oneworld

Coronavirus: Row over BA staff future deepens

BA is in a bitter standoff with unions over sweeping proposals to restructure its business. As well as proposing to make up to 12,000 staff redundant, BA also wants change pay and conditions for its workforce. This restructuring could include pay cuts and worse conditions for some staff, while others could benefit. Pilots union Balpa is engaging with the airline, but some other unions are refusing to come to the table. The company has already warned that thousands of jobs could go at the airline, as it struggles to deal with the impact of the Covid-19 pandemic. But according to the trade union Unite, which represents cabin crew and check-in staff, the reality is much worse than that. It claims the company wants to fire virtually its entire workforce, before re-employing most of them on inferior terms and conditions. It is a charge the company vehemently denies. BA says it is currently burning through its cash reserves at a rate of around GBP1m per hour, and the CE, Alex Cruz, has made it clear that the very survival of the business is at stake. <br/>

With aircraft grounded, Qatar seeks flexibility on new deliveries

The head of Qatar Airways called on the world’s two major planemakers to ease demands that ailing carriers accept delivery of new aircraft, saying future relationships are at stake. Airbus and Boeing should allow the deferral of handovers until at least 2022, CEO Akbar Al Baker said Tuesday. Qatar Airways has about $50b of orders outstanding, based on list prices. “What is important is for Boeing and Airbus to show their customers that they are not only there with them in good times, but also in bad,” he said. “If they don’t oblige, they will permanently lose us as a customer.” Al Baker’s comments highlight the financial pressure on airlines, especially Gulf carriers like Qatar Airways whose business shuttling travelers across the globe has been shriveled by the coronavirus. The CEO said he didn’t know when passengers would begin flying again in significant numbers, and that it will take several years for traffic to return to normal. An Airbus spokesman said the company is in contact with clients but declined to discuss specifics, citing confidentiality. Boeing declined to comment. Al Baker also said Qatar Airways has kept going with its own resources, but that if the crisis continues and a bailout is needed it will likely seek an equity injection from its government owner.<br/>

Airline angst as Spain to sue over virus flight chaos

Iberia protested Tuesday after the Spanish government pledged to sue 17 airlines for failing to inform travellers about their right to a refund for flights cancelled during the pandemic. A day after the consumer affairs ministry said it would take legal action, the Spanish carrier hit back. "Iberia and Iberia Express inform customers clearly about their rights," it said. Under European law, when a flight is cancelled, passengers must be offered an alternative flight or a refund. The refund may be voucher, but only if the customer consents, the EC clarified last month. "Shortcomings in the information provided on customers' rights following the cancellation of flights," led to the legal action, the ministry said. "The misleading omission of information by airlines in offering vouchers (as the only option) constitutes unfair trading involving a clear lack of consent as well as a breach of the law," a statement said. Iberia said it was "bewildered" by the allegations and denounced the "very damaging effects" of such a move on both its reputation and "financial ability to overcome the current paralysis".<br/>