Walsh: BA in a 'fight for survival'

British Airways CEO Willie Walsh, writing in the company's in-house BA News, told employees that the carrier "is in a fight for survival" and cautioned that temporary solutions "just aren't enough."

His warning follows the release of grim financial results for the fiscal year ended March 31, when BA reported a record consolidated net loss of £358 million ($584.4 million) (ATWOnline, May 25). Its operating loss was £220 million, its debt rose fourfold to £2.4 billion and passenger numbers fell 4.3%.

"This is a structural shift in the nature of our business and only a structural response will be sufficient," Walsh continued, adding that "nobody will thank us for standing back and hoping the external environment improves. It simply isn't going to happen. I also want to nip in the bud any idea that a white knight in the form of the government will come and help."

He said some employee groups have made good progress on pay and productivity changes but "elsewhere has been slow." He urged unions to up the pace and depth of change and flexibility. Management has set a June 30 deadline to reach agreement on new employment policies.