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Rod Eddington responds to media speculation over company's future direction
British Airways Chief Executive Officer, Rod Eddington, has given his response to media speculation in the UK regarding future job losses and network changes at the airline. Mr Eddington said: "Some of this weekend's newspapers in the UK contained speculation about British Airways' future, including completely unfounded estimates of possible jobs cuts.
"As has been announced, there is a team of senior BA managers looking closely at what the future size and shape of our airline should be in the light of the crisis facing the aviation industry. "However, nothing has yet been decided and there are no firm decisions expected until February at the earliest. The reports in this weekend's newspapers represent the inevitable media speculation surrounding our business at this time."British Airways recently launched its "Future Size and Shape" project which will involve an internal review of its network and operations. The project team is made up of five senior managers from across the business including representatives from finance, marketing, network planning, economics and an general manager.December 10, 2001
Traffic and capacity statistics - November 2001 Summary of the headline figures
Capacity in November, measured in Available Seat Kilometres, was 14.6 per cent below November 2000. Traffic, measured in Revenue Passenger Kilometres, fell 17.8 per cent. The reduction in traffic comprised a 24.8 per cent decline in premium traffic and a 16.3 per cent fall in non-premium traffic. Passenger load factor of 63.9 per cent was down 2.4 points on November 2000. Cargo, measured in Cargo Tonne Kilometres, fell by 18.8 per cent.
Market conditionsTrading remains challenging. Although the traffic performance versus last year in November improved on October much of this was driven by successful promotional activity. Non-premium traffic has been responsive to this type of price stimulation. Premium traffic remains weak. The adverse mix and promotional activities are impacting yields.
Strategic developmentBritish Airways launched a UK based promotion in conjunction with Associated Newspapers offering tickets with savings of up to 60% against the lowest published fare. More than 100,000 discounted tickets were offered for sale during the promotion, for travel between 25 November 2001 and 21 March 2002. British Airways' Concorde returned to commercial service between London Heathrow and New York's JFK airport. In addition, Concorde services to Barbados resumed on 1 December, with one service per week between Heathrow and Bridgetown. This service will operate for the winter season, until 13 April 2002.British Airways announced that it is expanding capacity to Tobago, Grenada, Antigua and St Lucia for the winter to cope with the increased demand. The airline will operate two additional Boeing 777s per week: one from Gatwick to Tobago and Grenada from 3 February to 24 March 2002 (currently three services per week) and one from Gatwick to Antigua and St Lucia from 4 February to 25 March 2002 (currently two services per week).The CAA published its preliminary proposals for setting charges at Heathrow, Gatwick and Stansted for the five years from April 2003 to March 2008. The Secretary of State for Transport, Local Government and the Regions announced that the Government has decided to approve the building of Terminal 5 at London's Heathrow airport.British Airways announced the retirement of David Hyde, director of safety, security and environment, after 34 years with the company. David will leave the airline at the end of March 2002 and will be succeeded by Geoff Want, general manager operations control. Geoff has held a number of senior positions during his 25 years in the airline. David will continue to be actively involved on behalf of British Airways in a number of key non-executive roles.
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