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BA PILOTS AGREE TO TAKE PAY CUT

City AM Published Jul 13, 2009 Reviewed Jul 3, 2026 ✓ Reviewed by citations.press editors
The Balpa union said 94% of its members voted for the pay cut.
94 % · members voting for cut Balpa, pilot’s union
British Airways posted record losses of £401 million this year, with £331 million incurred in the final quarter.
401 million pounds · record losses331 million pounds · losses in final quarter British Airways, company
British Airways pilots agreed to a 2.6% pay cut, aiming to save the airline £26 million.
2.6 % · pay cut26 million pounds · cost savings , pilots
Pilots will receive £13 million of BA shares, about £4,300 per share, to be delivered in three years.
13 million pounds · BA shares to pilots4300 pounds · value per share Balpa, pilot’s union
GMB noted that last year British Airways made a record profit of £992 million.
992 million pounds · record profit GMB, union
Willie Walsh will work for free in July and forgo his £61,000 monthly salary, while the airline loses almost £3 million per day.
61000 pounds per month · monthly salary forfeitedapprox 3 million pounds per day · daily losses Willie Walsh, chief executive
A deadline on 30 June passed without agreement on 3,700 job cuts and a two‑year pay freeze.
3700 · job cuts2 years · pay freeze duration
Willie Walsh secured backing for a potential rights issue that could raise up to £500 million.
up to 500 million pounds · potential rights issue raising Willie Walsh, chief executive
BA pilots agreed to a 2.6% pay cut.
2.6 % · pay cut BA pilots, agreement
Pilots will receive £13m of BA shares, about £4,300 worth each, in three years’ time.
13 m · sharesabout 4300 £ · share value per pilot pilots, receive
BA posted record losses of £401m earlier this year, £331m of which came in the final quarter alone.
401 m · losses331 m · losses in final quarter BA, posted losses
Pilots average a salary of around £80,000 and their flying allowances will be cut by 20%.
about 80000 pounds · average pilot salary20 % · flying allowances cut
The package of measures was designed to save the airline £26m.
26 m · save package of measures, design
94% of Balpa members voted for the pay cut.
94 % · members voting Balpa, union
Pilots earn an average salary of around £80,000.
about 80 k · salary pilots, earn
Flying allowances for pilots will be cut by 20%.
20 % · allowances pilots, allowances
The airline made a record profit of £992m last year.
992 m · profit GMB, points out
Walsh secured backing for a rights issue to raise up to £500m from the firm’s biggest shareholders.
up to 500 m · raise Walsh, won backing
Walsh said the airline’s losses are running at almost £3m a day.
almost 3 m · losses per day Walsh, says
Walsh agreed to work for nothing in July and sacrifice his monthly salary of £61,000.
61 k · salary Walsh, agreed
The deadline for agreeing 3,700 job cuts and a two-year pay freeze passed without a deal on 30 June.
3700 · job cuts deadline, deadline
GMB union will parade 12 lemmings in cages outside the airline’s annual meeting.
12 · lemmings GMB union, union
Walsh has won backing for a potential rights issue to raise up to £500m.
at most 500 m · rights issue Walsh, chief executive
The GMB union will parade 12 lemmings in cages outside the airline’s annual meeting.
12 · lemmings GMB union, parade

BRITISH AIRWAYS (BA) pilots agreed to a 2.6 per cent pay cut yesterday, as part of a package of measures designed to save the ailing airline £26m.

The move comes as the firm’s directors prepare themselves for what is expected to be a stormy annual meeting today.

The pilot’s union Balpa said 94 per cent of its members voted for the cut in pay, agreeing to take up shares in the ailing flag-carrier instead.

In return, the pilots will receive £13m of BA shares — about £4,300 worth each — in three years’ time.

The pilots, who earn an average salary of around £80,000, will also see their flying allowances cut by 20 per cent.

“Our research indicates that BA is facing a real business challenge and this is not the case of the employer crying wolf,” said Balpa’s secretary general Jim McAuslan.

However, other workers at the airline are more resistant to making the sacrifices requested by chief executive Willie Walsh, who says the firm is in a “fight for survival” because of rising costs and a fall in demand due to the global economic downturn.

BA posted record losses of £401m earlier this year – £331m of which came in the final quarter alone – and scrapped its dividend.

Walsh has asked thousands of staff to take pay cuts or work for nothing for a month in a bid to save cash.

A deadline for agreeing 3,700 job cuts and a two-year pay freeze with cabin crew and administration staff passed without a deal on 30 June, and talks are continuing to try to break the deadlock.

An angry GMB union, which represents many of these BA workers, says it will parade 12 lemmings in cages outside the airline’s annual meeting at the Queen Elizabeth II Conference Centre in Westminster today, and will hold up placards saying, “Willie, time to head to the departure gate?”

The union will also hand out leaflets to shareholders as they arrive, asking for their support for a fairer agreement for its members.

The GMB points out that last year the airline made a record profit of £992m.

It emerged over the weekend that Walsh had won backing for a potential rights issue to raise up to £500m from the firm’s biggest shareholders in a bid to repair the airline’s balance sheet.

BA said: “We are pleased that BA pilots have voted overwhelmingly in favour of the cost saving package. Talks with our remaining trade unions, facilitated by the conciliation service Acas, are taking place.”

Walsh, who has agreed to work for nothing in July and sacrifice his monthly salary of £61,000, says the airline’s losses are running at almost £3m a day.

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