News
British Airways Makes Record Loss of £292m
British Airways intends to cut a further 3,000 jobs over the next six months; around 1,900 employees have left the airline since April.
British Airways has plunged to a record pre-tax loss of £292 million over the past six months, traditionally its most profitable trading period, as the airline fights to stave off Christmas strike action that will deepen its financial woes.
British Airways chief executive, Willie Walsh, warned Ba’s 38,690 staff that the airline’s worst first half results since privatisation made further cost reductions “essential”.
The high court failed to award an injunction against BA cost-cutting measures yesterday but the Unite trade union, which is attempting to halt reductions in cabin crew levels, vowed to press ahead with a strike ballot that could bring the airline to a halt from 21 December onwards.
British Airways underlined how far its business model is out of kilter with its cost base this morning as it reported a pretax loss of £292 million in the six months to 30 September, compared with a profit of £52 million for the same period last year.
The airline is now losing £1.6 million a day after failing to generate enough revenue during the usually profitable summer months a key period for all airlines.
Revenues fell by 13.7 per cent to £4.1 billion, in line with a deep reduction in fares as BA scrambled to maintain demand from passengers, including the all-important business class customers who generate the majority of its profits.
However, overall costs outstripped turnover at £4.2 billion and the loss was deepened by pension and finance costs.
Walsh said the airline industry remained in dire straits and cited forecasts by the International Air Transport Association (IATA) that carriers will lose $11 billion (£6.6 billion) this year despite declining fuel prices.
The BA boss earned the moniker “slasher Walsh” when he turned around Irish carrier Aer Lingus with a brutal cost reduction programme and signaled another budget crackdown over the next six months.
“It’s imperative we continue to deliver on our plans to reduce costs further in the second half,” he said. “With revenue likely to be £1bn lower this year, we can’t stand still and further cost reduction is essential.”
Walsh believes the worst declines in passenger numbers are over customer numbers fell by 469,000 to 17.7 million over the period but warned that the industry was still in recession with no sign of “green shoots” yet.
BA said it intends to cut a further 3,000 jobs over the next six months, including the equivalent of 1,700 cabin crew with the rest to come from international employees and ground staff including check-in desk workers. Around 1,900 employees have left the airline since April. Staff represent BA’s second biggest cost after fuel, accounting for about a quarter of expenditure, but attempts to wring cost savings from the airline’s 14,000 cabin crew have descended into acrimony.
The Unite union, which represents the majority of flight crew, is holding a ballot on proposals to cut crew on long-haul flights from 15 to 14 and warned yesterday that it expects a “resounding” yes vote.
The last industrial dispute between BA management and cabin crew cost the airline £80 million despite a last-ditch agreement that avoided a walk-out. However, the 11th hour deal came too late to prevent thousands of customers from booking elsewhere after BA cancelled flights in advance of looming strikes.
The Chief of Army Staff (COAS), Lt.-Gen. Waidi Shaibu, has tasked troops of Operation SAVANNAH SHIELD to dominate the battlespace and intensify offensive operations against kidnappers, bandits and other criminal elements in the North Central region.
Shaibu gave the directive yesterday during his maiden operational visit to the Headquarters, Joint Task Force North Central (JTF-NC), at Sobi Barracks, Ilorin.
This is contained in a statement by the Acting Director, Army Public Relations, Col. Appolonia Anele, in Abuja, yesterday.
Shaibu said the Nigerian Army would remain resolute in its constitutional responsibility of safeguarding lives and property, stressing that troops must sustain pressure to decisively deny criminal elements freedom of action.
He assured personnel of continued deployment of combat enablers and operational resources to enhance clearance operations and dismantle criminal hideouts across Kwara and Niger states.
The COAS reaffirmed his commitment to troop welfare, noting that improved welfare remained critical to sustaining morale, operational effectiveness and combat readiness.
He urged the troops to remain disciplined, professional and loyal to the Constitution and the democratically elected government.
Earlier, the Theatre Commander, JTF-NC Operation SAVANNAH SHIELD, Maj.-Gen. Yakubu Yahaya, commended the COAS for his strategic leadership and support.
Yahaya assured that troops would remain committed and steadfast in restoring peace and stability in the region.
The Nigerian Navy says it is expanding training and infrastructure to address emerging security threats and strengthen operational efficiency across formations and units nationwide.
The Chief of Naval Staff, Vice Adm. Idi Abbas, spoke during the inauguration of projects at the Nigerian Navy Basic Training School (NNBTS) in Onne, Rivers as part of activities marking the Nigerian Navy’s 70th anniversary.
Abbas, represented by the Flag Officer Commanding, Naval Training Command (NAVTRAC), Rear Adm. Ebiobowei Zipele, said the projects reflected significant progress made by the navy since its establishment in 1956 from the British Royal Navy.
“Training and infrastructure have improved significantly to meet contemporary security challenges and fulfil the navy’s constitutional responsibilities.”
According to him, the anniversary provides the navy an opportunity to reflect on its achievements and contributions over the past seven decades.
Projects inaugurated included a remodelled female trainees’ hostel accommodating more than 500 occupants and an expanded golf course upgraded from one to nine holes.
Others were the NNBTS fuel dump, Chief Boatswain’s Mate House, renovated pharmacy department and a new theatre block at the Naval Medical Centre, Onne.
Abbas described the new theatre as a major milestone for the navy’s medical services.
“Previously, injured personnel requiring surgeries were referred outside the facility.
“With this theatre, surgeries can now be conducted within the base.’’
He added that a 30KVA inverter had also been installed to guarantee uninterrupted electricity supply at the training school.
The naval chief assured officers, ratings and trainees that the navy leadership remained committed to their welfare and wellbeing.
“These infrastructure upgrades show the commitment of the Chief of Naval Staff to addressing operational and welfare challenges promptly,” he said.
In addition, NAVTRAC distributed educational materials to pupils of Community Primary Schools One and Two, Ogale, in Ebubu-Eleme area of Rivers.
Items distributed included exercise books, school bags and other writing materials as part of the navy’s civil-military engagement initiative.
Zipele said the outreach was designed to strengthen relations between the navy and host communities while supporting children’s education.
“Education remains critical to national growth and youth empowerment. Some of these pupils may eventually serve in the Nigerian Navy,” he said.
He noted that the initiative demonstrated the navy’s commitment to educational development, peace, security and sustainable community relations.
Zipele urged the pupils to remain disciplined, focused and committed to their studies while embracing patriotism, integrity and hard work.
He thanked the Ebubu community for its continued support for the naval training command headquarters and the navy.
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