By Michael Harrison And Tom Barton
28 Sep, 2001
Page 2
BRITISH AIRWAYS dropped 190 flights from its weekly schedule yesterday and scrapped a number of routes altogether.
The airline also gave the first indication of the financial impact of the US atrocities, disclosing that transatlantic traffic fell by 60 per cent in the first week after 11 September, reducing BA's revenue by pounds 48m.
Last week, BA announced 7,000 job losses and grounded 20 aircraft, saying it was reducing capacity by 10 per cent.
It indicated yesterday that it may also reschedule or even cancel some of the 43 jet parts on order from Airbus Industrie, which makes the wings for its aircraft in Britain.
The BA cutbacks will affect both Heathrow and Gatwick and will mean a suspension of some short-haul as well as long-haul services. One route is being scrapped altogether - Heathrow to Belfast, which BA said had run up losses of pounds 38m over the past four years.
Services from Heathrow to New York and Boston are being reduced by one a day and there will be five fewer flights a week to Washington. The Gatwick to New York service is being suspended and there will be a reduction in services from Gatwick to San Diego and Houston.
Flights from Heathrow to seven Middle East destinations, including Dubai, Bahrain, Jeddah and Kuwait, will be reduced and long-haul services from Gatwick to destinations including Accra, Baltimore, Dhahran, Entebbe and Nassau are transferred to Heathrow.
Gatwick's short-haul European network is also being affected. BA is suspending eight European services from Gatwick, including Stockholm, Zurich and Rotterdam, as well as transferring the Lyons service to Heathrow. However, the airline's director of strategy, David Spurlock, maintained it was committed to Gatwick.
The decision to abandon the Belfast route caused most anger, especially as bmi British Midland has announced it is switching from Belfast International to Belfast City airport.
Albert Harrison, the managing director of Belfast International airport, said he was shocked. 'We have actually been talking to BA about the possibility of putting more capacity on the route with British Midland pulling out - there are a lot of people who want to go to Heathrow and there is no competition out there.'
There was a further setback for regional airlines yesterday when Manx Airlines was forced to suspend services from the Isle of Man to Liverpool because it had difficulties in obtaining insurance. Airlines registered in the Isle of Man are not covered by the scheme introduced by the Government this week to provide airlines with cover for third-party risks. The UK and Isle of Man governments have been unable to reach agreement that the concession should be extended.
Other regional carriers said they were coping with the difficulties caused by the terrorist attacks. Jim French, managing director of British European, said: 'The first week after 11 September was significantly below normal and the second week was still lower than we would expect. Sales have now increased to nearer their normal level, certainly in the business market, although there is still a slow take-up in the tourism trade.'
Jerry Froggett, commercial director of Scott Airways, the largest domestic operator at London City airport, said: 'We did notice a mild drop-off in the days following the disaster but in the first full week following the reopening of City airport we were back to roughly our normal levels.
'Our market is a niche one for business travellers and has responded very well to events.'
Airports operator issues profit warning, page 23
SOME OF THE ROUTES CUT
Route: Belfast International to Heathrow (British Airways)
Reason: Although BA has blamed the US attacks for the closure, the route has lost the airline pounds 38m in the past four years
Route: Cork and Shannon to London Gatwick (BA)
Reason: Loss making
Routes: Gatwick to New York, Stockholm, Zurich and Rotterdam (BA) - all suspended
Reason: Reduced demand
Route: Liverpool to the Isle of Man (Manx)
Reason: Unlike other domestic airlines, the Isle of Man-based subsidiary of BA does not qualify for help from the Government with its insurance bill
Routes: Newcastle to Belfast; Newcastle to London (Gill Airways)
Reason: The airline has been in trouble for some time and Gill's bankers pulled the plug after events in the US