August 30, 2007

BAA job cuts may on the cards

The management at BAA has confirmed that job cuts are in the pipeline, but they have denied reports that the figure could be as high as 2000.

BAA says that they are looking to streamline the business. The problem that the company has is quite a bit of debt because when the Spanish company Ferrivial took BAA over last year they borrowed around three quarters of the money needed, now with interest rates rises this has to be hurting them.

The cutbacks are going to be mainly in the support area and it is thought that frontline staff will not be affected, however this cannot be ruled out. Anything like this will put pressure on BAA who at the moment has a 60% share of all UK passenger flights, through Gatwick, Edinburgh, Stansted, Heathrow, Glasgow, Southampton and Aberdeen. There are thoughts that this may be too much in the hands of just one business.

Source [Yahoo Biz]