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BA to shake-up struggling regional business
British Airways is preparing to overhaul its loss-making regional business, CitiExpress, after chief executive Willie Walsh admitted its performance “was not good enough.”
Job losses, a reduction in its network and fleet and the possible closure of more UK regional bases could form part of the restructure, according to the Financial Times.
“CitiExpress is a financial challenge to us,” Walsh is quoted as saying. “We intend to restructure it early in the new year. Its performance is not good enough. All parts of the business must contribute to us reaching the target of a 10% operating profit margin.”
BA is already closing routes from Manchester to Cork, Nice, Pisa, Rome, Stuttgart and Venice in March next year and is withdrawing routes to Zurich and Shannon in mid-September.
Services between Birmingham and Rome and Vienna are also being suspended while the airline has closed some operations in Belfast, Plymouth, Cardiff and Leeds-Bradford airport.
The shake-up follows the continuing fierce competition from low cost carriers.
Meanwhile, Walsh confirmed that BA will increase capacity in its profit-making business class cabins at the expense of economy seats. The carrier will spend £100 million upgrading Club World.
Report by Steve Jones
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