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British Airways to cut 1,700 jobs | British Airways to cut 1,700 jobs |
(40 minutes later) | |
British Airways has announced that is to cut 1,700 jobs and introduce a two-year pay freeze for cabin crew as it looks to cut costs during the downturn. | British Airways has announced that is to cut 1,700 jobs and introduce a two-year pay freeze for cabin crew as it looks to cut costs during the downturn. |
It also announced that it would press ahead with plans to recruit new staff on different terms and conditions to current employees. | It also announced that it would press ahead with plans to recruit new staff on different terms and conditions to current employees. |
The airline is losing money and expects to make a big loss for the second consecutive year. | The airline is losing money and expects to make a big loss for the second consecutive year. |
Global airlines are struggling with a fall in passenger numbers. | Global airlines are struggling with a fall in passenger numbers. |
'Ensuring survival' | 'Ensuring survival' |
"Revenues are down, so we must reduce costs and restore profitability," BA said. | "Revenues are down, so we must reduce costs and restore profitability," BA said. |
AIRLINE CHARGES From Wednesday, British Airways passengers will have to pay a fee of up to £60 to choose their seats more than 24 hours before take-off Find out what airlines charge for | |
"Thousands of staff across the airline have already made contributions to the cost reduction programme." | "Thousands of staff across the airline have already made contributions to the cost reduction programme." |
The airline said the job cuts would involve 1,000 cabin crew taking voluntary redundancy and a further 3,000 choosing to go part-time, and would take effect from the end of November. | The airline said the job cuts would involve 1,000 cabin crew taking voluntary redundancy and a further 3,000 choosing to go part-time, and would take effect from the end of November. |
"Without changes, we will continue to lose more money with every month that passes. It is essential we make ourselves more efficient if we are to ensure our long-term survival," BA said. | "Without changes, we will continue to lose more money with every month that passes. It is essential we make ourselves more efficient if we are to ensure our long-term survival," BA said. |
The Unite union criticised the cuts and warned BA staff in an email that "you can rest assured it won't be the last [job cuts]." | The Unite union criticised the cuts and warned BA staff in an email that "you can rest assured it won't be the last [job cuts]." |
Record loss | Record loss |
The airline has been in negotiations with unions about the best way to cut staff costs. | The airline has been in negotiations with unions about the best way to cut staff costs. |
This summer, it asked employees to volunteer to work for free for one month, to take unpaid leave or to work part-time. | This summer, it asked employees to volunteer to work for free for one month, to take unpaid leave or to work part-time. |
It has also scrapped sandwiches on short-haul flights and is introducing charges on pre-booked seats. | It has also scrapped sandwiches on short-haul flights and is introducing charges on pre-booked seats. |
In the year to the end of March, BA made a loss of £401m - its biggest loss since it was privatised in 1987. | In the year to the end of March, BA made a loss of £401m - its biggest loss since it was privatised in 1987. |
Earlier this month, the International Air Transport Association (Iata) increased its forecast for losses across the whole industry to $11bn (£6.9bn). | Earlier this month, the International Air Transport Association (Iata) increased its forecast for losses across the whole industry to $11bn (£6.9bn). |