BA owner bets on costs not bailouts to survive

A plan to axe up to 12,000 jobs at IAG's BA underlines CEO Willie Walsh's desire to survive what is expected to be aviation's worst downturn without a state bailout. Walsh, a former pilot and industry veteran, is betting that once the coronavirus crisis is over, IAG will be better positioned than rivals which might be beholden to political masters after turning to governments to see them through. IAG has reaped the rewards of past cost cutting that many competitors have struggled to match. But given the scale of the latest job cuts, Walsh could face challenges from politicians and unions. "They were a stronger airline going in to this crisis, they want to be even stronger going out," Davy analyst Stephen Furlong said after IAG on Tuesday revealed that BA could make about a quarter of its 42,000 staff redundant. BA also forecast passenger numbers would take years to recover with no end in sight to draconian travel restrictions which have brought flying to a near-halt. While this has left many airlines begging governments for bailouts, IAG's strong balance sheet, described by one analyst as a "fortress", means it can afford a longer flying hiatus than many rivals and has not yet had to seek a rescue.<br/>