British Airways risks the wrath of unions
British Airways has today announced plans to cut 1700 full-time jobs in the UK with many of these changes being pushed through without union consent. At a time when British Airways literally needs as much help as possible it seems as though the directors of the company are looking for a fight with unions but surely this is not the case?
As we have covered on numerous occasions, British Airways is struggling from reduced business levels and competition in prices. The company is also struggling with large debts and short to medium-term prospects which are not positive to say the least. However, British Airways is currently in talks with two other parties to create a large alliance although this particular arrangement is currently being scrutinised by the European Commission.
Unless we see a significant upturn in the airline industry we will see further major players go under in the short to medium term. While it would seem unlikely that British Airways could actually go out of business, however, as we have seen in America, no business and no airline is totally protected. It will be interesting to see how the European Union look at the British Airways tie-up because ultimately this could be the answer to all their problems.
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