BA promises bonuses for 47,000 staff

BRITISH Airways is mapping out a bonus scheme for its workforce of 47,000 more than four years after the previous incentive plan was scrapped as the company battled recession.

Chief executive Rod Eddington has asked his top executives to come up with a system to reward employees, who have seen 13,000 jobs axed.

With the prospect of another 4,000 redundancies to help save a further £300m, Eddington is keen to come up with an incentive to motivate his staff.

He has made it clear that any bonus would be linked to achieving his target of a ten% operating profit margin.

Eddington recently wrote to staff saying: 'When we reach this goal, we want you to share in the success. I will ask the board to consider a new rewards programme linked to reaching the 10p profit in the pound target. This would benefit all employees.'

On 9 February, BA indicated that the worst was over when it announced a four-fold increase in pre-tax profits for the third quarter, ending December 31, to £125m, up from £25m in the equivalent period the year before.

However, Eddington said that this was not good enough to achieve his target and industry analysts reckon that in the full year, BA will be only about halfway there.

Company insiders reckon that Eddington wants to ensure that the target next year is achievable so the workforce will benefit by exceeding his demands.

However, the company remains at the mercy of outside events. Recent terrorist alerts, which have forced several cancellations of flights, have not only cost the company money but have also had an adverse impact on bookings, BA chairman Lord Marshall said last week.

There is evidence that business is beginning to pick up as the recession eases and with a lower cost base, BA's staff may be rewarded sooner than they might have expected.