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07/10/2009
Cuts Loom As Airline Losses Soar
Airlines are going into freefall - if today's double jobs threats are cleared for take off.
Unions representing British Airways cabin crew are planning an emergency meeting after the airline said it would cut 1,700 jobs and freeze pay.
Irish airline Aer Lingus said it would also cut jobs, with almost 800 jobs in jeopardy in an attempt to save €97m euros (£90m) by 2011.
Aer Lingus plans fewer flights, new working methods and new IT systems which they said today will cut 676 jobs, in addition to 100 staff who have already been told their contracts will end.
At BA, talks aimed at resolving the long-running dispute over how money can be saved at the loss-making airline have already been taking place for months.
The company has warned that it has to become more efficient to ensure its long-term survival.
But Unite claims that by unilaterally imposing the cuts, BA has put itself on a collision course with the unions.
Unite claims that BA is now 'holding a gun to the heads' of its cabin crew because it has decided to impose a package of cuts, even while the union says it was trying to seek a negotiated settlement.
A meeting of union convenors is planned, which could be held on Wednesday.
It will consider a range of responses, but the union says BA's behaviour has brought the prospect of a strike closer.
The airline has claimed that the unions had already offered a pay cut during the negotiations, and thousands of its cabin crew have also said they are prepared to work part-time or take voluntary redundancy.
BA is losing money and expects to make a big loss for a second consecutive year.
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.
In the year to the end of March, BA made a loss of £401m - its biggest loss since it was privatised in 1987.
(BMcC/KMcA)
Unions representing British Airways cabin crew are planning an emergency meeting after the airline said it would cut 1,700 jobs and freeze pay.
Irish airline Aer Lingus said it would also cut jobs, with almost 800 jobs in jeopardy in an attempt to save €97m euros (£90m) by 2011.
Aer Lingus plans fewer flights, new working methods and new IT systems which they said today will cut 676 jobs, in addition to 100 staff who have already been told their contracts will end.
At BA, talks aimed at resolving the long-running dispute over how money can be saved at the loss-making airline have already been taking place for months.
The company has warned that it has to become more efficient to ensure its long-term survival.
But Unite claims that by unilaterally imposing the cuts, BA has put itself on a collision course with the unions.
Unite claims that BA is now 'holding a gun to the heads' of its cabin crew because it has decided to impose a package of cuts, even while the union says it was trying to seek a negotiated settlement.
A meeting of union convenors is planned, which could be held on Wednesday.
It will consider a range of responses, but the union says BA's behaviour has brought the prospect of a strike closer.
The airline has claimed that the unions had already offered a pay cut during the negotiations, and thousands of its cabin crew have also said they are prepared to work part-time or take voluntary redundancy.
BA is losing money and expects to make a big loss for a second consecutive year.
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.
In the year to the end of March, BA made a loss of £401m - its biggest loss since it was privatised in 1987.
(BMcC/KMcA)
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