LONDON – British Airways stated it was scrapping most short-haul operations at London’s no.2 airport Gatwick, blaming pilots for rejecting a plan to set up a new low-cost unit to better compete towards easyJet as flying returns after the pandemic.
BA, owned by parent IAG, shifted most of its flying to its main hub at Britain’s biggest airport Heathrow throughout COVID-19 as the pandemic decimated its revenues.
It had stated it could only rebuild its European network from Gatwick, where easyJet is the largest airline if it could make it profitable.
The airline could now sell its portfolio of short-haul slots at the airport. Hungarian low-cost airline Wizz Air, for example, has long said its interest in building a bigger presence at Gatwick, south of London.
BA stated on Thursday it was disappointed that pilots union BALPA had rejected its plan for the subsidiary, which would have been British Airways branded.
“After a few years of losing cash on European flights from the airport, we have been clear that coming out of the pandemic, we needed a plan to make Gatwick profitable and competitive,” BA stated.
BALPA stated despite its best efforts, it was unable to agree on revised terms that were acceptable to its members.
“BALPA remains open to future negotiations with British Airways to address our members’ concerns with the proposal for LGW short-haul or about another part of the business,” Acting General Secretary Martin Chalk stated.
Shares in IAG were trading down 2% at 171 pence.
British Airways and rivals like Air France and Lufthansa face a slower recovery from the pandemic than low-cost operators as a result of demand for the long haul remain far behind short-haul.
BA stated its operations at Gatwick would be limited to a small number of domestic services connecting to long-haul flights.
“We will pursue various uses for the London Gatwick short-haul slots,” it stated.
