When a Tory MP talks about revoking Heathrow slots from British Airways, you know the tide may be turning…
British Airways has embarked upon a campaign it argues is necessary to save itself. Employees have been warned that if all concerned unions do not approach the negotiating table, every employee of every branch of every department will be terminated. Many will be rehired…at lower wages…while around 12,000 will not return to work.
An illustration. A flight attendant currently making £60,000/year may soon be making £24,000. Yes, these are the sorts of draconian cuts under consideration.
Not surprisingly, even discussion over wage cuts this severe is dead on arrival with unions. To date, only BALPA, the union representing pilots, has approached BA to speak.
But British Airways has a problem on its hand. Importantly, the British public does not like what is going on. Maybe it started when baggage benefits and free meals and beverages onboard were taken way. Perhaps it simmered during multiple data breaches and an unprecedented IT meltdown.
Maybe the public just did not like British Airways taking advantage of a horrific situation like COVID-19 as an excuse to slash wages and destroy careers. While the Queen spoke about collective sacrifice, British Airways plotted to dramatically reduce wages.
All fair, right? British Airways is a private company (since 1987 at least…) and can do what it wants to save itself, right? Why should it pay staff so well when the demand for a job at BA is off the charts, right?
Well, not so fast. Forget the loan for a second, though it should be noted that the British taxpayers have recently loaned British Airways £300 million. Let’s focus on London Heathrow, the most lucrative airport in the world due its severe slot restrictions.
As I noted when I first wrote about this issue, British Airways controls the majority of takeoff and landing slots at LHR. For the most part, these were a FREE gift from the UK government.
British Airways Heathrow Slots: With Rights Comes Responsibility…
Just like the very constitution of Great Britain itself, there was unwritten trust in that gifting of those slots. British Airways is trying to have its cake and eat it too. How can BA look taxpayers in the eye and justify slashing employee wages and the customer experience but say so sorry, we’ll need to squat on all these slots.
Members of Parliament are listening, even on the more conservative Tory side. As View from the Wing noted, there is now talk about re-examining BA’s slot allocations at Heathrow.
I think this is long overdue…
CONCLSUION
On a personal note, I’m not looking to punish British Airways. If anything, what is transpiring now demonstrates the peril of accepting any government assistance. There’s no such thing as free…
But British Airways should rightly be questioned for its threat to fire all employees while holding on to the “Golden Goose” at London Heathrow. I am happy to see such conversations beginning to take place in the halls of Westminster.
> Read More: British Airways Prepares To Fire All Flight Attendants In Scheme To Slash Wages
> Read More: Why British Airways Cabin Staff Are So Afraid
It is only fair that BA should give up slots in LHR. When they get public aid from the British Gov., it is only for the best of all. LH has to give up slots in FRA and MUC. AF has to make concessions. So why not BA, VS needs more help and should be supported. BA wants to get rid of 12 000 or more workers, is not it unfaire to these people and to the whole British market…
I think you’re missing a point Matthew. If BA loses slots then, by definition (as Virgin isn’t expanding) they will go to airlines based outside the UK, using non-UK crew etc. I doubt any Government is going to do that ….
But if slot leases represent a tremendous revenue source to British taxpayers, won’t that be appealing?
Why do you call them slot leases if they aren’t actually leased? Sounds like they are given (if not, please correct me as I think periodic auctions for the slots would be a solution).
I think the solution is not to permanently take them away from BA, but to lease them out to other carriers (versus selling them).
If the UK is actually governed by the rule of law, and not as a banana republic, then the two issues have absolutely nothing to do with each other. If the government wanted strings attached to the slot “gift”, or for the loan, then they should have done so. Attaching demands after the fact for political appearances is what banana republics do. Besides, the interests of the government and BA employees are not exactly aligned. If BA is forced to overpay employees then that means they will be coming back for another round of bailouts that much sooner, or they’ll have to make sacrifices elsewhere.
The fact is that most of their employees are overpaid and easily replaceable. Just like how unions take advantage of good economic cycles to demand new inflated contracts, so do companies during downswings. It’s simple economics, it shouldn’t be emotional, nor political.
There will be layoffs regardless of the outcome of this threat. This will be a tough time for BA employees but I feel the best possible outcome for both employees and the company is compromise. BA wants to have its cake and eat it but the government will use its nuclear option if BA pushes ahead. Some jobs are going to go and wages will be cut but if the government gets behind the unions at the negotiating table then a more favourable deal could be reached for BA staff. If only BALPA is willing to negotiate to try and get the best result for its members then the other unions will be failing their members whilst also giving BA the excuse of offering to negotiate but the unions weren’t willing. If the unions work together and are backed by the government then I believe BA will be forced to cave in order to keep the jewel in their crown.
BA is a hugely profitable company and part of that is based in the value of LHR slots.
In the UK it’s often known as London Airways because it has no interest in regional operations beyond feeding the LHR operation.
Their treatment of staff over recent years has been appaling and their data breaches (of which I am a victim) are scandleous.
I would like to see BA lose ten slots at LHR for every 100 staff they either cut the pay of or make redundant. The sale of the slots could make up the money that will be needed to pay benefits to these people once BA washes their hands of them.
In terms of pay, the pugnacious Wee Willie Walsh who is always spoiling for a fight makes more money a day than a member of cabin crew makes in a year. There is no set of moral values that makes that right.
I’m am one of BA Employee for12 years before that i was delivery meals to Brirish Airways for 23 years i have three members of my family who are going to lose our jobs and there thousands others in same position IAG Share holders are the only one are the winners this hthe time the government should step in to take control of the situation and nationalising British Airways and all the staff will pay back to the government I’m i final stage of my life i want to something for British airways and for the UK from the day i left school
Dear Prime minister please save hour flag carrier airline before it goes into foreign hands and save more lives like the NHS saved yours when you were in hospital i know you can do it get your heavy muscle behind this and save lives
Many Thanks
Sidhu