UK: Flag-carrier aiming to save £450 million by becoming more efficient
British Airways has announced plans for a major cost-cutting programme as it struggles to cope with a downturn in the market.
The flag-carrier says it is aiming to make cost reductions of some 10 per cent – or £450 million – by 2005 but has stated that it intends doing so without making any job cuts.
Among the areas where it intends making savings are on ticketing, where a paperless system is in the pipeline, and an increase in online working for staff.
British Airways has already implemented a major restructuring plan and turned a £335 million loss in December 2001 to a £25 million profit in the corresponding period last year.
In the company’s in-house magazine, chief executive Rod Eddington wrote: “We embarked on a two-year journey to transform our business into a leaner, fitter, simpler and more competitive airline. One year on were are on track to deliver but tough market conditions mean new, additional cost-saving initiatives are also needed over the next two years.”
