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BABS YEAR 1 Business Environment - Bernard Smales Business activity in context Submission date: Wednesday 11th March 2002 By William Aldridge - Group D Although parts of British Airways (BA) can be traced back as far as 1916 it wasn't until 1974 that the BA we know today was formed as a totally nationalised company. In February 1987 and after 8 years of planning Margaret Thatcher privatised BA. Over one million applications were received for shares in the airline, offered at 125 pence, making the flotation 11 times oversubscribed. Freed from the constraints of Government ownership, BA announced a merger with British Caledonian in July. During the next four years BA underwent significant re-branding, especially in the business market. They also introduced new Boeing planes and developed an international marketing campaign with United Airlines. Over these four years, through massive investment BA was becoming one of the strongest players in the market; it made...

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