BA flies into record net loss for 2nd year
By Jane Wardell |
May 22, 2010, Saturday
|
Print Edition
Print Edition
BRITISH Airways Plc posted a record net loss for the second consecutive year yesterday -- giving Chief Executive Willie Walsh a platform to accuse striking cabin crews of being out of touch with reality.
The full year net loss of 425 million pounds (US$611 million), compared with a 358 million pound loss the previous year, was the largest since the former national airline was privatized in 1987. Revenue dropped 11 percent to 7.99 billion pounds from 8.99 billion pounds.
The earnings report was slightly better than analysts had feared and BA was more upbeat about the current financial year, but Walsh said it underscored his argument that staff need to accept changes to pay and working conditions for the airline -- and their jobs -- to survive.
The union representing cabin crews, which are due to walk off the job next Monday for a series of strikes totaling 15 days, accused Walsh of "macho" posturing and urged him to back down from a hardline stance that has revoked staff travel perks and taken disciplinary action against striking workers.
Walsh has repeatedly warned the Unite union that the changes at the center of its dispute with the airline, including fewer staff on long haul flights, are necessary to cope with reduced demand for air travel in the wake of the global financial crisis.
"Returning the business to profitability requires permanent change across the company and it's disappointing that our cabin crew union fails to recognize that," he said. "The dispute ... should be put behind us as quickly as possible for everybody that works at BA."
Unite joint general secretary Derek Simpson said that union leaders were willing to negotiate with BA over the weekend to avoid the strike beginning on Monday.
"We don't want this dispute," Simpson said. "This has to be resolved by negotiated settlement."
However, there has been little sign that BA and Unite, which represents about 90 percent of the carrier's 12,000 cabin crew staff, will be able to reach a deal in the dispute.
Talks have become increasingly difficult since Unite forged ahead with a financially damaging walkout in March and BA retaliated by revoking the travel perks and taking disciplinary action against some 50 workers.
The full year net loss of 425 million pounds (US$611 million), compared with a 358 million pound loss the previous year, was the largest since the former national airline was privatized in 1987. Revenue dropped 11 percent to 7.99 billion pounds from 8.99 billion pounds.
The earnings report was slightly better than analysts had feared and BA was more upbeat about the current financial year, but Walsh said it underscored his argument that staff need to accept changes to pay and working conditions for the airline -- and their jobs -- to survive.
The union representing cabin crews, which are due to walk off the job next Monday for a series of strikes totaling 15 days, accused Walsh of "macho" posturing and urged him to back down from a hardline stance that has revoked staff travel perks and taken disciplinary action against striking workers.
Walsh has repeatedly warned the Unite union that the changes at the center of its dispute with the airline, including fewer staff on long haul flights, are necessary to cope with reduced demand for air travel in the wake of the global financial crisis.
"Returning the business to profitability requires permanent change across the company and it's disappointing that our cabin crew union fails to recognize that," he said. "The dispute ... should be put behind us as quickly as possible for everybody that works at BA."
Unite joint general secretary Derek Simpson said that union leaders were willing to negotiate with BA over the weekend to avoid the strike beginning on Monday.
"We don't want this dispute," Simpson said. "This has to be resolved by negotiated settlement."
However, there has been little sign that BA and Unite, which represents about 90 percent of the carrier's 12,000 cabin crew staff, will be able to reach a deal in the dispute.
Talks have become increasingly difficult since Unite forged ahead with a financially damaging walkout in March and BA retaliated by revoking the travel perks and taking disciplinary action against some 50 workers.
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