James Moore: Staff must be in to dig BA out of its hole

The problem BA faces is that while it is, on the whole, better run than many national flag carriers, it still has deep-seated problems that will be anything but easy to fix. Put simply, BA has more and better paid staff than rivals, together with a gargantuan pension deficit that makes actuaries blanch.

It may not be as bad as chief executive Willie Walsh has been saying ? this is very likely a negotiating tactic and if the premium market is as awful as he has been hinting, why is BA pressing ahead with plans to operate business-only flights to New York out of City airport? Nonetheless, there is no question that BA needs to make cutbacks, deep cutbacks, if it is to weather the storm.

What Walsh does need to do, though, is find a way of making those cuts while still bringing the remaining staff along with him. Make no mistake, BA is a premium airline and it is very difficult to see it moving into another niche. It is just not set up to do that but a premium airline with grumpy, disaffected and demoralised staff will not remain a premium airline for long. There has been much talk of giving staff stakes in the business in return for pay cuts/freezes. That might dilute shareholders but pain is far easier to bear when it is shared.

View full article here

VN:F [1.9.22_1171]
Rating: 0.0/10 (0 votes cast)

Tags: , , , , , , , , , , , , , , , , , ,

Ezine Article Board


This author has published 5774 articles so far.

Comments are closed