Edexcel A Level 2022 papers and
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Centre Number Candidate Number
Pearson Edexcel Level 3 GCE
Time 2 hours
Paper
reference 9BS0/02
Business
Advanced
PAPER 2: Business activities, decisions and strategy
You do not need any other materials. Total Marks
Instructions
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• centrethe
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• Answer the questions in the spaces provided
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• The total mark for this paper is 100.
• The marks for each question are shown in brackets
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SECTION A
Read the following extracts (A to D) before answering Question 1.
Write your answers in the spaces provided.
Extract A
Extract from easyJet plc’s annual report 2020
2020
£m
Non-current liabilities 2 748
Total equity 1 899
EasyJet plc’s gearing for 2019 was 45.67%
(Source: adapted from https://corporate.easyjet.com/~/media/Files/E/Easyjet/pdf/investors/
agm/agm-dec-2020/annual-report-2020.pdf )
Extract B
Why is the budget airline industry struggling?
In 2019, budget airline Flybmi and travel business Thomas Cook both collapsed.
“The aviation industry is struggling with rising costs,” says Loizos Heracleous, Professor
of Strategy at Warwick Business School. “Aeroplanes are expensive assets with few
alternative uses, which limits the ability of airlines to reduce their capacity during lean 5
periods. Airlines also have to deal with fluctuating expenses like fuel, which accounts for
around a third of total costs.”
Delayed flights, cramped seating, inconvenient flight times and poor service are common
customer complaints, which have damaged the reputation of many budget airlines.
Customers share their experiences on social media, resulting in widespread bad publicity. 10
Alex Brummer, City Editor for the Daily Mail, argues that there is a far greater problem
for budget airlines: “The rise of a new generation of budget airlines, challenging the
dominance of easyJet and Ryanair, means that there is huge overcapacity in the industry.
As the number of seats exceeds the number of travellers, prices have been pushed down”.
(Source: adapted from https://www.theweek.co.uk/105222/flybe-saved-but-why-is-the-
airline-industry-struggling)
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