British Airways Starts Talks to Make Redundant 12,000 Staff
April 28 2020 - 2:04PM
Dow Jones News
By Benjamin Katz
LONDON--British Airways has started the process of laying off
more than a quarter of its staff as the carrier prepares itself for
a lack of demand from the new coronavirus pandemic that it expects
to last for several years.
The airline has informed its unions of plans to make reductions
of as many as 12,000 of its 45,000 employees, the carrier said in a
statement on Tuesday. The airline has previously furloughed more
than 22,000 staff, taking advantage of a government aid plan.
The airline's parent company, International Consolidated
Airlines Group SA, also said Tuesday that it had posted an
operating loss of 535 million euros ($579 million) in the first
three months of the year, compared to a profit of EUR135 million
last year. Losses next quarter will be "significantly worse," it
said.
In addition to the staff cuts, British Airways is renegotiating
contracts with its suppliers, including reassessing its current and
future fleet plan, Chief Executive Alex Cruz said in a letter to
staff. The executive added that no government bailout is "standing
by."
"Yesterday, British Airways flew just a handful of aircraft out
of Heathrow. On a normal day we would fly more than 300," Mr. Cruz
said to staff. "Our very limited flying schedule means that
revenues are not coming into our business."
Write to Benjamin Katz at benjamin.katz@wsj.com
(END) Dow Jones Newswires
April 28, 2020 13:49 ET (17:49 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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