Friday, July 3, 2009

British Airways: What more can be done to save money?

British Airway PLC grounded aircrafts, cut seat numbers and postponed the delivery of 12 new A380 Airbus to save money. In June 2009, the airline carried 2.93 million passengers which was 5% lower compared to the figure of June 2008. The airline is going to cut 3,500 jobs and freeze payments. Already, the BA administrations went into talks with the union but nothing happened. Further discussions are going to be held in the coming weeks. reports:

BA said that in response to the "challenging economic conditions" it was cutting its summer capacity by 3.5 percent, rather than the originally forecast 2.5 percent. Capacity for October through March 2010 is expected to be down by 5 percent.

British Airways’ planes were 79.6% filled up in June 2009 which was 81.4% in 2008. In such “challenging economic conditions,” the airline is taking all necessary steps to cut costs. The airline is also grounding three Boeing 757 aircraft in the middle of next year and three Boeing 747-400s this coming winter. British Airways also postponed the delivery of its first six A380 airbus that were supposed to come in 2012. The rest six planes will arrive within 2016.

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