All BA staff and immediate family received air flights at 10 per cent of the
ticket price. BA received 10,000 applications for the 100 vacancies.
Privatization goes ahead
Once BA had survived the 1986 crisis, King’s objective of privatization was
becoming increasingly viable. However, there had been occasions when
BA was able to use the fear of a failed privatization to influence the
Government. For example, South Africa was subject to general trade sanc-
tions, but after a meeting between King and Margaret Thatcher it was
reported that ‘Lord King, Chairman, is understood to have told Mrs
Thatcher that any restrictions [on flights to South Africa] would have a
devastating impact on the State airline as well as opening the way for
others not supporting an international boycott to pick up business.’^9 It has
been reported that this meeting reinforced the Prime Minister’s position
not to introduce restrictions on South African air travel as part of the
general trade sanctions.
BA was finally privatized in February 1987, after British
Telecommunications and British Gas. The sell-off coincided with the stock
market boom and was 11 times oversubscribed. 95 per cent of BA employ-
ees bought shares, creating a stronger commitment to the company.
Privatization marked a major milestone in BA’s history and turnaround.
There was still much to do, with the constraints and protection of govern-
ment removed, but BA was increasingly being seen as a source of pride. In
June that year, Marshall received a knighthood.
Later in 1987 BA launched a drive for cabin crew. A job advertisement for
a recruitment officer illustrates BA’s approach to staff intake and stated:
BA have a reputation for excellence that is founded on our concern for
people. Our customers have always known this – that is why we are the
world’s favourite airline.It went on to state that BA received 2000 applications a week and so ‘the
care with which they are handled and the quality of our communications
with them represents a considerable challenge’.^10
Investment for growth
BA had successfully negotiated its way into the private sector and this
resulted in increased freedom to make, and raise finance for, a series of
investments:
●In 1987 BA took a 26 per cent stake in Galileo, an advanced computer reser-
vation system, which it has subsequently purchased completely.
Creating and implementing relationship marketing strategies 463