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BA expects to make compulsory job cuts.

AIRLINE INDUSTRY INFORMATION-(C)1997-2000 M2 COMMUNICATIONS LTD

British Airways (BA) is expected to make its first compulsory redundancies in order to restore profitability by downsizing and cutting costs, the airline's new chief executive Rod Eddington has said.

In an interview

with the Sunday Observer newspaper Eddington was quoted as saying: "There is no magic formula for dealing with people in areas where you are reducing jobs." Job losses were reported to be anywhere between 2,000 and 10,000 and are part of a revival strategy to trim capacity by 12.5% and reduce costs by GBP1bn, according to Reuters.

In the newspaper interview Eddington also said he agreed with former BA chief Bob Ayling's strategy to drop unprofitable routes and concentrate on improving services for the more lucrative routes.

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