BA dismisses job cuts report

LONDON, England -- British Airways say it is carrying out a major review of its operations amid reports that up to 10,000 jobs could be at risk.

Company spokesman Richard Goodfellow said it will report in February next year whether it needs to cut more jobs to cope with the huge downturn in passenger traffic following the events of September 11.

BA announced in mid-November the launch of a review, known as "The Future Size and Shape Project," to examine if the airline needed to scale down operations further, and this review would be completed in February 2002.

But Goodfellow said reports in the British press on Sunday of plans to slash jobs were "pure speculation."

BA -- Europe's largest airline by traffic -- has already announced plans to shed 7,000 jobs in recent months.

"Yes the review is happening led by five senior managers, but it is not likely to report until February," Goodfellow told Reuters.

The Observer newspaper reported in its Sunday edition that BA had drawn up secret plans to axe up to 10,000 jobs and slash flights to avert financial disaster.

The paper said the airline is planning to cut the workforce to 47,000 from 57,000 by shedding pilots, cabin crews, managers, overseas workers and engineers.

It would also close loss-making regional operations in Britain, cut up to half its remaining European services, and also surrender routes from Gatwick and Heathrow to continental Europe to low-cost airlines, the newspaper said.

A spokeswoman for T&G, the main union at BA, said she hoped the review could be undertaken without any job losses.

She told the Press Association: "We are aware of the review and are aware that the situation has become very serious.

"We are in regular dialogue with the company and will talk to them about what their business needs are and how we can deliver a sure footing for them without the need for job losses."

Last month BA Chief Executive Rod Eddington told CNN of tougher times ahead for the airline.

Speaking after BA revealed a 97 percent fall in pre-tax profits in the second quarter, Eddington there could bad news on the jobs front.

"We are looking hard at what we need to do to our business over and above what we've already announced. We are clearly thinking about the size and shape of British Airways going forward.

"It may be necessary for us again to look at the number of people we employ and the sort of things we do.

"If that is necessary we'll be working with the unions and our staff to move forward in a sensible way."