How did the mighty British Airways wind up asking staff to work for free?
STRANGELY enough British Airways’ (BA) many problems began at the end of the 2006-07 financial year when it posted record results of £922m.
Until then banks were happy to pay £4,000 to fly across the Atlantic.
But the recession meant that business and first class fares from London to New York – BA’s lifeblood – have dropped to around £1,100 as seat sales plummeted almost 20 per cent. As a result it posted a full year loss this year of £401m, its largest in 25 years.
This led chief executive Willie Walsh to say the airline was in a fight for its “survival”. Some observers say this doom-laden talk is designed to prepare unions for more cuts to come and to soften up governments for the mergers with Spain’s Iberia and American Airlines, which the airline so desperately wants.