BA in threat to the Tories
LOSS-MAKING flag carrier British Airways (BA) yesterday said it would be forced to significantly scale back flights at Heathrow if the government scraps plans to build a third runway at the hub airport.
The Conservatives have said they are committed to calling off Labour’s plans for an extra runway at the airport if they win the next election. But business bodies say it is imperative expansion happens to keep the UK’s industry in good shape.
“We have already seen that an increase in capacity did not increase the number of destinations served by BA, the lack of a third runway would not force BA to axe short-haul destinations,” a spokesman for the Tories said yesterday.
“We have given our commitment and it is cast iron. If we win the next general election, there will be no third runway at Heathrow,” he added.
But the airline’s chief executive Willie Walsh stressed that an expansion was needed for the company to come out of the recession.
He said he wanted to focus on getting added growth in long-haul services, as they are “more profitable”.
Walsh also spoke out on the airline’s proposed tie-up with Spanish carrier Iberia yesterday, saying a merger could happen by the end of the year.
BA has been in talks with Iberia since July last year, but a final decision has been slowed by the downturn in the industry, and a change of management at Iberia.
The British airline’s massive pension deficit, the recalculated value of which will be released this month, has also been a stumbling block for the two.