
When the Global Financial Crisis wraps your business plan in shit and throws it at the fan, you can be sure that a working class man or woman will pay the price.
British Airway's recent posting of a record loss of £401m pounds has been helped on it's way by, among other things, the knock-on effect of a reliance on an 'elite' group of customers. As
Ann Pettifor blogs, over half of BA's income was generated by just 11% of customers - those paying Business or First Class prices.
When times were good (were they ever?) the plane operators expanded the space available for their premium customers and thus reduced the space available for economy customers (that's the vast majority of us remember). So in order that Nigel and Crispin could stretch out with their glass of champagne, you had to sit with your elbows in your partner's chest and your knees embedded in the back of the seat in front of you. Still, mustn't grumble, eh?
As these high-flying financiers were contributing more than 40% of BA's revenue, when their jobs started to go and their companies started begging the government for cash (that'll be us again remember? tax revenues?) the impact on BA was inevitable. I should imagine that travel expenses were pretty near the top of the bank's cost cutting lists.
So, saddled with a hefty loss, have BA turned to their shareholders and asked for
last years 5p dividend back? Talk sense.
They've turned to their staff and asked them how they fancy working for nothing. For up to a month. Naturally the Chief Exec, Willie Walsh, is leading the way by giving up his month of July salary of £61k. Yes, that's just one month. No, not three years salary. No, not two years either. No, not the whole year, no. Just the month. Isn't he good? I am sure the baggage handlers and cabin crew will be queuing up to save the company from management ineptitude whilst wondering how they are going to pay their own bills. How could they possibly refuse?
Still look on the bright side, at least they won't have to endure a cramped flight from hell for their two weeks in the sun; they won't be able to afford it.