BRITISH Airways is reconsidering its distribution methods in a bid to save an extra £500m.
The airline wants to save £265m in seven key areas during the 2000/01 financial year, with cost of sale a main target, and BA managers have been told to cut an additional £234m from costs of running their divisions.
ABA spokeswoman confirmed distribution was under pressure along with staff numbers, Gatwick operations, domestic operations, products, subsidiaries and aircraft utilisation.
She refused to confirm reports that 6,000 jobs will go from the airline’s 64,000-strong global workforce over the next two years.
She said the airline is looking at alternative distribution methods, including developing more on-line business to reduce costs, but claimed agents would be a part of this. The airline is already considering scrapping or capping commissions from April 1 (Travel Weekly November 15). The airline faces an expected £200m loss this financial year.