LONDON, England - June 16, 2009 - British Airways has asked its 40,000 staff to work without pay for up to a month as the ailing airline seeks to cut costs.

The group, which made a record £401 million loss in 2008 amid surging fuel prices and a collapse in premium-fare passengers, is seeking to reduce costs dramatically and has already offered staff unpaid leave or a reduction in hours.

Willie Walsh, BA’s chief executive officer, has now gone a step further by asking staff to volunteer for between one and four weeks of unpaid work in what he says is a “fight for survival.”

Walsh, who said last week that he would work for free in July, has set a deadline of June 24 for employees to volunteer for unpaid work. He said that the salary deductions would be spread over three to six months wherever possible.

 

BA denied that those staff that volunteered for unpaid work would be given preference if the airline imposes a further round of redundancies.

The airline is currently negotiating pay deals and job reductions with its ground handling staff, pilots and cabin crew, who have been told that the airline needs to settle discussions by the end of the month. In total, BA is thought to be seeking as many as 4,000 job cuts, including 2,000 voluntary redundancies among the 14,000 cabin crew.