Is British Airways in serious financial trouble?
As the Unite union readies its members for a ballot on a third round of strike action there is growing concern about the future shape of British Airways. Despite the fact the company only yesterday announced an agreement with pension trustees regarding the company's liabilities it does seem as though the ongoing strike action will have a massive impact upon the company's finances in the short to medium term. So what can British Airways do to address this issue?
The problem appears to be that both parties have in the past changed their positions on a number of issues but at the moment it appears that travel perks, which were taken away during earlier strike activity, are at the centre of today's dispute. Not only is the stubborn approach by both parties impacting the company in the short-term but it is also causing possibly irreversible damage to the reputation and brand name of British Airways.
There has been talk over the last few days but Willie Walsh could become something of a fall guy in this issue as there appears to be a number of personal issues between himself and the unions. Whether or not this is the case remains to be seen but British Airways and the union need to come together sooner rather than later.
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