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BA to axe 5,200 jobs
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September 20, 2001: 3:42 a.m. ET
Europe's biggest airline to cut 5,200 jobs in response to terror attacks on U.S.
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LONDON (CNN) - British Airways, Europe's biggest airline, plans to slash 5,200 jobs in response to last week's terrorist attacks on the U.S.
Europe's biggest airline, which has already announced 1,800 job losses, said it would ground 20 aircraft and reduce scheduled flights by 10 percent.
BA, which derives about a third of its revenue from transatlantic flights, has already outlined plans to cut capacity by 18 percent over four years to March 2003, as part of its effort to counter a global economic slowdown.
The hijacking and crashing of U.S. passenger planes into the World Trade Center and the Pentagon has compounded the gloom in the airline industry as demand for travel wanes, forcing the industry to seek government aid to stave of possible bankruptcies.
"The tragic events in the USA will undoubtedly have a significant impact on the demand for air travel in the months ahead," BA Chief Executive Rod Eddington said. " We have taken the necessary steps to curtail expenditure and sadly to cut our workforce."
Debt-laden Swissair estimates revenue losses of about 65 million Swiss francs over the last week. Juergen Weber, the chief executive of German airline Lufthanasa, said late Wednesday it will require "immense efforts" to avoid an operating loss this year.
Lufthansa also said it was postponing orders for up to 15 Airbus A380 aircraft and four Boeing (BA: Research, Estimates) 747-400 wide-bodied jets.
Boeing, the world's biggest commercial jet maker, said late Tuesday it would axe as many as 30,000 jobs, as airlines face bankruptcy following a economic slowdown that has been exasperated by last week's deadly terrorist attacks.
American airlines are seeking $24 billion from the U.S. government to stave of losses. Many have already outlined plans to ground jet, cancel orders and slash some 100,000 jobs. Meantime, European airlines are meeting with European Union officials to see if they too can receive support that would enable them to compete on equal terms with U.S. airlines.
Virgin Atlantic boss Richard Branson told CNN that he was not asking for government handouts but would be interested in receiving favourable credit from banks. His airline is cutting 20 percent of its capacity and slashing 1,200 jobs. 
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