British Airways (BA) has announced record losses during the past one year, the most significant failure experienced by the company in its 85 year history.
Formed in 1924 as Imperial Airways Ltd., the business has transformed considerably over the years.
It was nationalised in 1974 by the then Labour government and became known as British Airways, combining both BEA (British European Airways) and BOAC (British Overseas Airways Corporation).
In 1987, the airline was privatised in an attempt to turn the company around after continued losses. Despite a certain amount of controversy surrounding the floating of British Airways on the London Stock Exchange, the privatisation was seen as a success with massive profits recorded by the early 1990s.
But within ten years of privatisation, the airline began to struggle as competition from other airlines increased, coupled with high oil prices. Although BA managed to turn its financial position around by the millennium, the recession has brought back all the old problems.
For the full story by Dongying Wang and Rob Welham, published by Xinhua News Agency in May 2009, please click here. Also, please return to the blog to post your comment.
No comments:
Post a Comment