David Robertson, Business Correspondent
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Unite, Britain’s biggest union, has written to the chief executive of British Airways to demand a meeting after the airline began a far-reaching review of its costs.
Rumours of severe cost-cutting at BA has caused concern among the airline’s 14,000 cabin crew and wild rumours have surfaced including the possible outsourcing of the entire inflight workforce to a third party.
Like all airlines, BA is struggling with high oil prices, which hit a record $140 a barrel yesterday, and is seeking ways to reduce costs. Rapidly rising fuel bills have forced airlines in the United States to ground planes and lay off thousands of pilots and cabin crew. They are also charging passengers for services that were once free, such as checking in baggage and refreshments.
Unite, which represents about 11,000 BA employees, this week wrote to Willie Walsh, the airline’s chief executive, to seek a meeting over possible job and pay cuts at the flag carrier.
BA has admitted that a review is taking place but rejected the wildest rumours circulating among its cabin crew, including the possibility of outsourcing staff.
In a statement to cabin crew, Simon Talling-Smith, the director of inflight services, said: “British Airways, like all airlines, needs to make plans to survive the economic downturn. Inflight services has been asked to explore options to address costs and managers have been spending time on this.”
BA has not yet completed its review and the staff working on the project have not reported their proposals to Mr Walsh. However, a spokesman for BA said yesterday that Mr Walsh would do whatever he could to remove the union’s fears.
A spokeswoman for Unite said: “Our members are really worried by this cloak-and-dagger project going on within BA. We are asking for an urgent meeting to address these concerns.”
Cabin crew are already using militant language to describe the pending cuts and industrial action could be taken this year. One employee said: “Looks like we may be dusting off the donkey jackets yet again.”
BA headed off a strike by pilots last month over a new airline it has started in Europe. It also faced a walkout last year over sickness and pay that was averted at the last moment.
Doug McVitie, the managing director of Arran Aerospace, an aviation consultancy, said: “Rather than one large round of pay cuts, I expect BA will not give the unions something big to fight over and will instead make lots of smaller cuts to things like allowances and benefits.”
Aviation analysts are concerned that if BA follows a similar path to the US carriers in charging for refreshments, the airline could lose its reputation for high service, and with it the ability to charge premium fares.
BA’s fuel bill is expected to rise 20 per cent to £3 billion this year. The airline has passed on some of the increase in fuel prices to passengers in the form of surcharges. It has increased the surcharge 13 times in four years and long-haul passengers now pay an additional £218 return.
Meanwhile, several airlines, including Air France-KLM and Cathay Pacific, have agreed to pay US criminal fines totalling $504 million to settle charges of a conspiracy to fix air cargo rates. Air France-KLM will pay the largest fine of $350 million. BA was fined a total of £270 million last year by US and UK authorities after it admitted price fixing passenger and cargo fares.
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CAT, NYC
Why Why Why are you comparing the price of two flights 27 years apart and different class of cabin ?
The example you gave are incomparable !!!
chris, london, UK
I flew from Chennai to London on 6/29/08 and the service was very poor. The crew were rude and they did not provide my meal as requested. The crew blamed as system error which is not. Then our connecting flight BA069 to Philly was cancelled after 6 hrs delay. We landed at Philly after 22 hrs.
Meera Mahadevan, Pittsburgh, USA
It surprises me that BA have made such vast profits through the hard workk of all staff, where will their greed end?
Daniel, Irvine, uk
Having flown from Paris to Heathrow yesterday- l was shocked by their extremely poor service- flight had to taxi back- too many on plane( BA staff)not enough seats, then the service at T5 trying to find my luggage- seems like there is a lot for Walsh to sort out - it's a shambles.
g.mcgroarty, Wokingham , UK
I fly frequently with BA and the service is either very good or bad. But if they start charging for in-flight refreshments, luggage and no shopping, I for one am switching airline. There are many airlines still that provide very good service for the same cost of tickets. Sshould be appreciated.
Marketa, London,
To Lou of London... "Payrises = Redundencies..." We, as crew are not asking for a pay ride. We are asking to keep our current levels of pay and allowances. And, as for the comments about the levels of service onboard, Bergman Coffer of Belfast hits the nail on the head... Thank you Bergman.
Andy, London,
BA cabin crew are among the best in the business. I've flown to Antigua twice from Gatwick in the last year and have been more than impressed with the level of service. Bearing in mind the fiasco at T5, I'd say cabin crew are probably the best asset Willie Walsh has . . .
Philip Robinson, Camden, London
With the dreadful BA service of recent times, primarily down to lack of staff and training, can they actually afford to reduce costs further?
Rob, Brum, UK
Agmar Surku must have flown on a different airline to the BA I frequently fly on. I have always found BA's service to be exemplary, and the cabin crew to be always helpful. Hopefully BA remembers that in the end it is their people who produce the profits.
Arnold Ward, Weybridge, Surrey, UK
As a BA Crew member It makes me mad to see people say that our service is appalling. We are recognised a s being one of the best in the Indusrty and all BA staff continue, in very difficult circumstances to maintain that high standard. Sadly our management have cost us dearly in fines !!!
Mike, hove, uk
'...Unions only protect the select few who have the ability to blackmail either a company or the nation' - How true! This is just the start of things to come. Unions have waited since Maggie for a recession and weak Government against which to flex their muscles. Pay rises = redundancies!
Lou, London, UK
The service provided by BA staff is appalling at best. Perhaps if these workers did a better job their company would be winning clients from other companies instead of losing them by the dozen.
Agmar Surku, London,
In the last paragraph in your article these Airlines have been find for admitting price fixing passenger and cargo fares.These fines should be paid back to the passengers who purchased their tickets during this period for a start or given discount on future purchase of tickets.
Tadick Margach, Melbourne, Australia
BA still has some of the best flight crew in the business. On recent full flights between London and Manchester (it was cheaper to fly than to take the train!) the cheery cabin crew managed to serve free drinks, a sandwich, tea and coffee all in a 35 minute flight.
Bergman Coffey, Belfast , UK
Here we go into a recession and the unions are demanding protection from reality. Unite look like the union monsters of the 1970s and we all remember where that went. Unions only protect the select few who have the ability to blackmail either a company or the nation.
John, Manchester,
Just to update, I bought 2 club class tickets for a long-haul BA flight yesterday and my taxes and surcharges alone were $1497.84.
Now to flash back, in 1998 I was able to buy 2 long-haul, economy r/t tickets for a total of $600.20. At that time the economy seats had some space in between the rows.
Cat, NYC,