Vishal Kumar 10x5

Economic influence report

Mr Elkon

Vishal Kumar 10x5

24th July 2007

Economic influence report

In this report I will be writing about the inflation rate and also describing it by what it actually is and also I will be writing about the current rate and how this will affect British Airways and what there response is to this.

Inflation is when the price rises within a short period of time. The current rate of Inflation is 3.1% and the government wants it to be downgraded to 2.1% which is not quite a lot. This is affecting British Airways as they will need to pay more money for their fuels and other materials they will need in future for there business to commence on forward. This is also affecting British Airways as their customers will need to pay more money to them for their tickets and because of this reason they might be losing out on their customers as they will be complaining about the fares and of how they have raised them in a sudden. And if the government decide to change the rate to 2.0% then the customers will have to pay less money to them which will result in more profits and more customers at the same time.

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My suggestions for British Airways is that they should be saying to the government that because of you our customers are falling out due to the inflation rate you have particularly set and because of that they will have to cut down on staff and also raise the ticket prices which will result the company British Airways into a loss as they will be losing out on customers and also they will be losing out on their profits which British Airways certainly does not want. And if on the other hand the Inflation rate goes down then British Airways ...

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