British Airways

The corporate lineage of British Airways goes back to five airlines established in the United Kingdom between 1916 and 1922. The first of these, Aircraft Transport & Travel (AT&T), began the world's first daily international commercial air service from London to Paris on 25 August 1919. The five airlines merged in 1924 and several other airlines were established and merged during the 1930s and 1940s. The mergers and acquisitions resulted in two state-owned airlines, the British Overseas Airways Corporation (BOAC), formed in 1939, and British European Airways (BEA), formed in 1947.

Proposals to establish a single British airline, combining the assets of the BOAC and BEA, were first raised in 1953 as a result of difficulties in attempts by BOAC and BEA to negotiate air rights through the British colony of Cyprus. Increasingly BOAC was protesting that BEA was using its subsidiary Cyprus Airways to circumvent an agreement that BEA would not fly routes further east than Cyprus, particularly to the increasingly important oil regions in the Middle East. The chairman of BOAC, Miles Thomas, was in favour of a merger as a potential solution to this disagreement and had backing for the idea from the Chancellor of the Exchequer at the time, Rab Butler. However, opposition from the Treasury blocked the proposal.

Consequently, it was only following the recommendations of the 1969 Edwards Report that a new British Airways Board, managing both BEA and BOAC, and the two regional British airlines Cambrian Airways based at Cardiff, and Northeast Airlines based at Newcastle upon Tyne, was constituted on 1 April 1972. Although each airline's branding was maintained initially, two years later the British Airways Board unified its branding, effectively establishing British Airways as an airline on 31 March 1974.

Following two years of fierce competition with British Caledonian, the second-largest airline in the United Kingdom at the time, the Government changed its aviation policy in 1976 so that the two carriers would no longer compete on long-haul routes.

British Airways and Air France operated the Concorde, the world's first supersonic aircraft that first carried passengers on 21 January 1976 from London Heathrow to Bahrain. Services to the United States began on 24 May 1976 with a flight to Washington Dulles, and flights to New York JFK followed on 22 September 1977. Service to Singapore was established in co-operation with Singapore Airlines as a continuation of the flight to Bahrain. Following the crash of Air France Flight 4590 and the 11 September attacks, British Airways decided to cease Concorde operations in 2003 after 27 years of service. The final commercial Concorde flight was BA002 from New York-JFK to London-Heathrow on 24 October 2003.

In 1981 the airline was instructed to prepare for privatisation by the Thatcher government. Sir John King, later Lord King, was appointed chairman, charged with bringing the airline back into profitability. While many other large airlines struggled, King was credited with transforming British Airways into one of the most profitable air carriers in the world. In December 1983, British Airways plc was formed with the government holding all of the shares. BA was privatised and was floated on the London Stock Exchange in February 1987. British Airways effected the takeover of the UK's "second" airline, British Caledonian, in July of that same year.

The formation of Richard Branson's Virgin Atlantic in 1984 created a competitor for BA. The intense rivalry between British Airways and Virgin Atlantic culminated in the former being sued for libel in 1993, arising from claims and counterclaims over a dirty tricks campaign against Virgin. This campaign included allegations of poaching Virgin Atlantic customers, tampering with private files belonging to Virgin, and undermining Virgin's financial reputation in the city. As a result of the case BA management apologised "unreservedly", and the company agreed to pay £110,000 in damages to Virgin, £500,000 to Branson personally and £3 million legal costs. Lord King stepped down as chairman in 1993 and was replaced by his deputy, Colin Marshall, while Bob Ayling took over as CEO. Virgin filed a separate action in the U.S. that same year regarding BA's domination of the trans-Atlantic routes, but it was thrown out in 1999.

In 1992 British Airways expanded through the acquisition of the financially troubled Dan-Air, giving BA a much larger presence at Gatwick Airport. In January 1993 it purchased a 49% shareholding in TAT European Airlines.

British Asia Airways was formed in March 1993 to operate between London and Taipei. That same month BA purchased a 25% stake in Qantas and, with the acquisition of Brymon Airways in May, formed British Airways Citiexpress (later BA Connect).

In 1996 BA took up an option to purchase the remaining 51% in TAT European Airlines and acquired a $67 stake in Air Liberte.

In September 1998, British Airways, along with American Airlines, Canadian Airlines, Cathay Pacific and Qantas, formed the Oneworld airline alliance.