BA ready to axe more jobs

BRITISH Airways boss Rod Eddington is ready to axe thousands more jobs in the face of a continuing downturn in world demand. The airline has already cut 11,000 jobs in two years and 2,000 more will go under plans already announced.

BA's Australian chief executive is prepared to discuss further job losses with union leaders if he is forced into extra cost-cutting. But with the airline facing a £40 million bill as a result of lost revenue from the swipecard dispute at Heathrow, no sign of a return of business passengers and ferocious competition on short haul routes, the temptation will be to make further savings.

Rivals such as Virgin Atlantic and bmi British Midland have gleefully reported a dramatic surge in bookings as passengers switch from BA, fearful that they could end up stuck in the kind of chaos that paralysed Heathrow last month.

Eddington wants to assess how the airline recovers from the dispute, which hit BA's most profitable month, before considering more job cuts. But his intervention in the dispute has restored his reputation among BA's major shareholders.

While there has been criticism about the timing of the management in taking on unions at the height of the holiday season, there has been general support for the airline's strategy of tackling the unions to reduce the headcount.