=20 ---------------------------------------------------------------------- This article was sent to you by someone who found it on SF Gate. The original article can be found on SFGate.com here: http://www.sfgate.com/cgi-bin/article.cgi?file=3D/news/archive/2002/02/13/f= inancial0403EST0016.DTL ---------------------------------------------------------------------- Wednesday, February 13, 2002 (AP) British Airways axes 5,800 jobs, plans 'significant restructuring' (02-13) 01:03 PST LONDON (AP) -- British Airways on Wednesday announced it was cutting 5,800 jobs -- almo= st 12 percent of its work force -- and planning a "significant restructuring" to cut costs and tackle debts. The fresh job losses were on top of 7,200 previously announced and would help the company save $931 million annually, BA said in a statement. Chief executive Rod Eddington said BA had to become a "simpler, leaner, more focused airline." BA said it wanted to achieve the job reductions over the next two years by voluntary means and would work with unions to achieve its target. Wednesday's cut brings the total number of job losses at BA to 13,000, or 23 percent, since August of last year, when its work force totaled 56,700. Bill Morris, general secretary of the Transport and General Workers Unio= n, said: "We expected mild surgery but what we have got is butchery." The airline, which is Britain's unofficial carrier, is currently losing $2.9 million a day. The airline also said it would sell two Boeing 777 aircraft in the spring and have 49 fewer aircraft by summer 2003 compared with summer 2001. BA would not become a no-frills airline, but would restructure its European business to compete with them, Eddington said. "We will compete profitably and intelligently alongside them by adopting what they do well -- online bookings, high aircraft utilization and pricing simplicity," he said. Competition on short-haul European routes from no-frills airlines such as Ryanair and easyJet has eroded BA's market share and profits. BA started its own low-cost airline -- Go -- in response, but sold it last June in a management buyout. In its long-haul business, BA has failed repeatedly to forge a close alliance with another airline that could help it boost revenues and cut costs. Last month, BA and American Airlines turned down a U.S. Transportation Department ruling that would have authorized an alliance if they gave up 224 takeoff and landing slots for travel between U.S. cities and London's Heathrow Airport. It was the second time that BA and American called off a proposed alliance because of the landing slots. =20 ---------------------------------------------------------------------- Copyright 2002 AP