However, if the opposite happened and British Airways did not manage to make healthy profits, taxes paid to the government would decrease and employment levels would fall. The government would then have to pay more benefits and will lose support because they wouldn’t be investing enough on the public services sector. The public’s spending power would decrease and business activity would also decrease. This would lead to even further recession. All these disadvantages will lead the country’s economy to a downfall.
As British Airways is the world’s second largest airline, they bring in a lot of international businessmen and tourists. These people stay in hotels, eat at restaurants and shop at a lot of local shops. This increases business activity and profits. It also increases taxes paid to the government and creates a lot of jobs. Therefore, once again the government would not have to pay as much benefits and would be able to concentrate on the public services sector and make the people happy and increase its support.
British Airways has a lot of employees and customers coming from and going to airports. This is the reason why the government built a new lane on the M25. However, the customers and employees use their cars a lot and this increases pollution levels. This is why the government persuades people to use public transport and a lot of people do use public transport now. This means that they are helping companies that run trains and buses to earn higher profits. This in return increases taxes paid to the government and the public services sector benefits once again.
How are British Airways affected by the government?
The government often has to step in to help companies make some important decisions. This is why they had to stop all airlines from flying at unsociable times in order to keep local communities happy. British Airways was also affected by this decision because the number of flights they have per day had to be decreased. The government has also done their best in order to ensure that British Airways does not have more than 10 landings or takeoffs from a single airport during the hours of 4 and 4.30am.
The government has set many Health and Safety laws for firms such as British Airways. This affects the way these firms operate. The Civil Aviation Authority also plays an important part in making laws. For example, all full time employees who work for an 8 hour, 40 minute shift are entitled to a 40 minute lunch break, 30 minute tea break and 20 minute break. There is also a law for all cabin crew. This law clearly indicates that all cabin crew who work for 12 hours can not be called back for another job within the next 12 hours.
Heathrow Airports terminal 5 will mainly be run by British Airways. The government has passed a law which states that British Airways must recycle at least 85% of waste in order to continue operating at this terminal. If they do not abide by this law, they will have to pay very heavy fines.
British Airways must follow all employment laws or they will have serious sanctions put on them. These laws include:
Race Relations Act – 1976
Sex Discrimination Act – 1975
Employment Relations Act – 2004
Employment Relations Act – 1999
Rehabilitation of Offenders Act – 1974.
As well as the 10 flights a week limit during 4am and 4.30am, British Airways also has more laws they must follow. Another law indicates that British Airways must land at least a thousand feet behind the plane landing in front. They also have to ensure that all planes bought from abroad must have lower Carbon Dioxide emissions than their current planes. This is because British Airways want to lower the carbon foot print they make.
If British Airways was under debt due to oil prices or natural disasters, the government would have the firm financially. This is because if British Airways went bankrupt, the government would have to spend a lot of money in order to pay benefits to people who have lost their jobs due to British Airways’ bankruptcy. This will lead all the employees to a lower spending power and will decrease business activity. Fewer profits will follow and the government would have to step in to save the firms. Taxes paid to the government would decrease and the country would be hit by recession. Therefore, British Airways’ success is very important to the country.
