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700 Jobs to Go As BAA Plans Big Savings

Posted on: Wednesday, 2 November 2005, 09:00 CST

Airports operator BAA is to slash 700 jobs as part of plans to save pounds 45 million a year.

The group yesterday said that back office and management roles would be removed at Heathrow, Gatwick and Stansted - but it insisted there would be no cuts in frontline security staff.

Details emerged as BAA posted improved results for the six months to September 30, despite the impact of wildcat strikes at Heathrow and the London bombings.

BAA said it also overcame the impact of a slowing UK economy on consumer spending and travel plans to report a 9.6 per cent rise in underlying operating profits to pounds 412 million.

Pretax profit for the six months was pounds 366 million compared with pounds 348 million a year ago.

Retail sales at its seven UK airports, including Gatwick and Stansted, rose 3.8 per cent to pounds 324 million in the first half - a better performance than many high-street chains, which have suffered from a sharp fall in footfall.

Combined with a 2.5 per cent rise in the number of passengers passing through its airports, and higher landing fees, this helped overall revenues to rise by 6.4 per cent to pounds 1.17 billion.

BAA refused to rule out compulsory redundancies.

These threats included passengers spending less in its shops, airports becoming more crowded, staff morale deteriorating and an inability to eliminate outdated working practices before the new Terminal 5 opens at Heathrow.

A spokesman for BAA said: "Of course, we will look to redeploy staff where there is a reasonable prospect of doing so. But it will quickly be apparent where this will not be possible, and those who cannot be placed will have to leave."

The job cuts form part of a restructuring programme known as Delivering Excellence, which is expected to be completed by the end of 2007/8.

"At that stage the organisation will be leaner, better managed and appropriately positioned to deliver excellent and consistent customer service effectively and efficiently," BAA said.

Around pounds 3 million of savings are expected to come on stream in the current financial year, rising to pounds 45 million in three years' time.

BAA added that changes in its supply chain, IT, human resources and capital projects at its three biggest airports were already well under way.

The Transport & General Workers Union (T&G), which represents BAA workers and was at the centre of a strike at Heathrow in August, said it was shocked by the news of job cuts and would take up the issue with the company.

"It does give us cause for concern that a company like BAA has bypassed normal consultation and told 700 staff they have an uncertain future," said T&G national secretary Brendan Gold.

Chris Jones, of Amicus, said: "This news has come as a surprise. We will be meeting the company and will be demanding no compulsory redundancies."

Meanwhile, BAA chief executive Mike Clasper reiterated the view that passengers passing through Heathrow and other UK airports this year should rise by around three per cent

Source: Birmingham Post; Birmingham (UK)

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