According to City analysts, British Airways is set to face a 252 million pound pre-tax loss for the initial half of this year, due to which it might end a second consecutive year without any profit. 2,500 workers from the cabin crew are slated to attend a union meeting at Sandown Park tomorrow as they plan for a strike.
Unite, a representation for 14,000 of BA’s cabin crew, is planning for a strike against the management, as it sought the High Court’s injunction to stop the BA management from changing salaries and conditions for the crew. The airline had announced changes in the beginning of the previous month, including 1,000 voluntary redundancies.
The airline is set to announce a multimillion pound loss for the critical summer months, which is a key period for most of the airlines. There is fear that even the threat of a strike is likely to discourage passengers from booking with BA, and lead the airlines to stack up a potential pre-tax loss even greater than the 401 million pounds it lost last year.
Of late, BA has also been in talks for tie-ups with American Airlines and the Spanish carrier named Iberia, which could possibly lead the trio to have a strong hold over routes across the Atlantic.
The International Air Transport Association is expecting its members from the industry to a post collective loss stacking up to $11 billion this year as the major economies of the world try to slowly emerge from the worst global recession in many years.
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