strategic, executive-level articulation of British Airways’ greatest strategic challenges for the next 3 years (2025–2028). This will help you prepare for interviews, assessments, or application questions.
Greatest Strategic Challenges for British Airways (Next 3 Years)
1. Modernising an Ageing Fleet While Controlling Costs
British Airways has one of the oldest fleets in Europe among major carriers.
Over the next three years, BA must:
- Replace ageing aircraft to reduce fuel burn, maintenance costs, and emissions.
- Manage long lead times for new aircraft (A350s, 787s, 777Xs) and supply-chain delays.
- Fund these investments while maintaining profitability and keeping fares competitive.
Why it’s a challenge: Fleet renewal is capital-intensive and constrained by global aircraft shortages.
2. Improving Operational Reliability and Customer Experience
BA has faced:
- Operational disruptions (cancellations, IT outages, ground-handling inconsistencies),
- Lower customer satisfaction versus leading European and Gulf competitors.
Next 3 years will require:
- Stabilising operations through better staffing, technology, and baggage/ground handling automation.
- Enhancing digital touchpoints (app, check-in, disruption management).
- Rebuilding trust and improving NPS.
Why it’s a challenge: Customer expectations are rising while BA’s legacy systems and workflows need major overhaul.
3. Digital Transformation + Legacy IT Replacement
BA is still heavily reliant on legacy IT systems across reservations, ops control, crew management, and MRO.
Strategic priorities:
- Migrating to cloud-based, integrated ops systems,
- Using predictive analytics for maintenance, crew planning, fuel efficiency and supply chain,
- Deploying AI and automation to reduce turnaround times and irregular operations impact.
Why it’s a challenge: Transformation at this scale risks disruption if poorly managed and requires major cultural and process change.
4. Workforce Relations, Skills Shortages & Cultural Shift
BA must address:
- Talent shortages in engineering, pilots, cyber, and operations.
- Post-pandemic labour relations tensions, pay negotiations, and union constraints.
- Need for a digitally-skilled workforce as BA modernises.
Why it’s a challenge: Airline performance depends on high workforce stability and alignment across diverse employee groups.
5. Margin Pressure From Competition
BA faces intense competition from:
- Gulf carriers (Qatar Airways, Emirates) on long-haul premium,
- Low-cost carriers (easyJet, Ryanair, Wizz) on short-haul,
- European flag carriers improving (Lufthansa Group, AF-KLM).
BA must:
- Differentiate on service, digital experience, loyalty, and connectivity.
- Maintain Heathrow slots while optimising yields.
Why it’s a challenge: Competition exerts pressure on both ends of BA’s product spectrum—premium long-haul and value short-haul.
6. Sustainability Commitments & Net-Zero Pressure
IAG/BA committed to:
- Net-zero by 2050
- 10% SAF by 2030
- This requires huge investment and regulatory coordination.
Challenges include:
- Limited SAF supply and high prices
- Slow global policy alignment
- Balancing sustainability with affordability
The Single Greatest Strategic Challenge
Synchronising fleet renewal, digital transformation, and operational reliability—while improving the customer experience in a highly competitive market.
BA must modernise fast enough to stay competitive, but not so fast that disruption, cost overruns, or service instability undermine performance.
This challenge is cross-functional and affects cost structure, customer trust, employee satisfaction, and long-term brand equity.