British Airways Plc cabin crew resumed their strike following the failure of talks over pay and staffing levels, grounding flights for as many as 22,000 people during one of the UK’s busiest weekends for air travel.

Europe’s third-biggest carrier aims to operate at least 70 percent of long-haul services from its main base at London’s Heathrow airport, compared with 60 percent during last week’s walkout, plus 55 percent of European routes, up from 50 percent.
British Airways is increasing services during the five-day stoppage after what it says is an increase in the number of flight attendants reporting for duty. The Unite union says the strike is “solid” and that members might be balloted on action beyond this week’s walkout and another scheduled for June 5.
“It’s an uncomfortable and unsatisfactory situation,” said Jonathan Wober, an analyst at Societe Generale SA in London with a “hold” recommendation on the stock. “My guess is that having come this far BA will stick to their guns.”
Talks between Chief Executive Officer Willie Walsh and the Unite leadership ended without an agreement, the Advisory, Conciliation and Arbitration Service said on May 28. Britain’s state mediator is speaking to both sides to arrange further negotiations to resolve the dispute, spokeswoman Clare Carter said in an interview yesterday.
“While we are pressing for more talks to be held as urgently as possible, there are none yet scheduled,” Pauline Doyle, a spokeswoman for Unite, said in an e-mailed statement. No negotiations took place yesterday, Unite said.
The carrier is aiming to save as much as 160 million pounds ($231 million) a year within 10 years by hiring any new cabin crew on less generous wage deals, Chief Financial Officer Keith Williams told investors on May 21.
British Airways fell 1.4 percent to 201.2 pence in London on May 28, valuing the company at 2.3 billion pounds ($3.3 billion). The stock has lost 4.5 percent since Feb. 22, when Unite said members had voted to strike, versus an 11 percent drop in the eight-member Bloomberg EMEA Airlines Index.
The London-based carrier may add more flights to its already expanded schedule as more employees return to work, spokesman Tony Cane said on May 28. This weekend is one of the UK’s busiest for air travel, with millions of Britons taking a three-day break because of tomorrow’s national holiday.
The two sides have been discussing changes to staffing levels and future pay grades for more than a year. The current dispute flared up in November, when Walsh cut crew numbers on long-haul flights without the union’s approval.
Last week’s five-day stoppage forced British Airways to cancel flights for more than 25,000 people a day, according to the company. Of 333 services originally scheduled to operate on Friday, the carrier grounded 121, including 20 long-haul services to destinations, Unite said.
The carrier said it operated a “large majority” of flights yesterday, without giving numbers.
Services from London Gatwick, the UK’s second-busiest airport and a hub for holiday flights, are operating as normal, with cabin crew having “ignored” the strike call, British Airways says. London City airport is also operating normally.
Unite says it will halt the strike if Walsh restores travel perks to staff who walked out during two initial stoppages spanning seven days in March and agrees to discuss the suspension of workers during the action.
(Source: Bloomberg)