It also can reduce initial and refresher training for new and experienced agents. In recent years, many airlines have out sourced functions that are not core to their business and on which they are unable to build competitive advantage. Factors affecting competition between budget airlines……………………………. The paper focuses to analyze how change in technology can influence the policies and decision making of British Airways. This results in a great expense to airliners such as BA, especially as more and more independent airliners are penetrating the market. 1. The airline has at all the times evaded, disdained and vogue everything that may increase costs and makes difficult the basic travel plan. PESTLE stands for Political, Economic Socio-Cultural, Technological, Legal and Environmental. Both economy and premium travelling declined. Course: Strategic Management The Domestic Airlines industry, Aviation industry is one among the most important industries of any country because of its economic and social viability. Weaknesses have a harmful effect on the firm. Internal and External Factors Affecting Uk as a Destination. BA now forced to constantly developing in order to stay ahead of other rival airliners. It breaks the barrier of distance and time. This paper discusses the external economic factors affecting the strategic decision of airline industry, leisure and business travellers in various countries across the globe. Organisational change means any alternation in people, structure or technology. The “Airbus A380” is able to carry a third more passengers than its nearest rival, the Boeing 747 Jumbo Jet. For those who perform the actual labour of production, the long-term development is for corporate technical training to replace the public educational system. Economic factors refers to macro- environment factors such as exchange rates, business cycles and differential economic growth rates around the world which can have direct impact the overall objectives and strategy of Ryanair which is to provide lowest fares to their customers and hence stay as the cost leader in the long run. 4.2.2 In 2004, when the first budget airline started its operation in Singapore, many were unwilling to travel on them as they were worry about the low cost carrier safety. These factors made it difficult to generate profits. BA can take initiatives in order to terminate the vulnerabilities of infrastructure include limited availability of terminal slots. 6. Twenty-five years later, the Internet endangered to have a similar impact on the computer and communications industries, the direct sales industry and, perhaps by the next millennium, the very nature of work. The CMIS provide maximum in flight entertainment for the travellers. BA can add more functionality, especially in customer service areas ranging from check-in desks upwards. British Airways can produce revenue on an origin-destination basis, while their costs are generated on a flight segment basis, which makes for a very complicated business structure. Veitor and Veytsman (2007) mentioned that, out sourcing of firm’s operation is another response to change in technology. SWOT analysis of the airline industry. The airline industry is infamous for difficulties in maintaining profit margins amid a number of internal and external factors that consistently threaten to throw them off balance. Instead, cabins continued to have traditional screens. Therefore, by using computer reservation system, British Airways is merging itself towards the age of modern technology. Online services of British Airways can configured to include specialist application such as content management in order to make the site easier to navigate and use. 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