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Financial trouble at British Airways could lead to strike
Anyone following the travel news knows the airlines are in trouble. Well, it appears some airlines may be in more trouble than expected. British Airways announced that in the first half of its 2009 financial year it suffered a loss of £292 million ($485 million). In the same period in 2008 it made a profit of £52 million ($86 million).This was more than a 13% loss of total revenue, with the company earning £4.1 billion ($6.8 billion) in the first half rather than the £4.75 billion ($7.9 billion) it earned in the same period in 2008. In a cost-saving measure, the company has announced it will cut 4,900 jobs by March 2010 and is considering a two-year pay freeze and a reduction of cabin crew from 15 crew members to 14 for long-haul flights.
What this flurry of numbers means to travelers like you and me is that there might be a strike at British Airways in December, just in time for the holiday season. Unite, the union for BA workers, is against the airline's cost-saving measures and is asking its members if they want to go on strike. The strike vote has been put off for some time as the union negotiated with the airline, and the result of the vote won't be known until December 14. Tune in here at Gadling for updates on this story.
Filed under: Europe, United Kingdom, Airlines, News
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