[CathayLoyalist2]

I wonder how many companies will offer those staff made redundant some form of outplacement help. It is better than nothing and demonstrates a wiilingness to help even if the prospects are slim.If there is any glimmer for those effected some may well see an opportunity to strike out on their own albeit the market is threadbare.

[canucklad]

[quote quote=997061]So BA have now got a double whammy in that they cant use most of that fuel and have to sell it back into the market at at a much reduced price[/quote]

I’m not sure why they’d do that, surely the whole point of hedging is that you’re investing now for a savings later on.
With oil at its lowest price its ever been, surely its now , especially during the furlough hiatus for airlines (if they can) to pad their profit margin for when travel restrictions ease and regaining custom is going to be price sensitive !

As to rfergusons comments — i’d add the spin doctors rule, this is a good day to bury bad news

If I was to put my capitalist taxpayers hat on, I’d probably congratulate BA’s decision to grasp the reality of the mid term prospects and save us the difference between subsidising high wages (pilots etc) and paying minimal payments through universal credit

On another thread there’s discussion about AF/KL . Now if I was a Dutch or French Taxpayer I’d probably question why so many job s are being needlessy subsidised . Since the reality is, KLM & in particular Air France are going to have to slash their workforce if they’re to remain competitive.

But, as I have a basic understanding of economics , II know that if unemployment figures rise, poverty grows and almost like a self-fulfilling prophecy it drives unemployment further.

Not a environment that will kick start our crippled economy

12, 000 jobs lost at BA will invariably lead to many other job losses in Hounslow, Reading , Brentford and elsewhere as 12, 000 people no longer have disposable income , and in this current climate probably won’t have many job opportunities for years to come. If ever there was a time for us all, and politicians in particular to realize the symbiotic relationships that link our wellbeing its now !

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fqtvgla

[Stowage222]

The interesting point shared by RFerguson is the ‘single supervisory’ role being discussed with the union. BA has wanted this for years as mentioned. I guess this means that all CSDs will be made redundant and some (if any) CSL’s can reapply for a senior role in the new BA Team. I’m also guessing main crew on legacy will have an option to join the mixed flying, at least those not made redundant.

[Gkesuuuk]

There is much sadness about this news; given most their fleet is grounded, this seems a logical necessity. Sadly, as has been pointed, they have lost so much goodwill through years of employee bashing, hence the cynicism as to their motives. It’s tragic for BA staff and so many indirect workers, eg airports, surrounding economies etc.

Selfishly, as a regular user of their Gatwick and City operations, I hope they do not slaughter their networks there.

[FaroFlyer]

Inquisitive said: “I only hope that BA and all the good companies furlough the employees with some cash assistance instead of terminating. And when the situation gets better, the willing employees can rejoin.”

I think that I am correct in saying that the furloughing scheme only runs until end June. By UK Law companies have to give a minimum of 45 days notice of redundancies so it is essential that BA start the process now, to comply with law and the furloughing scheme ending in just over 60 days.

The Government could delay redundancies throughout the UK by extending the furlough scheme, but sooner or later the bullet has to be bitten, not just in the travel industry.

[EU_Flyer]

[quote quote=997039]I imagine BA has picked this time in the middle of a pandemic to ‘restructure’ in order to get the greatest likely result. Unions will have their hands tied as staff have the threat of losing jobs over their head. BA will easily be able to force through long sought changes to T&C’s[/quote]

This also looks very convenient for BA as the threat of strikes and operational disrupton is virtually zero. Likewise frontline staff morale will also be deemed irrelevant in the current circumstances. Those who survive will be extremely grateful to have a job and probably have a renewed fear of management. For AC and WW this is almost nirvana.

Finally and most importantly – I’m sorry for you and all other BA / airline staff having to go through this. My non aviation employer has just pushed through 20% pay cuts despite a bumper 2019/2020 financial year – to save cash. Yet I feel grateful to even have a job among this chaos – despite what may be considered opportunism.

Who would have imagined what we are living through today. Not I.

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ImissConcorde

[SimonS1]

[quote quote=997084]I’m not sure why they’d do that, surely the whole point of hedging is that you’re investing now for a savings later on.
With oil at its lowest price its ever been, surely its now , especially during the furlough hiatus for airlines (if they can) to pad their profit margin for when travel restrictions ease and regaining custom is going to be price sensitive ![/quote]

That isn’t really how it works. Airlines will hedge on one of two ways – options or forwards.

On a forward you are committed to buy x volume of fuel at y price. You are contracted to take delivery, and it isn’t practical to store huge volumes of jet fuel, so if you then don’t need the fuel, the only way out of it is to sell it at spot price and book the loss (or profit).

On an option, you have the option to buy x volume of fuel at y price. That is a bit easier as if you don’t want or need the fuel (eg you can buy it cheaper elsewhere) you walk away and all you have lost is the option cost.

I suppose IAG were on forwards, as they have booked a provision of €1.3bn, but I may be wrong.

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TupeloKid, BA789, canucklad

[Metmanmart]

Cruz and Walsh will be cracking open the champagne over this. The sad situation of the corona-virus has given them the green light to do what they have wanted to do for years. That is to rid the airline of the loyal, and faithful legacy crew. This will enable them to employ cheap labour, on terrible contracts, and save them money. I have no doubt that these are difficult times, but they should furlow the employees…ah but this means they will remain in the airline, which is not what they want..They should be taken to task by the government for activly destroying the great airline, and espcially getting rid of the leagcy crew who have kept the airline going…Shame on these 2, but I suppose they don’t really give a damn. Any chance of them giving up their jobs ? Think not…

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Jacob, DerekVH, capetonianm

[capetonianm]

How right you are. Contrast this mealy-mouthed, tight-fisted, niggardly, inhumane and despicable attitude of the Spanish/Irish management of ‘British’ Airways with this morning’s flypast (*) by a Hurricane and a Spitfire in honour of Colonel Tom Moore, the 100 year old whose efforts raised over £300 million for NHS Charities. The type of man and the type of gesture that made Britain a great and wonderful country, whilst people like Cruz and Walsh destroy it. I know one should never say ‘never’, but I will do all I can to avoid flying on BA in the future. I will donate our family and my own Avios to charity.

(*) https://youtu.be/1LWP0efEpVU

[canucklad]

[quote quote=997156]Cruz and Walsh will be cracking open the champagne over this. The sad situation of the corona-virus has given them the green light to do what they have wanted to do for years.[/quote]

And sadly , it is a prudent decision, and even sadder there will be many,many more of our fellow citizens joining the BA staff on the dole queue.

And with the current delaying noise coming from our politicians who are IMO totally transfixed on PPE and the RO number , and the echoing of the no return to normal until a vaccine is readily available it doesn’t bode well four the majority of workers in the UK.

And the irony is, it’s all done to protect the NHS in the short term . I wonder if anybody in power is raising the very obvious question…..
If we don’t return quickly ( along with other countries) to a degree of normality (not new norms) will the chancellor of the exchequer through taxation have enough money to state fund the NHS? At the current projection, the answer surely is no !

Airlines around the globe are wealth creators and therefore should be seen/used as an indicator of recovery , and as such that’s why our governments need to be far more proactive

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K1ngston, PhilipHart

[openfly]

@capetonianm Oops…too many zeros! The Colonels fantastic effort has raised £30m….

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capetonianm

[openfly]

The headline to this thread should really read “BA MIGHT make 12,000 redundant”. We have yet to see.

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FaroFlyer

[speedbird1969]

[postquote quote=997156][/postquote]
Metmanmart, you literally took the words out of my mouth as I was about to post. The only thing I would add is that most people see pilots and crew as the frontline but there are a load of engineers, planners and back room people who are affected by this too. The morale throughout the company was below rock-bottom before C19 due to the treatment we’ve been receiving under Cruz. This is his moment. He will complete the transformation of BA to a low cost carrier by trimming staff to bare bones and forcing the ones who remain to accept new, minimum wage contracts and my prediction is that when he’s done he will walk away, smiling, with a very large sack of gold.

[capetonianm]

[postquote quote=997164][/postquote]
Sorry, probably finger trouble but I have always battled with numbers with lots of zeros. When I worked for an airline we sometimes had to convert between ZAR or USD and Mozambican Meticals. There were about 25000 to a dollar so airfares were tens of millions. We could never fit the fare into the boxes so we had to write it into the ‘endorsements’ box on hand-written tickets. Good old days when you could do stuff like that. These days, ‘computer says no.’

[PhilipHart]

BA may not reopen at Gatwick once pandemic passes

[Author]

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