British Airways Weighing Voluntary Redundancy for Pilots

(Bloomberg) --

British Airways is looking at offering voluntary redundancy to pilots as an alternative to compulsory dismissals and could extend the plan to other workers, the company said in a letter to staff seen by Bloomberg News.

The unit of IAG SA is discussing the step with the British Airline Pilots’ Association, according to the communication from its management committee. The labor group didn’t immediately respond to an email seeking comment.

British Airways aims to cut as many as 12,000 jobs to preserve cash and cope with a slow recovery from the coronavirus pandemic. The carrier warned previously it would dismiss all of its 4,300 pilots and rehire them on new contracts in the absence of a deal to save money, Balpa said on Saturday.

While talks may be progressing with pilots, the Unite and GMB unions have declined to engage in negotiations, the note said, appealing to workers to seek their participation. BA said it’s burning through 20 million pounds ($25 million) a day even with staff furloughed and operations largely grounded, and that the drain on cash will limit options if agreements can’t be reached soon.

Unite said Wednesday it had told the European Union’s competition regulator it intended to act as a third party in opposing IAG’s acquisition of Spanish leisure carrier Air Europa at a time when jobs were at risk. Airlines across the continent have flagged moves to eliminate more than 50,000 positions, with Deutsche Lufthansa AG saying it has a surplus of 22,000 full-time positions.

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