Air Transport World

BA redefines 'regional.' (British Airways Regional)

LONDON--Emergence of British Airways Regional (BAR), a fully owned subsidiary of British Airways, as a low-cost operator on the North Atlantic introduces a volatile new factor into a sector of the airline industry in which competition already is cutthroat and revenue seriously depressed.

Key to the BA decision is the deal it thrashed out recently with its 1,000 staff in BAR that will cut the wage bill by up to 14% and save it 8.2 million [pounds] ($14.5 million) a year. The deal was not easy. Although flight crew and ground staff stepped into line without too much trouble, cabin attendants went the distance and threatened job action before their trade union eventually signed.

BAR was formed by BA earlier this year with instructions to management to achieve a financial turnaround on the airline's loss-making regional routes. …

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