Heathrow Airport has been the main hub of British Airways since its formation; most activity has been based in the Terminal 5 complex since 2008.
British Airways (BA), the United Kingdom's national airline, was formed in 1974 with the merger of the two largest UK airlines, British Overseas Airways Corporation (BOAC) and British European Airways (BEA), and including also two smaller regional airlines, Cambrian Airways and Northeast Airlines. The merger was the completion of a consolidation process started in 1971 with the establishment of the British Airways Board, a body created by the British government to control the operations and finances of BOAC and BEA, which initially continued to exist as separate entities.
British Airways acquired the supersonic Concorde in 1976, operating it on transatlantic services. The same year it assumed sole operation of international flights to North America and Southeast Asia from rival British Caledonian. The formation of Virgin Atlantic in 1984 began a tense rivalry, which led to "one of the most bitter and protracted libel actions in aviation history".[1]
Under the leadership of Chairman Sir John King and CEO Colin Marshall, British Airways was privatised in February 1987, and in July of the same year, it launched the controversial takeover of British Caledonian. Following privatisation, British Airways entered a period of rapid growth, leading to the use of the slogan "The World's Favourite Airline", and dominated its domestic rivals during the early 1990s. Faced with increased competition and higher costs in the mid-1990s, CEO Bob Ayling led a restructuring effort, leading to trade union clashes; the carrier also invested in regional European airlines, courted international airline partnerships, and attempted a controversial ethnic livery rebranding campaign.
In the early 2000s, CEO Rod Eddington implemented further cost cuts, the retirement of Concorde, and the removal of ethnic liveries. Under Willie Walsh, who became CEO in 2005, British Airways faced a price-fixing scandal, moved its primary hub to Heathrow Terminal 5, and experienced threats of industrial action, leading to a strike in March 2010. On 8 April 2010, it was confirmed that British Airways and Iberia Airlines had agreed to a merger, forming the International Airlines Group, although BA continues to operate under its own brand.[2] The combined airline became the world's third-largest carrier (after Delta Air Lines and American Airlines) in terms of annual revenue.
Revenue Passenger-Kilometers, scheduled flights only, in millions
Year
Traffic
1975
25,463
1980
40,140
1985
41,103
1989
60,758
1995
93,860
2000
118,890
Source: IATA World Air Transport
^"BA dirty tricks against Virgin cost £3m". BBC News. 11 January 1993.
^Cite error: The named reference BA seals long-awaited Iberia deal was invoked but never defined (see the help page).
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