BA opts to keep 2 call centres in-house, dashes Capita's hopes

British Airways said it will retain its in-house call centres in Newcastle and Manchester, dashing Capita's hopes of winning contracts to run the operations. BA said Wednesday that the 2 centres, which employ 1,100 people, would receive millions of pounds in extra investment, a decision that won praise from Britain's biggest trade union. BA has been trying to cut costs in recent years, and Capita had been in a period of "exclusive engagement" with the airline to support BA's global customer contact operations, which it said handles around 9.5m calls a year. BA began talks with Capita in June last year and the talks became public just days after a massive IT outage grounded flights from London's Heathrow and Gatwick airports over a public holiday weekend, which drew public scrutiny onto BA's cost-cutting. <br/>