Moderators: jsumali2, richierich, ua900, PanAm_DC10, hOMSaR

 
Breathe
Topic Author
Posts: 684
Joined: Sat Mar 18, 2017 8:06 pm

British Airways boss tells staff jobs will go

Fri Mar 13, 2020 9:25 pm

Some more grim news, this time for BA staff.

I really hate to say this, but how much do folk think that some airline managements will be looking at the Covid-19 crisis as an "opportunity" or smokescreen to trim down their staff count?

Either way tough times ahead for everyone affected by the crisis, regardless of what people do in their lives.

https://www.bbc.co.uk/news/business-51875271

British Airways is to ground flights 'like never before' and lay off staff in response to the coronavirus.

In a memo to staff titled "The Survival of British Airways", boss Alex Cruz warned that job cuts could be "short term, perhaps long term".

The airline industry was facing a "crisis of global proportions" that was worse than that caused by the SARS virus or 9/11.

Meanwhile, Ryanair told staff they may be forced to take leave from Monday.

An internal memo to Ryanair staff, seen by the BBC, said crew may be allocated to take unpaid leave due to cancelled flights and schedule changes.

BA boss Mr Cruz said: "We can no longer sustain our current level of employment and jobs would be lost - perhaps for a short term, perhaps longer term."

The airline is in talks with unions but gave no further details about the scale of the likely job losses in the video message transcript seen by the BBC.

The airline boss said that British Airways, which is owned by FTSE 100 company IAG, was suspending routes and parking planes in a way they had "never had to do before".

British Airways would "continue to do our best for customers and offer them as much flexibility as we can", Mr Cruz said in the video.
 
Amsterdam
Posts: 449
Joined: Thu Mar 17, 2011 12:52 am

Re: British Airways boss tells staff jobs will go

Fri Mar 13, 2020 9:30 pm

This is not an opportunity to do anything.
The cash flows will dry up. Most, maybe all airlines in Europe are going to need state help to survive. KLM just announced up to 2000 immediate job cuts and the boeing 747’s will now leave the fleet within 2 weeks, just to name a few measures. But if more states close their airspaces things will get worse.
 
Nickd92
Posts: 103
Joined: Mon Aug 24, 2015 7:01 pm

Re: British Airways boss tells staff jobs will go

Fri Mar 13, 2020 9:48 pm

Amsterdam wrote:
This is not an opportunity to do anything.
The cash flows will dry up. Most, maybe all airlines in Europe are going to need state help to survive. KLM just announced up to 2000 immediate job cuts and the boeing 747’s will now leave the fleet within 2 weeks, just to name a few measures. But if more states close their airspaces things will get worse.


It's no secret that their Mixed Fleet cabin crew team is over-crewed.

However BA are now under very much immense pressure. If Trump goes ahead and adds UK to the list then BA looses the majority of its route network overnight.

As for other things - i'm sorry but how can banks expect loan payments etc? They are going to struggle to get rid of their assets. Surely it's better to allow the company to continue trading, provide additional loan, with the knowledge that a profitable company, such as IAG will be able to repay this PROVIDING the markets bounces back which it will. I read something about banks etc and they said the same about all businesses etc.
 
User avatar
JannEejit
Posts: 1662
Joined: Sat Jun 18, 2016 4:04 pm

Re: British Airways boss tells staff jobs will go

Fri Mar 13, 2020 10:11 pm

Will BA also implement an early draw down of fleet on the retirement list ?
 
BA777FO
Posts: 580
Joined: Sun Apr 22, 2018 2:58 pm

Re: British Airways boss tells staff jobs will go

Fri Mar 13, 2020 10:36 pm

BA/IAG is in one of the strongest positions of any airline to ride this out. The balance sheet is sound, prior to this outbreak it had one of the best operating margins in the industry. In addition, chopping capacity in aircraft terms is relatively straight forward - the retirement of the 747 fleet can easily be sped up. Deliveries of 787-10s and A350s can be deferred. Most of BA's capex this year relates to the Club Suite roll out which can also be deferred.

On the crew front, prior to this BA was undercrewed for pilots and has had record years of recruitment for the past few years. With the grounding of aircraft (as yet numbers unannounced but likely to change as various countries close their borders) there's still significant unmet demand for part time working that could be granted. Any redundancies, if needed, could probably be met through voluntary means if the package offered is decent enough.

For cabin crew, Mixed Fleet being overcrewed isn't a huge issue - the airline will want Worldwide and Eurofleet crew to take voluntary redundancy and backfill that with Mixed Fleet who are less than half the cost to employ.

As for non front line staff it's difficult to say. This could all get very nasty very quickly especially if the US extends the travel ban to the UK, which seems likely. But BA is well placed to ride this out as other competitors could well go out of business fairly soon. BA may be unfavourably hedged with the current oil price but going forward they'll still receive a large windfall from a big reduction in the oil price offsetting the reduction in revenue. Short haul loads aren't great at the moment, but most longhaul flights are still holding up okay, especially from LGW. BA will ride this out, some others will certainly struggle a lot more.
 
mattyfitzg
Posts: 263
Joined: Sun Sep 04, 2016 4:50 pm

Re: British Airways boss tells staff jobs will go

Fri Mar 13, 2020 10:50 pm

BA Cityflyer are seeing relatively “healthy” loads too. By healthy I mean about the 55/60 mark on most flights which of course isn’t full, but not empty. The weekends MAN sectors seem to be operating a capacity though as do all of the leisure flights from LCY.
Obviously a few exceptions (one of the EDIs has 9 pax today) but the majority seem to be OK.
 
psimpson
Posts: 314
Joined: Fri May 26, 2006 9:38 pm

Re: British Airways boss tells staff jobs will go

Sat Mar 14, 2020 12:31 am

BA Cityflyer have sent some of their embraer aircrafts into storage, plus the LCY-SNN-JFK-LCY route will be suspended from the end of the month until October i believe.
Tough times all round in the aviation industry.
 
mattyfitzg
Posts: 263
Joined: Sun Sep 04, 2016 4:50 pm

Re: British Airways boss tells staff jobs will go

Sat Mar 14, 2020 12:34 am

psimpson wrote:
BA Cityflyer have sent some of their embraer aircrafts into storage, plus the LCY-SNN-JFK-LCY route will be suspended from the end of the month until October i believe.
Tough times all round in the aviation industry.


Yep, they’re in Norwich.
 
716131
Posts: 892
Joined: Thu Mar 16, 2017 11:51 am

Re: British Airways boss tells staff jobs will go

Sat Mar 14, 2020 6:22 am

mattyfitzg wrote:
psimpson wrote:
BA Cityflyer have sent some of their embraer aircrafts into storage, plus the LCY-SNN-JFK-LCY route will be suspended from the end of the month until October i believe.
Tough times all round in the aviation industry.


Yep, they’re in Norwich.

Now G-LCYV, G-LCAA and LCAB were all went to storage in NWI.
If it's not Boeing, I'm not going!
 
716131
Posts: 892
Joined: Thu Mar 16, 2017 11:51 am

Re: British Airways boss tells staff jobs will go

Sat Mar 14, 2020 6:24 am

psimpson wrote:
Tough times all round in the aviation industry.

Yes for sure. 2020 will be significantly be worst than 2019.
If it's not Boeing, I'm not going!

Popular Searches On Airliners.net

Top Photos of Last:   24 Hours  •  48 Hours  •  7 Days  •  30 Days  •  180 Days  •  365 Days  •  All Time

Military Aircraft Every type from fighters to helicopters from air forces around the globe

Classic Airliners Props and jets from the good old days

Flight Decks Views from inside the cockpit

Aircraft Cabins Passenger cabin shots showing seat arrangements as well as cargo aircraft interior

Cargo Aircraft Pictures of great freighter aircraft

Government Aircraft Aircraft flying government officials

Helicopters Our large helicopter section. Both military and civil versions

Blimps / Airships Everything from the Goodyear blimp to the Zeppelin

Night Photos Beautiful shots taken while the sun is below the horizon

Accidents Accident, incident and crash related photos

Air to Air Photos taken by airborne photographers of airborne aircraft

Special Paint Schemes Aircraft painted in beautiful and original liveries

Airport Overviews Airport overviews from the air or ground

Tails and Winglets Tail and Winglet closeups with beautiful airline logos