Is British Airways on the brink?
While the last few weeks have seen British Airways introduce significant cost savings, work without pay and a fundraising, there are still concerns that the group is in trouble. In a rather bizarre turnaround in the historic fight with the unions, many believe it is only the power of the union leaders that is actually stopping the vast majority of British Airways 40,000 employees from going on strike.
The company has been blighted by restrictive practices, problems with unions and a volatile cost base for many years but this is by far and away the most damaging and potentially dangerous situation for the group. While Willie Walsh, the chief executive of British Airways, intends to push through yet more changes and cost reductions to save the group, there are concerns that he will need to smash the decades-long grasp which the unions have on working practices.
There have been accusations and counter accusations flying around the market for some time with the unions starting to grow weary of the excessive demands made by management. Even though it is too soon to suggest that British Airways could actually go under, there are serious concerns about the company's long-term future unless a significant overhaul of the operation can be put in place.
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