British Airways is paying its cabin crew and pilots up to twice as much as rival airlines, prompting the carrier to demand significant cuts from its staff.
Data from the Civil Aviation Authority (CAA) shows for the first time how much higher BA’s wage costs are than its rivals. The average salary for BA’s 14,000 cabin crew, including bonuses and allowances, is £29,900, compared with £14,400 at Virgin Atlantic and £20,200 at easyJet. BA’s pilots earn an average of £107,600, compared with £89,500 at Virgin and £71,400 at easyJet.
BA began intensive negotiations with trade unions representing its cabin crew yesterday in an attempt to cut costs. It wants to reduce crew numbers by the equivalent of 2,000, through voluntary redundancy or staff turnover. If this target is not reached, the airline will consider making compulsory redundancies.
The airline has also put forward a range of 32 cost-saving measures that it wants to discuss with unions. These include cutting holidays by two days to 34 and reducing the allowances for overseas travel. BA lost £401 million last year after a collapse in passenger numbers and is demanding cost reductions from all parts of its business.
Unions representing cabin crew and ground staff have said that they are willing to consider temporary cuts to help the airline through the recession but they have ruled out permanent changes to employee terms and conditions.
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BA’s pilots are expected to be balloted next week on a series of cuts that will limit their future pay to last year’s level. The airline wants to agree changes to pay and conditions by the end of this month, prompting fears that it could be crippled by strikes this summer.
The CAA salary figures for 2008 include gross basic pay, overtime, flying bonuses and subsistence allowances. Virgin’s cabin crew are paid less because Sir Richard Branson’s airline typically hires younger staff who are attracted by its fun image. EasyJet, the budget airline, pays its crew more on average than bmi, another low-cost airline, because it has been forced to after rapid growth in recent years. BA and Unite, the union that represents BA’s cabin crew, both declined to comment.