British Airways announces measures

British Airways today announced a series of measures to address the anticipated reduction in demand from passengers following the tragic events in the USA last week.

Following a detailed review of the business, the measures include:

A reduction in flying of 10 per cent, in addition to previously announced reductions.

The withdrawal of 20 aircraft from the British Airways operation.

The loss of 7,000 jobs.

The impact of these changes on the British Airways’ network and schedule will be announced in due course.

Chief Executive Rod Eddington said today:”We face exceptional conditions which have forced us to take very tough decisions.

“The tragic events in the USA will undoubtedly have a significant impact on the demand for air travel in the months ahead. We have taken the necessary steps to curtail expenditure and sadly to cut our workforce. Wherever possible we will try to achieve these cuts by voluntary means. We are currently in consultation with our unions.

“Despite the difficult market, our balance sheet remains strong and we are a well-established business. However, we must act now to protect British Airways for the long term.”

A reduction of 10 aircraft from the long-haul fleet will be achieved initially by advancing the retirement of the Boeing 747-200 fleet from Spring 2002 and then by withdrawing other wide-bodied aircraft. Six Boeing 767s and four narrow-bodied aircraft will be withdrawn from the short-haul operation.