BA controversy over job cuts

British Airways' woes continued with the announcement that it had seen another month of poor passenger numbers in June. Traffic at the airline fell 3.8 per cent in the month from the year before, with total passengers dropping 4.9 per cent. Cargo saw a greater drop of 9.8 per cent, but worst affected was the premium traffic part of its business, which slumped 15 per cent.

The severe declines mean that BA will have to reduce capacity both in the summer and winter. Between April and October it is planning to cut its scheduling by 3.5 per cent and next winter by five per cent. It has also slashed its spending schedule by 20 per cent and delayed the delivery of its new Airbus A3880s by five months on average, with the first delivery due in 2012.

But it is the company's plans to cut a further 3,700 jobs which are set to cause most controversy. Cabin crew will meet today and are likely to reject the proposals, leading to fears of severe disruptions this summer, with strike action accompanying the unions' angry stance. BA recently claimed it had gained widespread backing for its call for employees to follow chief executive Willie Walsh and take pay holidays. However staff are becoming increasingly vocal over the company's cuts as it desperately tries to secure its future in the face of the economic downturn.

WHAT THEY ARE SAYING

Alexander Smith on Reuters: "Richard Branson’s Virgin Atlantic has already said it will cut flights over the winter by 7 percent to battle a “bleak” outlook for the industry. It is also cutting jobs...The only good news in all of this is probably for those living under the flight paths of the routes being cut. For the airline industry the prospects are still grim."

Philip Reynolds in Forbes: "The airline's problems with striking staff are nothing new. They began in July 2003, when an unofficial strike over a new clocking system caused massive disuption and left 80,000 unable to fly....Such disputes are, in one way, business as usual for many carriers. Airline employees are in a position of considerable power because strike action can halt an airline's functioning entirely."