British Airways has cut senior management pay by 10 per cent in a drastic
measure to shore up losses sustained following the terrorist attacks in New
York.
The move, which will affect about 600 staff, is expected to save the airline
£2m between now and the pay review at the end of the financial year.
The leadership team, including chief executive Rod Eddington and 12
executive directors, have taken a 15 per cent pay cut.
The cuts come as BA announced plans to slash services worldwide as a result
of the fall in passengers since 11 September. Last week BA announced 7,000 job
losses.
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Eddington said, "Taking a pay cut is the right thing for the most
senior people in the business to do at this time. It is part of their
contribution as leaders in helping BA through this most difficult of
situations."
Alistair Hatchett, editor of Incomes Data Services Reports, said. "BA
is in the extremely unusual circumstances of facing a huge black hole of
business loss and trying to deal with that."
