oneworld news

[Cornelis Boersma 0]

Rumours persist that Finnair are to retain 2 MD11's for future use, 1 freighter and 1 passenger. OH-LGB/D remain stored at Helsinki and as these are owned by the airline then they would be the obvious choice.

 

OH-LGF has been re-registered N783BC, owned by Boeing Capital and is now in Singapore along with sister ship OH-LGG which is now N785BC.

 

CargoItalia are to get a third MD11F this Summer. It is expected to be a former Finnair aircraft after its had its freighter conversion and one of the 3 currently in Singapore (OH-LGC/F/G)

[Pieter C. 5]

JAL to drop 45 routes in drastic cuts to network

 

Japan Airlines (JAL) plans to stop operations on 15 international routes, as the loss-making carrier reveals drastic cuts to its route network this year.

 

JAL, which filed for bankruptcy protection on 19 January, will also suspend operations on 30 domestic routes, says the Oneworld carrier.

 

As a result, JAL's international and domestic passenger capacity will fall by 40% and 30% respectively from its 2008 fiscal year, it says.

 

Along with flight cuts announced earlier, JAL will close 11 overseas bases and eight domestic offices, it adds.

 

It says the flight cuts will achieve "substantial reductions in the airline's fixed costs" within one year, a target that was initially planned to be achieved over three years.

 

"The extent to which the route and flight frequency plan has been streamlined is vital to achieving a swift revival of the JAL group."

 

JAL will axe flights between Tokyo Narita and: Sao Paulo, Amsterdam, Milan, Rome, Brisbane and Bali Denpasar, and on its Tokyo Narita-Kona-Honolulu route.

 

Services between Osaka Kansai and: Bali Denpasar, Guam, Hong Kong, Guangzhou and Beijing, as well as between Nagoya Chubu and Bangkok and Guangzhou, will also be suspended.

 

The suspensions will take effect progressively from 30 September, says JAL, which will also close its offices in Sao Paulo, Amsterdam, Milan, Rome, Brisbane, Bali Denpasar and Kona.

 

From October, the airline will progressively reduce flight frequencies on its services between Tokyo Narita and Seoul Incheon, Guam, Beijing, Hong Kong and Taipei, it says.

 

However, JAL plans to triple the number of international flights operating out of Tokyo's Haneda Airport to 14 daily from five currently, it adds.

 

Haneda will open to international scheduled services from October after a fourth runway opens.

 

JAL will start five new services between Tokyo Haneda and Taipei Songshan, San Francisco, Honolulu, Bangkok and Paris from 31 October, it says.

 

It will operate to Taipei 14 times weekly, and on the four other routes daily, it adds. Upon commencement of operations at Haneda, JAL will suspend its Tokyo Narita-San Francisco route, it says.

 

It also plans to increase flight frequencies on its services between Tokyo Haneda and: Seoul Gimpo, Beijing, Hong Kong and Shanghai Hongqiao, it says.

 

"JAL aims to construct a well-balanced network by teaming high traffic services from Haneda to the Americas, Europe and Asia, with its comprehensive connections to regions throughout Japan."

 

At Osaka and Nagoya, JAL will utilise smaller aircraft to increase profitability, says JAL.

 

On the domestic front, JAL will stop operations on 30 domestic routes and reduce flight frequencies on 13 others. The changes will take effect progressively from October until March 2011, it adds.

 

"The extent to which the route and flight frequency has been streamlined is vital to achieving a swift revival of the JAL group."

 

JAL filed for bankruptcy protection after incurring ¥2.3 trillion ($25.8 billion) in debt, and has embarked on a financial restructuring process by cutting unprofitable routes, slashing workforce numbers and renewing its fleet.

 

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Sayonara JAL !!!

 

1st no more Cargo flights (to AMS) and now also no more pax-flights

(when I started spotting, they operated DC-8-50 via ANC)...

 

It seems to me, they'll 'depart' a lot of flights from NRT and start flights from HND...

Also, main airports (like ICN) will be changed to Gimpo; also Hongqiao i.s.o. main airport

 

It will benefit ANA a lot IMHO...

[Pieter C. 5]

LAN To Invest USD$2.83 Bln In 2010-2013

 

April 30, 2010

 

LAN, Chile's dominant airline, said on Thursday it would invest USD$2.83 billion between 2010 and 2013 as it expands its fleet, and said it was optimistic about the outlook for this year.

 

Chairman Jorge Awad told a shareholder meeting the company would invest USD$500 million in 2010 and USD$1 billion in 2011 to purchase both short- and long-haul aircraft.

 

The investment compares with USD$1.4 billion the company announced last April it had earmarked for 2009-2011.

 

LAN said on Tuesday its net profit rose 36 percent to USD$88.3 million during the first quarter, citing a strong recovery in its passenger and cargo businesses.

 

LAN said its results were also boosted by comparison with the year ago period because of a USD$57.9 million hedging loss in the first quarter of 2009. LAN lost USD$2.63 million on hedging in the first quarter of 2010.

 

However, LAN said that its results had been held back because of the devastating earthquake on February 27, which caused flight cancelations out of Santiago airport and damaged installations.

 

The airline said last month it had reached a deal with Boeing to bring forward delivery of 10 new 787 planes to 2011 from 2014.

 

LAN has affiliates in Ecuador, Peru and Argentina. It accounts for more than half of Chile's international passenger traffic and nearly three-quarters of its domestic traffic.

 

(Reuters)

[Pieter C. 5]

JAL Seen Posting Loss Of USD$1.7 Billion

 

April 26, 2010

 

Debt-ridden Japan Airlines is forecast to have posted a group operating loss of about JPY160 billion yen (USD$1.7 billion) for the financial year that ended in March, Japan's Sankei newspaper reported on Sunday.

 

JAL and two subsidiaries filed in January for bankruptcy protection with a combined USD$25 billion in debt -- on of the largest corporate failures in Japanese history.

 

JAL's results will be the worst since it had tied up with Japan Airlines System in 2002 as revenue dropped sharply due to a rapid slowdown in the Japanese economy, the newspaper reported without citing any sources.

 

The airline's subsidiary, Japan Airlines International, appears to have secured a small profit in March, Sankei reported.

 

But JAL continues to face difficulties in its business in April as volcanic eruptions in Iceland forced flight cancellations, the newspaper added.

 

JAL and the state-backed Enterprise Turnaround Initiative Corporation of Japan compiled a restructuring plan earlier in the month to reduce its workforce by a third, or more than 16,000 jobs, by the end of current financial year in March 2011, Sankei said.

 

(Reuters)

 

 

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American Air Delays Chicago-Beijing Service

 

April 27, 2010

 

American Airlines said on Monday that it will delay the start of its daily, nonstop service from Chicago to Beijing until next month because China has not given it viable take-off and landing slots.

 

"Simply put, American has not received commercially viable landing and take-off slots for Beijing Capital International Airport from Chinese aviation authorities," the carrier said in a statement.

 

Mary Frances Fagan, a spokeswoman for American, said the slots American has been granted would allow it to land and depart from Beijing, which has become one of the world's busiest airports, at pre-dawn times.

 

"That doesn't work because it doesn't give the passengers opportunity to make connections either in Beijing or Chicago and doesn't make it competitive with other airlines that already serve the two countries," Fagan said.

 

"We need slots that allow us to land sometime in the afternoon and take off in the afternoon, not in the middle of the night," Fagan said.

 

Attempts to reach the Chinese embassy in Washington by telephone or email were not immediately successful.

 

China has been "very tight" with approving landing slots over congestion, especially during peak times of day, said one US-based consultant familiar with bids by US airlines to fly to Beijing.

 

American said it had applied for slots at Beijing in October 2009. The company had planned to offer service from Chicago to Beijing beginning on Monday, it said.

 

"American's planned flights were sold with the reasonable expectation that, in common with industry practice, viable slots would be confirmed in time for the scheduled start date of the new service, which had been approved by the governments of both the United States and China," American said.

 

The company said it hopes it can resolve the issue by May 4, when it plans to start service from Chicago to Beijing, followed by Beijing-to-Chicago service on May 5. It said it was rebooking customers on other flights, offering full refunds or the opportunity to travel at a later date.

 

(Reuters)

[Pieter C. 5]

British Airways Cabin Crew Reject Latest Offer

 

May 7, 2010

 

British Airways cabin crew rejected the airline's latest offer in a long running industrial dispute, the Unite union said on Friday, a move that could herald a third wave of strikes this year.

 

British Airways said it was disappointed but not surprised and urged Unite to end the dispute.

 

The union, which represents about 90 percent of BA's 12,000 cabin crew, said 81 percent had voted against the offer and it would hold a meeting on Monday to discuss the next move in the row over pay and working conditions.

 

Turnout in the ballot was 71 percent, it said.

 

"BA management should take note of their own employees' strong rejection of their offer and immediately address the outstanding concerns," said Derek Simpson and Tony Woodley, Unite's joint general secretaries, in a statement.

 

"Unite is fully committed to supporting our members in furthering this dispute if no resolution is found."

 

The two sides resumed negotiations in April after two sets of strikes in March.

 

Last week Woodley, recommending crew reject the offer, said despite progress in some areas, BA management had refused to reinstate travel concessions the company withdrew from striking crew.

 

"Unite has clearly orchestrated a rejection of a very fair offer that addresses all the concerns raised during 14 months of talks," BA said in a statement. "There can be nothing positive gained from further strikes."

 

BA is aiming to save GBP£62.5 million pounds (USD$96.7 million) a year to counter falling demand, volatile fuel prices and greater competition. It has estimated the seven days of walkouts in March cost it between GBP£40 million and GBP£45 million.

 

(Reuters)

[Pieter C. 5]

LAN Plans Partnership To Operate In Colombia

 

May 7, 2010

 

Chilean airline LAN said on Thursday it plans a partnership with Colombia's Aeroasis to start passenger and cargo operations in the South American country.

 

LAN said it was helping Aeroasis to obtain a permit needed to operate in Colombia.

 

"LAN's firm interest is that once Aeroasis obtains its operating permit, the Colombian airline may become part of the LAN group of airline operators," LAN said in a statement.

 

The deal is part of LAN's plans to expand businesses abroad.

 

The company plans to invest USD$2.83 billion between 2010 and 2013 as it expands its fleet, and said it was optimistic about the outlook for this year.

 

LAN has affiliates in Ecuador, Peru and Argentina. It accounts for more than half of Chile's international passenger traffic and nearly three-quarters of its domestic traffic.

 

(Reuters)

 

Wow, they're really expanding fast in South-America !!!

[Pieter C. 5]

Third Wave Of BA Crew Strikes "Inevitable"

 

May 10, 2010

 

A new wave of strikes by British Airways cabin crew "looks inevitable" and a decision on the dates and duration of a fresh walkout will be taken at a meeting on Monday, the Unite union said.

 

"It very much looks like discussions (between BA and Unite) are over and that continued industrial action is going to be inevitable," a Unite spokeswoman said on Monday.

 

"BA staff rejected BA's newest offer and we expected BA to get in touch but we haven't heard from them."

 

BA cabin crew last week rejected the airline's latest offer in a long running industrial dispute over pay and working conditions, a move that could herald a third wave of strikes this year.

 

The Financial Times on Monday reported that some Unite officials had recommended that their leaders announce three weeks of strikes -- five-day stoppages, broken by three 24-hour 'breather' days -- possibly from the start of next week.

 

"We're meeting with representatives later (on Monday) and they will put a proposal to the joint general secretary Derek Simpson for a programme of action," the Unite spokeswoman said.

 

"It is strategy meeting so I'm sure industrial action will be considered within the wider strategy and you may well hear about that later today."

 

A BA spokesman said the airline would have no comment to make until Unite had made an announcement.

 

The union, which represents about 90 percent of BA's 12,000 cabin crew, said 81 percent of those balloted had voted against BA's latest offer last week.

 

BA, which last month sealed its long-awaited merger with Spain's Iberia, is aiming to save GBP£62.5 million (USD$96.7 million) a year to counter falling demand, volatile fuel prices and greater competition.

 

It has estimated the seven days of walkouts in March cost it some GBP£45 million and that last month's volcano ash-related disruption cost it around GBP£20 million a day in revenues.

 

(Reuters)

[Pieter C. 5]

WestJet, Cathay Pacific Sign Travel Agreement

 

May 11, 2010

 

WestJet Airlines and Cathay Pacific Airways launched a tie-up on Tuesday that will connect passengers on Cathay Pacific, Hong Kong's dominant carrier, to WestJet's Canadian network.

 

The so-called inbound interline agreement marks a step in WestJet's plans to expand into international markets.

 

Currently, the low-cost airline only flies to destinations in North America and the Caribbean but it is keen to sign up partners around the world to expand its routes.

 

The interline agreement allows passengers to board a Cathay Pacific flight and travel on one itinerary to destinations in WestJet's network.

 

Initially, connections will be made through Vancouver and Toronto, with the option to continue via WestJet to Calgary, Edmonton, Winnipeg, Ottawa, Montreal and Halifax.

 

WestJet has also entered into a baggage agreement with Dragon Air, Cathay Pacific's regional airline subsidiary.

 

This agreement will allow passengers to check their bags all the way through for journeys that include a combination of WestJet, Cathay Pacific and Dragon Air flights.

 

(Reuters)

 

After the ill-cooperation with Southwest, they really change their view and sign agreements now with mainline airlines (like KLM)...

[Pieter C. 5]

BA To Fly 70 Pct Of Passengers On Strike Days

 

May 13, 2010

 

British Airways expects to carry more than 70 percent of its customers, or over 60,000 passengers a day, during five days of strike action due to start next week, the airline said on Thursday.

 

The Unite union announced earlier this week that cabin crew would stage a further 20 days of strikes in May and June, threatening renewed misery for travellers already hit by walkouts and disruption caused by volcanic ash.

 

BA said in a statement that it had leased eight aircraft with pilots and crew provided by five different airlines to supplement those of its own staff who choose to work.

 

"We are confident that many crew will ignore Unite's pointless strike call and support the efforts of the airline to keep our customers flying," British Airways chief executive Willie Walsh said in a statement.

 

"Due to the numbers of cabin crew who are telling us they want to work normally... the schedule will be slightly larger than we had originally anticipated," Walsh added.

 

The strikes are part of a long-running disagreement over pay and conditions that stems from BA plans to save GBP£62.5 million pounds (USD$93 million) a year to counter falling demand, volatile fuel prices and greater competition.

 

The dispute has grown increasingly bitter with some analysts and media saying Walsh's firm stance has effectively broken the industrial action, or at least put unions on the back foot, and Unite accusing BA of bullying and issuing misleading figures about the number of staff ready to work.

 

BA, which last month sealed its long-awaited merger with Spain's Iberia, says it operated 79 percent of long-haul and 58 percent of short-haul flights during strikes in March.

 

But the seven days of walkouts that month still cost the airline GBP£45 million while last month's disruption as a result of a volcanic eruption in Iceland cost it a further GBP£20 million a day in lost revenue.

 

The latest bout of industrial action will see the first strikes begin on May 18 and run until May 22. Then there will be further walkouts on May 24-28, May 30-June 3 and June 5-9.

 

Unite has also said it will hold a further ballot of BA cabin crew for industrial action over issues arising from the company's conduct during the dispute.

 

BA said all flights at Gatwick and London City airports would operate as normal while at Heathrow BA it will operate more than 60 percent of long haul flights and 50 percent of short haul flights.

 

(Reuters)

[Pieter C. 5]

Iberia Q1 Loss Narrows As Costs Drop

 

May 14, 2010

 

Spanish airline Iberia posted a narrower than expected first-quarter operating loss on Friday as costs dropped 10 percent and revenues stabilised, adding to signs an industry-wide recession may be near its end.

 

The airline, which plans to complete a merger with British Airways this year, said its January-March loss before interest and taxes (EBIT) narrowed to EUR€75.5 million euros from EUR€147 million in the 2009 period.

 

Passenger traffic slid 9.5 percent in April, when Iberia was forced to cancel over 600 flights due to the ash cloud from an Icelandic volcano which closed Europe's airspace for a week.

 

Iberia estimated a net impact of EUR€17 million (USD$21.60 million) from the disruption.

 

The hit to April traffic comes just as airlines around the world start to recover from a severe drop in traffic that reached its lowest point in March 2009, but analysts said demand still seems to be picking up.

 

"We think the underlying traffic trend is one of recovery and our core assumption is that the Icelandic volcano will not shut the skies as severely as in April," UBS analyst Jarrod Castle said in a research note.

 

Iberia chairman Antonio Vazquez said the airline will raise long-haul capacity by 3.3 percent this year and still planned to launch a new low-cost carrier for its short and medium-haul routes before year-end.

 

He also said merger plans with BA to create Europe's second largest airline by passenger kilometres are on track.

 

"Everything is progressing according to schedule. All our teams are working on this deal," the chairman said.

 

Iberia's first quarter revenues fell 4.4 percent to EUR€1.05 billion, while its net loss was nearly halved to EUR€52 million.

 

(Reuters)

[Pieter C. 5]

BA To Take Legal Action To Stop Strikes

 

May 14, 2010

 

British Airways will take legal action to try and prevent cabin crew strikes due to start next week, the company said on Friday, citing an irregularity in the union's strike ballot as the basis of its case.

 

Unions representing cabin crew have scheduled 20 days of strike action over the next month, starting May 18-22, threatening renewed misery for travellers already hit by walkouts and disruption caused by volcanic ash.

 

BA and the union representing its cabin crew had earlier in the day said they were ready for discussions that could avert the strikes, after a mediator invited the two sides to talk.

 

But BA, which stopped a December strike through the courts, later said there was an irregularity in how the union had conducted the ballot to strike. A similar move was used to block a rail workers' strike earlier this year.

 

"On this basis we have applied to the High Court for an injunction to stop the 20 days of strikes planned from Tuesday," BA said in a statement.

 

The Unite union denied any ballot irregularity.

 

"I am confident that we conducted our ballot perfectly and in compliance with the law. We'll be defending our position in court," said spokesman Andrew Murray.

 

Before it said it would take legal action, BA had said it expected to carry more than 70 percent of its customers, or over 60,000 passengers a day, during five days of strike action due to start next week.

 

The strikes are part of a long-running disagreement over pay and conditions that stems from BA plans to save GBP£62.5 million pounds (USD$93 million) a year to counter falling demand, volatile fuel prices and greater competition.

 

BA says it operated 79 percent of long-haul and 58 percent of short-haul flights during strikes in March.

 

But the seven days of walkouts that month still cost the airline GBP£45 million while last month's disruption as a result of a volcanic eruption in Iceland cost it a further GBP£20 million a day in revenue.

 

The latest bout of industrial action will see the first strikes begin on May 18 and run until May 22. Then there will be further walkouts on May 24-28, May 30-June 3 and June 5-9.

 

A union representing BA pilots urged the new coalition government on Friday to intervene to try to settle the dispute.

 

"The last three days have changed the face of British politics with erstwhile political opponents coming together for the common good," said Jim McAuslan, general secretary of the British Airline Pilots' Association (BALPA), which represents 3,000 of BA's 3200 pilots.

 

"We call on government to use that political momentum to help solve what are tired 1970s style industrial relations."

 

The pilots are not involved in the dispute.

 

(Reuters)

[Pieter C. 5]

British Airways, Unite Near Cost Cuts Deal

 

May 16, 2010

 

The union for British Airways cabin crew said it had reached agreement in principle with the airline over a cost-cutting row which has caused a series of strikes and threatens more stoppages this week.

 

But the Unite union's joint leader Tony Woodley said the restoration of staff travel perks had not been agreed and this row was holding up settlement of the wider dispute.

 

Cabin crew are scheduled to begin a series of walkouts on Tuesday, threatening more misery for travellers already hit by earlier strikes and disruption caused by volcanic ash.

 

BA and the union have been locked in a long-running dispute over pay and conditions that stems from the airline's plans to save GBP£62.5 million pounds (USD$91 million) a year to counter falling demand, volatile fuel prices and greater competition.

 

"BA has said this was a battle for the long term future of the company, to have the right cost base and restructuring in place," Unite's joint leader Tony Woodley said in a statement on Sunday.

 

"All of these requirements have now been agreed, at least in principle, with Unite."

 

The union wants to reverse the removal of travel perks from staff who went on strike in March. Earlier on Sunday Woodley told Sky News the restoration of these concessions was the main sticking point in the dispute.

 

BA was unavailable for comment.

 

Last-ditch talks are scheduled for Monday to avert next week's strike.

 

BA said on Friday it had applied for a High Court injunction to prevent the May strikes, after finding what it said was an irregularity in the union ballot for strike action.

 

Seven days of strikes in March cost the airline GBP£45 million.

 

(Reuters)

[Pieter C. 5]

British Airways Wins Court Bid To Block Strike

 

May 17, 2010

 

British Airways on Monday won a legal bid to block a threatened five-day strike by cabin crew members, though unions said they would immediately appeal the decision.

 

The first of four five-day walkouts had been due to begin at midnight, but will now not go ahead as planned.

 

BA's lawyers had argued that the Unite union had broken the law on a technicality over the way it had conducted the strike ballot.

 

In the end, Justice McCombe granted the order against the union. He said the "balance of convenience" in his view required the granting of an injunction.

 

In a statement, BA said it would aim to restore a full flight slate at London's Heathrow airport by the weekend, pending any further disruption from the volcanic ash cloud.

 

It had originally anticipated operating only 60 percent of long-haul flights out of Heathrow over the strike period and 50 percent of short-haul flights.

 

BA called upon Unite to "take this opportunity to pause and focus on achieving the early and peaceful end to this dispute which the travelling public and all our employees want."

 

The union, however, said it would appeal the decision as early as Tuesday.

 

The dispute with cabin crew over pay and conditions has already resulted in seven days of strikes in March, which cost the airline GBP£45 million pounds.

 

Unite said on Sunday it had reached agreement in principle with BA over its plans to save GBP£62.5 million a year to counter falling demand, volatile fuel prices and greater competition.

 

Earlier the union's joint leader Derek Simpson said it was "not beyond the bounds of possibility" that a deal could be struck.

 

"One of the jobs that needs to be done is to provide reassurance and some confidence that if we do a deal, the deal sticks," he told BBC TV.

 

"There has to be resolution. It would be sad to see either the company collapse and capitulate, or it would be equally sad to see our members dragged back to work in defeat. It shouldn't be allowed to get to that stage."

 

The union has said the main sticking point to a deal was the restoration of travel perks taken away from staff who went on strike in March and other disciplinary matters.

 

BA chief executive Willie Walsh said the travel perks were not the issue.

 

"This is not about travel concessions; this is about a dysfunctional trade union," he said. "I'm an optimist at heart and I hope that common sense will prevail and this strike action will be called off."

 

Britain's new transport minister Philip Hammond, who met both parties on Monday, urged them to keep talking.

 

"Think about the long-term interests of the UK, the UK travelling public, the employees and the airline, because actually they are all the same," he told BBC radio.

 

(Reuters)

[Pieter C. 5]

Court To Rule Thursday On BA Union Appeal Bid

 

May 19, 2010

 

Judges will rule on Thursday on whether the British Airways cabin crew union, Unite, will be allowed to mount an appeal against a legal challenge that blocked a planned strike.

 

Lawyers for the Unite union had gone to the Court of Appeal to try to overturn an injunction on the first of four proposed five-day walkouts.

 

Three of Britain's most senior judges, who have been hearing the union's arguments, said they would give their decision at 9:30 am on Thursday.

 

BA on Monday won a legal bid to block a threatened five-day strike by cabin crew members. The first of four five-day walkouts had been due to begin at midnight, but did not go ahead as planned.

 

The airline's lawyers argued that Unite had broken the law on a technicality over the way it had conducted the strike ballot.

 

Tony Woodley, joint head of the union, said the judge's ban was an affront to democracy and branded it "an absolute disgrace."

 

He said BA won its injunction because the union failed to tell a small number of its 11,000 members there had been 11 spoilt ballot papers in an overwhelming vote to authorise the strikes.

 

"It does bring into question whether we have a right to strike in this country," he told BBC television.

 

A BA spokeswoman said it still hoped for an "early and peaceful end" to the dispute and that "talks (with Unite) would continue throughout the week."

 

BGC Partners analyst Howard Wheeldon said there was "a feeling of relief in the market" that BA had managed to stop the latest strike and that the saga was now approaching the "end-game stages."

 

The dispute with cabin crew over pay and conditions has already resulted in seven days of strikes in March, which cost the airline GBP£45 million pounds.

 

Earlier this week Unite said it had reached agreement in principle with BA over its plans to save GBP£62.5 million a year to counter falling demand, volatile fuel prices and greater competition.

 

However, Unite said the restoration of staff travel perks had not been agreed and this row was holding up settlement of the wider dispute.

 

(Reuters)

[Pieter C. 5]

BA Union Wins Appeal Over Strike Ruling

 

May 20, 2010

 

The British Airways cabin crew union, Unite, won an appeal on Thursday against a High Court ruling this week that had blocked a new wave of walkouts by the airline's staff.

 

The union said it would not strike before Monday, and that it was seeking a settlement with BA, which is in a dispute with its cabin crew over pay as the airline tries to cut costs.

 

"Despite the obvious enthusiasm of colleagues here, this is not a moment for being triumphant. We shouldn't have been in this process. The case brought by BA was trivial," Unite's Derek Simpson said outside the court after the ruling.

 

Two out of three of Britain's senior judges ruled in favour of Unite in a knife-edge decision.

 

BA said in a statement it was "very disappointed", adding that it would implement a contingency plan to keep planes flying. It intends to fly more than 70 percent of the customers booked.

 

Originally the union had planned to stage strikes from May 18-22 , May 24-28 , May 30-June 3, and June 5-9.

 

The dispute with cabin crew over pay and conditions had already resulted in seven days of strikes in March, which cost the airline GBP£45 million pounds (USD$64.56 million).

 

BA on Monday won a court injunction to stop a threatened five-day strike by cabin crew members, the first of four such planned disruptions.

 

Incensed by the ruling Unite immediately challenged the decision, calling it a "disgrace" and an affront to democracy.

 

BA's lawyers had previously successfully argued that Unite had breached the 1992 labour law which stipulates that unions must communicate a full breakdown of votes cast, including figures on spoiled ballot papers.

 

The judge ruled against the union on the grounds that it had failed to provide all the necessary information in an easily accessible place.

 

Unite had also neglected to tell a small number of its 11,000 members there had been 11 spoilt ballot papers in an overwhelming vote to authorise the strikes.

 

Earlier this week Unite said it had reached agreement in principle with BA over its plans to save GBP£62.5 million (USD$90 million) a year to counter falling demand, volatile fuel prices and greater competition.

 

However, Unite said the restoration of staff travel perks had not been agreed and this row was holding up settlement of the wider dispute.

 

(Reuters)

[Pieter C. 5]

BA Union To Strike On Monday If No Deal

 

May 21, 2010

 

The British Airways cabin crew Unite union won an appeal on Thursday against a court injunction brought in this week to stop a new wave of walkouts by the airline's staff.

 

Seeking a settlement, Unite said BA crews would go on strike for five days from Monday unless the two sides could settle a dispute over pay as the airline tries to cut costs.

 

Unite said further strikes would take place for five days from May 30 and five days from June 5, should there be no peace deal.

 

Travel through London, one of the world's busiest airline hubs, was hit by BA crew striking earlier this year, before Iceland's volcanic ash cloud caused more widespread disruption last month.

 

"BA management now has a chance over the next three days to address our outstanding concerns and seize the possibility for industrial peace," Unite's joint general secretary Derek Simpson said in a statement on Thursday.

 

"Failing that, cabin crew will once more be taking industrial action with our full support."

 

Two of the three appeal court judges ruled in favour of Unite in a close decision. One of them said a small infringement in the way the strike was balloted -- the case for BA's injunction on Monday -- should not invalidate the ballot.

 

BA, which is in the process of merging with Spanish airline Iberia, said in a statement it was "very disappointed," adding that it had a contingency plan to keep planes in the air and fly more than 70 percent of customers.

 

BA is trying to get a deal with Unite which will save GBP£62.5 million pounds a year to counter falling demand, volatile fuel prices and greater competition.

 

Unite said it had come to an agreement in principle with BA over its cost-cutting plans but the restoration of travel perks for striking staff had not been agreed, holding up settlement of the wider dispute.

 

BA'S FINANCIAL WORRIES

 

Originally the union had planned to stage four strikes from May 18-22, May 24-28, May 30-June 3, and June 5-9.

 

The dispute with cabin crew has already caused seven days of strikes in March, which cost the airline GBP£45 million.

 

The walkouts come at a bad time for the airline, which is due to present its full-year results on Friday.

 

"This increases near term uncertainty on BA's business," Davy Stockbrokers analyst Stephen Furling said of the strikes.

 

BA's merger with Spain's Iberia, which is eventually expected to generate EUR€400 million euros a year in cost savings, will help BA recoup its strike-related losses when it is finalised later this year.

 

BA also expects to cut costs further by merging its trans-atlantic operations with American Airlines, which will allow the pair to operate as a single airline if the tie-up is cleared by regulators.

 

BGC Partners analyst Howard Wheeldon said the Iberia deal would go ahead and many striking staff could become "superfluous to requirements" once the merger is finalised.

 

(Reuters)

 

-------------------------------------------------------------------------------------------

 

British Airways Posts Record Full Year Loss

 

May 21, 2010

 

British Airways posted a record GBP£531 million pounds full-year loss on Friday, hit by the recession, industrial disputes and the winter snow, though its ambitions to break even next year could by hit by more strikes.

 

The loss, BA's largest annual deficit since it was privatised in 1987, was less than the GBP£590 million (USD$846 million) shortfall predicted by analysts, and follows last year's GBP£401 million loss.

 

BA said its revenues for the year to the end of March fell 11 percent to GBP£7.9 billion, offset by costs GBP£1 billion lower, and predicted a return to break even next year as a slump in travel caused by the global economic downturn eases.

 

"We think we can break even on the pretax profit level in the next full year," chief executive Willie Walsh told reporters.

 

"Long-haul premium traffic has recovered and reductions in short-haul traffic have eased. Market conditions are showing improvement from the depressed levels in 2009/10."

 

The results were affected by cabin crew strikes in March, which cost the carrier GBP£43 million and are due to continue next week, but do not include the GBP£100 million hit it took from the ongoing disruption caused by the eruption of an Icelandic volcano last month.

 

"I admire BA's optimism but even if you ignore strikes, volcanic dust and the state of the economy I'm not at all confident that the slight improvement we have seen will result in break even or that the market is on the up," said Howard Wheeldon, a senior strategist at BGC Partners.

 

"I think we're in for a very long flat period at best."

 

PERMANENT CHANGE NEEDED

 

BA shares have risen 10 percent in the last year but those gains have disappeared in the last week after a court said the airline's cabin crew could press ahead with further strike action in the coming weeks.

 

Walsh said returning the business to profitability required "permanent change across the company" and that it was "disappointing that the Unite union fails to recognise that".

 

Unite said BA staff would start three five-day strikes next week unless union and airline can settle a dispute over pay and terms.

 

The dispute has grown increasingly bitter with some analysts saying Walsh's firm stance has effectively broken the industrial action, or at least put unions on the back foot. Unite has also accused Walsh of trying to break the union, which has 97 percent of BA cabin crew as members.

 

If the action goes ahead, BA has said it will operate a full schedule at London's Gatwick airport, a full schedule at London City, some two-thirds of long-haul flights at London Heathrow and around half of the airport's short-haul programme.

 

IBERIA COST SAVINGS

 

BA said its merger with Spain's Iberia, which is expected to generate EUR€400 million (USD$496.6 million) a year in cost savings, would be complete by the end of 2010.

 

It also said it hoped plans to form a commercial alliance with American Airlines would be approved by the US Department of Transportation and the EU by this summer.

 

BA, Europe's third-largest carrier, said it had managed to cut costs by around GBP£1 billion in its last fiscal year, thanks, in part, to a fuel bill GBP£600 million lower.

 

However, the airline said it was unable to recommend a dividend this year because of its current financial situation.

 

Passenger traffic fell 3 percent during the year, with first and business-class travel -- the most profitable part of its passenger business -- falling in nine of the 12 months.

 

Air France-KLM on Thursday predicted a return to break even this year after it posted a record full-year operating loss of EUR€1.285 billion.

 

Earlier this week industry body IATA said demand for business and first-class seats rose in the first-quarter of 2010 but that premium travel was still some 15 percent below pre-recession levels.

 

(Reuters)

[Pieter C. 5]

BA, Union Fail To Agree As Strike Nears

 

May 23, 2010

 

British Airways cabin crew were heading for a five-day strike this week after the airline and union leaders failed to resume talks on Sunday, blaming each other for the communication breakdown.

 

Without a last gasp deal, the first of three five-day protests planned in response to BA's cost-cutting drive will go ahead on Monday.

 

Negotiations to avoid the strike broke down on Saturday evening after protesters gate-crashed the talks.

 

BA and Unite union chiefs had hoped to resume talks on Sunday but none were arranged and both sides took to the airwaves to argue their points, making it all but inevitable that the strike will go ahead.

 

Unite co-leader Tony Woodley offered to call off the industrial action if BA reinstated travel allowances for striking staff.

 

"Let's stop the inconvenience to the British travelling public... Let's get the travel back on for our people and let's finalise a deal hopefully over these next couple of days," Woodley told reporters in London.

 

The airline was unmoved.

 

"This position reinforces our view that (cabin crew union) Bassa, at the centre of this dispute, is not serious in trying to come to a negotiated agreement with British Airways -- and that Tony cannot control Bassa," BA said in a statement.

 

"We call on him to call off the strike action and return to the table with (mediator) ACAS to finish the discussions that started yesterday."

 

TWITTER UPDATES

 

British Airways chief executive Willie Walsh said earlier on Sunday he was hopeful of a deal in the long-running dispute over the airline's cost-cutting drive but said the company had contingency plans in place to keep services running.

 

"BA will survive and we will be stronger because we are tackling the core issues," he told the BBC. "We will not allow Unite, the union, to ground BA."

 

The airline said all flights at London Gatwick and London City airports would operate as normal.

 

"At Heathrow we expect to operate more than 60 percent of long haul services and more than 50 percent of short haul flights and we will add to that schedule where we can," BA said.

 

Walsh said he had also been angered by the union's joint leader Derek Simpson who had sent out live updates on the Twitter microblogging site during Saturday's talks.

 

The airline is trying to get a deal with Unite to save GBP£62.5 million pounds (USD$89.81 million) a year.

 

Unions are particularly angered by disciplinary action taken by BA against striking staff and the removal of travel perks.

 

On Friday, BA reported its biggest annual loss since privatisation in 1987 due to the recession, bad weather and industrial disputes.

 

(Reuters)

[Pieter C. 5]

British Airways Cabin Crew Begin Five-Day Strike

 

May 24, 2010

 

British Airways cabin crew began a five-day strike on Monday after weekend talks on a long-running dispute over wages, job cuts and working conditions broke down in acrimony.

 

The airline said it planned to operate more than 60 percent of long-haul flights and more than 50 percent of short-haul flights from London's main Heathrow Airport, allowing 70 percent of passengers to reach their destinations.

 

Flights from two other London airports, Gatwick and City, were not affected by the strike.

 

A further two five-day strikes are planned if the dispute cannot be resolved, following on from stoppages in March.

 

"Our operations around the world have got off to a good start this morning," BA said in a statement.

 

BA said it would be leasing up to eight aircraft with pilots and cabin crews from other British or European airlines to keep passengers on the move.

 

British Airways chief executive Willie Walsh and leaders of the Unite union, which represents the cabin crew, blame each other for a breakdown in communication.

 

"I made an offer to Willie Walsh yesterday to put back our people's travel concessions that he's vindictively and foolishly taken away from them and I would personally call this strike off," Unite co-leader Tony Woodley told BBC Radio 4 on Monday.

 

The issue of travel allowances for cabin crew has become a major sticking point in the conflict, which comes at a difficult time for BA. The airline last week announced a record full-year loss of GBP£531 million (USD$763 million).

 

Cabin crew strikes in March cost the airline GBP£43 million, a figure included in the loss posted last week. BA has suffered an additional GBP£100 million hit due to disruption to flights caused by ash from an Icelandic volcano.

 

The new Conservative-Liberal Democrat coalition urged the two parties to resume talks to settle the dispute.

 

"It's not in the interests of the company, it's not in the interests of the staff long-term and it's certainly not in the interests of the travelling public," Prime Minister David Cameron's spokesman told reporters.

 

The latest round of face-to-face talks between managers and union leaders, on Saturday, came to an ill-tempered halt after protesters from a small left-wing group invaded the venue.

 

It also emerged that Derek Simpson, joint leader of Unite, had been sending real-time updates to the microblogging site Twitter from inside the confidential talks, angering Walsh.

 

Undaunted, Simpson tweeted again on Monday. "Tony (Woodley) and I will visit the BA picket lines today .. And if BA are minded we will talk to them," he wrote.

 

(Reuters)

[Pieter C. 5]

BA Says Reaches Most Destinations As Strike Starts

 

May 24, 2010

 

British Airways flew to the majority of its destinations worldwide on Monday despite the start of a five-day strike by cabin crew, it said, adding no further negotiations with unions were imminent.

 

The airline reiterated plans to operate more than 60 percent of long-haul flights and more than 50 percent of short-haul flights from London's Heathrow Airport, allowing 70 percent of passengers to reach their destinations.

 

Flights from London's Gatwick and City airports were not affected by the strike. Two more five-day strikes are planned if the dispute over wages, jobs and working conditions is not resolved, following stoppages in March.

 

"British Airways flew to 85 percent of its long-haul destinations and 100 percent of its short-haul destinations," it said in a statement on Monday.

 

BA, which flies to over 300 destinations every day, said it had leased eight aircraft with pilots and cabin crew from other airlines to keep passengers on the move.

 

BA chief executive Willie Walsh and leaders of the Unite union, which represents cabin crew, blame each other for a breakdown in communication. "There are no more talks on the horizon," a BA spokesman said.

 

The issue of travel allowances for cabin crew has become a major sticking point in the conflict, which comes at a difficult time for BA. Last week, the airline announced a full-year loss of GBP£531 million pounds (USD$764 million).

 

"I made an offer to Willie Walsh yesterday to put back our people's travel concessions that he has vindictively and foolishly taken away from them and I would personally call this strike off," Unite co-leader Tony Woodley told BBC Radio.

 

UNDERLYING BUSINESS

 

BA shares had risen a quarter in value in the past year as an industry-wide recession eased, but 10 percent of those gains disappeared last week after a court said staff could press ahead with further strike action.

 

BA stock closed 0.9 percent up at 190.1 pence on Monday, valuing the business at around GBP£2.2 billion.

 

Analyst Stephen Furlong at Davy Stockbrokers said the market was more interested in the state of BA's underlying business than the strikes and noted trading conditions were improving.

 

Last Friday, BA forecast a return to break-even next year and said its yield -- the revenue it makes on each passenger for every mile travelled -- rose 3.2 percent between January and April and would likely keep growing in 2010.

 

Some analysts, however, said the strikes could put off previously loyal BA customers from flying with it in future.

 

"Strike action at BA will not, in my view, succeed except that it risks alienating BA from more of its customers long term, meaning it could seriously weaken the airline," BGC Partners senior strategist Howard Wheeldon said.

 

The British Airline Pilots' Association (BALPA) said BA pilots had stayed neutral throughout the dispute, despite "the very real risk it posed for the future of all BA employees".

 

"We have encouraged both sides to reach agreement and helped initiate the new coalition government's attempt to bring the two sides together," BAPLA general secretary Jim McAuslan said.

 

The strikes in March cost BA GBP£43 million, a figure included in the loss posted last week. BA has suffered an additional GBP£100 million hit due to disruption to flights caused by ash from the Icelandic volcano.

 

The most recent face-to-face talks between BA and union leaders came to an ill-tempered halt after protesters from a left-wing group invaded the venue.

 

(Reuters)

 

100% of the shorthaul destinations ?

NOT TRUE !!!

AMS traffic: LGW/LCY normal - no cancellations; LHR ALL but 1 flight CANCELLED !!!

[Pieter C. 5]

BA, Unite Tussle Over Cabin Crew Strike Impact

 

May 26, 2010

 

The union representing striking British Airways cabin crew on Tuesday said the impact of the latest stoppage was more severe than BA has said, as another day passed without a sign of fresh talks to end the dispute.

 

BA says it is "always available for talks" while a union spokeswoman said it was working on resuming talks, but nothing was fixed yet.

 

The Unite union, representing cabin crew in their second day of a five-day strike over pay and benefits, has threatened two more five-day strikes if there is no resolution. BA cabin crew also held walk outs in March.

 

Unite said some 68 percent of long-haul flights and only 59 percent of short haul routes were running on Tuesday, similar to numbers compiled by the union a day earlier.

 

It said the figures, which are for BA operations at its hub at Heathrow, Britain's biggest airport, suggested "crew support for (the) strike is building."

 

BA, which is trying to cut costs to compensate for increased competition, volatile fuel prices and falling demand, gave no data for Tuesday, but on Monday said flights were little affected.

 

"We do not recognise the statistics that Unite has issued," a BA spokeswoman said, adding that the company was adding more flights because the strike's impact was lower than expected.

 

The company said it was able to run 85 percent of its long-haul routes and all of its short-haul flights on Monday.

 

BA, which flies to over 300 destinations every day, said it had leased eight aircraft with pilots and cabin crew from other airlines to keep passengers on the move, part of contingency plans to fly 70 percent of booked customers during the strike.

 

The union says its strike costs BA GBP£7 million pounds a day. Seven days of strikes in March cost the airline GBP£43 million.

 

Talks between BA and Unite have been acrimonious. BA's court injunction on Unite's latest strike was overturned last week and subsequent talks between the two sides ended in chaos over the weekend when left-wing protesters stormed the negotiations.

 

The main sticking point in recent talks has been cabin crew travel perks. Analysts say that further strikes may put passengers off from flying with BA.

 

(Reuters)

[Pieter C. 5]

BA To Resume Talks With Cabin Crew Union

 

May 26, 2010

 

British Airways said it would resume talks with the union of striking cabin crew later on Wednesday in an attempt to avert further industrial action.

 

Cabin attendants are in the third day of a five-day strike, protesting over staffing levels and cuts to benefits. The stoppage follows seven days of walkouts in March.

 

Previous negotiations in the long-running dispute have been acrimonious. The last round of talks ended in chaos over the weekend when left-wing protesters stormed the negotiations.

 

"I really hope we can pick up the momentum of the talks from where we were on Saturday before we were invaded," Tony Woodley, joint general secretary of the Unite union, told the BBC.

 

He said Saturday's meeting was the first time that he felt there was a genuine will to work toward a settlement.

 

Unite, which represents the bulk of the airline's cabin crew, has threatened another 10 days of strikes if the dispute is not resolved.

 

BA said it was upping the number of flights it plans to run during the next wave of strikes, from May 30 to June 3, after more staff than expected decided to work during this week's industrial action.

 

The airline said its Heathrow long-haul schedule would be increased to more than 70 percent of flights, from 60 percent this week, while the short-haul schedule would rise to 55 percent of flights, from 50 percent.

 

Woodley repeated his offer to postpone the strikes if travel allowances for cabin crew, which have become a major sticking point in the conflict, are reinstated.

 

"Put the travel back as a gesture, and we will postpone the strike to finalise any other discussion," he said.

 

(Reuters)

[Pieter C. 5]

Cathay Pacific Fined By Korea On Cargo Pricing

 

May 27, 2010

 

Hong Kong-based Cathay Pacific Airways said on Thursday that it had been fined by the Korean Fair Trade Commission for its air cargo pricing practices.

 

Cathay Pacific's fine will be KRW4.098 billion Korean won, or about HKD$26 million (USD$3.34 million), it said in a statement, adding that "several" carriers had been fined by the Korean regulator.

 

"Cathay Pacific will review the KFTC's decision in detail with its legal counsel and explore the options available," the company said.

 

Korea's antitrust regulator fined a total of 19 airlines, including Japan Airlines, saying they had fixed cargo shipment rates, according to media reports on Thursday.

 

Cathay said it could not comment further as the matter is still subject to legal proceedings.

 

(Reuters)

[Pieter C. 5]

Union Warns British Airways Of Further Strikes

 

May 31, 2010

 

British Airways could face even more strike disruption this summer unless it resolves a dispute with cabin crew over travel perks, the co-leader of Britain's biggest union Unite said on Monday.

 

Cabin crew began a second five-day strike on Sunday night, ahead of a week of school holidays, after talks between Unite and the airline failed to reach an agreement last week.

 

Both sides in the dispute have claimed a deal over pay and cuts to staffing levels and travel could be close but blame each other for the lack of further progress. Unite have offered to suspend the walkouts if the airline restores travel perks stripped from striking crew.

 

A third wave of strikes, which stem from a long-running dispute over the airline's cost-cutting drive, are due on June 5, days before the start of the World Cup football tournament in South Africa.

 

Tony Woodley, the joint general secretary of Unite, told delegates at a union conference on Monday that a new ballot for continued industrial action could be only a week or so away.

 

"There is only one thing to do with bullies -- that is stand up to them until they learn some manners," Woodley said, according to extracts from his speech issued by the union.

 

Woodley addressed BA chief executive Willie Walsh directly in his speech.

 

"We all know there is a deal to be done at British Airways, one that recognises the real commercial needs and problems of your company as well as our members' legitimate interests. Unite is ready to do that deal," he said.

 

"But we are not, and never will be prepared to see our members and our union humiliated, victimised and reduced to ruins."

 

The stoppages have happened at a difficult time for the airline and come on top of seven days of walkouts in March which cost BA GBP£43 million pounds (USD$62.75 million).

 

Earlier this month BA reported a second straight year of record losses as it battles a global economic downturn and industry-wide recession as well as disruption caused by volcanic ash drifting over Europe from Iceland.

 

(Reuters)

 

British Airways, Striking Union Plan Further Talks

 

June 1, 2010

 

British Airways and officials from the Unite trade union plan further talks later on Tuesday to try to resolve a dispute with cabin crew staging the latest in a series of strikes.

 

Cabin crew began a five-day strike on Sunday night after talks between Unite and the airline failed to reach agreement last week.

 

Another five-day strike, stemming from a long-running dispute over the airline's cost-cutting drive and staffing levels, is due to start on June 5, less than a week before the start of the football World Cup in South Africa.

 

"There is a meeting today with BA, later this afternoon," a spokesman for Unite said.

 

He gave no further details. Unite joint general secretary Tony Woodley was expected to attend, having left the union's policy conference in Manchester.

 

Mediation service ACAS said it would host the talks at an undisclosed location after left-wing protesters disrupted a previous round of talks.

 

BA said it had been operating 70 percent of long-haul flights from London Heathrow and 55 percent of short-haul services from the airport during the latest strike. Flights out of London Gatwick and City airports were unaffected.

 

Unite has said it could hold a further ballot for strike action during the peak summer travel months of July and August.

 

The stoppages have happened at a difficult time for the airline and come on top of seven days of walkouts in March that cost BA GBP£43 million (USD$63 million).

 

Last month, BA reported a second straight year of record losses and it is battling a global economic downturn and industry-wide recession as well as disruption caused by volcanic ash drifting over Europe from Iceland.

 

Both sides in the dispute have claimed that a deal over pay and cuts to staffing levels and travel was not too far away but have blamed each other for the lack of progress. Unite has offered to suspend the walkouts if the airline restores travel perks stripped from striking crew.

 

(Reuters)

[Pieter C. 5]

Iberia Urges Union Accord For Low-Cost Carrier

 

June 2, 2010

 

Spain's Iberia wants an agreement with unions on a new short-medium range airline before summer, its chairman said, as the loss-making carrier seeks new strategies to ensure its viability in the damaged air industry.

 

Iberia announced plans to create a Madrid-based, low-cost network to feed its growing long-haul business last October as part of its 2012 strategic plan, but unions have met the move with scepticism.

 

"We want consensus with the unions, but it must be clear that our short-medium range model has to change, without a doubt," Iberia's chairman Antonio Vazquez told reporters.

 

"It's not just about cost-cutting," he added.

 

Airlines posted record losses in 2009, but industry association IATA has said demand for business and first class seats had picked up in the first quarter, while economy travel recovered to pre-crisis levels.

 

"We're on the right track now, but there's still a long road ahead," Vazquez said ahead of a shareholders meeting.

 

Iberia's merger with British Airways, also conceived to cut costs and improve competitiveness, is still on track for completion before year-end.

 

"If everything goes as planned the merger will take place in November," Vazquez said.

 

He said he also expected a commercial alliance with BA and American Airlines to be approved by the US Department of Transportation and the EU by this summer.

 

(Reuters)

[Pieter C. 5]

Fresh BA Strike To Go Ahead From Saturday

 

June 4, 2010

 

British Airways cabin crew's latest strike will go ahead on Saturday with no talks scheduled between the airline and unions to avert the five-day stoppage, the Unite union said.

 

"There are no talks planned and the strike goes ahead tomorrow (Saturday)," a Unite spokeswoman said on Friday.

 

BA said it was "still available for talks" and that conciliation service ACAS was "talking to both parties to try and arrange talks."

 

The strikes stem from BA's decision last November to cut cabin crew pay and alter staffing levels to save GBP£62.5 million (USD$91.5 million) a year to counter falling demand, volatile fuel prices and greater competition.

 

The latest strike comes less than a week before the start of the football World Cup in South Africa and follows a five-day strike which ended on Thursday. This follows on from a four-day walkout last week and seven days of stoppages in March.

 

BA chief executive Willie Walsh and leaders of the Unite union, which represents cabin crew, blame each other for a breakdown in communication.

 

Six months' worth of talks have failed to yield a resolution, with the walkouts having caused BA to ground flights on 17 days so far.

 

The issue of travel allowances for cabin crew has become a major sticking point in the conflict, which comes at a difficult time for BA. Last month, the airline announced a full-year loss of GBP£531 million.

 

BA, Europe's third-largest airline, which is losing around GBP£7 million a day from the strike, said the total cost of the stoppages could only be assessed at the end of the disruption and would reflect lost bookings offset by some volume driven cost savings.

 

BA carried 11.5 percent fewer passenger in May year-on-year because of the strikes, leaving it lagging rivals such as Air France-KLM, Ryanair and easyJet whose passenger numbers are rising.

 

(Reuters)

 

Iberia Buys Five Airbus A320s Then Sells To BA

 

June 4, 2010

 

Spain's Iberia has exercised an option to buy five planes and sold them to British Airways, a spokeswoman for the Spanish flag carrier said, in a sign that the merger partners are moving ever closer.

 

"The two had said that this was one of the areas where they could generate synergies," an analyst in Spain said.

 

BA and Iberia are hoping for around EUR€400 million of annual synergies from their tie-up, which is due to be completed by the end of the year.

 

A report in Spain's Expansion newspaper said the five Airbus A320 planes had a list price of about USD$300 million.

 

The planes originally formed part of Iberia's biggest ever fleet replacement deal, signed in 2005 with Airbus for 30 acquisitions and 49 options on aircraft for delivery to 2011.

 

British Airways declined to comment.

 

(Reuters)