News

THE trade has emerged unscathed from British Airways’ latest two-year business plan, with no more plans for distribution cost cuts.

As expected, the airline has focused on headcount reduction for the next two years, setting a £300 million staff cost reduction target for the period.

Distribution costs were a key component of the airline’s previous business plan - Future Size and Shape.

A spokeswoman said: "We are still working on reducing distribution costs with our deals with Galileo and Sabre and moving towards 100% e-ticketing, but there is nothing major included in the plan."

Although no figure has been put on the expected job losses, it is believed the carrier has set a limit at 4,000. It has already shed 13,000 jobs as part of the Future Size and Shape programme launched in February 2002.