BA staff subsidies take £2.7m hit

Published on Wednesday 23 September 2009 21:21

BRITISH Airways is cutting cut staff food subsidies to save £2.7 million a year.

The airline yesterday said it was no longer "financially feasible" to subsidise staff catering by up to 60 per cent, which costs the company 6.5m a year.

BA also announced "modest and proportionate" price rises in staff food prices from 5 October, following a review of catering.

Raghbir Pattar, BA's general manager of UK customer partnerships, said: "There is a need to remove costs from our business and we will need to implement permanent changes as a result.

"BA will continue to subsidise food and beverages provision for colleagues, but to a lesser degree."

The move is part of a huge cost-cutting drive by BA, which includes thousands of job losses.

Talks between the company and unions on pay, jobs and working arrangements have so far failed to reach agreement.