NASA Logo

NTRS

NTRS - NASA Technical Reports Server

Back to Results
The Role of Capital Productivity in British Airways' Financial RecoveryBritish Airways (BA) was privatized in 1987, but its financial recovery occurred a number of years earlier, This recovery was sustained throughout the early 1990s economic recession, a period when few major airlines were operating profitably. This paper examines the role of productivity developments at British Airways from the early 1980s through 1996. The emphasis is on capital productivity and investment, but changes in capital intensity and labour productivity are also evaluated. Various measures are considered for both capital and labour productivity: outputs are measured in available tonne-kms (ATKs) and revenue tonne-kms (RTKs), with the former preferred over the latter two measures, after adjustment for work performed by BA for others. Capital inputs are measured in equivalent lease costs adjusted to constant prices with a different treatment of flight and ground equipment or assets. Labour inputs are derived from total payroll costs deflated by a UK wage price index. The airline made considerable capital investments over the period and at the same time went through two major processes of labour restructuring. This resulted in a gradual increase in capital intensity, relative high labour productivity growth, but poor capital productivity performance, However, capital investment played an important role in the airline's sustained labour and total factor productivity over the whole period.
Document ID
20000046628
Acquisition Source
Headquarters
Document Type
Reprint (Version printed in journal)
Authors
Morrell, Peter
(Cranfield Univ. Cranfield, United Kingdom)
Date Acquired
August 19, 2013
Publication Date
January 1, 1999
Publication Information
Publication: Journal of Air Transportation World Wide
Publisher: Aviation Inst., Univ. of Nebraska
Volume: 4
Issue: 2
ISSN: 1093-8826
Subject Category
Air Transportation And Safety
Distribution Limits
Public
Copyright
Other

Available Downloads

There are no available downloads for this record.
No Preview Available