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British Airways considers creating a new short-haul subsidiary Gatwick Airport

British Airways considers creating a new short-haul subsidiary
Gatwick Airport

British Airways has begun to explore options for short-haul flights at London’s Gatwick airport. This is in an effort to reduce costs given stiff competition in Britain and the tight regulations in its home country.

The company, owned by London-listed IAG, did not specify what the proposals were, but the Wall Street Journal had earlier reported that the airline was considering folding the operations into a new unit.

We are currently working with unions to develop proposals for short-haul operations at Gatwick. The airline sent an email statement to its customers on Thursday, stating that it was not ready to make any further comments while the process is ongoing.

British Airways’ pandemic recovery, which is usually IAG’s largest airline, fell behind Iberia’s Spanish unit and Vueling, as Britain had to endure longer and more severe restrictions than Europe.

IAG itself has adopted a more cautious tone on recovery than its competitors. The company predicted that summer capacity would increase to 45% from pre-pandemic levels in July. This compares to the outlooks for Ryanair, EasyJet, and Air France-KLM of 60% to 70%.

Reporting by Pushkala Aripaka and Priyanshi Mandanath in Bengaluru. Editing by Devika Siamnath.

The article came from Reuters. It was licensed legally through Industry Dive’s publisher network. Please direct all licensing questions to legal@industrydive.com.

Publiated at Thu 26 August 2021, 19:57.39 (+0000).

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