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How does British Airways affect the government?

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Stakeholders - Government How does British Airways affect the government? The government is a major stakeholder in all businesses. A company's success is very important to the government. If British Airways has a successful year, they would earn a lot of profits. This means they would have to pay more corporation tax to the government. They would also have a lot of employees. These employees would be getting paid by British Airways. Therefore, they would not be receiving benefits from the government. The government would also receive more national insurance and income tax from the employees. British Airways also sells goods on their aircrafts and in airports. Each product they sell has 17.5% added on to the cost. This is a Value Added Tax which is given to the government. The government receives a lot of taxes from British Airways and their employees. They can use these taxes on public sectors. Police departments, the NHS and schools can be improved with this money. This will lead to healthy, safe and well educated people. These people would be happy and it would be easy for them to get good jobs. ...read more.


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. ...read more.


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. ?? ?? ?? ?? Awais Riaz Page 1 ...read more.

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