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Thanks British Airways

Well, it seems like the BA cabin crew will go on strike. I talked about this a month ago stating that the BA cabin crew folks are upset about a 2010 pay freeze, 3,000 full time employees switching to part-time, and a decrease in employees on long-haul flights out of Heathrow.

BA is not taking legal action against the cabin crew union, unite. The proposed 12 day strike will start on December 22 and conveniently disrupt peak holiday travel for BA customers. BA is already taking refunds on tickets and has a battle plan in action, if the strike occurs.

Why is this happening? Well, BA is feeling the pinch of the global economic crisis and since the airline relies on premium, long-haul traffic, they are now having a tough time filling those front end seats. As well, high oil prices and insane labor contracts have hampered this once cash cow airline.

It looks like a strike will happen and BA will lose any shot at making a profit this month and passengers will be ticked.

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Categories: BA, profit and loss Tags:

BA Hong Kong cabin crew go to court

15 female (former BA) Hong Kong based flight attendants are squaring off with BA legal in England tomorrow on grounds of age discrimination. The flight attendants claim that once they reached the age of 45, they were let go. Meanwhile, other internaitonal crews are allowed to stay with BA well passed 45. The Hong Kong crews are upset at the age discrimination practice and want the anti-age discrimiation laws passed in the UK, to apply to them.

More on the story can be found here: cranky, old HKG BA crews.

Too bad airline gals don’t look like this anymore:

the good old days

 

 

 

Categories: BA, legal, London Tags:

BA/Iberia merger not 100%

The proposed merger between Iberia and British Airways will depend on BA’s pension deficit. Iberia has the right to back out of the merger if the pension deficit is larger than expected.

Here are some major points if the merger goes through.

1). Better leverage to compete with Air France/KLM and Lufthansa.

2). Provide the best north-atlantic and south-atlantic network in the world. Giving BA better access to Latin America and Iberia access to North America and Asia.

3). Closer realtionship to American Airlines with prospects of a merger with AA.

4). Consolidate ASM’s and, thus, better control over capacity and pricing power.

 

Picture 1Picture 2

 

Categories: BA, Iberia Tags:

CNBC reporting BA/Iberia merger talks

November 12, 2009 1 comment

The BA and IB boards are conducting separate meetings regarding a full merger between the carriers. A merger would create the world’s third largest airline, by revenue. It would also give both carriers more ground to compete with the Air Frane/KLM team and Lufthansa.

While management at both carriers remains focused on a potential merger, the flight attendants at the airlines may strike this holiday season. That could throw a wrench into the merger plans, on a short term basis.

 

 

Categories: BA, Iberia Tags: ,

British Airways strike looming?

The world’s favourite airline, might be the least favorite when the cabin crew staff at BA threatens a strike during the holiday season this year. Is it real? It sure is. The cabin crew are angry because they are under a two year pay freeze, new working conditions (meaning longer hours and fewer workers), and 1,700 employee lay offs.

The BA cabin crew union is behind a “call to arms” and they are pressing BA CEO Willie Walsh to re-think his new cost cutting policies. If not, many passengers will call BA the world’s worst airline.

 

 

Categories: BA