BA set for Christmas strike

British Airways cabin crew called a strike today, hours after the airline revealed a £3

British Airways cabin crew called a strike today, hours after the airline revealed a £3.7 billion hole in its pension fund that will require deft handling if a proposed merger with Iberia is to stay on track.

"The strike will take place over 12 days from December 22nd but we have taken the decision, which will disrupt the travel plans of thousands of people, with a heavy heart," a Unite spokesman told reporters.

"Of the staff balloted 92.5 per cent voted in favour of industrial action."

BA shares, which have fallen 9 per cent in the past three months, closed down 0.1 per cent at 201 pence today, valuing the business at around £2.3 billion.

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The Unite union balloted some 13,000 cabin crew members on industrial action as part of a dispute over job losses and changes to working practices.

BA wants three quarters of its crew to accept a pay rise of between 2 and 7 per cent thisyear, which will be frozen next year, and for 3,000 staff to switch to part-time working, along with a reduction in onboard crewing levels from 15 to 14 on long-haul flights from London Heathrow.

"A strike is senseless and we urge Unite to draw back. We will not be reversing our changes to onboard crew numbers. Unite must understand that there can be no return to the old, inefficient ways if we want to ensure long-term survival," said BA's chief executive Willie Walsh.

The strike could cost BA around £50 million in lost revenues and refunds, analysts say.

BA would have expected to fly around 1 million passengers over the strike dates, with the decision likely to boost ticket sales on rival airlines as passengers look for alternatives.

"Unite's decision will damage BA in the short-term and could damage the future viability of the airline," Mr Walsh said.

Walsh has said changes at the airline, which analysts believe is losing 1.5 million pounds a day, are essential to help repair its precarious finances.

The company last month reported a first-half pretax loss of £292 million, and is expected to report a loss of £601.2 million for the full year.

Reuters