British Airways makes cut backs

Last updated at 08:50 26 March 2003


British Airways has faced up to the impact of the Iraqi conflict by cutting back on flights from Heathrow and accelerating its job reduction programme.

The airline said it planned to reduce capacity by 4% in April and May through reduced frequencies and the use of smaller aircraft.

And the remaining 3,000 jobs from a 13,000-strong manpower reduction programme will now be lost by the end of September rather than March 2004, BA added.

BA chief executive Rod Eddington said: 'There are clearly tough times ahead and experience has shown us that conserving cash is critical at these times.'

He went on: 'We have had the opportunity to plan our response on this occasion and go into this downturn a leaner, fitter company.'

The reduced transatlantic service will include the suspension until the end of May of one of the seven Heathrow to New York daily return services.

Also, one of two daily Heathrow-Chicago return services is cancelled until April 8, and extra services between Heathrow and Newark, Heathrow and Toronto and Heathrow and Houston in Texas are being delayed.

The changes represent a reduction of capacity on the North Atlantic routes of 6%. But BA did say that services between London to Tel Aviv in Israel, which were suspended earlier this month, will recommence on Friday (March 28).

However, services to Kuwait, also suspended earlier in March, will continue to be suspended, while London-Dubai services will continue on a reduced-frequency basis.

The changes represent a 26% reduction in BA's Middle East capacity. Mr Eddington went on: 'Before today's adjustments to our flying programme, we had already reduced our capacity by 20% in the last two years and reduced our manpower by 10,000.

'We are still assessing the impact on passenger demand, but the industry has been feeling the effects of war for some weeks now.

'However, we are in good shape with more than £2 million in cash and committed facilities available and we will survive this conflict.

'We will continue to review our capacity and forward bookings on a regular basis."

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