British Airways to Cut 1,700 Jobs, Freeze Pay

British Airways announced that it will cut 1,700 jobs and will freeze pay in an effort to cope with losses caused by the economic downturn. The airline said that it expects to see a significant loss for the second consecutive year –a first for the company.

BA said it will accomplish the job cuts with 1,000 voluntary redundancies and 3,000 people switching from full-time to part-time working. It will freeze the basic pay of cabin crew for two years. The cost-cutting efforts will go into effect at the end of November.

Unions promptly protesting the cuts, saying the move could bring a strike closer. BA reported a 7.9 percent decrease in premium traffic in September, while Virgin Atlantic is seeing an upturn in its premium business. British Airways recently launched an all business-class flight between New York and London.