British Airways cuts staff meal subsidies

Hotel News - 25/09/2009

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Struggling to cut its losses, British Airways will reduces food subsidies offered to staff in order to save £2.7 million every year, says an announcement in the company's internal newsletter.

The airlines officials have reportedly said the subsidies were no longer feasible, as British Airways grapples with huge losses this year. In the past, BA has subsidized staff meals by up to 60 %.

The airline is said to have have made a loss of £148 million its second quarter this year. British Airways made a profit of £37 million in the same period last year.

Other measures have also been introduced to help the airline cut its staggering losses. British Airways did away with all free in-flight meals on short-haul flights, with the exception of the breakfast meal. The scrapping of meals is expected to help the airline save around £22 annually.

The airline has also announced it will cut 3,700 jobs by March 2010. BA has already axed 2,500 jobs during the last financial year. Other measures to help cut losses have included requesting staff to forego up to a month's wages, and intermittent pay freezes.

The economic downturn and dwindling passenger numbers are likely to lead to further cost-cutting measures. A spokesperson for the airline said the company is reviewing all aspects of the business in the current financial environment.

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