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Britis Airways sharholders

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Introduction

Stakeholders - Shareholders How are shareholders affected by British Airways? A person who has paid to be part of a business is known as a shareholder. British Airways, Britain's largest airline, has over 250,000 shareholders. The airline has setup special deals for shareholders. These include 10% discount to any person who owns 200 shares or more in the business. Shareholders are a key asset to British Airways. Security has risen immensely since September 11th 2001. Since this date, British Airways has improved their security in order to keep communities and their customers happy. Happier customers and communities will improve sales and profits. This will also improve the number of shareholders and their investments. This is because shareholders will be hoping that they will receive higher dividends. Shareholders also hope that each individual share price increases so that they can sell their shares for a higher price than they originally bought them for so they earn a healthy profit. ...read more.

Middle

A major issue which decreases share price is natural disasters. Nobody can decide when these disasters will occur. British Airways has to ground a lot of flights when these disasters occur. As flights are grounded, the company makes a loss. A delay in flights also makes customers angry and this also decreases the number of customers who fly with British Airways. This decreases profits and sometimes even running costs have to be decreased. It also lowers profits and dividends paid to shareholders. If the price of petrol was to increase, which it is currently doing on a regular basis, ticket prices will also have to increase in order to break even. British Airways can then lose customers to cheaper competitors. This will affect British Airways because their sales and profits will decrease. It will also affect shareholders because the amount of dividends paid out to them will also decrease. ...read more.

Conclusion

This was a good decision because competition affects shareholders, which are the main source of funding. How is British Airways affected by Shareholders? British Airways holds a meeting for all shareholders. This meeting is known as the Annual General Meeting. The next meeting will be held in July 2008 at the QEII Conference Centre in Westminster. At this meeting, shareholders will be voting on issues which will most likely affect the way British Airways operates. If shareholders are unhappy with the way their money is being handled by British Airways, they are likely to withdraw their investments, causing the airline severe damage. Shareholders can then take their money to rival airlines. This and the fact that the airline would not be able to function without shareholders is why these stakeholders are crucial to British Airways. The millions of pounds in investment allow British Airways to invest in new routes, services, aircrafts, advertising and market research. All these investments will help British Airways to function better. ?? ?? ?? ?? Awais Riaz Page 1 ...read more.

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