Chris Jasper/LONDON Andrew Doyle/MUNICH
British Airways is considering a radical restructuring of its London Gatwick-based operations that would see all routes of less than 800km (430nm) - or around 35% of services - transferred to its CityFlyer subsidiary.
The move, among several under consideration, aims to exploit the lower cost base of CityFlyer, now owned by BA and also based at Gatwick. It is likely to be opposed by the British Air Line Pilots Association (BALPA), which, say sources, is concerned about the loss of work for mainline BA pilots.
The transfer of sub-800km routes away from "EuroGatwick" (created from Dan-Air and kept separate from BA mainline) would see CityFlyer take over domestic services, plus flights to European destinations such as Paris and Brussels. Route transfers would be phased in over 18 months from the third quarter, sources say.
BALPA officials will meet BA this week to discuss the Gatwick plans. A retirement "bulge" at BA may mean that no pilots would be laid off, although they will still probably fight the proposal. CityFlyer pilots, however, are likely to welcome the airline's expanded role. The subsidiary operates a mix of BAE Systems Avro RJ100s and ATR turboprops, and may take more regional jets. The transfer of EuroGatwick Boeing 737s could also be an option.
An internal briefing paper obtained by Flight International tells BA staff that work transferred "will probably be shorter hops". It says there are no plans to transfer Gatwick long-haul flying to Heathrow, but does not rule it out, and says transfer of short-haul work from Heathrow to EuroGatwick "is quite possible" and would "replace current unprofitable flying". Decisions will be made known "before February", it adds.
Newspaper reports suggest BA is also considering job losses that could cut its workforce by 8,000. The airline is expected to post an operating loss for the year to 31 March, 2000.
• Plans to replace BA Boeing 747-400s with smaller 777-200ERs on long-haul routes may be delayed by a dispute with pilots over crew rest facilities. Sources say its 16 new Rolls-Royce Trent 800-powered 777s lack crew bunks, a changing area and crew toilets, because BA expected them to be deployed on medium-haul routes only.
The airline has already delayed introducing 777s on Beijing flights from next month, after an intervention by BALPA. The aircraft are also due to serve Bangkok, Hong Kong, Kuala Lumpur and Tokyo as part of BA's capacity reduction strategy.
BALPA and BA have agreed an interim solution whereby a first- class seat will be replaced by bunkbeds and a crew toilet, but this will not be available until September and six aircraft will have to be retrofitted. Another retrofit, with beds behind the cockpit and above the passenger cabin, may not be available for two years. BA says BALPA's action will hit revenues and delay business-class cabin replacement in 747-400s.
Source: Flight International