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BA to cut up to 12,000 jobs in "restructuring and redundancy programme"

BA to cut up to 12,000 jobs in "restructuring and redundancy programme"

Old Apr 28, 2020, 2:11 pm
  #61  
 
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Originally Posted by Swampz64
A friend owns several international businesses, one of which has 4 board meetings a year across the globe, each meeting costs around $100k excluding the salaries of the directors. They’ve held a zoom board meeting during the shutdown and he sees no reason why 3 of the 4 meetings each year cannot be done remotely, they save $300k and staff are not spending two days per meeting travelling.

I think there will be tens of thousands of businesses changing their practises and it will have a massive impact on airlines, airports and business centric hotels around the world going forward.
BA may want to bring out this ad from the past or an updated one:


However I agree to the extent that people that would normally be reluctant to use new technology are having to use it and finding if they put their minds to it, it's not that hard. But there still will be times when face to face meetings are important to build relationships and seal deals. The business cases will need to be justified rather just going on a jolly. It's that market the BA will need to target for the Club business. Alternatively they will need to make a bigger effort on Traveller as you can't Zoom a holiday for 2 weeks in the sun somewhere.
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Old Apr 28, 2020, 2:18 pm
  #62  
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Alternatively they will need to make a bigger effort on Traveller as you can't Zoom a holiday for 2 weeks in the sun somewhere.
And some “holiday routes” are rammed in Club World and, indeed, in First! 😎
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Old Apr 28, 2020, 2:29 pm
  #63  
 
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Originally Posted by andymcdonnell
Terribly sad but not entirely unsurprising news. I think all of us, despite our gripes over catering or outdated seats or BOB etc can empathise with those effected & particularly the amazing front line people we meet every time we fly.

Fingers crossed they all find alternative employment soon
I hope after a few years when things are back to normal we might see return to work scheme. NHS, Met Police, Prisons and some other organisations/bodies have this kind of scheme.

A few years ago i had a job offer from BA but due to the low salary and living in East London i turned the job offer down. Now i am glad i did but it must be a horrible feeling for people in this situation. Hopefully they will get new jobs soon.
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Old Apr 28, 2020, 2:32 pm
  #64  
 
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Originally Posted by T8191
And some holiday routes are rammed in Club World and, indeed, in First! 😎
You mean they were .... ?

..... the times they are a-changin .....
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Old Apr 28, 2020, 3:00 pm
  #65  
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Call me cynical, but is there additional layers of pessimism going on here to increase the probability of investors being more wary of saving Norwegian and Virgin Atlantic?
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Old Apr 28, 2020, 3:04 pm
  #66  
 
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This is an awful situation but I think BA have been quite transparent and upfront about this. From an employee relations perspective the announcement by Cruz is by the book.
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Old Apr 28, 2020, 3:23 pm
  #67  
 
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Originally Posted by cauchy
It's simply me assuming the highest paid are most at risk. Not the most sophisticated reasoning I accept.

And let me add, it would be an terrible way to treat loyal staff, many of whom must have decades of service. Commiserations to all affected.
I think the highest paid are likely least at risk in BA.
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Old Apr 28, 2020, 3:26 pm
  #68  
 
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IAG's offices are tiny - around 40 people, as I recall, to do all the group functions. Their work is also not, with that few staff, going to be proportional to the volume of business. It will be managing contract tendering, managing the managers in the group constituent companies, counting the beans, screwing up the IT some more [1], etc. - all of which continue to happen whether IAG business grows or shrinks, unless it withers away altogether.

[1] Narrator may be unreliable
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Old Apr 28, 2020, 3:28 pm
  #69  
 
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Originally Posted by Killian_S
I have a little bit of knowledge here as my company is (one of several) working with IAG on some of these plans. While I wont go into detail and dont wish to, the plan is very much to try and save as many roles in BA as it possibly can, but given airline sustainability and demand curve modelling, there will need to be a complete reshaping of the business. No choice if there is to be a BA in 3-5 years time. The airline in the short- / medium-term will be a functional one, as opposed to a bells-and-whistles carrier. My own personal opinion is that passenger enhancements and value-add services will be pared back significantly or dispensed with altogether. If it saves 1 job, then that will be fine for many people Im sure.

I must say, after being quite negative on BA when flying with them, but now actually working alongside them in a crisis, BA have some truly amazing people working for them.
Certainly puts all the 'will my status get extended' hand-wringing into perspective.
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Old Apr 28, 2020, 3:38 pm
  #70  
 
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Originally Posted by T8191
And some holiday routes are rammed in Club World and, indeed, in First! 😎
Yup. And from reading all your Trip Rrports I know who's at the front of that particular queue

ML
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Old Apr 28, 2020, 3:40 pm
  #71  
 
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Originally Posted by dddc
BA may want to bring out this ad from the past or an updated one:

This ad from the past......

However I agree to the extent that people that would normally be reluctant to use new technology are having to use it and finding if they put their minds to it, it's not that hard. But there still will be times when face to face meetings are important to build relationships and seal deals. The business cases will need to be justified rather just going on a jolly. It's that market the BA will need to target for the Club business. Alternatively they will need to make a bigger effort on Traveller as you can't Zoom a holiday for 2 weeks in the sun somewhere.
So would this mean BA cutting the number of premium seats, or would they reduce the price to attract business travellers and the like back?

ML
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Old Apr 28, 2020, 4:13 pm
  #72  
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Originally Posted by Mountlodge
So would this mean BA cutting the number of premium seats, or would they reduce the price to attract business travellers and the like back?

ML
the profit is made on the premium seats so personally I can't see them being cut
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Old Apr 28, 2020, 4:18 pm
  #73  
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Originally Posted by paulaf
The contact tracing app is going to be launched mid May Hancock said today. There was a meeting of EU tourism ministers yesterday to agree a way forward and agree standards but the UK were not invited.
Because it was about discussing a coordinated approach to reopen borders within Schengen which the UK is not part of.
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Old Apr 28, 2020, 4:35 pm
  #74  
 
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Originally Posted by ratechaser
My bank's CEO today made a point that they spent $400 million on travel expenses last year and what remote working has demonstrated is that there's no need to spend nearly that much in future.

So yes, the corporate travel market is going to fundamentally change in the post-Covid world...
Originally Posted by Swampz64
A friend owns several international businesses, one of which has 4 board meetings a year across the globe, each meeting costs around $100k excluding the salaries of the directors. Theyve held a zoom board meeting during the shutdown and he sees no reason why 3 of the 4 meetings each year cannot be done remotely, they save $300k and staff are not spending two days per meeting travelling.

I think there will be tens of thousands of businesses changing their practises and it will have a massive impact on airlines, airports and business centric hotels around the world going forward.
I find it amazing that so many CEO's and bean-counters have not realised technology such as video conferencing existed prior to 2020
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Old Apr 28, 2020, 4:51 pm
  #75  
 
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Originally Posted by Can I help you
Me too.
I wish CIHY et al all the best. As things escalated in late March I decided to sit out the bug in the UK, and the return flight felt so very fin de sicle.

One can question why much of what is unfolding is happening, but not that it is happening. There is a human cost, but for those at the helm the focus is the company, and I'd be slashing hard now.
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