UPDATE 1-Northern Foods Q1 hit by contract withdrawals

July 14, 2010 By Leave a Comment

LONDON, July 13 (Reuters) – British food manufacturer Northern Foods (NFDS.L) said sales fell in the first quarter of its fiscal year reflecting its decision to pull out of low margin contracts.

The company, which makes own-label products for retailers as diverse as premium food seller Marks & Spencer (MKS.L) and discounter Aldi, said on Tuesday comparable sales were down 1.6 percent in the quarter to July 3 compared with the year before.

Northern Foods, which is Britain’s biggest seller of Christmas puddings and supplies food to British Airways (BAY.L), stopped making Birds Eye frozen pies in June last year and closed a ready meals factory in Swansea in April this year after failing to agree a contract with J Sainsbury (SBRY.L).

The company, which also makes Goodfella’s pizza and Fox’s biscuits, said it expected trading conditions to remain challenging but is continuing to invest in its brands and technology in order to drive future earnings growth.

Shares in Northern Foods closed on Monday at 46.75 pence, valuing the business at 216 million pounds ($324 million). They have underperformed the UK food producers’ index .FTASX3570 by about 29 percent since the start of the year.

(Reporting by Matt Scuffham; Editing by Lorraine Turner)

($1=.6676 Pound)

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Spanish stocks – Factors to watch on Tuesday

July 14, 2010 By Leave a Comment

July 13 (Reuters) – The following Spanish stocks may be affected by newspaper reports and other factors on Tuesday. Reuters has not verified the newspaper reports, and cannot vouch for their accuracy:

GENERAL ECONOMY:

Spain’s National Statistics Institute is due on Tuesday to publish final inflation data for June. A Reuters survey had predicted a 0.2 percent rise in consumer prices.

IBERIA (IBLA.MC)

Spain’s flagship airline, which is in the process of merging with British Airways (BAY.L), is due to publish its June traffic figures on Tuesday.

Separately, Wall Street Journal cited unnamed sources as saying that the European Union is likely to clear the commercial alliance between American Airlines, British Airways (BAY.L) and Iberia today, as Reuters reported last week [ID:nLDE6680WA].

GAS NATURAL (GAS.MC)

Spanish utility Gas Natural (GAS.MC) is selling one combined-cycle gas power plant and an option to buy another despite a glut of gas generation infrastructure in Spain. [ID:nLDE66B1W8]

TELEFONICA (TEF.MC)

The Spanish Telecom’s giant’s chairman Cesar Alierta speaks at a press conference at 0730 GMT in Madrid to promote the group’s products and applications for the health service.

For real-time moves on the Spanish blue-chip index IBEX please double click on .IBEX

For IBEX constituent stocks highlight .IBEX in the command box and press the F3 button on your keyboard

For latest news on Spanish stock moves double click [HOT-ES]

For Spanish language market report double click on [.MES]

For latest Eurostocks report please double click on [.EU]

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UPDATE 1-EasyJet June passengers rise 9.4 pct

July 7, 2010 By Leave a Comment

LONDON, July 6 (Reuters) – British budget airline easyJet (EZJ.L) flew 9.4 percent more passengers in June year-on-year, its largest monthly increase since before flights were interrupted by a volcanic ash cloud from Iceland in April. The airline carried 4.54 million passenger in June, up from 4.15 million a year ago, while its load factor — a measure of how it fills its planes — increased 0.9 percentage points to 87.2 percent.

Passenger numbers at rival Ryanair (RYA.I) rose 15 percent in June, the Irish airline said on Monday, while they fell 11.1 percent at strike-hit British Airways (BAY.L). [ID:nWLA7687] [ID:nLDE6640HR]

(Reporting by Paul Sandle, Editing by Rosalba O’Brien)

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UPDATE 1-BAA lowers 2010 profit guidance by 10 mln stg

June 25, 2010 By Leave a Comment

LONDON, June 24 (Reuters) – British airport operator BAA on Thursday lowered its 2010 earnings forecast by 10 million pounds ($15 million) reflecting the impact of the volcanic ash cloud, strikes by British Airways (BAY.L) cabin crew and bad weather.

BAA, which is owned by Spain’s Ferrovial (FER1.MC), on Thursday forecast that its 2010 adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) would be 946 million pounds based on its expectation of 85.2 million passengers passing through its airports.

BAA, which owns London’s Heathrow and Stansted airports but sold Gatwick for 1.5 billion pounds in December, said the combined impact from the ash cloud, strike action, and winter snow is forecast to be 40 million pounds.

However, that had been offset by higher than anticipated passenger numbers at times when disruption wasn’t taking place, passengers spending more at retail outlets and lower operating costs.

In a separate statement, BAA said its investment plan for Heathrow airport is expected to be within its original 5.1 billion pounds target.

(Reporting by Matt Scuffham; Editing by Sarah Young)

($1=.6677 Pound)

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BA strikes pension deal to keep merger on track

June 23, 2010 By Leave a Comment

(Reuters) – British Airways said it had agreed a recovery plan for its 3.7 billion pound pension deficit, potentially removing a final obstacle to its planned merger with Spain’s Iberia.

BA said it had reached a deal with the trustees of its Airways Pension Scheme, which last December had a deficit of 1 billion pounds and its New Airways Pension Scheme, which had a 2.7 billion pound black hole.

The airline said on Tuesday the proposals would avoid closing the schemes and maintain BA’s annual contributions at the current level of 330 million pounds, plus agreed annual increases in line with inflation expectations averaging 3 percent.

BA will, however, make additional deficit contributions if its year-end cash balance exceeds 1.8 billion pounds and the two schemes will also be provided with 250 million pounds of additional security over the company’s assets which would become payable in the event of British Airways’ insolvency.

Iberia has the right to pull out of its planned merger with BA if doesn’t deem the pension recovery plan to be satisfactory.

“Iberia has three months to reach a decision on the pension recovery plan,” BA said in a statement.

(Reporting by Matt Scuffham; Editing by Paul Hoskins)

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EU to rule on BA, Iberia merger by July 15

June 12, 2010 By Leave a Comment

June 11 (Reuters) – EU competition regulators will decide by July 15 whether to clear or block a planned $8 billion merger between British Airways (BAY.L) and Spain’s Iberia (IBLA.MC), the European Commission said on Friday.

Stocks | Regulatory News | Mergers & Acquisitions | Global Markets | Airlines

The Commission could also ask the carriers, which notified European Union regulators of their merger plans the previous day, to provide concessions — such as giving up airport slots — to ease possible concerns that the deal may dent competition.

The airlines aim to complete the merger by December and hope it will enable them to compete better with rivals Lufthansa (LHAG.DE) and Air France (AIRF.PA) as well as low-cost carrier Ryanair (RYA.I). It will also clear the way for a tie-up with American Airlines (AMR.N). The Commission, competition watchdog of the 27-country EU, is expected to seek views from customers and rivals on the BA-Iberia merger. It can extend its review by 35 working days if it has concerns or if the two carriers offer concessions. (Reporting by Foo Yun Chee, editing by Dale Hudson)

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Intranets as we know them are dead, digital workplace gathering reveals – IBF 24

June 8, 2010 By Leave a Comment

Highlights from IBF 24 – last week`s 24-hour virtual event for the digital
workplace industry, the largest ever
LONDON & NEW YORK–(Business Wire)–
IBF 24, the largest ever gathering of digital workplace practitioners and
enthusiasts took place on 2-3 June. The growing role of web 2.0 within the
workplace was a key theme, with many speakers and attendees putting forward
their views on this. Firms also gave live demonstrations of how they are
incorporating social media platforms – such as Yammer, Twitter, Facebook,
YouTube and blogs – into their intranets.

Jamie Papas, Enterprise 2.0 & Social Media Strategist at EMC, showcased the
company`s `virtual watercooler`, stating “social conversations enable the
business conversations”. However, several thought leaders in this space noted
that the new-found collaboration within the digital workplace is leading to
governance issues and concerns over big brother-style control over employees.

Hosted by the Intranet Benchmarking Forum (IBF), more than 900 individuals from
544 organisations in 36 countries, registered to hear from the 22 presenting
organisations. These included Aviva, British Airways, BBC, BT, Ernst & Young,
Schroders, T-Systems, and Thomson Reuters. Three intranets were built during the
`Software`s Got Talent` hour – in less than 20 minutes each. Noodle, by Tim
Dorey at Vialect, was the winner with over 50% of the votes. The worldwide
audience participated via Twitter, with more than 1,000 tweets to date, and a
debate arose after Paul Miller, founder and CEO of IBF, controversially tweeted:
“The intranet is dead”.

Miller commented after the event: “We have had a tremendous response to IBF24,
and were very near maximum capacity. The dedication of attendees – some
listening in for the full 24 hours – demonstrates how exciting and radical
workplace 2.0 really is. The organisations leading the way with digital
workplace initiatives are those incorporating the social channels their
employees are using in their day-to-day lives outside work. Internal company
communications are being revolutionised in light of this.”

Key highlights:

* IBF reveals that 75% of employees now work via the digital workplace, not in
physical offices – and this number is increasing
* Several organisations are handing out Flip-style cameras to staff, to document
and share experiences in internal YouTube-style, grass roots videos
* Most management teams are aware that they can`t take a heavy-handed approach
to governance – placing trust in employees to act responsibly when blogging is
resulting in greater collaboration and more open discussions
* According to IBF, it is essential to have a three-year vision of what the
digital workplace looks like across the organisation

Keynote speaker highlights:

* Jeff Jarvis, author of `What Would Google do?` came on air to discuss the
profound changes taking place on the internet, reflecting the new economic model
and the ruse of new media such as LinkedIn and Twitter.
* Steve Krug talked about the issue of usability, and the challenges that will
arise with the introduction of new technologies, such as the iPad.
* Loic Le Meur,CEO of Seesmic, looked at how new networks, such as Twitter and
Facebook are impacting the digital workplace.

See Twitter stream: #IBF24.

Selected downloads of the individual demonstrations and presentations will be
available on-demand shortly from www.ibforum.com.

Notes to media

About the Intranet Benchmarking Forum
The Intranet Benchmarking Forum (IBF) is a confidential, members-only intranet
benchmarking group of leading European, US and global organisations. IBF is the
leading authority on intranet measurement and best practice. Members include
HSBC, KPMG, ExxonMobil, Burger King, Nokia, Pfizer, IKEA and Deutsche Telekom.
IBF helps members maximise the value of their intranets through benchmarking,
interaction and research. For more information, please visit: www.ibforum.com

Metia for Intranet Benchmarking Forum
Eisha Cooke
Tel: +44 (0)20 3100 3697
Email: eisha.cooke@metia.com

Copyright Business Wire 2010

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BA not neglecting strike peace talks: CEO Walsh

June 8, 2010 By Leave a Comment

(Reuters) – British Airways Chief Executive Willie Walsh said Monday he was “absolutely determined” in its dispute with cabin crew and dismissed union suggestions that he had neglected the crisis to travel abroad.

“What we are doing is absolutely right. We are looking to secure the long-term viability of BA,” Walsh told Reuters on the sidelines of the annual meeting of global airlines group IATA in Berlin.

“I am here on business … We have people available to meet and are ready to talk.”

British Airways cabin crew started their latest five-day strike Saturday in a long-running dispute which has so far cost the airline more than 120 million pounds ($173 million).

The strikes stem from BA’s decision last November to cut cabin crew pay and alter staffing levels on its flights.

Shares in BA, which have fallen 11 percent in the last three months, were 1.4 percent down at 197.9 pence by 1045 GMT, valuing the company at around 2.3 billion pounds.

Walsh and Unite, which represents BA’s cabin staff, blame each other for a breakdown in communication.

Derek Simpson, joint general secretary of Unite, said on his Twitter page that Walsh’s absence meant no meetings were possible, with Walsh out of the country until Tuesday.

“I have made it clear that I am available anytime day or night to meet with BA and Willie Walsh to attempt to resolve this dispute,” Simpson said in a statement.

Meanwhile, one of Unite’s joint leaders, Tony Woodley, was criticized in the British press Monday for flying off on holiday to Cyprus late last week as union members continue to strike.

The issue of travel allowances for cabin crew has become a serious sticking point in the conflict, which comes at a difficult time for BA.

“We have made it absolutely clear that if BA re-instates our members’ travel concessions we would suspend the strike action,” said Simpson.

A BA spokesman said conciliation service ACAS was trying to arrange discussions between the two parties but that no peace talks were planned.

Talks over the past six months have failed to yield a resolution, with the walkouts having caused BA to ground flights on 19 occasions so far.

The latest strike took place less than a week before the start of the soccer World Cup in South Africa and followed a five-day stoppage which ended Thursday. There was a four-day walkout last week and seven days of stoppages in March.

A BA spokesman said conciliation service ACAS was trying to arrange discussions between the two parties but that no peace talks were planned.

(Additional reporting by Kylie Maclellan; Editing by James Regan and Jon Loades-Carter)

($1=.6929 Pound)

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Airlines body IATA demands unions quit picketing

June 8, 2010 By Leave a Comment

(Reuters) – The global airline body slammed unions for walking off the job at a time when carriers are struggling to turn a profit, dealing with a toxic mixture of ballooning costs, airspace closures and a weak economic environment.

“Pilots and crew must come down to earth. Strikes at this time are short-sighted nonsense,” International Air Transport Association (IATA) Chief Executive Giovanni Bisignani said in his opening address at the body’s annual meeting on Monday.

IATA said earlier on Monday it now expects the world’s airlines to post a $2.5 billion profit this year, an improvement of more than $5 billion from its March forecast.

But airlines in Europe will report a combined $2.8 billion loss this year, hit by fallout from a volcanic ash cloud that swept across Europe in April and shut airspace across large parts of the continent as well as labor strikes, it said.

“Labor needs to stop picketing and cooperate,” IATA’s Bisignani said.

Thousands of travelers have been stranded around the world this year as cabin crew and pilots walked off the job to push for higher wages or more job security.

British Airways (BAY.L) cabin crew on Saturday started a five-day strike — their latest in a series of walkouts since March — in a long-running dispute that has so far cost the London-based airline about 120 million pounds ($173.2 million).

German flagship carrier Lufthansa (LHAG.DE) lost almost 50 million euros ($59.7 million) when its pilots went on strike in February and took its union to court to stop the walkout.

Lufthansa Chief Executive Wolfgang Mayrhuber told Reuters on Sunday talks with the pilots were progressing but gave no indication of how close the parties were to an agreement.

BA CEO Willie Walsh, taunted by union leaders for going to Berlin for the meeting and not staying in London to negotiate, roundly criticized the Unite union that represents cabin staff.

“They failed in their efforts to ground BA and they will fail in any future efforts to do so,” Walsh told Reuters on the sidelines of a Oneworld airline alliance presentation, of which BA is a member.

Walsh said there was no point at which there would be an unacceptable trade-off between the savings from the cuts and the cost of the strikes, the cuts had to be implemented to preserve the airline’s future.

U.S. airlines have also been struggling to cut labor costs.

American Airlines owner AMR Corp (AMR.N) has long maintained that its labor costs are above industry average partly because it restructured outside of bankruptcy, while some rivals have used Chapter 11 protection to slash costs in recent years.

U.S. airlines have also been struggling to cut labor costs.

American Airlines owner AMR Corp (AMR.N) has long maintained that its labor costs were above industry average partly because it restructured without declaring bankruptcy, while some rivals were able to slash costs under Chapter 11 protection.

American Airlines Chief Executive Gerard Arpey told reporters on the sidelines of the IATA meeting his company had a staff cost disadvantage of $600 million a year compared to other major airlines.

($1=.6929 Pound)

($1=.8375 Euro)

(Reporting by Maria Sheahan, Ben Berkowitz and Adrian Murdoch; editing by Karen Foster)

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Airlines body IATA demands unions quit picketing

June 8, 2010 By Leave a Comment

BERLIN, June 7 (Reuters) – The global airline body slammed unions for walking off the job at a time when carriers are are struggling to turn a profit, dealing with a toxic mixture of ballooning costs, airspace closures and a weak economic environment.

“Pilots and crew must come down to earth. Strikes at this time are short-sighted nonsense,” International Air Transport Association (IATA) Chief Executive Giovanni Bisignani said in his opening address at the body’s annual meeting on Monday.

IATA said earlier on Monday it now expects the world’s airlines to post a $2.5 billion profit this year, an improvement of more than $5 billion from its March forecast. [ID:LDE6560L6]

But airlines in Europe will report a combined $2.8 billion loss this year, hit by fallout from a volcanic ash cloud that swept across Europe in April and shut airspace across large parts of the continent as well as labour strikes, it said.

“Labour needs to stop picketing and cooperate,” IATA’s Bisignani said.

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For a graphic of travel stocks and oil prices click on:

here

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Thousands of travellers have been stranded around the world this year as cabin crew and pilots walked off the job to push for higher wages or more job security.

British Airways (BAY.L) cabin crew on Saturday started a five-day strike — their latest in a series of walkouts since March — in a long-running dispute that has so far cost the London-based airline about 120 million pounds ($173.2 million). [ID:nLDE653210]

German flagship carrier Lufthansa (LHAG.DE) lost almost 50 million euros ($59.7 million) when its pilots went on strike in February and took its union to court to stop the walkout.

Lufthansa Chief Executive Wolfgang Mayrhuber told Reuters on Sunday talks with the pilots were progressing but gave no indication of how close the parties were to an agreement.

BA CEO Willie Walsh, taunted by union leaders for going to Berlin for the meeting and not staying in London to negotiate, roundly criticized the Unite union that represents cabin staff.

“They failed in their efforts to ground BA and they will fail in any future efforts to do so,” Walsh told Reuters on the sidelines of a Oneworld airline alliance presentation, of which BA is a member.

Walsh said there was no point at which there would be an unacceptable trade-off between the savings from the cuts and the cost of the strikes, the cuts had to be implemented to preserve the airline’s future.

U.S. airlines have also been struggling to cut labour costs.

American Airlines owner AMR Corp (AMR.N) has long maintained that its labour costs are above industry average partly because it restructured outside of bankruptcy, while some rivals have used Chapter 11 protection to slash costs in recent years.

U.S. airlines have also been struggling to cut labour costs.

American Airlines owner AMR Corp (AMR.N) has long maintained that its labour costs were above industry average partly because it restructured without declaring bankruptcy, while some rivals were able to slash costs under Chapter 11 protection.

American Airlines Chief Executive Gerard Arpey told reporters on the sidelines of the IATA meeting his company had a a staff cost disadvantage of $600 million a year compared to other major airlines. ($1=.6929 Pound) ($1=.8375 Euro) (Reporting by Maria Sheahan, Ben Berkowitz and Adrian Murdoch; editing by Karen Foster)

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British Airways becomes worst UK airline to lose luggage

June 4, 2010 By Leave a Comment

London, June 4 (ANI): British Airways has topped the list of UK airlines for losing, delaying and damaging passengers’ luggage, according to a survey.

The airline image has suffered a blow after the survey, as it has already endured months of strike chaos and resultant financial turmoil.

Based on responses from more than 2,000 recent flyers across the UK, the survey showed that one in 3.8 British Airways passengers has had their checked luggage lost, delayed or damaged in the last five years, The Scotsman reports.

UK-based airlines made up seven of the eight worst airlines for luggage difficulties. Virgin Atlantic was named second-worst airline with one in 8.3 passengers having luggage problems.

Third was Dubai-based carrier Emirates (one in nine passengers affected), fourth was easyJet (one in 11.1) and fifth was Ryanair (one in 12.5).

Overall in the UK only a quarter of those airline passengers whose luggage was damaged received compensation from the airline, according to the survey by insurance company LV, The Scotsman reports.

Those who were compensated received an average of just 72 pounds for their damage. Thirty per cent of travellers waited three months or more to be compensated for their damaged luggage.

A total of 38 per cent had to wait for between one week and a month, while just 20 per cent were compensated for the damage within a week.

When it comes to lost luggage, only 27 per cent were reunited with their bags within 24 hours, the paper reports.

British Airways branded the statistics quoted in the survey as ludicrous, and said: “The claims made in the LV press release are complete rubbish. There is absolutely no evidence to suggest that a quarter of BA passengers have experienced lost or delayed baggage over the last five years.”

Worst airlines for lost luggage

1. British Airways: one in 3.8 passengers

2. Virgin Atlantic: one in 8.3 passengers

3. Emirates: one in 9 passengers

4 EasyJet: one in 11.1 passengers

5. Ryanair: one in 12.5 passengers

6. Thomas Cook: one in 14.2 passengers

7. Bmi: one in 16.6 passengers

8. Bmibaby: one in 20 passengers (ANI)

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BUY OR SELL-Will tie-ups, cost cuts give BA long-term boost?

June 3, 2010 By Leave a Comment

LONDON, June 2 (Reuters) – British Airways’ (BAY.L) merger-driven cost-cutting plans and improving underlying business could make the stock an attractive long-term proposition, but costly disruptions pose potential hurdles.

Shares in BA fell 11 percent in May, compared to the European travel sector’s .SXTP 7 percent drop. Some see the sell-off as an opportunity to buy into BA as restructuring efforts and imminent tie-ups with Spain’s Iberia (IBLA.MC) and American Airlines (AMR.N) could reap long-term rewards.

Others fear the fallout from continued strikes, the sluggish global economic recovery and the volcanic ash cloud from Iceland could weigh on the stock.

BA trades on 102 times forecast 2011 earnings, compared to 33 times for Lufthansa (LHAG.DE), 11 times for Iberia and 11.6 and 13.6 times for low-cost carriers easyJet (EZJ.L) and Ryanair (RYA.I), according to Thomson Reuters StarMine.

BUY

BA has predicted a return to break-even next year after two years of record losses as a slump in travel caused by the global economic downturn eases, helped by a recovery in first- and business-class traffic — the most profitable part of its passenger business.

Of the top 20 analysts covering BA, 12 have a ‘buy’ rating on the stock, seven rate it ‘hold’, while one recommends investors sell, according to Thomson Reuters StarMine.

“The return of the long-haul premium customer should have significant implications for profitability going forward,” said Nomura analyst Andrew Evans, who rates the stock a ‘buy’.

“Long-haul premium revenue accounts for 40 percent of passenger revenues and is currently growing at between 10 and 15 percent.”

The Iberia merger, which BA expects to complete by year’s end, will save it around 400 million euros ($486 million) a year, while a three-way alliance with American — should it be cleared by regulators — will help it slash staff and pricing costs.

“The American tie-up is expected to be approved by July and although cost savings from this have not been quantified by BA, we expect around 150 million pounds ($219 million) of revenue synergies,” said Citigroup analyst Andrew Light, who is a ‘buy’ on BA.

“We expect cabin crew strike situation to be resolved shortly and would buy on strike action.”

SELL

Others, however, are much more pessimistic about the implications of further industrial action. [ID:nLDE64U10P]

“If the current cabin staff dispute is not settled soon, far from breaking even current year results could be even worse than last year,” said BGC Partners senior strategist Howard Wheeldon, who would sell the stock given the uncertainty surrounding BA.

“Even before the second month of BA’s new financial year is over we may need to build in a 300 million pound loss effect from strikes and volcanic dust.”

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For a graphic showing the performance of BA shares since April, click on:

here

For a timeline on the industrial action affecting British Airways, please click on [ID:nLDE64N0U0] ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>

Societe Generale analyst Jonathan Wober, who has a ‘hold’ rating on BA, is cautious on flag carrier stocks due to “uncertainties over the ongoing recovery” because of “macroeconomic factors and any further volcanic ash disruption”.

BA’s 2.7 billion pound pension deficit could also be a deal breaker in its merger with Iberia, which has reserved the right to walk away if the UK pensions regulator forces bigger costs on BA to sort out the shortfall than it thinks is affordable.

(Editing by Michael Shields)

($1=.6852 Pound)

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BA, striking union plan further talks

June 2, 2010 By Leave a Comment

June 1 (Reuters) – British Airways Plc (BAY.L) and officials from the Unite trade union plan further talks later on Tuesday to try to resolve a dispute with cabin crew staging the latest in a series of strikes.

Industrials

Cabin crew began a five-day strike on Sunday, coinciding with a week of school holidays, after talks between Unite and the airline failed to reach agreement last week.

Another five-day strike, stemming from a long-running dispute over the airline’s cost-cutting drive and staffing levels, is due to start on June 5, less than a week before the start of the soccer World Cup in South Africa.

“There is a meeting today with BA, later this afternoon,” a spokesman for Unite said.

He gave no further details. Unite joint general secretary Tony Woodley was expected to attend, having left the union’s policy conference in Manchester.

Mediation service Acas said it would host the talks at an undisclosed location after left-wing protesters disrupted a previous round of talks.

BA said it had been operating 70 percent of long-haul flights from London Heathrow and 55 percent of short-haul services from the airport during the latest strike. Flights out of London Gatwick and City airports were unaffected.

Unite has said it could hold a further ballot for strike action during the peak summer holiday months of July and August.

The stoppages have happened at a difficult time for the airline and come on top of seven days of walkouts in March that cost BA 43 million pounds ($63 million).

Last month, BA reported a second straight year of record losses and it is battling a global economic downturn and industry-wide recession as well as disruption caused by volcanic ash drifting over Europe from Iceland.

Both sides in the dispute have claimed that a deal over pay and cuts to staffing levels and travel was not too far away but have blamed each other for the lack of progress. Unite has offered to suspend the walkouts if the airline restores travel perks stripped from striking crew. (Reporting by Keith Weir, editing by Will Waterman)

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Union warns British Airways of further strikes

June 1, 2010 By Leave a Comment

(Reuters) – British Airways could face even more strike disruption this summer unless it resolves a dispute with cabin crew over travel perks, the co-leader of Britain’s biggest union Unite said on Monday.

Cabin crew began a second five-day strike on Sunday, ahead of a week of school holidays, after talks between Unite and the airline failed to reach an agreement last week.

Both sides in the dispute have claimed a deal over pay and cuts to staffing levels and travel could be close but blame each other for the lack of further progress. Unite have offered to suspend the walkouts if the airline restores travel perks stripped from striking crew.

A third wave of strikes, which stem from a long-running dispute over the airline’s cost-cutting drive, are due on June 5, days before the start of the World Cup soccer tournament in South Africa.

Tony Woodley, the joint general secretary of Unite, told delegates at a union conference on Monday that a new ballot for continued industrial action could be only a week or so away.

“There is only one thing to do with bullies — that is stand up to them until they learn some manners,” Woodley said, according to extracts from his speech issued by the union.

Woodley addressed BA chief executive Willie Walsh directly in his speech.

“We all know there is a deal to be done at British Airways, one that recognizes the real commercial needs and problems of your company as well as our members’ legitimate interests. Unite is ready to do that deal,” he said.

“But we are not, and never will be prepared to see our members and our union humiliated, victimized and reduced to ruins.”

The stoppages have happened at a difficult time for the airline and come on top of seven days of walkouts in March which cost BA 43 million pounds ($62.75 million).

Earlier this month BA reported a second straight year of record losses as it battles a global economic downturn and industry-wide recession as well as disruption caused by volcanic ash drifting over Europe from Iceland.

(Editing by Greg Mahlich)

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Union warns British Airways of further strikes

June 1, 2010 By Leave a Comment

May 31 (Reuters) – British Airways (BAY.L) could face even more strike disruption this summer unless it resolves a dispute with cabin crew over travel perks, the co-leader of Britain’s biggest union Unite said on Monday.

Cabin crew began a second five-day strike on Sunday, ahead of a week of school holidays, after talks between Unite and the airline failed to reach an agreement last week.

Both sides in the dispute have claimed a deal over pay and cuts to staffing levels and travel could be close but blame each other for the lack of further progress. Unite have offered to suspend the walkouts if the airline restores travel perks stripped from striking crew.

A third wave of strikes, which stem from a long-running dispute over the airline’s cost-cutting drive, are due on June 5, days before the start of the World Cup soccer tournament in South Africa.

Tony Woodley, the joint general secretary of Unite, told delegates at a union conference on Monday that a new ballot for continued industrial action could be only a week or so away.

“There is only one thing to do with bullies — that is stand up to them until they learn some manners,” Woodley said, according to extracts from his speech issued by the union.

Woodley addressed BA chief executive Willie Walsh directly in his speech.

“We all know there is a deal to be done at British Airways, one that recognises the real commercial needs and problems of your company as well as our members’ legitimate interests. Unite is ready to do that deal,” he said.

“But we are not, and never will be prepared to see our members and our union humiliated, victimised and reduced to ruins.”

The stoppages have happened at a difficult time for the airline and come on top of seven days of walkouts in March which cost BA 43 million pounds ($62.75 million).

Earlier this month BA reported a second straight year of record losses as it battles a global economic downturn and industry-wide recession as well as disruption caused by volcanic ash drifting over Europe from Iceland. (Editing by Greg Mahlich)

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BA and Unite strike talks to resume on Friday

May 29, 2010 By Leave a Comment

British Airways said it would resume talks later on Friday with the union representing striking cabin crew in an attempt to avert a further 10 days of industrial action planned by staff over the coming weeks.

“We expect talks will resume today and hope that a peaceful resolution can be found,” a BA spokesman said.

Cabin attendants are in the final day of a five-day strike, protesting over reduced staffing levels and cuts to benefits. The stoppage follows seven days of walkouts in March, which cost BA 43 million pounds ($62 million).

Unite, which represents the bulk of the airline’s cabin crew, has threatened another 10 days of strikes if the dispute is not resolved.

A new five-day walkout is due to begin on Sunday, with a further five-day stoppage set to start on June 5.

The stoppages come at a difficult time for BA, which last week reported a second straight year of record losses and is battling a global economic downturn and industry-wide recession.

Ongoing industrial action, coupled with further disruption to flights in April caused by ash from an Icelandic volcano, could scupper BA’s hopes of avoiding a third year of losses.

Unite said it would resume talks on Wednesday in a bid to end the dispute, which it claims could cost as much as 152 million pounds if the extra ten days of stoppages go ahead.

However, the loss-making carrier said that in the event of another 5-day strike next week, its longhaul schedule at London’s Heathrow airport would be increased to more than 70 percent of flights, from 60 percent this week.

It aims to increase the shorthaul schedule at Heathrow to 55 percent of flights from 50 percent and operate a full schedule from London’s Gatwick and City airports.

BA, which flies around 90,000 passengers a day, said about a quarter of its passengers would be affected by the strikes, but that they could claim a full refund, rebook or reroute their journey.

Previous negotiations in the long-running dispute have been acrimonious. The last round of talks ended on Wednesday with little sign of a breakthrough.

BA chief executive Willie Walsh and leaders of Unite blame each other for a breakdown in communication.

The issue of travel allowances for cabin crew has become a major sticking point in the conflict. Unite had offered to postpone the strikes if travel allowances for cabin crew are reinstated.

Shares in BA, which have risen 10 percent in the last week, were 0.9 percent up at 206 pence by 0830 GMT, valuing the business at around 2.2 billion pounds.

(Reporting by Rhys Jones; editing by Paul Hoskins)

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BA to resume talks with cabin crew union

May 27, 2010 By Leave a Comment

British Airways said it would resume talks with the union of striking cabin crew later on Wednesday in an attempt to avert further industrial action.

Cabin attendants are in the third day of a five-day strike, protesting over staffing levels and cuts to benefits. The stoppage follows seven days of walkouts in March.

Previous negotiations in the long-running dispute have been acrimonious. The last round of talks ended in chaos over the weekend when left-wing protesters stormed the negotiations.

“I really hope we can pick up the momentum of the talks from where we were on Saturday before we were invaded,” Tony Woodley, joint general secretary of the Unite union, told the BBC.

He said Saturday’s meeting was the first time that he felt that was a genuine will to work towards a settlement.

Unite, which represents the bulk of the airline’s cabin crew, has threatened another 10 days of strikes if the dispute is not resolved.

BA said it was upping the number of flights it plans to run during the next wave of strikes, from May 30 to June 3, after more staff than expected decided to work during this week’s industrial action.

The airline said its Heathrow longhaul schedule would be increased to more than 70 percent of flights, from 60 percent this week, while the shorthaul schedule would rise to 55 percent of flights, from 50 percent.

Woodley repeated his offer to postpone the strikes if travel allowances for cabin crew, which have become a major sticking point in the conflict, are reinstated.

“Put the travel back as a gesture, and we will postpone the strike to finalise any other discussion,” he said.

(Reporting by Avril Ormsby and Kylie MacLellan; Editing by David Cowell)

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BA says to resume talks with union in attempt to avert strike

May 27, 2010 By Leave a Comment

British Airways is set to resume talks with the Unite union later on Wednesday in an attempt to avert further strike action, the airline said.

Cabin crew are currently in their third day of a five-day strike, protesting over job and pay conditions.

The Unite union representing the bulk of the crew has threatened another 10 days of strikes if the dispute is not resolved.

No further details on the talks were available.

(Writing by Avril Ormsby; Editing by Kylie MacLellan)

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BA, union fail to agree as strike nears

May 24, 2010 By Leave a Comment

British Airways cabin crew were bound for a five-day strike this week after the airline and union leaders failed to resume talks on Sunday, blaming each other for the communication breakdown.

Without a last gasp deal, the first of three five-day protests planned in response to BA’s cost-cutting drive will go ahead on Monday.

Negotiations to avoid the strike broke down on Saturday evening after protesters gate-crashed the talks.

BA and Unite union chiefs had hoped to resume talks on Sunday but none were arranged and both sides took to the airwaves to argue their points, making it all but inevitable that the strike will go ahead.

Unite co-leader Tony Woodley offered to call off the industrial action if BA reinstated travel allowances for striking staff.

“Let’s stop the inconvenience to the British travelling public … Let’s get the travel back on for our people and let’s finalise a deal hopefully over these next couple of days,” Woodley told reporters in London.

The airline was unmoved.

“This position reinforces our view that (cabin crew union) Bassa, at the centre of this dispute, is not serious in trying to come to a negotiated agreement with British Airways — and that Tony cannot control Bassa,” BA said in a statement.

“We call on him to call off the strike action and return to the table with (mediator) ACAS to finish the discussions that started yesterday.”

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British Airways Chief Executive Willie Walsh said earlier on Sunday he was hopeful of a deal in the long-running dispute over the airline’s cost-cutting drive but said the company had contingency plans in place to keep services running.

“BA will survive and we will be stronger because we are tackling the core issues,” he told the BBC. “We will not allow Unite, the union, to ground BA.”

The airline said all flights at London Gatwick and London City airports would operate as normal.

“At Heathrow we expect to operate more than 60 percent of long haul services and more than 50 percent of short haul flights and we will add to that schedule where we can,” BA said.

Walsh said he had also been angered by the union’s joint leader Derek Simpson who had sent out live updates on the Twitter microblogging site during Saturday’s talks.

The airline is trying to get a deal with Unite to save 62.5 million pounds ($89.81 million) a year.

Unions are particularly angered by disciplinary action taken by BA against striking staff and the removal of travel perks.

On Friday, BA reported its biggest annual loss since privatisation in 1987 due to the recession, bad weather and industrial disputes.

(Editing by Elizabeth Fullerton and Louise Heavens)

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Union says will suspend BA strikes if demands met

May 24, 2010 By Leave a Comment

British Airways cabin crew will call off a five-day strike due to start on Monday if their travel perks are reinstated, Unite union co-leader Tony Woodley said on Sunday.

Talks between the two sides aimed at avoiding three five-day strikes over pay and conditions broke down on Saturday evening after protesters gate-crashed the talks. Both sides had hoped to resume negotiations on Sunday but none had been arranged.

“Let’s stop the inconvenience to the British travelling public … Let’s get the travel back on for our people and let’s finalise a deal hopefully over these next couple of days,” Woodley told reporters in London.

Cabin crew have been angered by the removal of travel benefits from striking staff in a long-running dispute over BA’s cost-cutting drive.

Woodley’s announcement came shortly after British media reported that the union were pulling the plug on the talks and that the first wave of strikes would go ahead.

A spokeswoman for the airline had earlier said they were still willing to negotiate.

British Airways Chief Executive Willie Walsh said he was hopeful of a deal in the long-running dispute over the airline’s cost-cutting drive but said the company had contingency plans in place to keep services running.

“BA will survive and we will be stronger because we are tackling the core issues,” he told the BBC earlier on Sunday. “We will not allow Unite, the union, to ground BA.”

Walsh said he had also been angered by the union’s joint leader Derek Simpson who had sent out live updates on the Twitter microblogging site during Saturday’s talks.

The airline is trying to get a deal with Unite to save 62.5 million pounds ($89.81 million) a year.

Unions are particularly angered by disciplinary action taken by BA against striking staff and the removal of travel perks.

On Friday, BA reported its biggest annual loss since privatisation in 1987 due to the recession, bad weather and industrial disputes.

(Reporting by Matt Falloon and Kate Holton; Editing by Elizabeth Fullerton and Louise Heavens)

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