Jobs to go at BA amid losses

British Airways

British Airways has reported a first-half loss for the first time ever, causing them to cut jobs. For BA, it is its worst ever interim loss since its privatisation.

The company suffered a loss before tax of GBP£292 million for the six months to the end of September, compared with profits of GBP£52 million a year earlier. As a result of this, the company will cut 1,200 jobs, which means by March 2010, the company will have cut a total of 4,900 jobs, the BBC reported.

BA had previously announced plans to cut its workforce by 3,700 by next March, including around 2,000 cabin crew, 1000 check-in and other customer facing staff and the rest made up of managers, pilots and admin workers. BA has already cut 1,900 global jobs in their planned cuts, by natural wastage, voluntary redundancies and reduced overtime.

Revenue

Normally, the first half of BA's financial year is strong as it covers the summer holiday season, yet BA have said that their revenue over the six-month period was down by 13.7 percent.

"Aviation remains in recession with revenue likely to be GBP£1 billion lower this year," said BA chief executive Willie Walsh.

He told the BBC that this had been the "most difficult year in the history of the aviation industry."

"All airlines are facing the same pressure. Operational changes at British Airways are absolutely necessary to improve the performance of the business," he said.

He went on to say, "Our costs are some GBP£400 million lower and manpower has been cut by 1,900 through reduced overtime, increased part-time working and targeted voluntary redundancy. Total liquidity of some GBP£4 billion puts us in a strong position."

Unions

BA is currently in a battle with unions over changes to jobs and pay. The company wants to cut the number of cabin crew staff on its long-haul flights from 15 to 14, with the change coming into effect on 16 November.

The company is also proposing a two-year pay freeze. It says the changes are essential to its survival.

On Thursday, the Unite union said it would continue with a strike ballot of British Airways cabin staff over the changes, despite its legal challenge to the new working patterns being delayed. Unite had sought a High Court injunction to have the changes blocked, but the full trial will now not go ahead until 1 February.

Unite said staff would "unwillingly" work the new schedules from this month but it would still ballot for a strike. The result of the strike vote will be known on 14 December.

Related News:

British Midland - Mobile Phone - BMI - Air Travel Industry ... |Changes at Aer Lingus |Travelling in style

Like this article? Get the RSS feed: