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British Airways is to make up to 12,000 staff redundant in response to the coronavirus pandemic.
The airline has cut 94 per cent of its flights and its parent company, IAG, lost almost half a billion pounds in the first three months of 2019, with much heavier losses expected.
As a result, British Airways has begun consulting with unions representing pilots, cabin crew and ground-based staff over redundancies for almost 30 per cent of employees.
The scale of the proposed redundancies indicate that British Airways intends to trim its flying schedule by one-quarter.
Cuts are likely to be more substantial at Gatwick than at BA’s main base, Heathrow.
Alex Cruz, BA’s chief executive and chairman, said: “Yesterday, British Airways flew just a handful of aircraft out of Heathrow. On a normal day we would fly more than 300. What we are facing as an airline, like so many other businesses up and down the country, is that there is no ‘normal’ any longer.
“Our very limited flying schedule means that revenues are not coming into our business.
“In the last few weeks, the outlook for the aviation industry has worsened further and we must take action now. We are a strong, well-managed business that has faced into, and overcome, many crises in our 100 year history. We must overcome this crisis ourselves, too.
“We do not know when countries will reopen their borders or when the lockdowns will lift, and so we have to reimagine and reshape our airline and create a new future for our people, our customers and the destinations we serve.
“We have informed the government and the trade unions of our proposals to consult over a number of changes, including possible reductions in headcount.”
British Airways has furloughed nearly 23,000 staff under the government’s Job Retention Scheme.
IAG, which includes Aer Lingus, Iberia of Spain and the low-cost carrier, Vueling, said: “Recovery to the level of passenger demand in 2019 is expected to take several years, necessitating group-wide restructuring measures.”
Mr Cruz said: “There is no government bailout standing by for BA and we cannot expect the taxpayer to offset salaries indefinitely.
“Any money we borrow now will only be short term and will not address the longer term challenges we will face.”
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Staff react outside Salford Royal Hospital in Manchester during a minute’s silence to pay tribute to the NHS staff and key workers who have died during the coronavirus outbreak
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Staff inside Camberwell bus depot in London, during a minute’s silence
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NHS staff at the Mater hospital in Belfast, during a minute’s silence to pay tribute to the NHS staff and key workers who have died during the coronavirus outbreak.
PA
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Shoppers observe a minute’s silence in Tescos in Shoreham
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Firefighters outside Godstone fire station
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6/30 Salford Royal Hospital
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7/30 Salford Royal Hospital
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Hospital workers take part in a protest calling on the British government to provide PPE across Britain for all workers in care, the NHS and other vital public services after a nationwide minute’s silence at University College Hospital in London
AP
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A school children’s poster hanging outside Glenfield Hospital during a minute’s silence
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A man holds a placard that reads “People’s health before profit” outside St Thomas hospital
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Staff members applaud outside the Royal Derby Hospital, following a minute’s silence
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Cabinet Secretary Mark Sedwill, Prime minister Boris Johnson and Chancellor of the Exchequer Rishi Sunak, stand inside 10 Downing Street, London, to observe a minutes silence in tribute to the NHS staff and key workers who have died during the coronavirus outbreak
PA
13/30 University College Hospital, London
Hospital workers hold placards with the names of their colleagues who have died from coronavirus as they take part in a protest calling on the British government to provide PPE
AP
14/30
Staff at Waterloo Station in London, stand to observe a minute’s silence, to pay tribute to NHS and key workers who have died with coronavirus
AP
15/30
Medical staff at the Louisa Jordan hospital stand during a UK wide minutes silence to commemorate the key workers who have died with coronavirus in Glasgow
Getty
16/30 London
An NHS worker observes a minute’s silence at Chelsea and Westminster Hospital
Reuters
17/30 Chelsea and Westminster Hospital in London
AFP via Getty
18/30 Belfast, Northern Ireland
NHS staff observe a minutes silence at Mater Infirmorum Hospital
Reuters
19/30 Plymouth
NHS workers hold a minute’s silence outside the main entrance of Derriford Hospital
Getty
20/30
NHS Frimley Park Hospital staff at the A&E department observe a minute’s silence
Getty
21/30 Mater Infirmorum Hospital
People applaud after a minutes silence in honour of key workers
Reuters
22/30 Waterloo Station, London
AP
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Wreaths laid outside Sheffield town hall
PA
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A group of trade unionists and supporters standing outside Sheffield town hall
PA
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First Minister Nicola Sturgeon stands outside St Andrew’s House in Edinburgh to observe a minute’s silence in tribute to the NHS staff and key workers who have died during the coronavirus outbreak
PA
26/30
Staff stand outside the Royal Derby Hospital, during a minutes silence
PA
27/30 London
Police officers observe a minutes silence at Guy’s Hospital
Reuters
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A woman standing outside Sheffield town hall
PA
29/30 Royal Derby Hospital
PA
30/30 Leicester,
NHS workers during a minute’s silence outside Glenfield Hospital
Getty
1/30
Staff react outside Salford Royal Hospital in Manchester during a minute’s silence to pay tribute to the NHS staff and key workers who have died during the coronavirus outbreak
PA
2/30
Staff inside Camberwell bus depot in London, during a minute’s silence
PA
3/30
NHS staff at the Mater hospital in Belfast, during a minute’s silence to pay tribute to the NHS staff and key workers who have died during the coronavirus outbreak.
PA
4/30
Shoppers observe a minute’s silence in Tescos in Shoreham
Getty
5/30
Firefighters outside Godstone fire station
PA
6/30 Salford Royal Hospital
Getty
7/30 Salford Royal Hospital
PA
8/30
Hospital workers take part in a protest calling on the British government to provide PPE across Britain for all workers in care, the NHS and other vital public services after a nationwide minute’s silence at University College Hospital in London
AP
9/30
A school children’s poster hanging outside Glenfield Hospital during a minute’s silence
Getty
10/30
A man holds a placard that reads “People’s health before profit” outside St Thomas hospital
Getty
11/30
Staff members applaud outside the Royal Derby Hospital, following a minute’s silence
PA
12/30
Cabinet Secretary Mark Sedwill, Prime minister Boris Johnson and Chancellor of the Exchequer Rishi Sunak, stand inside 10 Downing Street, London, to observe a minutes silence in tribute to the NHS staff and key workers who have died during the coronavirus outbreak
PA
13/30 University College Hospital, London
Hospital workers hold placards with the names of their colleagues who have died from coronavirus as they take part in a protest calling on the British government to provide PPE
AP
14/30
Staff at Waterloo Station in London, stand to observe a minute’s silence, to pay tribute to NHS and key workers who have died with coronavirus
AP
15/30
Medical staff at the Louisa Jordan hospital stand during a UK wide minutes silence to commemorate the key workers who have died with coronavirus in Glasgow
Getty
16/30 London
An NHS worker observes a minute’s silence at Chelsea and Westminster Hospital
Reuters
17/30 Chelsea and Westminster Hospital in London
AFP via Getty
18/30 Belfast, Northern Ireland
NHS staff observe a minutes silence at Mater Infirmorum Hospital
Reuters
19/30 Plymouth
NHS workers hold a minute’s silence outside the main entrance of Derriford Hospital
Getty
20/30
NHS Frimley Park Hospital staff at the A&E department observe a minute’s silence
Getty
21/30 Mater Infirmorum Hospital
People applaud after a minutes silence in honour of key workers
Reuters
22/30 Waterloo Station, London
AP
23/30
Wreaths laid outside Sheffield town hall
PA
24/30
A group of trade unionists and supporters standing outside Sheffield town hall
PA
25/30
First Minister Nicola Sturgeon stands outside St Andrew’s House in Edinburgh to observe a minute’s silence in tribute to the NHS staff and key workers who have died during the coronavirus outbreak
PA
26/30
Staff stand outside the Royal Derby Hospital, during a minutes silence
PA
27/30 London
Police officers observe a minutes silence at Guy’s Hospital
Reuters
28/30
A woman standing outside Sheffield town hall
PA
29/30 Royal Derby Hospital
PA
30/30 Leicester,
NHS workers during a minute’s silence outside Glenfield Hospital
Getty
The scale of the proposed redundancies indicate that British Airways intends to trim its flying schedule by one-quarter.
Gatwick airport is likely to be much harder hit than BA’s main base, Heathrow.
Profitability at the Sussex airport has always been poorer than at Heathrow. In addition, the airline will be keen to retain its slot portfolio at Heathrow, where it currently operates just over half the total take offs and landings.
BA’s fleet will also shrink significantly. The carrier has already flown some of its ageing Boeing 747s to be scrapped, and the future of its 12 Airbus A380 “SuperJumbo” aircraft is uncertain.
The British Airline Pilots’ Association (Balpa) called BA’s announcement “a bolt out of the blue”.
The pilots’ union’s general secretary, Brian Strutton said: “BA pilots and all staff are devastated by the announcement of up to 12,000 possible job losses in British Airways.
“This has come as a bolt out of the blue from an airline that said it was wealthy enough to weather the Covid storm and declined any government support.
“Balpa does not accept that a case has been made for these job losses and we will be fighting to save every single one.”
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