Change Problems

Topics: 2009, Pension, Retirement Pages: 3 (782 words) Published: April 6, 2013
Change policies and problems in BA 2009-2011
Name: Yanxi,Luo
Student Number: W12019271
Tutor: Emma,Mullen
Introduction: As a most famous and largest British aviation organization, British Airways is destined to be highly concerned by everyone, including its change. British Airways has owned nearly 90 years air service experience sine 1919, and started the firstly world’s daily international scheduled air service (British Airway, 2013). However, British Airways had experienced a series of events from 2009 to 2011, and it contains some relative change policies and problems. Change policy:

Staff cost cutting plans: In 2008-2009 BA got a huge lose nearly GBP 401 million (€ 466.9 on the 16th of July 2009), while the global recession shocked the airline industry (Carley, 2009). Staff could select the way that contains volunteering for among one and four weeks’ unpaid furlough or work, as the distributed salary deduction over three or six months. (Telegraph,2009). British Airways announced to reduce 1,700 staffs in Britain, and to freeze cabin crew’s fundamental payment for two years in 2009(Collins, 2011). BA also decided to recruit new employees with the forward program on different terms and conditions to present employees (BBC, 2009). In the cost-cutting plans, which contain cut a mass of cabin crew on long-distance flights. (BBC, 2010) Service cost cutting scheme: British Airways tests to cut cost and additional charges, for instance not providing meals on those short-haul flights, which are less than 2.5 hours after 10 am; even adding rates on passengers who would like to put a second luggage into the hold. (Babbage, 2009). Financial and Pension scheme: In order to decrease its £ 3.7 bn pension deficit, BA has achieved the deal with its pension trustees on a project. (BBC, 2010). Staff could pay additional 4.5% of income to retain their present benefits, If staff would like to retire at 60 year-old, their contribution charges would be taken to 13% by...
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