BA closes travel shops business, 400 lose jobs |
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Published
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Thu, 16 Mar 2006 12:05
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LONDON: British Airways Plc. is restructuring its direct sales operations. It is closing down its travel shops business and its call centre in Belfast attending to customers. These initiatives will render some 400 employees redundant, the airlines said Wednesday.
BA said the travel shops business does not hold as an increasing number of customers are now booking their tickets or organising their travel plans through the internet. More than eight out of 10 direct bookings in the U.K. are done through the company's website.
The business comprises 17 high street shops and the call centre. The travel shops, its corporate travel agency Worldlink at Heathrow and its back office support areas employ some 300 staff, while the call centre has 100. It is estimated to be making losses of around 3 million pounds a year. A spokesperson said everyone affected will have the chance to apply for other jobs within the airline.
The restructuring will yield 450 million pounds in cost savings over the next two years and this will be a tremendous help in the company's efforts to tackle the increasing fuel prices.
This is the second time that the company has come out with employee reduction proposal after the new chief executive Willie Walsh joined the airline last year. The airline's unions expect more such job cuts as it is planning to move to the new terminal at Heathrow in 2008.
The airline had closed its call centres in Glasgow and London in 2004. It will continue to maintain the call centres in Manchester and Newcastle, which will have some 700 staff and will handle telephone calls originating in the UK.
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