05
For more information on country projects supported by Change for Good please visit
www.ba.com/responsibility.
10
Employee time
Management costs
In kind
Cash Given:
Change for Good
Employee Donations
British Airways
corporate giving
Change for Good collection envelope
We would like to thank all our customers
and employees who kindly donated
through Change for Good and the
British Airways Giving Scheme.
Children in Tamil Nadu, India, play together (UNICEF)
11
15%
1% 4%
46%
21%
13%
13
Noise reduction
Noise is a major environmental and social
impact for the aviation industry. In a
number of surveys of residents living in the
vicinity of airports, noise continues to be
identified as the most important
environmental issue above both local air
quality and climate change.
British Airways continues to support the
application of International Civil Aviation
Organisation’s (ICAO) “Balanced
Approach” for noise mitigation. This
comprises four elements: noise at source,#p#分頁標題#e#
operational procedures, land use planning
measures, and operational restrictions.
British Airways' main contribution to noise
reduction is through our investment in
quieter aircraft and the development of
better operating procedures. We continue to
lobby for others to accept their full
responsibilities with regard to land use
planning and operational restrictions. In
particular, we welcome the review by the
Office of the Deputy Prime Minister
(ODPM), of Planning and Policy Guidance
note 24 (PPG24) that deals with noise and
planning conditions, and trust that the new
Strategy note (PPS 24) will contain adequate
safeguards against inappropriate noise
sensitive developments close to the airport.
Our operations (and noise impact) continue
to be centred on our main base at
Heathrow which together with Gatwick,
New York (JFK), and Manchester airports
accounts for over half of our total airport
noise impact.
Our noise performance
This year, we have again improved the noise
performance of our aircraft fleet. This is
demonstrated by the improvement in our
noise indicator, key performance indicators
(page 18), which shows which shows a
reduction in total noise relative to last year,
and also the average QC per movement
which is now below QC1.0.
One reason for this has been the
introduction of the Airbus A321 that is
known for its low noise impact. This aircraft
is a “stretch” version of the A320 and A319
aircraft that provides the backbone of the
British Airways short-haul fleet at Heathrow.
Operationally, we continue to maintain the
high performance levels attained in previous
years. In this respect, our performance in
keeping to the tracks specified by air traffic
control remains above 95 per cent on track
at Heathrow airport, and at Gatwick, where
the maximum track height is lower, 98.6
per cent were on track. At Manchester
airport, our performance rose to 95.2 per
cent, on track, and generated a
commendation from the airport operator.
At the same airport, our wholly owned
subsidiary, British Airways CitiExpress, won
an award for consistency of track-keeping
performance.
We continue to support the ‘Silent Aircraft
Initiative’ aiming to promote the benefits of
Continuous Descent Approaches ‘CDA’s)
approaches to the USA and other parts of
the world. This year, we have improved our
performance of Continuous Descent
Approaches CDA’s at airports where they
are allowed, recognising that Air Traffic
Control (ATC) also has a significant effect
on the achievability of these procedures. At
Heathrow 94 per cent of our arrivals
followed CDA approaches and 86 per cent#p#分頁標題#e#
at Gatwick also followed this procedure –
this remains around 10 per cent better than
the average performance at Heathrow and
Gatwick airports.
In order to refine these procedures further,
representatives from British Airways Flight
Operations and Environmental Affairs, have
been actively involved in the first review of
the Code of Practice on Arrivals Noise,
which has subsequently been presented to
ANMAC and a second issue of the “Code”
is now being developed. The Arrivals Code
of Practice can be found at www.caa.co.uk.
For departure noise, a similar Code of
Practice has been initiated along with BAA,
and two meetings have so far been held.
This will be much more complex than that
for arrivals, as there are numerous
interdependencies and trade-offs to identify,
for example with local air quality and
climate change emissions.
Night movements
The second stage of the government’s
consultation on night restrictions at the
London airports, due in summer 2004, was
delayed by legal proceedings, and has yet to
take place. The legal challenge centred on
the arrivals QC grouping of Rolls Royce
powered Boeing 747-400 aircraft of the
type operated by British Airways. It was
claimed that measurements showed that
these exceeded their QC ranking by a
significant amount, and should be
reclassified as QC 4 or QC 8. However, a
report to the court written by the CAA’s
Environmental Research and Consultancy
Department (ERCD), who conducted the
original analysis, confirmed that the 747-
400’s operated by British Airways fell
wholly within the QC 2 ranking where they
were originally placed.
British Airways will respond positively to
the second stage of the consultation,
pointing to the need to balance the
requirements of the aviation industry with
those of the local communities and this will
be discussed in next year’s report.
Noise research and next steps
British Airways continues to promote the
use of new technology to help improve the
noise climate around airports. At Heathrow
we have trialled new procedures aimed at
producing better track-keeping along the
problematic 09R Compton route. This route
provides a particular challenge as it entails a
sharp right turn close to the runway, and
does not conform to international
requirements for departure route design.
Feedback on a workable design for a new
procedure has been sent to the CAA
Directorate of Airspace Policy (DAP) and we
are now awaiting their comments before we
can put this into full time operation.
The initial trial of Precision Area Navigation
(P-RNAV) approaches at Heathrow has
12#p#分頁標題#e#
Aviation has significant environmental impacts on local communities
around airports and on the global climate. British Airways aims to limit and
reduce its environmental impact where possible, and is active within the
airline community to encourage good practice and progressive policies.
Respecting the environment
Our approach
Within this framework, the responsibility for
environmental management within British
Airways rests with individual departments
and subsidiaries. Our corporate
Environmental Management System
provides a framework for co-ordinating this
activity and ensuring that appropriate
arrangements are in place to manage our
main environmental impacts.
Our key impacts and priority areas continue
to be noise, local air quality, climate change
and waste and resource use. This year we
have reviewed the elements of our
Environmental Management System and
are in the process of rewriting our
Environmental Manual and procedures to
reflect a revised corporate quality
framework.
Environmental compliance issues are
managed at departmental level through
compliance boards. Corporate issues are
reviewed through the Environmental
Compliance and Management Group. This
group meets every two months and is
attended by key representatives from the
main operational departments: Cargo,
Customer Services and Operations,
Engineering, Flight Operations,
Procurement, Property, Quality
Management and Terminal 5. Our major
environmental risks are also reflected in the
corporate risk register. Environmental policy
and performance is reviewed at our
quarterly internal Corporate Responsibility
Board and then annually by the British
Airways Board.
This year we maintained ISO 14001 for our
headquarters (Waterside), combined centre
for operations (Compass Centre) and
British Airways Component Engineering.
Individual departments are encouraged to
pursue accreditation where appropriate.
Stakeholder dialogue
We seek to promote ‘best practice’ within
the industry and encourage a better
understanding of our business with external
groups to ensure an accurate assessment of
our environmental impacts.
We continue to actively participate in
airport consultative committee groups and
the government’s Aircraft Noise Monitoring
Advisory Committee (ANMAC). This year
we have contributed to the Project for the
Sustainable Development of Heathrow – a
group considering the adequacy of
measurement data to enable pollutant
concentrations in the vicinity of Heathrow
airport to be monitored and modeled. We
have also contributed to ‘Sustainable
Aviation’ a cross-sectoral initiative to#p#分頁標題#e#
implement a strategy for the sustainable
development of aviation over the long term.
The strategy, which was launched on 20
June 2005, includes commitments on key
environmental challenges of aviation,
including limitation of climate change, noise
and local emissions.
On the broader international stage, British
Airways is actively involved with various
environmental groups contributing to the
development of policy by the United
Nations body ICAO (International Civil
Aviation Organisation). These include the
Emissions Trading Task Force which is likely
to have a major influence on the application
of emissions trading within aviation to deal
with climate change impacts.
We have also started to involve our
corporate customers in a dialogue on
environmental issues. In response to the
growing interest of business in the
environmental aspects of air travel, we held
an Environment Forum in March 2005 to
explain to our key corporate clients our
policies and programmes for managing the
environmental impacts of aviation.
Terminal 5
As our business prepares to transition from
our current operations into Terminal 5, we
have a unique opportunity to find new ways
to improve the environmental performance
of our operations at Heathrow Airport – our
major base.
Our Terminal 5 strategy mitigates our key
environment risks and government
conditions from the Public Inquiry, through
the development, design, delivery, and
operations at Terminal 5. The strategy
focusses on three key issues, and we are
already trialling initiatives to explore the
scope for improved performance.
Objective: “To minimise the noise
impact of our operations, on the
community and in other sensitive areas,
such as ground operations and inside
aircraft cabins.”
British Airways has a corporate policy for
environmental issues, which sets out the
need to:
• identify significant environmental
aspects and impacts;
• introduce appropriate management
systems;
• set objectives and targets for
improvements;
• meet or exceed relevant regulations;
• use resources efficiently;
• ensure employees are appropriately
trained and advised;
• engage with stakeholders.
• Reducing noise and emissions, through
more efficient use of aircraft, ground
operations and vehicle movements.
This includes reduction in the use of
aircraft auxiliary power units (APUs) on
turnarounds, consolidating ground
vehicle movements and logistics,
improving the efficiency of surface
transport for employees and passengers
and upgrading our ground vehicle fleet
to abate emissions.#p#分頁標題#e#
• Exploiting innovative design for energy,
water and waste management,
including the installation and
monitoring of energy and water
efficient technologies, and utilisation of
non-potable water where appropriate.
We aim to incorporate best practise
waste management, and maintain the
principles of segregation at source for
our key waste streams.
• Maximising the use of sustainable
resources by ensuring designed space
maximises the use of natural daylight
and adhering to the T5 materials
strategy, which eliminates the use of
non-sustainable wood, PVC and
specified refrigerants in the
construction, furnishings and fittings of
our accommodation.
Mainline fleet conforming to
international noise standards (per cent)
2002 2003 2004 2005
Concorde ICAO Chapter 3 ICAO Chapter 4
100
90
80
70
60
50
Data relates to 31 March and excludes Go and
Deutsche BA prior to the sale of these subsidiaries
Noise impact of British Airways
aircraft operations by airport
Airport Percentage of
British Airways
global noise
2004/05
Heathrow 36.5
Gatwick 10.4
New York – JFK 2.5
Manchester 1.8
Singapore 1.7
Edinburgh 1.6
Glasgow 1.5
Paris – CDG 1.1
Amsterdam 1.1
Aberdeen 0.9
2001
85%
14 15
continued for the whole of last year and has
been a great success. British Airways
aircraft have flown a total of 224 P-RNAV
approaches using Boeing 777 and 747-400
which are aircraft fitted with this equipment,
following a continuous descent approach
from cruise flight levels (25,000 ft) down to
the runway. A similar trial at Gatwick
started in May 2005. British Airways will be
the first operator to take part, initially with
Boeing 777s but hopefully extending to
other types later in the year.
As aircraft have become ever more efficient
and quiet, manufacturers and operators are
increasingly coming across trade-offs
between different environmental impacts.
It is important to identify what
interdependencies exist and how each is
affected by different designs and operational
techniques. To address these issues, ICAO’s
Committee on Environmental Protection
(CAEP) working group 2 (operations) and a
special task group looking at design issues
(WG1-3), will look specifically at trade-offs
between noise, local air quality and climate
change emissions. British Airways is active
in both these groups.
Local air quality management
Local air quality, in terms of nitrogen
dioxide concentration (a component of
NOx), has been identified in the
government’s White Paper on the “Future of#p#分頁標題#e#
Air Transport” as one of the greatest
environmental impacts affecting
communities local to airports. In this
respect the government suggested that
aircraft were the major (but not the only)
source of these emissions.
We recognise the importance of NOx
emissions from our activities and have for a
number of years sought to reduce emissions
from our aircraft fleet. However, aircraft
emissions are not just improved by new
aircraft purchases and engine technology. In
this respect we believe that a similar
process to the ICAO “Balanced Approach”
for noise mitigation could be used to
manage local air quality as well. However,
such a scheme would be more complex as
airport air quality is affected by both aircraft
and road traffic (probably the dominant
source at Heathrow).
As with noise, most of our local air quality
impact continues to be at Heathrow and
Gatwick airports, owned by BAA. This year,
with BAA, we initiated a Code of Practice
for Departures, addressing local air quality
impacts and trade-off issues with both noise
and climate change emissions. These
additional effects will need to be included in
any future code.
We are also working with the engine and
airframe manufacturers to quantify what
improvements can be expected from future
aircraft types, and to ensure that the
requirements of British Airways are
understood.
Local air quality – aircraft impacts
This year, NOx emissions from our aircraft
at Heathrow have risen slightly, due to
changes to our operations and fleet mix. To
help reduce our NOx emissions from our
aircraft fleets, we have invested in low NOx
technology engines for our larger long-haul
aircraft types: the Boeing 747-400, and
Boeing 777-200. Retrofitting the “-T”
engine modification to our 747 RB211-
524G engines has been ongoing on for
some time and these are now being
supplemented by the “DAC II” combustor
modification to the GE 90 engines on our
777-200 fleet as well. The reductions in
NOx associated with the DAC II
modification are about 6.5 per cent, or two
kilogrammes per departure.
A significant amount of our current aircraft
fleet already meets the latest NOx standard
for aircraft engine emissions with 78 per
cent meeting the CAEP/4 standard (for new
engine types from January 2004), and 52
per cent meeting the CAEP/6 standard
which will apply to new engine types from
January 2008.
As noted earlier, we have continued to
improve our performance of Continuous
Descent Approaches (CDAs), which has the
double benefit of reducing noise and low
level emissions related to local air quality.
We are committed to identifying and#p#分頁標題#e#
removing the remaining obstacles to
optimising CDA profiles, and to fully realise
the environmental improvements that result.
We continue to examine ways to minimise
our ground level emissions from aircraft.
We have just conducted a trial to reduce the
use of the Auxiliary Power Unit (APU) to a
maximum of 15 minutes before departure.
(The APU is a small gas turbine located in
the tail of the aircraft, and used to supply
electrical power and bleed air for aircraft
systems.) Preliminary results were
encouraging. The facilities available on
Terminal 5 stands should significantly
reduce APU running (which contribute
between 10 and 20 per cent of the ground
level NOx emissions from aircraft),
providing an environmental benefit when
Terminal 5 opens.
Local air quality – vehicle impacts
In August 2004, British Airways signed up
to the BAAs Clean Vehicles Programme
(CVP) at Heathrow. The CVP helps identify
and deliver practical improvements in the
environmental performance of vehicle
fleets. These improvements cover many
aspects relating to vehicle usage, from
investing in alternative fuels to developing
employee travel plans and promoting car
sharing. British Airways received a silver
award, the second tier of the five tiers in the
CVP framework.
We are now ‘going for gold’ and will be
putting initiatives in place over the next
twelve months to improve our fuel data
management, emissions modelling and
driver awareness. At Heathrow, a new fuel
management system is being installed which
will greatly improve the quality of fuel
consumption data.
British Airways is also participating in a
study with BAA Heathrow and Millbrook
test and development centre to establish
the typical duty cycle for airport vehicles,
to enable more accurate measurement and
modelling of exhaust emissions. We are also
supporting trials of battery-powered
vehicles at Heathrow (see below).
Research and next steps
This year we have continued to work with
local stakeholders, although the work of the
steering group chaired by British Airways
has largely been taken on by the
government’s “Project for the Sustainable
Development of Heathrow” (PSDH). British
Airways is actively involved with the air
quality part of this initiative, and are actively
involved on two of the project’s panels:
panel two – ambient measurement, and
panel three – emissions source. Further
details can be found on the Department for
Transport website.
Similarly, British Airways is also active in
ICAO CAEP’s working group two
(operations) where a considerable amount
of work is being carried out to identify how#p#分頁標題#e#
aircraft operational practises affect local air
quality at and around airports. In March
2004, we also supported a measurement
campaign carried out by scientists from the
Institute for Meteorology and Climate
Research (IMK-IFU), Germany, to measure
the emissions of aircraft engines and APUs
at Heathrow’s Terminal 4.
We have continued to monitor the
concentration of nitrogen dioxide along a
transect, to the north of Heathrow airport,
and have now completed two years of
monitoring. The results continue to show a
sharp “drop-off” in nitrogen dioxide
concentration just north of the airport
boundary, with a “bulge” in the area of
Harlington village and then rising again to a
higher level between Shepiston Lane and
the M4 motorway. The analysis is carried
out independently for British Airways by
netcen, and is available along with the
results of other monitoring in the Heathrow
area at www.heathrowairwatch.org.uk.
Improving public transport access
Road traffic is the major cause of air quality
problems around Heathrow airport, so we
are keen to promote alternative modes of
transport for our employees. We have just
published our second Company Travel Plan,
for details please go to
www.ba.com/responsibility.
British Airways’ new company travel plan is
designed to:
• Minimise our surface access impact on the
environment and local community by
pursuing measures that address road
congestion and related local air quality
problems where we can make a difference.
• Provide a policy framework that
encourages bus and rail transport
providers to expand high quality public
transport links to the airport, operated
when and where they are needed (a vital
issue as 85 per cent of our employees
work shifts).
• Support our ability to continue to attract
and retain high quality employees to work
at Heathrow.
Terminal 5 will have an excellent public
transport interchange integrated into the
terminal. British Airways is supporting its
development by supporting new rail
services which will widen the Heathrow
catchment area for public transport access.
This includes Heathrow Connect (a
stopping service from West London),
Airtrack (a new rail link from T5 to the west
and south of Heathrow) and Crossrail –
which will provide better links to central
London and Docklands.
Climate Change
Aviation contributes to climate change
through its carbon dioxide emissions and
other effects in the upper atmosphere.
Although the effect of CO2 is well
quantified the contribution of elements such
as NOx, water vapour, particles and the
formation of clouds is less clear. British#p#分頁標題#e#
Airways supports a long-term strategy to
limit aviation’s climate change contribution
based on robust science, sound economics
and well-developed policy instruments. We
are working with United Kingdom,
European and worldwide industry partners
to develop this strategy.
Aircraft fuel efficiency
Minimising fuel consumption is important
both in terms of reducing business cost and
in tackling climate change. Key factors
influencing aircraft fuel efficiency are fleet
renewal, air traffic management and load
factors.
In the late 1990s, British Airways set a
target for a 30 per cent improvement in our
aircraft fuel efficiency over the period 1990
to 2010. We have now achieved more than
90 per cent of that improvement, with a
27.4 per cent improvement registered by
2004/05. We remain on course to meeting
our target of a 30 per cent improvement in
aircraft fuel efficiency by 2010, but if we
meet this target earlier than planned, we will
set a new target for a future 20 year period.
British Airways’ fuel consumption has
declined from 3.9 to 3.8 litres per 100
passenger kilometres over the last year. At
the Geneva Aviation and Environment
Summit in March 2004, airlines committed
to strive to achieve by 2008 an overall
average fleet fuel efficiency of four litres per
passenger kilometre. British Airways’ current
performance already surpasses this target.
Ground energy efficiency
During the year, British Airways’ property
department, working with its facilities
management service provider has initiated a
review of it’s energy efficiency strategy,
beginning with a pilot study at our
Heathrow maintenance facility, to identify
energy saving initiatives.
Over the latest period, CO2 emissions from
United Kingdom properties have reduced
by 12 per cent from 142,603 to 127,922
tonnes. This reflects continuing
Objective: “To reduce the air quality
impact of our operations, and to ensure
that emissions affecting local air quality
are managed in a balanced way to
achieve national standards.”
Objective: “To be efficient in our use of
fuel and energy and to promote an
international framework to limit the
contribution of aviation to climate
change based on emissions trading.”
NOx impact of British Airways aircraft
operations by airport
Airport
Heathrow 39.8
Gatwick 6.7
New York – JFK 2.6
Singapore 1.5
Manchester 1.4
Edinburgh 1.2
Glasgow 1.2
Chicago – ORD 1.2
Boston 0.9
Paris – CDG 0.7
N.B. emissions below 1,000ft. Data relates to 2004/05.
Percentage of
British Airways
NOx emissions#p#分頁標題#e#
Mainline subsonic fleet conforming to international
NOx emissions standards (per cent)
2005
ICAO initial cert. ICAO CAEP/2
ICAO CAEP/4
Not Certified
ICAO CAEP/6 (proposed)
100
90
80
70
60
50
40
30
Data relates to 31 March and excludes Go and Deutsche BA
prior to the sale of these subsidiaries
2001 2002 2003 2004
97
78
52
rationalisation of our property portfolio.
The target to reduce energy consumption in
buildings and facilities by two per cent per
annum between 2000 and 2006 has been
surpassed. Within the ongoing energy
efficiency strategy review, we propose to set
new targets for improving energy efficiency
per passenger.
Emissions trading
We believe emissions trading is the most
economically efficient and environmentally
effective mechanism for dealing with the
growth of aviation greenhouse gas emissions.
British Airways has participated in the
voluntary United Kingdom Emissions Trading
Scheme since 2002 covering emissions from
our domestic air services and United
Kingdom properties. For 2004, the third year
of compliance, we reported a 23 per cent
reduction in our contribution to the United
Kingdom CO2 inventory, compared to the
1998-2000 baseline. Participation in this trial
scheme has been a valuable learning
experience in preparation for any mandatory
trading schemes at European Union or global
level.
Over the last year, British Airways has
actively contributed to the development of
climate change policy within the
Association of European Airlines (AEA),
including feasibility assessment of linking
aviation with the European Union
Emissions Trading Scheme. We will
continue to work with our European
partners to proactively influence the
European Commission in its policy
development on aviation and climate
change.
At the international level, we are also
supporting the continuation of discussions
within the UN International Civil Aviation
Organisation to establish a global
framework for the involvement of aviation
in emissions trading worldwide, through
participation in the ICAO Emissions Trading
Task Force.
Non-CO2 atmospheric effects
Whilst research has provided a robust
understanding of the scale and climate
impacts of aircraft CO2, there is less
scientific consensus of the extent of the
climatic effect of NOx and contrails during
cruise. Improvements in technology and
associated international standards are
appropriate mechanisms for limiting the
effects of NOx. However, research into
atmospheric composition and the non-CO2
effects of aviation should be prioritised.
British Airways is committed to this#p#分頁標題#e#
research and is a partner in the European
Union project – IAGOS – to directly
measure atmospheric composition.
Carbon offsets
There is growing interest from corporate
customers, government and individual
travellers, in offsetting the carbon impacts
of their air travel. British Airways is keen to
work with its customers to meet their
requirements, including making provision
for carbon offsets. However, we do not see
this as a substitute for coherent industry
action to reduce the impact of aviation on
carbon emissions and climate change.
Waste and resource use
British Airways has identified waste
reduction and management as a key area
for our environment programme. In support
of this, we launched a waste initiative in
January 2005. We are now committed to a
two per cent per annum reduction in waste
per passenger and a 40 per cent
recycling/recovery rate by 2010. The waste
reduction and recycling recovery rate
targets apply to all waste at Heathrow and
Gatwick, excluding cabin waste, which is
handled by the airport authorities.
Individual departments have contributed
projects to help deliver the targets, e.g. the
Engineering department has reduced the
number of hazardous materials by 10 per
cent and has just started to recycle used
aerosol cans. We recycle plastic cups from
vending machines and have increased the
amount of office paper recovered for
recycling. The waste initiative has been
communicated through articles in the
British Airways employee newspaper and
on the company intranet. This year we will
establish baseline data to allow performance
monitoring against our targets.
We produced over 27,000 tonnes of waste
at Heathrow and Gatwick. The two per cent
improvement year on year represents a
reduction in several waste streams at
Heathrow and Gatwick in particular, liquid
waste from our maintenance operation.
This includes waste from British Airways
activities and facilities and our catering
waste handled by service partners. It does
not include cabin waste which is disposed
via the airport waste stream and for which
there is no specific measurement available.
Of this total, some 5,000 tonnes is
hazardous waste that requires special
treatment before final disposal. It is difficult
to obtain reliable waste volumes worldwide
because most of the waste is disposed of
through the airport company waste stream.
Where data is available, we aim to collect
waste data from other locations worldwide.
Recycling initiatives
We recycled over 2,000 tonnes of material
in 2004/05 at Heathrow and Gatwick
(additional information is on the website).
This included materials recycled through#p#分頁標題#e#
our waste contractor’s Material Recovery
Facility near Heathrow. A number of
recycling projects are being carried out
including: recycling of polythene at our
World Cargo Centre, recovery of waste oils
and solvents from our Engineering
operations and the recycling of cooking oils
from our employee restaurants. We have
recently provided desk-top trays to improve
the amount of paper recovered for recycling
in offices at Heathrow. We continue to sell
surplus aircraft catering equipment to
employees.
Waste at Heathrow and Gatwick
(Total tonnes)
17
Independent assurance
The Reassurance Network was
commissioned to provide external
assurance of the British Airways
2004/2005 Corporate Responsibility
Report, covering: the accuracy,
completeness and relevance of information
and the extent to which British Airways has
responded to its own previous
commitments and to the expectations of its
key stakeholders. A more detailed
assurance statement is available at
www.britishairways.com/responsibility.
As part of a broader assurance programme
we have also reviewed the sub-set of
management and governance systems that
relate to corporate responsibility and have
provided a separate internal report to British
Airways’ Corporate Responsibility Board.
The contents of this report are the
responsibility of the directors of British
Airways. Our statement has been prepared
in accordance with a scope and
methodology that takes into account
emerging good practice and standards in
this area, including the AA1000S assurance
standard.
Scope and methodology
The assurance process included a review of
policies, procedures, surveys, minutes and
other relevant documentation. Interviews
were carried out with 34 British Airways
managers. We have sought to match the
level of verification with the potential
significance of the information to British
Airways’ business objectives, its
stakeholders and the report’s wider
readership. External parties were contacted
where necessary to validate data. Financial
data was cross referenced to the separately
audited Annual Report.
The verification of British Airways’ overseas
operations, including its franchises has
been limited to a review of information
collected by head office. We shall be
reviewing British Airways’ operations in
New York later this year to provide
recommendations for the improved
management and assurance of international
corporate responsibility.
Accuracy and quality of content
We are satisfied that the data and
statements made in the report have been
prepared on the basis of robust and#p#分頁標題#e#
objective processes and are sufficiently
accurate, up-to-date and suitable for
readers of the report to form balanced
opinions on British Airways’ activities and
performance in relation to corporate
responsibility.
Completeness, relevance and
responsiveness
In assessing the significance of areas
included in the report we have reviewed
the company risk register and have
questioned key corporate directors and
managers on incidents reported and issues
arising during the reporting period. It is our
view that the report presents a
representative account of British Airways’
management of significant social and
environmental risks and impacts.
This year, British Airways has reported in
the context of its internal management
framework, “The BA Way”. As in previous
years its main focus is on its primary areas
of operation in the United Kingdom. Some
highly significant areas such as safety and
security are already highly developed and
co-ordinated internationally. However, one
in seven employees works outside the
United Kingdom, a significant proportion of
British Airways’ environmental emissions
and wastes are generated overseas and a
wide range of suppliers provide materials
and services around the world. We have
suggested that more consideration should
be given to future reporting on key
overseas operations and non-core aspects
which could be of wider corporate interest
to stakeholders e.g. the management of
wastes.
This year British Airways’ survey of 100
United Kingdom-based stakeholders
confirmed the need to focus on impacts
around Heathrow airport with a lesser need
to provide assurance on British Airways’
wider business conduct. Our
recommendations to broaden the scope of
coverage need to be taken in this context.
It may however be useful to research the
opinions of a wider, more international
group of stakeholders next year. We are
not aware of any major issues raised by any
of British Airways’ stakeholder groups that
have not been included in this report and
regard British Airways as achieving a high
level of responsiveness to issues identified
as significant.
Of the 48 commitments made in the
2003/04 report, British Airways has
fulfilled 44 with three being the subject of
ongoing work. One target, on time
payment of suppliers, has not been met.
Key developments
During the course of our work we have
identified a number of key developments
relating to British Airways’ management of
corporate responsibility during the past year:
• “The BA Way” has been communicated
across the company as the main vehicle#p#分頁標題#e#
for achieving business goals. It is
anticipated that corporate responsibility
will progressively be managed and
reported in the context of “The BA Way”
framework.
• Environmental and social priorities have
been incorporated into the corporate
risk register which is in the process of
being linked more directly to British
Airways’ internal audit programme.
• A new Code of Conduct and Statement
of Business Principles have been
incorporated into British Airways’
Standing Instructions.
• Progress has been made on trialling theapplication of environmental and labourstandards to supplier contracts. British
Airways acknowledges that the fullintegration of these issues into theprocurement process is a priority.
• The Corporate Responsibility Board hasestablished itself as the central body, notonly for setting policy but also forestablishing operational requirementsand systems for the management ofcorporate responsibility issues.
• British Airways is driving industry-wideco-operation to improve health andsafety standards in key operationalareas, has maintained its investment inglobal security systems and hastightened its 英國留學生dissertationstandardsand proceduresrelating to drugs and alcohol.
• British Airways is working to influencethe aviation industry to take a moreproactive role in respondingconstructively to the global warmingchallenge.
Objective: ‘To reduce waste andeffluent, manage waste and effluentstreams responsibly and be efficient inour use of resources.’
2001/02
30000
28000
26000
24000
2002/03 2003/04 2004/05
British Airways Property
CO2 emissions for the UK Emissions
Trading Scheme (UKETS)
Calendar Year CO2 emissions
(tonnes)
UKETS Baseline* 159,262
2002 140,455
2003 142,603
2004 127,922
* Note: UKETS Baseline is the average of emissions in
1998, 1999 & 2000
Recycling
Incineration
Landfill via
MRF/pre-treatment
Landfill direct
Treated liquid waste
Waste management at Heathrow and Gatwick
(tonnes)
32%
5%
18%
1%
44%
Paul Werman and Malcolm Guy
The Reassurance Network
May 2004
16
Key performance indicators
The above indicators reflect British Airways worldwide performance. We have indicated where this is not the case in the body of the report.
80%
70%
60%
50%
40%
2004
/05
2000
/01
2001
/02
2002
/03
0
1
2
3
Community – Change for Good
£1.6m
2003
/04
£1.5m
£2.1m
£2.5m £2.7m
Overall
satisfaction#p#分頁標題#e#
with BA
Likelihood to
recommend BA
Likelihood to
travel BA again
Key customer measures
Jun
04
Jul
04
Aug
04
Sep
04
Oct
04
Nov
04
Dec
04
Jan
05
Feb
05
Mar
05
6000
5000
4000
3000
2000
1000
0
Working days lost from work related injury and
ill health per 100,000 employees
May
04
Apr
04
£m
2000 2001 2002 2003 2004
British Airways’ share of business travel market
Source – ONS International Passenger Survey
Source: GPM.
British Airways and global traffic trends
*Source – ICAO and IATA
world scheduled airline services
Global air transport* British Airways
2000
/01
2001
/02
2002
/03
Aircraft carbon dioxide emissions
(million tonnes)
15.1
15.5
17.1
2003
/04
15.4
2004
/05
15.8
2004
/05
2000
/01
2001
/02
2002
/03
90
80
70
60
50
Aircraft fuel efficiency
(index of fuel use per RTK, 1990=100)
77.3
75.7 76.7
2003
/04
75.5
2000/01 2001/02 2002/03 2004/05
1.0
0.8
0.6
0.4
Index of NOx emissions to 1000 feet at Heathrow
airport (British Airways mainline)
0.832 0.827
0.992
0.903
2003/04
0.867
Route passenger kilometres, % change on year earlier
British Airways 2010 target 1998/99 = 1.0
2000
/01
2001
/02
2002
/03
2003
/04
2004
/05
British Airways’ labour and capital productivity
Real revenue per unit of labour and capital input;
index nos 2001/02 =100
130
125
120
115
110
105
100
95
Longhaul Shorthaul
38
36
34
32
30
28
26
British Airways % share of business travel to/from UK
2000 2001 2002 2003 2004
Labour
Capital
Labour productivity = real revenue per MPE;
Capital productivity = revenue per unit of fleet
tangible assets (net book amounts).
Source: British Airways annual reports
The working days lost data is presented in a different format this year to align it with
the Health and Safety Executive norm
19
18
17
16
15
14
2003/04 2004/05
Overall Performance Measures. All cabins.
Customer rating (‘Extremely/Very satisfied/likely’)
00/01 01/02 02/03
Total noise energy
(million QC equivalents)
2004 2005
Diversity trends 2004/05; UK only
All females
Management females#p#分頁標題#e#
All ethnic minorities
Management ethnic minorities
With Concorde Without Concorde
43.2
34.45
11.18
3.57
42.14
31.89
10.67
3.55
2000
/01
2001
/02
2002
/03
2003
/04
2004
/05
British Airways’ operating margin and seat factor
Operating profit as % of sales
Financial Target
50
40
30
20
10
0
03/04 04/05
1.0
0.8
0.6
0.4
0.514
76
74
72
70
68
66
10
8
6
4
2
0
-2
Operating margin 10% Financial target
Seat Factor
Seat factor %
15
10
5
0
-5
-10
-15
Source: British Airways Environmental Affairs
QC groupings for individual aircraft have been based on the definitions contained
in the London Airport Night Restriction Scheme
72.6
British Airways achieved an operating margin of 6.9 per cent
in 2004/05, up from 5.4 per cent in 2003/04 and 3.8 per
cent in 2002/03. This is still short of the target rate of 10
per cent, necessary to deliver an adequate return to
shareholders over the long term. Passenger
seat factor on British Airways’ flights rose to 74.8 per cent in
2004/05.
The business travel market is an important one for British
Airways, and we carried nearly 30 per cent of all business
travellers flying to, from or within the United Kingdom in
2004. Our share of business travellers (across all cabins) has
fallen steadily over the last few years on shorthaul services as
the “no frills” carriers have expanded their networks to
appeal to cost-conscious business travellers. Our share of
the longhaul business travel market increased in 2004,
benefitting from British Airways’ product leadership in areas
such as the installation of flat bed seats in business class
cabins and the introduction of premium economy products
such as “World Traveller Plus”.
British Airways saw a five per cent rise in passenger traffic in
2004. This was much less than the 14 per cent rise
experienced by the global airline industry, which was
boosted by rapid growth in traffic carried by Asian and
Middle Eastern carriers compared with 2003 levels that were
depressed by the effects of Severe Acute Respiratory
Syndrome (SARS) and the Iraq war. British Airways’
relatively low traffic growth was restrained by its modest
pace of capacity expansion of just over two per cent.
The levels of British Airways’ capital and labour productivity
– measured by real revenue per unit of capital and labour
employed – have both improved since 2001. This reflects the
impact of more efficient utilisation of both labour and#p#分頁標題#e#
capital, due to continued business restructuring.
This year British Airways’ strategy has focussed on the five
goals of ‘the BA Way’. Those goals are supported through
the four key indicators representing different aspects of our
performance in the areas of employees, community,
customers and safety.
We have seen an increase in both the proportion of female
employees as well as the number of female managers
following a proactive programme of engagement with female
employees. These results are also mirrored within our ethnic
minority group where both the number of ethnic minority
employees and the proportion in management has increased
versus last year. Our internal focus groups will continue to
listen to the needs of these groups to support future
opportunities and initiatives.
Change for Good has this year seen a record level of
contributions. The increase can be attributed to the
generous public donations and the British Airways’
corporate donation following the Asian Tsunami in
January 2004.
In its 10th anniversary year there have been a number of
activities taking place to drive the continued success of the
partnership with UNICEF.
Customers remain at the heart of our business and we work
hard to better understand their needs so that we can do all
we can to help them choose British Airways in the future.We continue to work towards the Revitalising Health and
Safety initiative target of reducing the number of workingdays lost from work related injury and ill health by 30 percent by 2010. Our target is being reviewed in the light ofthese changes.
Market and financialPeople, customers and communities
Environmental
18 19
In 2004/05, our overall noise and emissions performancecontinues to improve through the introduction of newaircraft and changes to operational procedures. Althoughthere has been a slight increase in the overall emissions ofcarbon dioxide and nitrogen oxide at Heathrow, there hasbeen a consistent year-on-year improvement in fuelefficiency.
Our global noise indicator, measured in terms of QCequivalent (the method used for classifying the night noiseimpact at the London airports), shows further reduction.
There has been steady improvement over the last five yearsof over 25 per cent.
Emissions of carbon dioxide have increased slightlycompared to last year. This is mainly due to the increased
flying programme as a result of the generally improving
market conditions, however, this rise should be set against
continued improvements in fuel efficiency.
British Airways fuel efficiency has improved by almost four
per cent relative to last year, reflecting our commitment to
this important issue and our target of a 30 per cent
improvement by 2010 (relative to 1990).
NOx emissions from our aircraft operations at Heathrow#p#分頁標題#e#
have increased slightly this year. This reflects changes in the
fleet mix and flights being operated out of our main base.
The levels are, however, still almost nine per cent lower than
they were five years ago.
With the introduction of new European Union Air Quality
legislation, our NOx emissions at Heathrow will be a major
focus for improvement in the years ahead.
20 21
Published in July 2005
Copyright © British Airways 2005
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Customers can log on to www.ba.com
for bookings and information.
British Airways publishes two 24 hour
telephone numbers:
0870 850 9850
Booking enquiries, fares, availability, hotels,
insurance, car hire, customer relations.
0870 55 111 55
Flight arrival and departure information.
Contact us
To contact Customer Relations by email
please use the feedback page on our
website www.ba.com
For further information on
British Airways’ social and environmental
issues and programmes, additional data and
to download a copy of this and/or previous
reports please visit our website:
www.ba.com/responsibility
For other relevant information visit:
www.ba.com/health
www.ba.com/tourism
www.ba.com/runways
write to:
Environmental Affairs,
British Airways plc, Waterside (HBA3),
PO Box 365, Harmondsworth,
Middlesex, UB7 0GB, UK
email:
[email protected]
[email protected]
Glossary
List of abbreviations
AEA Association of European Airlines
APS Airways Pension Scheme
APU Auxiliary Power Unit
ATC Air Traffic Control
ANMAC Aircraft Noise Monitoring Advisory Committee
ATM Air Traffic Management
BARP British Airways Retirement Plan
BASIS British Airways Safety Information System
BATUC British Airways Trade Union Council
BEAM British Airways Emissions from Aircraft Model
BRS Business Response Scheme
CAA Civil Aviation Authority
CDA Continuous Descent Approach
DVT Deep Vein Thrombosis
FSAS Future Size And Shape
FTSE Financial Times Stock Exchange (Index)
GPM Global Performance Monitor
HSE Health & Safety Executive
IATA International Air Transport Association
ICAO International Civil Aviation Organisation
LGW London Gatwick Airport
LHR London Heathrow Airport
NAPS New Airways Pension Scheme
NATS National Air Traffic Services
QC Quota Count, noise category value#p#分頁標題#e#
SARS Severe Acute Respiratory Syndrome
UNICEF United Nations Children’s Fund
WHO World Health Organisation
Explanation of terms
Abbreviation Full name Explanation
ASKs Available seat kilometres The number of seats made available for sale multiplied by the distance flown
ATKs Available tonne kilometres The number of tonnes of capacity available for the carriage of revenue load
(passengers and cargo) multiplied by the distance flown
LTIs Lost time injuries An injury which results in the employee having one or more days off work through injury
Mainline This includes British Airways and all of its wholly-owned subsidiary undertakings
MPE Manpower equivalents Number of employees adjusted for part-time workers, overtime and contractors
RPKs Revenue passenger kilometres Number of revenue passengers multiplied by the distance flown in kilometres
RTKs Revenue tonne kilometres The revenue load (passengers and cargo) in tonnes multiplied by the distance flown in
kilometres
Health and safety reporting categories for incidents in the workplace
英國留學生dissertationFatal injury : Death of an employeeMajor injury : Any injury defined as Major by the HSE or an injury that renders the employee unable to return to normal duties after
permanent disablement
Serious injury : An injury, other than Major, that is reportable to the HSE or any injury that renders an individual unable to continue normalduties, but from which a full recovery could be expected after a sufficient period of recuperationMinor injury : An injury where the individual is able to continue normal duties after receiving first aidMember organisations and external reporting awards 2004/05.
For other relevant information visit:
www.ba.com/responsibility
For flight bookings and general information contact
www.ba.com