British Airways has warned that it may not survive due to its current cash burn.
The head of British Airways says the carrier is burning through $223 million U.S. a week and could not guarantee its survival, prompting him to urge unions to engage in discussions over 12,000 job cuts that are urgently needed.
British Airways came under heavy attack from lawmakers in Britain’s Parliament who accused the company of taking advantage of a government scheme to protect jobs and then announcing plans to cut its unionized workforce by 28%.
Planes were grounded in March due to coronavirus restrictions, forcing many airlines to cut thousands of staff as they struggle without revenue. Airlines serving Britain now face an additional threat from a new 14-day quarantine rule.
Alex Cruz, the Chief Executive Officer of British Airways, said the job losses are necessary as cash reserves would not last forever and the future was one of more competition for fewer customers. British Airways also wants to change the terms and conditions for all of its workers to give it more flexibility on future staffing decisions.
Cruz urged two unions that represent cabin crew and other British Airways staff to join in discussions on redundancies. Cruz also criticized Britain’s new quarantine rule, due to come into effect on June 8, calling it "another blow to our industry."
